Unit iii ob at group level

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Learning Block II: Study of OB at Group LevelLearning Block II: Study of OB at Group Level

Graduate Teaching Notes on OB (2015)

Dr Chanakya P Rijal

Nepal College of ManagementIn Affiliation with

Kathmandu University, School of ManagementLalitpur, Nepal

1Dr Rijal's Discourses on OB

UNIT III: WORKING IN GROUPSUNIT III: WORKING IN GROUPS

Section 1: LeadershipSection 1: Leadership

Section 2: CommunicationSection 2: Communication

Section 3: Work GroupsSection 3: Work Groups

Section 4: Work TeamsSection 4: Work Teams

Section 5: Conflict NegotiationSection 5: Conflict Negotiation

Dr Rijal's Discourses on OB 2

Section 1: Leadership in PerspectiveSection 1: Leadership in Perspective

1. Introducing Leadership1. Introducing Leadershipa. Meaningb. Scopec. Functions

2. Selected Perspectives of Leadership2. Selected Perspectives of Leadershipa. Structural functionalist perspectiveb. Political-conflict perspectivec. Constructivist perspectived. Critical humanist perspective

3. Issues Governing Leadership3. Issues Governing Leadership

Dr Rijal's Discourses on OB 3

� Are leaders born?

� Can leadership be learnt?

� What are the determinants of effective leaders and leadership?

� Are leaders different from managers?

� What is the role of leadership in transformation?

Leadership: Learning AgendaLeadership: Learning Agenda

Dr Rijal's Discourses on OB 4

Your mission…is to win our wars…you are

the ones who are trained to fight. Yours is the

profession of arms, the will to win, the sure

knowledge that in war there is no substitute

for victory; That if you lose, the nation will be

destroyed.…General of the US Army

Douglas Macarthur

Dr Rijal's Discourses on OB 5

The most precious commodity with

which the army deals is the individual

soldier who is the heart and soul of our

combat forces.

General J. Lawton Collins,VII Corps Commander, World War II

Dr Rijal's Discourses on OB 6

� The act of leading

� One of the key management process functions.

� Process of influencing people to do something that they might otherwise not do.

� Refers to ‘Getting It Done’.

� An art which defies precise definitions.

� The action through which one or more persons are influenced or guided to behave the way they are expected to.

� Cannot occur without the consent of followers.

Introducing LeadershipIntroducing Leadership

Dr Rijal's Discourses on OB 7

� Leadership ranges from the smallest decision, such as where to eat lunch, to the decisions that affect the directions of nations.

� Attainment of agreement upon goals or purposes is important, but the group or organization is an important part of the leadership process.

� Once individuals turn as successful leaders, they are more likely to accept or seek more challenging opportunities

Introducing LeadershipIntroducing Leadership

Dr Rijal's Discourses on OB 8

Leadership

Influencing people by providing the purpose,

direction, and motivation while operating to

accomplish the mission and improving the

organization.

Dr Rijal's Discourses on OB 9

Influencing� Getting people to do what you want them to

do.

� The example you set is just as important as the words you speak.

� Through your words and example, you must communicate purpose, direction, and motivation.

Dr Rijal's Discourses on OB 10

� Persuades people with a reason to something.

� You must earn their trust: they must know from experience that you care about them and would not ask them to do something particularly dangerous or affective unless there is a good reason, and unless the task is essential to mission accomplishment.

Purpose

Dr Rijal's Discourses on OB 11

� Communicate the way you want the mission be accomplished.

� Prioritize tasks.

� Assign responsibility and communicate; delegate authority when necessary.

� Make sure your people understand the standard.

� Listen, and correct the limitations that oppose your direction.

Direction

Dr Rijal's Discourses on OB 12

� People want direction. They want to be given challenging tasks, training in how to accomplish them, and the resources necessary to do them well. Then they want to be left alone to do the job.

Dr Rijal's Discourses on OB 13

� Motivation gives subordinates the will to do

everything they can to accomplish a mission.

� To motivate your people, give them goals that

challenge them.

� Get to know your people and their capabilities.

� Give them as much responsibility as they can.

Motivation

Dr Rijal's Discourses on OB 14

� When they succeed, praise them.

� When they fall short, give them credit for what they

have done and coach or counsel how to do better

next time.

� Make sure that the example you set is as important

as what you say and how well you manage the

work.

Motivation

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� Actions taken to influence others serve to accomplish operating actions

� Take take those actions that help accomplish the stated goals.

� All leaders execute operating actions, which become more complex as they assume positions of increasing responsibility.

Operating

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� Leaders should strive for improving everything that is entrusted to them, their people, facilities, equipment, training, and all resources.

Improving

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Dr Rijal's Discourses on OB 18

Means Ends

Efficiency Effectiveness

Goals

Low High

wastage attainment

Leadership Vs. Efficiency and Effectiveness

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1. Planning1. Define goals2. Establish strategy3. Develop tactics/subplans

3. Leading1. Direct the people2. Motivate the people3. Resolve the conflicts

2. OrganizingDetermine:1. What to be done2. How to be done3. Who is to do

4. ControllingMotivate activitiesto ensure that theyare accomplishedas planned.

Achieving theorganization’sstated purpose

Leadership as One of the Management Functions

Dr Rijal's Discourses on OB 20

Manager CharacteristicsAdministersA copyMaintainsFocuses on systems and structuresRelies on controlsShort-range viewAsks how and whenEye on the bottom lineImitatesAccepts the status quoClassic good soldierDoes things right

Manager Vs. LeaderManager Vs. Leader

Leader CharacteristicsInnovatesAn originalDevelopsFocuses on peopleInspires trustLong-range perspectiveAsks what and whyEye on the horizonOriginatesChallenges the status quoOwn personDoes the right things

Warren G. Bennis, Managing the dream: leadership in 21st century, journal of

Organizational Change Management, vol. 2, No. 1, 1989, p. 7 Dr Rijal's Discourses on OB 21

PersonalGoal Setting

Elements of Self-Leadership

ConstructiveThought Patterns

DesigningNatural Rewards

Self-Monitoring

Self-Reinforcement

Dr Rijal's Discourses on OB 22

� Weber has defined THREE types of leadership legitimacies:

• Traditional Legitimacy,

• Charismatic Legitimacy, and

• Bureaucratic Legitimacy

Legitimacy - what makes you a leader!

Dr Rijal's Discourses on OB 23

� Legitimacy to control is handed down from the past

� Based on most traditional forms of customs

� Obedience based on loyalty to traditions

� Leadership decisions can be arbitrary

� Leadership authority is limited by the displeasure of

the subjects, and failure to follow traditions

Examples: Kingdoms of China, Egypt, family schools

Pros: Leadership is clearly defined

Cons: Possible irrationalism, easily corrupted

Traditional Legitimacy

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� Based on Inspiration: Vision and projection

� Legitimacy occurs after leader proves him/herself

Examples: Jesus Christ, Hitler, Ghandi

Pros: The leader is not restricted by tradition and

technical knowledge

Cons: Power can be abused, and people can be

mislead into following

Charismatic Legitimacy

Dr Rijal's Discourses on OB 25

� Power is given based on skills, knowledge, and experience.

� Obedience is based on rank which is completed for and earned.

� Structured hierarchy prevails.Examples: Headteacher, Army General, Catholic

ChurchPros: Rational, technically efficient, and favours

levelling of social classesCons: Breeds impersonality and contempt, and stunts

enthusiasm.

