UNIT 1

What Is Organizational Behavior (OB)

Organizational behavior is the academic study of how people interact within groups. The
principles of the study of organizational behavior are applied primarily in attempts to
make businesses operate more effectively.

Understanding Organizational Behavior (OB)

The study of organizational behavior includes areas of research dedicated to improving
job performance, increasing job satisfaction, promoting innovation, and
encouraging leadership. Each has its own recommended actions, such as reorganizing
groups, modifying compensation structures, or changing methods of performance
evaluation.

Special Considerations
The leaders of the Hawthorne study had a couple of radical notions. They thought they
could use the techniques of scientific observation to increase an employee's amount
and quality of work, and they did not look at workers as interchangeable resources.
Workers, they thought, were unique in terms of their psychology and potential fit within
a company.

Examples of Organizational Behavior

Findings from organizational behavior research are used by executives and human
relations professionals to better understand a business’s culture, how that culture helps
or hinders productivity and employee retention, and how to evaluate candidates' skills
and personality during the hiring process.

Organizational behavior theories inform the real-world evaluation and management of

groups of people. There are several components:

• Personality plays a large role in the way a person interacts with groups and
produces work. Understanding a candidate's personality, either through tests or
through conversation, helps determine whether they are a good fit for an
organization.
• Leadership—what it looks like and where it comes from—is a rich topic of debate
and study within the field of organizational behavior. Leadership can be broad,
focused, centralized or de-centralized, decision-oriented, intrinsic in a person’s
personality, or simply a result of a position of authority.
• Power, authority, and politics all operate inter-dependently in a workplace.
Understanding the appropriate ways these elements are exhibited and used, as
agreed upon by workplace rules and ethical guidelines, are key components to
running a cohesive business.

Why Is Organizational Behavior Important?

Organizational behavior describes how people interact with one another inside of an
organization, such as a business. These interactions subsequently influence how the
organization itself behaves and how well it performs. For businesses, organizational
behavior is used to streamline efficiency, improve productivity, and spark innovation to
give firms a competitive edge.

What Are the 4 Elements of Organizational Behavior?

The four elements of organizational behavior are people, structure, technology, and the
external environment

, Interdisciplinary nature of OB
Because it borrows concepts, theories, models, and methods from both physical and social
sciences, organizational behavior is an interdisciplinary approach. The most important aspects of
organizational behavior are founded on behavioral sciences. Political science, psychology, sociology,
anthropology, science, economics, and technology are all researched in connection to organizational
behavior. In reality, OB is referred to as “applied behavioral science”.

• Political Science has recently piqued the interest of organizational behaviorists. The
concept of political systems is what most people think of when they think of political
science. Political scientists, on the other hand, are curious in how and why people
gain power, political behavior, decision-making, conflict, interest group behavior,
and coalition building. These are also hot topics in the field of organizational
behavior.
People aspire for authority and leadership recognition in organizations. Political science assists in
the successful and efficient administration of personnel. Political opinions and policy decisions are
extensively examined in order to mold and alter people's behavior, as they have a significant impact
on the organization. People's work lives are influenced by the country's law and order.

• Psychology- Organizational behavior is the study of human behavior that is

primarily concerned with people's psychology. Industrial or organizational
psychology, in particular, is the most significant contributor to the area of
organizational behavior. Psychologists study behavior, while industrial or
organizational psychologists specialize in how individuals behave in work
environments.
• Sociology has a significant influence on the field of organizational behavior.
Sociology employs scientific approaches to gather information about how people
behave in groups. Sociologists investigate social structures including families,
occupational classes, mobs, and organizations. It focuses on social groupings, social
behavior, society, conventions, and prestige, among other things.
It investigates how individuals behave in society in connection to their fellow humans. Sociology
contributes to organizational behavior through studying interpersonal dynamics such as leadership,
group dynamics, and communication, among other things.
 • Anthropology is the study of people's relationships with their surroundings,
particularly their cultural environments. Culture has a significant impact on the
structure of organizations as well as the behavior of individuals inside them.
• Science is the knowledge that has been organized into a system. Scientific
approaches aim to provide objective knowledge that is verifiable and independent
of a person's own preferences or ideas. Organizational behavior is built on the
scientific approach. The systematized study of facts, behavior, correlations, and
predictions underpins organizational behavior.
• Economists investigate how products and services are produced, distributed, and
consumed. Students of organizational behavior are interested in topics including
labor price movements, efficiency, human capital forecasting and planning, and
cost-benefit analysis, much as economists are.

• Technology- Employee behavior is influenced by the amount of technological

advancement. Computerization has ushered in the modern era. It has been
incorporated into the organizational behavior model. Because humans are impacted
by technological advancement, studying it is becoming increasingly important for
understanding organizational behavior. Technological advancements shape human
behavior, relationships, and surroundings.
As a result, it may be inferred that organizational behavior is multidisciplinary. It draws on a number
of domains in order to explain behavior rather than prescribe how behavior might be modified in a
consistent and predictable manner

Management and OB
Organizational behavior management (OBM) applies behavioral principles
to individuals and groups in business, industry, government and human service
settings, according to Psychological Services, a publication from the American
Psychological Association. OBM can be seen as the intersection between behavioral
science and improvement in organizational environments.

OBM is rooted in the field of applied behavior analysis (ABA), which develops
techniques to produce socially significant behavior in a wide range of areas and
behavioral problems. ABA is one of three disciplines of behavior analysis, or the
science of behavior, which includes:

• Applied wing of the discipline of behavior analysis (ABA)

• Experimental analysis of behavior, focusing on basic principles of behavior
• Branch of behavior analysis that focuses on the conceptual and philosophical
underpinnings of the science of behavior (behaviorism)

Like ABA, OBM is focused almost exclusively on practical strategies that can be used
to change behavior. For instance, instead of focusing on personality traits that are
most predictive of high performers, ABA and OBM are more concerned about
investigating methods to improve performance.

The growth of OBM has resulted in three primary specialty areas.

• Performance management applies behavioral principles to manage the

performance of employees. This used to be synonymous with the term “OBM,”
but it is now its own field, contrasted by specialty areas geared toward other
levels of the organization.
• Systems analysis refers to the analysis and modification of organizational
processes to benefit the organization. This field focuses on how individuals or
groups of workers can complete interdependent tasks that lead to created
products or services important to the entire organization.
• Behavior-based safety is a fast-growing specialty that analyzes and modifies
work environments to reduce injuries and promote safe behavior. Instead of
other disciplines’ approach to safety from the standpoint of mechanical or
structural engineering, behavior-based safety concentrates on changing
employees’ behavior to reduce injuries and make safe performance more
common.

How Organizational Behavior

Management Works
Organizational behavior management (OBM) applications isolate, analyze and modify
environment events that most directly affect performance. Specific interventions allow
practitioners to effectively modify behavior in organizational environments.

Sample Interventions
There are two categories of OBM interventions: antecedent-based interventions and
consequence-based interventions.

Antecedent-based interventions include task clarification, equipment modification,

goal setting, prompting and training.

• Task clarification involves clearly defining employees’ tasks.

• Equipment modification involves altering equipment used for tasks.
• Goal setting involves setting performance goals and then access to rewards.
• Prompting involves prompts to perform or continue performing an activity.
• Training involves identifying and modifying inadequate employee knowledge,
skills or capacity.

Consequence-based interventions include feedback, praise and monetary

and nonmonetary incentives.
 • Feedback involves delivering information about past performance to the
employee, which can vary according to format (verbal, written, graphic) and
delivery agent (manager-supervisor, consultant-researcher or fellow employee).
It is by far the most common intervention used in OBM.
• Monetary and nonmonetary incentives involve money, benefits or tangible items
contingent on performance; in practice and research, they are often combined.

Steps in an OBM Consultation

Here are some common steps that take place during an OBM consultation,
regardless of problem, setting and intervention, according to Psychological
Services.

1. Determine key results. Typically, the practitioner or researcher

works with managers and executives to identify desired results.
2. Find the pinpoints. The practitioner works with managers and executives to
determine important behaviors and immediate results required to accomplish
the key results. These behaviors and results are often referred to as “pinpoints”
or “targets.”
3. Develop a measurement system. The practitioner helps the target audience
develop an accurate and reliable way to measure the pinpointed behavior and
results. This method often involves tracking costs associated with the pinpoints.
Measurements will provide information about the current levels of the behavior
and results, as well as providing a baseline comparison that can be used to
evaluate the effects of solutions.
4. Diagnose the problem. The practitioner teaches managers to ask questions
and conduct observations of the work environment and completed tasks to help
determine the cause of performance deficiencies. Asking questions and
collecting data typically involves four broad areas of potential causes:
antecedents, knowledge and skills, equipment and processes (including a
systems analysis), and consequences.
5. Develop and implement a solution. After the results of the assessment, the
practitioner then works with managers to develop and implement solutions that
address identified deficiencies.
6. Evaluate the effects. Typically, results are measured before, during and after
solution implementation. There are at least three types of results that are of
interest to the OBM practitioner: behavior change results, treatment
acceptability and cost-benefit results. Behavior change results help verify
whether the solution changed the intended behavior and produced the intended
outcomes. Treatment acceptability is important in OBM because the solution
will not be maintained if employees and managers deem it unpalatable. Cost-
benefit results help the practitioner calculate return-on-investment figures.

Applying Organizational Behavior

Management to Health Care
A paper in Advances in Patient Safety: New Directions and Alternative
Approaches examined applications for OBM in health care.

“The relevance of OBM to improving health care is obvious,” according to the authors
of the paper. “While poorly designed systems contribute to most medical errors, OBM
provides a practical approach for addressing a critical component of every imperfect
health care system —behavior. Behavior is influenced by the system in which it
occurs, yet it can be treated as a unique contributor to many medical errors, and
certain changes in behavior can prevent medical error.”

One study found that providing feedback to caregivers on the frequency of hand
washing led to an increase in hand washing following patient contacts, from 63
percent at baseline to 92 percent after intervention. Other OBM intervention studies
found that behavior-based interventions demonstrated significant increases in hand
washing among caregivers. Nonbehavioral attempts were deemed likely to fail at
altering actual behavior.

Other OBM interventions were successful. A quota system for emergency patients’
admission to internal medicine departments reduced length of stay without altering
outcomes. Education, discussion and feedback on proper laboratory tests reduced
the overall number of tests ordered without reducing patient outcomes. “Standardizing
the handoff communication procedure using antecedent reminders and feedback
improved patient satisfaction, medication administration record-keeping, completion
of cardiac enzyme regimens, and patient transportation without a cardiac monitor,”
the paper states. As a result, there were 67.5 additional hours of nursing time
available each month.

ROBBIN’S MODEL OF OB TRENDS

Being a good manager requires strong interpersonal skills, as communication is
crucial, as one must manage different types of resources: people, money, and time in
order to achieve specific goals.

ROLE DESCRIPTION

Interpersonal Roles which involve ceremonial/symbolic duties

Symbolic head, needs to perform duties of social/legal

Figurehead
nature
Leader Motivates and directs employees
Liaison Maintains a network of outside contacts
Informational Collection and dissemination of information
 Receives information, serves as nerve centre of internal
Monitor
and external information
Transmits information from outsiders to the organisation’s
Disseminator
members
Transmits information about the organisation to outside
Spokesperson
parties

Decisional Refers to making choices

Analyses the organisation and its environment for

Entrepreneur
opportunities and initiates projects to bring about change
Disturbance
Undertakes corrective actions in case of problems
handler

A Manager’s Four Main Functions

Planning function refers to setting goals, creating strategies, and preparation of plans that make
different activities work coherently and effectively.

Organising function concerns tasks identification and division, assignment of tasks to individuals,
setting reporting and decision- making systems.

Leading function relates to motivating workers and directing others’ actions, choosing communication
canals and solving conflicts.

Controlling function refers to controlling others’ work outcomes and checking whether everything is
being done as planned; and when necessary undertaking corrective actions.

Management roles

They can be divided into 3 main categories: interpersonal roles, informational roles and decisional
roles. The concept was developed by Henry Mintzberg and is called Mintzberg’s Managerial
Roles (below).

Management skills

There are 3 types of management skills developed by Robert Katz: Technical skills (application of
specialised knowledge, know-how, e.g. think of mechanical engineer, vet, pharmacist), human
skills (easiness to work in a team, understand others’ behaviors and motives, stimulate others’ actions,
ability to communicate and get along with people), conceptual skills (mental capability to analyse
problems, manage complexity of an issue, decide on solutions and evaluation of possibilities).

Effective or successful managers?

It was investigated in Luthans’ Study of Managerial Activities that effective managers spend most of
their time on communication activities (44%) and on human resource management activities (26%). In
contrast, successful managers spend almost half of their working time on networking activities (48%)
and communication activities (28%). It is understandable that average managers work most of the time
on traditional management (32%) and on communication activities (29%).

Defining Organisation Behavior (OB)

“A field of study that investigates the impact that individuals, groups, and structures have on behavior
within organisations, for the purpose of applying such knowledge toward improving an organization’s
effectiveness” (Robbins, Judge “Organisational Behavior”).

It is important to remember that OB deals with 3 levels of behaviors: individuals, groups and structures.
Knowledge about those 3 types of behaviors is necessary to apply actions which make the whole
organization function successfully.

How to study OB? EBM

In OB systematic study and evidence-based management is combined with intuition. Behavior can be
predicted. If it is examined on the continuous basis one is able to forecast how people can act in
particular circumstances (that is why systematic study of people’s actions are necessary). Systematic
study involves examining causes and effects, just like in science – this is done to make general law-like
conclusions based on gathered data. What is closely related to systematic study is evidence-based
management (EBM). EBM implies making managerial decision after consideration of scientific facts,
data, conclusions, laws. Managers who apply EBM act like scientists – when they face a problem, they
search for scientific information which can give them possible problem solutions, then they apply the
most relevant knowledge in order to solve an issue. Of course, intuition is inseparable from decision-
making process. Nevertheless, importance of systematic study and thus EBM cannot be questioned.

What major behavioral disciplines contribute to OB?

- Psychology (studies behavior of individual)

- Social psychology (studies behavior of individual within a group)

- Sociology (studies groups, societies, organisational systems, how individual acts in relation to a
society)

- Anthropology (studies societies, groups, cultures, organisational systems)

Absolutes in OB

OB concepts, however law-like they can be, must take into account situational factors. Under different
conditions different individuals act differently. That is why there only a few absolutes in OB. Because
people are different and complex, one needs to consider OB in a contingency framework.

Challenges and opportunities for OB

I) Globalisation implications

Ia) More foreign assignments

Ib) Multicultural work environment

Ic) Coping with anticapitalism backlash – values and norms, even the economical ones, are not the same
everywhere

Id) Placing more and more jobs, productions in low-cost labour countries (e.g. China, Taiwan) –
managers need to find a balance between organization’s interest in low cost and (corporate) social
responsibility.

Ie) Managing people during War on Terror – e.g. people resign from some businesses, cancel flights
because they are afraid of terrorism.

II) Managing work diversity

IIa) Embracing diversity – employees from diverse countries do not give up their cultural values and
norms to adapt to the rest of society. Managers need to make them accommodate so they don’t feel
isolated or ignored

IIb) Changing U.S. demographics

IIc) Implications – Effective managers need to recognize cultural differences and can’t apply the same
standards to all employees.

III) Improving quality and productivity

IV) Improving customer servic

V) Improving people skills

VI) Stimulating innovation and change

VII) Coping with “temporariness”

VIII) Working in networked organizations

IX) Helping employees balance work-life conflicts

X) Creating a positive work surrounding – in this point the notion of positive organizational
scholarship needs to be mentioned – it is research area that focuses on fostering strengths rather than
eliminating weaknesses. It is all about what is good, the best in employees and the organization itself.

XI) Improving ethical behavior

OB Models

> Dependent variables: productivity, absenteeism, turnover, job satisfaction, deviant workplace

behavior (antisocial behavior or workplace incivility), organizational citizenship behavior

> Independent variables:

• individual-level variables – motivation, perception, ability, values and attitudes, personality and
emotions, individual decision-making and learning, biographical characteristics
 • group-level variables – conflict, communication, group decision making, leadership and trust,
group structure, conflict, power and politics, work teams
• organisation system-level variables – organizational culture, organization structure and design,
human resource policies and practices.

CHANGES IN OB-GLOBALIZATION
The importance of organizational behaviour (OB) has accentuated subsequent to
globalization and the consequent changes in business practices. Since the term
globalization has many ramifications, we need to first understand its different
dimensions and then try to attempt a compact definition.

In the economic context, globalization is interpreted as a worldwide phenomenon or

process. Some economic and monetary policies together facilitate the process of
globalization. Some of the economic dimensions of globalization are expansion of
international trade, cross-border labour migration, cross- border flow of investments,
etc.

From the OB point of view, the biggest concern for globalization is the impact and
influence of multinational and transnational companies. Participation of these
companies in trade, investment, and production, expanded the international
communication and imported various cross-cultural issues. Nowadays, even to
operate locally, Indian organizations need to track these issues and regularly renew
their business practices, changing the mind-sets of their people.

Globalization has many dimensions. The most general is the economic globalization.
OB studies are now increasingly becoming complex due to the effect of globalization.
Some of the important areas of concern are changing technology with a sharp increase
in cross-border technology transfers, the mobility of organizations and people in the
global world, the competition for markets and customers on a global scale, etc.

Globalization can be taken to mean the increasing trend to interact beyond physical
boundaries. The causes of globalization include deregulation and privatization of
public sectors in certain countries, technological convergence, and increased
competition. Furthermore, globalization has taken many forms such as foreign
investment and international partnerships.

From the perspective of business organizations, there are three different types of
globalizations—

1. multinationals,

2. global, and

3. international companies.

The cascading effect of globalization even transcends to the tasks or the operational
environments of business organizations.

Changes in the operational environment not only require focus on new products or
service developments, but also on the skills and competency sets, attitudes, values,
and cultures of the people. Such changes are primarily attributable to the shift in the
expectations of customers and the behaviour of competitors.

The consequential effect of globalization on organizations is an increase in alliances

and partnerships rather than on authority and control. This is characterized by the
breakdown of tall hierarchies, increase in use of teams, reorganization of functional
departments into cross-functional groups, reduction in centralized control, and
allowing more local autonomy.

Another key aspect, from the perspective of a business organization, is the harvesting
of the knowledge of the people. This is facilitated by knowledge management
practices, using various tools, techniques, and values. Through knowledge
management, organizations can acquire, develop measure, distribute, and provide a
return on their intellectual assets.
Globalization has also changed the nature of managerial work, requiring managers, in
the globalized era, to increase their judgmental power, use of persuasion and
influence, shaping of the behaviour of the people, etc.

CHANGES IN OB-CULTURE
Cultural change in a professional context refers to altering a company's values,
goals, processes, roles and practices to change the work environment of the
organization. Here are some benefits that can result from changing a company's
organizational culture:

• Engagement: Employees that are more engaged with their jobs are
generally more satisfied and perform at higher levels because they
understand the impact of their work on an organization.
• Satisfaction and morale: Employee satisfaction can decrease turnover
and help companies retain talent.
• Creativity: An organizational environment that promotes innovation can
capitalize on its employees creativity.

the elements of positive organizational culture

There are a few areas where an organization can reflect a positive organizational
culture:

Values

Companies can demonstrate their commitment to positive organizational

culture through their values. Here are some values that can promote a good
company culture:

• Transparency: Organizations that are transparent with the entire

company about the company's performance and initiatives can promote a
more positive culture.
• Accountability: An organizational culture that values accountability can
help create a more respectful work environment.
• Respect: Employees in a workplace that values respect can promote a
welcoming and enjoyable environment.
• Trust: An environment that promotes trust among employees at every
level can help increase job satisfaction for a more positive culture.
Related: 12 Examples of Business Ethics and Why They're Important

Goals

Companies whose goals align with their values can achieve a positive
organizational culture. Here are some goals that can promote a good culture:

• Increased diversity: This goal, paired with tangible actions toward

achieving it, can create a more inclusive, welcoming corporate
environment.
• Better performance: Setting a goal for increased performance can
improve employee engagement while increasing a company's bottom line.
• Lower turnover: A company that aspires to lower turnover can achieve
higher employee satisfaction and save money on the costs of hiring new
employees.
• More transparency: Organizations with a goal of greater transparency
can show employees they're committed to improving company culture.

Practices and processes

Lastly, companies with positive organizational cultures have practices and

workflows that reflect that culture. Here are some examples:

• Promotion of wellness: Promoting wellness can increase satisfaction

and promote a healthier environment. Processes that promote wellness
can include flexible scheduling and employee engagement programs like
charity events.
• Employee recognition: Regular employee reviews and recognition for
outstanding work can help a company recognize employees' value.
• Clear expectations: Companies can use 30-day, 60-day and 90-day
reviews for new employees or reviews to clarify their expectations for
employees, which can help them work more productively.
• Employee development: Offering development programs and tuition
reimbursement can help companies lower turnover and improve morale.
• Accountability policies: Policies that promote accountability can
promote better performance.
• Blind hiring: Blind hiring processes can help increase an organization's
diversity.

How to change the culture in your organization

Here are steps you can take to improve the culture in your organization:

1. Identify problems

The first step to changing organizational culture is to identify what you want to
change about the culture. Finding specific areas that your company can improve
can help you develop actionable solutions.

For example, a common problem with organizational culture is a lack of

communication. If a sales company can identify specific scenarios which effective
communication would have solved, it can begin to create solutions.

2. Evaluate what's working

You can also identify what elements of the company's culture are working. You
may be able to set goals that further improve the positive elements that already
exist in the culture.

For example, the sales company may find that though its communication
structures need work, supervisors are competent and have a positive leadership
style. A company can further expand positive leadership to promote changes in
communication workflows.

3. Identify what's missing

Another thing you can do to begin to influence change in a company's culture is

to identify what's missing from the culture.

For example, if there's a sense of frustration among a sales company's team

over low performance, it might be helpful to introduce new accountability
measures that can help encourage a sense over ownership in employees' work.

4. Envision a new culture

Identifying what you would add, change or promote in a new organizational

culture can help you envision the characteristics of a better culture. You can list
the elements of an improved culture as a first step to finding ways to achieve
them.

In the example of the sales company with issues like employee frustration and a
lack of communication, you might instead imagine the characteristics of a
company that communicates information transparently and where employees
are accountable for their work.
6. Set goals for cultural change

It's important for culture improvement goals to be specific, measurable,

attainable, relevant and time-based in order to ensure their success. Here are
some examples of actionable goals for improved company culture and methods
to achieve these goals:

• Improve communication workflows by 20% this quarter through

increasing communication between employee levels. You can schedule
weekly or monthly company-wide meetings to communicate about new
initiatives and solicit employee feedback.
• Increase employee satisfaction feedback on surveys by 50% in the
next six months. A company can survey employees to understand their
dissatisfaction and work to address it. For example, if employees want
more work-life balance, a company could start offering flexible schedules
or remote work options.
• Increase diversity of employees by 30% in the next year. Companies
that want to increase diversity can post to job boards for diverse candidates
and offer benefits that attract qualified candidates that can diversify a
workplace.

Read more: SMART Goals: Definition and Examples

5. Find metrics to monitor

One way to ensure that your goals fit these characteristics is to identify metrics
you can use to measure the cultural changes. Here are some examples of metrics
that can help you gauge your company's culture:

• Employee referrals: The rate of employee referrals can help you

measure employee satisfaction.
• Turnover rate: You can track the rate of employee turnover to gauge the
effectiveness of efforts to change an organization's culture.
• Engagement in cultural initiatives: You can track the number of
employees who respond to satisfaction surveys or take advantage of
initiatives to promote a better culture, like flexible schedules, to learn their
effectiveness.

You can compare the results of these metrics over time to discover the effects of
initiatives on an organization's culture.
7. Evaluate culture as it changes

Lastly, you can commit to evaluating a company's culture periodically to ensure

that it continues on a positive trajectory. This can help you solve the cultural
issues that can arise as a company grows and evolves. It can also ensure long-
term improvements in organizational culture.

SHIFTING DEMOGRAPHICS OF THE

WORKPLACE
Changing workforce demographics may pose challenges for small businesses.
Some experts believe that businesses face increased rates of younger and older
workers, as workers in the middle age range decline. Managers may experience
increased training and compensation costs for younger and older workers,
respectively, which affects solvency and profitability. A growing international labor
force is another factor that may affect companies. Changing demographics have a
direct impact on business models and strategies.

Compensation Package
1. Employees generally remain with a company if the pay and benefits exceed, or
even match, what other competing employers offer. However, an aging labor
force that lives and works longer also requires more medical care, which
creates a larger financial burden on the health care system. Both employers
and employees share the cost of rising insurance premiums, but at a certain
point, the employer has to shift more of the cost to the worker. Unfortunately,
this might create strain on workers who can't meet personal financial
obligations, resulting in lower morale and productivity. In some cases, workers
may seek employment elsewhere. Small businesses can lose the time and
money invested in integrating that employee into the company. Also, small
businesses may have a harder time filling job openings if the compensation
package is lacking.

Experience
1. Small businesses commonly have limited staffing. This does not affect
operations at most companies because employees have enough professional
experience to keep the company running at optimum efficiency. However, as
older workers retire from the workforce, managers must seek out newer and
 sometimes inexperienced workers to join the staff to fill vacant spots. The
lacking experience may mean a business cannot operate old, legacy
equipment that is vital to operations at many small companies.

Training and Education Expenses

1. Older workers also take proprietary skills and certifications with them when
they retire. Young adults receive general career training from universities and
colleges. However, many companies must still develop in-house training
programs run by qualified instructors that prepare employees for a specific job
task. Small business managers who have limited budgets may not have the
staffing or financial resources to conduct these seminars. An untrained
workforce can slow down or halt business operations. Also, some tasks are
too hazardous or critical to allow employees to have on-the-job training. In
many cases, workers need a type of state certification before being allowed to
perform job duties. For example, a small electrical company may need to
ensure all contractors are state certified as an electrician.

Labor Shortage
1. Many small businesses might suffer a perpetual labor shortage that cannot be
solved by offering better compensation or training. Generational factors, such
as smaller family sizes or delaying a family altogether, means that the local
labor market might lack younger replacement workers for retiring workers. For
example, physician's offices and small medical groups are facing a shortage
of doctors, nurses and technicians to replace those who are retiring from the
profession. This can have an effect on the quality and delivery of health care
services and treatment.

Communication Barriers
1. Although small businesses are localized, many employers have access to a
diverse workforce. Many highly educated and skilled foreigners immigrate to
the United States every year on temporary work visas to pursue employment.
Many are bilingual, speaking both their native and the English language, but
that can still cause communication conflicts. Some people have thicker
English accents than others, making verbal communication difficult. There
also may be cultural differences in the way that foreigners interact with native
workers. For example, some may immigrate from countries where women
have fewer rights and that can create conflict with a female manager at a small
business. Managers are having to make a concerted effort to increase
workplace diversity, but one bad apple can derail the initiative. This may have
both operational and legal implications.
NATURE OF A JOB
The nature of an employee's work is best defined as the type of work that he does.
This can refer to the basic daily tasks carried out as part of a job and can refer to
other non-routine tasks that may be required. Added together, the characteristics of
these tasks comprise the nature of an employee's work. The nature of this work may
be summed up in the employee's title.

For example, a human resources manager is someone who manages a human

resources department and performs all of the tasks required of such a position.

Level of Performance
The level of an employee's work refers to the quality of her performance, relative to
others with jobs of a similar nature. The level of work is related to the nature of an
employee's work because it provides an indication of how well the employee is
performing the tasks required for the position. The level of an employee's work may
be graded objectively, or perceived in a more subjective manner by your managers.

Complexity of the Job

The complexity of the job performed by employees and the nature of the job are also
directly related. Organizations are all structured in different ways, but in nearly all
organizations, the more complex work is performed by those at the high end of the
food chain. These are the managers and executives responsible for running your
organization. The nature of these roles and their work is typically more complex than
the work performed by those in entry-level positions.

Performance of the Work

An employee's work can be evaluated in the same way, regardless of the nature of
the work performed. Evaluating an employee is done relative to his position within
the company. Although you may not necessarily grade an entry-level employee in
the same way that you would a manager, in terms of specific tasks, most companies
have some type of established rubric by which they grade employee performance.

