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ORGANISATION BEHAVIOUR
B.COM
CONTENTS
Chapter Page No.
1. Concept, Nature and Scope of Organisational Behaviour.........1-5
[Introduction, Concept of OB, Features of OB, Reasons to
Study OB, Nature of OB, Contributing Disciplines to OB, Scope of OB, Determinants of
OB, Role of OB, Exercise Questions.]
2. Organisational Goals......................................................................16—24
[Introduction, Definition of Goals. Importance of Organisational Goals, Goal Formulation,
Goal Formulation Process, Factors Affecting Goals, Nature of Goals, Goal Displacement,
Goal Succession, Goal Distortion, Organisational and Individual Goals, Conflict Between
Organisational and Individual Goals, Integration of Organisational and Individual Goals,
Exercise Questions.]
3. Organisational Behaviour Models...............................................25—35
[Introduction, The S-R Model, S-O-B-A Model, Approaches to
OB, Models of OB, Autocratic Model, Custodial Model, Supportive Model, Collegial
Model, Emerging Trends and Changing Profiles of Workforce, Exercise Questions.]
4. Individual Behaviour......................................................................36—46
[Introduction, Factors Affecting Individual Behaviour, Biographical Characteristics,
Learned Characteristics, Environmental Factors, Organisational Factors, Models of
Man, Individual Behaviour and Performance, Exercise Questions.]
5. Personality........................................................................................47—62
[Introduction, Meaning, Determinants of Personality, Approaches to Personality
Development Personality Traits, Personality Dimensions, Exercise Questions.]
6. Perception.........................................................................................63—75
[Introduction, Definition of Perception, Nature of Perception, Perceptual Process,
Perceptual Mechanism, Factors Affecting Perception, Mis-perceptions or Perceptual
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Errors, Overcoming of Perceptual Errors, Applications of Perception in OB, Exercise
Questions.]
7. Learning..................................................................................
(Introduction, Concept of Learning, Nature of Learning, Components of Learning Process,
Factors Affecting Learning, Learning Theories, Learning Organisation, Formation of
Learning Organisation, Exercise Questions.]
8. Motivation—Concept and Theories...................................
(Concept of Motivation, Significance of Motivation, Process of Motivation, Nature of
Motivation, Motivation and Behaviour, Factors Affecting Individual Performance, Role of
Motivation, Theories of Motivation, Maslow's Need Hierarchy Theory, Herzberg's Two
Factor Theory, Mocle-lland's Need Theory, Alderfer's ERG Theory, M.C. Gregor's Theory
of X and Y, Onchi's Theory of Z, Vroom's Theory, Porter and Lawler Theory, Exercise
Questions.]
9. Interpersonal Behaviour [Transactional Analysis and
Johari Window].......................................................................
[Introduction, Transactional, Analysis, Analysis of Self Awareness, Analysis of Ego
States, Analysis of Transaction, Script Analysis, Games Analysis, Analysis of Life
Positions, Stroking, Benefits of TA, Johari Window, Explanation, Effective Feedback,
Exercise Questions.]
10. Communication.......................................................................
(Introduction, Definitions of Communication, Characteristics or Nature of
Communication, Significance of Communication, Communication Process, Two-Way
Communication, Problems in Two-Way Communication, Media/Communication
Symbols, Oral Communication, Merits and Demerits of Oral Communication, Written
Communication, Merits and Demerits, Communication Network, Direction of
Communication Flow, Downward Communication, Upward Communication, Horizontal
Communication, Barriers in Communication, How to Make Communication Effective,
Essentials of Sound Communication System, Exercise Questions.]
11. Leadership..............................................................................
[Concept of Leadership, Definition, Need of Leadership, Leadership V/s Management,
Significance of Leadership, Formal and Informal Leaders, Functions of a Leader, Types of
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Leaders, Techniques, Leadership Styles, Theories of Leadership, Leadership Style in
Indian Organisations, The Right Style, Exercise Questions.]
12. Group and Group Dynamics................................................
[Introduction, Concept of Group, Features of the Group, Concept of Group Dynamics,
Types of Groups, Formal and \
Informal Groups, Group Behaviour, Group Functions, Group Processes, Theories of
Group Formation, Why do People Join Groups, Determinants of Group, Behaviour,
Norms, Types of Norms, Development of Norms, Guidelines for Better use of Group
Dynamics, Importance of Groups to the Organisation, Exercise Questions.]
Team Building and Team Work.................................................224—239
[Introduction, Concept of Team, Characteristics of Team, Team V/s Group, Teamwork,
Advantages of Creating Teams, Disadvantages or Costs of Teams, Types of Teams,
Effective Teams, How to Create Team, Task Force, Problems in Task Force, Quality
Circle, Objectives and Benefits of Quality Circles, Exercise Questions.]
Management of Conflict.............................................................240—261
[Introduction, Concept of Conflict, Features of Conflict, Nature of Conflict, Positive
Aspect of Conflict, Negative Aspect of Conflict, Stages in Conflict, Issues in Conflict,
Levels of Conflict, Interpersonal Conflict, Causes of Interpersonal Conflict, Intra Group
Conflicts, Conflict Management, Exercise Questions.]
Management of Change [Organisational Change]................262—281
[Introduction, Meaning and Concept of Change, Nature of Organisational Change, Forces
for Change, Types of Change, Change Process, Resistance to Change, Overcoming of
Resistance to Change, Change Agents, Role of Change Agents, Organisational Growth
and Change, Exercise Questions.]
Organisational Development....................................................282—294
[Introduction, What is OD ?, Characteristics of OD, Need and Significance of OD,
Limitations of OD, Assumptions of OD, Steps in OD, OD Intervention Techniques,
Sensitivity Training, Role Playing, Exercise Questions.]
Organisational Effectiveness....................................................295—307
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[Introduction, Meaning and Definition, Effectiveness and Efficiency, Approaches to
Effectiveness, Factors Affecting Effectiveness, Effectiveness Through Adaptive Coping
Style, Exercise Questions.]
Organisational Culture..............................................................308—315
[Concept of Organisational Culture, Types of Culture, Functions of Culture, Dysfunctions
of Culture, Impact of Organisational Culture, Creating Organisational Culture, Methods of
Socialisation with Organisation, Exercise Questions.]
19. Power and Politics..................................................................
Ilntroduction. Meaning and Definition of Power, Sources of Power. Faces of Power
Acquisition of Power, Power Relationships :—The Leader (The Agent) and the Subordi-
nate (The Target), Concept of Politics, Characteristics of Politics, Causes of Political
Behaviour, Negative Aspect of Politics, Techniques of Organisational Politics, Functions
of Organisational Politics, Managing Political Behaviour, Ethics of Power and Politics,
Exercise Questions.)
20. Quality of Working Life..........................................................
[Introduction, Concept of QWL, Scope of QWL, Principles of QWL, Approaches or
Techniques for Improving QWL, Recent Advances in Organisational Behaviour, Exercise
Questions.!
