MB0038_Managing Process and OB

8/2/2019 MB0038_Managing Process and OB

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UNIT 1Self Assessment Questions1. Management is the development of people and not the direction of things.Thisdefinition is given by ___Appley ___

2. Management is a distinct process consisting of planning, organizing, actuatingand controlling performed to determine and accomplish the objectives by the use ofpeople and resources..This definition was given by Terry in 1953

3. ___ Management ___ is one of the factors of production together with land,labour and capital.4. Management is a ___Distinct Process_ consisting of such functions as

planning, organizing, staffing, directing and controlling.

5. In recent time, management functions have been regrouped into___. Four__categories.6. Training starts with an ____Organizational ____ analysis.

7. Ceremonial and symbolic role of a manager is called ________Figurehead ___.8. Vocational and on-the-job training programs can be used to develop

___Technical ____ skill.

9. The average manager spent ___32 __ percent of his or her time performingtraditional management.

10. Effective managers spend __ 26 ___ percent of their time in human resourcemanagement

SUMMARY

Organizational behavior (OB) is a field of study that investigates the impact thatindividuals, groups, and structure have on behavior within an organization, thenapplies that knowledge to make organizations work more effectively (Robbins,2003). An effective and efficient manager should focus on two key results.Management functions have been grouped into four categories: planning,organizing, leading and controlling.

The characteristics of management are goal oriented. Economic resource,

distinct process, integrative force, intangible force, a science and an art,

results through others, system of authority and multidisciplinary subject.

Planning involves the process of defining goals, establishing strategies

for achieving these goals, and developing plans to integrate and

coordinate activities. All levels of management engage in planning in their

own way for achieving their preset goals. Organizing involves designing,

structuring, and coordinating the work components to achieve

organizational goal. It is the process of determining what tasks are to be


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done, who is to do, how the tasks are to be grouped, who reports to whom,

and where decisions are to be made. A key issue in accomplishing the

goals identified in the planning process is structuring the work of theorganization.

Leading involves team building, consensus building, selecting and training. Anorganization has the greatest chance of being successful when all of the employeeswork toward achieving its goals. Since leadership involves the exercise of influenceby one person over others, the quality of leadership exhibited by supervisors is acritical determinant of organizational success.Controlling involves monitoring the employees behavior and

organizational processes and take necessary actions to improve them, if

needed. Control is the process through which standards for performance of

people and processes are set, communicated, and applied.

According to Mintzberg (1973), managerial roles are: Informational roles,

Decisional roles and Interpersonal roles. Katz (1974) has identified three

essential management skills: technical, human, and conceptual. Luthans

(1988) found that all managers engage in four managerial activities: (i)

Traditional managementThis activity consists of planning, decision

making, and controlling, (ii) CommunicationThis activity consists of

exchanging routine information and processing paperwork, (iii) Human

resource managementthis activity consists of motivating, disciplining,

managing conflict, staffing, and training, and (iv) Networkingthis activity

involves socializing, politicking, and interacting with outsiders.

1.9 AnswersAnswers to Self Assessment Questions1. Appley

2. 1953

3. Management

4. Distinct Process

5. Four

6. Organizational

7. Figurehead

8. Technical

9. 32

10. 26


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Unit 2

Self Assessment Questions1. Buchanan and Huczynski (1997) have defined Organizations as ___Social __arrangements.

2. Barnard (1938) defined Organizations as system of __Co-operative activities.

3. OB is concerned with the study of the structure, functioning and performance oforganizations, and the behavior of groups and individuals within them. Thisdefinition was given by __Pugh __4. Best Deal retails team is consciously coordinated social unit, composed of agroup of players that functions on a relatively continuous basis to achieve acommon goal or set of goals, and thus, it may best be described as: . AnOrganization (A)

A. An organizationB. A clubC. A companyD. A profit centre

5. The issues related to personality, creativity and motivation are related to__Individual _level of analysis.6. Organization culture and organization structure are aspects related to the

_Organizational level of analysis.7. Eight parameters for level of analysis were proposed by __ Wood _in

1997.

8. Adam Smith stated that organizations and society would reap from the__Division __ of labor.

9. Taylor has proposed ___Scientific __ principles of management.

10. Fayol has proposed ____Administrative ____ theory.11. ___Psychology _ is the science that attempts to measure, explain, and at timeschange the behavior of humans and other animals.12. ___ Social psychology ____ blends the concepts of psychology and sociology.13. Political science studies the behavior of individuals and groups within a

___Political ___ environment.


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Answers1. Social

2. Co-operative

3. Pugh

4. An Organization (A)

5. Individual

6. Organizational

7. Wood

8. Division

9. Scientific10. Administrative

11. Psychology

12. Social psychology

13. Political2.6 SummaryLet us sum up what we have studied in this unit:Organizational behavior (OB) is a field of study that investigates the

impact that individuals, groups, and structure have on behavior within an

organization, then applies that knowledge to make organizations work

more effectively. Specifically, OB focuses on how to improve productivity,

reduce absenteeism and turnover, and increase employee citizenship andjob satisfaction. An organization consists of people and so it is also a social

system.

The field of organizational behavior (OB) draws primarily from the

behavioral science disciplines of psychology, social psychology, and

cultural anthropology. The areas on which OB focuses are individuals who

will often be working within groups, which themselves work within

organizations, as well as all the interrelationships between them. Some of

the specific themes embraced by OB are personality theory, attitudes and

values, motivation and learning, interpersonal behavior, group dynamics,

leadership and teamwork, organizational structure and design, decision-

making, power, conflict, and negotiation. OB is an interdisciplinary field, it

has distinctly humanistic outlook, it is performance oriented, it considers

external environment as critical, it uses scientific method and it has an

applications orientation.

The three broad levels of analysis are at individual level, group level and

organizational level. Further to this, Wood (1997) provides a useful model

for exploring behavioral events. He suggests that different levels of


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analysis can be applied when examining the significance of an

organizational issue. He proposes eight, namely: individual, team, inter-

group, organizational, inter-organizational, societal, international, andglobal.

A large number of people have contributed to the growth of OB as a

discipline. Some of the most important works have been done by Adam

Smith, Frederick Taylor, Henri Fayol, Max Weber, Mary parker Follet,

Abraham Maslow, B. F. Skinner, to name a few. Organizational behavior is

an applied behavioral science that is built upon contributions from a

number of behavioral disciplines. The main areas are psychology,

sociology, social psychology, anthropology, and political science.

UNIT 3

Self Assessment Questions1. Classical Conditioning is a form of associative learning process proposed by

_Pavlov ___.

2. The operant conditioning theory is based on the idea that learning is a function ofchange in ____Overt __ behavior3. Social learning has ___Four __ processes.

4. ___Punishment ____is causing an unpleasant condition in an attempt toeliminate an undesirable behavior5. ____Extinction _____ is eliminating any reinforcement that is maintaining abehavior6. In general, variable schedules tend to lead to ____Higher __ performance

than fixed schedules.

7. The typical OB Modification program follows a __Five ___ step problem-solving

model8. OB Modification has been used by a number of organizations to improve

employee Productivity

9. Continental Airlines lottery system follows a ___Variable-ratio schedule.

10. Forbes magazine used ___Well pay _ to cut its health care costs11. Womens absenteeism rates tend to be __Higher __ than those of men.12. There is a __Negative _ relationship between tenure to absence


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13. Ability to do speedy and accurate arithmetic is called ___Number Aptitude _aptitude.14. Interpersonal intelligence means _____People_ smart.