Bureaucratic Legitimacy

Dr Rijal's Discourses on OB 26

� Accountability and responsiveness to be the

central aspects.

� External environmental forces likely to create

unexpected pressure.

� Management rigidity to be the strongest enemy

of leadership.

� Nations more likely to go for international jobs.

� Leadership to be applied in every sector.

Future of LeadershipFuture of Leadership

Dr Rijal's Discourses on OB 27

� To set standards and accountabilities for operational outcomes produced at all levels.

� Measure the outcomes to confirm that they have positive relationship with the improvements made.

� Initiate changes for systems improvement to facilitate long term system’s transformation.

� Communicate the problems, prospects, and necessary changes with the external forces, and seek their continued support.

� Create and maintain international partnerships.

� Enhance overall team effectiveness

Roles of Current LeadershipRoles of Current Leadership

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� Systems thinking

� Organizational designing

� Stewardship: share vision

and purpose

� Creating creative tensions

� Teaching for development

Other Important Roles of LeadersOther Important Roles of Leaders

Dr Rijal's Discourses on OB 29

� Do all people want to lead?

� Is it the part of universality of leadership to pay high for the managers from the developed countries?

� Is leadership not dominated by situation?

� Does legacy of leadership have its final definition?

Leadership DilemmasLeadership Dilemmas

Dr Rijal's Discourses on OB 30

� The change or legacy of a good leader will last longer after the leader has left the role.

� Role model unconsciously important role in writing leadership schools

� A school, once it is created, provides a platform to play for all and forever.

� Bad aspects are dominated and ignored.

Leadership EffectsLeadership Effects

Dr Rijal's Discourses on OB 31

2. Leadership in Perspectives2. Leadership in Perspectives� Slater (1995) has defined leadership from four

major perspectives:

� Structural-Functionalist Perspective

� Political-Conflict Perspective

� Constructivist Perspective

� Critical Humanist Perspective Dr Rijal's Discourses on OB 32

Structural Functionalist PerspectiveStructural Functionalist Perspective� This is a dominant perspective of leadership.

� It sees leadership as a set of measurable behavior or skills.

� Includes all functional activities covering planning, organizing, leading, and controlling of the resources for their best utilization to make the institutional operations more cost effective.

Dr Rijal's Discourses on OB 33

Political-Conflict PerspectivePolitical-Conflict Perspective� This perspective contrasts with the structural-

functionalist perspective because it does not see leadership as a set of behavior and skills, rather it sees it as power relationship with the subordinates.

� 'Structure of domination' is the essence of this perspective.

� This perspective can be seen as the relationship between the manager and other members.

Dr Rijal's Discourses on OB 34

Constructivist PerspectiveConstructivist Perspective� This perspective also tends to see leadership as the

leader behaviors and skills.

� It emphasizes that the majority of the behavior and skills become dominated by one or two major behaviors that lead the functioning of other behaviors and skills.

� As its symbolic aspect, this perspective tends to convey the meaning that the underlying dynamic social laws construct the structure of the society.

Dr Rijal's Discourses on OB 35

Constructivist PerspectiveConstructivist Perspective� This perspective disagrees that the social structure

or the social science, and administration are value free.

� Creating and imparting values for life is the essence of this perspective of leadership.

� Since institutions are for providing products or services with value for life, this perspective is instrumental in better understanding the philosophy of leadership.

Dr Rijal's Discourses on OB 36

� This perspective deals with the human relations at the workplace.

� Creating motivating jobs, providing guidance, love and care, and offering a vision for the team, one may be able to establish personally as a leader.

� The indicators of the humanist perspective of leadership are the personality traits, and leader member relations.

Critical Humanist PerspectiveCritical Humanist Perspective

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Perspectives of LeadershipPerspectives of Leadership� To summarize from the various leadership

perspectives, it may be concluded that leader behavior has to be measured in terms of -

� leader's relationship of power position,

� leader’s behavior and skills to add values to the society, and

� leader’s personality traits to figurehead the work teams.

Dr Rijal's Discourses on OB 38

Issues Governing LeadershipIssues Governing Leadership� Political-legal issuesPolitical-legal issues

� Economic issuesEconomic issues

� Socio-cultural issuesSocio-cultural issues

� Technological issuesTechnological issues

� International issuesInternational issues

Dr Rijal's Discourses on OB 39

Selected Leadership Theories

Trait Theories

Behavioral Approaches

Contingency Approaches

Neocharismatic Approaches

Dr Rijal's Discourses on OB 40

Trait Theory� The theories that sought personality, social,

physical, or intellectual traits that differentiated leaders from nonleaders

� The traits are the inherent attributes of the leaders to keep them distinct from others

� For example, Margaret Thatcher, as the prime minister of UK, was recognized for her leadership in terms of her confidence, iron-willed, determined, and decisive.

Dr Rijal's Discourses on OB 41

� A research study was conducted in the 1930s to study the attributes that differentiate the leaders from nonleaders.

� A review of 20 different studies identified nearly 80 leadership traits, though the study was not aimed to identify the leadership traits

� Among the identified traits, only FOUR of them were common to all cases, which included personality, social, physical, and intellectual traits.

Trait Theory

Dr Rijal's Discourses on OB 42

� Earliest approach to study leadership

� Used to identify great persons from masses

� Based on the assumption of -

certain traits = success/effectiveness

� The logic of leadership traits is as basic as height, as complex as intelligence

Trait Theory

Dr Rijal's Discourses on OB 43

How Leaders Differ from Nonleaders?

� According to Kirkpatrick & Locke (1991), leaders can be distinguished from nonleaders on the basis of SIX attributes or traits:

• Drive

• Desire to lead

• Honesty and integrity

• Self-confidence

• Intelligence

• Job-relevant knowledgeDr Rijal's Discourses on OB 44

Important Traits of Effective Leaders

� Personality

� Persuasive

� Persistence

� Patience

� Probity

� Praise giving

� Positive orientation

People BasedPeople Based PossiblePossible PracticalPractical ProgressiveProgressive PreparedPrepared Power-buildingPower-building

13 Ps

Dr Rijal's Discourses on OB 45

Personality Factors for Effective LeadershipCapacity Achievement Responsibility Participation Status

Intelligence Scholarship Honesty Activity Socioeconomic position

Alertness Knowledge Dependability Sociability Popularity

Verbal facility

Athletic accomplishment

Initiative Cooperation

Originality Personality adjustment

Persistence Adaptability

Judgment Aggressiveness Humor

Self-confidence

Desire to excel

Dr Rijal's Discourses on OB 46

Criticisms on Trait Theories of Leadership� The belief that personality traits determine the rate of

success of a leader could easily be challenged because practically it is very hard to distinguish leaders from non-leaders based on personality traits

� There exists a very thin relationship between traits and leader’s success

� Some traits are achieved by birth� Personality traits without motivation are worthless for

success� It does not look like a theory� “Traits Plus Motivation Equals Leadership”

Dr Rijal's Discourses on OB 47

Behavioral Approaches to Leadership

� Pattern of actions used by different individuals determines leadership potential

� Examples� Autocratic, democratic and laissez-faire� Michigan Studies: Employee centered

versus task centered

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Three Approaches to Behavioral Studies

1. Studies Based on Leadership Styles

2. Studies Based on Leadership Dimensions

3. Studies Based on Leadership Grid

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1. Studies Based on Leadership StylesLewin, Lippitt, and White are probably the earliest

contributors of leadership study in a scientific manner.

The authors specialized in leadership styles while conducting a series of research studies in the 1930s at the University of Iowa.

