Organisational Behaviour

Organisational Behaviour

Definition Organisational Behaviour is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organisation for the purpose of applying such knowledge toward improving an organisation’s effectiveness.

Organisational Behaviour is a field of study that investigates the impact that individuals, groups, and structure have on behaviour within organisation for the purpose of applying such knowledge toward improving an organisation’s effectiveness.

OB is a field of study Means a distinct area of expertise with a common body of knowledge What does it study? It studies three determinants of behaviour in organisation Individuals, Groups, Structure Applying such knowledge OB applies knowledge about individuals, groups and the effect of structure on behaviour in order to make organisation work more effectively.

Therefore – OB is concerned with the study of what people do in an organisation and how the behaviour affects the performance of the organisation.

It is concerned with employment related situations, and emphasises behaviour as related to concerns such as jobs, work, absenteeism, employment turnover (attrition), productivity, performance and management.

CONTRIBUTING DISCIPLINES TO THE FIELD OF OB Psychology – The science that seeks to measure, explain, and sometimes change the behaviour of human and other animals. Sociology – The study of people in relation to their fellow human beings. Social psychology – An area with psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another. Anthropology – The study of societies to learn about human beings and their activities. Political science – the study of the behaviour of individual and groups within a political environment.

CONTRIBUTING DISCIPLINES TO THE FIELD OF OB Behavioural Science Contribution Unit of Output Learning Job satisfaction analysis

Psychology

Motivation Personality Emotions Perception Training Leadership

Decision making Performance appraisal Attitude Selection Work design Stress

Group dynamics Work teams Communication

Sociology

Social psychology

Anthropology

Power Conflict Intergroup behaviour

Formal organisational theory Organisational technology Behavioural change Attitude change Communication

Organisational change Organisational culture

Group

Group processes Group decision making

Comparative values & attitudes Cross culture analysis Organisational culture &environment

Political science

Individual

Conflict Intraorganisational politics Power

Organisation system

Study of OB

CHALLENGES AND OPPORTUNITIES FOR OB

1. Responding to Globalisation 2. Managing Workforce Diversity 3. Improving Quality and Productivity 4. Responding to Labour Shortage 5. Improving Customer Service 6. Improving People Skill 7. Empowering People 8. Coping with Temporariness 9. Stimulating Innovation and Change 10.Helping Employees Balance Work/Life Conflicts 11.Improving Ethical Behaviour

What is Organisational Behaviour ? Every individual has 24 hours a day. The worldwide research has shown that an average person spends about 6 to 8 hours a day in sleep more than 8 hours are spent in working and traveling. One gets left with only 8 hours for personal and private life with family and friends. It means we spend 33% of life in sleeping, 50% in working and are left with only 17% for personal pleasures.

Therefore subject of Organisational Behaviour deals with that part of life which we spend in working which is also called “On the job” life. Our off the job life is interrelated and interdependent on on the job life and vice versa.

Models of organisational behaviour 2. 3. 4. 5. 6.

Autocratic Model The custodial model The supportive model The collegial model The SOBC (Stimulus, organism, behaviour, consequences) model

The Autocratic Model The model is based on the assumption that authority is central to results. People must accept the authority of their superiors and obey their instructions. Obedience is the main employee orientation. Obedience on the part of subordinates can be for respect for the knowledge and the authority of the superiors or fear of punishment. Job security, basic needs of a person, survival and growth makes the subordinates to obey.

The Custodial Model This assumes that the organisational behavior depends upon the economic resources. Employee work for money and desires job security. While money is the main managerial orientation, job security is the main employee orientation. For the basic need of job security employee offer a passive co-operation to the superiors. The management knows better welfare of the people & takes the role of custodian and guardian of the people and their wealth.

The Supportive Model The model assumes that management is leadership. The management plays the role of a supportive leadership. The employees are performance oriented & need support for their initiative and drive for performance. This encourages participation by the subordinates. The basic need of the employee is the self esteem and recognition. The employees need support, status and recognition for their performance.

The Collegial Model This model is based on the assumption that generally the employees are self disciplined and they exhibit a responsible behaviour. The main need of the employee is self actualisaton. If this need is satisfied, they show enthusiastic performance. Therefore they must be encouraged for the participation in decision making. Team building on the part of management is must as the team work is main managerial orientation.

The SOBC Model This model is based on the assumption that every behaviour is caused. What we see are the consequences of the behaviour shown by organism due to stimulus. This model can be diagrammatically shown as follows: Stimulus > Organism > Behaviour > Consequences (cause) (individual) (Actions) (Results) The Stimulus is the cause that may be overt or covert, physical, social, psychological, technological, environmental etc. The Organism can be individual or a group. They have cognitive mediators with physiological existence. The Consequences are expressed as the results that may be overt or covert. Positive or negative and can have effects on environmental dynamics and applications. SOBC model is based on the very practical philosophy of human behaviour that: every behaviour is caused & follows the Cause-Effect relationship.

PERCEPTION

Perception is a process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment. - Stephen Robins

Factors Influencing Perception Factors in the situation Time Work Setting Social Setting

Factors in the Perceiver Attitudes Motives Interests Experience Expectations

PERCEPTION Factors in the target Novelty Motion Sounds Size Background Proximity Similarity

What do you see?

What do you see? What do you see?

There's a face... and the word liar

Is the left center circle bigger?

No, they're both the same size

It's a spiral, right?

No, these are a bunch of independent circles

What do you see ?

A couple or a skull?

Count the black dots!

0 (ZERO)

What do you see?

Do you see the three faces?

Process of Perception 1. Confrontation of stimulus The Individual comes face to face with another Individual/group/object/situation/problem

Process of Perception

2. Registration The individual registers the stimulus and it’s gravity

Process of Perception

3. Interpretation The individual tries to understand the real meaning of the situation.

Process of Perception

4. Feedback The individual evaluates the strength and weakness and gives a quick feedback to the sensory motor.

Process of Perception

5. Reaction The individual gives the response in terms of reaction that can be positive, negative or neutral, depending upon the mutual interaction between the stimulus and the individual.

APPLICATION OF PERCEPTION ATTRIBUTION THEORY The theory is proposed to develop explanations of the ways in which we judge people differently, depending on what meaning we attribute to a given behaviour. The theory suggests that when an individual observes another individual’s behaviour and they observer attempts to determine whether the behaviour is caused internally or externally. The determination, however depends upon three factors 1. Distinctiveness 2. Consensus 3. Consistency

PERSONALITY

Definitions ‘Personality is the dynamic organisation within an individual of those psychological systems that determine his unique adjustments to his environment.’ - Gordon Allport Personality is the sum total ways in which an individual reacts to and interacts with others. - Stephen Robins

PERSONALITY DETERMINANTS Individual Personality is the result of heredity and environment and the third factor is recognised to be situation.

HEREDITY Heredity refers to those factors that were determined at conception. Physical stature, facial attractiveness, temperament, muscle composition and reflexes, energy level, and biological rhythms are characteristics that are generally considered to be either completely or substantially who the parents are; that is, by their biological, physiological, and inherent makeup. The heredity approach argues that the ultimate explanation of an individual’s personality is the molecular structure of the genes.