Employees may be said to perform satisfactory work, superior work – or even sub-par work if the
work does not measure up to the expected standards of the company. This is a means of
measuring the level of the employee's work, as opposed to its nature.

TECHNOLOGY
How does technology impact your daily life? How long could you last without your cell
phone, your computer, your television? Just as technology influences your daily life,
it also influences the modern workplace. Watch the video below to better understand
just how much technology affects every aspect of an organization.

As you can see, technology has an impact on every aspect of the workplace. Let’s
further explore some major categories where technology plays a leading role.

Communication
Technology has made communication easier than ever before. Long gone are the
days where you send a letter and wait for a written response or have to use an
operator to connect a call. Emails, texts, interactive documents, and video
conferences all make communication easier and faster than ever before. Electronic
communication brings another level of complexity to an organization as inflection and
tone is much harder to detect in text versus a face-to-face conversation. Utilizing
concise and friendly electronic communication can be challenging but is extremely
important to maintaining a professional work environment.

Workplace Environments
Technology has shifted the way the workplace looks today. While many people still
go into the office for their workday, other employees have the option to work remotely.
Some companies even operate strictly online and do not require a brick and mortar
workplace. In addition, video conferences have replaced in-person meetings and
changed the dynamic of many professional, working relationships.

Organization and Efficiency

Technology allows companies to be more organized than ever before. Filing a
document can be done instantaneously and retrieved just as easily. The speed of the
internet and the availability of technology allows for a much more efficient workday.
Documents can now be signed electronically and sent wherever they need to go
quickly. Training and development can now be offered online and allows individuals
to complete training on their own time, eliminating the need to work around many
schedules to conduct a training event.

Accessibility
Technology enables people to be constantly in touch with their work. Email and
smartphones oftentimes prevent people from unplugging from their job. While this can
be avoided by setting aside technology when you are off work, some companies now
expect an immediate response to questions or concerns. While for some this may be
a welcomed advantage, for other it can potentially lead to burnout and frustration.
Accessibility of technology is a necessity for almost every organization. A power
outage or lack of internet access can completely shut down a company.

UNIT 2

PERCEPTION
Perception is an intellectual process of transforming sensory stimuli to meaningful
information. It is the process of interpreting something that we see or hear in our
mind and use it later to judge and give a verdict on a situation, person, group etc.
It can be divided into six types −
• Of sound − The ability to receive sound by identifying vibrations.
• Of speech − The competence of interpreting and understanding the
sounds of language heard.
• Touch − Identifying objects through patterns of its surface by touching it.
• Taste − The ability to receive flavor of substances by tasting it through
sensory organs known as taste buds.
• Other senses − They approve perception through body, like balance,
acceleration, pain, time, sensation felt in throat and lungs etc.
• Of the social world − It permits people to understand other individuals
and groups of their social world. Example − Priya goes to a restaurant
and likes their customer service, so she will perceive that it is a good place
to hang out and will recommend it to her friends, who may or may not
like it. Priya’s perception about the restaurant is good.

Perceptual Process
Perceptual process are the different stages of perception we go through. The
different stages are −
• Receiving
• Selecting
• Organizing
• Interpreting
Receiving
Receiving is the first and most important stage in the process of perception. It is the
initial stage in which a person collects all information and receives the information
through the sense organs.

Selecting
Selecting is the second stage in the process. Here a person doesn’t receive the data
randomly but selectively. A person selects some information out of all in accordance
with his interest or needs. The selection of data is dominated by various external and
internal factors.
 • External factors − The factors that influence the perception of an
individual externally are intensity, size, contrast, movement, repetition,
familiarity, and novelty.
• Internal factors − The factors that influence the perception of an
individual internally are psychological requirements, learning,
background, experience, self-acceptance, and interest.
Organizing
Keeping things in order or say in a synchronized way is organizing. In order to make
sense of the data received, it is important to organize them.
We can organize the data by −
• Grouping them on the basis of their similarity, proximity, closure,
continuity.
• Establishing a figure ground is the basic process in perception. Here by
figure we mean what is kept as main focus and by ground we mean
background stimuli, which are not given attention.
• Perceptual constancy that is the tendency to stabilize perception so that
contextual changes don’t affect them.
Interpreting
Finally, we have the process of interpreting which means forming an idea about a
particular object depending upon the need or interest. Interpretation means that the
information we have sensed and organized, is finally given a meaning by turning it
into something that can be categorized. It includes stereotyping, halo effect etc.

Importance of Perception in OB
We need to understand what the role of perception in an organization is. It is very
important in establishing different role of perceptions like −
• Understanding the tasks to be performed.
• Understanding associated importance of tasks allotted.
• Understanding preferred behavior to complete respective tasks.
• Clarifying role perceptions.

For example, every member in a group has to be clear regarding the role allotted to
them. Programmer writes the code, tester checks it, etc.

JOB RELATED ATTITUDE AND BEHAVIOUR

Each one of us has our own belief or attitude towards the food we eat, the place we
live, the clothes we wear, etc. Similarly, work attitude refers to how an individual
feels about his work and shows his commitment towards it.
Attitudes are a way of thinking, and they shape how we relate to the world, both at work and
outside of work. An attitude denotes our opinions, beliefs, and feelings about various aspects of
our environment.

Positive Work Attitude

Positive work attitude is extremely important because it fosters productive thinking
and leads to productive working. A positive person is more approachable and easily
builds constructive relationships, which are essential in building cohesive teams.
The two job attitudes that have the greatest potential to influence how an individual
behaves at work are − Job Satisfaction and Organizational Commitment.
People consider and evaluate their work environment based on several factors like
the nature of the job, the rapport and relationship they share with their superiors and
peers, how they are treated in the organization and the level of stress the job
involves. Work attitudes that have the greatest potential to influence how an
employee behaves are job satisfaction and organizational commitment.

Job Satisfaction
The feelings people have toward their job. It is probably the most important job
attitude and denotes how satisfied an employee is at his work. A person with high
job satisfaction appears to hold generally positive attitude, and one who is
dissatisfied holds negative attitude towards their job.

Organizational Commitment
Organizational commitment is the emotional or psychological attachment people
have toward the company they work for. A highly committed employee identifies
completely with the organizations’ objectives and is willing to put in whatever effort
it takes to meet them. Such an employee will be willing to remain with the
organization and grow with it.
Factors Contributing to Job Satisfaction and Organizational Commitment

Employees tend to associate satisfaction and commitment in jobs with certain

characteristics.
Nature of Job − Employees are satisfied and committed when they feel that their job
provides the ability to use their inherent skills, having autonomy at work, performing
a seemingly significant task, having healthy feedback mechanism, etc. Employees
also tend to be more satisfied when their jobs help them build new skills and improve
themselves.
Job Fitment − It is the degree to which an employee’s personal beliefs, values and
goals are in synergy with those of the organization. An employee who sees a healthy
synergy will remain satisfied and committed.
Organizational Justice − Every individual likes to be treated fairly in all situations.
This also applies to the workplace and plays a big role in creating and sustaining
satisfaction and commitment levels. How fair the company policies are, how fairly
the management and superiors treat the employees and how fair is the
compensation an employee receives in return for his contribution, are some factors.
Work Relationships − Another major influencer of an employee’s satisfaction and
commitment is the relationship with juniors, peers and managers. Relationship refers
to the way they are treated, whether they are socially accepted in the work group,
how considerate is the manager, how fair he is towards the employees, etc.
Psychological Association − An employee who is emotionally attached with the
organization will be satisfied and willing to commit himself to achieving the
organizational objectives. It is the unspoken informal bond that silently plays a major
positive influence.

COGNITIVE DISSONANCE THEORY

Everyone has their own opinion regarding any topic or issue. However, sometimes,
there is a conflict between two opinions. For example, suppose a person values and
desires a healthy body but continues consuming unhealthy junk food. The person is
bothered by the difference in two attitudes central to the attitude system. What will
the person feel when they eat something unhealthy? guilt, anxiety, embarrassment,
and shame? We all face mental discomfort when we have opposing views or actions
on the same topic.

Cognitive Dissonance Theory

Leon Festinger developed the Cognitive Dissonance Theory. Cognitive factors that
are inconsistent with one another include knowledge, views, beliefs, and a person's
actions. Such inconsistency generates mental distress, which prompts the person to
make efforts to lessen or remove it. We have millions of cognitions, most of which
we are unaware of. Festinger postulated three possible relationships between a pair
of cognitive components. In the beginning, two cognitive components might be
pertinent and consonant. Second, two cognitive components that are pertinent yet
dissonant may exist. However, it could be challenging to pinpoint the connection
because two parts might sound discordant in one setting but not in another. For
example, two attitudes that a person holds are opposite and inconsistent. This
would cause mental discomfort because there is cognitive dissonance.

Assumptions of the Theory

There are some basic assumptions that Festinger made about human behavior.
• People are sensitive to conflicts between ideas and actions. The theory
contends that we can recognize, to some extent, when our actions are at
odds with our opinions, attitudes, and beliefs. Whether we like it or not,
there is a built-in alarm that sounds when we notice such an
inconsistency. You will notice and be impacted by this inconsistency, for
instance, if you believe that cheating is wrong but find that you are
cheating on a test.
• When this inconsistency is recognized, dissonance results, which inspires
a person to address the issue. This notion holds that one cannot ignore
this kind of mental discomfort. A person who suffers from inconsistency
 suffers from mental anguish. The degree of dissonance varies depending
on how important the belief, attitude, or value is to you and how
inconsistently your actions match this conviction. In any case, the theory
holds that the more dissonance there is, the more motivated one is to find
a solution.

Research Paradigms in Dissonance Research

The theory's important research has focused on what happens after people make
decisions, the consequences of being exposed to information that contradicts a prior
belief, the effects of effort expenditure, and what happens after people act in ways
that contradict their beliefs and attitudes.

The Free-Choice Paradigm

When a decision is taken, cognitive dissonance is likely to arise. Following the
choice, each of the negative elements of the selected option and the favorable
characteristics of the rejected alternative is discordant with the decision. On the
other hand, the decision is consistent with each of the selected option's good
elements, and the rejected alternative's bad aspects. Difficult decisions should elicit
more dissonance than easy decisions because a difficult decision will result in a
higher proportion of discordant cognitions than an easy one. As a result, there will
be more desirable to alleviate cognitive dissonance following a tough decision.
Dissonance after a choice can be decreased by eliminating negative characteristics
of the selected option, adding good aspects to the rejected alternative, or adding
negative aspects to the chosen alternative or positive aspects to the rejected
alternative. When the characteristics of the choice alternatives are changed to
lessen dissonance, the selected option becomes more appealing, and the rejected
alternative becomes less desired. This phenomenon is known as alternative
spreading, and the experimental paradigm is known as the free-choice paradigm.

The Belief-Disconfirmation Paradigm

People experience cognitive dissonance when confronted with knowledge that
contradicts their views. Suppose the cognitive dissonance needs to be addressed by
modifying one's beliefs. In that case, it might lead to misconception or misreading of
the situation information, information rejection or rebuttal, seeking support from
people who agree with one's belief, and striving to persuade others to accept one's
opinion Festinger, Riecken and Schachter (1956) investigated the influence of belief
disconfirmation on evangelizing by acting as participant observers in a group that
had been devoted to a significant belief that was detailed enough to be capable of
unequivocal disconfirmation. The organization was certain that a deluge would
swallow the continent based on a prophecy.

The Effort-Justification Paradigm

Dissonance occurs when a person engages in an unpleasant activity to achieve a
good goal. It follows from the cognition that the action is unpleasant and that one
would not engage in it; the cognition that the activity is unpleasant is discordant
with engaging in it. The more the dissonance, the greater the uncomfortable effort
necessary to get the desired result. Dissonance can be decreased by increasing the
outcome's attractiveness, which increases consonant cognitions.

The Induced-Compliance Paradigm

Dissonance occurs when someone does or says something that contradicts a
previously held opinion or attitude. One would not engage in such activity if one
were aware of past thoughts or attitudes. Incentives to participate in such activity,
such as promises of reward or threats of punishment, give cognitions consistent with
the action, and such thoughts give excuses for actions. The larger the quantity and
significance of cognitions supporting the conduct, the less dissonance there is.
Dissonance can be decreased by adjusting one's opinion or attitude to match what
was spoken more closely. Instead of the original phrase, forced compliance, this
paradigm is now called induced compliance.

How to Resolve Dissonance

When there are two opposing attitudes, one will feel discomfort due to that
discrepancy. To relieve that mental discomfort, either of the attitudes needs to
change. The first way is to change your beliefs. Changing beliefs is the easiest
approach to making your behaviors and beliefs more consistent. Such a course of
action is unlikely if the belief is significant to you and is core to who you are.
Furthermore, since we heavily rely on our worldview to predict events and organize
our thoughts, our fundamental attitudes and beliefs are fairly stable, and people do
not just randomly change them. Consequently, even though this is the most
straightforward method for resolving dissonance, it is probably not the most
popular. For example, if one believes smoking is bad for health but continues to do
it, it would cause mental discomfort. However, if the person just changed their belief
that smoking is not bad for health, then the discomfort would resolve. However, as
mentioned, if the attitude is central to our value system, this would be challenging
as the person knows the consequences of smoking
Changing actions is another way of resolving this mental discomfort. Making sure
you never repeat this behavior is a second choice. Guilt and anxiety may serve as
catalysts for behavioral modification. Aversive conditioning, or being made to feel
guilty or anxious, can frequently be a rather bad learning method, especially if one
cannot experience these emotions. Additionally, the activity that goes against your
principles might serve your interests somehow. The challenge would be eliminating
this emotion without altering your beliefs or behavior, which brings us to the third
and perhaps most popular approach to problem-solving. For example, in the above
example, if the person changed his action of smoking, this would resolve the
discomfort.
Another way of resolving cognitive dissonance is to change the perception of action.
Changing the way you see, remember, or perceive your conduct is a more
complicated approach to resolution. one would "rationalize" their behaviors. In other
words, one reframes their thought or context around their behavior so that it no
longer appears to conflict with it. For example, you could change the way smoking
is perceived by others, but this is difficult because the person would still know that
smoking has harmful effects.

Conclusion
Leon Festinger formulated the cognitive Dissonance Theory. Festinger introduced
this concept, which is an important one in social psychology. When two attitudes
regarding the same topic are opposed, they cause mental discomfort. Festinger
worked on this and proposed that there should be consonance between two
attitudes and that there are ways to resolve this mental conflict. The attitude, the
way the person perceives the issue, or the action can be changed. Applying either
of these options can help a person resolve that mental conflict.

ATTITUDE CHANGE
What does Attitude Change Explain?
A person's attitude toward what might be good or negative. It manifests in a
person's preference for or rejection of a certain thing. Some kids, for instance, have
a favorable view of web usage since they believe it offers them access to the most
helpful academic content. However, some people may have a negative view of
Online activity if they believe that it diverts too much of their attention from their
studies. Sometimes people's views change on something they once admired. Every
day, we encounter many fresh events and data that reinforce or alter our preexisting
perspective on a certain topic. Take the case of the learner who first has a terrible
attitude against utilizing the Internet but eventually changes his mind after learning
about its usefulness in the classroom.

Types of Attitude Change

Following are the major types of attitude:

Incongruent Attitude Alteration

The "attitude reversal" refers to a shift in perspective in which the prevailing view is
reversed, going from positive to negative or negative to affirmative. A veggie, for
instance, may feel unfavorable about meat intake and, as a result, abstain from
consuming meat. At some point in his life, he may acquire a favorable opinion of beef
intake if he learns that beef is an excellent source of protein that is important for
health. This indicates a 180-degree shift in mindset, resulting in a pessimistic
viewpoint becoming more optimistic. Inconsistent attitude shifts are characterized
by a lack of consistency between actions and words. The same might be said of
smokers who view cigarettes favorably and engages in the activity for their own
sake. A bad attitude about cigarettes and an attempt to stop may develop later in
life if the smoker recognizes the bad consequences of cigarettes upon his body. The
antithesis of a positive attitude shift, or a completely at-odds attitude shift, may also
be seen here.
Similarly, some thrive on being awake throughout the night and feel favorably
regarding this method. Nevertheless, they have a bleak opinion on staying up late
since they learn that doing so is unsafe for their health at some point. Similarly, there
was a 180-degree turn in sentiment.

Congruent Attitude Alteration

Changing one's attitude in the same direction as an already held one constitutes a
specific form of an attitude shift. A person's preexisting sentiment for anything gets
stronger with time. A user, for instance, can see gym sessions favorably since he
believes they would help him develop a more toned frame. However, at some point
during his life, he may develop a preference for gym training and spend more time
on it if he learns that in contrast to molding the figure, gymnasium workouts also
have broad health advantages. Here, the upbeat mood picked up momentum. It is
termed a "congruent mentality shift" when someone's beliefs and actions match up.
In a related vein, individuals often look down on those who indulge in wasteful
spending.
Nevertheless, if they run into an unequal distribution of resources where we require
more cash than they have saved, they despise the habit of irresponsible spending.
Their poor experience reinforces an unfavorable outlook on ostentation. They begin
putting away more cash than they ever had before. As a result, a nasty perception
became more unpleasant, demonstrating a parallel attitude shift.

Systematic Attitude Change

Systematic processing occurs when a person is highly motivated and cognitively
capable of processing a message. People who use systematic processing are the
most likely to be convinced by a communication's substance, such as the force or
logic of such an argumentation since they are motivated to pay close attention and
have the mental capacity to think thoroughly about a statement. Many elements,
including the letter's relevance, the recipient's previous knowledge of the issue, and
the presence or absence of external distractions, influence the recipient's
enthusiasm and intellectual functioning
When people change their minds about something, it sticks with them for longer
and with more stability if they internalize the data via methodical processing. If one
wishes to have a "requested level of trust in one's judgments, the inference
paradigm of pattern recognition says one will be more likely to employ the
empowerment process. Variables related to lower levels of huge confidence or
higher perceptions of assurance have been discovered to promote arranging the
following. Several aspects might influence communication persuasiveness, such as
a message's self-relevance and how it is framed. It has been demonstrated that
methodical thinking is helpful in situations surrounding social pressure. More valid
answers and higher solution reliability have emerged from group conversations
when participants use systematic thinking.

Conclusion
The force of one's outlook is crucial. The intensity of attitude is linked to the stability
of an attitude, its lack of flexibility, and capacity to foretell future actions. The more
pronounced these traits are, the more powerful the mentality. The strength of an
attitude is proportional to the amount of mental energy put into its formation. As
such, motivators via more rigorous mental activity tend to be more robust than those
formed through less rigorous mental activity. Opinions that result from more
deliberate thought tend to be more well-rounded and well-supported by a
sophisticated body of data.

LEARNING THEORIES
Learning can be defined as the permanent change in behavior due to direct and
indirect experience. It means change in behavior, attitude due to education and
training, practice and experience. It is completed by acquisition of knowledge and
skills, which are relatively permanent.

Nature of Learning
Nature of learning means the characteristic features of learning. Learning involves
change; it may or may not guarantee improvement. It should be permanent in nature,
that is learning is for lifelong.
The change in behavior is the result of experience, practice and training. Learning is
reflected through behavior.

Factors Affecting Learning

Learning is based upon some key factors that decide what changes will be caused
by this experience. The key elements or the major factors that affect learning are
motivation, practice, environment, and mental group.
Coming back to these factors let us have a look on these factors −
 • Motivation − The encouragement, the support one gets to complete a
task, to achieve a goal is known as motivation. It is a very important aspect
of learning as it acts gives us a positive energy to complete a
task. Example − The coach motivated the players to win the match.
• Practice − We all know that ”Practice makes us perfect”. In order to be a
perfectionist or at least complete the task, it is very important to practice
what we have learnt. Example − We can be a programmer only when we
execute the codes we have written.
• Environment − We learn from our surroundings, we learn from the
people around us. They are of two types of environment – internal and
external. Example − A child when at home learns from the family which
is an internal environment, but when sent to school it is an external
environment.
• Mental group − It describes our thinking by the group of people we chose
to hang out with. In simple words, we make a group of those people with
whom we connect. It can be for a social cause where people with the
same mentality work in the same direction. Example − A group of
readers, travelers, etc.
These are the main factors that influence what a person learns, these are the root
level for our behavior and everything we do is connected to what we learn.

How Learning Occurs?

Learning can be understood clearly with the help of some theories that will explain
our behavior. Some of the remarkable theories are −
• Classical Conditioning Theory
• Operant Conditioning Theory
• Social Learning Theory
• Cognitive Learning Theory

Classical Conditioning Theory

The classical conditioning occurs when a conditioned stimulus is coupled with an
unconditioned stimulus. Usually, the conditioned stimulus (CS) is an impartial
stimulus like the sound of a tuning fork, the unconditioned stimulus (US) is
biologically effective like the taste of food and the unconditioned response (UR) to
the unconditioned stimulus is an unlearned reflex response like salivation or
sweating.
After this coupling process is repeated (for example, some learning may already
occur after a single coupling), an individual shows a conditioned response (CR) to
the conditioned stimulus, when the conditioned stimulus is presented alone. The
conditioned response is mostly similar to the unconditioned response, but unlike the
unconditioned response, it must be acquired through experience and is nearly
impermanent.

Operant Conditioning Theory

Operant conditioning theory is also known as instrumental conditioning. This theory
is a learning process in which behavior is sensitive to, or controlled by its outcomes.
Let’s take an example of a child. A child may learn to open a box to get the candy
inside, or learn to avoid touching a hot stove. In comparison, the classical
conditioning develops a relationship between a stimulus and a behavior. The
example can be further elaborated as the child may learn to salivate at the sight of
candy, or to tremble at the sight of an angry parent.
In the 20th century, the study of animal learning was commanded by the analysis of
these two sorts of learning, and they are still at the core of behavior analysis.
Social Learning Theory
The key assumptions of social learning theory are as follows −
• Learning is not exactly behavioral, instead it is a cognitive process that
takes place in a social context.
• Learning can occur by observing a behavior and by observing the
outcomes of the behavior (known as vicarious reinforcement).
• Learning includes observation, extraction of information from those
observations, and making decisions regarding the performance of the
behavior (known as observational learning or modeling). Thus, learning
can occur beyond an observable change in behavior.
• Reinforcement plays an important role in learning but is not completely
responsible for learning.
• The learner is not a passive receiver of information. Understanding,
environment, and behavior all mutually influence each other.

Cognitive Learning Theory

Cognition defines a person’s ideas, thoughts, knowledge, interpretation,
understanding about himself and environment.
This theory considers learning as the outcome of deliberate thinking on a problem or
situation based upon known facts and responding in an objective and more oriented
manner. It perceives that a person learns the meaning of various objects and events
and also learns the response depending upon the meaning assigned to the stimuli.
This theory debates that the learner forms a cognitive structure in memory which
stores organized information about the various events that occurs.
Learning & Organizational Behavior
An individual’s behavior in an organization is directly or indirectly affected by
learning.
Example − Employee skill, manager’s attitude are all learned.
Behavior can be improved by following the listed tips −
• Reducing absenteeism by rewarding employees for their fair attendance.
• Improving employee discipline by dealing with employee’s undesirable
behavior, drinking at workplace, stealing, coming late, etc. by taking
appropriate actions like oral reprimands, written warnings and
suspension.
• Developing training programs more often so as to grab the trainees’
attention, provide required motivational properties etc.

APPLICATIONS OF LEARNING IN ORGANIZATIONS

the six applications of learning theory, i.e, (1) Using Lotteries to
Reduce Absenteeism, (2) Work Pay vs. Sick Pay, (3) Employee
Discipline, (4) Developing Training Programmes, (5) Creating
Mentoring Programmes, and (6) Self Management.

1. Using Lotteries to Reduce Absenteeism:

Management can make use of the learning theory to reduce absenteeism. For
example, in 1966, the management of a hardware retail store found that
tardiness and absenteeism on the part of employees were too serious. The
management embarked on an innovative programme to tackle the problem. The
programme consisted of a lottery with attractive prizes. What were unique about
the lottery was its eligibility requirements. Only employees with perfect
attendance and no tardiness were eligible to contest. The programme was a
rousing success. Attendance improved so much that even a storm could not
deter the employees from being present at work.

2. Work Pay vs. Sick Pay:

Most organisations provide their employees with paid sick leave as part of the
employees’ fringe benefit programme. But ironically, organisations with paid
sick leave programmes experience twice the absenteeism than organisations
without such a programme. The reality is that sick leave encourages wrong
behaviour i.e. absence from work. When employees receive ten paid sick leaves
a year, it is the unusual employee who isn’t sure to use them all up, regardless of
whether he or she is sick.:

Organisations should reward attendance not absence. Research shows that on

organisation introduced a well pay programme that paid bonus to employees
who had no absence for any given four week period and then paid for sick leave
only after the first eight hours of absence. Evaluation of this programme found
that it produced increased savings to the organisation, reduced absenteeism
increased productivity and improved employee satisfaction.

3. Employee Discipline:
Every manager at some time or the other has to deal with indiscipline in the
organisation in such acts as drunkenness on the job, consistent late arrivals to
work, insubordination, stealing company property etc. Managers generally
respond with disciplinary actions such as oral reprimands, written warnings and
temporary suspensions. But research on discipline shows that the use of
discipline carries costs. It may provide only a short term solution and result in
serious side effects.

Disciplining employees for undesirable behaviours only tells them what not to
do. It doesn’t tell them what alternative behaviours are preferred. Discipline
leads to only short term suspension of undesirable behaviour and not its
elimination. Continued use of punishment can undermine employer relations
because it tends to produce a fear of the manager. As the punishing agent, he
becomes associated in the employee’s mind with adverse consequences.
Employees respond by ‘hiding’ from the boss.

In practice, discipline tends to be popular because of its ability to produce fast

results in the short run and immediate change in the employee’s behaviour. But
in the long run, it is used without positive reinforcements; it will lead to
employees’ frustration, fear of the manager, recurrence of problem behaviour,
increase in absenteeism etc.

4. Developing Training Programmes:

Most organisations have some type of systematic training programmes. A social
learning theory tells the organisers that training should provide a model; it
needs to grab the trainee’s attention, provide motivational properties, help the
trainee to file away what he or she has learned for future use, provide
opportunities to practice new behaviours, provide positive rewards for
accomplishments and if training has taken place off the job, allow the trainee
some opportunity to transfer what he has learned on the job.

5. Creating Mentoring Programmes:

Learning theory can also explain certain forms of managerial behaviour towards
subordinates. Successful mentoring programme will be built on modelling
concepts from social learning theory. That is, a mentor’s impact comes from
more than merely what he or she explicitly tells a protege. Mentors are role
models.

Proteges learn to convey the attitudes and behaviour that the organisation wants
by emulating the traits and actions of their mentors. They observe and then
imitate. Top managers who are concerned with developing employees who will
fit into the organisation and with preparing young managerial talent for greater
responsibilities should give careful attention to who takes on mentoring roles.

The creating of formal mentoring programmes, in which young individuals are

officially assigned a mentor, allows senior executives to manage the process and
increases the likelihood that proteges will be moulded the way top management
desires.

6. Self Management::
Organisational applications of learning concepts are not restricted to managing
the behaviour of others. These concepts can also be used to allow individuals to
manage their own behaviour and in doing so, reduce the need for managerial
control. This is called self management. While in general, some of the
behavioural modification techniques are affective in eliciting desirable
behaviours from employees in work situations, there are some limitations that
make these techniques ineffective in certain situations.

OB MODIFICATION AT LEVELS

Meaning of Organisational Behaviour Modification:

Modern behaviorists lay great emphasis on operant conditioning for molding
behaviour of individuals and motivating them. Behaviour modification,
popularly known as OB MOD makes use of various reinforcements to influence
the behaviour of individuals. OB Mod is derived and developed from the work
of B.F. Skinner. This technique helps the managers in modifying or eliminating
undesirable behaviour and replacing it with behaviour that is more compatible
with goal attainment.

OB Mod in simple words can be defined as a technique for modifying the

modifying or behaviour of the organisational members so that they are engaged
in desirable undesirable behaviour and. replacing it with behaviour. It can be
used for motivating the employees as well as for enhancing organisational
effectiveness.