5
1 CONCEPT, NATURE AND SCOPE OF ORGANISATIONAL BEHAVIOUR
INTRODUCTION
The success of any organisation is the direct reflection of its management's efficiency and
effectiveness. It is an accepted fact that an organisation can grow only when its employees
are developed. Study of their behaviour, therefore, is essential for the development of
people. Organisational behaviour is a part of total management and it plays an important
role in every area of management. It has been accepted by all the people concerned.
Organisational behaviour refers to the behaviour of the people in the organisation because
organisations themselves do not behave. Thus, organisation attempts to understand human
behaviour in the organisation.
Organisational behaviour is concerned with the understanding, prediction and control of
human behaviour in the organisations. To understand any one individual and his behaviour
is in itself a difficult task, but to understand group behaviour in an organisation is a very
complicated managerial task. Therefore, its rightly said that the success of any
organisation depends upon the efficiency and effectiveness of the management.
Concept of Organisational Behaviour
Organisational behaviour is the study and application of knowledge about, how people, as
individual and group, behave within organisations. It is concerned with the understanding,
prediction and control of human behaviour in organisations. In organisations, if people see
the world differently than they do as individuals, they experience peculiar feelings and act
or behave in strange ways. Organisational behaviour is a field of study. This means, it is
distinct area of expertise with a common body of knowledge. It studies three determinants
of behaviour in organisations : individual, group and structure. Accordingly,
organisational behaviour applies the knowledge gained about individuals, groups and the
effect of structure on behaviour in order to make organisations work more effectively.
Aldag and Brief have defined organisational behaviour as follows : "Organisational
behaviour is a branch of the social science that seeks to build theories that can be applied
to predicting, understanding and controlling behaviour in work organisation."
Callahan et al. have deifned organisational behaviour as a scrset of management activities
when they state that:
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"Organisational behaviour is a subset of management activities concerned with
understanding, predicting and influencing individual behaviour in organisational settings."
Both the above definitions have same ingredients of organisational behaviour, that is,
understanding, predicting and controlling human behaviour though both treat
organisational behaviour as a field of study in different forms-a branch of social sciences
or a subset of management activities.
Thus, organisational behaviour (frequently abbreviated as OB) is concerned with that
aspect of human behaviour which is relevant for organisational performance. It studies
human behaviour at individual level, group level and organisational level.
Features of Organisational Behaviour
From the above definitions, following features of organisational behaviour emerge:
1. An Intergral Part of Management: Organisational behaviour is that part of total
management which represents the behavioural approach to management. It is important to
note that, due to importance of human behaviour in organisations, organisational
behaviour has assumed the status of a distinct field of study. It is field of study backed by
a body of theory and research. Its study helps in understanding the human behaviour in
work organisations.
2. A Branch of Social Sciences: The field of organisational behaviour is heavily
influenced by several other social sciences. The important among these are psychology,
sociology and anthropology. Organisational behaviour draws a rich array of research from
these disciplines.
3. Science and Art: Organisational behaviour is a science as well as an art. The acquisition
of systematic knowledge about human behaviour is a science and the application of
behavioural knowledge and skills is an art. It should be noted that exact prediction of
behaviour of people in organisations is not possible. However, it is possible to predict
relationship between variables on a large scale.
4. Object Oriented: Organisational behaviour is a goal-directed displine. The major goals
of organisational behaviour are to understand, predict and explain human behaviour in
organisational context so that it may be moulded to result in yielding situations.
Organisational behaviour provides rational thinking about people and their behaviour.
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5. Analysis : Organisational behaviour involves three levels of analysis of behaviour
namely-individual behaviour, group behaviour and behaviour of the organisation itself.
The study of organisational behaviour embraces all these levels as complementary to each
other. Such analysis helps in demolishing incorrect assumptions about the behaviour
6. Human Technique : Organisational behaviour is a human tool for the benefit of
organisation. It has been observed by Davis, Keith and Newstrom that, it helps in
understanding and predicting the behaviour of individuals. It provides rational thinking
about people. It helps the managers in anticipating the effects of certain actions of human
behaviour.
7. Satisfaction of Needs : Organisational behaviour is helpful in satisfying the needs of
employees in the organisations. Every employee wants to get his needs fulfilled in the
organisation. Hence, it is the responsibility of organisation to provide such an environment
so that people may get need satisfaction. This is beneficial to both organisation and
individuals. Reasons to Study Organisational Behaviour
Organisational behaviour is concerned with the behaviour of individuals and groups. It is
an exciting field of study which can help the managers in effective handling of human
resources for the realisation of organisational goals. Following are the reasons of studying
organisational behaviour :
1. Understanding Human Behaviour : Organisational behaviour is a useful tool of
understanding human behaviour in all directions. If the managers are to understand the
organisations, they must first understand the people who make the organisation.Human
behaviour can be studied at individual level, interpersonal level, group level and inter
group level as discussed below :
(a) Individual Behaviour: Human behaviour is a complex phenomenon and is affected by
a large number of factors-psychological, social, cultural and others. Organisational
behaviour integrates these factors to provide simplicity in understanding human behaviour.
(b) Interpersonal Behaviour: Organisational behaviour provides means for
understanding of the interpersonal relationships in the organisation. An individual can
understand himself and others better by studying behavioural sciences. Understanding of
interpersonal behaviour is facilitated by the study of perception,role analysis, attitude and
transactional analysis etc.
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(c) Group Behaviour : Hawthrone studies have proven that as an individual and as a
member of the group, his behaviour is influenced by the group norms. Group behaviour
has vital effect on the performance. Research in group dynamics has contributed vitally to
organisational behaviour. Management can use group dynamics for better communication,
effective leadership and building high morale.
(d) Intergroup Behaviour: The organisation is made up of many groups that develop a
complex of relationships to build its process of behaviour. Understanding the effect of
group relationship is important for managers in today's organisation.
2. Motivation : Motivation is essential both on the part of managers and employees.The
job of a manager is to get things done through others. He can be successful in his job when
he can motivate his subordinates to work effectively. Organisational Behaviour will help
the manager to understand the needs and desires of employees and other forces which
affect their motivation. He can use suitable motivational measures to motivate his
subordinates.
3. Communication : Communication is the building block of an organisation. It is only
communication through which people come in contact with others. Behavioural sciences
help in improving communication in the organisation. The communication process and
how it works in interpersonal dynamics is evaluated by behavioural business.
4. Organisational Climate : Organisational climate refers to the total organisational
situations affecting human behaviour. The study of organisational behaviour stresses the
approach to create conducive organisational climate in totality rather than merely
improving the physiological conditions.
5. Leadership : Leadership brings human behaviour in tune with organisational
requirements. Organisational behaviour brings new insights and understanding to the
practice and theory of leadership. It identifies various leadership styles available to
manager and analyses which style is more appropriate in a given situation.