ENVIRONMENT

Environment factor like culture in which one is raised, early conditioning; norms among family, friends, social group and other influences that one experiences, exert pressure on personality of an individual.

SITUTATION

Situation influences the effect of heredity and environment on personality. A individual’s personality, although generally stable and consistent, does change in different situations. The different demands of different situations call for different aspects one’s personality.

LOCUS OF CONTROL Locus of control is the degree to which people believe they are masters of their own fate Some people believe that they are masters of their own fate. Other people see themselves as pawns of fate, believing that what happens to them in their lives is due to luck or chance.

INTERNALS Individual who believes that they control what happens to them. EXTERNALS Individuals who believe that what happens to them is controlled by outside forces such as luck or chance.

TYPE A AND TYPE B PERSONALITY

TYPE A PERSONALITY A person with a Type A personality is aggressively involved in chronic, incessant struggle to achieve more and more in less and less time, and if required to do so, against the opposing efforts of other things or other persons.

Type A’s 1. 2. 3. 4. 5.

Are always moving, walking, and eating rapidly Feels impatient with the rate at which most event take place Strive to think or to do two or more things at once Cannot cope with leisure time Are obsessed with numbers, measuring their success

TYPE B PERSONALITY Type B is exactly opposite to type A are rarely harried by the desire to obtain a wildly increasing number of things or participate in an endless growing series of events in an ever decreasing amount of time.

Type B’s 1. Never suffer from a sense of time urgency with the accompanying impatience 2. Feel no need to display or discuss their achievements 3. Play for fun and relaxation and not exhibit superiority 4. Can relax without guilt

PERSONALITY TRAITS Personality are the enduring characteristics that describe an individual behavior. A study identified 17,953 individual traits. Another researcher isolated 172 traits and reduced set of traits that would identify underlying patterns and thereby 16 personality factors (called the source or primary traits) were identified These 16 traits are to be found generally steady and constant source of behavior.

Personality traits

Sixteen Primary Traits 1 Reserved

Vs

Outgoing

2 Less intelligent

Vs

More intelligent

3 Affected by feelings

Vs

Emotionally stable

4 Submissive

Vs

Dominant

5 Serious

Vs

Happy-go-lucky

6 Expedient

Vs

Conscientious

7 Timid

Vs

Venturesome

8 Tough minded

Vs

Sensitive

9 Trusting

Vs

Suspicious

10 Practical

Vs

Imaginative

11 Forthright

Vs

Shrewd

12 Self-assured

Vs

Apprehensive

13 Conservative

Vs

Experimenting

14 Group dependent

Vs

Self-sufficient

15 Uncontrolled

Vs

Controlled

16 Relaxed

Vs

Tensed

ATTITUDES

ATTITUDES Attitudes – Evaluative statements or judgments concerning objects, people or events. Attitude may be favourable or unfavourable – concerning objects or events. Attitudes are not the same as values, but the two are interrelated.

COMPONENTS OF AN ATTITUDE

Attitude has three components and they are – 3. Cognitive Component 5. Affective Component 7. Behavioural Component

COMPONENTS OF AN ATTITUDE

Cognitive component of an attitude It is the opinion or belief segment of an attitude Affective component of an attitude It is the emotional or feeling segment of an attitude Behavioural component of an attitude An intention to behave in a certain way toward someone or something

TYPES OF ATTITUDES There may be thousands of attitudes in a person, OB focuses attention on a very limited number of work related attitudes. These work related attitudes are positive or negative and shows how employee feel about their job. Most of the research in OB has been concerned with three attitudes namely: 1. Job Satisfaction 2. Job Involvement 3. Organisational Commitment

JOB SATISFACTION The term job satisfaction refers to an individual’s general attitude toward his or her job. An individual with high level of job satisfaction holds positive attitudes about the job, while a dissatisfied individual may hold negative attitudes about the job. Low job satisfaction can result in high attrition rate, absenteeism, and poor mental health.

JOB INVOLVEMENT Job involvement measures the degree to which a person identifies psychologically with his or her job and considers his or her perceived performance level important to self worth. High level of job involvement reduces attrition and absenteeism.

ORGANISATIONAL COMMITTMENT Organisation commitment is defined as degree to which an employee identifies with a particular organisation and its objectives and wishes to maintain membership in the organisation. An employee may be dissatisfied with his or her present job and consider it a temporary condition, yet not be dissatisfied with the organisation as a whole. But when dissatisfaction spreads to the organisation itself, individuals are more likely to resign.

EFFECTS OF JOB SATISFACTION

The job satisfaction has an effect on the performance of an individual however in the organisation it tends to center on its effect on productivity, absenteeism and turnover.

Satisfaction and productivity “Happy workers are productive workers” is a myth, the concept “productive workers are likely to be happy workers” may hold good. Satisfaction and absenteeism There is a negative relationship between satisfaction and absenteeism. Absenteeism increases with decrease in job satisfaction Satisfaction and turnover Satisfaction is also negatively related to turnover , factors like alternative job opportunities, length of tenure, labour market condition will also effect the turnover.

EXPRESSION OF DISSATISFACTION Employee dissatisfaction can be expressed in various ways, however the following four responses shall indicate different responses to employee dissatisfaction. Exit : Dissatisfaction expressed through behaviour directed toward leaving the organisation. Voice : Dissatisfaction expressed through active and constructive attempts to improve conditions, may include union activity. Loyalty : Passively but optimistically waiting for the condition to improve. It is trusting organisation and management ‘to do the right thing’. Neglect : Dissatisfaction expressed through allowing condition to worsen, it includes chronic absenteeism, reduced effort and increased error rate.

JOB SATISFACTION AND CUSTOMER SATISFACTION

Satisfied employees increase customer satisfaction and loyalty. Satisfied employee are more likely friendly and responsive – which customers appreciate. Satisfied employees are less prone to turnover, customers are more likely to encounter familiar faces and receive experienced service.

VALUES Values – Basic convictions that a specific mode of conduct or end state of existence is personally or socially preferable to an opposite or converse mode of conduct or end state of existence. Value System – A hierarchy based on ranking of an individual’s values in terms of their intensity.

TYPES OF VALUES Value typologies can be developed in two approaches as per survey conducted by Milton Rokeach, the survey is popularly known as Rokeach Value Survey (RVS). RVS consists of two sets of values – Terminal values and Instrumental values

TYPES OF VALUES

Terminal values – Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime. Instrumental values – Preferable modes of behaviour or means of achieving one’s terminal values.