According to Stephen P. Robbins:

“OB Mod is a programme where managers identify performance related
employee behaviours and then implement an intervention strategy to
strengthen desirable behaviour and weaken undesirable behaviours.”

According to Schermerhorn, Hunt and Osborn:

“OB Mod is the systematic reinforcement of desirable work behaviour and the
non reinforcement or punishment of unwanted work behaviour. It includes four
basic reinforcement strategies. Positive reinforcement, negative reinforcement,
punishment and extinction”

A-B-C’s Of Behaviour Modification:

Behaviour modification as has been just explained helps the manager in
eliminating or modifying undesirable behaviour and replacing it with behaviour
that’s more compatible. It further helps us to understand how environmental
contingencies influence behaviour.

There can be two contingencies of behaviour:

(i) The Antecedents. These are the events preceding the behaviour.

(ii) The consequences i.e. the events that follow a particular behaviour.

Both these variables put together form the A-B-C model.

The main aim of this model is to change Behaviour by managing its

antecedents and consequences as is shown in the following diagram:

Steps in OB Modification:
Fred Luthans and R. Kreitner developed and used OB Mod to represent a
behavioural approach to the management of human resources for performance
improvement.

The steps given by them in applying the OB Mod are summarized in

the following figure:
These steps are discussed as follows:
1. Identification:
The first step in the OB Mod is identification of performance related behaviours.
First of all the behaviour should be identified as desirable or undesirable from
the point of view of the organisation. Then in the next stage, critical behaviours,
that have significant impact on the employees’ performance, should be given
due attention. The critical behaviours can be identified through discussions with
the particular employee and his immediate superior as both are closely
intimated with the job behaviours.

Some of the critical behaviours which affect job performance are absenteeism or
attendance, tardiness or promptness, complaints or constructive criticism,
listening to or not listening to the instructions, etc. If such behaviours are
modified, good results could be expected. Due attention should be given to the
critical behaviour because they get repeated again and again.

2. Measurement:
After the critical behaviours of the employees have been identified, the next step
for the manager is to measure the frequency of the critical behaviour over time.
The measurement can be done by observation and by extraction of information
from records. If the frequency is within the acceptable limit, it will require no
action, but if it exceeds the acceptable limit,
it will need immediate attention. The measurement of behaviour will also help
the managers in determining the success in changing the employees’ behaviour.
3. Analysis:
At the next step, the managers will have to do a functional analysis of the
behaviour that requires modification. This analysis will determine what
circumstances lead to a particular type of behaviour, what are the consequences
of such behaviour etc. Contingent consequences of behaviour should be
identified because these consequences have impact on subsequent behaviour.
Moreover, some contingent consequences appear to be affecting the critical
behaviour on the surface only, the functional analysis should try to find out the
competing contingencies for every behaviour also.

4. Intervention:
Once the critical behaviours have been identified and the circumstances which
cause such behaviours have been determined, the next step will be to develop an
effective intervention strategy. There are several strategies that can be used at
this stage. These include positive or negative reinforcement, extinction or
punishment.

The use of a particular strategy will depend upon the type of situation faced.
After developing and implementing a particular strategy, the frequency of
resulting behaviour is measured. If a behaviour change has occurred in the right
direction, the manager will select a reinforcement schedule that will maintain
the desired behaviour.

5. Evaluation:
The last stage in OB Mod is the evaluation whether the intervention strategies
are working properly or not. The basic purpose of OB Mod is to bring change in
undesirable behaviours so as to improve performance. Evaluation will reveal
whether the undesirable behaviours have been substituted by desirable
behaviour or not. If there has been a change in behaviour, whether it is
permanent or just temporary.

Further, the evaluation will also show whether there is improvement in the
performance or not. If there is a positive change, it suggests that the
interventions are successful. However, if the change is not significant, it may call
for adoption of alternate and more appropriate strategies.

Utilities of OB Modification:
OB Mod has been applied successfully in many organisations, service as well as
manufacturing, to improve organisational effectiveness and understand human
behaviour in organisations. It is an important technique of human resource
management.

The major strengths and utilities of OB Mod are as follows:

1. Can be Put to Testing:
OB Mod concentrates on a person’s external behaviour and this allows a
manager to realistically observe and deal with outward manifestations of
behaviour. Since it deals with observed behaviour it can be put to testing.

2. Development of Employees:
OB Mod presents a set of tools by which people can learn new behaviours and
skills and thereby replacing undesirable behaviours. Positive reinforcement
could be used to encourage desirable behaviour by the employees. Social
learning theory can be of great use in the effective implementation of any
training programme for the employees. Thus, OB Mod is a great technique of
developing the employees.

3. Control and Regulation of the Employees’ Behaviour:

OB Mod provides various tools to the managers for effectively controlling and
influencing the behaviour of employees in the organisation. Most behaviour in
the organisation are learned, controlled and changed by the consequences. The
managers can use operant conditioning to control and regulate the behaviour of
subordinates by manipulating the reward system.

The behavioural consequences that are rewarding increase the probability of

desired behaviour whereas aversive consequences decrease the probability of
desired response.
4. Easy to Understand and Use:
The understanding of OB Mod techniques is comparatively easy. Managers can
use these without many problems. OB Mod has received great attention from
several organisations in the recent years. It is widely applied in large
organisations in the areas of human resource management, executive
development, motivation, introduction of change and organisational
development.

INDIVIDUAL DIFFERENCES
individual differences are the ways in which people differ from each other.
every member of an organization has its own way of behaviour. it is important
for managers to understand individual differences because they influence the
feelings, thoughts, and behaviour of employees.

INDIVIDUAL DIFFERENCES CAN BE DIVIDED INTO TWO CATEGORIES:

• PERSONALITY DIFFERENCES
• ABILITY DIFFERENCES

PHYSICAL
APPEARANCE

PERSONALITY GENDER-MALE
INDIVIDUAL DIFFERENCES /FEMALE
DIFFERENCES
AGE
CAN BE
DIVIDED INTO
TWO PHYSICAL
CATEGORIES ABILITY ABILITY
DIFFERENCES INTELLECTUAL
ABILITY
ABILITY DIFFERENCES:
• PHYSICAL ABILITY
• INTELLECTUAL ABILITY

PHYSICAL ABILITY
the capacity to do tasks demanding stamina, strength & similar characteristics
comes under physical abilities.

INTELLECTUAL ABILITY
the capacity to do mental activities such as thinking reasoning & problem
solving comes under intellectual abilities.

VALUES AND PERSONALITY

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. Every individual has a unique,
personal and major determinant of his behavior that defines his/her
personality.
Personality trait is basically influenced by two major features −
• Inherited characteristics
• Learned characteristics
Inherited Characteristics
The features an individual acquires from their parents or forefathers, in
other words the gifted features an individual possesses by birth is
considered as inherited characteristics. It consists of the following
features −
• Color of a person’s eye
• Religion/Race of a person
• Shape of the nose
• Shape of earlobes

Learned Characteristics
Nobody learns everything by birth. First, our school is our home, then our
society, followed by educational institutes. The characteristics an
individual acquires by observing, practicing, and learning from others and
the surroundings is known as learned characteristics.
Learned characteristics includes the following features −
• Perception − Result of different senses like feeling, hearing etc.
• Values − Influences perception of a situation, decision making
process.
 • Personality − Patterns of thinking, feeling, understanding and
behaving.
• Attitude − Positive or negative attitude like expressing one’s
thought.

Traits of Personality
Personality traits are the enduring features that define an individual’s
behavior. A personality trait is a unique feature in an individual.
Psychologists resolved that there are five major personality traits and
every individual can be categorized into at least one of them. These five
personality traits are −
• Extrovert
• Neurotic
• Open
• Agreeable
• Conscientious

Major Personality Attributes

Following are the five major personality attributes that influence OB −
Locus of Control
Locus of control is the center of control of an individual’s code of conduct.
People can be grouped into two categories i.e., internals and externals
respectively.
People who consider themselves as the masters of their own fates are
known as internals, while, those who affirm that their lives are controlled
by outside forces known as externals.
Before making any decision, internals actively search for information, they
are achievement driven, and want to command their environment. Thus,
internals do well on jobs that craves complex information processing,
taking initiative and independent action.
Externals, on the other hand, are more compliant, more willing to follow
instructions, so, they do well in structured, routine jobs.
Machiavellianism
Machiavellianism is being practical, emotionally distant, and believing that
ends justify means.
Machiavellians are always wanting to win and are great persuaders. Here
are the significant features of a high-mach individuals −
• High-Machs prefer precise interactions rather than beating about the
bush.
• High-Machs tend to improvise; they do not necessarily abide by rules and
regulations all the time.
• High-Machs get distracted by emotional details that are irrelevant to the
outcome of a project.
Self-esteem
It is the extent up to which people either like or dislike themselves. Self-
Esteem is directly related to the expectations of success and on-the-job
satisfaction.
Individuals with high self-esteem think that they have what it takes to
succeed. So, they take more challenges while selecting a job.
On the other hand, individuals with low self-esteem are more susceptible
to external distractions. So, they are more likely to seek the approval of
others and to adapt the beliefs and behaviors of those they respect.
Self-monitoring
Self-monitoring is the capability of regulating one’s behavior according to
social situations. Individuals with high self-monitoring skill easily adjust
their behavior according to external, situational factors. Their impulsive
talents allow them to present public personae which are completely
different from their private personalities.
However, people with low self-monitoring skills cannot cover themselves.
Regardless of any situation, they are always themselves. They have an
attitude of, “what you see is what you get.”
Risk taking
Generally, managers are reluctant on taking risks. However, individual
risk-taking inclination affects the bulk of information required by the
managers and how long it takes them to make decisions.
Thus, it is very important to recognize these differences and align risk-
taking propensity with precise job demands that can make sense.

VALUES
every individual has certain values. Values may make or unmake a person
valuable.

values are convictions which helps a person to decide what is good or bad,
right or wrong, desirable or undesirable in any situation.

IMPORTANCE OF VALUES
• values affect the attitudes of employee
• value affect the decision making of employees
• values affect the inter personal relationship in organization.
 • values influence the perception and through that the behaviour of
employees.

WORK RELATED ASPECTS OF PERSONALITY

TYPE A
4 TYPES OF
PERSONALITY TYPE B
FOUND IN AN TYPE C
ORGANISATION
TYPE D

The Leader—Type A Personality

people with type a personality have an entrepreneurial band and they don’t mind
taking risks to receive the rewards that go along with their work. a manager with type
a personality will always try to influence the subordinates to get to the bottom line.

THE SOCIALIZER—TYPE B PERSONALITY

people with type B personality love to be part of groups, and in an organization, they
become the centre of attention. they love excitement and are often impatient and
demanding and highly energetic.

THE DETAIL SEEKER—TYPE C PERSONALITY

people with type C personality thrive on details, accuracy, and are serious about
everything. accountants, engineers, computer programmers, and analysts are of this
type.
THE DISTRESSED—TYPE D PERSONALITY
people with type D personality do not like change and prefer doing the same thing
repeatedly within a set of guidelines. they get easily motivated by security and
benefits.
UNIT 3

MOTIVATION-NEED BASED THEORIES

Need-based theories explain individual behavior as being motivated by meeting the
individual's needs or wants. A leader in the business environment is charged with
understanding subordinate needs and making certain that the employment environment
provides a means for satisfying those needs.

Maslow's Hierarchy of Needs Theory

Maslow’s Hierarchy of Needs Theory is regarded as one of the most popular
theories on motivation. It is a theory of psychology that explains that humans are
highly motivated in order to fulfill their needs, which is based on hierarchical
order.
It was first introduced by Abraham Maslow in 1943 for his paper titled Theory of
Motivation and is based on a hierarchy of needs, which starts with the most basic
needs and subsequently moves on to higher levels.
The main goal of this need hierarchy theory is to attain the highest position or the
last of the needs, i.e need for self actualization.
In business studies, it is used as a part of organisational behaviour and also
regularly used in psychology lectures.

Levels of Hierarchy

The levels of hierarchy in Maslow’s need hierarchy theory appear in the shape of
a pyramid, where the most basic need is placed at the bottom while the most
advanced level of hierarchy is at the top of the pyramid.
Maslow was of the view that a person can only move to the subsequent level only
after fulfilling the needs of the current level. The needs at the bottom of the
pyramid are those which are very basic and the most complex needs are placed on
the top of the pyramid.
Let us read in detail about the various steps in Maslow’s hierarchy of needs theory.
1. Physiological needs: The physiological needs are regarded as the most basic of
the needs that humans have. These are needs that are very crucial for our survival.
The examples of physiological needs are food, shelter, warmth, health,
homeostasis and water, etc.
In addition to all the above needs, Abraham Maslow also included sexual
reproduction as one of the most common needs as it is essential for the survival of
the species.
2. Safety Needs: Once the basic needs of food, shelter, water, etc are fulfilled,
there is an innate desire to move to the next level. The next level is known as the
safety needs. Here the primary concern of the individual is related to safety and
security.
Safety and security can be regarding many things like a stable source of income
that provides financial security, personal security from any kind of unnatural
events, attacks by animals and emotional security and physical safety which is
safety to health.
The various actions taken by an individual in ensuring safety and security are
finding a job, getting an insurance policy, choosing a secure neighborhood for
staying with family, etc.
3. Social Needs (Also known as Love and Belonging Needs): This is the third
level in the need hierarchy theory. It is that stage where an individual having
fulfilled his physiological needs as well as safety needs seeks acceptance from
others in the form of love, belongingness.
In this stage, human behaviour is driven by emotions and the need for making
emotional relationships is dominant here.
The following examples can satisfy this need:
1. Friendship
2. Family
3. Intimacy
4. Social Groups
When an individual is deprived of the above needs, he/she feels lonely and
depressed.
4. Esteem needs: This is considered as the fourth level of the hierarchy of needs
theory. It is related to the need of a person being recognised in the society. It deals
with getting recognition, self respect in the society.
The need for recognition and acceptance arises when a person has fulfilled their
need for love and belongingness.
In addition to recognition from others, there is a need for the person to develop self
esteem and personal worth.
5. Self-actualization needs: This is the final level of the theory of hierarchy of
needs as proposed by Maslow. It is the highest level of needs and is known as the
self-actualization needs. It relates to the need of an individual to attain or realise
the full potential of their ability or potential.
At this stage, all individuals try to become the best version of themselves. In other
words, self actualisation is the journey of personal growth and development.

Alderfer’s ERG Theory

Clayton Paul Alderfer is an American psychologist who developed Maslow’s hierarchy
of needs into a theory of his own. Alderfer’s ERG theory suggests that there are
three groups of core needs: existence (E), relatedness (R), and growth (G)—
hence the acronym ERG. These groups align with Maslow’s levels of physiological
needs, social needs, and self-actualization needs, respectively.
Existence needs concern our basic material requirements for living. These include
what Maslow categorized as physiological needs (such as air, food, water, and
shelter) and safety-related needs (such as health, secure employment, and property).
Relatedness needs have to do with the importance of maintaining interpersonal
relationships. These needs are based in social interactions with others and align with
Maslow’s levels of love/belonging-related needs (such as friendship, family, and
sexual intimacy) and esteem-related needs (gaining the respect of others).

Finally, growth needs to describe our intrinsic desire for personal development.
These needs align with the other portion of Maslow’s esteem-related needs (self-
esteem, self-confidence, and achievement) and self-actualization needs (such as
morality, creativity, problem-solving, and discovery).

Alderfer proposed that when a certain category of needs isn’t being met, people will
redouble their efforts to fulfill needs in a lower category. For example, if someone’s
self-esteem is suffering, he or she will invest more effort in the relatedness category
of needs.

McClelland’s Acquired Needs Theory

McClelland's need theory proposes there are three different needs most people
have, and each need corresponds to a type of person who feels motivated to
address that need. Understanding McClelland's need theory can help managers
identify employee needs, which may give them the ability to place their
employees in situations where they can thrive and reach their goals. Analyze
these three needs to determine which incentive may work best for each
employee:

Need for affiliation

The affiliate theory claims humans want to belong to a group and have other
people accept them. This theory can help managers identify whether an
employee might work well on a team and grow from the experience. Employees
who feel motivation from affiliation often have highly developed interpersonal
skills that can help them generate strong and meaningful relationships with their
coworkers.

Need for achievement

Some employees naturally strive to become successful and important. These

individuals may be competitive and maintain a high standard for their work
ethic. They typically have a strong desire for recognition after completing a task
and may ask for feedback on their performance. Establishing awards, such as an
employee of the month tradition, can help motivate these people in the
workplace.

Need for power

Some employees are interested in influencing others, making an impact on their

coworkers and positively affecting the workplace. These types of employees
often enjoy leading groups of people, distributing tasks and coordinating events.
They may attempt to motivate their coworkers to achieve short-term and long-
term goals. Allowing these employees to apply their leadership skills can
generate feelings of motivation in large groups of employees, which can lead to
job satisfaction.

McGregor’s Theory X and Theory Y

The idea that a manager’s attitude has an impact on employee motivation was
originally proposed by Douglas McGregor, a management professor at the
Massachusetts Institute of Technology during the 1950s and 1960s. In his 1960
book, The Human Side of Enterprise, McGregor proposed two theories by which
managers perceive and address employee motivation. He referred to these opposing
motivational methods as Theory X and Theory Y management. Each assumes that
the manager’s role is to organize resources, including people, to best benefit the
company. However, beyond this commonality, the attitudes and assumptions they
embody are quite different.

Theory X
According to McGregor, Theory X management assumes the following:

• Work is inherently distasteful to most people, and they will attempt to avoid work
whenever possible.
• Most people are not ambitious, have little desire for responsibility, and prefer to
be directed.
• Most people have little aptitude for creativity in solving organizational problems.
 • Motivation occurs only at the physiological and security levels of Maslow’s
hierarchy of needs.
• Most people are self-centered. As a result, they must be closely controlled and
often coerced to achieve organizational objectives.
• Most people resist change.
• Most people are gullible and unintelligent.

Essentially, Theory X assumes that the primary source of employee motivation is

monetary, with security as a strong second. Under Theory X, one can take a hard or
soft approach to getting results.
The hard approach to motivation relies on coercion, implicit threats,
micromanagement, and tight controls— essentially an environment of command and
control. The soft approach, however, is to be permissive and seek harmony in the
hopes that, in return, employees will cooperate when asked. However, neither of
these extremes is optimal. The hard approach results in hostility, purposely low
output, and extreme union demands. The soft approach results in a growing desire
for greater reward in exchange for diminished work output.
It might seem that the optimal approach to human resource management would lie
somewhere between these extremes. However, McGregor asserts that neither
approach is appropriate, since the basic assumptions of Theory X are incorrect.
Drawing on Maslow’s hierarchy of needs, McGregor argues that a need, once
satisfied, no longer motivates. The company uses monetary rewards and benefits to
satisfy employees’ lower-level needs. Once those needs have been satisfied, the
motivation disappears. Theory X management hinders the satisfaction of higher-level
needs because it doesn’t acknowledge that those needs are relevant in the workplace.
As a result, the only way that employees can attempt to meet higher-level needs at
work is to seek more compensation, so, predictably, they focus on monetary rewards.
While money may not be the most effective way to self-fulfillment, it may be the only
way available. People will use work to satisfy their lower needs and seek to satisfy
their higher needs during their leisure time. However, employees can be most
productive when their work goals align with their higher-level needs.

McGregor makes the point that a command-and-control environment is not effective

because it relies on lower needs for motivation, but in modern society those needs
are mostly satisfied and thus are no longer motivating. In this situation, one would
expect employees to dislike their work, avoid responsibility, have no interest in
organizational goals, resist change, etc.—creating, in effect, a self-fulfilling prophecy.
To McGregor, a steady supply of motivation seemed more likely to occur
under Theory Y management.

Theory Y
The higher-level needs of esteem and self-actualization are ongoing needs that, for
most people, are never completely satisfied. As such, it is these higher-level needs
through which employees can best be motivated.
In strong contrast to Theory X, Theory Y management makes the following
assumptions:

• Work can be as natural as play if the conditions are favorable.

• People will be self-directed and creative to meet their work and organizational
objectives if they are committed to them.
• People will be committed to their quality and productivity objectives if rewards
are in place that address higher needs such as self-fulfillment.
• The capacity for creativity spreads throughout organizations.
• Most people can handle responsibility because creativity and ingenuity are
common in the population.
• Under these conditions, people will seek responsibility.

Under these assumptions, there is an opportunity to align personal goals with

organizational goals by using the employee’s own need for fulfillment as the motivator.
McGregor stressed that Theory Y management does not imply a soft approach.

McGregor recognized that some people may not have reached the level of maturity
assumed by Theory Y and may initially need tighter controls that can be relaxed as
the employee develops.
If Theory Y holds true, an organization can apply the following principles of scientific
management to improve employee motivation:

• Decentralization and delegation: If firms decentralize control and reduce the

number of levels of management, managers will have more subordinates and
consequently need to delegate some responsibility and decision making to
them.
• Job enlargement: Broadening the scope of an employee’s job adds variety and
opportunities to satisfy ego needs.
• Participative management: Consulting employees in the decision-making
process taps their creative capacity and provides them with some control over
their work environment.
• Performance appraisals: Having the employee set objectives and participate
in the process of self-evaluation increases engagement and dedication.

If properly implemented, such an environment can increase and continually

fuel motivation as employees work to satisfy their higher-level personal needs through
their jobs.

Herzberg’s Two-Factor Theory

American psychologist Frederick Herzberg is regarded as one of the great original
thinkers in management and motivational theory. Herzberg set out to determine the
effect of attitude on motivation, by simply asking people to describe the times
when they felt really good, and really bad, about their jobs. What he found was that
people who felt good about their jobs gave very different responses from the people
who felt bad.

The results from this inquiry form the basis of Herzberg’s Motivation-Hygiene Theory
(sometimes known as Herzberg’s “Two Factor Theory”). Published in his famous
article, “One More Time: How do You Motivate Employees,” the conclusions he drew
were extraordinarily influential, and still form the bedrock of good motivational practice
nearly half a century later. He’s especially recognized for his two-factor theory, which
hypothesized that are two different sets of factors governing job satisfaction and job
dissatisfaction: “hygiene factors,” or extrinsic motivators and “motivation factors,” or
intrinsic motivators.

Hygiene factors, or extrinsic motivators, tend to represent more tangible, basic

needs—i.e., the kinds of needs included in the existence category of needs in
the ERG theory or in the lower levels of Maslow’s hierarchy of needs. Extrinsic
motivators include status, job security, salary, and fringe benefits. It’s important for
managers to realize that not providing the appropriate and expected extrinsic
motivators will sow dissatisfaction and decrease motivation among employees.
Motivation factors, or intrinsic motivators, tend to represent less tangible, more
emotional needs—i.e., the kinds of needs identified in the “relatedness” and “growth”
categories of needs in the ERG theory and in the higher levels of Maslow’s hierarchy
of needs. Intrinsic motivators include challenging work, recognition, relationships, and
growth potential. Managers need to recognize that while these needs may fall outside
the more traditional scope of what a workplace ought to provide, they can be critical to
strong individual and team performance.

The factor that differentiates two-factor theory from the others we’ve discussed is the
role of employee expectations. According to Herzberg, intrinsic motivators and
extrinsic motivators have an inverse relationship. That is, intrinsic motivators tend to
increase motivation when they are present, while extrinsic motivators tend to reduce
motivation when they are absent. This is due to employees’ expectations. Extrinsic
motivators (e.g., salary, benefits) are expected, so they won’t increase motivation
when they are in place, but they will cause dissatisfaction when they are missing.
Intrinsic motivators (e.g., challenging work, growth potential), on the other hand, can
be a source of additional motivation when they are available.
If management wants to increase employees’ job satisfaction, they should be
concerned with the nature of the work itself—the opportunities it presents employees
for gaining status, assuming responsibility, and achieving self-realization. If, on the
other hand, management wishes to reduce dissatisfaction, then it must focus on the
job environment—policies, procedures, supervision, and working conditions. To
ensure a satisfied and productive workforce, managers must pay attention to both
sets of job factors.
PROCESS-BASED THEORIES
Equity Theory
In contrast to the need-based theories we have covered so far, process-based
theories view motivation as a rational process. Individuals analyze their environment,
develop reactions and feelings, and respond in certain predictable ways.

Equity theory attempts to explain relational satisfaction in terms of perceived fairness:

that is, people evaluate the extent to which there is a fair or unfair distribution of
resources within their interpersonal relationships. Regarded as one of many theories
of justice, equity theory was first developed in 1963 by John Stacey Adams. Adams,
a workplace and behavioral psychologist, asserted that employees seek to maintain
equity between what they put into a job and what they receive from it against the
perceived inputs and outcomes of others.

Equity theory proposes that people value fair treatment, which motivates them to
maintain a similar standard of fairness with their coworkers and the organization.
Accordingly, equity structure in the workplace is based on the ratio of inputs to
outcomes.

Inputs are the employee’s contribution to the workplace. Inputs include time spent
working and level of effort but can also include less tangible contributions such as
loyalty, commitment, and enthusiasm.

Outputs are what the employee receives from the employer and can also be tangible
or intangible. Tangible outcomes include salary and job security. Intangible outcomes
might be recognition, praise, or a sense of achievement.

For example, let’s look at Ross and Monica, two employees who work for a large
magazine-publishing company doing very similar jobs. If Ross received a raise in pay
but saw that Monica was given a larger raise for the same amount of work, Ross
would evaluate this change, perceive an inequality, and be distressed. However, if
Ross perceived that Monica were being given more responsibility and therefore
relatively more work along with the salary increase, then he would see no loss in
equality status and not object to the change.

An employee will feel that he is treated fairly if he perceives the ratio of his inputs to
his outcomes to be equivalent to those around him.

Equity theory includes the following primary propositions:

 1. Individuals will try to maximize their outcomes.
2. Individuals can maximize collective rewards by evolving accepted systems for
equitably apportioning resources among members. As a result, groups will
evolve such systems of equity and will attempt to induce members to accept
and adhere to these systems. In addition, groups will generally reward members
who treat others equitably and punish members who treat others inequitably.
3. When individuals find themselves participating in inequitable relationships, they
will become distressed. The more inequitable the relationship, the more distress
they will feel. According to equity theory, the person who gets “too much” and
the person who gets “too little” both feel distressed. The person who gets too
much may feel guilt or shame. The person who gets too little may feel angry or
humiliated.
4. Individuals who discover they are in inequitable relationships will attempt to
eliminate their distress by restoring equity.

The focus of equity theory is on determining whether the distribution of resources is

fair to both relational partners. Partners do not have to receive equal benefits (such
as receiving the same amount of love, care, and financial security) or make equal
contributions (such as investing the same amount of effort, time, and financial
resources), as long as the ratio between these benefits and contributions is similar.

In other words, Ross perceives equity if Monica makes more money but also has more
job responsibilities, because the ratio of inputs (job responsibilities) to outcomes
(salary) is about the same. On the other hand, Ross would perceive inequity if the
ratio were different—say if Monica made more money for the same job or if Monica
made a salary equal to Ross’s but had fewer job responsibilities.

When an employee is comparing his input/outcome ratio to his fellow workers’, he

will look for other employees with similar jobs or skill sets. For example, Ross would
not compare his salary and responsibilities to those of the magazine company’s CEO.
However, he might look outside the organization for comparison—for instance, he
might visit glassdoor.com to check salaries for positions like his at other publishing
houses.

Much like other prevalent theories of motivation, such as Maslow’s hierarchy of needs,
equity theory acknowledges that subtle and variable factors affect people’s
assessment and perception of their standing relative to others. According to Adams,
underpayment inequity induces anger, while overpayment induces guilt.
Compensation, whether hourly or salaried, is a central concern for employees and is
therefore the cause of equity or inequity in most, but not all, cases.

In any position, employees want to feel that their contributions and work performance
are being rewarded with fair pay. An employee who feels underpaid may experience
feelings of hostility toward the organization and perhaps coworkers. This hostility may
cause the employee to underperform and breed job dissatisfaction among others.
Subtle or intangible compensation also plays an important role in feelings about
equity. Receiving recognition and being thanked for strong job performance can help
employees feel valued and satisfied with their jobs, resulting in better outcomes for
both the individual and the organization.