15. Ability to exert force against external objects is called as __ Static

Strength __ strength.

3.7 SummaryLet us sum up what we have discussed in this unit.Learning refers to a process that enhances the knowledge, skill and

attitude (KSA) of individuals, to increase his/her willingness to adopt those

newly acquired KSA and to implement them at the workplace.

Characteristics of learning are: learning involves change; change must be

relatively permanent; learning is concerned with behavior; and some formof experience is necessary for learning.

There are three theories of learning namely classical conditioning,

operant conditioning, and social learning. Classical Conditioning is a form

of associative learning process proposed by Pavlov. This process involves

presentations of a neutral stimulus along with a stimulus of some

significance. The neutral stimulus does not lead to an overt behavioral

response from the organism. This is called as Conditioned Stimulus (CS).

Significant stimulus evokes an innate, often reflexive, response. This is

called Unconditioned Stimulus (US) and Unconditioned Response (UR),

respectively. If the CS and the US are repeatedly paired, eventually the

two stimuli become associated and the organism begins to produce a

behavioral response to it. It is the Conditioned Response (CR).

The operant conditioning theory is proposed by B.F. Skinner. This is based on theidea that learning is a function of change in overt behavior. Changes in behaviorare the result of an individual's response to stimuli. When a particular Stimulus-Response (S-R) pattern is reinforced (rewarded), the individual is conditioned torespond. Reinforcement is the key element in Skinner's S-R theory. A reinforcer isanything that strengthens the desired response. The social learning theory wasproposed by Bandura. It recognizes the importance of observing and modeling the

behaviors, attitudes, and emotional reactions of others. According to Bandura(1977), most human behavior is learned observationally through modeling: fromobserving others one forms an idea of how new behaviors are performed, and onlater occasions this coded information serves as a guide for action. Social learningtheory explains human behavior in terms of continuous reciprocal interactionbetween cognitive, behavioral, and environmental influences. When a systematicattempt is made to change individuals behavior by directing their learning ingraduated steps, it is called shaping behavior.There are four methods of ShapingBehavior. They are: positive reinforcement, negative reinforcement, punishment,and extinction. Both positive and negative reinforcement result in learning. They


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strengthen aresponse and increase the probability of repetition. Both punishmentand extinction weaken behavior and tend to decrease its subsequent frequency.

The typical OB Mod program follows a five-step problem-solving model:

Identifying critical behaviors, Developing baseline data, Identifying

behavior consequences, Developing and implementing an intervention

strategy, and Evaluating performance improvement.

The biographical characteristics include gender, age, marital status and

tenure. Ability reflects a persons existing capacity to perform the various

tasks needed for a given job and includes both relevant knowledge and

skills (Cummings & Schwab, 1973). Aptitude represents a persons

capability of learning something. In other words, aptitudes are potential

abilities, whereas abilities are the knowledge and skills that an individual

currently possesses. The abilities include intellectual and physical abilities

Answers to Self Assessment Questions1. Pavlov

2. Overt

3. Four

4. Punishment

5. Extinction

6. Higher

7. Five

8. Productivity

9. Variable-ratio

10. Well pay

11. Higher

12. Negative

13. Number Aptitude

14. People

15. Static Strength

Terms Meaning Ability Ability is an Individual's capacity to

perform the various tasks in a job.Learning Learning is a relatively permanent

change in behaviour potentially thatresults from reinforced practice orexperience.

Positive Reinforcement The process of acknowledgingspecific behaviors with positivefeedback, such as a smile, praise orreward.


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Reinforcement The practice of providing positivefeedback to an individual or groups ofindividuals after completion of a

particular project or achievement of aparticular goal.

Unit 4

Self Assessment Questions1. _Terminal values refer to desirable end-states of existence, the goals that aperson would like to achieve during his/her lifetime.

2. Social Recognition is ____Terminal __ value.

3. __ Instrumental ___ values refer to preferable modes of behavior, or means ofachieving the terminal values.

4. Workers who entered the workforce from the early 1940s through the early1960s, are called ___Veterans ____.5. ___ Xers _____ began to enter the workforce from the mid-1980s

6. Power distance measures the ___Social equality _____.7. __Individualism ___ gauges to what extent individuals in a country considerthemselves as distinct entities rather than as members of cohesive groups.8. Hofstede and Bond (1988) have identified a fifth dimension called

____Long-term orientation _______

9. There are __Three ___ components of an attitude

10. Festinger has proposed ______Cognitive Dissonance ____ theory.

11. Self-perception ___ theory proposes that attitudes are used to make sense outof an action that has already occurred rather than devices that precede and guide

action.

4.6 SummaryLet us sum up what we have discussed in this unit:Values represent 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. Types of values

include, ethical/moral values, doctrinal/ideological (political, religious)

values, social values, and aesthetic values. Values build the foundation for


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the understanding of attitudes and motivation of an individual, since; value

has a great impact on perceptions. Values shape relationships, behaviors,

and choices. The more positive our values, more positive are peoplesactions. A significant portion of the values an individual holds is

established in the early years from parents, teachers, friends, and others.

Rokeach, in his Value Survey (Rokeach Value Survey- RVS), proposed two sets ofvalues. They are: Terminal values and Instrumental values. Each set contains 18individual value items. Terminal values refer to desirable end-states of existence,the goals that a person would like to achieve during his/her lifetime. Instrumentalvalues refer to preferable modes of behavior, or means of achieving the terminalvalues.Hofstede proposed four dimensions of national culture: Power distance

(this dimension measures the 'social equality'), Uncertainty avoidance (this

is a representation of a society's tolerance for uncertain situations),Individualism vs. collectivism (individualism gauges to what extent

individuals in a country consider themselves as distinct entities rather than

as members of cohesive groups and collectivism emphasizes on 'social ties

or bonds' between individuals) and Masculinity vs. femininity (this

dimension refers to what extent dominant values in a society emphasizes

masculine social values like a work ethic expressed in terms of money,

achievement and recognition as opposed to feminine social role which

show more concern for people and quality of life).

Attitudes are evaluative statements that are either favorable or

unfavorable concerning objects, people, or events. Attitudes are not the

same as values, but the two are interrelated. There are three components

of an attitude: Cognition (the mental process involved in gaining

knowledge and comprehension), Affect (the emotional or feeling segment

of an attitude) and Behavior (an intention to behave in a certain way

toward someone or something). Festinger (1957), while linking attitudes

with behavior, argued that, any form of inconsistency is uncomfortable

and individuals will attempt to reduce the dissonance. The desire to

reduce dissonance would be determined by the importance of the

elements creating the dissonance, the degree of influence the individual

believes he/she has over the elements and the rewards that may beinvolved in dissonance.

Self-perception theory (Bem, 1967) proposes that attitudes are used to

make sense out of an action that has already occurred rather than devices

that precede and guide action. In contrast to the cognitive dissonance

theory, attitudes are just casual verbal statements and they tend to create

plausible answers for what has already occurred.

Answers to Self Assessment Questions


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1. Terminal

2. Terminal

3. Instrumental

4. Veterans

5. Xers

6. Social equality

7. Individualism

8. Long-term orientation

9. Three

10. Cognitive Dissonance

11. Self-perception


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Glossary Words Meaning Attitude Persons complexes of beliefs and

feelings about specific ideas,

situations, or other people.Ethics An individual's personal beliefs about

what is right and wrong or good andbad.

Job satisfaction The extent to which a person isgratified or fulfilled by his or her work.