The suggested leadership styles include:

• Autocratic

• Democratic

• Laissez-FaireDr Rijal's Discourses on OB 50

When Quantity of work is important

When Quality of work is important

When Satisfaction with work is important

Which is the Best Style?

Autocratic Democratic Laissez Faire

Most Least

Democratic Autocratic Laissez Faire

Best Worst

Democratic Laissez Faire Autocratic

Most Least

Dr Rijal's Discourses on OB 51

Tannenbaum and Schmidt - Continuum of Leadership Behavior

Autocratic Democratic Laissez-faire

Use of Authority by the Manager

Area of Freedom for Subordinates

Boss- CenteredLeadership

Subordinate- Centered LeadershipDr Rijal's Discourses on OB 52

Optimal Leadership Style Depends Upon:

1.Forces in the Leader

2.Forces in the Subordinate Group

3.Forces in the Situation

Tannenbaum/Schmidt’s Leadership Continuum

Dr Rijal's Discourses on OB 53

2. Studies Based on Leadership Dimensions

Key Contributions

a. Ohio State University Studies

b. Michigan State University Studies

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Ohio State University Studies

Two Dimensions

� Initiating structure: The extent to which a leader is likely to define and structure his/her role and roles of subordinates in the search for goal attainment

� Consideration: The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinates’ ideas, and regard of their feelings

Dr Rijal's Discourses on OB 55

Initiating Structure� Is task oriented� Directs subordinate work activities toward goal

attainment� Typically give instructions, spend time planning,

and emphasize deadlines� Provide explicit schedules of work activities

Consideration� Is mindful of subordinates� Establishes mutual trust� Provides open communication� Develops teamwork

Dr Rijal's Discourses on OB 56

Two Dimensions � Employee Oriented: The leadership dimension in

which the leader emphasizes interpersonal relations; relationship oriented.

� Production Oriented: The leadership dimension in which the leader emphasizes on technical or task aspect of the job; result oriented.

Michigan State University Studies

Similar to Ohio StudiesSimilar to Ohio Studies

Dr Rijal's Discourses on OB 57

Studies Based on Leadership Grid

� Blake and Mouton (1964) represented with the graphical portrayal of the two dimensional view of leadership

� The authors proposed a managerial grid showing the key managerial styles of ‘concern for people’ and ‘concern for production’

� The grid has been developed in a nine-by-nine matrix outlining 81 different leadership styles

Dr Rijal's Discourses on OB 58

The Managerial Grid

0

1

2

3

4

5

6

7

8

9

0 1 2 3 4 5 6 7 8 9

Concern for People

Con

cern

for

Tas

k

(1,9)(1,9)

(9,1)(9,1)

(9,9)(9,9)

(5,5)(5,5)

(1,1)(1,1)

Dr Rijal's Discourses on OB 59

Figure 13.4 B: The Managerial Grid

High

High

Low

Low

Concern for Production

Co

nce

rn f

or

Peo

ple

1,9Country Club ManagementThoughtful attention to the needs of people for satisfying relationships leads to a com-fortable, friendly organization atmosphere and work tempo.

1,1 Impoverished ManagementExertion of minimum effort to get required work done is appropriate to sustainorganization membership.

9,9Team ManagementWork accomplishment is from committed people; interdependencethrough a “common stake” inorganization purpose leads torelationships of trust and respect.

5,5Middle-of-the-Road Management

Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level.

Authority-Compliance 9, 1Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. 60Dr Rijal's Discourses on OB

Leadership Styles

Likert’s System Four

System I—Exploitive Autocratic

System II—Benevolent Autocratic

System III—Consultative

System IV—Participative Group

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Contingency Theories of Leadership

� Leader traits and/or leader behaviors are important aspects but must be taken in context.

That is, the situation matters.

Dr Rijal's Discourses on OB 62

Selected Studies on Contingency Approaches

� Fiedler’s Contingency Theory

� Hersey and Blanchard’s Situational (Life Cycle) Theory

� House’s Path-Goal Theory

Dr Rijal's Discourses on OB 63

LPC: LEAST PREFERRED COWORKER

� Low LPC Score: task-oriented leader

� High LPC Score: relationship-oriented leader

� According to Fiedler, a person is one or the other - it is a fixed personality trait

Dr Rijal's Discourses on OB 64

FIEDLER’S CONTINGENCY THEORY OF LEADERSHIP

A person’s LPC score correlates with:

� Task structure

� Leader/Member relations

� Leader position power

in terms of group effectiveness

Dr Rijal's Discourses on OB 65

Three Elements of Leadership Situations

Leader-member relations: refers to group atmosphere and members’ attitude toward and acceptance of the leader

Task structure: refers to the extent to which tasks performed by the group are defined, involve specific procedures, and have clear, explicit goals

Position power: is the extent to which the leader has formal authority over subordinates

Dr Rijal's Discourses on OB 66

Task-Oriented (low LPC)

Leader is best when situation either favorable or unfavorable

Employee-Oriented (high LPC)

Leader is best when situation is moderately favorable

Dr Rijal's Discourses on OB 67

POSSIBLE USES OF FIEDLER’S THEORY

1.Train leaders in needed style

(Fiedler says no)

2.Match the leader with the job

(Fiedler says this is a good start)

3.Engineer the job to fit the manger

(Fiedler says this is the best approach)

Dr Rijal's Discourses on OB 68

Hersey and Blanchard’s Situational Theory

A contingency approach to leadership that links the leader’s behavioral style with the task readiness (maturity) of subordinates.

Also known as ‘life cycle’ theory.

Dr Rijal's Discourses on OB 69

Situational Leadership

� No single best way to lead� Focus on maturity or readiness of followers

� Ability and willingness

� Adjust emphasis on task and relationship behaviors according to the readiness of followers to perform their tasks

Dr Rijal's Discourses on OB 70

Hersey’s Situational Leadership Model

� Based on� Style of leadership

• Giving direction (task behaviour)• Giving motivational support (relationship

behaviour)

� “Readiness” of followers to perform a task• Ability• Willingness

Dr Rijal's Discourses on OB 71

Situational Leadership

� Telling: low readiness, untrained and inexperienced employees

� Selling: low/moderate readiness, trained but inexperienced employees

� Participating: moderate/high readiness, able but unwilling, employees skeptical

� Delegating: high readiness, employees ready and willing to take responsibility

Dr Rijal's Discourses on OB 72

Hersey and Blanchard’s Situational Leadership Model Defines Relationship Between Maturity and Four Leadership Styles

HighHigh

relationshiprelationship

Low taskLow task

High taskHigh task

HighHigh

relationshiprelationship

LowLow

relationshiprelationship

Low taskLow task

High taskHigh task

LowLow

relationshiprelationship

M1M1

M2M2M3M3

M4M4

Parti

cipat

ing

Del

egat

ing Telling

Selling

HighHigh

LowLow HighHighTask BehaviorTask Behavior

Rel

atio

nshi

p B

ehav

ior

Rel

atio

nshi

p B

ehav

ior

Style of Style of LeaderLeader

ImmatureImmatureMaturityMaturity

AbilityAbility

WillingnessWillingness

M1M1M2M2M3M3M4M4HighHigh ModerateModerate LowLow

This person is able(has the necessaryknowledge and skill)

This person is willing(has the necessary confidence and commitment)