6. Introduction of Change in the Organisation: Many a times, change in the
organisation is needed for the development of people and the organisation. Organisations
have to undergo changes as a result of social, technological, political and other
environmental factors. The knowledge of behavioural sciences is very helpful in handling
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the changes effectively. Changes can be introduced through group dynamics and proper
education of employees by effective communication.
Nature of Organisational Behaviour
Organisational behaviour is emerging as a separate field of study. Therefore, its nature is
likely to change over the period of time. However, its present nature can be identified as
follows :
1. A Field of Study and not a Discipline: Organisational behaviour can be treated as a
distinct field of study and not a discipline or even an emerging discipline. A discipline is
an accepted science with a theoretical foundation that serves as the basis for research and
analysis. Organisational behaviour, because of its broad base, recent emergence, and
interdisciplinary orientation, is not accepted as science. We have just begun to synthesise
principles, concepts and processes in this field of study. Therefore, it is reasonable to call
it a field of study rather than a discipline.
2. Interdisciplinary Approach : Organisational behaviour is basically an interdisciplinary
approach. An interdisciplinary approach integrates the relevant knowledge drawn from
different disciplines for some specific purpose. As discussed later. Organisational
behaviour draws heavily from psychology, sociology and anthropology. Besides, it also
takes relevent things from economics, political sciene, law, and history. These disciplines
exist separately, but organisational behaviour integrates the relevant contents of these
disciplines to make them applicable for organisational analysis. Thus, organisational
behaviour is nothing but the integration of knowledge from different disciplines.
3. An Applied Science: The basic objective of organisational behaviour is to make
application of various researches to solve the organisational problems particularly related
to the aspect of human behaviour. Unlike the pure science which concentrates on
fundamnetal researches, organisational behaviour concentrates an applied researches.
Though many of the researches may be carried on in laboratory situations and controlled
conditions, they are meant for general application in organisational analysis. Thus,
organisational behaviour is both science as well as an art.
4. Normative and Value Centred : Organisational behaviour is a normative science. A
normative science, unlike the positive science which suggests only cause effect
relationships, prescribes how the various finding of the researches can be applied to get
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organisational results which are acceptable to the society. Thus, what is acceptable by the
society or individuals engaged in an organisation is a matter of value to the people
concerned. This aspect cannot be explained by positive science. The normative nature of
organisational behaviour in underscored by the proliferation of theories about management
styles, ranging from *how-to' prescriptions to policies about change in basic practices.
5. Humanistic and Optimistic : Organisational behaviour focuses the
attention on people from humanistic point of view. It is based on the belief that needs and
motivation of people are of high concern. There is an acceptance of the value of the
individual as a thinking, feeling organism, and without these considerations, the
organisation may not be fully operational as a social entity Further, there is optimism
about the innate potential of man to be independent, creative, productive and capable of
contributing positively to the objectives of the organisation. The man will actualise this
potential if proper conditions and environments are provided to him.
6. Oriented towards Organisational Objective : Organisational behvaiour, being an applied
science and emphasizing upon human aspect of the organisation, is oriented towards
organisational objectives. Though an organisation may have several objectives and
sometimes conflicting with individual objectives, it should not be understood that
organisational behaviour only emphasizes the achievement of organisational objectives at
the cost of individual objectives. In fact, organisational behaviour tries to integrate both
types of objectives so that these are achieved simultaneously. For this purpose, it suggests
various behavioural approaches.
7. A Total Systems Approach: Organisational behaviour is a total systems approach
wherein the living system of an organisation is viewed as an enlargement of a man. The
systems approach is an integrative approach which takes into account all the variables
affecting organisational functioing. In fact, the systems thinking in organisational analysis
has been developed by behavioural scientists. Behavioural science, while analysing
organisational behaviour.does not take human being in isolation but as the product of
socio-psychological factors. Thus, his behaviour can be analysed keeping in view his
psychological framework, interpersonal orientation, group influence and social and culture
factors. Thus, man's nature is quite complex, and organisational behaviour by applying
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systems approach tries to find solution of this complexity. Contributing Disciplines to
Organisational Behaviour
Organisational behaviour is like multi-vitamin capsule having a mixture of knowledge
drawn from various behavioural and social sciences It is, infact, of integrating nature. It
tries to synthesize knowledge drawn from various behavioural social sciences such as
Psychology, Sociology, Anthropology, Political Science, Economics and Management,
Medicine, Yoga etc. Infact, organisational behaviour is an applied behavioural science.
1. Psychology : The term "Psychology' is derived from the Greek word 'Psyche' which
'soul' or 'spirit'. Modern authors defines psychology as the science of individual behaviour.
Psychology has great deal of influence on study of the organisational behaviour. The
reason is the focus of psychology-what determine the behaviour of an individual ?
Psychology, especially, industrial or organisational psychology is the vital contributor to
the field of organisational behaviour-job satisfaction, performance and appraisal and
reward systems are measure with the use of psychological theories and models. Group
behaviour in the organisations is studied with the use of theories of Social Psychology.
Social psychology which involves communication system in the organisation, attitudes of
employees, their needs etc., have a large influence on behaviour. Thus, we can say the
psychology is the greatest contributor to the study of organisational behaviour.
2. Sociology : Sociologgy also have major impact on the study of organisational
behaviour. Sociology makes use of scientific methods in accumulating knowledge about
social behaviour of the groups. Sociologists study social systems such as a family, an
occupational class, a mob or an organisation. It specially studies social groups, social
behaviour.customs, institutions, social classes status, social mobility prestige etc.
Sociology studies the behaviour of people in the society in relation to their fellow human
beings. Sociology contributes to organisational behaviour through its contribution to the
study of interpersonal dynamics like leadership, group dynamics, communication etc. The
attitudes and patterns of individuals and groups are greatly influenced by socialisation.
3. Anthropology: Anthropology is concerned with the interactions between people and
their environment, specially their cultural environment. Culture lays major impact on the
structure of organisations as well as on the behaviour of people within the organisations.
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Anthropo is a Greek word which means 'man' and 'logy' means 'science'. It studies forms
of culture of civilisations and their impact on individual and groups.
Anthropology contributes in understanding the cultural effects on organisational
behaviour, effects of value systems, norms, sentiments, cohesion and interaction.
4. Economics : Economics is the study of the production, distribution and consumption of
goods and services. Students of organisational behaviour share the economist's interest in
such areas as labour market dynamics, productivity, human resource planning and
forecasting and cost benefit analysis.
The economic condition of a country has long lasting impact on organisational behaviour.
If economic expectations of employees are met, they bring high performances. Economics
system include financial, commercial and industrial activities which have great impact on
the behaviour of people. The consumption pattern in society monitors the behaviour of
employees.