Value Stable long lasting beliefs about whatis important in a variety of situations.

Unit 5

1. The heredity approach argues that the ultimate explanation of an individualspersonality is the molecular structure of the ____Genes __

2. One of the most important determinants of the personality of a person isthe_Immediate ____ family

3. Cattell referred to these 16 factors as _____Primary ___factors.4. The MBTI classifies human beings into ___Four _____ opposite pairs5. Locus of control was formulated within the framework of Rotter's

____Social learning ___ theory of personality

6. Holland has proposed __Six ___ themes of people and work environments,within which all jobs can be classified7. ___Enterprising __ person prefers verbal activities in which there are

opportunities to influence others and attain power.

5.5 SummaryLet us sum up what we have discussed in this unit:

The term 'personality' has been derived from the Latin term 'persona'

which means to 'speak through'. The factors affecting personality

development are Heredity, Environment, Culture, Family, and Situation.

Personality Traits are underlying tendencies to behave in a consistent anddistinctive style and they describe the frequency or intensity of a person's

feelings, thoughts, or behaviors. Possession of a trait is, therefore, a

matter of degree. Early research on personality traits resulted in isolating

large numbers of traits, which made it impossible to predict behavior.

According to Sheldon(1940) there is a link between physiological traits and

characteristics of an individual with his behavior. There are basically three

types-endomorph, mesomorph and ectomorph. Cattells (1973) is one of


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the most important personality trait theory, where the number of traits

have been reduced. Cattell referred to these 16 factors as primary factors.

The MBTI classifies human beings into four opposite pairs (dichotomies),base on their psychological opposites. These four opposite pairs result into

16 possible combinations. Many researchers argue that five basic

dimensions underlie all other personality dimensions (e.g; McCrae and

Costa, 1990; Digman, 1997). The five basic dimensions are Extraversion,

Agreeableness, Conscientiousness, Emotional stability, and openness to

experience. A persons perception of the source of his/her fate is termed

locus of control. Locus of control was formulated within the framework of

Rotter's (1954) social learning theory of personality. Rotter (1975) pointed

out that internality and externality represent two ends of a continuum, not

an either/or typology. Internals tend to attribute outcomes of events to

their own control.

Machiavellianism is the term that some social and personality

psychologists use to describe a person's tendency to deceive and

manipulate others for personal gain. Self-esteem is defined as the degree

to which people like or dislike themselves (Robbins, 2003). Self-monitoring

refers to an individuals ability to adjust his or her behavior to external,

situational factors. Individuals high in self-monitoring show considerable

adaptability. Type A personality is a set of characteristics that includes,

being impatient, excessively time-conscious, insecure about one's status,

highly competitive, hostile and aggressive, and incapable of relaxation.Type B personality is rarely hurried by the desire to obtain an increasing

number of things or participate in events demanding an ever-decreasing

amount of time.

According to Holland (1997), workers are not passive victims of their

environments, but actively seek potentially compatible work

environments. If an individuals personality and the work environment

fit that is, if the personality is congruent with the work environment

the individual will most likely enjoy the work and develop and grow in the

career. Matching people to the organizational culture at the time of hiring

should result in higher employee satisfaction and reduced turnover.

Answers to Self Assessment Questions1. Genes

2. Immediate

3. Primary

4. Four

5. Social learning

6. Six


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7. Enterprising


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Glossary Words Meaning Agreeableness A person's ability to get along with

others.

Culture Broadly, social heritage of a group(organized community or society). It isa pattern of responses discovered,developed, or invented during thegroup's history of handling problemswhich arise from interactions among itsmembers, and between them and theirenvironment

Extraversion The quality of being comfortable withrelationships; the opposite extreme,introversion, is characterized by moresocial discomfort

Family Social unit of two or more persons

related by blood, marriage, or adoptionand having a shared commitment to themutual relationship. See alsohousehold

Locus of control The extent to which people believetheir circumstances are a function oftheir own actions versus externalfactors beyond their control

Personality The relatively stable set ofpsychological attributes that distinguishone person from another.

Unit 6 Emotions

Self Assessment Questions1. Subjective emotional responses are the result of ___Physiological ___ changeswithin human bodies.

2. Both feedback from peripheral responses and a __Cognitive ____ appraisal ofwhat caused those responses produce emotions.

3. ___Felt ____ emotions are an individuals actual emotions.

4. Ekman (1999) has found _Six ____ emotions which are universally recognized andapplicable.5. People who suffer from ___Alexithymia ___ rarely cry and are often seen

by others as bland and cold

6. The most popular and accepted mixed model of emotional intelligence is the oneproposed by ___Goleman ___.7. Personal competence comprises of ____Three____ dimensions of emotionalintelligence.8. Social competence comprises of ____Two ____ dimensions


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6.5 SummaryLet us sum up what we have discussed in this unitEmotion is used to designate "a state of consciousness having to do with

the arousal of feelings (Websters New World Dictionary)." It is

"distinguished from other mental states, from cognition, volition, and

awareness of physical sensation." Feeling refers to "any of the subjective

reactions, pleasant or unpleasant" that one may experience in a situation.

There are many theories of emotion. James-Lange Theory proposes that

subjective emotional responses are the result of physiological changes

within human bodies. Cannon-Bard theory proposes that emotion-provoking

events induce the subjective emotional experiences and physiological

arousal simultaneously. Schachter-Singer theory proposes that both

feedback from peripheral responses and a cognitive appraisal of whatcaused those responses produce emotions. How one interprets the

peripheral response will determine the emotion he / she feels. According to

Lazarus' appraisal theory, an individual makes an initial and sometimes

unconscious cognitive appraisal of the situation to decide, if there is a

threat; coping action is taken if necessary; and the individual takes a closer

look and identifies the emotions he or she is feeling. Weiner, in his theory,

proposes that certain attributions produce specific emotions.

Once the initial evaluation has been made, the individual looks at what

caused the event. These attributions of causality can modify the emotion

felt. It is the interaction of the perceived internal and external causes,controllability and outcome that will determine the emotional responses. Felt

emotions are an individuals actual emotions. Displayed emotions are those

that are organizationally required and considered appropriate in a given job.

They are learned. Felt and displayed emotions may be different. This is

particularly true in organizations, where role demands and situations often

require people to exhibit emotional behaviors that mask their true feelings.

There are two Views of Culture and Emotion. In Universality view, it is

believed that emotions are part of human nature and in all cultures

universally the same set of basic emotions. Based on his cross-cultural

research, Ekman (1999) has found six emotions which are universally

recognized and applicable. They are: Anger, Fear, Sadness, Happiness,

Disgust, and Surprise. Women are assumed to experience more frequent

and intense emotions, whereas men are assumed to be emotionally

inexpressive and to have less intense emotional experiences. However,

researchers have argued that the stereotype of men as unemotional is more

accurate for adult targets than for child targets because males learn to

control their emotions as they get older.


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Emotional intelligence is an aggregate of individuals cognition of own and

others' emotions, feeling, interpretation and action as per environmental

demand to manipulate the consequence, which in turn, results in superiorperformance and better human relationship. The most popular and accepted

mixed model of emotional intelligence is the one proposed by Goleman. He

viewed emotional intelligence as a total of personal and social competences.

Personal competence determines how we manage ourselves, whereas social

competence determines how we handle our interpersonal relationships.

Assuming that emotional intelligence is important, the question of

assessment and measurement becomes particularly pressing.