Maturity of Followers

Psychological maturity

Job maturity

A great dealA great deal44

Quite a bitQuite a bit33

SomeSome22

LittleLittle11

UsuallyUsually44

OftenOften33

On occasionOn occasion22

SeldomSeldom11

Dr Rijal's Discourses on OB 73

HOUSE’S PATH-GOAL THEORY OF HOUSE’S PATH-GOAL THEORY OF LEADERSHIPLEADERSHIP

Based on Expectancy Theory of Motivation

A leader should emphasize either path clarification or adjust rewards depending on the factors affecting a person’s motivation

Theory assumes people can change their leadership styles to fit the situation

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Situational ContingenciesThree Important Situational Contingenciesin Path-Goal Theory

The personal characteristics of group members

The work environment The situation

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Path-goal Theory

� Rooted in Expectancy Theory

� Leader behaviors� Directive� Supportive� Achievement-oriented� Participative

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Path-Goal Model of Leadership

Follower CharacteristicsFollower Characteristics1.1. Locus of controlLocus of control2.2. AuthoritarianismAuthoritarianism3.3. AbilityAbility

OutcomesOutcomes1.1. Job satisfactionJob satisfaction2.2. PerformancePerformance3.3. Acceptance of the leaderAcceptance of the leader

FollowersFollowers1.1. PerceptionsPerceptions2.2. MotivationMotivation

Environmental FactorsEnvironmental Factors1.1. TasksTasks2.2. Formal authority systemFormal authority system3.3. Work groupWork group

Leader Behavior StylesLeader Behavior Styles1.1. DirectiveDirective2.2. SupportiveSupportive3.3. ParticipativeParticipative4.4. Achievement-orientedAchievement-oriented

Dr Rijal's Discourses on OB 77

Change Leadership� Transactional Leader: Provides direction for

subordinates to achieve set objectives (typical “good manager” using position power and some personal power).

� Transformational Leader: Special ability to create innovation & change (charismatic leader within an organization – high on position & personal power).

Dr Rijal's Discourses on OB 78

Effects of Change Leadership

Transactional Leadership

Current state ofexpectedsubordinateeffort

Normalexpectedsubordinateperformance

TransformationalLeadership

Heightenedmotivationto attaindesignedoutcome(extra effort)

Subordinateperformancebeyondnormalexpectations

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Transformational Leadership

Transformational Leadership

• Idealized Influence• Inspiration• Intellectual stimulation• Individualized

consideration

Transformational Leadership

• Idealized Influence• Inspiration• Intellectual stimulation• Individualized

consideration

Transactional Leadership

• Contingent reward• Management by

exception (active or passive)

• Laissez faire

Transactional Leadership

• Contingent reward• Management by

exception (active or passive)

• Laissez faire

Performance beyond expectations

Performance beyond expectations

Agreed uponperformance

Agreed uponperformance

Broadening and elevating followergoals

Leader/follower exchange

Dr Rijal's Discourses on OB 80

Characteristics of Transactional LeadershipCharacteristics of Transactional Leadership

� Establishes goals and objectives� Designs work flow and delegates task assignments� Negotiates exchange of rewards for effort� Rewards performance and recognizes

accomplishments� Searches for deviations from standards and takes

corrective actions

Dr Rijal's Discourses on OB 81

Characteristics of Transformational LeadershipCharacteristics of Transformational Leadership

� Charismatic: Provides vision and a sense of mission, gains respect and trust, instills pride.

� Individualized consideration: Gives personal attention, and treats each person individually, coaches.

� Intellectually stimulating: Promotes learning, encourages rationality, uses careful problem solving.

� Inspirational: Communicates high performance expectations, uses symbols to focus efforts, distills essential purposes.

Dr Rijal's Discourses on OB 82

Participative Management Democratic approach of management Employees have autonomy in making and

implementing decisions Leader invites wider participation of the

subordinates in making and selling decisions Exists high degree of delegation of authority Managers listen and value the subordinate

suggestions High degree of customer focus exists A move into TQM process climate

Dr Rijal's Discourses on OB 83

Management by Objectives (MBO) A management system in which specific performance goals

are jointly determined by employees and their managers, progress toward accomplishing those goals is periodically reviewed, rewards are allocated on the basis of the progress in accomplishing the goals.

Goal achievement is the key of MBO. Management approach is driven by the nature of

performance objectives and goals. MBO consists of four elements -- i. goal specificity, ii.

participative decision making, iii. an explicit time period, and iv. performance feedback.

Dr Rijal's Discourses on OB 84

Management by Walking Around (MBWA) A term used to describe when a manager is out in

the work area, interacting directly with employees, and exchanging information about what’s going on.

MBWA is a management control process which follows THREE steps:

Measuring actual performance, Comparing actual performance with the standard

performance, and Taking managerial actions for further

improvement

Dr Rijal's Discourses on OB 85

Management by Exception An alternative approach of management when the

other conventional laws management do not work Difficult to distinguish from charismatic,

transformational, and transactional leadership approaches

Examples: Use negative reinforcement if positive reinforcement

does not work Reward for faulty deeds if punishment does not work Do it yourself to let others know how to follow it Induce unexpected surprising ways to doing things

Dr Rijal's Discourses on OB 86

Learning Organization An organization with exceptional work culture. The most open type of organization. An organizational system in which fear of

ignorance and inability is eliminated through relevant training and development.

People learn through open interactions. Managers value subordinate problems and their

suggestions. Creativity creeps eternally in all members . A move towards TQM process climate.

Dr Rijal's Discourses on OB 87

Key Findings from Leadership Theories� Transformational leaders inspire higher

performance than do transactional leaders.� Effective leaders must be concerned about

accomplishing the task and relationships.� Effective leaders know when to tell, sell,

participate, or delegate.� Effective leaders understand mission and strategy,

know how to implement change, motivate employees to high performance, and operate effectively.

� Effective leaders lead by example and are honest and fair. They inspire confidence.

Dr Rijal's Discourses on OB 88

Reasons for Derailment of Top ManagementRank the following in order of importance. Choose 1 for the reason you feel is most important, 2 for next most important, etc.

a) Betrayal of Trust—failure to meet commitments

b) Cold, aloof, arrogant

c) Overdependence on one’s boss or mentor

d) Insensitive to others: abrasive, intimidating

e) Over-managing: unable to delegate or build a team

f) Unable to think broadly or strategically - too much attention to detail and minor technical problems

g) Unable to adapt to a boss with a different style

h) Unable to select and develop an effective staff

i) Overly ambitious—plays politics, pushes too hard to get ahead

j) Failure to handle specific performance problems - failure to handle problems then not admit the problem, try to cover up or shift blame

Source: “What Makes a Top Executive” by McCall and Lombardo, Source: “What Makes a Top Executive” by McCall and Lombardo, Psychology TodayPsychology Today, February 1983, February 1983Dr Rijal's Discourses on OB 89

Section 2: CommunicationSection 2: Communication

Dr Rijal's Discourses on OB 90

Functions of Communication

Communication Functions

1. Control member behavior.

2. Foster motivation for what is to be done.

3. Provide a release for emotional expression.

4. Provide information needed to make decisions.

Communication Functions

1. Control member behavior.

2. Foster motivation for what is to be done.

3. Provide a release for emotional expression.

4. Provide information needed to make decisions.

Communication

The transference and the understanding of meaning.

Dr Rijal's Discourses on OB 91

Elements of the Communication Process� The sender

� Encoding

� The message

� The channel

� Decoding

� The receiver

� Noise

� FeedbackDr Rijal's Discourses on OB 92

The Communication Process Model

Communication Process

The steps between a source and a receiver that result in the transference and understanding of meaning.