Terminal and Instrumental Values in Rokeach Value Survey Terminal Values

Instrumental Values

A comfortable life (a prosperous life) An exciting life ( a stimulating, active life) A sense of accomplishment ( lasting contribution) A world of peace ( free of war and conflict) A world of beauty (beauty of nature and the arts) Equality (brotherhood, equal opportunity for all) Family security (taking care of loved ones) Freedom (independence, free choice) Happiness (contentedness) Inner harmony (freedom from inner conflict) Mature love (sexual and spiritual intimacy) National security (protection from attack) Pleasure (an enjoyable, leisurely life) Salvation (saved, eternal life) Self respect (self-esteem) Social recognition (respect, admiration) True friendship (close companionship) Wisdom (a mature understanding of life)

Ambitious (hardworking, aspiring) Broad minded (open minded) Capable (competent) Cheerful (lighthearted, joyful) Clean (neat, tidy) Courageous (standing up for your beliefs) Forgiving (willing to pardon others) Helpful (working for the welfare of others) Honest (sincere, truthful) Imaginative (daring, creative) Independent (self-reliant, self-sufficient) Intellectual (intelligent, reflective) Logical (consistent, rational) Loving (affectionate, tender) Obedient (dutiful, respectful) Polite (courteous, well-mannered) Responsible (dependable, reliable) Self-controlled (restrained, self-discipline)

MOTIVATION

IT IS THE NEED OR DRIVE WITHIN AN INDIVIDUAL THAT DRIVES HIM OR HER TOWARD GOAL ORIENTED ACTION. THE EXTENT OF DRIVE DEPENDS ON THE PRESCRIBED LEVEL OF SATISFACTION THAT CAN BE ACHIEVED BY THE GOAL

-Definition-

“MOTIVATION IS A PREDISPOSITION TO ACT IN A SPECIFIED GOAL DIRECTED MANNER” -Hellriegel and Slocum

“MOTIVATION REFERS TO GOAL DIRECTED BEHAVIOUR” -Chung

“A process of stimulating the self or subordinates to get into the desired course of action” -Michael Julius

DIFFERENCE BETWEEN MOTIVATION AND SATISFACTION MOTIVATION REFERS TO THE DRIVE AND EFFORT TO SATISFY A WANT OR GOAL. SATISFACTION REFERS TO THE CONTENTMENT EXPERIENCED WHEN WANT IS SATISFIED. IN OTHER WORDS, MOTIVATION IMPLIES A DRIVE TOWARD AN OUTCOME, AND SATISFACTION IS THE OUTCOME ALREADY EXPERIENCED.

Employees' performance is, of course, partially determined by the opportunities given them to demonstrate their abilities. If employees are never given opportunities to utilize all of their skills, then the employer may never have the benefit of their total performance. Work performance is also contingent upon employee abilities. If employees lack the learned skills or innate talents to do a particular job, then performance will be less than optimal. A third dimension of performance is motivation.

Mechanism of Motivation

Need Deprivation

Drive

Barrier

Goal

Direction

Overt/Covert

Achievement

Frustration

NEEDS An internal state of disequilibrium or deficiency which has the capacity to energise or trigger a behavioural response

Motivation and Frustration A person get frustrated because of unfulfilled need. Whenever a person is frustrated, the defence mechanism gets triggered into action. Frustration can be manifested into one or more of following behaviour: Aggression: A reaction to a situation where one’s motive is blocked, causing oneself to turn against the barrier in terms of verbal or physical injury. Withdrawal: Leaving the field physically and psychologically. Fixation: An unreasonable stubbornness, repeated behaviour, non adjusting. Compromise: Adjusting with the situation leading to ‘give and take’ attitude.

MOTIVATION THEORIES

MASLOW’S HIERARCHY OF NEEDS

Achievement

Status Friendship Stability

Sustenance

SelfActualization Needs Esteem Needs Belongingness Needs Security Needs Physiological Needs

Challenging job

Job title Friends in Work Group Pension Plan

Base Salary

Douglas Mcgregor’s Theory Douglas Mcgregor, a professor of industrial Administration at MIT (USA) theorized that every person has certain basic assumptions about other people’s attitude towards work and organisation the assumption is labeled as Theory X and Theory Y.

Theory X Assumptions It is the traditional assumptions about the nature of people and states that1. Average human being have an inherent dislike of work and will avoid it if they can. 2. Because of this human characteristic of disliking work, most people must be coerced, controlled, directed and threatened with punishment to get them to put forth adequate effort toward the achievement of organisational objectives. 3. Average human beings prefer to be directed, wish to avoid responsibility, have relatively little ambition, and want security above all.

Theory Y Assumptions The assumption under this are _ 1. The expenditure of physical effort and mental effort in work is as natural as play or rest. 2. External control and threat of punishment are not the only means for producing effort toward organisational objectives. People will exercise self direction and self control in the service of objectives to which they are committed. 3. The degree of commitment to objectives is in proportion to the size of the rewards associated with their achievement. 4. Average human beings learn, under proper conditions, not only to accept responsibility but also to seek it.

Herzberg’s 2-factor Theory Fredrick Herzberg (1959) extended the work of Maslow and developed a specific content theory of work motivation. He conducted a widely reported study of about 200 accountants and engineers from eleven industries in the Pittsburgh area. He used the critical incident method of obtaining data for analysis. He asked them two questions: a) When did you feel particularly good about your job and what turned you on? b) When did you feel exceptionally bad about your job and what turned you off?

CONTARSTING VIEW OF SATISFACTION AND DISSATISFACTION TRADITIONAL VIEW Satisfaction

Dissatisfaction

HERZBERG’s VIEW Satisfaction

Motivators

No Satisfaction

No Dissatisfaction

Hygiene Factor

Dissatisfaction

Herzberg’s theory was based on a two-factor hypothesis that is factors leading to job satisfaction And factors leading to no job dissatisfaction. They were classified in two categories: 6) Motivational factors 7) Hygiene or maintenance factors

Motivational factors • Recognition • Advancement • Responsibility • Possibility of growth • Achievement • Work itself

Motivational factors are directly related to the job itself. Present of such factor create a highly motivating situation, but their absence does not cause job dissatisfaction. These factors are ‘content oriented’.

Hygiene or Maintenance factors • Company policy and administration • Technical supervision • Interpersonal relations with subordinates • Salary • Job security • Personal life • Working conditions • Status • Interpersonal relations with supervisors • Interpersonal relations with peers/colleagues

Maintenance factors are ‘context oriented’ their presence does not significantly motivate the person. The presence of such factors prevents dissatisfaction and maintains a certain level of motivation but any reduction in the availabilities of these factors is likely to affect motivation and bring down the level of performance. According to Herzberg, Hygiene factors can dissatisfy by their absence but they cannot satisfy by their presence.

Motivational vs. Hygiene Factors Motivational Factors

Hygiene factors

When present lead to satisfaction and motivation.

When present, help in preventing dissatisfaction but do not increase satisfaction or motivation.

When absent prevents both satisfaction and motivation.

When absent increase dissatisfaction with the job.

Status goes down with Hygiene factors; Recognition goes up with Motivators

McClelland’s theory of Needs Developed by David McClelland and his associates. The theory focuses on three needs: 1. Achievement 2. Power 3. Affiliation

Need for Achievement (nAch): The drive to excel, to achieve in relation to a set of standards. Need for Power (nPow): The need to make others behave in a way that they would not have behaved otherwise. Need for Affiliation (nAff): The desire for friendly and close interpersonal relationship

E R G Theory Clayton Alderfer of Yale University has reworked Maslow’s need hierarchy. He devised three groups of core needs: 1. Existence 2. Relatedness 3. Growth

Maslow’s Need Hierarchy and Alderfer’s ERG Theory Maslow

Self Actualisation

Esteem Social Security

ERG Growth Relatedness Existence

Physiological Maslow’s theory follows a rigid, steplike progression. ERG theory does not assume that there exists a rigid hierarchy. It demonstrates that (i) more than one need may be operative at the same time, and (ii) if the gratification of a higher level need is suppressed, the desire to satisfy lower level need increases. In ERG all the need categories could be operating at the same time

Vroom’s Expectancy Theory The theory essentially emphasizes that motivation is increased if the individual perceives that – 3. His effort will result in successful performance 2. Successful performance leads to desired rewards The theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.