5. Political Science : Political science has also contributed to the understanding of
organisational behaviour. The themes of interest to political scientist includes how and
why people acquire power. Political parties and government directly intervene in many
activities of the organisation. Specific principles of political science are observed in
organisational behaviour for delegation of authority and responsibility. In organisations,
people strive for power and leadership recognition. Political science helps management of
such desires in an effective manner.
6. Engineering : Engineering also influences the study of organisational behaviour. Many
topics are common to engineering as well as organisational behaviour. These are-work
measurement, productivity, measurement, work design, job design, labour relations etc. As
a matter of fact, organisational behaviour is dependent on engineering for these techinical
jobs.
7. Medicines : Stress is becoming a very common problem in the organisations as well as
with the people working in the organisation. Medicines helps in controlling the stress as
well as stress related problems
8. Technology : The study of technological developments is becoming essential for
understanding the organisational behaviour. This is because of this, that the people are
influenced by the technological developments. Technology changes consumer behaviour
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production activities, distribution and storage activities. To face the challenges of
technologies, people have to keep themselves updated.
9. Science: Scientific methods such as observation of facts and behaviour, their
relationship and predictions, are the backbone of organisational behaviour.Organisational
behaviour is based on the systematised study of facts and behaviours. We can say that
science is also a major contributory to the study of organisational behaviour.
Conceptual Framework of Organisational Behaviour
Durbin has presented a conceptual framework for understanding organisational behaviour.
This framework consists of four major prepositions such as:
1. Organisational Behaviour follows the Principles of Human Behaviour: People in
the organisation are governed by the some physiological mechanisms both in and off the
job. Internal mechanisms provide people an extra spurt of the appropriate hormone during
the times of stress, whether this stress is job or non-job related. Similarly, people at work
are governed by the same psychological principles both inside and outside the job.
However, the organisational behaviour is basically human behaviour.
2. It is Situational : Organisational behaviour is situational. Various behavioural scientists
and psychologists have emphasised that individual behaviour is a function of the
interaction of individuals and environmental variables. In order to understand a person's
behaviour, the pressures put on him in a given situation must be analysed and understood.
The concept of situational thinking was given by Pigou and Myers. They suggested that
there are four situational variables that are basic for getting results. These are :
(i) Individual differences i.e., interpersonal relationship.
(ii) The technical factors such as production methods, equipments, management or
procedures etc.
(iii) Space-time dimensions and relationships such as the size and location of plant and
office.
(iv) Organisational policies designed to achieve major organisational goods.
3. Organisational Behaviour and System Approach : System based thinking is an
intergral part of modern organisation theory. Modern organisations are viewed as complex
systems involving inter-related and inter-locking sub system. Changes in one part of the
system has consequences in other parts of systems. Therefore, when the changes in the
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system lead to desired results, they are called functions. Undesired results due to changes
in system are called dysfunctions.
4. Organisational Behaviour Represents a Constant Interaction between Structure
and Process Variables : Here, structure refers to organisational design and
positions,while process refers to what happens, with or without the structure. For example,
a retail store may use both formal advertising and public relations functions (structure) to
help build its image in the community. However most of the store's image is formed by
words of mouth from satisfied and dissatisfied customers and employees (process
variables).
Therefore, the distinction between structure and process represents a vital concept for
understanding organisational behaviour.
Scope of Organisational Behaviour
Organisational behaviour is a field of study. It is relatively a new discipline which has
distinct area of expertise. Organisational behaviour studies three determinants of
behaviour in organisations: individuals, groups and structure. The behaviour of individuals
and groups and the impact of structural design on the behaviour of individuals and groups
are the major concern of organisational behaviour. The managers in the organisation must
have knowledge of all these to make the organisation work more effectively.
Organisational behaviour is concerned with understanding and describing human
behaviour in an organisation.
Organisational behaviour sheds light on the complex human factor in organisation by
identifying causes and effects of human behaviour.
Organisational behaviour is called social science because its main concern is people and
their behaviour. It is the field of study that integrates behavioural sciences like
psychology, sociology and anthropology for the study of human behaviour in and around
organisations.
The organisational behaviour focuses on three levels of analysis :
1. Individual
2. Group
3. Organisation
Let us describe these levels which are covered under organisational behaviour as under:
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1. Behaviour at Individual Level : Organisation are made up of their individual
members. Therefore, the individual is a central feature of organisational behaviour and
essential part of behavioural situation, whether working in isolation or as a part of a group,
in response to expectations of the organisation, or as a result of influence of the external
environment.
An individual's behaviour is a complex phenomenon and is affected by a large number of
other factors. Such as personality, attitudes, perception, learning, motivation,
organisational behaviour integrates all these factors to provide simplicity in understanding
and individual's behaviour.
2. Behaviour at Group Level: The behaviour of an individual is influenced by groups to
which he belongs, Research studies have shown that people behave differently in groups
than as individuals. Several factors affect the behaviour of groups such as group goals,
norms, leadership, communication etc. Hence, understanding of group dynamics is
essential to reduce conflicts and improve morale. The organisation is made up of many
groups that have a complex relationship. Therefore, understanding of group relationship is
essential for managers. Inter-group relationship may be in the form of cooperation or
competition.
3. Behaviour at Organisation Level: An organisation is a system that consists several
interdependent individuals and groups. Both, individual and groups operate within the
structure of formal organisation. They participate in shaping the culture of the
organisation. They may resist change if situations so arised. Managers have to managed
stress caused by the activities of individuals and groups at organisational, group and
individual levels.
The scope of organisational behaviour may be summed up in the words of S.P. Robbins as
follows :
"Organisational behaviour is a study that investigates the impact that individuals, groups
and structure have on behaviour within organisations, for the purpose of applying such
knowledge towards improving an organisation's effectiveness."
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Determinants of Organisational Behaviour
Like all other subjects and disciplines, organisational behaviour is also based on certain
key elements. There are four key elements or determinants in organisational behaviour.
These are as under :
1. Individuals : Organisations are group of people. People are dynamic in nature as they
interact with each other and also influence each other. There are differences in individual
traits, values, perception, attitude. This is because of these individual differences.
The subject matter of organisation behaviour begins with individual. An individual joins
organisation alongwith his/her social background, likes dislikes, pride and prejudices.
Thus, an individual may affect the organisational behaviour.
2. Structure : Organisation structure leads to division of work so that people can perform
their duties. In an organisation, there are two types of social systems one is formal and
other is informal. The formal relationship of people is called structure. One must
understand that people need organisation and organisation need people. In fact,
organisational behaviour is based on mutuality of interest.
3. Technology and Environment: Level of quality of technology affects the behaviour of
employees. It is an era of automation, computerisation and modernisation. Quality of
output depeds upon technology available in the organisation. The main advantage of
technology is that it allows people to work more and in better way.
4. Groups : An individual behaves differently as an individual and as a member of the
group as revealed by Hawthorne studies. The behaviour of an individual is modified by the
group norms.