Dr Rijal's Discourses on OB 93

The Communication ProcessThe Communication Process

Channel: The medium selected by the sender through which the message travels to the receiver.

Types of Channels� Formal Channels

• Are established by the organization and transmit messages that are related to the professional activities of members.

� Informal Channels• Used to transmit personal or social messages in the

organization. These informal channels are spontaneous and emerge as a response to individual choices.

Dr Rijal's Discourses on OB 94

Information Richness of Communication ChannelsInformation Richness of Communication Channels

Low channel richness High channel richness

Routine Nonroutine

Dr Rijal's Discourses on OB 95

Direction of Communication

Upward

Downward

Lateral

Dr Rijal's Discourses on OB 96

Interpersonal Communication

� Oral Communication� Advantages: Speed and feedback.� Disadvantage: Distortion of the message.

� Written Communication� Advantages: Tangible and verifiable.� Disadvantages: Time consuming and lacks feedback.

� Nonverbal Communication� Advantages: Supports other communications and

provides observable expression of emotions and feelings.� Disadvantage: Misperception of body language or

gestures can influence receiver’s interpretation of message.

Dr Rijal's Discourses on OB 97

Three Common Formal Small-Group NetworksThree Common Formal Small-Group Networks

98Dr Rijal's Discourses on OB

Small-Group Networks and Effectiveness Criteria

NETWORKS

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

Dr Rijal's Discourses on OB 99

Grapevine� Grapevine Characteristics

� Informal, not controlled by management.

� Perceived by most employees as being more believable and reliable than formal communications.

� Largely used to serve the self-interests of those who use it.

� Results from:• Desire for information about important situations

• Ambiguous conditions

• Conditions that cause anxiety

Dr Rijal's Discourses on OB 100

Computer-Aided Communication� E-mail

� Advantages: quickly written, sent, and stored; low cost for distribution.

� Disadvantages: information overload, lack of emotional content, cold and impersonal.

� Instant messaging� Advantage: “real time” e-mail transmitted straight to the

receiver’s desktop.

� Disadvantage: can be intrusive and distracting.

Dr Rijal's Discourses on OB 101

Emoticons: Showing Emotion in E-Mail

Electronic mail needn’t be emotion free. Over the

years, a set of symbols (emoticons) has evolved that e-

mail users have developed for expressing emotions.

For instance, the use of all caps (i.e., THIS PROJECT

NEEDS YOUR IMMEDIATE ATTENTION!) is the

e-mail equivalent of shouting. The following

highlights some emoticons:

Dr Rijal's Discourses on OB 102

Computer-Aided Communication (cont’d)

� Intranet

� A private organization-wide information network.

� Extranet

� An information network connecting employees with external suppliers, customers, and strategic partners.

� Videoconferencing

� An extension of an intranet or extranet that permits face-to-face virtual meetings via video links.

Dr Rijal's Discourses on OB 103

Barriers to Effective Communication

Filtering

A sender’s manipulation of information so that it will be seen more favorably by the receiver.

Selective Perception

People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

Information Overload

A condition in which information inflow exceeds an individual’s processing capacity.

Dr Rijal's Discourses on OB 104

Barriers to Effective Communication (contd.)

Emotions

How a receiver feels at the time a message is received will influence how the message is interpreted.

Language

Words have different meanings to different people.

Communication Apprehension

Undue tension and anxiety about oral communication, written communication, or both.

Dr Rijal's Discourses on OB 105

Communication Barriers Between Men and Women

� Men talk to:

� Emphasize status, power, and independence.

� Complain that women talk on and on.

� Offer solutions.

� To boast about their accomplishments.

� Women talk to:

� Establish connection and intimacy.

� Criticize men for not listening.

� Speak of problems to promote closeness.

� Express regret and restore balance to a conversation.

Dr Rijal's Discourses on OB 106

“Politically Correct” Communication� Certain words stereotype, intimidate, and insult individuals.

� In an increasingly diverse workforce, we must be sensitive to kown how words might offend others.

� Removed: handicapped, blind, and elderly � Replaced with: physically challenged, visually impaired,

and senior.

� Removing certain words from the vocabulary makes it harder to communicate accurately.

� Removed: death, garbage, quotas, and women.� Replaced with terms: negative patient outcome,

postconsumer waste materials, educational equity, and people of gender.

Dr Rijal's Discourses on OB 107

Cross-Cultural CommunicationCross-Cultural Communication

Cultural BarriersCultural Barriers

� Semantics

� Word connotations

� Tone differences

� Differences among perceptions

Cultural GuideCultural Guide

� Assume differences until similarity is proven.

� Emphasize description rather than interpretation or evaluation.

� Practice empathy.

� Treat your interpretations as a working hypothesis.

Dr Rijal's Discourses on OB 108

Hand Gestures Mean Different Things in Different Countries

Dr Rijal's Discourses on OB 109

Hand Gestures Mean Different Things in Different Countries (contd.)

Dr Rijal's Discourses on OB 110

Communication Barriers and Cultural ContextCommunication Barriers and Cultural Context

High-Context Cultures

Cultures that rely heavily on nonverbal and subtle situational cues to communication.

Low-Context Cultures

Cultures that rely heavily on words to convey meaning in communication.

Dr Rijal's Discourses on OB 111

High-vs.

Low-Context Cultures

Dr Rijal's Discourses on OB 112

Section 3: Work Groups

Dr Rijal's Discourses on OB 113

Definition of a Group

A collection of

individuals, the

members accept a

common task, become

interdependent in their

performance, and

interact with one

another to promote its

accomplishment.Dr Rijal's Discourses on OB 114

What is a Group?� A group is defined as two or more individuals

interacting and interdependent, who have come together to achieve particular goal.

� Group work is often seen as a set of people working together to achieve a common goal.

� To define a group, a group must have certain qualities.

Dr Rijal's Discourses on OB 115

Work Group“each member is conscious about their own and others existence within the group … members have common aims or ideals that to some extent bind them together … members influence and respond to each other in the process of communicating”, (Jaques, 2000).

Dr Rijal's Discourses on OB 116

Characteristics of groupCollection of People

Interaction & Interdependence

Similar Interests

Common goals

Role Differentiation

Dr Rijal's Discourses on OB 117

Why do people join Groups?

� Security� Status� Self-esteem� Affiliation� Power� Goal Achievement

Dr Rijal's Discourses on OB 118

Committee Consortium Panel Jury

Departments Units SBUs Branches

Friendship groups

Interest groups

Grapevines

119Dr Rijal's Discourses on OB

Types of Group There can be different types of groups . The most common way of distinguishing between groups is to categorizing the groups into --

1.Formal groups: Formal groups are deliberately created by the organization in order to help the organizational members achieve some of the important the organizational goals.

2. Informal groups: A group that is neither formally structured nor organizationally determined it appears in response to the need for social contact.

Dr Rijal's Discourses on OB 120

Basic Comprison of Formal and Informal GroupsBasic Comprison of Formal and Informal Groups

Dr Rijal's Discourses on OB 121

1.Command Group� It is determined by the

organizational chart depicting the approved formal connections between individuals in an organization.

Eg: Director, faculty members in a business

school, school head, Teachers, Production, manager and supervisors, etc.

Dr Rijal's Discourses on OB 122

Task groups

� It comprizes some individuals with special interest or expertise, are created by the organizational authorities to work together in order to complete a specific task.