Vroom’s Expectancy Theory

Individual Effort

1

Individual Performance

2

Organizational Rewards

3

Personal Goals

1. Effort-performance relationship: Probability perceived by the individual that exerting a given amount of effort will lead to performance. 2. Performance-reward relationship: The degree to which the individual believes that performing at a particular level will lead to the attainment of a desired outcome. 3. Rewards-personal goal relationship: The degree to which organizational reward satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for individual.

Vroom’s Expectancy Theory Vroom explains that motivation is a product of how much one wants something and one’s estimate of the probability that a certain action will lead to it. This relationship is given in the formula:VXE=M V = Valence is strength of desire for something E = Expectancy is probability getting it with a certain action M = Motivation is strength of drive towards an action

Vroom’s Expectancy Theory

Range of Valence and Expectancy

Valance -1

0

+1

0

+1

Expectancy

EQUITY THEORY

James Stacy Adams (1965) proposed the equity theory which was based on his belief that an individual’s motivation is influenced by his perception of how equitably he is treated at work.

EQUITY THEORY

To express his ideas, Adam used following formula: Equity exists whenPerson’s Outcomes Person’s Inputs Negative Inequity exists whenPerson’s Outcomes < Person’s Inputs Positive Inequity exists whenPerson’s Outcomes > Person’s Inputs

Other’s outcomes Other’s inputs Other’s outcomes Other’s inputs Other’s outcomes Other’s inputs

EQUITY THEORY

In order to restore equity, individuals can make one of the six choices: 2. Change their inputs (reduce efforts) 3. Change their outcomes (earning more on a piece rate basis producing higher quantity) 4. Distort perception of self (changing self perception) 5. Distort perception of others (changing thoughts about others) 6. Choose a different referent (changing person with whom comparison is made) 7. Leave the field (quit the job)

Value of rewards

Perceived equitable rewards

Ability to do a specific task

Performance accomplishment

Effort

Perceived Effort-reward probability

Intrinsic rewards

Perception Of task required

Satisfaction Extrinsic rewards

PORTER & LAWLER MOTIVATIONAL MODEL

MORALE

MORALE

Morale indicates happiness of the employees within the organizational environment. It is essentially akin to job satisfaction and represents the integration of an individual with the team and the organization itself. Higher the morale higher is the productivity. Relationship between morale and productivity need not always be direct. With high morale there could be low productivity.

High

A Morale

B C

Low Low

Productivity

Line A - High morale low productivity Line B – High morale high productivity Line C – High productivity low morale

High

LEADERSHIP

-Definition-

“The Leader is a part of the group – distinct from the group and can influence the behaviour of the group”

Leadership is defined as “influence, that is, the art or process of influencing people so that they will strive Willingly and enthusiastically towards the achievement of group goals. Leading involves influencing and interacting with people to attain goals”

The leadership can be defined as “the act of making an impact on other in a desired direction”

‘The ability of a person to persuade others to seek achievement of the group goals efficiently & effectively '. (Keith Davis)

Leaders envision the future; they Inspire organization members and chart the course of the organization. Leaders must instill values whether they are concern for quality, honesty and calculated risk taking or concern for employees and customers.

LEADERSHIP STYLE Psychologists, sociologists, political scientists and certainly, management scientists have become increasingly interested in leadership. There have been spurts of research on this topic from time to time. The more we research leadership, the more complexity comes to light. Leadership is broader than management. Managers can effectively run organizations but only leaders can build them.

Essential of Leadership

An organisation requires management to achieve the organisational goal including the economic performance A manager must be a good leader since he has to get work done by his people. Leadership in the manager plays a very important role.

Essential of Leadership

Some of the major factors of importance of leadership in business organisations may be summarised as follows : It helps to build of the group It helps to create confidence among the members It motivates the group members It inculcates discipline It helps to build work teams It helps to improve the organisational efficiency

Theories of Leadership Various theories of leadership have been developed by different management experts. The major theories of leadership are as follows : Traits Theory Behavioural Theories Contingency Theories Leader-Member Exchange Theory Managerial Grid

The Traits Theory (Ordway Tead & Chester Bernard) In the early stages of organisational development, it was believed that 'Leaders are born' This theory is based on the assumption that leadership depends upon the traits of the successful leaders. Some of the major features of this approach are as follows : It is a traditional theory It is based on the belief that 'Leaders are born & not made' It is based on the assumption that physiological & psychological traits of the leaders determine the success or failure of the leadership

The Traits Theory Strengths It banks upon the personal qualities of the leader It draws on the influence of the charisma of the leader There is an emotional bond between the leader & the followers. There is loyalty by the followers Inter-personal relationships among the members of the group are

Weaknesses The traits are not exhaustive or universal There is a lack of scope for development of the followers There is a possibility of exploitation of the followers

Some traits of effective leadership

Knowledge of the job/task Intelligence. Self-respect Self-confidence. Courage Logical thinking Rational judgment Decision-making Communication ability

Creativity Initiative & drive Problem-solving ability High morale & motivation Positive attitude Authority & Responsibility Flexibility in approach Conviction & Commitment Impressive Personality

THE FOUR LEADERSHIP STYLES The four leadership style can be stated as – •Directive •Supportive •Consulting •Delegating

A combination of high and low regulating and nurturing behaviour will give four quadrants, each representing four different leadership styles.

THE FOUR LEADERSHIP STYLES

N U R T U R I N G B E H A V I O U R

REGULATING BEHAVIOUR Style 3 CONSULTING LOW REGULATING HIGH NURTURING

Style 2 SUPPORTIVE HIGH REGULATING HIGH NURTURING

Style 4 DELEGATING LOW REGULATING LOW NURTURING

Style1 DIRECTIVE HIGH REGULATING LOW NURTURING

The Managerial Grid

The Managerial Grid is developed by Robert Blake and Jane Mouton. The grid has been used throughout the world as a means of training managers and of identifying various combination of leadership styles.

The Grid Dimensions The grid has two dimensions2. Concern for People 3. Concern for Production “Concern for” is meant to convey “how and to what extent” managers are concerned about production and “how and to what extent” they are concerned about people, and not such things as “how much” production they are concerned about getting out of a group.

Concern for production includes the attitude of a manager towards wide variety of things, such as – 3. 4. 5. 6. 7. 8.