Equity theory has several implications for business managers, as follow:

• Employees measure the totals of their inputs and outcomes. This means a
working parent may accept lower monetary compensation in return for more
flexible working hours.
• Different employees ascribe different personal values to inputs and outcomes.
Thus, two employees of equal experience and qualification performing the same
work for the same pay may have quite different perceptions of the fairness of
the deal.
• Employees are able to adjust for purchasing power and local market conditions.
Thus a teacher from Vancouver, Washington, may accept lower compensation
than his colleague in Seattle if his cost of living is different, while a teacher in a
remote African village may accept a totally different pay structure.
• Although it may be acceptable for more senior staff to receive higher
compensation, there are limits to the balance of the scales of equity, and
employees can find excessive executive pay demotivating.
• Staff perceptions of inputs and outcomes of themselves and others may be
incorrect, and perceptions need to be managed effectively.

Expectancy Theory
Expectancy theory, initially put forward by Victor Vroom at the Yale School of
Management, suggests that behavior is motivated by anticipated results or
consequences. Vroom proposed that a person decides to behave in a certain way
based on the expected result of the chosen behavior. For example, people will be
willing to work harder if they think the extra effort will be rewarded.

In essence, individuals make choices based on estimates of how well the expected
results of a given behavior are going to match up with or eventually lead to the desired
results. This process begins in childhood and continues throughout a person’s life.
Expectancy theory has three components: expectancy, instrumentality, and valence.

Expectancy is the individual’s belief that effort will lead to the intended performance
goals. Expectancy describes the person’s belief that “I can do this.” Usually, this belief
is based on an individual’s past experience, self-confidence, and the perceived
difficulty of the performance standard or goal. Factors associated with the individual’s
expectancy perception are competence, goal difficulty, and control.

Instrumentality is the belief that a person will receive a desired outcome if the
performance expectation is met. Instrumentality reflects the person’s belief that, “If
I accomplish this, I will get that.” The desired outcome may come in the form of a
pay increase, promotion, recognition, or sense of accomplishment. Having clear
policies in place—preferably spelled out in a contract—guarantees that the reward will
be delivered if the agreed-upon performance is met. Instrumentality is low when the
outcome is vague or uncertain, or if the outcome is the same for all possible levels of
performance.

Valence is the unique value an individual places on a particular outcome. Valence

captures the fact that “I find this particular outcome desirable because I’m me.”
Factors associated with the individual’s valence are needs, goals, preferences, values,
sources of motivation, and the strength of an individual’s preference for a particular
outcome. An outcome that one employee finds motivating and desirable—such as a
bonus or pay raise—may not be motivating and desirable to another (who may, for
example, prefer greater recognition or more flexible working hours).

Expectancy theory, when properly followed, can help managers understand how
individuals are motivated to choose among various behavioral alternatives. To
enhance the connection between performance and outcomes, managers should use
systems that tie rewards very closely to performance. They can also use training to
help employees improve their abilities and believe that added effort will, in fact, lead
to better performance.

It’s important to understand that expectancy theory can run aground if managers
interpret it too simplistically. Vroom’s theory entails more than just the assumption
that people will work harder if they think the effort will be rewarded. The reward
needs to be meaningful and take valence into account. Valence has a significant
cultural as well as personal dimension, as illustrated by the following case: When
Japanese motor company ASMO opened a plant in the U.S., it brought with it a large
Japanese workforce but hired American managers to oversee operations. The
managers, thinking to motivate their workers with a reward system, initiated a costly
employee-of-the-month program that included free parking and other perks. The
program was a huge flop, and participation was disappointingly low. Why? The
program required employees to nominate their coworkers to be considered for the
award. Japanese culture values modesty, teamwork, and conformity, and to be put
forward or singled out for being special is considered inappropriate and even
shameful. To be named Employee of the Month would be a very great embarrassment
indeed—not at all the reward that management assumed. Especially as companies
become more culturally diverse, the lesson is that managers need to get to know their
employees and their needs—their unique valences—if they want to understand what
makes them feel motivated, happy, and valued.

Reinforcement Theory
The basic premise of the theory of reinforcement is both simple and intuitive: An
individual’s behavior is a function of the consequences of that behavior. You can think
of it as simple cause and effect. If I work hard today, I’ll make more money. If I make
more money, I’m more likely to want to work hard. Such a scenario creates behavioral
reinforcement, where the desired behavior is enabled and promoted by the desired
outcome of a behavior.

Reinforcement theory is based on work done by B. F. Skinner in the field of operant

conditioning. The theory relies on four primary inputs, or aspects of operant
conditioning, from the external environment. These four inputs are positive
reinforcement, negative reinforcement, positive punishment, and negative
punishment.

This following chart shows the various pathways of operant conditioning, which can
be established via reinforcement and punishment (both positive and negative for
each).
Reinforcement

Positive reinforcement attempts to increase the frequency of a behavior by rewarding

that behavior. For example, if an employee identifies a new market opportunity that
creates profit, an organization may give her a bonus. This will positively reinforce the
desired behavior.

Negative reinforcement, on the other hand, attempts to increase the frequency of a

behavior by removing something the individual doesn’t like. For example, an
employee demonstrates a strong work ethic and wraps up a few projects faster than
expected. This employee happens to have a long commute. The manager tells the
employee to go ahead and work from home for a few days, considering how much
progress she has made. This is an example of removing a negative stimulus as way
of reinforcing a behavior.

Reinforcement can be affected by various factors, including the following:

• Satiation: the degree of need. If an employee is quite wealthy, for example, it

may not be particularly reinforcing (or motivating) to offer a bonus.
• Immediacy: the time elapsed between the desired behavior and the
reinforcement. The shorter the time between the two, the more likely it is that
the employee will correlate the reinforcement with the behavior. If an employee
does something great but isn’t rewarded until two months after, he or she may
not connect the desired behavior with the outcome. The reinforcement loses
meaning and power.
• Size: the magnitude of a reward or punishment can have a big effect on the
degree of response. For example, a bigger bonus often has a bigger impact (to
an extent; see the satiation factor, above).

In a management context, reinforcers include salary increases, bonuses, promotions,

variable incomes, flexible work hours, and paid sabbaticals.Managers are responsible
for identifying the behaviors that should be promoted, the ones that should be
discouraged, and carefully consider how those behaviors related to organizational
objectives. Implementing rewards and punishments that are aligned with the
organization’s goals helps to create a more consistent, efficient work culture.

One particularly common positive-reinforcement technique is the incentive program,

a formal scheme used to promote or encourage specific actions, behaviors, or results
from employees during a defined period of time. Incentive programs can reduce
turnover, boost morale and loyalty, improve wellness, increase retention, and drive
daily performance among employees. Motivating staff can, in turn, help businesses
increase productivity and meet goals.

Let’s look at an IT sales team as an example: The team’s overarching goal is to sell
their new software to businesses. The manager may want to emphasize sales to
partners of a certain size (i.e., big contracts). To this end, the manager may reward
team members who gain clients of 5,000 or more employees with a commission of 5
percent of the overall sales volume for each such partner. This reward reinforces the
behavior of closing big contracts, strongly motivating team members to work toward
that goal, and likely increases the total number of big contracts closed.

To maximize the impact of such a reinforcement, every feature of the incentive

program must be tailored to the participants’ interests. A successful incentive program
contains clearly defined rules, suitable rewards, efficient communication strategies,
and measurable success metrics. By adapting each element of the program to fit the
target audience, companies are better able to engage participating employees and
enhance the overall program efficacy.

Punishment

Positive punishment is conditioning at its most straightforward: identifying a negative

behavior and providing an adverse stimulus to discourage future occurrences. A
simple example would be suspending an employee for inappropriate behavior.

Negative punishment entails the removal or withholding of something in order to

condition a response. For example, an employee in the IT department prefers to work
unconventional hours, from 10:30 a.m. to 7 p.m. However, her performance has been
suffering lately. A negative punishment would be to revoke her right to keep the
preferred schedule until performance improves.

The purpose of punishment is to prevent future occurrences of a particular socially

unacceptable or undesirable behavior. According to deterrence theory, the awareness
of a punishment can prevent people from engaging in the behavior. This can be
accomplished either by punishing someone immediately after the undesirable
behavior, so they are reluctant to do it again, or by educating people about the
punishment preemptively, so they are inclined not to engage in the behavior at all. In
a management context, punishment tools can include demotions, salary cuts, and
terminations.

In business organizations, punishment and deterrence theory play a vital role in

shaping the work culture to be in line with operational expectations and to avoid
conflicts and negative outcomes both internally and externally. If employees know
exactly what they are not supposed to do, and they understand the possible
repercussions of violating those expectations, they will generally try to avoid crossing
the line. Prevention is a much cheaper and easier approach than waiting for
something bad to happen, so preemptive education regarding rules—and the
penalties for violations—is common practice, especially in the area of business ethics.

APPLICATION OF MOTIVATION
It has been established that motivation is well applicable to the work environment.
Different factors motivate the employees. However, these factors vary from
country to country. Focus is on the application of motivation through job design,
job enrichment, job enlargement, de-jobbing environment, management by
objectives, employee recognition programmes, variable pay, flexible benefits,
employee involvement programmes like workers’ participation in management
and quality circles and quality of work life.

Application # 1. Job Design:

Job design is defined as the process of deciding on the content of a job in terms of
its duties and responsibilities; on the methods to be used in carrying out the job,
in terms of techniques, systems and procedures and on the relationships that
should exist between the jobholder and his superiors, subordinates and colleagues.

Two important goals of job design are- (i) to meet the organisational requirements
such as higher productivity, operational efficiency, quality of product/service, etc.
and (ii) to satisfy the needs of the individual employees like interests, challenge,
achievement or accomplishment, etc. Finally, the goal of the job design is to
integrate the needs of the individual with the organisational requirements.

Application # 2. Management by Objectives:

Management by Objectives (MBO) is a successful philosophy of management. It
replaces the traditional philosophy of ‘management by domination.’ It was
popularised as an approach to planning by Peter F. Drucker in 1954 in his famous
book The Practice of Management. Since that time, it has acquired momentum and
of late it has become a movement.

Organisations announced a number of employee recognition

programmes in order to motivate them:

i. Praising the employees in the presence of their colleagues regarding their

achievements, excellent performance, etc.

ii. Providing long-term employment and job security.

iii. Presenting awards in the annual functions to those employees who are
committed, creative and innovative.

iv. Providing wage/salary increments, benefits, perks and special bonus.

v. Inviting the employee and his family members to the company’s annual
functions and other functions.

vi. Giving special treatments to the employee and his family members for special
events like birthday, marriage day, etc.

vii. Honouring outstanding employees for their extraordinary accomplishments by

giving them prestigious company awards.

Linking Recognition Programmes and Reinforcement Theory:

Rewarding a behaviour with recognition immediately following that behaviour is
likely to encourage its repetition. Therefore, if the management recognises the
extraordinary accomplishments of the employees, they are motivated to repeat
their extraordinary accomplishments.

Organisations expect efficient performance from their employees in order to

contribute to the attainment of the individual goals. Organisations reward their
employees who contributed to the achievement of organisational goals. (Fig. 16.1)

Application # 3. Sound Salary Administration:

Management has to formulate and administer the salary policies on
sound lines as:

(i) Most of the employees’ satisfaction and work performance are based on pay;

(ii) Internal inequalities in pay are more serious to certain employees;

(iii) Employees compare their pay with that of others;

(iv) Employees act only on gross external inequities;

(v) Employee comparisons of pay are uninfluenced by levels of aspirations and pay
history; and

(vi) Employees compare the pay of different employees with their skill, knowledge,
performance, etc.

Objective of Salary Administration:

The objective of wage and salary administration are numerous and sometimes
conflict with each other.

Application # 4. Employee Participation Programmes:

Organisations today are increasingly involving their employees in various
activities. The management realised that employee potentialities can be used to
the maximum extent only through involving them in decision-making and the
implementation process. The formal employee involvement programmes include -
worker’s participation in both management and quality circles.

The concept of workers’ participation in the management is considered as a

mechanism where workers have a say in the decision-making process of an
enterprise.

Definition:

The concept of workers’ participation in management crystallises the concept of

Industrial Democracy, and indicates an attempt on the part of an employer to build
his employees into a team which works towards the realisation of a common
objective.

According to Davis, “it is a mental and emotional involvement of a person in a

group situation which encourages him to contribute to goals and share
responsibilities in them.”

Within the orbit of this definition a continuum, of men management

relationship can be conceived:

Workers’ Control → Joint Management → Joint Consultation

Workplace Consultation → Management Supremacy

Application # 5. Group Interaction:

A group is defined as two or more individuals, interacting with and interdependent
on each other, which come together to achieve particular objectives- groups may
be formal or informal. Formal groups are defined and formed by organisational
structure with clear-cut assignment, responsibility, accountability rules and
norms.

Informal groups are the natural formations in the work environment and form in
response to the need for social contact. Thus, these groups are not structured and
determined by the organisation. These groups satisfy the social needs of their
members. The important aspects of group interaction are group goals,
participation, leadership norms and cohesiveness.

Group Goals:

Groups generally have two types of goals viz., task goal and maintaining the group
itself. Task goal is related to the main function for which the group is formed. The
second goal is related to dealing with interpersonal conflict, resolving it and
maintaining interpersonal relations. Group members’ trusting behaviour will
contribute to increased originality, greater emotional stability, less defensive and
improved self-control.

Application # 6. Quality Circle:

A quality circle has been defined as a ‘self-governing group of workers with or
without their supervisors who voluntarily meet regularly to identify, analyse and
solve problems of their work field’. But there is a misconception that quality circle
and taskforce are one and the same, quality circle is not a taskforce and the former
is broader than the latter.

A taskforce is a group of most skilled employees selected and appointed by the

management, engaged in various functions, with an orientation to problem-
solving. The QC is a voluntary association of workers engaged in similar work with
an orientation of human relations. QCs are formed to attain specific objectives.
Application # 7. Quality of Work-Life:
Employees at the grass roots level experience a sense of frustration because of low
level of wages, poor working conditions, unfavourable terms of employment
inhuman treatment by their superiors and the like, whereas managerial personnel
feel frustrated because of alienation over their conditions of employment,
interpersonal conflicts, role conflicts, job pressures, lack of freedom in work,
absence of challenging work, etc.

Certain values were attributed to work in the past. Years ago, work was worship
and people had sincerity and commitment to work. But today’s employee does not
believe in such values of work. He works for his salary, he works hard if the
conditions of work are conducive and congenial and terms of employment are
favourable to him. As such, the work norms have been changing from time to lime.

Work norms in modern industrial society indicate that- (i) employee’s role in
industry is different from his role in the family; (ii) superior knows the best and he
has the right to impose on the subordinates; (iii) rules are for employees and they
have to follow them and (iv) employer has the right to lay off the worker due to
marketing and technological factors.

DESIGNING MOTIVATING
WORKPLACE
5 Ways to Create a Motivating Work Environment

What is most likely to motivate your employees on a day to day basis?

Is it the paycheck at the end of the week? Or, is it the possible profit
sharing or bonuses? Is it the occasional rewards or company picnics?

While all of these factors may motivate an employee to perform

exceptionally well over a certain period of time, they don’t necessarily
provide enough motivation for the “day to day” effort. For example, an
employee may come in on a Monday morning and face an
overwhelming task. What is going to motivate them to work hard even
though they are still in “weekend” mode? While the pay and monthly
bonuses may help, a motivating atmosphere and work environment
may become the number one motivator for your employees.
It is simple: a motivated employee will perform their job responsibilities
better. Studies have shown that while most employees are motivated
during their first six months on a new job, their initial enthusiasm and
excitement slowly fades away. So, as an employer, how do you create
a work environment that maintains enthusiasm each day for the long
term?

1) Create tasks that are beneficial to the company.

Every employee wants to feel that their job makes a difference. If an

employee feels like his/her work doesn’t mean anything or isn’t actually
contributing, most likely he/she will not be motivated to even
accomplish the task. As an employer, ensure that a majority, if not all,
of your employees’ tasks have a direct benefit or contribution to the
overall success of your company. Strategically created tasks that
directly affect the company will energize and motivate the employee to
perform to their best ability.

Example: One employee may feel that they simply answer the phones
and transfer calls. They may feel that their job doesn’t necessarily affect
the company’s success. Instead, let the employee know that
transferring a call to the correct department can lead to improved
customer satisfaction. They now know how important it is to correctly
transfer calls. This will, in turn, motivate them to effectively and
efficiently perform the job.
2) Hire top performers.

A study performed by Leadership IQ in June of 2006 showed that 93%

of employees felt that working with a low performer decreased their
own productivity. Top performers should have a certain degree of self-
motivation to begin with.

Example: Two or three team members are consistent complainers and

habitually absent. They express little to no desire to view their work as
direct contributions to the company’s success. Their attitudes and lack
of motivation begins rubbing off on other employees. Employees will
feed off of their coworkers’ attitudes, motivation, and performance.
Hire top performers to create a stimulating atmosphere amongst all
your employees.

3) Show appreciation.

Appreciation can be a simple “good job” or “nice work.” It will only take
a few moments out of your day to show your employees that you notice
their outstanding work.

Example: An employee worked weeks on a project that in turn

increased profits for your company. However, you’ve lately noticed that
employee taking longer breaks and neglecting their work. Chances are,
your lack of praise made the employee feel unappreciated. Instead,
offering simple words of praise and appreciation will motivate the
employee to maintain and even increase their adeptness.

4) Set goals.

A goal is a result that someone is expecting to achieve successfully in a

designated amount of time. Create a list of goals that an employee or
the overall company could reasonably attain. Choose somewhere to
display the goals.
Example: Although you’ve implemented a list of goals, you notice that
the employees are not exactly tackling them. While you may think that
creating and hanging the list up is enough, you may have missed one
crucial element: a time-line. When the employee knows when exactly
you expect the goal to be accomplished, they will become motivated to
meet a specific deadline.

5) Display confidence.

Show that you trust your employees to make the right decisions for the
overall well-being of the company. To an extent, allow the employee to
be creative in their job tasks.

Example: You create a list of specific job tasks for an employee to

undertake. However, you notice the employee is not performing to the
best of their abilities. Instill confidence in the employee by offering
them some flexibility and creativity in the tasks. Rather then simply
completing the task, they will attempt to go above and beyond.

While there are many ways to motivate your employees, these five
simple tips can create a motivating work atmosphere without requiring
much time or money from you.

MOTIVATION AND PERFORMANCE

MOTIVATIONAL TOOLS AS PERFORMANCE INDICATORS

In the presence of positive and clear-cut motivation philosophy and tradition in place, quality,
productivity, and service must improve as motivation assists people with regard to achieving
goals, gaining well-defined perspective, producing the power for change, developing self-
esteem & ability, as well as managing their growth and assisting others. The success of
organization relies on members resulting motivated in order to apply their competencies, and
led to perform satisfactory in the proper sectors. Motivation has positive effect on employee
mindset and behaviour and in this course, the workplace turns out to be more enjoyable and
comfortable where in the workers realise that their work has some valid sense and importance.
There are many components which are responsible to increase motivation in an individual.
Figure 2 illustrates the motivational tools as performance indicators.
6.1 Rewards

Rewards are very significant and effective tools of management while making effort to
motivate individual or group behaviour aiming to enhance efficiency of organization. Most of
the companies use pay, promotion, bonuses and recognition etc. to stimulate workforces and
to improve their performance. There is need to develop salary structures, special allowances
and healthy working conditions in relation to the nature of work, individual performance. In a
survey Allen, et al. [32] proposed that various kinds of reward system may carefully
supplement diverse plans and are considerably involved in better organizational performance.
Numerous surveys have decided that the award scheme must be line up to influence staffs’
performing to create it reliable with the organizational plan [33].

6.1.1 Promotion

Promotion is a type of non-monetary reward where an employee is moved up in position or

rank in his career in an organization. Promotion plays an important role in motivating
employees as everyone wants to climb the ladder up in their career and enjoy a high status. A
solemn desire to be promoted motivates the employee and inspires to perform better at work.
Koech [34], asserts that promotion motivates employee in multiple ways- enhances their self-
assessment, satisfies their recognition need, helps achieve goals and boost up their career, as
they work in places that provide opportunities for growth. A promoted employee is highly
motivated and prepared to meet the challenges of the job. The peer group of the promoted
employee is also motivated to perform better in anticipation of their promotion. Though
promotion is a performance indicator, point to mention is that it should be fair and aptly
rewarded to the deserving person upon his merit, without any bias or any partiality. This is
necessary as undeserved promotion may de-motivate other employees.

6.1.2 Pay increment

Monetary reward may be contemplated as an instrumental orientation to effort and involves

elements, for instance- wage, peripheral benefits, pension privilege, material goods apart from
safety. The conventional wisdom is that workers respond to monetary incentives-Pay them
more and they will work harder. Employees look forward to some or the other form of
monetary reward in return of their service. This reward may be in the form of fixed monthly
salary, hourly wages or other types of financial return. Any increase in these monetary
incentives highly motivate the employees as money is important for everyone since they can
buy the basic needs of the daily lives. Chien-Chung [35] observed that when employees are
given periodic pay raises either as promotion benefits, annual increments etc., they are
motivated. Monetary increments expedite the performance and productivity of employees.
Although Lindner [36] recognizes monetary incentives as unimportant and having less value
for motivating people, various organizations use this as a major factor to motivate their
workers at all levels. In some organizations, management rewards their employees by
incentives to finish a project or a work under deadline.

6.2 Appreciation & Recognition

Appreciation for one’s work generates a feeling in an individual’s mind that what he/she is
doing is meaningful and important, hence respected by peers and bosses alike. This impression
makes a person feel good and worthy, about their work and their accomplishments which
accelerates their motivation positively. Any type of appreciation of a work done by peers,
managers, supervisors, team leaders and the employer can be termed as recognition.
Recognition can also be referred to as a means to express gratitude or admiration for the extra
effort applied by an employee to complete a work or a perfect job done to achieve the goal, by
an employee in an organization. Recognition at all cost, encourages the individual employee
or a group in two ways - to perform perfectly and keep on enhancing their performance. This
approach of recognized and appreciated employees inspires other employees also, and hence
recognition becomes precursor of motivation. Recognition, either formal (written remarks and
events) or informal (oral), has been the most cost efficient way to strengthen needed actions
for performance inside an organization. Still, when recognition is acting in isolation of
compensation and equity rewards, it’s frequently loses much of its appeal [37].

6.3 Fair Evaluation

Fair evaluation of employees based upon their achievements of individual and group
performance and, their skills is very necessary for the growth and development of
organizations. Employee motivation is positively influenced by fair evaluation. If the
evaluation of employees in organization is unfair and unjust, it would lead to their de-
motivation which in turn will affect their performance. Treating employees with fairness and
respect at work is not only mandatory but in the long run, it can generate positive economic
result for both the employee and the organization. “A large and growing body of empirical
evidence from laboratory and field experiments, surveys, and observational data, as well as
neuroeconomic research, suggests that workers’ perceptions of fairness and trust are also key
drivers of their work effort” [38].

6.4 Leadership

Leadership is the ability for persuading thing completed in the proper way. With the aim of
achieving these goals, the leader must acquire the employees’ faith and enable them obey him.
Leaders have potential to motivate others and hold significance to leadership efficacy as that
of leader’s proficiency to convey. A good leadership always has the capability to harness the
full potential of an employee performance on a positive note and direct it towards
organizational productivity. If a leader is properly skilled and has the talent to inspire others
who are responsible to influence his work the leader will be taken as a successful and efficient
leader [39] and will support certain change in an enterprise.

6.5 Job Enrichment

Job enrichment practices make the job itself motivational as the employee becomes dissatisfied
and frustrated by routine tasks. Enrichment supports to lessen the emotion that a duty is
repetitious or suggests no career opportunity. Job enrichment is an essential function of
fascinating, stimulating, and holding talented persons, especially where task is repetitive or
tiring [40]. The employees get an opportunity to develop psychologically and experienced in
a job otherwise, failing job enrichment practices there is much possibility of inferior and lower
output, poor attitude, absenteeism and high turnover, etc.

6.6 Staff Training

Training enables employees to learn skills and business strategies from other sectors.
Employees welcome the opportunity to sharpen their skill sets and develop their position in
the organization and according to Ahmad [41], the new employee offers more influence on
competency building processes and human resources practices. As a result, a well-trained and
adaptable workforce can be prepared. In a research Al-Madi, et al. [39] stated that training of
staff is a chief strategy for motivating workers. Training increases required skills in employees
which make sure that employees are fully motivated to make contribution concerning
organization’s objectives [40].

6.7 Flexible Working Schedule

The transformations in economy, technology, social and daily life of prevailing situations have
heightened the appreciation flexible working provisions in the workplace. The execution of
flexible working hour plan enables employees to carry out their tasks in a relaxed, calm way.
Consequently, the motivational level of the employees increases as they do not feel any form
of stress or strain in their workings. Further, allows the employees to balance their
responsibilities and family issues at home. The flexible working hours plan permit employees
to concentrate on multiple roles in at present cut-throat working environments [42].

6.8 Participation and Empowerment

Workers participation and empowerment is concerning the involvements of the workers in

supervision, policymaking and taking into account the goals and the strategies of the
workplace. Workers participation encompasses employers motivating employees to help in
managing business practices. This is also acknowledged as worker’s involvement. Workers
participation involves employers identifying individual worker' ideas and opinions. In order to
realise workers that employers regard them as exceptional and effective in managing the
organization.

Employee participation is a new concept in industrial democracy and one of the means of
employee empowerment [43]. Employee involvement is an empowerment technique wherein
workers participate in dealings that was usually set aside for employers. A survey made by
Sun, et al. [44] discovered that staff involvement is certainly linked with total quality
management (TQM) backgrounds and perfections in business functioning. The key roles are
to stimulate and to develop employee relationship and obligation. There are no exact
procedures to develop involvement.

Empowerment of workers has been favoured as a mean to enhance motivation [45]. In a study
Thomas & Velthouse [23] outlined that empowered employees are usually explained as self-
motivated and dedicated people who feel accountable to accomplish qualitative effort. By a
number of studies, it is evident that workforces with high-level empowerment motivation hold
superior degree of job motivation, which similarly results in improved organizational output
and functioning [23, 46]. Workers participation and empowerment are two features that are
not to be ignored because it plays vital role in perception, dedication and understanding. Thus,
there will be a less possibility opposing to changes and not to be appreciated by the
management. If the work teams are extremely motivated and loyal towards the organization,
then higher levels of development and effectiveness can be attained by the organization. Fully
motivated, convinced and committed employees with positive goals will participate to
enriched organizational productivity that leads towards better rewards.

7. RELATIONSHIP BETWEEN EMPLOYEE MOTIVATION AND PERFORMANCE

Employee motivation and performance has taken the centre stage of research studies in recent
times. How an organization prepares itself and work through to motivate its employees, is the
topic of utmost concern in both public and private sectors. Performance of an employee can
be referred to as the work he or she does. If a work is done, it is said that he or she performed
and if the work is not done then it is said, he or she didn’t performed. Performance can also be
termed as readiness of an employee to do a particular work according to the requirement.
Motivation can be defined as an organizational process, which inspire employees to invest
their best efforts, skills and performance for the benefit the organization as a whole. It also
gives them real motives to realize desires and needs. Motivation enhances the performance
and capabilities of a person which further increases the efficiency of organization.

The topic motivation is of utmost importance whenever it is considered in context of

performance of an individual. Bishop [47] conducted research on the employee performance
and concluded that reward and recognition of performance of an employee affects employee
productivity. Employee performance is influenced by motivation because motivated
employees work with more effort which ultimately improves the performance [48]. Work
performance of the employee depends on the consistency of subjective (motivation, skills) and
objective (working conditions) performance factors. The employee performance is strongly
influenced by their motivation.