• Examples:

process action teams,

Concurrent engineering teams,

task forces

Project Members

Dr Rijal's Discourses on OB 123

Although group dynamics is generally

associated with informal norms and roles,

formally designated work groups also have

noticeable dynamics.

Example: Committee

Dynamics of Formal work GroupsDynamics of Formal work Groups

Dr Rijal's Discourses on OB 124

Committee

1.Standing committee

� It is a permanent committee in an organization to deal with some specific types of problems that may arise more or less on a regular basis.

� Example:of standing committees include the standing committee in a university to discuss various institutional management issue.

Dr Rijal's Discourses on OB 125

Committee2.Task force or ad-hoc committee

It is a temporary committee formed by organizational members from across various functional areas for a special purpose.

Meeting scan also come under this category.

Dr Rijal's Discourses on OB 126

Nature of Informal Groups� Unofficial

� Focus

� Basis

� Communication

� Guidelines for behavior

� Source of power

� Major concept

� Source of control

� Co –existence

� Environmental Adaptation

Dr Rijal's Discourses on OB 127

Significance of Informal group� Sense of belonging

& security

� Safety valve for emotional problems

� Self image

� Channel of communication

� Authority check

� Reduce supervision

� Social control

� Ventilation

� Innovation

� Performance

Dr Rijal's Discourses on OB 128

Informal groups 1. Interest groups

are formed when a group of employees band together to seek some common objectives, like protesting some organizational policy or joining the union to achieve a higher amount of bonus.

2.Friendship groups

develop among the organizational members when they share some common interest like participating in some sports activities or staging the office drama, etc.

Dr Rijal's Discourses on OB 129

Informal groups Cont…� Reference group are the groups, with which

individuals identify and compare them selves.

� These could be within the organization when a middle level executive compares himself with the higher level executive the .

� The reference group might exist outside the organization as well when an individual compares himself with his batch mates working in other organizations or an ideal group of people he likes to become.

Dr Rijal's Discourses on OB 130

Formation of Groups

A group or team passes through five lifecycle stages.� Forming.� Storming.� Norming.� Performing.� Adjourning.

Dr Rijal's Discourses on OB 131

Stages of Group development

Dr Rijal's Discourses on OB 132

Adjourning/MourningCompletion, ending or evolution

PerformingAchieving the purpose

NormingAgreeing purpose and conduct

StormingResolving differences

FormingInitial meeting together

Stages of Group Formation & PerformanceStages of Group Formation & Performance

133Dr Rijal's Discourses on OB

Cont…

Forming stage.� Initial entry of members to a group.� Members concern’s include:

• Getting to know each other.• Discovering what is considered acceptable behavior.• Determining the group’s real task.• Defining group rules.

Dr Rijal's Discourses on OB 134

Cont…

Storming stage.� A period of high emotionality and tension

among group members.� Members concern’s include:

• Formation of coalitions and cliques.• Dealing with outside demands.• Clarifying membership expectations.• Dealing with obstacles to group goals.• Understanding members’ interpersonal styles.

Dr Rijal's Discourses on OB 135

Cont…

Norming stage.� The point at which the group really begins to

come together as a coordinated unit.� Members concern’s include:

• Holding the group together.• Dealing with divergent views and criticisms.• Dealing with a premature sense of accomplishment.

Dr Rijal's Discourses on OB 136

Cont…

Performing stage.� Marks the emergence of a mature, organized,

and well-functioning group.

� Members deal with complex tasks and handle internal disagreements in creative ways.

� Primary challenge is to continue to improve relationships and performance.

Dr Rijal's Discourses on OB 137

Cont…

Adjourning stage.

� Particularly important for temporary groups.

� A well-integrated group is:

• Able to disband when its work is finished.

• Willing to work together in the future.

Dr Rijal's Discourses on OB 138

It helps shape the behavior of its members, predict the behavior and guide the performance of the group as a whole.

Group Structure

Dr Rijal's Discourses on OB 139

Groups of 5-7 members exercise the best elements of both small and large groups.

Social Loafing - The tendency for individuals to expend less effort when working collectively than when working individually.

Group Structure

Dr Rijal's Discourses on OB 140

Group Structure

1.Size & Composition

� Size is the number of persons in group which affects group behavior and composition is degree of similarity or difference among group members.

� Large groups

� Small groups

Dr Rijal's Discourses on OB 141

Group Structure

2.Roles

� Roles deal with what people do

� Role is a set of position related expected behavior patterns in a social unit

Task Oriented roles

Relation oriented role

Dr Rijal's Discourses on OB 142

Group Structure3. Norms

� Norms are the acceptable standards of behavior shared by group members

� Norms influence the behavior of group members that apply to all group members

� Performance Norms

� Appearance Norms

� Social Arrangement Norms

� Resource allocation norms

Dr Rijal's Discourses on OB 143

Group Structure

4.Status4.Status

� Status is a socially defined rank given to groups or group members by others

� Status symbol

� Status equity

Dr Rijal's Discourses on OB 144

The processes that go on within a work group e.g.

communication patterns, group decision processes,

leader behaviour, power dynamics, conflict

interactions etc.

Synergy, and

Social

Sacilitation

effect.

Group Processes

Dr Rijal's Discourses on OB 145

Complexities of Work Groups

� Diversity

� Communication Gap

� Interpersonal differences

� personal skill competence

� Conflicts

Dr Rijal's Discourses on OB 146

Benefits and dangers� Significant sites of socialization and education –

enabling people to develop a sense of identity and belonging, and to deepen knowledge, skills, and values and attitudes.

� Places where relationships can form and grow, and where people can find help and support.

� Settings where wisdom flourishes.

Dr Rijal's Discourses on OB 147

Section 4: Work Teams

Dr Rijal's Discourses on OB 148

Work Team � temporary or ongoing task group whose

members work together to identify problems, form consensuses about actions to be taken, and implement the most viable ones

� not appropriate for all organizations or in all types of businesses

� to mesh workers into cohesive groups in order to attain a common goal

Dr Rijal's Discourses on OB 149

TYPES OF TEAMSTYPES OF TEAMSWork team: group of individuals who cooperate in completing a set of tasks.

Integrated work team: group that accomplishes many tasks by making specific assignments to members and rotating jobs among them as the tasks require.

Autonomous (or self-managing) work team: given almost complete autonomy in determining how a task will be done.

Entrepreneurial team: group of individuals with diverse expertise and backgrounds.

Quality circles: comprise small groups of employees who work on solving specific problems related to quality and productivity, often with stated targets for improvement.

Dr Rijal's Discourses on OB 150

PUTTING THE TEAM TOGETHER� Forming a team involves a great deal more than just

throwing several people together and assigning them a goal

� Effectiveness of a team begins to diminish over 12 members.

� Ideal size is typically centered around 6 and can drift as high as 9.

� When formal groups are established with large numbers, they inevitably partition into subgroups.

� When considering the size of a team, a firm must also be conscious of the necessity of assembling a diversity of skills and functional expertise

Dr Rijal's Discourses on OB 151

NORMS IN THE TEAM CONCEPT � Teams cannot work effectively to accomplish their

goals if they do not establish norms by which they will operate.

� Group norms are not designed to cover every conceivable situation in which a team might become involved they address only those situations which are significant to the team.

� Not all norms apply to every team member

Dr Rijal's Discourses on OB 152

CONFORMITY TO NORMS � Individuals conform to team norms for a variety of

reasons.

� People generally feel more comfortable in groups whose members share some common personal factors.

� Intelligence is also an important factor in group conformity.