Quality of Policy Decision Procedure and Processes Creativeness of Research Quality of Staff Services Work Efficiency Volume of Output

Concern for people is interpreted in a broad way and includes2. Degree of Personal Commitment toward Goal Achievement 3. Maintenance of the Self Esteem of Workers 4. Placement of Responsibility on the basis of Trust rather than Obedience 5. Provision of Good Working Conditions 6. Maintenance of Satisfying Interpersonal Relations

The Managerial Grid

Country club management

Concern for People

1.9

Team managers

5.5

1.1

Impoverished

9.9

Middle of the Road

Task Managers

Concern for production

9.1

The 1.1 Style In this style the managers concern themselves very little with either people or production and have minimum involvement in their jobs. They abandon their jobs and only mark time or act as messengers communicating information from superior to subordinates. This style is referred to as Impoverished Management

The 9.9 Style In this style the manager display in their actions the highest possible dedication both to people and to production. They mesh the production needs of the enterprise with the needs of individuals. This style is referred to as Team Managers

The 1.9 Style In this style the manager display in their actions little or no concern for the production but are only concerned for people. They promote an environment in which everyone is relaxed, friendly, and happy and no one is concerned about putting forth coordinated effort to accomplish organisational goals. This style is referred to as Country Club Management

The 9.1 Style In this style the manager display in their actions the highest possible dedication only to production and developing an efficient operation. They have no concern for people, and they are autocratic in leadership style. This style is referred to as Autocratic Task Managers

The 5.5 Style In this style the manager display in their actions the adequate performance through balance of work requirements and maintain satisfactory morale. This style is referred to as Middle of the Road Managers

SITUATIONAL THEORY OF LEADERSHIP OR LIFE CYCLE THEORY OF LEADERSHIP

The theory is devised by Paul Heresy and Kenneth Blanchard who in this approach shows how well managers can match the appropriate style with the maturity level of the group being led. It focuses on followers maturity. The approach identifies two major styles3. Task Style: The leader organises and define roles for subordinates. The leader explain the task so that each subordinate does it effectively. 4. Relationship Style: The leader have close personal relationship with the members of the group with open communication and psychological support.

Four style of leadership 2. Telling Style: high task low relationship style and is very effective when followers are at very low level of maturity 3. Selling Style: high task high relationship style and is very effective when followers are at low level of maturity. Directive and supportive behaviour are provided by the leader 4. Participating Style: low task high relationship style and is very effective when followers are at high level of maturity 5. Delegating Style: low task low relationship style and is very effective when followers are at very high level of maturity

BOSS AND LEADER BOSS: 2. Drives his men 3. Depends on authority 4. Creates 'fear' 5. He knows 6. "Do it" is his slogan 7. Says "I"

LEADER : 1. Leads his men 2. Depends on goodwill 3. Inspires ‘confidence' 4. He knows and shows 5. Takes the "Let us do it" approach 6, Says - "We".

MANAGEMENT Of CONFLICT

CONFLICT Conflict may occur due to disagreements, Employees and management have divergent interests in allocating resources which leads to conflict.

Conflicts leads to Non-cooperation, arguments, hostility, stress, absenteeism, morcha, gherao, loss of production, strike, lay-offs, lockouts, labour turnover, etc.

Conflicts Resolution 1. Direct observation 2. Open door policy 3. Personnel counselors 4. Suggestion boxes 5. Exit interviews 6. Ombudsman approach 7. Internal tribunal

Problem Solving for Unionized Employees Personnel Department should ensure that – 3. Complaints are investigated and decided on the facts 4. Causes of grievances are genuine and due to personality conflicts 5. Proper grievance procedure is followed involving both union and the management

The grievance handling procedure may not provide a satisfactory solution and that any of the following method of grievance handling may need to be resorted to -

1. Arbitration 2. Mediation 3. Union Management co-operation 4. Prior consultation 5. Joint study committees

COMMUNICATION

What are the most common ways we communicate?

rd o W en Spok

Written Word

ges a m al I u s i V

Bod y La ngu age

Process of sending & receiving messages –Spoken –Written –Nonverbal

The Five Components of Communication Internal

Verbal

1 STIMULAS

3 MESSAGE

External

2 Filter

Non-verbal

Feedback

4

MEDIUM

5 DESTINATION

The Goals of Communications To change behavior

To get and give Information

To persuade

To get action

To ensure understanding

The Communication Process Model Feedback

Thoughts

Encoding

Sender Sender

Transmission Of Message

Noise

Reception

Decoding

Receiver

Understanding

Communication Oral

Written

One-on-one conversations

Memorandums

Meetings

Letters

Phone calls

E-mail

Presentations

Reports

Videoconferences

Miscellaneous

Direction of Communication CEO

Upward

VP-1

VP-2

Downward

Cross-Channel

MGR-1

MGR-2

MGR-3

MGR-4

Lateral

Interpersonal Communication ORAL

WRITTEN

NON VERBAL

Oral Communication 1. Speeches 2. Group Discussions 3. One to one Communication 4. Meetings 5. Grapevine

Advantages 1. Speed 2. Feedback (instant) 3. Early Correction Disadvantages 1. Distortion

Written Communication 1. Letters 2. Electronic Mail 3. Memos 4. Fax 5. House Journals 6. Circulars 7. Notices on bulletin boards

Advantages 1. Tangible 2. Verifiable 3. Record & Storage 4. Carefully written Disadvantages 1. Time Consuming 2. Feedback (lacking)

Nonverbal Communication Advantages 1. Glance 2. Smile 3. Stare 4. Frown 5. Body movements 6. Intonations/emphasis 7. Facial expressions

1. Conveys extent of liking and disliking 2. Conveys relative perceived status between sender and receiver 3. Gives meaning to spoken language

Disadvantages 1. No Record 2. May be different from verbal communication

Formal Small Group Networks In an organization • Formal Network can be complicated. • Hundreds or thousands of people may be involved. • Hierarchy levels may be many.

For simplification we have condensed these networks into three groups of five people each.

CHAIN

It rigidly follows formal chain of command It is rigid three level organization

WHEEL

Central figure to act as conduit for all the group communication. This type of network is found with strong leader.

ALL CHANNEL

Permits all group members to actively communicate with each other. Often used by self-managed teams. All group members are free to contribute no one person has leadership role.

Formal Small Group Networks & Effective Criteria Network Criteria

Chain

Wheel

All Channel

Speed

Moderate

Fast

Fast

Accuracy

High

High

Moderate

Emergence of a leader

Moderate

High

None

Member satisfaction

Moderate

Low

High

Informal Communication Network • Transmits information through nonofficial channels – Business-related – Accurate – Pervasive (all levels) – Rapid – Most active during change – Normal – Accept & pay attention

Characteristics of Grapevine Not controlled by Management. Perceived by most employees as being more believable and reliable than formal communication. It is largely used to serve self interest of the people. Evidence show that 75%of what is carried in grapevine is accurate. Rumors emerge as response to situation that are important and when there is ambiguity. Rumors get spread because of anxiety. Rumors can not be eliminated, but can be minimized.

Suggestions to Reduce Negative Consequences of Rumors Announce timetable for making important decisions. Explain decisions and behaviors that may appear inconsistent or secretive. Emphasize the downside, as well as upside, of current decision of the future plans Openly discuss worst-case-possibilities – it is almost never as anxiety as the unspoken fantasy.

•70 % of a ll our commun ica ti on effor ts a re: •mi sun de rst ood, misi nt erpr eted, rejec ted, d is liked, di st orted, or not hea rd (i n th e sa me l angua ge, sa me cult ur e)!