Hence, the study of group dynamics has asumed greater importance in organisational
behaviour. It helps in knowing how groups are formed, why people join groups and how
groups lay pressure on individuals. Groups can make individuals and the organisations,
people make smart groups which leads to smart organisation.
Challenges and Opportunities for Organisational Behaviour
The field of organisational behaviour is dynamic. The new millennium poses new
challenges as well as offers opportunities for managers. Understanding Organisational
behaviour has never been more important for managers Changes are taking place in the
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organisations. These changes may have effect on human behaviour, changes include
following:
10 I SBPD Publications Organisation Behaviour
(a) Changes in economic environment.
(b)Changes in production technology causing obsolescence of existing techniques and
skills. ;
(c) Revolution in information technology.
(d) Increasing diversity in workforce of modern organisations etc.
To cope with the above changes, organisation will require human resource based
competitive advantage. Organisational behaviour can help in building human resource
based competitive advantage. Some critical issue of organisational behaviour confronting
the managers today are discussed below :
1. Work-force Diversity : Workforce is a broader concept that addresses gender, race,
ethnicity and other differences. The challenges for managers, therefore, is to become more
accommodating to diverse groups of people by addressing their different life styles, family
needs.and work styles. The managers must learn to respect diversity. They have to shift
their philosophy from treating everyone alike to recognising differences.
Workforce diversity has important implications for management practice. Diversity, if
property managed, can increase creativity and innovation in organisations as well as
improve decision making by providing different perspectives on problems. When diversity
is not managed properly, there is potential for higher turnover, more difficult
communication, and more interpersonal conflicts.
2. Changing Demographics of Work-force: The major challenge for changing
demographics of work-force relates to dual-career couples-couples where both partners are
actively pursuing professional careers.
The increasing number of dual-career professionals limits individual flexibility in
accepting such assignments and may hinder organisational flexibility in acquiring and
developing talent.
Increasing number of working mothers, steady decline of blue-collar workers giving place
for white-collar and pink collars employees are other demographic changes.
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3. Satisfaction of Aspirations of Work-force : Employee expectations are also changing
with change in workforce demographics. Traditional allurements such as job security,
attractive remuneration, housing and the like do not attract, retain and motivate today's
workforce.
Today, employees demand empowerment and expect equality of status with management.
Also, today's average worker demands better treatment, challenging jobs and carrier
advancement.
Thus, managers would be required to evolve appropriate techniques to satisfy the higher
level needs of employees in order to motivate them. They can be motivated by better
carrier prospects, growth opportunities and autonomy.
4. Empowerment of Employees : Modern organisation recruit young and dynamic
persons with professional and technical qualifications at junior and middle level.
Motivation of such employees is a great challenge. Such people do not like close
supervision and directive leadership.
Hence, the managers have to understand the significance of empowerment. Empowerment
involves efforts to take full advantage of organisation's human resources by giving evey
one more information and control over how to perform their jobs.
Various techniques of empowerment range from participation in decision making to the
use of self-managed teams. Empowerment will surely speed vm the process of decision
making.
5. Improving Quality and Productivity : Improvement of productive, and quality is
essential to satisfy customers. Productivity and quality may be improved through not only
better technology but also by trained workforces. Programmes like Total Quantity
Management (TQM) and re-engineering which require extensive employee involvement
can be implemented to meet the challenges of productivity and quality.
6. Globalisation : Global challenges are another set of challenges that is being faced by
today's managers. Organisation are no longer limited to national borders.
Internationalisation of business has transformed the world into a global village. Managers
have to cope with unfamiliar laws, languages, attitudes, management styles.ethics etc.
Hence, managers have to be flexible and proactive.
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Managers are affected by globalisation in two ways.If they are tranfered to another
country, they will have to manage a workforce that is likely to be very different in needs,
aspirations and attitude. If they are in their own country, they have to work with people
from other countries having different cultures.
7. Stimulating Innovation and Change : In today's competitive environment,
organisations must foster innovations and change successfully. Success comes to those
organisation that maintain their flexibility, continually improve their quality and outbeat
their competitors with innovative products and services.
In contemporary environment, organisations must plan and implement changes to survive
and grow. As a result, demands and expectations placed on managers and their
organisations are greater than ever before.
The managers must play the role of "change agents" to improve organisational
effectiveness.
8. Ethical Behaviour : Ethics denote the socially accepted beliefs about what is right and
wrong or good and bad. Manger and employees in today's organisations are always under
pressure to register increased turnover.
It is duty of today's managers to create an ethically healthy climate for his or her
employees, where they can do their work, productively and with clear conscience.
9. Social Responsibility : Social responsibility is the organisations obligation to protect
and contribute to the interests of various stakeholders such as investors, owners,
employees, customers, suppliers, governments and societies etc. Increasing attention has
been focused in recent years on business obligation to help avoid pollution and contribute
to social causes.
Role of Organisational Behaviour
Organisational behaviour helps the managers in the following areas :
1. Understanding human behaviour,
2. Controlling and directing human behaviour,
3. Organisational adaptation.
1. Understanding Human Behaviour : Organisational Behaviour provides a way for
understanding human behaviour in the organisation. For shaping human behaviour in
definite direction for achieving certain predetermined objectives, managers must know
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how the people in the organisation behave. Organisational Behaviour provides way for
understanding human behaviour in all the directions in which human beings interact. Thus,
behaviour can be understood at the individual level, interpersonal level, group level, and
intergroup level.
(i) Individual Level: The behaviour of human beings as a social man is the first issue in
behavioural science. It provides for analysing why and how an employee acts in a
particular way. As will be seen later, human behaviour is a complex phenomenon and is
affected by a large number of factors-psychological, social, cultural and others.
Organisational Behaviour integrates these factors to provide simplicity in understanding
human behaviour.
(ii) Interpersonal Level : Human behaviour can be understood at the level of
interpersonal interaction. Such interpersonal interaction is normally in paired relationship
which represents man's most natural attempt at socialisation. When one focuses on the
influence of one's peer and its effect in working relationship, or examines the superior
subordinate relationship, it is obvious that the two-person relationship is inevitable in the
organisation. Organisational Behaviour provides means for understanding this
interpersonal relationship in the organisation. Analysis of reciprocal relationship, role
analysis, and transactional analysis are some of the common methods which provide such
understanding.
(iii) Group Level: Though people interpret in any way at their individual level, they are
often modified by group pressure which, thus, becomes a force in shaping human
behaviour. Thus, individuals should be studied in group also. Research in group dynamics
has contributed vitally to Organisational Behaviour and shows how a group behaves in
terms of its norms, cohesion, goals procedures, communication pattern, leadership, and
membership. These research results are furthering managerial knowledge of understanding
group behaviour which is very important for organisational morale nad productivity.