Answers to Self Assessment Questions1. Physiological

2. Cognitive3. Felt

4. Six

5. Alexithymia

6. Goleman

7. Three

8. TwoWords Meaning

Attribution theory Suggests that we attribute causesto behavior based on observationsof certain

Emotions The feelings experienced towardsan object, person or event.

Emotional intelligence A form of intelligence relating to theemotional side of life, such as theability to recognize and manageone's own and others' emotions, tomotivate oneself and restrainimpulses, and to handleinterpersonal relationshipseffectively

Personal competence The set of individual personalitytraits which enable individuals tomanage themselves independently

and capably.Social competence The ability to achieve personalgoals in social interaction whilesimultaneously maintaining positiverelationships with others over timeand across situations


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Unit 7 Perception

Self Assessment Questions1. ___Three ___ factors shape perception of an individual.

2. The Context in which objects or events are seen by individuals also influence theirattention.3. Attribution theory was proposed by ____ Kelley4. __Consensus ___ occurs, if, everyone who is faced with a similar situation

responds in the same way.5. The tendency of individuals to attribute their own successes to internal

factors is called____Self-serving bias _____.

6. The ____Halo effect ___ occurs when we draw a general impression on the basisof a single characteristic.7. The process through which ones reaction is influenced by other persons he hasencountered recently is called ___Contrast effect ___.8. This tendency to attribute ones own characteristics to other people is

called __Projection 9. ___ Self-fulfilling prophecy ___ is the tendency for

someones expectations about another to cause that person to behave in a

manner consistent with those expectations.

10. A negative instance of the self-fulfilling prophecy is called ___Golem Effect______.11. Decision-making occurs as a reaction to a _____Problem __.

12. While making a decision, data are typically received from ___Multiple

____ sources.

13. The rational decision making model proposes ____ Six _____ steps.14. People respond to a problem with a limited information-processing

capability. As a result, people seek solutions that are satisfactory and

sufficient. This is called __ Bounded rationality _______

7.8 SummaryLet us sum up what we have discussed in this unit.Indviduals behave in a given manner based not on the way their external

environment actually, is but, rather, on what they see or believe it to be.

Perception can be defined as s a process by which individuals organize and

interpret their sensory impressions in order to give meaning to their

environment. Since peoples behavior is based on their perception of what

reality is, not on reality itself. Three factors that shape perception of an


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individual are perceiver, target and situation. An important element in

perception is attribution process. Attribution theory (Kelley, 1972) suggests

that when we observe an individuals behavior, we attempt to determinewhether it was internally or externally caused. Internally caused behaviours

are those that are believed to be under the personal control of the

individual. Externally caused behavior is seen as resulting from outside

causes; that is, the person is seen as having been forced into the behavior

by the situation.

Research evidence shows that individuals have a tendency to underestimate

the influence of external factors and overestimate the influence of internal

or personal factors. There is also a tendency for individuals to attribute their

own successes to internal factors, such as, ability or effort while putting the

blame for failure on external factors, such as, luck. This is called the self-serving bias and suggests that feedback provided to employees will be

distorted by recipients. Individuals have a tendency to use a number of

shortcuts when they judge others. An understanding of these shortcuts can

be helpful toward recognizing when they can result in significant distortions.

Any characteristic that makes a person, object, or event stand out will

increase the probability that it will be perceived. It is impossible for an

individual to internalize and assimilate everything that is seen .Only certain

stimuli can be taken in selectively. The halo effect (Murphy & Anhalt, 1992)

occurs when we draw a general impression on the basis of a single

characteristic. Individuals do not evaluate a person in isolation. Theirreaction to one person is influenced by other persons they have

encountered recently. This tendency to attribute ones own characteristics

to other peoplewhich is called projectioncan distort perceptions made

about others. When managers engage in projection, they compromise their

ability to respond to individual differences. They tend to see people as more

homogeneous than they really are. Stereotyping is the process of judging

someone on the basis of our perception of the group to which he or she

belongs. Generalization is not without advantages (Hilton & Hippel, 1996).

Decision-making occurs as a reaction to a problem. Problem is defined as a

discrepancy between some current state of affairs and some desired state,needing attention for alternative courses of action. The awareness that a

problem exists and that a decision needs to be made is a perceptual issue.

Every decision requires interpretation and evaluation of information. The

optimizing decision maker is rational. He or she makes consistent, value-

maximizing choices within specified constraints. This also includes the

resource crunch and other limitations as well. Most decisions in the real

world do not follow the rational model.


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Decision-makers generally make limited use of their creativity. Choices tend

to be confined to the neighborhood of the problem symptom and to the

neighborhood of the current alternative. When faced with a complexproblem, most people respond by reducing the problem to a level at which it

can be readily understood, due to limited information-processing capability.

As a result, people seek solutions that are satisfactory and sufficient. This is

called bounded rationality (Simon, 1947). Individuals operate within the

confines of bounded rationality. They construct simplified models that

extract the essential features.

Answers to Self Assessment Questions1. Three

2. Context

3. Kelley4. Consensus

5. Self-serving bias

6. Halo effect

7. Contrast effect

8. Projection

9. Self-fulfilling prophecy

10. Golem Effect

11. Problem

12. Multiple

13. Six

14. Bounded rationality


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Glossary Words Meaning Attribution theory Suggests that we attribute causes to

behavior based on observations of

certainBounded rationality Concept that decision makers

(irrespective of their level ofintelligence) have to work under threeunavoidable constraints

Halo effect Transfer of goodwill or positivefeelings about one characteristic(such as pleasing appearance) of aproduct or person to another,possibly unrelated, characteristics(such as performance). Contrastswith devil's horns.

Pygmalion effect People tend to live up to what's

expected of them and they tend to dobetter when treated as if they arecapable of success. These are thelessons of The Pygmalion Effect

Attribution theory Suggests that we attribute causes tobehavior based on observations ofcertain

Unit 8 Motivation

Self Assessment Questions1. In Maslows theory, ___ Physiological ____ needs include hunger, thirst, shelter,sex, and other bodily needs2. In theory ____ X _, management assumes employees are inherently lazy and willavoid work3. According to Herzberg, motivators are __Intrinsic ____ factors.

4. Alderfer classifies needs into ___Three ___ categories into hierarchical order.5. The need to excel and to achieve in relation to a set of standards, to strive tosucceed is called need for ____Achievement ____.6. The perceived fairness of the interpersonal treatment used to determine

organizational outcomes is called as ___Interactional Justice ____.

7. Employees should have __Tangible _ and specific goals.8. Rewards should be __Contingent ____ on performance

9. MBO and __Goal-Setting ___Theory is closely linked

10. Employee Recognition Programs has close link with _Reinforcement______Theory11. The professional employees likely to seek more __Intrinsic ___ satisfaction fromtheir work than blue-collar employees.


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12. Temporary workers may be motivated if they are provided with

___Permanent __ job opportunity.

8.7 SummaryLet us sum up what we have discussed in this unit:Motivation is the processes that account for an individuals intensity,

direction, and persistence of effort toward attaining a goal. According to

Maslows theory, human beings have five needs, which influence their

behavior. Those five needs are Physiological, Safety, Social, Esteem, and

Self-actualization needs. In theory X and Y, McGregor argued that a

managers view of the nature of human beings is based on a certain

grouping of assumptions and he or she tends to mould his or her behavior

toward employees according to these assumptions. Herzberg (1959)

constructed a two-dimensional paradigm of factors affecting people'sattitudes about work. These two factors are motivators and hygiene factors

and this theory is also called motivation-hygiene theory.