The success and growth of an organization rest on the skill of superiors to offer a motivating
situation to its workers. There is a great challenge before the managers to retain the staff as
motivated and exercising their duties in the workplace properly. At this stage it is essential for
a manager to be aware with the behaviour of each and every employee and, simultaneously
what aspect may be useful to motivate each one independently in order to attain the goals. A
researcher Joseph [49] concluded that by realising workforces' needs, superiors can identify
what rewards to utilize to influence the workforces. The aim of many organizations is to offer
assistance from motivating employee performance in the place of work by encouraging a
successful setting for both the organization and the workforces. Employee motivation has a
powerful effect on the effectiveness of an enterprise [50]. The success of the organization
relies upon members being influenced to utilise their skills and guided to perform competently
in the proper areas. Motivated employees are innovative, self-directed and goal-oriented as
they always look for better ways to achieve a goal. They are capable to produce qualitative
work with highest efficiency and productivity [51]. If the workers are not focused properly it
eventually affects performance. This involves low motivation, lack of positive team spirit, and
deprived sense of belonging, considering individuals devalued and poorly recompensed. The
scholar Mullin [52] assert that motivation reflects the expectation of a person in relation to his
emotional needs that directs an individual to achieve his goals in a distinct manner. The
conclusion can be drawn that the conceptual framework built upon around motivational
constructs stick to the basic idea that individual needs or expectation arises from the
performance level of a person that he or she implies to achieve the desired goals satisfactorily.
It is also evident that both extrinsic and intrinsic motivation can convincingly influence
human’s behaviour and encourage them to carry out specific actions, and enhance their
performance as depicted in figure 3.

Whenever we talk about the organizational performance it’s not only the capital and financial
resources that contributes in goal achievement but the human resource as well that makes a
distinction [53]. The organizations, irrespective of size, marketplace, and technology, aspire
to be productive prosperous and look after for continuous growth in spite of cut-throat business
enterprise. The plans and strategies must be improved and rightly executed with the proper use
of all efficient means with the aim of achieving those goals. The roles of motivated manager
is to direct organizational members and produce estimated results incorporating: recruitment
and selection, training and development, performance appraisal, job security, career growth,
work-life balance, pay fulfilment, role, team working, involvement and communication,
challenge and self-sufficiency. These are the key HR plans and strategies that act to motivate
employees and ensure them to be skilled. In their study Porter & Lawler [54] concluded that
exerted effort should be sufficient to achieve the desired performance level.

Motivation supports the management to be creative and accountable for their actions and
executing their roles and fulfil their functions. In addition, assists them in using business
resources properly. Motivation enables managers to promote their employees towards their
jobs in the right direction and right time. Many of the scholars have exhibited that inspired and
stimulated employees accomplish the work gracefully than depressed ones that leads to profit
growths [55].

EMOTIONS AT WORK
Emotions Affect Attitudes and Behaviors at
Work
Emotions shape an individual’s belief about the value of a job, a company, or a team. Emotions
also affect behaviors at work. Research shows that individuals within your own inner circle
are better able to recognize and understand your emotions (Elfenbein & Ambady, 2002).

So, what is the connection between emotions, attitudes, and behaviors at work? This
connection may be explained using a theory named Affective Events Theory (AET).
Researchers Howard Weiss and Russell Cropanzano studied the effect of six major kinds of
emotions in the workplace: anger, fear, joy, love, sadness, and surprise (Weiss & Cropanzano,
1996). Their theory argues that specific events on the job cause different kinds of people to
feel different emotions. These emotions, in turn, inspire actions that can benefit or impede
others at work (Fisher, 2002).

Figure 7.11
According to Affective Events Theory, six emotions are affected by events at work.

For example, imagine that a coworker unexpectedly delivers your morning coffee to your desk.
As a result of this pleasant, if unexpected experience, you may feel happy and surprised. If
that coworker is your boss, you might feel proud as well. Studies have found that the positive
feelings resulting from work experience may inspire you to do something you hadn’t planned
to do before. For instance, you might volunteer to help a colleague on a project you weren’t
planning to work on before. Your action would be an affect-driven behavior (Fisher, 2002).
Alternatively, if you were unfairly reprimanded by your manager, the negative emotions you
experience may cause you to withdraw from work or to act mean toward a coworker. Over
time, these tiny moments of emotion on the job can influence a person’s job satisfaction.
Although company perks and promotions can contribute to a person’s happiness at work,
satisfaction is not simply a result of this kind of “outside-in” reward system. Job satisfaction
in the AET model comes from the inside-in—from the combination of an individual’s
personality, small emotional experiences at work over time, beliefs, and affect-driven
behaviors.

Jobs that are high in negative emotion can lead to frustration and burnout—an ongoing
negative emotional state resulting from dissatisfaction (Lee & Ashforth, 1996; Maslach, 1982;
Maslach & Jackson, 1981). Depression, anxiety, anger, physical illness, increased drug and
alcohol use, and insomnia can result from frustration and burnout, with frustration being
somewhat more active and burnout more passive. The effects of both conditions can impact
coworkers, customers, and clients as anger boils over and is expressed in one’s interactions
with others (Lewandowski, 2003).

Emotional Labor
Negative emotions are common among workers in service industries. Individuals who work
in manufacturing rarely meet their customers face-to-face. If they’re in a bad mood, the
customer would not know. Service jobs are just the opposite. Part of a service employee’s job
is appearing a certain way in the eyes of the public. Individuals in service industries are
professional helpers. As such, they are expected to be upbeat, friendly, and polite at all times,
which can be exhausting to accomplish in the long run.

Humans are emotional creatures by nature. In the course of a day, we experience many
emotions. Think about your day thus far. Can you identify times when you were happy to deal
with other people and times that you wanted to be left alone? Now imagine trying to hide all
the emotions you’ve felt today for 8 hours or more at work. That’s what cashiers, school
teachers, massage therapists, fire fighters, and librarians, among other professionals, are asked
to do. As individuals, they may be feeling sad, angry, or fearful, but at work, their job title
trumps their individual identity. The result is a persona—a professional role that involves
acting out feelings that may not be real as part of their job.

Emotional labor refers to the regulation of feelings and expressions for organizational
purposes (Grandey, 2000). Three major levels of emotional labor have been identified
(Hochschild, 1983).

1. Surface acting requires an individual to exhibit physical signs, such as smiling, that
reflect emotions customers want to experience. A children’s hairdresser cutting the hair
of a crying toddler may smile and act sympathetic without actually feeling so. In this
case, the person is engaged in surface acting.
2. Deep acting takes surface acting one step further. This time, instead of faking an
emotion that a customer may want to see, an employee will actively try to experience
the emotion they are displaying. This genuine attempt at empathy helps align the
emotions one is experiencing with the emotions one is displaying. The children’s
hairdresser may empathize with the toddler by imagining how stressful it must be for
one so little to be constrained in a chair and be in an unfamiliar environment, and the
hairdresser may genuinely begin to feel sad for the child.
3. Genuine acting occurs when individuals are asked to display emotions that are aligned
with their own. If a job requires genuine acting, less emotional labor is required because
the actions are consistent with true feelings.

Figure 7.12
When it comes to acting, the closer to the middle of the circle that your actions are, the less emotional labor your job
demands. The further away, the more emotional labor the job demands.

Research shows that surface acting is related to higher levels of stress and fewer felt positive
emotions, while deep acting may lead to less stress (Beal et al., 2006; Grandey, 2003).
Emotional labor is particularly common in service industries that are also characterized by
relatively low pay, which creates the added potentials for stress and feelings of being treated
unfairly (Glomb, Kammeyer-Mueller, & Rotundo, 2004; Rupp & Sharmin, 2006). In a study
of 285 hotel employees, researchers found that emotional labor was vital because so many
employee-customer interactions involve individuals dealing with emotionally charged issues
(Chu, 2002). Emotional laborers are required to display specific emotions as part of their jobs.
Sometimes, these are emotions that the worker already feels. In that case, the strain of the
emotional labor is minimal. For example, a funeral director is generally expected to display
sympathy for a family’s loss, and in the case of a family member suffering an untimely death,
this emotion may be genuine. But for people whose jobs require them to be professionally
polite and cheerful, such as flight attendants, or to be serious and authoritative, such as police
officers, the work of wearing one’s “game face” can have effects that outlast the working day.
To combat this, taking breaks can help surface actors to cope more effectively (Beal, Green,
& Weiss, 2008). In addition, researchers have found that greater autonomy is related to less
strain for service workers in the United States as well as France (Grandey, Fisk, & Steiner,
2005).
Cognitive dissonance is a term that refers to a mismatch among emotions, attitudes, beliefs,
and behavior, for example, believing that you should always be polite to a customer regardless
of personal feelings, yet having just been rude to one. You’ll experience discomfort or stress
unless you find a way to alleviate the dissonance. You can reduce the personal conflict by
changing your behavior (trying harder to act polite), changing your belief (maybe it’s OK to
be a little less polite sometimes), or by adding a new fact that changes the importance of the
previous facts (such as you will otherwise be laid off the next day). Although acting positive
can make a person feel positive, emotional labor that involves a large degree of emotional or
cognitive dissonance can be grueling, sometimes leading to negative health effects (Zapf,
2006).

Emotional Intelligence
One way to manage the effects of emotional labor is by increasing your awareness of the gaps
between real emotions and emotions that are required by your professional persona. “What am
I feeling? And what do others feel?” These questions form the heart of emotional intelligence.
The term was coined by psychologists Peter Salovey and John Mayer and was popularized by
psychologist Daniel Goleman in a book of the same name. Emotional intelligence looks at
how people can understand each other more completely by developing an increased awareness
of their own and others’ emotions (Carmeli, 2003).

There are four building blocks involved in developing a high level of emotional
intelligence. Self-awareness exists when you are able to accurately perceive, evaluate, and
display appropriate emotions. Self-management exists when you are able to direct your
emotions in a positive way when needed. Social awareness exists when you are able to
understand how others feel. Relationship management exists when you are able to help others
manage their own emotions and truly establish supportive relationships with others (Elfenbein
& Ambady, 2002; Weisinger, 1998).

Figure 7.13

The four steps of emotional intelligence build upon one another.

In the workplace, emotional intelligence can be used to form harmonious teams by taking
advantage of the talents of every member. To accomplish this, colleagues well versed in
emotional intelligence can look for opportunities to motivate themselves and inspire others to
work together (Goleman, 1995). Chief among the emotions that helped create a successful
team, Goleman learned, was empathy—the ability to put oneself in another’s shoes, whether
that individual has achieved a major triumph or fallen short of personal goals (Goleman, 1998).
Those high in emotional intelligence have been found to have higher self-efficacy in coping
with adversity, perceive situations as challenges rather than threats, and have higher life
satisfaction, which can all help lower stress levels (Law, Wong, & Song, 2004; Mikolajczak
& Luminet, 2008).

GROUP
DYNAMICS
1. Meaning of Group Dynamics
Groups are important for organisational life. Managers spend substantial time in
managing groups and teams so that groups contribute to organisational and group goals.
How effectively a manager plans, organises, staffs, leads and controls depends upon how
effectively he manages the groups. A group means “two or more people who interact with
one another, are psychologically aware of one another, perceive themselves to be
members of the group, and work towards a common goal.”
Group dynamics studies the nature, formation and reasons for forming the groups. It
studies how groups affect the behaviour and attitude of members and the organisation.
It is a process by which people interact with each other. If groups are effectively
managed, they contribute a lot to organisational goals.
2. Features of Group
Group has the following features :
1. It consists of two or more persons who interact with each other.
2. Group members have reciprocal influence on each other. Each member influences and
is influenced by others in the group.
3. People develop mutual perceptions and emotions. They perceive and recognise each
other as members of the group.
4. Every group has
•
 •
• formal leader elected by group members, and
• informal leader “who engages in leadership activities but whose right
to do so has not been formally recognised by the organisation or
group.”
5. Each individual performs specific role which influences expectations of group
members from each other. Role structure is “the set of defined roles and inter -
relationships among those roles that the group or team members define and accept.”
6. Every group has group norms. “Norm is a standard of behaviour that the group accepts
and expects of its members. It represents standards of work to promote group activity.”
7. It maintains stability through group cohesiveness. Members
•
•
• develop liking for each other,
• develop sense of identification with each other, and
• remain attached to each other.
8. Members work for common interests and goals.
I. Formal and informal groups
Formal groups
Formal groups are deliberately created to carry out specific tasks. They have clearly
defined authority-responsibility relationships, communication channels, rules and
regulations that govern the behaviour of members. Committees, task forces and work
teams are the formal groups.
Formal Groups can be :
(i) Permanent Formal Groups [Command groups and permanent committees]
(ii) Temporary Formal Groups [Task forces and project groups]
(i) Permanent formal groups are formally represented on the organisation chart. They
are also known as command groups and have both managers and subordinates.
functional or product departments are the command groups.
(ii) Temporary formal groups deal with specific problems. They dissolve once the
problem is solved. Task groups, project groups or ad hoc committees are temporary
formal groups. They are created to respond to the changing environment and include
people from different command groups.
Types of Committees : Committees (formal groups) can be of the following types :
(i) Line and Staff Committees : The basis of forming line and staff committees
is authority. committee which has authority to make decisions is line committee and
committee which does not make decisions but only assists, advices and counsels the
superiors is staff committee. It helps line managers to perform the managerial functions
(ii) Ad hoc and Standing Committee : The basis for forming ad hoc and standing
committees is time frame. Committees which are formed for a specific purpose and
dissolve once the purpose is achieved are ad hoc or temporary committees. For example,
if company wants to conduct market survey for a new product, committee shall be
formed for this purpose which shall function till the survey is completed. Once done and
the product launched, the committee gets dissolved. committee which lasts for long
duration is standing or permanent committee. These committees provide advisory
functions to the chief executives.
(iii) Formal and Informal Committees : The basis of forming formal and informal
committees is their position on the organisation chart. Committees formed according to
formal procedures and assigned duties, power and authority to discharge those duties
are formal committees. They are formally shown on organisation charts and are
permanent committees.
Informal committees are groups of individuals which are not of ficially set up by the
organisation. They work for a given purpose without officially defined rules or
guidelines.
(iv) Plural Executive Committee and Advisory Committee : committee which carries
out managerial functions (planning through controlling), makes and implements
decisions is a plural executive committee. The most common example of this committee
is the board of directors which takes important managerial decisions and orders for
their implementation. The advisory committee does not make decisions but only
performs advisory or recommendatory functions.
Informal Groups
Meaning : These groups are not created by managers but spontaneously grow out of
interaction amongst members of formal groups. They are created by choice for
promoting the group goals. members even subordinate individual goals to group goals.
These groups may oppose or support the formal objectives. They are informal
committees not shown on the organisation chart. They form out of common thinking of
people. They are temporary and assist top executives on specific matters.
Types of Informal Groups : These are also called ‘overlays’. They are classified into five
categories by Pfiffner and Sherwood.
(i) Social overlays : These groups form because of social needs of people, that is, need
to interact.
(ii) Functional overlays : People of one department assist people of other departments.
Workers of production department can go to supervisors of sales department for help.
groups formed through inter-departmental interactions are called functional overlays.
(iii) Decision overlays : Some people excel in decision-making because of their ability
to judge, analyse and scan the information. People often approach them from different
departments for consultation. This forms decision overlays.
(iv) Power overlays : Power is different from authority. While authority is authority of
position, power is the authority of individual. Managers can acquire power through
experience, education, and factors like religion, politics, nationality etc. Interaction
based on such factors forms power overlays.
(v) Communication overlays : People using common equipments and machines,
recreational halls, canteens, club facilities etc. interact informally and form
communication overlays.
Functions of Informal Groups : Major functions of informal groups are as follows:
(i) Group values and life-style : Within formal structure of organisation, informal
groups arise on the basis of social values and life-styles of individuals. However, as these
groups strengthen, they develop tendency to resist change.
(ii) Social satisfaction : Interaction at the work place, sharing common thoughts, sitting
and eating together satisfy employees’ social needs.
(iii) Operate communication systems : Informal system of communication operates
along the formal channel of communication and works even faster than the formal
communication channel. Messages are transmitted at much faster speed though rumours
may also spread along with formal messages.
(iv) Maintain social control : Informal groups influence behaviour of people inside and
outside the group. Influencing behaviour inside the group is called internal control and
of those outside the groups is called external control. A particular kind of behaviour not
acceptable to group serves as internal control. External control is exercised on people
outside the group such as, trade unions.
Merits of Informal Groups : These are similar to merits of informal organisation.
Limitations of Informal Groups : These are similar to limitations of informal
organisation.
II. Primary and secondary groups
Primary groups promote common goals. Members share values and behaviour. These
groups are small and largely affect inter-personal behaviour. Friendship and social
needs are the basis of these groups.
Secondary groups have loose inter-personal relationships and no common goals to
share. Their members do not actively interact with each other. Professional bodies,
business organisations are the common forms of secondary groups.
III. Small and large groups
Small groups have few members who closely interact with each other. Large groups have
large number of members with weak inter-personal interaction. They do not actively
communicate with each other.
9. Group Processes and Functions
Groups perform the following processes and functions :
1. Assign Roles : Role is a set of expected behaviour attributed to someone who occupies
a given position in a social unit. In formal groups, these roles are defined by job titles
and positions. In informal groups, they are defined by their expectations and perceptions
of other managers. Group members perform the following roles:
(i) Task-oriented roles : Members perform organisational tasks and keep other
members focused on work.
(ii) Relations-oriented roles : They offer ideas and support other people’s ideas.
(iii) Self-oriented roles : These roles define personal expectations of members. They
may or may not support the formal, task-oriented roles.
Members perform these roles in different degrees. High clarity in roles leads to high
performance of the group.
2. Group Norms and Conformity : Group norms are acceptable standards or
expectations shared by group members. They relate to output levels, absenteeism,
promptness, dress, loyalty, etc.
Norms have powerful influence on performance. Members perform according to group
norms.
Purpose of Group Norms
Group norms serve the following purposes :
(i) They define acceptable standards of behaviour.
(ii) They promote group cohesiveness.
(iii) They promote consistent, uniform and predictable behaviour.
(iv) They promote group discipline.
(v) They promote group culture as members interact with each other.
(vi) They provide order by restraining discretionary powers of members.
(vii) They ensure group effectiveness and survival.
Enforcement of Group Norms
Group norms can be enforced in the following ways :
(i) Members conform to norms as they want to be accepted by groups.
(ii) Members perceive rewards like esteem, recognition, appreciation, acceptance and
social satisfaction through group norms.
(iii) Conformity to group norms strengthens group membership.
(iv) Penalties for non-conformance (disapproval, social boycott, loss of membership
etc.) also promotes conformity to group norms.
3. Group Cohesiveness : Group cohesiveness is the degree to which members are
attracted to the group and share the group goals. It is “the degree to which members are
attracted to a group, are motivated to remain in the group, and are mutually influenced
by one another.”
Group cohesiveness has the following merits :
•
•
• It strengthens group goals and group norms.
• Cohesive groups perceive management as supportive to group goals.
They perform better than less cohesive groups.
• Members communicate freely and better understand the feelings,
emotions and behaviour of others.
• Members collectively engage in decision-making. This provides higher
satisfaction than less cohesive groups.
• Mutual trust and confidence develop strong inter-personal
relationships.
 • Membership of cohesive groups is stable. Members accept innovations
and change.
• High compatibility between group goals and organisational goals
motivates to perform better than less cohesive groups.
• Members achieve higher job satisfaction than members of less
cohesive groups.
• Groups that perform similar activities do not depend on others to get
the work done.
Group cohesiveness leads to positive consequences when member s accept change in
organisational policies. Group norms are high, resistance to change is low and people
subordinate group goals in favour of organisational goals.
4. Group Decision-Making : Group decision-making is more effective as decisions are
based on extensive information. Groups spend substantial time on finding problems,
solutions and their implementation. Group decisions involve superiors and subordinates
which develop diverse, open and new ideas.
5. Group Communication : Groups communicate through informal channels. Messages
are clearly understood by members. There is effective feedback from group members
which corrects misunderstanding. It is an important supplement to formal
communication. Information gaps in formal communication are filled by informal
channels. It promotes healthy inter-personal relationships and speeds up the flow of
information.
Though rumours spread through informal channels, judicious use of this channel avoids
gossips and rumours. Informal channels help to attain group goals, solve group
problems, improve group performance, increase group cohesiveness and resolve group
conflicts.
6. Informal leadership : Though formal leaders lead the group, informal leaders emerge
by common consent of group members. They direct group activities. They are confident
and assertive to perform :
(i) Task role : They help members to achieve the formal goals. They provide unity of
action to group efforts. Sales manager, for example, assigns territories to sales people
and supervises the new sales force members.
(ii) Group building and maintenance role : Leaders provide emotional, psychological
and social support to group members. They build group image and strengthen their
solidarity. They settle non-work related disputes and keep members attached to the
group.
It is often difficult for the same person to perform both these roles. Different members,
therefore, become leaders for different roles.
MANAGEMENT OF
TEAMS
Establishing Team Norms
Team Norms
Norms are shared expectations about how things operate within a group
or team. Just as new employees learn to understand and share the
assumptions, norms, and values that are part of an organization’s culture,
they also must learn the norms of their immediate team. This
understanding helps teams be more cohesive and perform better. Norms
are a powerful way of ensuring coordination within a team. For example,
is it acceptable to be late to meetings? How prepared are you supposed to
be at the meetings? Is it acceptable to criticize someone else’s work?
These norms are shaped early during the life of a team and affect whether
the team is productive, cohesive, and successful.

Square Wheels Exercise and Group Discussion

Sometimes it can be challenging to start a conversation around team ground rules

and performance. The following exercise can be used to get individuals talking
about what works and what doesn’t work in teams they’ve worked in and how your
team can be designed most effectively.

What is happening in this picture represents how many organizations seem to

operate. On a piece of paper have everyone in your team write on this form and
identify as many of the key issues and opportunities for improvement as you can.
Following this, have a conversation around what this illustration might mean for
your own team.

Team Contracts
Scientific research, as well as experience working with thousands of
teams, show that teams that are able to articulate and agree on established
ground rules, goals, and roles and develop a team contract around these
standards are better equipped to face challenges that may arise within the
team (Katzenback & Smith, 1993; Porter & Lilly, 1996). Having a team
contract does not necessarily mean that the team will be successful, but it
can serve as a road map when the team veers off course. The following
questions can help to create a meaningful team contract:
• Team Values and Goals

o What are our shared team values?

o What is our team goal?

• Team Roles and Leadership
o Who does what within this team? (Who takes notes at the

meeting? Who sets the agenda? Who assigns tasks? Who runs
the meetings?)
o Does the team have a formal leader?
o If so, what are his or her roles?
• Team Decision Making
o How are minor decisions made?

o How are major decisions made?

• Team Communication
o Who do you contact if you cannot make a meeting?

o Who communicates with whom?

o How often will the team meet?
• Team Performance
o What constitutes good team performance?

o What if a team member tries hard but does not seem to be

producing quality work?
o How will poor attendance/work quality be dealt with?

Team Meetings
Anyone who has been involved in a team knows it involves team
meetings. While few individuals relish the idea of team meetings, they
serve an important function in terms of information sharing and decision
making. They also serve an important social function and can help to
build team cohesion and a task function in terms of coordination.
Unfortunately, we’ve all attended meetings that were a waste of time and
little happened that couldn’t have been accomplished by reading an e-
mail in 5 minutes. To run effective meetings, it helps to think of meetings
in terms of three sequential steps (Haynes, 1997).

Before the Meeting

Much of the effectiveness of a meeting is determined before the team
gathers. There are three key things you can do to ensure the team
members get the most out of their meeting.
Is a meeting needed? Leaders should do a number of things prior to the
meeting to help make it effective. The first thing is to be sure a meeting
is even needed. If the meeting is primarily informational in nature, ask
yourself if it is imperative that the group fully understands the
information and if future decisions will be built upon this information. If
so, a meeting may be needed. If not, perhaps simply communicating with
everyone in a written format will save valuable time. Similarly, decision-
making meetings make the most sense when the problem is complex and
important, there are questions of fairness to be resolved, and commitment
is needed moving forward.
Create and distribute an agenda. An agenda is important in helping to
inform those invited about the purpose of the meeting. It also helps
organize the flow of the meeting and keep the team on track.
Send a reminder prior to the meeting. Reminding everyone of the
purpose, time, and location of the meeting helps everyone prepare
themselves. Anyone who has attended a team meeting only to find there
is no reason to meet because members haven’t completed their agreed-
upon tasks knows that, as a result, team performance or morale can be
negatively impacted. Follow up to make sure everyone is prepared. As a
team member, inform others immediately if you will not be ready with
your tasks so that they can determine whether the meeting should be
postponed.

During the Meeting

During the meeting there are several things you can do to make sure the
team starts and keeps on track.
Start the meeting on time. Waiting for members who are running late only
punishes those who are on time and reinforces the idea that it’s OK to be
late. Starting the meeting promptly sends an important signal that you are
respectful of everyone’s time.
Follow the meeting agenda. Veering off agenda communicates to
members that the agenda is not important. It also makes it difficult for
others to keep track of where you are in the meeting.

DECISION MAKING IN ORGANIZATIONS

Organizational decision making

Organizational decision making is the process by which one or

more organizational units make a decision on behalf of the
organization. The decision making unit can be as small as an
individual, e.g., a manager, or as large as the entire organizational
membership. Even though organizational decisions are frequently
influenced by personal goals, the decisions themselves are
legitimized to other units and agencies as fulfilling organizational
requirements. It is frequently being said that the organizational
decisions do not relate to personal purposes, but for the
organizational purposes.

The distinction between individual decision making and the

organizational decision making is that individuals make decisions
based on their own values and beliefs and whether something is
appropriate or not, whereas organizations have different
stakeholders and different sets of values which are incorporated
in their process of decision making.

In organizational decision making, it is basic to involve

stakeholders and uncover and reconcile their considerations or
concerns. Devising search tactics and considering a range of
alternatives is also important as is brainstorming. Such practices
can help produce better organizational decisions.

Decision making is an important aspect of any organizational

operations and marketing strategy. Organizations are faced with
thousands of decisions on a daily basis, and how they handle and
process these decisions can have substantial impact on their
performance. For this reason, it is imperative that the organization
has efficient, well organised procedures in place to handle such
decisions. The organizational management is also to make a
genuine effort to enhance the overall efficiency and quality of the
decision making processes.

Organization can also strive to incorporate and adopt a number of

best decision making practices in the operations and business
strategy. The process of decision making consists of a delicate
and complicated procedure which needs the organization to put a
lot of thought and consideration into how it is to be designed.
Organizations with good, efficient and well organized processes
for producing decisions are more likely to generate better
decisions, and as a result improve their productivity and
performance. Such organizations have to closely monitor the
decision making processes, as the quality of these processes can
have a substantial effect on the overall effectiveness and
efficiency.

Organizational decision making models

There are four organizational decision making models. These are
known as (i) rational model, (ii) political model, (iii) garbage can
model, and (iv) process or programme model.

Rational Model

The rational model describes an environment where

organizational entities use information in a designed and rational
approach to make selections on the part of the organization
resulting in organizational decisions being made. Even though the
rational model is an extremely important model, since it is publicly
ascribed to and because it is frequently the target of those who
support alternative models, it is simple to overlook that it is merely
a model, an incomplete representation of what actually occurs.

Political Or Competitive Model

The political or competitive model describes a setting where

decisions are the results of the implementation of tactics and
strategies by entities seeking to manipulate and persuade
decision procedures in directions which lead to selections
favourable to themselves. The political model highlights the fact
that different participants in the decision process frequently have
different goals and targets in mind..

The Garbage Can model

The core of the garbage can model is that organizational decisions

are consequences of interactions of problems searching for
solutions, solutions searching for problems, and opportunities for
making decisions. In other words, decisions in this model are
made at random. The garbage can model highlights the roles of
chance and timing in determining organizational choices.

Process Or Programme Model

The process or programme model depicts a setting where
organizational decisions are the results of the processes and
procedures of the departments involved. Seeing that the
organization programmes and processes are slow to change, and
since the effects of programming are hard to erase, decisions in
this model can be predicted at any point in time.

Complexity of the organizational decision making

The Capgemini business decisiveness report in 2004 has

produces a number of interesting findings about decision making
within the organizations. The findings of this report are that the
number of decisions expected of decision makers over an arbitrary
period, the speed of decision making, and the degree of autonomy
involved in decision making are increasing.

These findings establish a good context within which to

understand the dynamics of decision making within the
organizations. The findings also highlight the difficulty and
complexity involved in the organizational decision making. That is
why, it is imperative that the organization has efficient and
effective procedures in place to handle decision making. It can
also be very useful to incorporate a number of good organizational
decision making practices into the organizational operations.