Barriers to Effective Communication Feedback

Receiver

Sender

Distortion

INTER EST ING FAC TS ABOU T LI ST EN IN G OUT OF THE TOTAL TIME IN COMMUNICATING YOU SPEND–9% IN WRITING –16% IN READING –30% IN SPEAKING –45% IN LISTENING

What causes distortion or the barriers to understanding/listening?

• • • • • •

Perce pti ons La ng uage Se ma ntics Persona l Inter ests Emoti ons Inf lectio ns

• • • • • •

Enviro nme nt – no ise Prec onc eiv ed not ion s/exp ectat ion s Word iness At ten tion span Ph ysi cal he ari ng p rob lem Spee d o f th ou ght

Other Barriers in Communication Management Philosophy Attitudes and opinions Non receptivity/defensive Know-it-all attitude Blocked mind Obstinate person Bias and prejudice Wrong assumptions Different comprehension of reality Emotions

Failure to discriminate Polarization Frozen evaluation Improper assessment of the receiver Secrecy Lack of self confidence Abstractions Premature evaluation tendency Filtering

How can we improve our listening skills? Elimi nat e dist rac tion s Con centrat e Foc us on th e sp eake r Mai ntain an op en m ind Look for non verbal c ues Do n ot re ac t t o emot ive word s Ask que st ion s Sit so y ou c an se e & h ear Av oid preju dic es Take not es Ask for clar if icat ion

STRESS MANAGEMENT

Stress • The physical, psychological, and behavioral reactions experienced by individuals in situations where they feel they are in danger of being overwhelmed. • It is a common experience of people when any demands are placed on them by their work or personal environment.

Definition • Stress is mentally or emotionally disruptive or disquitening influence. • The non specific response of the body to any demands made upon it. -Hans selye • An adaptive response to an external situation that results in physical, psychological, and/or behavioural deviations for organisational participants. - Fred Luthans

“The Fight or Flight Response” When confronted by a threat, your body prepares itself to either stand ground and fight, or to run away.

Classification of Stress (1). EUSTRESS • The stress which results when “good” things happen to us or Positive stress

Classification of Stress

(2). DISTRESS • The stress which results when “bad” things occur or negative stress

Classification of Stress

(3). Neustress • When a person is indifferent to the stress and the result is neutral.

Sources of Stress Stressors External events or stimuli that are responsible for stress.

Characteristics of stressors • Produce state of overload • Evoke incompatible tendencies • Uncontrollable

Potential sources of stress  Environmental factors  Organisational factors  Individual factors

Environmental factors  Economic uncertainty  Political uncertainty  Technological uncertainty  Terrorism

Organisational factors Task demands Role demands Interpersonal demands Organisational structure Organisational leadership Organisation’s life stage

Individual factors Family problems Economic problems Personality

Consequences of stress

Physiological consequences of stress - 1 Short-term effects Speeding up of the reflexes Improved performance Increased muscle function Lower load for the digestion system Stomach troubles Cooling of muscles Increased breathing rate Reduced sensitivity to minor injuries Reduction in allergic reactions

Physiological consequences of stress - 2 Long-term effects Loss of weight High/Low Blood pressure Delayed blood clotting Cardio- Vascular disorders Arteriosclerosis (Thickening of wall of arteries) Exhaustion Heart attack Diabetes Damage to the kidneys Reduction in the immune system Depression in sensory perceptions/responses

Psychological Consequences of Stress - 1 Cognitive Effects Decrease in concentration resulting into diminishing powers of observation. Increase in distractibility resulting into loss of the thread of thinking process. Deterioration of memory in the short as well as long term reducing the span of the memory for recalling & recognition of even familiar things . Reduction in the response speed. Increase in error rate resulting into snap & hurried decisions and errors in manipulative & cognitive tasks. Deterioration in planning & organising disabling the mind to assess accurately the existing & future conditions. Increase in delusions & thought disorders resulting into reduced, powers of objectivity, reality testing & confused thought process.

Psychological Consequences of Stress - 2 Emotional Effects Increase in tension reducing the ability to relax switching off the worries & anxiety. Increase in Hypochondria: imaginary complaints & lack of feeling of well-being & good health. Changes in personality traits: indifferent attitude, untidy & slipshod, over- anxiety, over- sensitivity, hostility, defensiveness, etc. Moral & emotional behaviour: emotional outbursts, lower spirits, a sense of powerlessness, etc. Fall in the self-esteem: a feeling of incompetence, worthlessness, lack of status in the groups or society at large, etc.

Psychological Consequences of Stress - 3 Behavioural Effects Increase in problems of speech : stuttering, stammering, hesitancy, etc. Diminishing interests & enthusiasm :abandoning short-term goals & life objectives, dropping of hobbies, disposing of cherished possessions, drop in energy levels, etc. . Increase in absenteeism: real or imaginary illness, false excuses, etc. . Increase in drug abuse: alcohol, caffeine, nicotine, etc. Disturbance in sleep patterns: either lack of sleep or disturbed sleep. Cynicism: an increasing tendency to be over-critical & sarcastic about the superiors, , colleagues, clients, customers, events, etc. Ignorance of new developments: new people, new systems, new methods, new products, new technology are ignored. Superficial problem-solving : temporary & stop-gap solutions are offered, lack of detailed thinking, lack of follow-up, 'giving-up' tendency. Lack of self -confidence: decrease in the confidence level, avoiding of responsibilities or passing on the buck, etc. Unexpected & bizarre behavioural patterns: odd mannerisms, unpredictable & uncharacteristic behaviour, use of meaningless phrases, threats of suicide.

Physiological & Psychological effects of stress go hand-in-hand and are complementary. They vary from organisation to organisation, situation to situation, time to time and person to person. It is found that some people collapse at the first signs of stress, while others have a great strength to cope with a very high level of stress and do not show any symptoms. We can learn from such people, the secrets of their success in coping with the stress and avoiding a break-down in their personalities.

Strategies of Stress Management Individual Strategies •Time Management Most of us are poor in time management with the result of feeling of work overload, skipping the schedules and the attendant tension. The truth is that that, if we can manage our time efficiently and effectively, we can accomplish twice as much as we can otherwise.

Some of the basic principles of time management are: •Preparing a list of the daily activities to be attended to. •Prioritising the activities as per their importance & urgency. •Re-scheduling the activities as per the priorities. •Following up the schedule of the activities for early completion. •Checking up the activities & taking the corrective action (if any). It is observed that effective time management result$ in: better physical health, better mental health, relaxed feeling in action, higher motivation & enthusiasm, higher efficiency, better job satisfaction, etc.

•Physical Exercise It is rightly said that 'there is a sound mind in a sound body '. A physical' exercise at any age is a must. It helps people to cope with the stress. It is for this reason that people of all ages are seen taking morning walk, jogging, swimming, playing outdoor games like badminton or tennis.- etc:

•Relaxation There are many ways of relaxation at the end of a hectic day of work & stress. We can have relaxation through meditation, hypnosis, biofeedback, yoga, etc. Whatever the method, the main objective is that one must have deep relaxation, where the person feels totally relaxed from the body sensations, At least 15 to 20 minutes a day of deep relaxation releases tension & provides with a pronounce sense of peace of mind. This practice causes significant changes in the blood pressure, heart rate, sleep, concentration, memory, etc.