Alderfer classified needs into three categories into hierarchical order. They

are: the existence category, the Relatedness category and the Growth

category. This theory is very similar to Maslows theory. Existence need

corresponds with Maslows physiological and safety needs, Relatedness

need corresponds with Maslows social needs and Growth need

corresponds with Maslows esteem and self-actualization needs.

McClellands theory focuses on three needs: achievement, power, and

affiliation. According to this theory, people with high need for achievementhave a compelling drive to succeed. Individuals high in need for power

enjoy being in charge of any situation. Individuals with high need for

affiliation motive strive for friendship, prefer cooperative situations rather

than competitive ones, and desire relationships that involve a high degree

of mutual understanding.

Cognitive Evaluation theory proposes that when extrinsic rewards are used

by organizations as payoffs for superior performance, the intrinsic rewards,

which are derived from individuals doing what they like, are reduced. Goal-

Setting Theory proposes that challenging goals produce a higher level of

output than do the generalized goals. More difficult the goal, the higher the

level of performance will be. Reinforcement theory argues that

reinforcement conditions human behavior. According to this theory,

behavior is a function of its consequences. Behavior is environmentally

caused.

According to Equity theory, employees make comparisons of their job

inputs and outcomes relative to those of others. If, an individual perceives

the input-outcome ratio to be equal to that of the relevant others with


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whom he/she compares his/herself, a state of equity is said to exist. He/she

perceives the situation as fair. If the ratio appears to be unequal, the

individual experience inequity. Expectancy theory argues that the strengthof 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.

8.9 AnswerAnswers to Self Assessment Questions1. Physiological

2. X

3. Intrinsic

4. Three

5. Achievement6. Interactional Justice

7. Tangible

8. Contingent

9. Goal-Setting

10. Reinforcement

11. Intrinsic

12. Permanent


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Glossary Words MeaningExpectancy theory Suggests that people are motivated

by how much they want something

and the likelihood they perceive ofgetting it.

Self-Esteem The extent to which a person believeshe or she is a worthwhile anddeserving individual

Motivation The forces within an individual thataffect his or her direction, intensityand persistence of voluntary behavior.

MBO Management by objectives A collaborative goal-setting processthrough which organizational goalscascade down throughout theorganization

Unit 9 Leadership

Self Assessment Questions1. __Aristotal __ may be said to be a proponent of The Great Man Theory.

2. _Stogdill_ is one the main scholars of trait theory approach to leadership.

3. McCall and Lombardo (1983) researched both success and failure identified __Four __ primary traits by which leaders could succeed or 'derail'4. This theory was developed by the scholars from Ohio State University during

_1940-1950

5. The modifications were made by Robert R Blake and __Anne AdamsMccanse ___to covert the managerial grid into a leadership grid.

6. A __Participative __ Leader, rather than taking autocratic decisions,

seeks to involve other people in the process, possibly including

subordinates, peers, superiors and other stakeholders.

7. __ Likert __identified four main styles of leadership, in particular around decision-making.8. _Lewin ____ and colleagues did leadership decision experiments in 1939

and identified three different styles of leadership, in particular around

decision-making.

9. Major contribution towards development of situational leadership is made byHersey and Blanchard

10. The ___Path Goal Theory __ of Leadership was developed to describe the waythat leaders encourage and support their followers in achieving the goals they havebeen set by making the path that they should take clear and easy.


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11. In this model leadership is effective when the leaders style is appropriate to thesituation, this is proposed in the contingency model developed by _Fiedler ____.12 Transactional leadership is related to management theories.13. _ Transformational ___leadership is based on relationship rheories.14. The transactional leadership style was first described by _Max Weber _

in 1947

15. A leader asking the subordinate How may I help you?__ Servant Leader _____16. Such leaders focus on structure, strategy, environment,

implementation, experimentation, and adaptation. ____Structural Leader

______

9.8 Summary

Let us sum up what we have discussed in this unit:Leadership is a means of directing. It is the ability to influence a group

towards the achievement of goals. It is the human factor that helps a group

identify where it is going and then motivates it towards its goals. According

to Drucker, "Leadership is the lifting of mans visions to higher sights, the

raising of man's performance to a higher standard, the building of man's

personality beyond its normal limitations.(1954).

Aristotle may be said to be a proponent of The Great Man Theory as he is

quoted as saying, Men are marked out from the moment of birth to rule or

be ruled. This theoretical perspective was developed further by historians

who studied the lives of respected leaders for clues to their greatness but ithas never become part of mainstream organizational psychology. The

major assumptions are leaders are born and not made and great leaders

will arise when there is a great need. Stogdill is one the main scholars of

trait theory approach to leadership. Two of Stogdill's surveys established

certain traits which were consistent of leaders. These surveys took place

from the 1930s-1950s.Behavioural theory was developed by the scholars

from Ohio State University during 1940-1950s. The study was conducted

to understand what behaviors make the leaders effective?Similar

research was also conducted at University of Michigan and Harvard

University.

The Managerial Grid was modified by Robert R Blake and Anne Adams

McCanse. and it was named as Leadership Grid. Leadership Grid is an

approach to understanding a leaders concern for results (production) and

concern for people. Kurt Lewin and colleagues did leadership decision

experiments in 1939 and identified three different styles of leadership, in

particular around decision-making. These areAutocratic, Democratic and

Laissez-faire. Rensis Likert identified four main styles of leadership, in

particular around decision-making and the degree to which people are


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involved in the decision. Situational leadership theories in organizational

studies are a type of leadership theory, leadership style, and leadership

model that presumes that different leadership styles are better in differentsituations, and that leaders must be flexible enough to adapt their style to

the situation they are in.This was developed by Hersey and Blanchard.

The Path-Goal Theory of Leadership was developed to describe the way

that leaders encourage and support their followers in achieving the goals

they have been set by making the path that they should take clear and

easy. Relationship theories (also known as Transformational theories)

focus upon the connections formed between leaders and followers. These

leaders motivate and inspire people by helping group members see the

importance and higher good of the task. Transactional leadership is based

in contingency, in that reward or punishment is contingent uponperformance. Management theories (also known as Transactional

theories) focus on the role of supervision, organization, and group

performance. The Four Framework Approach, Bolman and Deal (1991)

suggest that leaders display leadership behaviors in one of four types of

frameworks: Structural, Human Resource, Political, or Symbolic.

9.10 AnswersAnswerss to Self Assessment Questions1. Aristotal

2. Stogdill

3. Four

4. 1940-1950

5. Anne Adams Mccanse

6. Participative

7. Likert

8. Lewin

9. Hersey and Blanchard

10. Path Goal Theory11. Fiedler

12. Transactional

13. Transformational

14. Max Weber

15. Servant Leader

16. Structural Leader


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Glossary Words MeaningLeadership The process of influencing people and

providing an environment for them to

achieve team or organizationalobjectives.

Leadership Grid A model of leadership developed byby Robert R Blake and Anne AdamsMcCanse,to indicate the leadershipeffectiveness based on the concernfor people and concern for task

Unit 10 Group Behavior

1. Formal groups come into existence for serving a specific ___Organizationalpurpose.

2. A ____ Informal ____ group is neither formally structured nor organizationallydetermined.

3. All command groups are also __Task __ groups.4 In the ___Forming ___ stage the members are entering the group5. The ___ Adjourning ____ stage of group development is especially

important for the many temporary groups that are rampant in todays

workplaces.