The Forrester tech strategy report in 2003 is a good source. Its

significance is derived from the inclusion of a number of
organizations in the study. The report draws out a number of
relevant points which include (i) managerial decision making is
influenced by the quality of data possessed by the organization
and if the data is incomplete, inaccurate, fragmented, or
inconsistent then it compromises the quality of the decisions
made, (ii) decisions taken on the basis of poor data are likely to be
of low value, untimely, out of synchronization with strategy and
objectives, or just wrong, and (iii) the cost of poor decision making
to the organization, both financial and opportunity is considerable.
These points indicate that complete, accurate, and consistent
information is very important for the organizational decision
making. The correct data at the appropriate time can help improve
the capabilities of the decision making and eventually help
produce better and more informed decisions. In contrast,
incomplete and inaccurate data compromises the quality of
decisions, resulting in poor decisions which can have considerable
financial and opportunity costs associated with them.

The cost of the organizational decisions

A typical organization consists of three levels namely (i)

operational, (ii) tactical, and (iii) strategic. Each of these three
levels has its own decision makers and its associated cost of
decisions. The operational level includes thousands of employees,
who make around 2 million operational decisions per annum, each
valued at USD 250. The tactical level comprises hundreds of
middle level managers, who make around 200 tactical decisions
per annum, each valued at USD one million. The strategic level
contains tens of senior management personnel, who make around
20 strategic decisions per annum, each valued at USD 10 million.
This brings the total financial impact of decisions to plus / minus
900 millions of USD annually. Fig 3 shows financial impact of
decisions taken at different organizational levels.
Fig 3 Financial impact of decisions taken at different
organizational levels

It is worth mentioning that even though strategic decisions are

very costly as one wrong move can be disastrous and can cost the
organization millions, operational level decisions are more crucial
as they have a larger financial impact since they are made regularly
on a daily basis. For that reason, it is very important to have proper,
well-organized and efficient procedures and processes in place to
handle the operations of the organization.

According to an enterprise decision making survey report in the

year 2006, more managers are making more and more decisions,
dealing with large data and handling complex decisions. This is
because several organizations have started concentrating on the
operational role, since the organizations are now operating in a
more competitive environment.

The survey report also shows the top five casualties of poor
decision making. These are (i) customer loyalty, (ii) organizational
reputation among consumers, (iii) revenue, (iv) organizational
efficiency, and (v) customer service.

Customer loyalty refers to how loyal the customers are to the

products and services offered by the organization. If the
organization does not treat its customers well or the products do
not have the product quality needed by the customer, then the
chances are that the customers do not do any business with the
organization which results in a long term financial impact on the
organization.

Organizational reputation is a casualty of poor decision making. A

wrong decision can jeopardize the reputation of the organization
and its image among customers. Profits are another casualty of
poor decision making since the wrong decisions can have a
negative impact on the organizational profits. Poor decisions also
endanger organizational productivity and customer service. These
casualties show how devastating poor decisions can be for the
organization. That is why, organizations need to minimize if not
eliminate poor decisions from their operational and marketing
strategy.

Smart organization

Nine principles have been identified for the smart organization.

These principles influence how people think and act. These
principles work at numerous levels. These principles are in effect
facilitators of best practice execution and, hence the basis for high
quality decision making. Ultimately operational results are
generated by the accumulation of many best practices, all
completed in the correct strength of mind. Collectively these nine
principles cover the world view necessary for regularly achieving
high quality strategic decisions. Fig 4 groups the nine principles
into three vital functions namely (i) those which help the
organization achieve its purpose, (ii) those which make it feasible
to mobilize resources, and (iii) those which help the organization
understand its environment.
COOPERATION, AND CONFLICT IN ORGANIZATIONS
Top performing teams thrive on cooperation and collaboration, but you have to
expect conflicts will arise. Some conflict and cooperation will yield creative
solutions. Building a trusting team that communicates and tackles disagreements
with an eagerness for resolution is key. If you understand the fundamentals of
conflict and relationship-building, you can build a sense of trust and togetherness
that will result in synergy and, ultimately, a group of employees who love coming to
work each day.

Types of Conflict

It’s important to have a framework for understanding conflict in the

workplace. Harvard University packaged conflict into three understandable themes:
task, relationship and value conflict. While you can’t always compartmentalize
conflict, summarizing it into digestible ideas will help you consider the best way to
tackle it in the workplace.

Task Conflict

The ruse of task conflict is that you think you can attribute the disagreement to
something tangible. On the surface, it may seem like an employee conflict about a
task is rooted in the best way to accomplish an assignment or a difference about a
specific aspect of it. The reality may be that the issue is the difference between
conflict and competition.

Relationship Conflict

The personalities of your staff won’t always mesh. While employees don’t need to
be best friends, escalating tension can lead to unresolved conflict that can impede
work performance. At times, there may be conflict and cooperation that makes it
difficult to discern the real issue. Open discussion can lead to resolution, but it’s
important to deal with relationship issues as early as possible.

Value Conflict

Differences in personal values may be the most challenging to resolve. This type of
conflict is often connected to beliefs about gender differences, sexuality, religion,
diversity and politics. When the issues are tied to stereotypes or the marginalization
of protected classes, value conflict may be escalated to a violation of company
policies or even the law. It’s important to draw a line between personal beliefs and
workplace expectations.

Is Conflict Really Competition?

Healthy competition can empower employees to work harder, but have you ever
wondered about the difference between conflict and competition? It’s possible for
conflict to arise from the natural tension that occurs between high-performing
employees. In most cases, the tension is manifested in passive-aggressive behavior.
For example, an employee who struggles to meet sales goals is brusque when
interacting with the top salesperson. The best way to counteract this is to pair the
two employees on a project or have a direct conversation about the situation.

Build a Positive Environment

If your goal is to create a positive team environment, you will need to be a proactive
manager. Here are some ways to deal with conflict and cooperation in the
workplace.

Avoid an Accusatory Approach

If you observe interpersonal conflict in action, think before you act. Even if you know
who is the primary perpetrator of the problem, it’s important to avoid casting blame.
If the issue is behavioral, take the employee aside and have a developmental
conversation. Usually, a conflict is two-sided. The Edward Lowe Foundation outlines
these ideas for conflict management:

Resolution Room
Establish a room for mediation and problem-solving. Encourage employees to use
the room as a neutral site to discuss the conflict. Institute a rule that the resolution
room is focused on solutions rather than problems.

How Can We Make It Happen?

Instill a culture of possibility. Encourage employees to have the mindset that

anything is possible. This approach is particularly important with conflict and
cooperation between team members.

Dig Deeper

When you become aware of conflict in the workplace, investigate the situation
before reacting. Remember, there are always two sides to every situation. If you
remain an impartial fact-finder, you will demonstrate a sincere investment in both
parties involved.

How to Build Cooperation

Transformative Workplace Solutions outlines the three pillars of building a

cooperative workforce. If you use these ideals as the mainstay of the training and
development process, you can minimize conflict and cooperation will become the
norm.

Increase Communication

A lack of communication is at the heart of conflict in the workplace. When you create
an environment that instills communication as the norm, conflict is more likely to be
minimized. Open communication increases the likelihood of teamwork. As
employees work together on projects, they feel compelled to support one another.

Use Collaboration

Working in silos is never the answer. Your goal should be to help the entire workforce
understand the need to work together. Even initiatives that are less desirable are
more palatable when a team tackles them together.

Build Trust

Support, responsibility and regular feedback will help your team have a sense of trust
in one another and in you as a leader. It’s critical for leaders to model expected
behavior. A sense of support for group success will infuse trust in the work
environment.

Cultivate Multicultural Awareness

Conflict in international relations and diverse groups is common in organizations

that don’t convey multiculturalism as an organizational value. The Harvard Business
Review emphasizes the importance of institutionalizing efforts to infuse diversity
into every facet of the organizational culture. Here are a few initiatives to consider:

Company Values

Employees should be fully aware that diversity is a value of the organization. Review
your mission statement and company values to ensure that a commitment to
multiculturalism is clearly stated.

Hiring Process

Do your best to hire a diverse staff. Questions about multiculturalism should be

incorporated into the screening process to determine the values of the candidate
and convey the values of the organization.

Diversity Training

Education about stereotypes, microaggressions, bias and multiculturalism should

be provided for employees and included in the on-boarding process.

Imaging and Messaging

A diversity lens should be used to ensure that marketing pieces are comprehensive.
Photos, websites and marketing materials should be inclusive and communicate the
values of the organization.

Hold Employees Accountable

Employees and especially managers should be held responsible through

performance reviews, and bonuses should be awarded for upholding inclusive
practices in the workplace.

Encourage Constructive Confrontation

In most cases, you should confront behavior or a situation immediately. Focus on

how you felt about the behavior. Use “I” statements like: “I am worried about” or “My
concern is.” Be specific about your concern and use questions to show you are
invested in improving your relationship and the situation as a whole. Focus on
providing constructive feedback that is positive and developmental .

INFLUENCE
The Workplace Communication website defines organizational behavior as how
employees act as individuals within the company and how they interact as part of
work groups. Understanding the way that people and groups interact in the workplace
is important in being able to influence organisation change. You need to be able to
identify major influences of organisational behaviour in the workplace in order to
monitor and manage the way in which your company functions.

The above having been well understood implies that the way your employees behave
at work will differ from their behaviour as individuals in a social setting. A variety of
factors influence organisational behaviour, including the company's structure, policies
and procedures, management effectiveness and interactions between colleagues. All
of these elements can inspire employees to work harder or contribute to
disengagement. By understanding how to get the best out of your employees, your
company can become more productive and competitive.

1. Leadership

2. Work Culture

3. Job Responsibilities

4. Effective Communication

5. Family and Personal Life

6. Relationship at Work

7. Managerial Control

8. Ethics

9. Accountability

10. Harassment

The afore mentioned behavioural influencers impacts managements and

managerial operations in the following ways:

1. Culture

2. Motivation
 3. Decision Making

4. Change Management

POWER AND
POLITICS
Definition of power

Power is the ability to influence other people. It refers to the capacity to affect the
behaviour of the subordinate with the control of resources. It is an exchange
relationship that occurs in transactions between an agent and a target. The agent is
the person who uses the power and target is the receipt of the attempt to use power.

Distinction between Power, Authority and Influence

Power is the ability to influence someone else. Influence is the process of affecting
the thoughts, behaviour and feelings of another person. Authority is the right to
influence another person. Authority is a legitimate right to influence others.

(1) Authority is right to influence others but power is ability to influence people.

(2) Authority is legitimate while power is not.

(3) Authority confers legitimacy to power but power itself need not be legitimate.

Sources (Base) of Power

According to French and Raven, a manager drives power from five sources : Reward,
Coercive, Legitimate, Referent and Expert power.

Reward Power

It is based on the agent's/manager's ability to control rewards the target/employee

wants. The common, e.g., of it are managers control rewards of salary increases,
bonuses and promotions. This power is based on old saying that 'wealth is power'.

Coercive Power
It is opposite of reward power. It is based on a manager's ability to cause an
unpleasant experience for its people. In organizational situation, it may be in the form
of action for or threat for dismissal, suspension, or demotion, for the people working
in organization.

Legitimate Power

It is based on position and mutual agreement. Both the agent and target agree that
the agent has the right to influence the employees. It is in the form of authority which
is delegated to the positions of organizational members.

Referent Power

It is an elusive power that is based on interpersonal attraction. Charismatic

individuals are often thought to have referent power. Here, people take somebody as
ideal and behave accordingly upto a certain stage.

Expert Power

It exists when the agent has information or knowledge that the target needs. It is
based on the proverb, "knowledge in power". Three conditions to be fulfilled are :

(1) The target must trust that the information given by the agent is accurate and
correct.

(2) The information should be relevant and useful to the target.

(3) The target must consider the agent as an expert. (See p. 477, 478)

Acquisition of Power

Some people enjoy more power than others because :

1. Extraordinary Works : Doing things in a non-routine or extraordinary works

contribute to power. For example, negotiating a new contract, developing a new
product, or formulating a new programme.

2. Visible Activities : Even extraordinary activities not known to others do not

generate much power. Therefore, activities need to be visible or known to others.
Activities announced and appreciated by the people of higher echelons bring more
power.

3. Cultivate Right People : Individuals can also increase their personal power by
developing their interpersonal relationships with their superiors, subordinates and
peers.

4. Coalitions : Coalescing is yet another way to earn power. The philosophy behind
joining together is gaining increased capability to influence others.
5. Co-opt : Individuals can increase their personal power by co-opting people or
groups. Co-opting, seeks to eliminate threats and opposition to an individual's base
of power.

Personal and Position Power

Doing extraordinary things contribute much to personal power. It is possible for a

person to affect the behaviour of others even when he does not have any formal
authority. They do so because of superior qualities. The basis of such personal power
lies in the competence, charisma and leader-like qualities of the person concerned.

Legitimate power is power that is based on position. Authority confers legitimacy to

power. Authority is an institutionalised form of power vested in a position or office.
Position power is an exercise of the authority delegated to a person.

Meaning of Organizational Politics

It means the use of power and influences in organizations. Actions not officially
sanctioned or acceptable by an organization that are taken to influence others in order
to meet personal goals refer to politics.

Reasons for Organizational Politics

There are many reasons that contribute to political behaviour in organizations. Some
of them are :

1. Clear Goals : Organizations are human groups work for achieving certain goals.
The more unclear and complex the goals are, the more politics will be.

2. Discretionary Authority : Organizations provide position with discretionary

authority that is used based on individual judgement.

3. Autocratic Decisions : The leader dictates the decisions or orders and the
subordinates have no right to disobey. This leads to low employee morale and doubts
about what the manger-leader decides. Therefore, in order to safeguard their
interests, workers involve in politics by forming coalitions and associations.

4. Power Politics : Power is also a limited in supply. Hence, there is a competition

among mangers/executives to acquire more and more power. They try to acquire
more power and resources than their competitors. Managers' such behaviour
becomes quite dysfunctional.

5. Saturation in Promotion : Some people reach maximum level of promotion. They

feel dissatisfaction and resort to the organizational politics. Some people may like
work performance more than positional achievement and therefore, may not resort to
politics.
6. Biased Performance Appraisal : When the job performance of a personnel cannot
be measured quantitatively, performance appraisal is made on the basis of the
judgement of the superior. As such the performance appraisal is likely to be
subjective and biased. This may force the subordinates into dysfunctional political
behaviour.

Characteristics (Symbols) of Power and Powerlessness (Negative aspects)

Kanter has identified several symbols of power or characteristics of powerful people

in organization. These are :

1. Ability to intercede for someone in trouble : An individual who can pull someone
of a jam has power.

2. Ability to get placement for favoured employees : Arranging and getting a key
promotion for an employee is a sign of power.

3. Exceeding budget limits : A manager who can go beyond and above budget limits
without being reprimanded has power.

4. Procuring above-average raises for employees : A manager who can pull

incentives above average for his/her employee has power.

5. Getting items done on own terms at meetings.

6. Access to early information : Having access to information before anyone else is

an indication of power.

7. Top managers seeking out opinion : Top managers may seek advice from their
lower-level managers. These lower-level managers have power.

Unlike Katner, Michael Korda has identified three symbols of power. (1) Office
furnishing, (2) Time power and (3) Standing by.

Office Furnishing : Office furniture is a message about power one has. Size of the
manager's table conveys the amount of power the manger has.

Time Power : The powerful executives value time much. A full calendar of the day is
a proof of manager's power.

Standing by : People are obliged to stay close to their phones so that the executives
can have access to them. The idea is that the more you can impose your schedule on
your people, the more power you have.

Symbols of Powerlessness (Lack of Power)

The first-line supervisors often display three symptoms of powerlessness. These are
: (i) Overly close supervision; (ii) inflexible adherence to rules; and (iii) a tendency to
do the jobs themselves rather than educating and training their subordinates to do
these.

When staff professionals (accountants and lawyers) feel powerless, they resist
change and try to protect their turf. The key to overcome powerlessness is to share
power, i.e., empowerment and delegate tasks to subordinates.

Empowerment

Empowerment is the sharing of power in such a way that individuals learn to believe
in their ability to do the job. Empowerment has four dimensions:

1. Meaning: A fit between the work role and the employees values and beliefs.

2. Competence: A belief that one has the ability to do the job well.

3. Self-determination: Having control over the way one does one's work.

4. Impact: The belief that one's job makes a difference within the organization.

As a manager, you can use these guidelines for empowering your employees. Express
confidence in employees, set high performance expectations, create opportunities for
participative decision making, remove constraints that slow autonomy and set
inspirational and meaningful goals.

Power is a very useful tool. To use it effectively, consider these tips.

- Use power in ethical ways.

- Understand and use all the various types of power and influence.

- Seek out jobs in the organization that allow you to develop your power skills.

- Use power tempered by self-restraint and maturity.

- Accept that influencing people is an important part of a manager's job.

French and Raven's Five phases of Power

Social psychologists French and Raven, in a now-classic study (1959), developed a

schema of sources of power by which to analyse how power plays work (or fail to
work) in a specific relationship.

Power is the ability to influence someone According to French and Raven, power must
be distinguished from influence in the following way: power is that state of affairs
which holds in a given relationship, A-B, such that a given influence attempt by A over
B makes A's desired change in B more likely. Conceived this way, power is
fundamentally relative - it depends on the specific understandings A and B each apply
to their relationship and, interestingly, requires B's recognition of a quality in A which
would motivate B to change in the way A intends. A must draw on the 'base' or
combination of bases of power appropriate to the relationship, to effect the desired
outcome. Drawing on the wrong power base can have unintended effects, including a
reduction in A's own power.

UNIT 4
LEADER AND APPROACHES TO LEADERSHIP
What is Leadership?
Leadership is the process of influencing employees to accomplish organisational
objectives. It is the ability of an individual who is known as a leader to motivate
others to work with confidence and zeal to attain some predetermined goals.
Or you can say, the leadership forms a vision and the strategies required for
achieving organisational goals. The process of leadership should be built on a solid
foundation with a definite sense of vision, along with a mission with
responsibilities for organisational success.

Definitions of Leadership
There are some definitions of leadership by different authors which are given
below:
According to Chester Bernard, leadership is the quality of behaviour of the
individuals whereby they guide people in their activities in an organized effort.
According to Livingston, leadership is the ability to awaken in others the desire to
follow a common objective.
According to Keith Davis, leadership is a human factor that binds a group together
and motivates toward particular goals.
According to Koontz and O’Donnell, leadership is the ability to exert
interpersonal influence by means of communication toward the achievement of
goals.
According to the Encyclopedia of Social Sciences, leadership is the relation
between an individual (leader) and a group (followers) around some common
interests and behaving in a manner directed or determined by the individual
(leader).
Styles of Leadership
There are different styles of leadership and their impact on employees which we are
going to discuss:
• Autocratic Leadership Style
• Democratic Leadership Style
• Laissez-faire Leadership Style
• Bureaucratic Leadership Style
• Charismatic Leadership Style
• Directive Leadership Style
• Supportive Leadership Style
• Situational Leadership Style

Autocratic Leadership Style

In the autocratic leadership style, employees are managed in an autocratic manner and
it is only the leader who likes to have the total control and power to take decisions
without involving anybody else.

In this setting, leaders do not like to ask or make suggestions and opinions from anyone.
Employees normally do not like this style of leadership.

Impact of Autocratic Leadership Style on Employees

Employees are usually repulsive to this kind of leadership style because of the following
reasons:

• It affects employee productivity and motivation.

• There is no trust between the leaders and the employees.
• It has a negative impact on employees.
• Employees do not like the way decisions are made.
• It does not have the environment for accepting the creative ideas of the
employees.
• It does not encourage the employees to take ownership of their work.
• Employees feel insecure in their jobs in this style of leadership.
Democratic Leadership Style
The democratic style of leadership involves employees in the working and decision-
making processes of the organisation. Leaders like to share their thoughts and concerns
with the employees and it has a major positive impact on employee motivation and
productivity.

Impact of Democratic Leadership Style on Employees

Democratic leadership style has the following major advantages:

• It gives employees a sense of ownership in their role of working for the

organisation.
• It helps enhance the morale of the employees.
• It allows employees to feel important and involved in the daily operations of the
business.
• It allows their voices to be heard by the management.
• It creates a positive environment for working.
• It allows the employees to be innovative and open to new ideas.
• It gives a platform to the employees for discussion.
Laissez-faire Leadership Style
The laissez-faire leadership style has a very casual approach to leadership. Leaders leave
working on the employees and do not like to control or take on responsibilities.

They believe in the employees’ approach towards work and are not interested in the day-
to-day monitoring of the work of their employees. They let the employees make their
own decisions and set their own tasks.

Impact of Laissez-faire Leadership Style on Employees

The laissez-faire leadership style has the following advantages:

• Employees become self-motivated and they take on the responsibility for their
work.
• Employees learn to be innovative which is accepted by the organisation.
• Employees are happy working in this environment.
• It gives the employees flexible time to balance work and family commitments.
 • The system increases employee retention within the organisation.
Bureaucratic Leadership Style
In the bureaucratic leadership style, leaders follow a structured way of working. They
ensure that employees also follow the set procedures. This type of leadership leaves no
space to explore new ways to solve issues because leaders prefer to work according to
the preset standards. This type of leadership is normally followed in hospitals,
universities, banks and governmental organisations to bring down corruption and
increase security.

Self-motivated individuals who are highly energetic often feel frustrated in this
leadership style because of the organisation’s inability to adapt to the changing
environment. For example, Harold Geneen, who was the CEO of International Telephone
and Telegraph Corporation (ITT), is considered to be a bureaucratic leader and his
success is attributed to his strong focus and bureaucratic style of management.

Charismatic Leadership Style

In the charismatic leadership style, leaders infuse a lot of enthusiasm and boost the
energy levels of employees. They work with a goal or a mission and are visionaries who
drive their team to gear to a high level of performance. Leaders are dedicated to their
organisation and are a boon to the organisation. Lead- ers who adopt this leadership
style have the ability to engage large audiences. For example, Mahatma Gandhi, Nelson
Mandela etc.

Directive Leadership Style

In the directive leadership style, leaders monitor and guide employees in their work.
They delegate tasks, schedule work, maintain records and increase the performance
levels of the employees. Directive style is very useful when the employees have low level
of motivation or if a conflict arises between different people. It is mostly used in
organisations where there is hardly any scope of error. For example, law enforcement,
military, etc.

Supportive Leadership Style

In supportive leadership, leaders are friendly and approachable towards employees.
They show concern to- wards employees and help them in facing problems while
performing work. Under this leadership style, leaders listen carefully to their employees
and help them deal with stress. Leaders also train their employees to deal with
conflicting issues. For example, Joe Paterno, a former American football player is
considered as a supportive leader and coach.

Situational Leadership Style

In the situational leadership style, leaders of the organisation adjust their style to fit the
development level of their followers. This style was developed by Kenneth Blanchard
and Paul Hersey. In situational leadership, the style may change continually to meet the
needs of situation in the organisation.
Hence, situational leaders follow various styles of management to suit the organisational
requirement. For example, Jack Stahl, who was the former President of Coca Cola and
CEO of Revlon, demonstrated situational leadership style.

CONTEMPORARY ISSUES IN LEADERSHIP

Contemporary roles associated with lead team as controlling the conflicts; training to
improve team member performance; used to provide as troubleshooters. It appears to act in
response in a group in which they have to participate with the first choice. It involves mentor
who is a senior worker who sponsors and facilitates a less experienced worker. Command
can be taught online as it builds trust in the working environment of the business.

Challenges facing to authority can be based on features attributed as leaders are sensible,
ongoing, have strong verbal skills, understanding, are aggressive and industrious. Actually
they perceive or project the looks to be a innovator. Many customers are seeking to
understand - and many people are writing about the concept and methods of leadership. The
idea of leadership is pertinent to any facet of ensuring effectiveness in organizations and in
controlling change.

1. Failure to Communicate

The complexity of today's business world requires CEOs to be able to communicate on

multiple levels. For example, you have to create the vision and persuade your team to make
it their vision too. You have to connect on an individual level and inspire people to move from
"I" to "we." And you have to build trust by ensuring your verbal communication and your
non-verbal actions reinforce each other.
Effective communication is so hard because it takes commitment. You have to make
effectivecommunication a priority and that takes discipline, consistency, clarity of message,
and a willingness to keep at it day after day.
By putting a structured communication system in place that connects at the right level with
all of your stakeholders, you can dramatically improve your effectiveness as a leader and
drive faster top and bottom line growth.

2. Lack of Accountability
If you notice that the big things are not getting done and good ideas fall through the cracks,
you lack accountability. We all need scoreboards that track the results we want. Most CEOS
know this, but putting this system into place requires self-discipline and focus. Build the
systems you need to support accountability and don't get distracted until they are a part of
your operations.

3. Fear of Firing
Even the best leaders worry about firing a member of their team if the team has become a
close-knit family. When was the last time you fired someone who has been with you so long
you know their family?

Unfortunately, we often find that the people who got you here will not get you there because
the company has outgrown the person's ability to keep up. As the company grows, so must
your team members and as a leader, you have to make the tough decisions to continually
upgrade your talent. People want to work for winning organizations and keeping a team
member around who's not pulling their weight just drags everybody else down with them.

4. Lack of Alignment
Imagine being a fish trying to swim upstream. It's tough to make progress. That's what
happens when your key players are not all on the same page. Sure, you'll have disagreements
but as the leader, you have to make sure that when the decision is made, your team is behind
it and they move forward in unity to make it happen. And simple things like making sure your
compensation systems are lined up to reward the desired behavior are critical. Once you
align your team's incentives to those of the company, magic starts to happen.

5. Lack of Clear Vision

What is your company's vision? If I walk into your building and ask three people, can they
articulate yourvision? Can they describe what the vision means to them and how the work
they do supports the vision and brings meaning to their work? And your vision can't just be
a fluff statement that sounds like a bunch of corporate speak. Real leaders create a
compelling vision for the future that ignites a fire under their team and keeps them working
hard and doing the right thing even when nobody's looking. Millennials, in particular, want
to believe that the work they do goes beyond just a paycheck and contributes to the greater
good. Does your vision inspire this greatness?

6. Poor Execution
There are three reasons leaders fail to execute. First, they don't follow their own plan with
discipline. Second, they fail to keep score on what matters. Third, they don't have the right
people in the right jobs to make it happen. If you can assemble these three puzzle pieces, you
can put your company on track to win.
7. A Company Culture by Default
We all envy Google, Facebook, and Zappos for their dazzling company cultures. But what we
forget is that the creator of culture is the CEO, not HR or anyone else. Did you create your
culture by design or did it just happen by default? When you consciously think about and
design your culture to foster your desired behavior, your culture becomes a competitive
advantage that attracts top talent and drives massive results.
Leadership is a skill you can learn. By avoiding these seven common leadership problems,
you can lead
your team and your company to greatness.

ORGANIZATIONAL CHANGE-PROCESS AND

RESISTANCE
Process of Organisational Change

Major changes in an organisation are generally pre-planned. According to Thomas and

Bennis, "Planned Change is the deliberate design and implementation of a structural
innovation, a new policy or goal, or a change in operating philosophy, climate, or style."
According to S.P. Robbins, planned change refers to those "Change activities that are
intentional and goal oriented." These types of changes are generally proactive (ie., based on
anticipation of liklihood of a certain event) and purposeful. In a planned change, the following
sequental steps are taken-

(i) To Identify the Need for Change- The process of planned change begins with the
identification of the need for change. If the organisation is failing in achieving its targets or
its profits are declining or its cost of operations are increasing or the cases of accidents or
labour turnover are going up or the morale of the staff is coming down or the labour unrest
is grooming, it may necessiate some changes. Similarly, for tackling the competition more
effectively or for taking advantages of latest technology or for meeting the preferences of
customers in a better way or for implementing major organisational expansion scheme,
changes might become necessary. In order to have a successful planned change, the
identification of the need for change must be done precisely and properly otherwise it may
go in the wrong direction. For identifying the change-need, there may be an open discussion
with the concerned persons and parties and the available reports, data and other pieces of
information may also be minutely studied.
(ii) To Analyse the Causes of the Problem- After identifying the need for change, (ie., the
problem), the second step is to trace out the reasons for the emergence of the problem-i.e.,
why the problem arose because of which the change is required? For example, if cost of
operations is going up, why is it so? Similarly, if the demand has come down or labour unrest
has increased, why it has so happened? The reasons might be due to the internal or external
factors. For example, the cost of production might be increasing because of the use of
absolete machines or poor supervision or inefficient staff or over-stocking of raw materials
or change in Government policies. Identification of precise reasons for the poor state of
affairs is a must for giving a right direction to the planned change. Moreover, it should also
be ascertained whether the need for such change was felt by the management in the past
also (and if yes then what was done) and whether any other similar organization has
undertaken such change in the recent past (and if yes then how and with what results).
Similarly, the scope of impact of the possible change should also be understood-i.e., whether
it will affect the whole organisation or a part of the organisation. It will facilitate to gauge the
possible level of resistance in the proposed change, if it is implemented.
(iii) To Develop Possible Alternatives- After focussing in on the reasons for the problem
necessiating change, all possible alternatives are to be developed which may help to solve
the problem. For example, if the production cost has increased because of the use of old
machines, then these machines will have to be replaced. For this purpose, the various
alternative machines with its comprehensive details will have to be collected. Such
alternatives are to be seriously traced out because if any alternative is left out due to
carelessness, it may lead to a wrong decision leading to unnecessary complications at the
later stage. However, irrelevant or non-practical alternatives should be weeded out in the
beginning itself to avoid uncalled for confusion at a later stage. For this purpose, persons with
adequate expertise and experience only should be deployed The services of external experts
may also be availed if it is so needed.