� Situational factors are also integral part in the team concept. Such factors include the size of the group.

Dr Rijal's Discourses on OB 153

Building a team� Successful team building, that creates effective, focused work teams.

� Requires attention to each of the following.

Clear Expectations

1. Has executive leadership clearly communicated its expectations for the team’s performance?

2. Do team members understand?

3. Why the team was created?

4. Is the organization demonstrating constancy of purpose in supporting the team with resources of people, time and money?

5. Does the work of the team receive sufficient emphasis as a priority in terms of the time, discussion, attention and interest directed its way by executive leaders?

Dr Rijal's Discourses on OB 154

Contexts

1. Do team members understand why they are participating on the team?

2. Do they understand how the strategy of using teams will help the organization attain its communicated business goals?

3. Can team members define their team’s importance to the accomplishment of corporate goals?

4. Does the team understand where its work fits in the total context of the organization’s goals, principles, vision and values?

Dr Rijal's Discourses on OB 155

Commitment

1. Do team members want to participate on the team?

2. Do team members feel the team mission is important?

3. Are members committed to accomplishing the team mission and expected outcomes?

4. Do team members perceive their service as valuable to the organization and to their own careers?

5. Do team members anticipate recognition for their contributions?

6. Do team members expect their skills to grow and develop on the team?

7. Are team members excited and challenged by the team opportunity?

Dr Rijal's Discourses on OB 156

Competence 1. Does the team feel that it has the appropriate people participating?

2. Does the team feel that its members have the knowledge, skill and capability to address the issues for which the team was formed?

3. If not, does the team have access to the help it needs?

Charter

1. Has the team taken its assigned area of responsibility and designed its own mission, vision and strategies to accomplish the mission.

2. Has the team defined and communicated its goals; its anticipated outcomes and contributions; its timelines; and how it will measure both the outcomes of its work and the process the team followed to accomplish their task?

Dr Rijal's Discourses on OB 157

Control 1. Does the team have enough freedom and empowerment to feel the

ownership necessary to accomplish its charter? 2. At the same time, do team members clearly understand their

boundaries? 3. How far may members go in pursuit of solutions?

Collaboration 1. Does the team understand team and group process? 2. Do members understand the stages of group development? 3. Are team members working together effectively interpersonally? 4. Do all team members understand the roles and responsibilities of team

members?5. Can the team approach problem solving, process improvement, goal

setting and measurement jointly? 6. Do team members cooperate to accomplish the team charter?

Dr Rijal's Discourses on OB 158

Communication 1.Are team members clear about the priority of their tasks? 2. Is there an established method for the teams to give

feedback and receive honest performance feedback? 3.Does the organization provide important business

information regularly? 4.Do the teams understand the complete context for their

existence?

Creative Innovation 1. Is the organization really interested in change? 2.Does it value creative thinking, unique solutions, and new

ideas?3.Does it reward people who take reasonable risks to make

improvements?4.Or does it reward the people who fit in and maintain the

status quo? 5.Does it provide the training, education, access to books and

films, and field trips necessary to stimulate new thinking?Dr Rijal's Discourses on OB 159

Section 5: Conflict Negotiation

Dr Rijal's Discourses on OB 160

Concept

Conflict is the situation where someone believes that his/her own needs has been denied.

Or

There is a felt discomfort between at least two parties brought into action.

Dr Rijal's Discourses on OB 161

� Conflict Defined…� Is a process that begins when one party perceives that

another party has negatively affected, or is about to negatively affect, something that the first party cares about.• Is that point in an ongoing activity when an interaction

“crosses over” to become an interparty conflict.� Encompasses a wide range of conflicts that people

experience in organizations• Incompatibility of goals• Differences over interpretations of facts

• Disagreements based on behavioral expectations

Dr Rijal's Discourses on OB 162

Any changes or transformation that Any changes or transformation that happens within a group structure, its happens within a group structure, its members, and their working patterns is members, and their working patterns is referred to as group dynamism.referred to as group dynamism.

Forces operating in groups that affect Forces operating in groups that affect group performance and member group performance and member satisfaction.satisfaction.

If the group is an open system that transforms resource inputs into product outputs, group dynamics are the processes through which this transformation is accomplished.

GROUP DYNAMICS & CONFLICT

Dr Rijal's Discourses on OB 163

INTERGROUP DYNAMICS

Dynamics of Intergroup competition

(deal with unhealthy competition after it occurs)� appealing to a common goal that can unite the

groups� getting direct negotiations started between the

groups� identify a common enemy that can unite the

groups� training members of the groups to work

cooperativelyDr Rijal's Discourses on OB 164

Transitions in Conflict Thought

Causes:

• Poor communication

• Lack of openness

• Failure to respond to employee needs

Causes:

• Poor communication

• Lack of openness

• Failure to respond to employee needs

Traditional View of Conflict

The belief that all conflict is harmful and must be avoided.

Dr Rijal's Discourses on OB 165

Transitions in Conflict Thought (cont’d)

Human Relations View of Conflict

The belief that conflict is a natural and inevitable outcome in any group.

Interactionist View of Conflict

The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively.

Dr Rijal's Discourses on OB 166

Functional versus Dysfunctional Conflict

Functional Conflict

Conflict that supports the goals of the group and improves its performance.

Dysfunctional Conflict

Conflict that hinders group performance.

Dr Rijal's Discourses on OB 167

Types of ConflictTask Conflict

Conflicts over content and goals of the work.

Relationship Conflict

Conflict based on interpersonal relationships.

Process Conflict

Conflict over how work gets done.

Dr Rijal's Discourses on OB 168

LEVELS AND TYPES OF CONFLICT

LEVEL OF CONFLICT TYPE OF CONFLICT

ORGANIZATION WITHIN & BETWEEN ORGANIZATION

GROUP WITHIN & BETWEEN GROUP

INDIVIDUAL WITHIN & BETWEEN INDIVIDUAL

Dr Rijal's Discourses on OB 169

Levels and Types of Conflict (Cont.)

Intra-organizational conflictConflict that occurs within an organization.It occurs at various functional levels and

interferes them.Can occur along the vertical and horizontal

dimensions of the organization.

Dr Rijal's Discourses on OB 170

Levels and Types of Conflict (Cont.)

Vertical conflict : Between managers and subordinates working at different levels within an organization.

For example: Conflict between Marketing Manager and Marketing Assistant

Horizontal conflict: Between departments and workgroups.

For example: ??

Dr Rijal's Discourses on OB 171

Levels and Types of Conflict (Cont.)

Intra-group conflictConflict among members of a groupEarly stages of group developmentWays of doing tasks or reaching group's goals

For example: ???

Intergroup conflict:Conflict between two or more groups

For example: ???

Dr Rijal's Discourses on OB 172

Interpersonal Conflict

Between two or more people.Differences in views about what should be doneEfforts to get more resources.Differences in orientation to work and time in

different parts of an organization.

Dr Rijal's Discourses on OB 173

Intrapersonal conflictOccurs within an individualThreat to a person’s valuesFeeling of unfair treatmentMultiple and contradictory sources of

socializationRelated to the Theory of Cognitive Dissonance

What about examples of such conflicts?