6. Organizations have ___Authority ___ structures that define who reports to whom,who makes decisions, and what decisions individuals or groups are empowered tomake.7. The more formal regulations that the organization imposes on all its

employees, the more the behavior of work group members will be

Consistent and _predictable ___.

8. Attributes that have a positive connotation in our culture tend to be ___ Positively__ related to group productivity, morale, and cohesiveness9. No ___Single __ personality characteristic is a good predictor of group

behavior.

10. By watching and imitating ___Senior ___ members of a group the new comerslearn how to take on their roles effectively and also learn how to play them well.11. Role __Expectations __ is tuning oneself and behaving in a socially desirablemanner is a part of fulfilling role expectations in a given situation in the context ofachieving group goals and organizational goals.12. When a group member is faced with the challenge of playing multiple

roles, role _Conflict ___ may occur

13. All groups have ___ Norms __ acceptable standards of behavior that areshared by the groups members.


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14. Social arrangement ___norms come from informal work groups and

primarily regulate social interactions within the group.

15. The ___Reference __ group is characterized as one where the person is awareof the others16. Status is a ____Socially __ defined position or rank given to groups or groupmembers by others.17. When status inequity is perceived, it creates Disequilibrium that

results in corrective behavior.

18. Schein observes that groups may make decisions through __Six __ methods.19. In Decision by___Minority rule ___, two or three people are able to

dominate the group into making a decision to which they agree.

20. Team building is a ___ Collaborative _____ way to gather and analyze data toimprove teamwork.21. In _____Cross-functional_____ team Employees from different work

areas but from same hierarchical level, come together to accomplish a

task.

10.11 SummaryLet us sum up what we have discussed in this unit:A group may be defined as a collection of two or more people who work

with one another regularly to achieve common goals. Groups can be of two

types: Formal and Informal. Formal groups come into existence for serving

a specific organizational purpose. Individuals behaviors in this type of

group is aimed at achieving organizational goals. An informal group is

neither formally structured nor organizationally determined. The Five-

Stage Model of group development has five stages: Forming, Storming,

Norming, Performing and Adjourning.

Punctuated equilibrium model of group development proposes that

temporary groups with deadlines do not seem to follow the model

explained above. Rather, they follow it Phase I, transition and Phase II. All

work groups are part of larger systems and organizations and therefore

cannot exist or work in isolation. It is therefore influenced by mainly

external factors which include organizational strategy, authoritystructures, rules and regulations, access to resources, physical work

conditions and organizational culture and performance systems and

reward structures. All groups have norms acceptable standards of

behavior that are shared by the groups members.

Norms serve as a guideline for members detailing what they ought and

ought not to do under certain circumstances. Though a work groups

norms are unique, yet there are still some common classes of norms. A

team is a small group of people with complementary skills, who work


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actively together to achieve a common purpose for which they hold

themselves collectively accountable (Katzenbach & Smith, 1993). Team

building is a collaborative way to gather and analyze data to improveteamwork (Schermerhorn et al 2002).

10.13 AnswersAnswers to Self Assessment Questions1. Organizational

2. Informal

3. Task

4. Forming

5. Adjourning

6. Authority

7. Consistent, predictable

8. Positively

9. Single

10. Senior

11. Expectations

12. Conflict

13. Norms

14. Social arrangement

15. Reference

16. Socially

17. Disequilibrium

18. Six

19. Minority rule

20. Collaborative

21. Cross-functional

Words MeaningGroupthink The tendency of highly cohesive

groups to value consensus at the price

of decision quality.Formal Group A designated work group defined by

the organization's structureRole Role is a set of norms or expectations

applied to the incumbent of aparticular position by the roleincumbent and the various other roleplayers

Norms Acceptable standards of behavior thatare shared by the groups members.


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Team A small number of people withcomplementary skills who arecommitted to a common purpose,

common performance goals, andapproach for which they holdthemselves mutually accountable

Unit 11 Power and Politics

Self Assessment Questions1. Formal power may be categorized into__Four ____ types.

2. The opposite of coercive power is __Reward ____ power

3. Expert power is relative, not _____Absolute ___.4. Where success is less predictable, managers are more likely to use

__Assertiveness ___ and sanctions to achieve their objectives5. US people prefer use of reason in contrast to China where Coalition as a

tactic is preferred

6. ___Empowerment____ is the process by which managers help others to acquireand use the power required to make decisions affecting both themselves and theirwork.7. When an organization attempts to move power down the __Hierarchy __,

it must also alter the existing pattern of position power

8. Successful coalitions have been found to contain __Fluid ____ membership.

9. More coalitions are likely be created where there is a great deal of task andresource ___ Interdependence ______.

10. Coalition formation will be influenced by the ____ Actual ______ tasks thatworkers perform.11. Organizational politics is viewed as the art of creative _____Compromise ___among competing interests12. Employees who are _____. High ___ self-monitors, possess an internal locus ofcontrol13. The ___Machiavellian _____ personality is comfortable using politics as

a means to further his/her self-interest and does not see it as an unethical

action.

11.7 SummaryLet us sum up what we have discussed in this unit:Power is the ability to make things happen in the way an individual wants,

either by self or by the subordinates. The essence of power is control over

the behavior of others (French & Raven, 1962). Managers derive power


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from both organizational and individual sources. These sources are called

position power and personal power, respectively. In an organizational

context leadership and power are related to each others. Power is used byleaders as a means to attain group goals. In other words, power is a

means of facilitating their achievement of goals and objectives that they

have set for themselves in view of organizational requirements.

Power can be categorized into two types: Formal and informal. Formal

Power: is based on the position of an individual in an organization. Formal

power is derived from either ones ability to coerce or reward others or is

derived from the formal authority vested in the individual due to his/ her

strategic position in the organizational hierarchy. Formal power may be

categorized into four types: Coercive Power, Reward Power, Legitimate

Power, Information Power.

Personal power resides in the individual and is independent of that

individuals position. . Three bases of personal power are expertise,

rational persuasion, and reference. Using position and personal power well

to achieve the desired influence over other people is a challenge for most

managers. There are many useful ways of exercising relational influence.

The most common strategies involve: Reason, Friendliness, Coalition,

Bargaining, Assertiveness, Higher authority, and Sanctions.

Empowerment is the process by which managers help others to acquire

and use the power required to make decisions affecting both themselvesand their work. Moreover, today, managers in progressive organizations

are expected to be competent at empowering the people with whom they

work. Rather than concentrating power only at higher levels as found in

the traditional pyramid of organizations, this concept views power to be

shared by all working in flatter and more collegial structures. Individuals

who lose power or are out of power seek to increase their power

individually. If they fail to do so then the alternative is to form a coalition

an informal group bound together by the active pursuit of a single issue.

The natural way to gain influence is to become a power holder but this

may be difficult, risky, costly, or impossible. Politics is defined as those

activities that are not required as part of ones formal role in the

organization, but that influence, or attempt to influence, the distribution of

advantages and disadvantages within the organization.

Organizational politics is the management of influence to obtain ends not

sanctioned by the organization or to obtain sanctioned ends through non-

sanctioned means and the art of creative compromise among competing

interests.


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11.9 AnswersAnswers to Self Assessment Questions1. Four

2. Reward

3. Absolute

4. 1.Assertiveness

5. Coalition

6. Empowerment

7. Hierarchy

8. Fluid

9. Interdependence

10. Actual

11. Compromise

12. High

13. Machiavellian


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Glossary Words MeaningDelegation Delegation is defined as granting

decision-making authority to people

at lower levelsEmpowerment Sharing power in such a way that

individuals learn to believe in theirability to do the job.