(iv) To Select the Best Alternative-Every alternative has its own advantages and
disadvantages. As such every alternative developed above should be critically examined
through a thorough evaluative process. At the end, that alternative should be selected which
has maximum advantages and minimum disadvantages. Before, arriving on the best possible
alternative, the concerned parties should also be consulted so that unnecessary or
unexpected resistance from them may be avoided at the time of its implementation.
Generally, that alternative should not be selected which may create large scale resistance
amongst the staff.

(v) To Implement the Selected Alternative-After selecting the best alternative, it has to be
implemented in the best possible way. It has to be remembered that even the best
alternative may prove to be the worst alternative if it is not scientifically implemented For
this purpose, the co-operation of all should be obtained to the extent possible and the
method, place and time etc. of the implementation should be decided on concensous basis.
An arrangement of rational solution to the problems arising during the implementation
stage, makes the change acceptable more comfortabely. In case there is some reasonable
demand for minor modifications from the side of the staff, that should be accepted without
making it a presitige issue. It has a soothing effect in the long run.
Every change has some favourable as well as unfavourable effect on those whe are affected
by it. A change is acceptable to an individual if it is expected to bring morefavours than non-
favours otherwise it is bound to be opposed. As such before implementing the change, the
staff should be clearly explained as to how it is going to benefit the organisation and through
that how it will bring additional benefits to the staff. Thus by creating positive attitude in the
staff and by providing scientific training, if needed, the staff resistance may be minimised.
Moreover, by rewarding the acceptors and punishing the extreme non-acceptors, promptly
and profoundly, the change- implementation-programme can be made more easily
acceptable.

(vi) To Get Feedback-Once the change programme has been fully implemented. it is checked
out whether or not it has been able to achieve the desired objectives. If something is still to
be achieved, steps are taken to make necessary changes for the achievement of the left over
objectives. This process continues till the objectives are totally achieved.

Some times, during the implementation of the change programme, unexpected negative
results might start appearing. In that case, the programme might have to be quickly modified
or postponed or even cancelled in order to avoid avoidable losses to the organisation in
future.

Resistance to Change

Different employees react to an organisational change differently-some support it, some

oppose it and the rest remain neutral. In fact, the reaction to a change basically depends
upon an individual's perception to the personal benefits which could be derived by him
through such a change. If an employee perceives that a change is going to benefit him, he
decides to support it otherwise he opposes it. Some times an individual fails to properly
percive the impact of a change on him or he percieves it neither beneficial nor
disadvantageous, thus he decides to remain indifferent or neutral.

Organisational changes generally disturb the routine of the employees and compel them to
change their attitudes or working styles or habits or relationships with superiors, peers and
subordinates. These changes obviously are painful and if these are not sufficiently
compensated by the management, they start opposing them. The more the adverse intensity
of the change, the more these are resisted. Thus, all the unfavourable changes are not
opposed on equal footing by the employees.

The basic purpose behind the resistance to a change is to get it cancelled. If it is not feasible,
they attempt to get it partially modified. Some times they succeed in getting the change
suspended for the time being. In brief, the main moto behind resistance to change is to make
an attempt to maintain status quo or to let it be as near to status quo as possible.

Reasons of Resistance to Change

The resistance to a change can be made at the following three levels
1. Resistance at Individual Level- The genisis of resistance is at individual level. The reasons
behind resistance to change at individual level can be classified in the following three
categories-
1. Economic Reasons-The main purpose behind serving an organisationis to earn money. If a
change adversely affects the earning capacity of an individual, he naturally resists it to the
best of his ability. The main economic reasons might be as below-
(i) Fear of Unemployment-If a new technology is to be adopted by the organisation, the
employees may start opposing it fearing that it may lead to reduction in the existing staff
strength.
(ii) Fear of Decline in Financial Incentives-If employees perceive that the proposed change
may bring down the existing quantum of financial incentives (e.g., curtailing overtime
allowance or abolishing Hard Station Allowance), they naturally resist any such move.
(iii) Fear of Reduction in Promotional Avenues-If the planned change is expected to bring
down the promotional opportunities due to restructuring of positions, the employees oppose
it.
(iv) Need for Extra Knowledge & Skill-Due to adoption of new technology or large scale
reshuffling of the staff, the employees may need extra knowledge and skill to discharge their
duties properly. This may also need fresh training. Without such training their annual
increments might be stopped or they might be penalised in some other way. Obviously,
employees do not like it and make protests.
2. Psychological Reasons- Besides monetary needs, the employees have their own egoestic
and self-actualisation needs. When the staff perceives that the proposed change might hurt
the fulfillment of their psychological needs, they decide to resist it. Such psychological
reasons are explained below-
(i) Attack on Ego-If employees feel that the planned change might hurt their ego (e.g.,
decrease in the existing authority or withdrawing of symbolic rewards), they oppose it.
(ii) Fear of Boredom and Monotony-When the management proposes to emphasise on
automation or mechanisation of operations, the staff resist it. They perecive it as a step which
may lower down their status and bring boredom and monotony in their work.
(iii) Attachment to Old Habits-Changes generally compel the staff to develop new habits in
line with the new requirements. This pinches them mentally. So, they try to get rid of such
changes.
(iv) Harder Work-When the employees feel that the proposed changes may mean more work
with no extra remuneration or more risk without matching rewards, they do not accept it
readily.
(v) Fear of Unknown-Some times the staff fail to properly understand the implications of the
new changes. They develop the fear of unknown-i.e., something bad is going to happen in
the organisation though not very clear as to what will actually happen. Thus they prefer to
resist such plan.

3. Social Reasons-Man is a social animal. He tries to meet his social needs through
interactions with other human beings in the organisation. If the proposed changes are
perceived as hurdles in meeting the social needs, these are resisted. Some social reasons are
discussed below-
(i) Breaking up of Old Social Relations-If the planned changes involve major changes in duties
and work place, the staff opposes it because it means breaking up of old relationships with
the superiors, peers and staff.
(ii) New Social Relations Being Lesser Attractive- When the employees perceive that the
proposed new social relations will be lesser attractive as compared to the existing ones, they
start opposing it. It may so happen when they are transferred to an area whose language,
religion, food habits and customs etc. are quite different to those of the employees
concerned.
(iii) Attack on Social Status-If the planned change is likely to downgrade the status of the
employee (e.g., transfer from finance department to store), he opposes it to the extent
possible. Similarly, if he finds that the proposed change is going to change the fortune of his
subordinate, he takes it as an attack on his social status as such begins opposition to any such
move.
(iv) No Consultation Before Change- When the employees are not consulted before finalising
the change programme or their views are not given due attention, they feel neglected and
thus oppose it.

II. Resistance at Group Level-

The employees in an organisation work in small formal as well as informal groups. These
groups have their own interests and they also like to protect the interests of their individual
members. When any planned change is perceived by the group as deterrant to its interest, it
opposes such scheme. It is a well known fact that group resistance is more powerful than the
individual resistance.

The extent to which a group will resist the proposed plan of change depends on a number of
factors as mentioned below-
(i) To what extent the change is likely to adversely affect the fulfillment of the economic,
psychological and social needs of the group members?
(ii) To what extent the group is cohesive and the members have attachment with the group?
(iii) To what extent the group is willing to protect the interests of its members? It is a matter
relating to the attitude and initiative to be taken by the group leader.
(iv) To what extent the members of the group are willing to oppose unitedly and make
sacrifices for the group?
(v) What is the perceived probability of the change to be modified or cancelled altogether?
(vi) What has been the results of such resistance in the past?
(vii) What strategy is adopted by the management to suppress opposition to change? It is
pertinent to remember that if all the members of a group oppose unitedly and

strongly, such opposition may force the management to think again on the change. However,
half-hearted attempts by some members on scattered basis may not be able to influence the
management. Moreover, if a number of groups unite together, the resistance is bound to be
more effective. Personal qualities of the group leaders, injustice involved in the change,
extent to which the interests of the group members are affected- factors like these also play
their role in creating and sustaining group opposition to a change in an organisation.

III. Resistance at Organisational Level- Some times an organisation itself

resists change though the situation otherwise needs change. Especially the old and
traditional organisations do not like to undertake major changes under the theory that Old is
gold-i.e., it is the old working environment of the organisation which has brought the success
in the past as such there is no need for change. This corporate disease (i.e., attitude)
ultimately proves to be the root cause of the future failure of the organisation. Sumantra
Ghoshal, the famous Management Guru, has rightly termed this tendency as "The Failure of
Success". According to him, "Nothing fails like success, nothing fails as spectacularly as
spectacular success- companies have been victims of corporate disease. It is called "The
Failure of Success. Strategies, values, resources and processes of the most successful
companies have in the past ossified into clitches, dogmas, millstones, and routines."

The main reasons behind the reluctancy of an organisation to plan a change are explained
below-

(i) Resource Constrains- If a change requires huge capital investment and the
organisation is not having sufficient funds with it, it will obviously not like to take
up such change. For example, if a new technology is to be adopted and the
employees also need training for its use, the management, under resource
constraint, may go on postponing such scheme under one or other pretext.
(ii) Organisational Climate- When an organisational climate is orthodox and prefer to
stick with the old system, procedures, methods, rules and roles etc., in such a
situation when the matter relating to change is brought for discussion, it is widely
opposed by the management.
(iii) Fear of Reduction in Authority -Decisions relating to a planned change are taken
by the top management. If it feels that the proposed changes might curtail its
authority, such move is tried to be stalled.
(iv) Fear of Large-Scale Resistance- When the top management perceives that
theproposed change plan may lead to widespread opposition from the staff, such
scheme is postponed and may not be implemented at all.
(v) Organisational Agreements- When the organisation has entered an
agreement.with the staff or some other organisation for not making any change in
a specific area for certain period, the top management does not like to take up any
change before the expiry of the dead line so agreed upon.

ORGANIZATIONAL CULTURE LAYERS AND

CHARACTERISTICS
Organizational Culture Layers

Often shown as a pyramid, Schein’s original model was presented as three different
layers. Cultural concepts can move between these two layers over time and are
associated with different levels of awareness within the organization.

The three levels:

1. Artifacts: These are the “visible” symbols of the culture. It can include
anything from clothing styles to posters on the wall to the volume of speech.
Even if not understood, the artifacts that last are typically deeply tied to the
underlying culture.
2. Values: These are the “espoused” values – often found on company websites
and also the area which has the greatest chance of being disconnected from
reality.
3. Basic Assumptions: These are the beliefs that people use to make day-to-day
decisions within an organization. For example, an assumption may be that “it
is best to speak up when I have a good idea.” Judging the assumptions and
trade-offs people make on a day-to-day basis is often the quickest way to
understand the “real” culture.
One of the biggest traps when analyzing a company is to look at the “artifacts” and
make assumptions about the culture. You may walk into an office that has ping pong
and foosball tables and think the culture embraces having fun during the workday. If
you spent a week at the company and realize that everyone assumes you should wait
until 6 pm to play any games, you’d realize the culture is something a bit different than
your initial assessment.

ORGANIZATIONAL CULTURE CHARACTERISTICS

Some of the important features of organisational culture are given below-
(i) Organisational culture is the reflection of an organisation's core values, beliefs and norms.
(ii) Organisational culture is developed slowly and with consistency in the long run. It
enhances organisational commitment and increases the consistency of employees
behaviour.
(iii) Organisational culture differs from one organisation to another. Similarly, it may differ
from one place (country) to another place (country).
(iv) Organisational culture may be of different types, e.g., dominant culture and subcultures,
strong culture and weak culture, authoritarian culture and participative culture, mechanical
culture or organic culture etc.
(v) Organisational culture is reinforced through such means as organisational heroes, stories,
ceremonies, rites, rituals, material symbols and language etc.
(vi) Organisational culture may have positive as well as negative impact on the organisation.
(vii) Though Organisational culture has the tendency to remain almost static, it may be
changed gradually in the long span, if so required due to change in internal or external
environment. (viii) Organisational culture is different from job satisfaction. The former is of
descriptive
(ix) Though organisational culture and organisational climate are many times used nature
whereas job satisfaction is of evaluative nature. interchangeably, there is difference between
them. The former reflects long term work environment and is more comprehensive whereas
the organisational climate is related to short term work environment of the organisation and
its scope is narrower as compared to culture.

HOFSTEDE’S CULTURAL
DIMENSIONS.
Hofstede Model of Organization Culture
Organization culture refers to the various ideologies, beliefs and practices of an organization which
make it different from others. The culture of any workplace decides how employees would behave with
each other or with the external parties and also decide their involvement in productive tasks.

Hofstede also known as Geert Hofstede proposed that national and regional factors contribute to the
culture of the organization and eventually influence the behaviour of employees in the organization.

According to Hofsteide there are majorly five factors which influence the culture of the
workplace.

1. Power Distance
Organization A
The power was distributed equally among all irrespective of
their designations. Every individual regardless of his level in the
hierarchy enjoyed equal benefits and rights.
Organization B
In organization B the superiors enjoyed a special treatment
from the management and the team leaders were delegated
more responsibilities as compared to the team members.
Power distance index refers to the differences in the work
culture as per the power delegated to the employees. There are
 some organizations which believe in appointing team leaders
or team managers who are responsible for their respective
teams and have the challenge of extracting the best out of the
members. The team members also have to respect their team
leaders and work as per their orders and advice.
However in some organizations, every employee is accountable
for his own performance. No special person is assigned to take
charge of the employees. The individuals are answerable to
none except for themselves. Every employee gets an equal
treatment from the management and has to take ownership of
his /her own work.
2. Masculinity vs. Feminity
This refers to the effect of differences in male and female
values on the culture of the organization. Organizations where
male employees dominate their female counterparts will follow
different policies as compared to organizations where females
have a major say in the decision making process of the
organization. Male employees would be more aggressive as
compared to the females who would be more caring and
softhearted. The responsibilities also vary as per the sex of the
employees. The female employees are never assigned
something which requires late sittings or frequent travellings.

3. Individualism
There are some organizations which strongly rely on team
work. Here individuals with a common interest come together
and work in unison as a team. These organizations believe that
the output is always more when individuals exchange their
ideas, discuss things among themselves to come out with
innovative ideas. In such a scenario the employees share a
healthy relationship and take each other’s help when required.
 However certain organizations follow a culture where
individuals do not believe in working as a single unit and prefer
working individually.

4. Uncertainty Avoidance Index

Uncertainty avoidance index refers to a culture where
employees know how to respond to unusual and unforeseen
circumstances. It deals with the tolerance level of the
employees in both comfortable and uncomfortable situations.
Organizations try hard to avoid such situations and also
prepare the employees to adjust well in all conditions.

5. Long Term Orientation

There are some organizations which focus on long term
relationship with the employees. In such organizations people
have a steady approach and strive hard to live up to the
expectations of the management. Employees get attached to
the organization and do not look at short term objectives. On
the contrary, some organizations have employees who are
more concerned with their position and image. They follow a
culture where people move on in a short span of time and
nothing is done to retain them. The employees are concerned
only with their profits and targets and leave as and when they
get a better opportunity.

STRESS-NATURE AND CAUSES, AND MAJOR

EFFECTS
Meaning of Stress

In simple words, stress is a condition that forces a person to deviate

from his normal functioning. It is a person's reaction to a disturbing
factor in the environment.

As per Oxford Dictionary, stress means "physical or mental strain."

Moorhead & Griffin have defined, "Stress as a person's adaptive
response to a stimulus that places excessive psychological or physical
demand on him or her." According to Ivancevich and Matterson, "Stress
is an adaptive response, mediated by individual characteristics and/or
psycological processes, that is a consequence of any external action,
situation or event that places special physical and/or psychological
demands upon a person."

According to Beehr and Newman, "Job stress is a condition arising from

the interaction of people and their jobs and characterised by changes
within people that force them to deviate from their normal
functioning.""
As per Fred Luthans, "Stress is defined as an adaptive response to an external
situation that results in physical, psychological and/or behavioural deviations for
organisational participants."
According to R.S. Schuler, "Stress is a dynamic condition in which an individual is
confronted with an opportunity, constraint or demand related to what he or she
desires and for which the outcome is perceived to be both uncertain and
important."
On the basis of the above definitions, it can be said that stress is an adaptive
response to an external action, situation or event which leads to physiological,
psychological or behavioural deviations in a person from his normal functioning.

Nature of Stress
In order to understand the concept of stress, its following features are worth
mentioning-
(1) Stress is caused because of interaction with any stimuli (action, situation or
event etc.) in the environment.

(ii) A stimuli causing stress is known as stressor. Such stressors may be of

individual, group, organisational or extra-organisational nature.
(iii) Stress leads to deviation from routine working in the form of physiological,
psychological or behavioural change in a person.
 (iv) Stress is not always harmful. A small degree of stress, in fact, is beneficial in
many ways. However, when the stress crosses the tolerable limit (i.e., optimum
level), it becomes problematic for a person.
(v) The stress bearing capacity differs from person to person. A person having
extrovert personality or positive personality or type B personality or proactive
personality is likely to have lesser stress as compared to a person having introvert
personality or negative personality or type A personality or reactive personality.
(vi) A person of rigid and egoic nature is likely to have higher chances of stress as
compared to a person of flexible and humble nature. The latter may have lesser
stress simply because he is more capable of changing himself according to the
demand of the situation-i.e., if you can not change the situation change yourself
(vii) Time also affects stress-in good times one has lesser stress! Moreover, with
the passage of time (and experience) the stress bearing capacity also undergoes
change.
(viii) Stress may be positive or negative, mild or severe, short term or long term
depending upon the perceptive nature of the person, duration of interaction with
the stressor and the powerfulness of the stressor.
(ix) Stress is caused only when the outcome is uncertain and it is important for
the individual. If the outcome of an action, event or situation is well-known, it
may not cause stress. Similarly, if the outcome is not important for a person, it
will not lead to a stress. Thus, the more the uncertainty and the importance of an
outcome, the more will be the chances of higher stress.
(x) Stress is different from anxiety or nervous tension. Anxiety and nervous
tension are basically of psychological nature and generally generated at
unconscious level. whereas stress is of psychological as well as of physiological
nature and generally generated at unconscious level. In fact, it is stress which
generally causes anxiety or nervous tension and not the vice-versa.

(xi) Stress is a life time friend or foe of an individual-it can not be isolated during
the life span of a person but can surely be minimised to the maximum extent
through different remedial measures.

Causes of Stress
Stress', like shadow, always remains with a human being-he may like or dislike
The term "Stress" was used for the first time by Hans Selye, popularly known as
'Father of Stress Studies: He has tried to explain the genesis of stress in human
body through 'General Adaptation Syndrome' (GAS). According to him, the GAS
has three stages-Alarm, Resistance and Exhaustion. As soon as any stressor enters
the body, its internal body system automatically becomes alert and starts
preparation to fight with the stressor in order to get rid of it-the heart pumps
blood with more pressure to the relevant parts of the body, the glands in the
brain secret higher level of harmones to effectively face the new situation,
breathing increases, pupils expand, muscles strengthen and the senses become
more sensitive. With all these preparations, the second phase begins- the body
tries to resist the stress and throw it out. If it succeeds, the person becomes
normal. However, in the long run, failure to win the stressor makes the body tired
and it gives up the fight. In this third stage of exhaustion, the body passes through
physical and psychological strain and may feel weakness, depression or
headache, loneliness, high or low blood pressure, abdominal or intestinal
complications (such as hyperacidity, colitis, cronic conspitation or gastric
problems etc.). Depending upon the severeness and the streching span of the
stressor, if remedial measures are not timely taken, it may even lead to the end
of life itself. Moreover, during the period of stress, particularly stress of serious
nature, the body becomes more prone to suffer from other stresses because its
internal system is already engaged in fighting with a particular stressor as such it
fails to pay proper attention towards other unrelated stressors entering the body.
But he can not totally do away with stress. Then the question arises why stress is
caused or what are the sources or forces or conditions which generate stress? In
order to have a clear and simpler understanding of the causes or sources or forces
of stress, the stressors (i.e., the factors or sources or conditions causing stress)
can be classified and explained as below-

I. Extra-Organisational stressors
are the factors outside the organisation which can cause stress to the people
working in the organisation. These factors are of macro-Nature on which
management of the organisation has no control. Some such factors are as
follows-

1. Economic Factors-The adverse economic and financial condition of a

country may adversely affect the financial functioning of an organisation. The
recent sub-prime rate crisis of America is a burning example to understand the
impact of poor financial management on institutions. It may lead to downsizing
the staff strength, delay in the payment of salaries or reduction in pay or other
perquisities it obviously will create stress in the staff, especially in the private
sector establishments.
 2. Political Factors-Political condition of a country is another probable
stressor. The frequent changes in Governments (as has been observed in
Nepal) or weak Central Government (as in Pakistan) or Dictator-type of
Governance (as was in India during emergency period in 1975) generates
unstable environment in the country and makes everybody stressful. Political
turmoils seen recently in Sri Lanka, Myanmar, Libiya or Thialand further
highlight the stressful conditions of the citizens in those countries.
3. Technological Factors- With the passage of time, the role of technology is
growing day by day-there is more and more emphasis on automation,
mechanisation and computerisation. The new innovations are bringing new
methods, machines and materials for use in the organisations. It means that
the staff has to make extra efforts to learn the new things and sharpen their
skills. Those who fail to do so may lose their existing jobs or importance in the
organisation. This type of situation creates stress in the employees.
4. Sociological Factors-A society consists of groups and sub-groups formed on
such bases as caste, sex, region, religion, language or economic condition etc.
With increasing gap between rich and poor because of a number of factors,
the bitterness between the different castes (as has been observed recently
between Forward and Other Backward Castes), different regions (as in the case
of Mumbai where North- Indians were attacked), different religions (as
evidenced through Hindu-Muslim riots), different linguistic areas (as observed
in some states where use of Hindi language is bitterly opposed) or the two
sexes (as is evidenced through large number of attacks on women workers
especially in big cities) has gone up. These changes being observed in the
society are creating stress in the Organisations also because the staff therein
have become more worried to protect their personal interests.
5. Others-The increasing acts of terrorism, the decreasing moral and ethical
values, the growing rate of corruption, the faster felt side-effects of global
economy, the increasing air, water and noise pollution in the environment, the
growing number of natural clamities (e.g., earthquakes, droughts, floods etc)
and the rising global warming further squeezing the already deplecting natural
resources etc. are some other extra organisational factors which can directly
or indirectly make the employees feel more stress.

ii. Organisational Stressors-

Organisational stressors are the factors within the organisation which can
bring stress to the employees. These are the factors which basically are
influenced by the management itself. A brief outline of such factors is given
below-
1. Job Related Factors- These are the factors which are related with the
specific job an employee performs in the organisation. Following are such
factors capable of inducing stress in the employees when they are doing their
jobs-
(i) the nature of appointment on the job may cause stress. The appointment
may be ad-hoc (to be terminated any time), temporary (likely to continue for
a short span of a few months or years) or permanent (to continue upto the age
of retirement). Thus, an employee working on ad-hoc basis may have higher
level of stress as compared to an employee posted on permanent basis.
Moreover, an employee working on ad- hoc basis but having the requisite
qualifications (of knowledge, skills and experience etc.) of the job may have
lesser stress as compared to an employee on ad-hoc basis without having the
required qualifications of the job.
(ii) The risk involved in performing the job affects the level of stress. Some
jobs are more risky (like, the job of security forces or fire fighters or disposal
of bombs etc.) as compared to others (like, the job of teaching, training or
marketing etc.). The persons performing the former type of jobs are generally
more stressful as compared to the latter who do lesser risky jobs.
(iii) The time spent on the job may also cause stress. Some jobs require more
time to be spent on the job, many times it means round the clock duty (like,
IPS or IAS Officers or top brass of organisations) with the result that little time
is left for leisure or for family members. It obviously generates more stress in
the persons performing such jobs as compared to those who have a fixed
duration of duty hours and are comparatively free thereafter (e.g., office staff
or class IV staff etc.).
(iv) The working condition of the job may also cause stress. Jobs where there
is more air, water or noise pollution (like, jobs in coal mines, leather or
chemical factories) may lead to higher level of stress. Similarly, poor lighting,
lack of privacy, improper cooling or heating provisions, shortage of sitting
space or poor quality of canteen facility at the work place may create stress.
Furthermore, too much interaction or too little interaction with others in the
office or the requirement of working in the open under adverse climatic
conditions may also cause stress.
2. Role related Factors-A person may be expected to perform different roles
in the organisation. These expected behaviours may also create stress as
explained hereunder-
(i) Role Ambiguity-Sometimes the role which an employee is expected to
perform is ambiguous-i.e., uncertain, unclear, imprecise, indefinite or vague-
to him. Since the employee is not clear with regard to his role, he comes under
stress fearing poor performance or unexpected complication in future. For
example, a student going for a summer training without having clear guidelines
from his institute may wonder what he should do or how he should complete
the training. Similarly, a new employee, due to lack of proper briefing, may
have the problem of role ambiguity.
(ii) Role Conflict-Sometimes an employee may be expected to perform some
roles which might be of conflicting nature-i.e., opposite to each other or of
contradictory or contrast or incompatible nature. Expecting a personnel
manager to hire best candidate without lucrative package, a production
manager to meet the production target without allowing overtime, a
marketing manager to clinch a sale-deed without giving sufficient authority or
a security officer to control the indisciplined mob of striking employees
without use of force-all are the examples of role conflicts Under such
situations, since the employee is expected to perform two functions of
opposite nature, he feels stress expecting poor results.
Role Conflicts may be of two types-
(A) Intra-Role Conflict- It occurs when there is contrast in the same role. For
example, expecting a teacher to teach effectively without providing sufficient
teaching aids in the class-room.
(B) Inter-Role Conflict- It happens when an employee is expected to perform
two or more roles simultaneously which are of contradictory nature. For
example, expecting the Chief Proctor of an University not to miss a single class
but at the same time ensure trouble-free peaceful environment in the campus.
(iii) Role Overload- Some times an employee is given too many roles to
perform simultaneously which becomes very difficult for him to perform
effectively. For example, if a teacher in the college is a warden of a hostel,
student advisor of acies, are department, programme officer of National
Service Scheme, training & placement becom incharge of the college and
chairman of the cultural activities, he is probably having back pr role overload.
The desire of such teacher to excel in every role may land him intodling pr
stress. Such problem is generally faced by the sincere staff of the organisation-
the management continues to assign more than normal roles to them in the
hope of better delivery of results.
3. Relationship Related Factors- A man is a social animal. He desires to The
interact with others and develop friendly relationships with them. Whenever
it does not re happen, it becomes a cause of stress for him. The following
explanation further clarifies the situation-
(i) Relationship With Superior- The boss always matters for a subordinate-he
can make the subordinate supreme or vice-versa at the work place. He can
turn the organisational life of the subordinate from a heaven to a hell or vice-
versa. If the boss adopts autocratic style (i.e., he does not believe in
transparency in operations, does not provide sufficient opportunity in decision
making, is a blind follower of rules and regulations and perceives himself
always right and mighty), the subordinate may find it difficult to maintain co-
ordial relationship with him. This, in turn, may bring stress for him. However,
even in case of democratic or free-rein style of leadership, there may be
situations of stress for a subordinate when due to one or other reason the
relationship with the boss declines from sweet to soar level. So, poor
relationship with the superior may prove to be a strong source of stress for a
subordinate.
(ii) Relationship with Peers- Besides the boss, the relationship with peers (i.e.,
the persons of equal rank) also matters for a person. If the peers are of friendly
and helpful nature, there may not be much problem. However, if the peers are
non- cooperative and create complications, a person is bound to have stress.
(iii) Relationship With Subordinates- An executive gets some of his work done
through his subordinates by delegating some part of his authority. If the
executive fails to develop good rapport with his subordinates, his overall
performance may be adversly affected. Moreover, the subordinates may
create a number of other problems for him (through writing complaints against
him, delaying the disposal of files or adopting 'work-to-rule' approach etc.).
This situation, naturally, will lead to stressful life for the executive.
4. Organisational Policies- Policies refer to guidelines for actions. Thus, every
organisation frames policies for different managerial areas to ensure its
smooth functioning and trouble-free environment. However, when the
policies are vague, incomplete, unfair or frequently changed to suit vested
interests, they become stressors. Similarly, their biased interpretation or tilt-
oriented execution to favour a particular person or group of persons naturally
creates stress in those whose interests are adversely affected. The unscientific
recruitment, selection, placement or induction, the biased transfers or
promotions, the irrational job analysis or performance evaluation, the unfair
incentive package, the absolete rules and regulations etc. all are the examples
of faulty organisational policies which breed stress in the brains of the staff.
5. Organisational Processes-When organisational processes, like
organisational policies, are not clear and complete or they are not scientifically
and fairly executed, they become a source of stress for the staff. For example,
poor planning process, poor feedback process, poor control process, poor
communication process or poor grievance handling process etc. may prove
stress creators.
6. Organisation's Life Cycle-An organisation, like a human being, takes birth,
matures in due course of time and eventually its life comes to an end after a
certain stage. The stressors are minimum in the middle span of the
organisation's life when things are comparatively cool, calm and stable.
However, in the beginning as well as the end part of the organisation's life have
more troubles because of various uncertainties and complications. As such,
the staff in both these situations may have more stressors.