(iv) Intergroup Level: The organisation is made up of many groups that develop a
complex of relationships to build its process and substance. Understanding of the effect of
group relationships is important for managers in today's organisation. Intergroup
relationships may be in the form of cooperation or competition. The cooperative
relationships help the organisation in achieving its objectives. Organisational Behaviour
21
provides means to understand and achieve cooperative group relationship through
interaction, rotation of members among groups, avoidance of win-lose situation, and focus
on total group objectives.
2. Controlling and Directing Human Behaviour: After understanding the mechanism of
human behaviour, managers are required to control and direct the behaviour so that it
conforms to standards required for achieving organisational objectives. Thus, managers
are required to control and direct the behaviour at all levels of individual interaction. For
this purpose, Organisational Behaviour helps manages in many areas: use of power and
sanction, leadership, communication, and building organisation climate conducive for
better interaction.
(i) Use of Power and Sanction : Organisational behaviour can be controlled and directed
by the use of power and sanction which are formally prescribed by the organisation. Power
is referred to as capacity of an individual to take certain action and may be utilised in
many ways. The use of power is related with sanction in the organisation. However, mere
use of power and sanction in the organisation is not enough for directing human
behaviour. Moreover, these can be used in several ways and not all ways are equally
effective. Organisational Behaviour explains how various means of power and sanction
can be utilised so that both organisational and individual objectives are achieved
simultaneously.
(ii) Leadership : Another method of bringing human behaviour in tune with
organisational requirement is leadership. Today, the difference between a successful and
failing organisation lies in the quality of leadership of its managerial personnel.
Organisational Behaviour bring new insights and understanding to the theory and practice
of leadership. It identifies various leadership styles available to a manager and analyses
which style is more appropriate in a given situation. Thus, managers can adopt styles
keeping in view the various dimensions of organisations individuals, and situations.
(iii) Communication : Communication is the building block of an organisation. It is
communication through which people come in contact with others. People in the
organisation particularly, at higher level spend considerable time in communicating. To
achieve organisational effectiveness, the communication must be effective. The
communication process and how it works in interpersonal dynamics has been evaluted by
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organisational behaviour. The factors that affect communication have been analysed so as
to make it more effective.
(iv) Organisational Climate : Organisational climate refers to the total organisational
situations affecting human behaviour. Organisational climate takes a systems perspective
that affect human behaviour. Organisational behaviour suggests the approach to create
organisational climate in totality rather than merely improving the physiological
conditions or increasing employee satisfaction by changing isolated work process.
Satisfactory working conditions, adequate compensation, and the necessary equipments
for the job are viewed as only small part of the requirements for sound motivational
climate. Of greater importance are the creation of an atmosphere of effective supervision,
the opportunity for the realisation of personal goals congenial relations with others at the
workplace, and a sense of accomplishment. Thus, Organisational Behaviour has
discovered a new approach of managing people in the organisation
3. Organisational Adaptation : Organisations as dynamic entities are characterised by
pervasive change. In this age of environmental variability, the real job of a manager is to
provide continuity in organisations because the organisations have to adapt themselves to
the environmental changes by making suitable internal arrangements. However, such
organisational arrangements are mostly resisted by the internal people. Thus, managers
have to face dual problems: identifying need for change and then implementing the change
without adversely affecting the need for satisfaction of organisational people. It is also the
essence of managing change. Management of change is seen as a self-perpetrating ever-
evolving phenomenon.
Impact of Global and Cultural Diversity on Organisational Behaviour
There are many behavioural challenges which are faced by Indian managers.
Liberalisation of economy has paved the way for free economy. Hence, organisations have
to change their working style. This change is creating lot of behavioural problems which
managers have to solve.
Hence, the study of impact of global and cultural diversity on organisational behaviour is
essential.
23
1. Impact of Global Diversity (Globalisation) on Organisational Behaviour:
Indian business is characterised by two major features-liberalisation of economy and
globalisation of economy. Globalisation has affected the organisations throughout the
world. Globalisation has raised two types of behavioural problems :
(a) When a manager of Indian origin goes abroad, he has to manage a workforce which is
quite different from the workforce that he has already managed. Such differences may be
in terms of language, living habits, aspirations, needs, attitudes, way of working etc. All
these differences have impact of organisational behaviour.
(b) When a manager joins an MNC operating in India, he faces a different work culture.
He has to change himself to fit with the new Situation.
Thus, we can say that globalisation affects the organisational behaviour.
2. Impact of cultural Diversity (Cross-Culture) on Organisational Behaviour:
It implies that people of different cultures have different behavioural patterns. It has been
proved in researches that no single management practice is suitable to all cultures.
Because people of different countries may have different behavioural patterns. There are
two dimensions that explain the cultural diversity, (differences in behaviours due to
culture) such as :
(a) People from individualistic cultures are more concerned about themselves rather than
their work group. Individual tasks are more important than relationships.
(b) People from collectivism culture prefer to be identified their group of organisation to
which they belong.
(c) People coming from high power distance cultures prefer to be in a situation where
authority is clearly understood and lines of authority are never by passed.
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2 ORGANISATIONAL COALS
Introduction
Goals or objectives are considered to be the sine qua non of organisation. This was stated
by theorists like A. Etzioni and E. H. Schien. T. Parsons puts it more forcibly when he
states that it is "primacy of orientation to the attainment of specific goal defining
characteristic of an organisation which distinguishes it from other types of social systems."
He asserts clearly that the goals of an organisation are specific and clear, conversely if
these goals are ambiguous or incomprehensive, it cannot form organisation, it may be any
group of persons or social collectivity. Definition of Goals
Goals have been defined by organisation theorists like V. H. Vroom in 1960 and A.
Etzioni in 1964 as "desired future state of affairs". Generally speaking, goals are the
objectives, aims or purposes which are to be achieved by an organisation over varying
periods of time. Goals are the result of planning which is related to future as described by
Vroom and Etzioni. Planning is required both for choosing the goals and attaining the
goals.
The words aim, goal, mission, objective or purpose are used interchangeably in general
practice. Bertram M. Gross has tried to draw a line of distinction in the use of these
terms. According to him Mission is a general term which denotes the fundamental reason
for the organisation's existence. It incorporates idealism relating to objectives within its
frame. The idealism which forms part of the mission presents a very difficult or an
impossible aim. For example, the labour unions have the mission of organising the
unorganised or a political party has the mission of providing the government free from all
types of exploitation. Mission, therefore, reflects the long term commitment of the
organisation.
Mission is generally associated with non-business organisation. A government may
announce its mission in terms of eradicating poverty, unemployment, economic and social
inequality etc.
Purpose according to Gross is an all inclusive term which refers to commitment of
desired future. An Objective may be defined as a specific category of purpose for which
the organisation is committed. The objective may be production of goods or services,
efficiency etc.
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A Goal is even more specific and fine than the objective. An increase in production may
be the objective but when its objective is expressed in relation to particular norms or
standard such as increase in production by 10 units per man per week, it becomes a goal.