Expert power The extent to which a person controlsinformation that is valuable tosomeone else.

Power Power is the social force that allowsselect persons to mobilize others; toorganize others to act in concert; andto melt away resistance to leadersauthority.

Politics Politics is the use of power to

develop socially acceptable ends andmeans that balance individual andcollective interests.

Unit 12 Conflict Management

Self Assessment Questions1. Who defines conflict "As any situation in which incompatible goals, attitudes,emotions or behaviours lead to disagreement or opposition between two or moreparties." __________

2. Conflict can occur when individuals or groups perceive they havemutually _________ goals or values

3. Intrapersonal conflict may be of _________ types.4. _____________________ conflict occurs when a person must choose betweentwo negative and equally unattractive alternatives.5. _________ conflict occurs among members of different teams or groups6. Conflict occurs whenever ____________ exist in a social situation over

issues

7. The ___________ View of conflict encourages conflict on the grounds that aharmonious, peaceful, tranquil, and cooperative group is prone to becoming static

and non-responsive to needs for change and innovation8. ___________ conflict relates to the content and goals of the work.

9. Communication becomes a source of conflict due to _________ in thecommunication channels.

10. The potential for conflict is greatest where group members are __________ andturnover is __________ .

11. Personal variables include individual value systems and ___________characteristics.


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12. There are ___________ direct approaches to conflict management.13. ____________ occurs when each party gives up something of value to theother.

14. ___________________ is a process where conflicts are reported to the

senior levels to reconcile and solve.

15. There are __________ general approaches to negotiation.16. _________ bargaining strategy is adopted to create a win-win solution.17. Personality traits have no significant ________ effect on the bargaining

process or negotiation outcomes.

12.6 Summary

Let us sum up what we have discussed in this unit:Conflict occurs whenever disagreements exist in a social situation over

issues (work related or personal). Conflict 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 (Thomas,

1992). Conflict can be either constructive or destructive. Constructive

conflict prevents stagnation, stimulates creativity, allows tensions to be

released. However, excessive levels of conflict can hinder the

effectiveness of a group or an organization, lessens satisfaction of group

members, increases absence and turnover rates, and, lowers productivity.

Functional, constructive forms of conflict support the goals of the group

and improve its performance.

Conflicts that hinder group performance are dysfunctional or destructive

forms of conflict. Task conflict relates to the content and goals of the work.

Low-to-moderate levels of task conflict are functional and consistently

demonstrate a positive effect on group performance because it stimulates

discussion, improving group performance. Relationship conflict focuses on

interpersonal relationships. These conflicts are almost always

dysfunctional and the friction and interpersonal hostilities inherent in

relationship conflicts increase personality clashes and decrease mutual

understanding.

People at work may encounter conflict at the intrapersonal level (conflictwithin the individual), the interpersonal level (individual to- individual

conflict), the inter-group level, or the inter-organizational level. Negotiation

is a process in which two or more parties exchange goods or services and

attempt to agree upon the exchange rate for them (Robbins, 2008). There

are two general approaches to negotiation: distributive bargaining and

integrative bargaining

Answers to Self Assessment Questions1. R. W Woodman


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2. Exclusive

3. Disagreements

4. Inter-actionist5. Task

6. Three

7. Avoidanceavoidance

8. Inter-group

9. Noise

10. Younger, high

11. Personality

12. Five

13. Compromise

14. Hierarchical Referral

15. Two

16. Integrative

17. Direct

Words Meaning Avoidance The opportunity to avoid or escape

from an unpleasant circumstance afterexhibiting behavior. Avoidance occurswhen the interacting parties' goals areincompatible and the interactionbetween groups is relativelyunimportant to the attainment of thegoals

Accommodation Occurs when the parties' goals arecompatible and the interactionbetween groups is relativelyunimportant to the goals' attainment

Conflict A disagreement among parties. It hasboth positive and negativecharacteristics

Negotiation The process in which two or moreparties (people or groups) reachagreement even though they have

different preferences

Unit 13 Stress

Self Assessment Questions1. Insomnia is __________.

2. Positive stress is called ________.


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3. Negative stress is called ___________.4. ______________is created when role expectations are not clearly understood.5. Those with an ____________ locus of control believe they control their owndestiny.6. ______________ The confidence in ones own abilities appears to decrease

stress.

7. Stress shows itself in _________ ways8. ____________________ is the simplest and most obvious psychological

effect of stress.

9. ______________physical exercise has long been recommended as a way todeal with excessive stress levels.

10. Individuals can teach themselves to reduce tension through _____________techniques, such as, meditation.

11. Improved personnel selection and job placement leading to right______________ thereby reducing chances of non-performance and stress level.12. The stress reaction is triggered by our __________________ of danger

13. Electronic biofeedback can help you gain __________________ control

over such things as muscle tension

14. _________ elements are common to most definitions of crisis.15. There are __________ types of organizational crises

13.8 SummaryLet us sum up what we have discussed in this unit:Stress has been defined as a physical, mental or emotional response to

events which cause mental or bodily tension. In the modern day life stress

is a part and parcel of our lives. Stress can manifest itself in a number of

ways depending upon the suddenness of an even to be dealt with and

types of stressors to be handled by an individual. It may manifest itself

either physically, emotionally and / mentally, as certain symptoms. Stress

may be classified into two types: positive stress (Eustress) and negative

stress (Distress). Moderate and manageable levels of stress for a

reasonable period of time can be handled by the body through

mobilization of resources and is accompanied by positive emotions, such

as, enjoyment, satisfaction, excitement and so on. This beneficial element

in stress has been defined by Selye as Eustress (EU- meaning good).

However, an overload of stress resulting from a situation of either over

arousal or under arousal for long periods of time causes the following: first

an unpleasant feeling, followed by physical damage, fatigue and in

extreme cases, even death of an individual. This has been termed by Selye

as distress (dys- meaning bad). While environmental factors are forces


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outside the organization, which may act as potential sources of stress due

to uncertainties and threats that they create for any organization and its

members, factors within organization can also act as potential source ofstress. Together or singly they may create a tense and volatile working

environment which can cause stress for organizational members because

the inability of individuals to handle the pressures arising out of these

sources.

Stress shows itself in three ways physiological, psychological, and

behavioral symptoms. As there is a positive side to stress and provides,

drive, excitement and motivation for individuals to push themselves to

achieve more in their lives in the fulfillment of their set goals, there is no

requirement to eliminate stress form ones life. Managing stress should be

given importance rather than elimination. The goal should be to find theoptimal level of stress that can be handled effectively by an individual

which will motivate the person and not overwhelm and distress an

individual. It is the systematic attempt to avoid organizational crises or to

manage those crises events that do occur. A crisis is a major,

unpredictable event that threatens to harm an organization and its

stakeholders.


1. Sleeplessness2. Eustress

3. Distress

4. Role ambiguity

5. Internal

6. Self-efficacy

7. Three

8. Job dissatisfaction

9. Non-competitive

10. Relaxation

11. Person-job-fit

12. Perception

13. Voluntary

14. Three

15. Four

Glossary Words MeaningDistress The unpleasant stress that


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accompanies negative eventsStress A person's adaptive response to a

stimulus that places excessive

psychological or physical demandson that person.