III. Group Stressors-

A group is a small part of organisation. Generally two or more groups make an
organisation.' Group Stressors are those factors within the group which create
stress for its members. Some of the important group stressors are given below-
1. Pressure for Conformity-A group puts pressure on its members to conform
to its norms of behaviour and functioning. Any member not falling in line with
such norms is identified and isolated promptly by the group which puts him in
stress. This stress will be more painful if the member has a high level of
attachment with the group.
2. Group Conflicts- Sometimes the members of the group clash with each
other on one or other issue. Under such situation, the members so involved in
such conflict become stressful. Such conflicts may be of intra-group or inter-
group nature.
3. Goals Conflicts- When there is contradiction between the goals of the group
and the goals of the organisation (or the individual), it will create stress. For
example, a group has organised a get-together party, the boss asks a member
of the group to immediately report to the office-it will create stress for the
member. Similarly, when the group members are going on a picnic but the
family of a particular member do not favour it, the concerned member will
found himself in stress. Thus, greater the deviation between group goals and
other goals, higher will be the possibility of stress,
4. Non-fulfillment of Individual's Needs- A person joins a particular group for
fulfilling his own needs. If he founds at any stage that such needs are not being
fulfilled by the group, he becomes stressful and may leave the group if the
stalemate continues. For example, if John finds that most of the members of
his group are of egoestic nature because of which his own egoestic needs
remain unfulfilled, he may become stressful.

IV. Individual Stressors-

A significant part of a person's life is spent at non-work places or at home with
or without family members. As such the developments taking place at such
places may also cause stress to him. Moreover, the personal characteristics of
the person also determine the impact of probable stressors on him. So, the
non-work stressors or personal stressors (i.e., the factors causing stress not
directly related with the job) may be termed as individual stressors.
Some of the important individual stressors are described below-
1. Changes in Life Cycle-
With the passage of age, the stress level of a person increases. A child has the
least stress but as he grows, his responsibilities rise and with rising
responsibilities, his stress level also increases. The changes in life cycle may be
natural or expected (becoming older, getting married or sending child to out-
station college or son leaving the parents for job etc.) or sudden or unexpected
(meeting an accident, divorce or sudden death of a family member etc.). The
latter type of changes creates higher stress as compared to natural changes. It
is because the person is not pre-prepared to bear the stress caused due to
sudden change. Moreover, sever the suddenance and importance of the
change, higher will be the level of stress.
2. Changes in Career-With the advancement of age, changes in career may also
take place. It may be in the form of resigning the old job and joining a new
company or getting a new assignment at a new place or starting a new business
after leaving service and so on. It affects the daily life of the person and his
family which in return causes stress to them. It so happens because such
changes demand re-adjustment in the new environment and it requires
sacrifice which is painful. For example, when an employee joins a new job at a
new place, he loses his old friends circle, he might have to trace out a new
rented house, extra a new school for his child's education and so on.
Sometimes, the new place of work might be hard station where family may not
be transferred. All these adversaries act as stressors. Furthermore, if a person
fails to grab a job for him at the right time or he loses a job in the middle of his
career- he is bound to have stress.
3. Pace of Life- It is said that 80% of an organisation's work is done by 20%
persons and the rest 20% work is performed by 80% of the staff. Such '20% of
the staff has a very busy schedule and they have little time to rest. Due to
higher responsibilities, they are unknowingly trapped by stress. Similarly, some
jobs, as stated earlier, have in-built hectic life (like those of police personnel or
salesmen or doctors etc.) wherein higher stress is difficult to avoid. Moreover,
some persons do not know to say 'no' to additional assignments given to them.
The net result is that they are overburdened with work and helplessly continue
to face stress.
4. Economic Condition- Money is the pivot around which every individual
rotates. Thus, if due to any reason (e.g., heavy expenditure on sudden illness,
higher expenditure on non-productive items, loss of job or poor managerial
ability to save money etc.), the economic condition of a person deteriorates, it
becomes a major cause of stress for him and his family.

5. Thinking Style-Some persons have positive thinking-i.e., they try to find out
soothing aspects in any event (e.g., even after meeting accident, they remain
calm thinking that they have at least survived!). However, many more persons
have negative thinking- i.e., they try to find out disturbing aspects in every
event (e.g., even after getting promotion, they will think that it has come too
late or why others too were promoted!). The persons having negative thinking,
obviously unknowingly, find themselves under more stress than those having
positive thinking.
6. Socialiability-Some persons are of introvert nature-i.e., they do not like to
mix with others and do not share their emotions and feelings with
neighbourers. Whereas, there are many persons who are of extrovert nature-
i.e., they love to mix and share their sentiments with others. Thus, the persons
of introvert nature, as compared to extrovert ones, have higher share of stress
because of their own adverse nature of non-social ability.
7. Rigidity-A person may have a rigid or flexible nature. The former does not
know to bow down or bring change in his attitude as per the demand of the
hour. On the other hand, the persons of flexible nature adopt practical
approach and they know the art of changing their working as per the
requirement of the situation. Thus, the persons having rigidity in their
functioning are likely to have higher level of stress than those of flexible
nature.
8. Type A or Type B Personality-Persons of Type A personality are always in
hurry, more impatient and aggressive, do many things at a time and are always
under severe pressure of time. Due to these reasons, such type of persons
generally invite higher level of stress in comparison to persons of Type B
personality who are generally not in a hurry, more patient and polite, take one
work at a time and do not allow time to unnecessarily pressurise them.

9. Proactive or Reactive Personality'- Some persons foresee a problem in

advance and prepare themselves accordingly-they are the persons having
proactive personality. On the other hand, many other persons adopt 'wait and
watch' approach and become active to solve a problem only when it actually
arises these are known as persons of reactive personality. Since the former
type of persons, as compared to the persons of reactive personality, are better
placed to face the adversaries of the situation, they are likely to have lesser
stress.

10. Stress Bearing Capacity- Based on one's personal characteristics, the stress
bearing capacity differs from person to person. For example, those who are
more spiritual or have a positive thinking or proactive personality are likely to
suffer lesser stress as compared to those who are not having such personal
traits.

CONSEQUENCES OF STRESS
Stress is a double-edged knife. If properly used, it can facilitate in achieving
better results but if misused, it can prove fatal-both for individual as well as for
his organisation. The positive and negative side of stress with refrence to
individual and organisation is being explained in detail in the following pages-
I. Positive Effect of Stress-
1. Effect on Individual-Stress is not always harmful. On the contrary, a mild
degree of stress may help to maximise performance by better utilisation of
one's capabilities. In this sense, such stress may be a boon for the person. Hans
Selye has termed it 'Eustress-i.e., that quantum of stress which has positive
impact on a person through which he gives better performance. For example,
a student may have to make a presentation in the class due to which he may
come under stress. Now because of this stress he may work harder and
succeed in making an impressive presentation. Similarly, a sales executive may
be under stress to achieve a pre-set target of sales within a given time. This
stress may serve as a positive force for him to give his best performance. Thus,
when the stress is positive, the result may be more energy, enthusiasm and
motivation.
2. Effect on Organisation- When eustress makes an individual more
energised, enthusiastic and motivated, it provides an opportunity for the
management to record better performance. In brief, the following benefits
may be derived by the organisation through 'Eustress'-
• Better Utilisation of Available Resources
• Higher Productivity
• Higher Profitability
• New Innovations.
• Higher Chances of Achieving Goals
Because of the above stated advantages, the management, especially in
private sector organisations, prefers to keep its staff under mild stress by
setting higher individual targets and periodically reviewing the performance.
It obviously encourages (or forces!) a person to put his maximum efforts and
give the best possible results to the organisation many times such type of
efforts under stress lead to exceeding the pre-determined goals!

II. Negative Effect of Stress-

When it is said that stress has become a cause of concern for an individual, it
simply means that the stress is adversely affecting the performance of that
person. Selye¹ has termed this situation as 'Distress'-i.e., that quantum of
stress which has a negative impact on a person due to which he fails to give his
best performance. For example, as soon as a student comes to know that he
has to make a presentation, he comes under severe stress because he
perceives that he can not speak before the class. The end result might be that
when he comes on the dias for presentation he may start stamering and give
a poor show in the class. Similarly, when a target is given to a sales executive,
he may perceive it too high and start spending sleepless nights with the result
that his performance might further decline and he may not reach anywhere
near the target. Thus, too much stress can cause tension, anxiety and low
performance. In a study on 2000 persons in England, it has been found that in
a condition of stress, the glands secret higher quantum of a harmone known
as "cortygol" for controlling it. However, the presence of higher quantity of
cortygol for a longer duration may cause heart attack, diabities or impotency.
The negative effect of stress on an individual and on his organisation is given
below in a more descriptive way-
1. Effect on Individual-As stated earlier, the consequences of distress for an
individual is in the form of physical, psychological and behavioural reactions as
explained below-
(i) Physiological Reactions- A large number of studies have been undertaken
in medical sciences to find out the effect of stress on human body. Though
many of such studies are of contradictory nature and some create more
confusion than clarity, "it seems reasonable to conclude that high level of
stress can result in physical changes that threaten our health and well being."
In the short run, the effect of stress may be in the form of faster breathing,
increased heart beating, sweating, palpitation, dizziness, chest pain,
contraction in muscles, higher hormonal flow (from glands such as endocrine
gland) and increased senstiveness of sensory organs etc. It may lead to such
physical problems as headache, backache, indigestion and intestinal disorders
etc. However, if stress continues for a longer duration, if may have serious
physical complications such as piles, ulcer, arthritis, baldness, sexual
impotency and skin disorders etc. In some cases, it may be the prime cause of
heart attack or even cancer.

(ii) Psychological Reactions-Besides, physical health, the stress may also

adversly affect the mental health of an individual. He may be come mentally
sick. The person may start thinking too much and that too in negative way. He
may become nervous and develope the feelings of sadness, helplessness,
hopelessness and worthlessness. He may lose interest in work and in himself
and become short tempered. He may find his concentration capacity declining.
He may love to become more introvert in nature. These psycological changes
may ultimately result in poor performance, poor relationship with superiors,
peers and subordinates, poor decisions and declining job satisfaction. If this
type of mental state is not controlled, it may even lead to sucide by the
concerned person.

(iii) Behavioural Reactions- The prolonged interaction of stress with human

body also affects the behaviour of person. It may manifest through
undereating or overeating, sleeplessness, increased smoking and drinking and
drug abuse. The person may loose his sense of humour and become aggressive
in nature. He may even incline towards accidents. In fact, his behaviour
becomes more a matter of pain than pleasure for all concerned.
The quantum of stress of the same stressor, as explained earlier, may vary
from individual to individual depending upon the nature, intensity and
continuity of the stressor or the stress bearing capability of the individual etc.
2. Effect on Organisation- When the staff of an organisation is under 'Eustress',
the management has nothing to worry. In fact, it may bring them happiness in
the form of higher productivity and increased profits. However, employees
and executives under 'Distress' may be the real cause for concern because such
a situation may bring a number of problems for the organisation. The negative
effect of stress on an organisation may be in the following forms-
• Lower Productivity
• Higher Absenteeism
• More Accidents
• Deteriorating Financial Position
• Higher Labour Turnover
• Poor Quality of Products
• Unsatisfactory Customer Service
• Least Interest in Innovations
• Strained Labour Relations
 The continuation of the above problems may result in declining profitability
and sagging reputation of such organisation. If this type of stressful situation
becomes a widespread and cronic disease, it may even lead to unnatural death
of the organisation.

STRESS MANAGEMENT AND WELL BEING.

Coping Strategies for Stress

Nobody likes stress but, ironically, stress likes everybody. No organisation desires
that any of its staff is over-stressed but, in every organisation, one can see staff
full of stress. So, stress cannot be totally eliminated. In fact, there is no need to
try for total eradication of stress because small amount of stress generally has
positive effect on all concerned. However, constant stress' has to be put on stress
so that it does not cross the danger limit and continue to facilitate the
achievement of goals.
For proper management of stress in an organisation, strategies are required to
be formulated and executed both at individual as well as at organisational levels
which are being discussed below-
 1. Individual Strategies For Minimising Stress-
As soon as an individual perceives that the stress has crossed the acceptable limits
and has started affecting his normal routine, he must become alert and take
corrective steps to control further soaring of stress. Some measures which an
individual can initiate to rein stress are described below-
(i) Gaining Knowledge About Stress- For winning an enemy, one must know
maximum about him. Similarly, for controlling stress, one must know whatever is
possible to know about stress-e.g., what is stress, why is it caused, what are its
consequences and what can be done to minimise it. Then, the individual should
try to identify his own stress and find out its sources. Once it is done properly, it
becomes easier to take remedial measures to tackle it.
(ii) Doing Exercise Regularly-Exercise is an excellent way to remain physically fit.
A physically strong body is more capable of resisting the pressure of stress as
compared to a weak body. Thus, a strong body is more likely not to have stress
related sickness. Brisk walking, running, jogging, playing, cycling and doing
aerobics etc. are some examples of exercises in different forms.

(iii) Practising Yoga Sincerely-In general sense, Yoga is the science and art of
practising particular postures (i.e., asanas) along with breathing in a particular
manner. It stimulates and strengthens the neuro-muscular system of the body
which further activates its glandular activities. It improves the physical as well as
mental health of a person. Baba Ram Dev has proved scientifically that his yogic
exercises are capable of curing stress significantly and are also helpful in
preventing the frequent occurrence of stress provided one regularly practices
yoga properly for certain duration.'
(iv) Applying Meditation Therapy-Meditation is an effective way to keep the
mind away from stressor(s). It is a method through which an attempt is made to
divert the attention of the mind from the disturbing thought (i.c., stressor) which
is adversly affecting the performance of the concerned person. Meditation (or
say, concentration) can be done in many ways-e.g., (a) one may continuously
chant 'a word' or 'mantra' loudly or silently; (b) one may simply try to concentrate
with closed eyes on a particular feeling or sound or one's own breathing or one
may like to gaze continuously on a particular symbol or scene or light (of candle)
etc. These techniques make the mind cool and calm and facilitate it to fight the
stressor(s) forcefully in future.
(v)Using Bio-feedback--Bio-feedback is a scientific technique wherein feedback
relating to certain biological changes of the body organs (e.g., blood pressure,
heart beating, stomach acidity, brain waves, muscular tension etc.) are collected
through sophisticated electronic devices and thereafter the individual is adviced
to take some remedial measures to normalise the body. As explained earlier,
when a person comes under stress, it affects the normal functioning of the body
parts. In bio-feedback, these changes are monitored systematically and then the
person is stimulated to voluntarily take suitable steps to get rid of the stressor
and become as stress-free as possible. For example, if abnormal stomach acidity
is noticed in a person, he may be told to change his food habits and do exercises
so as to revert back to normal condition. Thus, bio-feedback technique is a
mixture of physiological and psychological means.
(vi) Learning the Art of Relaxation- Relaxation is a means to take time off from
one's routine work. This may happen in different ways. For example, a person
may go on picnic or on a visit to a holy or hilly city or a pleasure tour to some
foreign country. Relaxation can also be given on daily basis through tea break or
lunch break wherein a person may even enjoy a cat snap of a few minutes. Such
relaxed period changes the mood of the person for some time which ultimately
helps him to minimise stress successfully.

(vii) Knowing to say 'No'- Sometimes some persons become stressful because of
the extra burden of work. Such persons do not know to say 'No' to any additional
assignment which is offered to them. Thus, for minimising their stress, such
people should delegate some part of their work to others. They must also say 'No'
to any further assignment given to them for which alternative arrangement could
be made by the management.
(viii) Readjusting Life Goals-In the modern materialistic age of cut-throat
competition, everybody is in a hurry to earn more and more in the least time. For
this purpose, he sets high goals for himself and tries to do much in too little span
ignoring his own capabilities and other resources available to him. The net result
under such situation is that the person comes under stress. If this is the reason of
stress, the individual should review his goals rationally and re-adjust them
keeping in mind his abilities and available resources. So, one should set only
achievable goals-trying to achieve the impossible means inviting (may be
unintentionally!) stress in the neighbourhood.
(ix) Managing Time Scientifically-It is rightly said that "If you kill time, a time will
come when time will kill you." Many persons perform those pieces of work which
others can do at the cost of those which he alone can perform. Similarly, many
times an individual attends to lesser important activities at the cost of urgent
activities. This approach lands him into stress. As such, a person should have a
micro planning of time scientifically. He must prepare a comprehensive list of
activities which he alone has to handle. Then these activities should be priortize
on the basis of its importance and urgency and executed accordingly. The most
important activities should be taken up at the time when one is most alert and
productive. Remember, if one plans time properly, one has everything to gain and
nothing to lose.
(x) Getting Social Support- Man is a social animal. He likes to mix with the society.
Therefore, whenever there is stress of any type, person should try to share it with
his near and dear ones- may be family members, relatives, friends or co-workers.
Remember, "A friend in stress is a friend indeed"!
However, some persons are of extreme introvert nature-they do not like to share
their feelings of stress with anybody in the world. For such persons in specific and
other persons in general, other way reduce stress is to share their feelings with
the Supreme Power (i.e., the God). One should talk to Him frankly whenever and
wherever one feels so. It can bring magical results provided one is talking from
the core of his heart and with full faith. The pracice of "Confession of Sin" by
christians before the Jesus Christ in a church, is based on this approach itself.

(xi) Learning to Remain in 'Now'- Generally we are in stress because either we go

in past and start thinking what and why things went wrong or we go in future and
start imagining what and why things may go wrong. In both these situations we
have gone to, what Eckhart Tolle' has lebelled, "Pain Body". Therefore, the
simplest way to come out of stress is to give command to the brain to return to
'Now' and do whatever best is possible to reduce the stress. One has to
remember that it is futile to remember past and repent because nothing can be
done to undone now. Similarly, it is useless to imagine further events and get
worried because nothing can be accurately predicted for the uncertain future. As
such, remain in 'Now' and utilise it in the best way.

(xii) Developing Positive Thinking- A positive thinker seldom experiences stress

because he succeeds in tracing something 'good' in even a 'totally bad event. In
fact, he does not believe in 'negative things- for him, everything is 'positive'.
(xiv) Taking Help of a Counsellor-In case it appears that a person is not in a
position to bring his stress level within his bearing capacity, he may visit himself
or his well-wishers may take him to some psycho-therapist clinic where the
experts may try to find the real cause(s) of stress and through their own unique
ways help the person to change his attitude towards the prevailing stressful
situation. It has been rightly said, "Life is 10% what happens to us and 90% how
we react to it."

2. ORGANISATIONAL STRATEGIES FOR MINIMISING

STRESS-
A stressful employee is not a problem for himself alone but also for the
organisation because its interests are adversely affected. Moreover, the root
cause of stress might be in the organisation itself. As such the organisation too
has to remain watchful and take necessary measures, if needed, to create and
maintain stress-free environment in it.
Some of the steps which an organisation can initiate to minimise stress, are being
described in the following pages-

(i) Redesigning the Job- An employee may be under stress because his job is
monotonous, lesser significant, lesser challenging, lesser interesting, lesser
rewarding or having lesser responsibility or unsatisfactory working condition. This
type of stress can be reduced by redesigning the job through its enrichment. For
example, job enrichment can be done by adding more activities or increasing
responsibility or improving promotional avenues or adding incentives or
modifying other core features of the job or improving his working condition. In
this process of readjustment of the job, the employee should also be consulted
and his genuine concerns must not be ignored-it sooths his sentiments and goes
a long way in lessening his stress.

(ii) Rational Role Management-Role related factors may also cause stress to an
employee- the role may be ambiguous, there may be intra-role or inter-role
conflict or there may be role overload. Accordingly, the management should take
corrective steps-e.g., the role should be clearly defined in precise form, the orders
of contradictory nature should not be issued, the performance of opposite nature
should not be expected d for an employee should not be overburdened with a
variety of roles.
(ii) Creating Congenial Relationships- Another cause of stress may be the
relationship factors-i.e., strained relationship with the superiors, peers or
subordinates, Thus, if the boss is illogically trying to dominate under parent ego
state or the peers are of non-cooperative nature creating problems unnecessarily
or the subordinates are underperforming on one or other excuse, the
management must intervene at the right time through right means to ensure that
a team spirit is developed and all work is done under congenial environment. For
this purpose, "Carrot and Stick" theory of motivation may be applied. A joint
meeting of all concerned from time to time, preferably arranged by the higher
authorities, may also bring favourable results.
(iv) Reviewing Organisational Policies and Procedures-As stated earlier, vague,
incomplete, unfair or frequently changed policies or procedures are liable to
make the staff stressful. The stress level may further rise if these policies or
procedures are interpreted in a biased way or excuted with a flavour of
favouritism. As such, for creating an environment of minimum stress in the
organisation, the management must review its policies and procedures from time
to time in a scientific and transparent way keeping in mind the feedback of the
staff and existing macro-environment of the country globe.
With above facts in mind, the issue of scientific selection and placement followed
by the role of scientific performance and reward system can be taken as
examples-
(a) Making Scientific Selection & Placement-Selection is the process of choosing
right person for the right job. Any mismatch between the qualifications of
selected person and the requirements of the job, is bound to create stress.
Similarly, while posting a selected candidate at a particular place, due care must
be taken to ensure that the concerned person will be able to fulfill the
requirements of that post at the place. However, if a mismatch is noticed at a
later stage because of which stress has surfaced, corrective measures should be
taken by the management. For example, the employee may be sent for training
or he may be transferred to another post or place or he may be given psycho-
therapy. Similarly, the guidelines relating to selection/placement might be
reviewed and modified to make them more rational and transparent, if needed.
Furthermore, for assessing the stress bearing capacity of the candidate,'stress
interview' might also be included in the interview process.
(b) Scientific Performance Appraisal and Reward System-Another issue which
may be the cause of stress and anxiety is the performance appraisal and reward
based on that. The performance appraisal should not be only rational but it
should also be so perceived by the staff. It must be comprehensive, objective and
non- biased. Moreover, the staff must be given sufficient opportunity to
comment on such appraisal, if something is adverse in it. Similarly, the staff who
has performed well must be properly and promptly recognised and appreciated.
Such step will not only improve the morale of the concerned staff but will also
encourage them to be more sincere, serious, devoted and dedicated to their jobs
in particular and the organisation in general.
Similarly, besides the above two issues, other issues relating to staffing (e.g
recruitment, training, promotion, transfer, remuneration, labour welfare and
retirement etc.) should also be given due attention during the formulation and
execution stages. It plays very important role in defusing and bringing down the
stress level of the staff

(v) Strengthening Internal Communication System-Two-way communication, as

we all know, is vital for stress minimisation. The management must develop a
hindrance- free faster and effective flow of information from top to bottom and
vice-versa. When a subordinate is allowed to meet his boss for sharing his
grievance and is given a patient and biased-free hearing, half of his stress is
automatically gone. Satisfying such subordinate through councelling or giving him
appropriate assurance to resolve the issue, makes such person almost stress-free.
Thus, sound internal communication system weakens the grape-vine
communication, minimises the chances of misunderstanding, mistrust, confusion
and chaos which put together facilitate to minimise stress-level of the staff.
(vi) Encouraging Participation in Decision Making- When the staff is involved the
decision making process of the organisation and the decisions are taken on the
basis of concensus, these are not only easily accepted but also least confusion
and conflicts are created. Thus, chances of stress creation during the origin and
execution of the decisions are minimum.
(vii) Holding Stress Management Workshops-The organisation should hold
workshops from time to time on stress management. In these workshops, experts
should throw light on different aspects of stress-what is stress, what are its
sources and how it can be reduced? Such theoretical lectures should be of
interactive nature where the participants should be encouraged to ask their own
stress related problems. Such workshops may also include lectures from retired
or working executives who can share their own experiences and expertise relating
to stress management. After the workshops, the management may designate
some experienced executive of the organisation as stress councellor who can be
approached by any employee for diluting his stress, Moreover, an agreement may
also be signed with an outside expert of stress management (who may be
available on a help line) to help the employees tide over their stress.
(viii) Conducting Skill Development Programmes-As stated earlier, stress and its
severity is also dependent on our thinking approach the chances and degree of
stress creation are lower when we have positive thinking and vice-versa. Similarly,
when the staff is well-versed with the vivid aspects of organisational behaviour
(e.g.. nature of human behaviour, various aspects of personality, perception,
motivation, leadership, group dynamics, transactional analysis, conflict
management and change management etc.), they are better equipped to deal
with stress. Furthermore, those employees who keep pace with new technologies
and learn various skills to take up other activities in the organisation, have higher
self-confidence and lesser prone to stress due to higher capability to change their
career. Thus, the management should organise such programmes which help the
staff to develop positive thinking, enrich their personality, improve their
perceptual power, boost their morale, increase their team spirit, enhance their
ego management and better prepare them to manage conflicts. The organisation
of career planning and counselling programmes is also helpful in minimising the
chances of stress.
(ix) Providing Health Fitness Facilities- Since the healthy body is better equipped
to bear stress with pleasure, it should be the duty of the organisation to provide
adequate health fitness facilities to its staff. Swimming pools, gyms, yoga classes,
play grounds and health fitness checking camps are some examples of such
facilities. Though establishment and running of such facilities is expensive, but
looking at its long-term benefits for the organisation, it is worth investment.

(x) Organising Cultural Programmes-Cultural programmes are excellent means

to divert the attention of the employees from their existing stressors. Moreover,
such programmes help the employees to refresh their mood which in turn
facilitate them to fight stress with more zeal and zest. The participants on the
stage experience more satisfaction, enthusiasm- all antidotes for stress.
Therefore, the management should organise cultural programmes of various
nature at micro as well as macro level to improve the stress fighting power of its
employees.

Stress is omnipresent and immortal. The individuals or the organisations like it or

not, it is not going to die. The only thing which can be done is to take appropriate
measures, as discussed above, to keep it under control. And once it is controlled
within tolerable limits, it becomes a friend-and not a foe- which stimulates
individuals to give their best to the organisation.