These distinctions become imperative when the organisation follows the policy of
Management by Objectives.
Importance of Organisational Goals
Organisational goals are essential to regulate and control the functioning of individuals
and groups interse and also individuals and group in relation to organisation. Importance
of these goals has been described under the following heads:
1. Focus Attention of Individuals and Groups to Specific Activities and Efforts of
Organisations : When organisation's goals are known to individuals and group, it will
help them in channelising their activities towards attaining organisation's goals. In other
words the goals prescribe the course of action to individuals and groups which will be
helpful and complementary to the achievement of organisation's goals.
2. Provide a Source of Legitimacy to Action by Members : Once this course of action
has been decided for the individuals and the groups within the framework of
organisational goal, it will promote legitimacy and justification to individual's or group's
actions and decisions.
3. Serve as a Standard of Performance : Goals provide a measure of individual's or
group's performance. They may help the organisation members to evaluate the level of
their performance in the perspective of organisation's goals.
4. Affect the Structure of Organisation : Goals and structure are intimately related to
each other. The relationship among people in the form of authority and responsibility or
the positions to be created at different levels have to be decided on the basis of
organisational goals. In other words, what the organisation proposes to do will be
determined by the organisational setup it will structure. Similarly, it will be the structure
also which will influence the goals.
5. Provide Clues about the Nature and Character of Organisation:
The nature and character of an organisation may be known by its goals. For instance, the
goal of maintaining the quality of product without much regard to return on investment
may help the outsider to hold the organisation and its members in very high esteem.
26
Peter Drucker emphasises the point that goals are important in every area of enterprise
more specially when performance and results are directly related to its survival and
prosperity. In these vital areas, goals will enable managers "to (i) organise and explain the
whole range of business phenomena in a small number of general statements (ii) test these
statements in actual experience (iii) predict behaviour (iv) apprise the soundness of
decisions when they are still being made and (v) analyse their own experience and as a
result improve their own performance.
Drucker suggests eight specific areas in which goals have to be set in terms of
performance and results. These are (1) market standing, (2) innovation, (3) productivity,
(4) physical and financial resources, (5) profitability, (6) manager performance and
development, (7) worker performance and (8) public responsibility.
Goal Formulation
Goals are formulated by individuals after taking into account the interest of a large number
of groups which have a bearing on organisation. These groups may be of (i) managers, (ii)
owners, (iii) creditors, (iv) consumers, (v) employees and (vi) governments. Each of these
groups has a conflicting goal with one another vis-a-vis organisation. For example,
management and labour as well as producers and consumers have a diagonally opposite
interest which presents constraints in forging a coalition process and goal formulation.
Goal formulation is a bargaining process in which each group has its own interest as
paramount to the good of the organisation but the final outcome depends upon how best
each group intersects, bargains and compromises.
Organisational goals are established by the individuals in some collective fashion for the
benefit of the total organisation entity. When the organisation is created originally, the
goal formulation exercise is completed by its founders. Thereafter, it is done by those 'who
have sufficient control of organisational resources to commit them in certain directions
and to with hold from others'. Though such individuals may be persons holding higher
formal positions in the organisation, but sometimes even persons in the lower rank may
fulfill the task as they may "have sufficient control of ogranisational resources." Such
persons may be technical persons who, though may not be occupying higher positions in
formal organisation, may yield considerable influence on vital organisational resources
such as technical expertise.
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Goal Formulation Process
The goal formulation process should be so designed that primary or fundamental goals
should extend throughout to the grass root to form part of the activity of every individual
working at any level. Unless the primary goal of the organisation is converted into specific
job tasks for individuals, it will have no relevance to the common man working in the
enterprise. This fact is illustrated by HERBERT SIMON in the following words :
"Profit may not enter directly into the decision making of most members of business
organisation. Again this does not mean that it is improper or meaningless to regard profit
as a principal goal of the business. It simply means that the decision making mechanism is
a loosely coupled system in which profit constraint is only one among a number of
constraints and enters into most subsystems only in indirect ways. It should be both
legitimate and realistic to describe most business firms ascirected towards profit, making
subject to a number of side constraints operating through a network of decision making
process that introduces many gross approximations into the search for profitable course
of action. Further, the goal ascription does not imply that any employee is motivated by
the firm's profit goal although some may be."
The above statement makes it clear that the overall goal of the organisation has no
relevance to the workers operating at the lower level, he is more concerned with his
individual goal. But the Individual goal has the linkage with the organisational goal of
profit. The individual goals have to be so designed that they seek to achieve the
organisational goal rather than conflicting with the overall goal of the organisation. In
other words, it may be stated that the overall goal is penetrated in all pervading manner in
the organisation in such a manner, it takes the form of group goals-goals of owners,
managers, consumers, workers and even of governments and creditors.
Factors Affecting Goals
Goals of organisation are affected by the interaction of environmental setting which is
reflected in individual and group expectations on the one hand and the behaviour of social
forces in the form of trade unions, political organisations and social institutions on the
other. The expectations of the social forces cannot be overlooked. Consequently, the
organisation's needs and the constituents expectations flowing in different directions
coupled with the demand of social forces unless brought around to a reasonably accepted
28
paradigm of give and take, will create more problems than achieving the overall goal of
the organisation. Consequently, the goal formulation process has to be designed in the
environmental setting of social forces and the legitimate expectations of different
constituents of the organisation.
Nature of Goals
Organisational goals may be divided into three categories :
1. Official Goals
2. Operative Goals
3. Operational Goals.
1. Official Goals: Official goals are the goals which are publicly announced and are
contained in the charter of the company. These are in the form of policy statements which
are stated by the officers of the company. Official goal of a manufacturing enterprise may
be stated in the form of say 100 metric tonnes of paper per day. These are the official
goals.
2. Operative Goals : Operative goals are those goals which could be implemented into
actual practice. Though operative goals are based on official goals, but a wide discrepancy
may exist between the official goal and the operating goal. For instance, it may be an ideal
situation to increase production to 100 metric tonnes per day, but actually it may not be
operative. The reasons may be internal constraints of resources in terms of manpower of
equipment or external limitations of the government's policy and other social forces. In
any case, it is the operative goal which has greater relevance to individual or group
behaviour in a work situation.
3. Operational Goals : Operative goals become operational when they are actually
implemented into actual practice. A manufacturing enterprise has an operative goal of
increasing production by 10% in one year. Mere decision on this account will not make it
operational, it will be operational when actually implemented. Operative goals become
operational when there is an agreement among all concerned regarding the activities and
the programmes to be undertaken in relation to these goals. In other words, goals are said
to be operational when there is "agreed upon criteria for determining the extent to which
particular activities or programmes of activity contribute to these goals."