•Social Support, Man is a social animal. After the basic needs and the security needs are satisfied, an individual needs a social support with a sense of belonging. It is observed that social support plays an important role in relieving stress of the individual, because the person gets friends, colleagues, listeners, and confidence builders who help in networking and thus relieving the harmful stress. This also helps to control the ill effects of stress, by virtue of giving a vent to one's feelings, emotions, fears and frustrations to others, who can understand and possibly try help him/her out.

•

Yoga

Yoga is said to be the most effective way to relieve the stress. Yoga has been used in many. countries for centuries. There are many different aspects of Yoga which are said to be very useful for managing the stress. However, it is advisable that Yoga & Meditation should be followed under some expert's guidance for the maximum benefit to reduce the stress.

Organisational Strategies •Organisation Structure The organisation structure should be properly designed in order to have appropriate authority- responsibility relationships among the employees. It helps to have smooth organisational communication for faster decision making. Too many levels of hierarchy and too much of bureaucracy in day to day working can cause avoidable stress for all employees at all levels. The organisation structure should be simple to understand and easier to follow.

•Organisational Communication This consists of various factors like: oral & written communication; downward, upward & lateral communication; interpersonal & Intergroup communication; grapevine; communication networking; etc. All these factors contribute to the efficiency & effectiveness of the organisation, which in turn affect the employees for their work related stress. Organisational communication with downward and upward channels, equally open for all employees, helps to reduce the work stress.

•Job related activities Job re-design, job analysis, job descriptions, job specifications, job evaluation, job enlargement. job enrichment, job rotation. work-study, etc. are some of the modern tools & techniques for attracting & retaining good employees in the organisation, with the least stressful environment for all.

•Recruitment / Selection / Placement Certain jobs are more stressful than others in the organisation. Individuals differ in their response to stress situations. Individuals with comparatively less experience with an external locus of control tend to be more stress prone. On the contrary, people with more experience with an internal locus of control may adapt better to high stress jobs with a better performance. These factors should be borne in mind while recruiting people. It is necessary to give some kind of an induction training to the new employees in order to orient them to the new organisation culture, so that they can be better prepared to take up the stressful jobs.

•

Training & Development

Appropriate training & development programmes should be organised for employees at all levels from time to time, so that they are updated in their knowledge, skills and attitudes towards their jobs & the organisation. This helps both the management & the employees to reduce the gap between the job requirements on the one hand & the capabilities of the employees on the other. This automatically reduces the possibilities of stressful situations, which can be caused by apprehensions about the changes if any.

•Performance Appraisal There should be a systematic, scientific & periodic performance appraisal system in force for all employees. By this process, both the management & the employees know as to how they are doing & how they should do. Extra-ordinary performers should be rewarded extra-ordinarily. Average performers should be given counselling and the necessary training inputs for improvement. The mediocre/ below average performers should be given a clear idea for their improvement within a stipulated time limit. This helps to reduce the number of stressed employees and others may be relieved to some extent, at least from the unnecessary & avoidable stress.

•Employee Counselling Employee counseling can be classified in two parts: on-the-job counseling and off-the-job counseling. Both these are skilled & sensitive jobs and need qualified & competent staff to do the job of counseling successfully. The objectives of the employee counseling can be three-fold : •to improve the overall organisational efficiency, . •to reduce the employee stress, and •to improve the employee efficiency. Employee counseling, if properly done, can yield very good results not only in terms of reducing the employee stress, but also in terms of improvement in the overall organisational Productivity.

Organisation Culture

Organisation culture represents a complex set of beliefs, expectations, ideas, values, attitudes, shared by the members of an organisation that evolve over time. Organisation culture includes: Routine ways of communicating, such as organisationals rituals and ceremonies and the language commonly used. The norms shared by the individuals and teams throughout the organisation. (e.g. no reserve parking) The dominant value held by the organisation (product quality) The philosophy of the management. The rules of the game for getting along in the organisation. The feeling or climate conveyed.(e.g. physical layout, interactions etc.)

Layers of Organisation Culture

Cultural Symbols Shared Behaviours Cultural Values Shared Assumptions

Cultural Symbols are words, gestures and picture or other physical objects that carry a particular meaning within a culture. Shared Behaviours are norms in the organisation which are more vixsible snd somewhat easier to change than values. Cultural Values represents collective beliefs, assumptions and feelings about what things are good, normal, rational. And valuable. Shared Assumptions represent basic beliefs about reality, human nature, and the way things should be done.

Forming a Culture An organisational culture forms in response to two major challenges that confront every organisation. They are:  External adaptation and survival  Internal Integration

Forming a Culture External adaptation and survival This involves addressing the following issues:  Mission and Strategy: identifying primary purpose and selecting startegies.  Goals: Setting specific targets.  Means: Determining how to pursue the goals.  Measurement: Establishing criteria to determine how well individuals, teams accomplish the goals.

Forming a Culture Internal Integration Internal integration involves addressing the following issues: Language and concepts: Identifying methods of communication and developing a shared meaning for important concepts. Group and team boundaries: Establishing criteria for membership in groups and teams. Power and status: determining the rules of acquiring, maintaining and loose power and status. rewards and punishments: developing systems for encouraging desirable behaviour and discouraging undesirable behaviour.

Method of Maintaining Organisational Culture Methods of Maintaining Organisational Culture: What managers and team pay attention to Reactions to organisational crises Managerial role modeling Criteria for rewards Criteria for selection and promotion Organisational rites, ceremonies, stories

Recruitment of Employee who fit the culture

Organisational Culture

Removal of Employee who Deviate from the culture

Types of Organisation Culture Bureaucratic Culture Clan Culture Entrepreneurial Culture Market Culture

Bureaucratic Culture An organisation that values formality, rules, standard operating procedures, and hierarchical coordination has a bureaucratic culture. concerns of a bureaucratic culture are: - predictability - efficiency and - stability Mangers view their role as as being coordinators and enforces written rules and standards. Tasks, responsibilities, and authority are clearly defined. Employees believe that they “go by the book” as rules and process are clearly defined in the manual..

Clan Culture Tradition, Loyalty, personal commitment extensive socialization, teamwork, self management, and social influence are attributes of clan culture. Its member recognise an obligation beyond the simple exchange of labour for a salary.They understand that contribution to the organisation may exceed any contractual agreement. Long term security is given to the employee in exchange of his loyalty. A clan culture achieves unity through socialisation process.The serve as a mentors and role models of its new members. They have pride in membership and strong sense of identification and recognise their common fate in the organisation. A clan culture generates feelings of personal ownership of a business, a product or an idea.

Entrepreneurial Culture The characteristics of Entrepreneurial culture are: - high level risk taking - dynamism - creativity - experimentation - innovation This culture do not react to changes in the environment – it creats change. They are mostly small to mid-sized companies.

Market Culture Its characteristics are: - achievement of measurable and demanding goals - hard driving competitiveness - Profit orientation In this culture relation between individual and organisation is contractual. The individual is responsible for some level of performance. Organisation promises some level of award in return. There is no promise of security Interaction between superior and subordinates are largely on negotiating performance and reward agreements. It is often tied to monthly, quarterly annual performance goal based profits.