Dr Rijal's Discourses on OB 174

Inter-organizational conflictBetween two or more organizationsMay or may not be the competing institutions

Example: Conflict between the marketing channels and logistics support service organizations

Dr Rijal's Discourses on OB 175

Conflict Formation and Handling ProcessConflict Formation and Handling Process

Dr Rijal's Discourses on OB 176

Stage I: Potential Opposition or Incompatibility� Communication

� Semantic difficulties, misunderstandings, and “noise”

� Structure� Size and specialization of jobs� Jurisdictional clarity/ambiguity� Member/goal incompatibility� Leadership styles (close or participative)� Reward systems (win-lose)� Dependence/interdependence of groups

� Personal Variables� Differing individual value systems� Personality types

Dr Rijal's Discourses on OB 177

Stage II: Cognition and Personalization

Positive FeelingsPositive FeelingsPositive FeelingsPositive FeelingsNegative EmotionsNegative EmotionsNegative EmotionsNegative Emotions

Conflict DefinitionConflict DefinitionConflict DefinitionConflict Definition

Perceived ConflictAwareness by one or more parties of the existence of conditions that create opportunities for conflict to arise.

Felt ConflictEmotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility.

Dr Rijal's Discourses on OB 178

Stage III: Intentions

Cooperativeness: Attempting to satisfy the other party’s concerns.

Assertiveness: Attempting to satisfy one’s own concerns.

Cooperativeness: Attempting to satisfy the other party’s concerns.

Assertiveness: Attempting to satisfy one’s own concerns.

Intentions

Decisions to act in a given way.

Dr Rijal's Discourses on OB 179

Dimensions of Conflict-Handling Intentions

Dr Rijal's Discourses on OB 180

Stage III: Intentions (cont’d)

Competing

A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict.

Collaborating

A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties.

Avoiding

The desire to withdraw from or suppress a conflict.

Dr Rijal's Discourses on OB 181

Stage III: Intentions (cont’d)

Accommodating

The willingness of one party in a conflict to place the opponent’s interests above his or her own.

Compromising

A situation in which each party to a conflict is willing to give up something.

Dr Rijal's Discourses on OB 182

Stage IV: Behavior

Conflict Management

The use of resolution and stimulation techniques to achieve the desired level of conflict.

Dr Rijal's Discourses on OB 183

Conflict-Intensity Continuum

Dr Rijal's Discourses on OB 184

Conflict Management Techniques

Dr Rijal's Discourses on OB 185

Stage V: Outcomes� Functional Outcomes from Conflict

� Increased group performance

� Improved quality of decisions

� Stimulation of creativity and innovation

� Encouragement of interest and curiosity

� Provision of a medium for problem-solving

� Creation of environment for self-evaluation and change

� Creating Functional Conflict

� Reward dissent and punish conflict avoiders.Dr Rijal's Discourses on OB 186

Stage V: Outcomes

� Dysfunctional Outcomes from Conflict

� Development of discontent

� Reduced group effectiveness

� Retarded communication

� Reduced group cohesiveness

� Infighting among group members overcomes group goals

Dr Rijal's Discourses on OB 187

Negotiation

Negotiation

A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.

BATNA

The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.

Dr Rijal's Discourses on OB 188

Negotiation Strategies

1. I win, you lose

2. I lose, you win

3. I lose, you lose

4. I win, you win

Dr Rijal's Discourses on OB 189

Bargaining Strategies

Distributive Bargaining

Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation.

Integrative Bargaining

Negotiation that seeks one or more settlements that can create a win-win solution.

Dr Rijal's Discourses on OB 190

Distributive Vs. Integrative Bargaining

Bargaining Distributive IntegrativeCharacteristic Characteristic Characteristic

Available resources Fixed amount of Variable amount ofresources to be divided resources to be divided

Primary motivations I win, you lose I win, you win

Primary interests Opposed to each other Convergent or congruentwith each other

Focus of relationships Short term Long term

Dr Rijal's Discourses on OB 191

Conflict-Handling Intention: Competition Conflict-Handling Intention: Competition � When quick, decisive action is vital (in

emergencies); on important issues.

� Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline).

� On issues vital to the organization’s welfare.

� When you know you’re right.

� Against people who take advantage of noncompetitive behavior.

Dr Rijal's Discourses on OB 192

Conflict-Handling Intention: Collaboration Conflict-Handling Intention: Collaboration

� To find an integrative solution when both sets of concerns are too important to be compromised.

� When your objective is to learn.

� To merge insights from people with different perspectives.

� To gain commitment by incorporating concerns into a consensus.

� To work through feelings that have interfered with a relationship.

Dr Rijal's Discourses on OB 193

Conflict-Handling Intention: Avoidance Conflict-Handling Intention: Avoidance

� When an issue is trivial, or more important issues are pressing.

� When you perceive no chance of satisfying your concerns.

� When potential disruption outweighs the benefits of resolution.

� To let people cool down and regain perspective.

� When gathering information supersedes immediate decision.

� When others can resolve the conflict effectively

� When issues seem tangential or symptomatic of other issues.

Dr Rijal's Discourses on OB 194

Conflict-Handling Intention: Accommodation Conflict-Handling Intention: Accommodation � When you find you’re wrong and to allow a better

position to be heard.

� To learn, and to show your reasonableness.

� When issues are more important to others than to yourself and to satisfy others and maintain cooperation.

� To build social credits for later issues.

� To minimize loss when outmatched and losing.

� When harmony and stability are especially important.

� To allow employees to develop by learning from mistakes.

Dr Rijal's Discourses on OB 195

Conflict-Handling Intention: Compromise Conflict-Handling Intention: Compromise � When goals are important but not worth the effort of

potential disruption of more assertive approaches.

� When opponents with equal power are committed to mutually exclusive goals.

� To achieve temporary settlements to complex issues.

� To arrive at expedient solutions under time pressure.

� As a backup when collaboration or competition is unsuccessful.

Dr Rijal's Discourses on OB 196

Staking Out the Bargaining Zone

Dr Rijal's Discourses on OB 197

The Negotiation

Process

Dr Rijal's Discourses on OB 198

Issues in Negotiation� The Role of Personality Traits in Negotiation

� Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes.

� Gender Differences in Negotiations� Women negotiate no differently from men, although

men apparently negotiate slightly better outcomes.� Men and women with similar power bases use the same

negotiating styles.� Women’s attitudes toward negotiation and their success

as negotiators are less favorable than men’s.

Dr Rijal's Discourses on OB 199

Why American Managers Might Have Trouble in Cross-Cultural Negotiations?

Italians, Germans, and French don’t soften up executives with praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis, accustomed to fast-paced meetings, have no patience for American small talk.

British executives often complain that their U.S. counterparts chatter too much. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians can feel the Americans aren’t paying attention.

Americans often mix their business and personal lives. They think nothing, for instance, about asking a colleague a question like, “How was your weekend?” In many cultures such a question is seen as intrusive because business and private lives are totally compartmentalized.

Dr Rijal's Discourses on OB 200

Third-Party Negotiations

Mediator

A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives.

Arbitrator

A third party to a negotiation who has the authority to dictate an agreement.

Dr Rijal's Discourses on OB 201

Third-Party Negotiations (cont’d)

Consultant

An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.

Conciliator

A trusted third party who provides an informal communication link between the negotiator and the opponent.

Dr Rijal's Discourses on OB 202

Conflict and Unit

Performance

Dr Rijal's Discourses on OB 203

Outcomes of Better Conflict NegotiationsOutcomes of Better Conflict Negotiations

� Agreements: Strive for equitable and fair agreements that last.

� Stronger Relationship: helps to build bridges of goodwill & trust for the future.

� Learning: Greater self awareness & creative problem solving.

� Relationship: Better

� Organizational Culture: conducive

Dr Rijal's Discourses on OB 204