Unit 14 Organizational Change

1. Forces for change are of _____________ types.

2. Organizations are, therefore, forced to change their operational methods to meetthe demands of the _____________.3. Environmental factors such as ___________, ______________, and

_____________ factors play a vital role in devising organizational policies and

strategy

4. Resistance to change may be of _________ types.5. Change leads to _______________ among the employees because of itsunknown consequences.6. Change may bring some potential _________to the organizational power

to some people.

7. Many people, depending on their basic values and beliefs, move from anger to___________.8. ___________ and considerate listening can reduce employees fear and anxietytowards change.9. This can be a costly proposition when there is more than one

_____________ union in the organization, as all the contending parties would

fight for power and recognition.

10. Organizational change focuses on ________ change.

11. In Organization-environment relationship, organizations attempt to redefine their

relationships with changing _________ and ____________ environment

12. Lewin (1951) proposed a ___________ step sequential model of changeprocess.

13. Action research model is another model of __________ change.

14. Planned change can range from ____________ change to _________ change.

15. According to Bennis, Benne and Chin, _______ basic strategies can beadopted to manage change:


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16. According to Nicklos (2004), there can be a ________ strategy in adapting tochanges, i.e. environmental-adaptive.

17. ______________resistance argues for a coupling of power-coercive andenvironmental-adaptive strategies.

18. _________________ populations argue for a mix of all four strategies.

19. Short time frames argue for a _____________strategy.14.9 SummaryLet us sum up what we have discussed in this unit.Organizational change may be defined as the adoption of a new idea or a

behavior by an organization. It is a way of altering an existing organization

to increase organizational effectiveness for achieving its objectives. Forces

for change are of two types: Internal forces and external forces. Internal

forces are: change in the top management, change in size of theorganization, performance gaps and employee needs and values. External

forces are technology, business scenario, and environmental factors.

Resistance to change may be of two types: Individual resistance and

Organizational resistance. There are certain factors that may be related to

the resistance to change; these are economic, psychological and social.

Change leads to insecurity among the employees because of its unknown

consequences. Employees do not know for certain whether the change will

bring in better prospects. This results into individual resistance. Change

may bring some potential threat to the organizational power to some

people. This leads to organizational resistance. The responses to changedepend upon the employees perception about the change. Different

individuals differ in their attitudes and hence, the perceptions towards

change.

Three major reactions to change are: Anger, Denial and Acceptance. Some

approaches can be taken to reduce the resistance to change, such as,

education & communication, employee participation & involvement,

facilitation & support, and negotiation & agreement. Organizational

change is deliberate, systematic and well thought of. Velocity of change

depends on the degree or level of significance and the status quo in the

organization is challenged with a long-term focus. Two major theories ofchange are (i) Force field analysis theory and (ii) Action Research Model.

Lewin proposed a three steps sequence of unfreezing, moving and

refreezing as the change process in Force Field Analysis Theory.

According to Action Research Model, planned change is a cyclical process

in which initial research about organizations provides the data to guide the

subsequent action to bring the required changes in eight steps.



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1. Two

2. Stakeholders

3. Economic, political and demographic4. Two

5. Insecurity

6. Threat

7. Acceptance.

8. Empathetic

9. Dominant

10. Long-term

11. Social and political

12. Three

13. Planned

14. Incremental, quantum

15. Four

16. Fourth

17. Strong

18. Large

19. Power-coercive

Glossary Words Meaning

Refreezing The process of making new behaviorsrelatively permanent and resistant tofurther change

Un freezing The process by which people becomeaware of the need for change

Unit 15 Organization Development

Self Assessment Questions1. A technique to study symptom patterns and prescription to the organization.True/False2. Organization development (OD) is a planned approach to improve _______and

_________ effectiveness by conscious interventions in those processes andstructures that have an immediate bearing on the human aspect of theorganization.


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3 ________ is a strategy of planned change for organizational improvement.

This planned emphasis separates OD efforts from other kinds of more

haphazard changes that are frequently undertaken by organizations.

4. Laboratory training is popularly known as __________ training.5. Exploitive authoritative system exhibits an autocratic ______________ approachto leadership.6. The most distinguishing feature of QWL program is the development of

________________ work groups which consist of multi-skilled workers.

7. The __________ step in OD process involves understanding and identification ofthe existing and potential problems in the organization.8. Any OD activity is incomplete without proper _____________.

9. Sensitivity training is also known as __________.10. _________ is basically based on grid organization development developed byBlake and Mouton.11. In order to gather data and make a diagnosis information is collected

from various sources thorough the use of ________, ______________

and_________about the problems, spelled out at the initial stage.

12. Organization must formulate the _________of OD programme very clearly andspecifically.13. Only fully competent _________ should be pressed for the service and

he should develop understanding with internal change agents

15.7 SummaryOrganization development (OD) is a planned approach to improve

employee and organizational effectiveness by conscious interventions in

those processes and structures that have an immediate bearing on the

human aspect of the organization (Ramanarayan, Rao, and Singh 1998).

OD is an organization-wide planned effort, managed from the top, to

increase organizational effectiveness and health through planned

interventions in the organizational processes, using behavioral science

knowledge.

A number of special characteristics together distinguish organizational

development from other approaches to managing and improvingorganizational function. Behavioral science base approach is primarily

concerned with improving the organization by focusing on aspects that

have a bearing on human and social improvement. Leavitt (1972) has

viewed an organization as a social system consisting of different sub-

systems such as task, structure, technology and human resource,

interlinked by various processes.


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The concept of OD has emerged from four stems: (i) Laboratory training

background, (ii) Action-research/survey-feedback background, (iii)

Participative management, and (iv) Quality of work life (QWL) approach.Any change in one part or process has implications for other parts or

processes relevant to the system. Action-research model is a data based,

problem solving model that replicated the steps involved in the scientific

method of inquiry (French and Bell 1991). OD, using this model, involves

a systematic process of diagonising organizational problems through data

collection and analysis, feeding the data back to the organizational client

group, discussing the findings, planning collaborative action and

implementing proposed solutions. A typical OD process can be divided into

phases, such as, Problem identification, Data collection, Diagnosis,

Structural analysis, Processes analysis, Function analysis, Domain analysis,

Planning and implementation, and Evaluation and feedback.

Organization development, however, has invited sharp criticism as a

strategy to increase organizational viability and effectiveness because

many OD programmes have failed. Only fully competent OD consultant

should be pressed for the service and he should develop understanding

with internal change agents.

Answers to Self Assessment Questions1. False

2. Employee and organizatuional

3. OD

4. T-group

5. Top-down

6. Self-managing

7. First

8. Change

9. T-Group

10. Grid Training

11. Questionnaires, observations, and interview

12. Objectives

13. OD Consultant


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Glossary Words MeaningDiagnosis Diagnosis is the process of assessing

the functioning of the organization or

departments to discover sources ofproblems and areas of improvement

Organization Development Organization Development (OD) is aresponse to change, a complexeducational strategy intended tochange the beliefs, attitudes, valuesand structure of organization so thatthey can better adapt to newtechnologies, markets, andchallenges, and the dizzying rate ofchange itself

QWL QWL programs, in general, requirejoint participation by union and

management in the process of work-designing, which consequently resultinto high level of task variety,appropriate feedback and employeediscretion

T-Groups Training Groups- T-groups aredesigned to provide members withexperiential learning about groupdynamics, leadership andinterpersonal relationships. The basicT-group training or sensitivity trainingis to change the standards, attitudesand behavior of individuals by usingpsychological techniques andprograms.

Documents

MB0038_Managing Process and OB