Framework of Types of Cultures Formal Control Orientation

Flexible CLAN CULTURE

ENTREPRENEURIAL CULTURE

BUREAUCRATIC CULTURE

MARKET CULTURE

Stable

Internal External Forms of Attention

Management of organisational Change

Characteristic of organisational change 1. Change basically results from both outside and inside the enterprise. 2. Change takes place in all organisations and in all parts of the organisation but at varying rates of speed and degrees of significance. 3. The enterprise change in several ways. Its technology, structure, procedure and other elements may change.

Forces for change Force Examples -------------------------------------------------------------------------Nature of the workforce More cultural diversity Increase in professionals Many new entrants with inadequate skills Faster and cheaper computers Technology New mobile communication device Deciphering of human genetic code Economic shocks Rise and fall of dot.com stocks Decline in the value of euro Collapse of Enron Corp

Forces for change Force Examples -------------------------------------------------------------------------Competition Global competitors Mergers and consolidations Growth of e-commerce Social trends

Internet chat Increased interest in urban living

World politics

Escalation of hostilities/terrorism Opening markets in China War on terrorism

Resistance to change

Individual Resistance Sources of Individual Resistance to Change Selective information processing

Habit Individual Resistance

Fear of the unknown

Security Economic factors

Organisational Resistance Sources of Organisational Resistance to Change Threat to established revenue allocation Threat to established power relationship

Structural inertia Limited focus of change

Organisational Resistance

Threat to expertise

Group inertia

Overcoming Resistance to Change

1. Education and communication 2. Participation 3. Facilitation and support 4. Negotiation 5. Manipulation and cooptation 6. Coercion

Approaches to Managing Organisational Change Kurt Lewin’s three step change model Unfreezing

Movement

Refreezing

Unfreezing – change efforts to overcome the pressure of both individual resistance and group conformity. Moving – changing, individuals learn to behave in new ways after having convinced that their present behaviour is inappropriate. Refreezing – stabilising a change

Conclusion: Main Points      

1. Change is necessary 2. Become person oriented 3. Take opportunities for Advancement 4. Keep up with technology 5. Introduce change effectively 6. Have Personal Control over Life

GROUP DYNAMICS

Group

Two or more individual, interacting and interdependent, who have come together to achieve particular objectives.

Formal Group

A designated work group defined by the organisation’s structure.

Informal Group

A group that is neither formally structured nor organisationally determined; appears in response to the need for social contact.

Command Group

A group composed of the individuals who report directly to a given manager and is determined by the organisation chart.

Task Group

Those working together to complete a job task and also organisationally determined.

Interest Group

Those working together to attain a specific objective with which each is concerned.

Group Dynamics

Group Dynamics Refers to Changes Which Take Place Within Groups and Is Concerned With the Interaction and Forces Obtained Between Group Members in a Social Setting.

STAGES OF GROUP DEVELOPMENT

The five stage group development model

Stages of Group Development

2. 3. 4. 5. 6.

Forming Storming Norming Performing Adjourning

FORMING

Forming Stage

The first stage in group development, charecterised by much uncertainty.

Forming Stage

Acceptance Within The Group  Dependence On The Group  Safe Patterned Behaviour  Avoiding Controversy 

STORMING

Storming Stage

The second stage in group development, charecterised by intragroup conflict.

Storming Stage

•Conflict And Competition Within The Group •Fear Of Failure •Hostilities Are Formed •Some Members Are Silent •Few Members Are Dominant

NORMING

Norming stage

The third stage charecterised by cohesiveness.

in group development, close relationships and

Norming stage

   

Bonding Among The Group Members Solving Of Personal Issues Leadership Is Shared Sense Of Group Belonging

PERFORMING

Performing Stage

The fourth stage in group development, when the group is fully functional.

Performing Stage 

Members Adjust According To The Needs



Group Is Highly Productive



Group Unity Exist



Emphasis On Achievement

ADJOURNING

Adjourning Stage

The final stage in group development for temporary groups, charecterised by concern with wrapping up activities rather than task performance.

Adjourning Stage

Termination Of Group Disengagement Of Relationships Recognition Of Work Can Create Some Apprehensions

DETERMINANTS OF GROUP BEHAVIOUR

Determinants of group Behaviour The elements of the organisation that will have influence on the group includes: 1.Organisation Strategy 2.Authority Structure 3.Formal Regulations 4.Organisational Resources 5.Procurement of Personnel 6.Performance Appraisal and Reward System 7.Organisational Culture 8.Physical Work Setting

TEAMS vs GROUPS

CRITERIA

GROUPS

TEAMS

Leadership

Formal -established Individual

Shared roles

Skills

Shared and individual Sum of individual Collective and outputs synergistic Diverse Complementary

Orientation

Common goal

Common commitment

Accountability Performance

Difference Between Groups and Teams

Effective Teamwork

Effective Teamwork Organisational success depends on teamwork rather than individual output. Team work depends on: 1.Cooperation 2.Trust 3.Training 4.Rewards

WORK AND CONDITIONS OF WORK

Work

Work is use of individual’s psychological and mental processes in attainment of some goal.

Characteristics of Work

A hypothetical work curve shows that decrement in productivity occurs after productivity reaches to certain level. This fall in productivity will vary according to the type of work

Reasons for Decrement The main reasons for decrement are: 1. Fatigue 2. Boredom

Fatigue

Fatigue is defined as the tiredness of the body as a result of continuous physical activity. Fatigue is reaction of the body to the continuous work. Fatigue can be avoided by introducing authorised rest pauses.

Boredom

Boredom is the reaction of the mind to having to do the same work continuously. It arises from conflict between the necessity for doing a dull job and wanting to turn to more interesting activities.

Creating Favourable Work Environment In order to create favourable work environment and better performance of the employee some changes in the work environment may be implemented. These are: 1. 2. 3. 4. 5.

Noise Music Illumination Colour Atmospheric effects

Organisational Power and Politics

Power and dependence Person B’s counterpower over Person A

Person B

Person A

Person A’s power over Person B

Person B’s goals

The meaning of power Power is the capacity of a person, team or organisation to influence others

© Southland Times/(New Zealand)



the potential to influence others



people have power they don’t use and may not know they possess



power requires one person’s perception of dependence on another person

Model of power in organisations Sources of power Legitimate Reward Coercive Expert Referent

Power over others

Contingencies of power

Consequences of power Sources of power Expert power Referent power Legitimate power

Consequences of power

Commitment

Compliance

Reward power Coercive power

Resistance

Organisational politics 

Attempts to influence others using discretionary behaviours to promote personal objectives 



discretionary behaviours − neither explicitly prescribed nor prohibited

Politics may be good or bad for the organisation

Types of organisational politics Managing impressions

Creating obligations

Attacking and blaming

Types of organisational politics

Cultivating networks

Controlling information

Forming coalitions

Conditions for organisational politics

Personal characteristics

Conditions supporting organisational politics Tolerance of politics

Scarce resources

Complex and ambiguous decisions

Controlling political behaviour Provide sufficient resources

Remove political norms

Introduce clear rules

Hire low-politics employees

Free flowing information

Increase opportunities for dialogue

Manage change effectively

Peer pressure against politics