29
Operational goals relate to the means used to accomplish them. Means which are available
and which are acceptable to the members of organisation and even the social and other
forces operating outside to organisation. If the means present constraints, the goal will
cease to be operational. Thus, goals may be (i) operational and (ii) non-operational. Goals
which become non-operational are soon converted into a set of sub-goals. It is these sub-
goals which may provide a basis for carrying on individual actions by members of
organisation.
It may be stated that each goal which is developed in an organisation may be considered a
goal in itself and a means to achieve other goals also.
Goal Changes
Goals are framed by people in a particular environment setting. Since people change i.e.
enter the organisation and leave the organisation it is not necessary that new people will
cling to the goals set by the people in the past. Their perception may be different to the
earlier people and thus, they will definitely require a change. Similarly, goals are
formulated in the midst of environment-economic, technological, social and political
which is bound to undergo a change with the passage of time. Consequently, the goals
formulated in the earlier environmental setting may prove irrelevant in the new setting.
Goal changes may be (i) Goal displacement, (ii) Goal succession, (iii) Goal distortion.
1. Goal Displacement: Goal displacement may be stated as a situation in which the new
goals have been developed by completely disregarding the official or sanctioned goals.
This situation arises when the behaviour or actions which were considered to be means to
achieve the goals became the goal in themselves. For example, the rigid enforcement of
discipline rules among workers which was considered indispensable may be treated as
only desirable. Because if these rules are followed rigidly, it may endanger the existence
of the organisation itself.
Probably, it is in this connection that the phrase 'rigidity with flexibility' has been coined.
This phrase has a relevance in modern times in all types of organisations-business,
political, social, autonomous or governmental. In educational institutions student's and
teacher's violation of rules are tolerated consequently upto a certain extent though the rules
and regulations for their conduct and behaviour existing in the statute books remain
30
unchanged. So in the case with workers and managers in business organisations or
political organisations.
When we refer to goal displacement, we mean only convert goal changes. Explicitly there
is no change, it is done to avoid embarrassment both to individual as well as the
organisation.
2. Goal Succession : Goal succession refers to the situation where the new or modified
goals are incorporated or substituted for the existing one in such a manner that they do not
change the spirit of the existing goals. The new goals are such that individuals or the
organisation are willing to state publicly. Members of organisation openly state the
changes in the goal structure in a scheme of rationalisation and adaptation to new
environmental setting. What is actually professed for the betterment of individual and
organisation may turn out to be wrong in actual circumstances. This is a different
situation. An example of goal succession may be as follows :
"A business organisation had stated labour welfare as its goal. With the passage of time it
was realised that labour welfare is too ambitious a goal and, thus, it was changed to
include (i) housing facility to the employees, (ii) medical facilities, (iii) transport subsidy
and (iv) subsidy for the education of the employees children. Such a change was well
within the spirit of welfare concept."
3. Goal Distortion : Goal distortion is an extreme form of goal displacement. It implies
misunderstanding or misapplication of organisational goals. In an organisation, there may
be several cases of goal distortions particularly when the official goals are transformed
into the operating goals. In organisations, where meansends relationship is there, which
suggests that the ends of each lower unit are means for the higher unit, is distorted if it is
extended to a large extent ; because the relationship is carried out by a large number of
people, each aware of the limited aspect of the organisational goals only. Some major
factors responsible for goal distortion are overemphasis on certain aspects of goals,
blockage in communication, sub-unit goal internalisation, remote view of overall goals at
lower level.
For example, in banks, while allocating the budgets for various branches, each branch is
being allotted a particular amount for giving loans and advances The success of the branch
is measured in terms of the loans disbursed by it, not in terms of the effectiveness of these
31
loans or earnings to the bank out of these loans. Another example can be training imparted
to the managers of an organisation. The particular department of the organisation may
measure its success on the basis of the number of the training programmes and not oi> the
quality of these programmes. The goal may be to train the managers for effectiveness.
Organisational and Individual Goals
Edger H. Schein gave the view that there is a psychological contract between the
individual and the organisation. Both the individuals and the organisation have mutual
expectations from each other. This is beyond the formal contract of service between the
two which lays down the economic terms and conditions of the employment.
The classical organisation theorists assumed the organisational and individual goals to be
complementary. According to them there was no conflict between these two goals.
According to Henri Fayol "If at all, there is any conflict between the interests of the
organisation and an individual, the organisational interest must prevail." On the other
hand, according to the Human relationists, the incongruency between the goals of the
organisation and individuals is inevitable. They suggested the satisfaction of human needs
and achieving good human relations in the organisation as means to the accomplishment
of organisational goals. Thus, it is for the management to create environment for the
satisfaction of individual needs for greater organisational effectiveness. According to this
school of thought human satisfaction was viewed as a means for organisational goals
rather than as an end in itself.
Attempts should be made to make individual goals and organisational objectives as
compatible as possible. This requires the need for some kind of managerial action
designed to ensure some degree of compatibility whereby the individual and the
organisation seem to become part of each other.
Conflict Between Organisational and Individual Goals
It has now been widely recognised that there is a continuous conflict between the
organisational and group goals. These two goals are often not compatible. The debate on
this issue has given rise to three different points of view. These view points are discussed
as below :
1. Personality View of Individual Organisation Relationship : The employees who join
the organisation have their personal goals which they expect to achieve through their
32
membership of the organisation. But, there is inherent conflict between organisational and
individual goals. Elton Mayo recognised for the first time that the formal organisation
properties did not satisfy individual needs and they formed informal groups.
Dissatisfaction among employees being the main reason for the formation of informal
group. Douglas M. McGregor also recognised the conflict between these two. According
to him, "the main reason of the conflict is that the people behave according to the
assumptions of theory Y, but organisations are designed according to the assumptions of
theory X." The most important view point comes from Chris Argyris who feels that
satisfaction of organisational members is also an end in itself. His immaturity-maturity
theory says that human beings want to move from the level of immaturity to the level of
maturity. He visualised the individual as moving over time from the passive, dependent
and sub-ordinate status of an infant to the active, independent and superior status of an
adult. The structure of the formal organisation is not compatible with the needs of human
personality for full development. The basic features of organisation create situations that
are detrimental to personality development. Thus, maturity of the individual comes into
conflict with the basic properties of formal organisation.
2. Viewpoint of Organisation Proponents : According to organisation proponents, every
individual does not work for self actualisation as advocated by personality advocates
rather money plays an important role in motivating the individuals. No doubt, a few
individuals in the organisation may have the strong urge for self development, self
actualisation and self direction, but mostly people have a tendency to follow orders and
instructions from the superiors. Moreover, money is a mean s for satisfying higher needs
also. It may bring social status and even self actualisation to certain people. In practice,
people depend on jobs only for monetary benefits, and they satisfy their psychological
needs from other organisations and institutions like social clubs, religious or charitable
organisations etc. Such people accommodate to the demands of the organisation without
much frustration or conflict. According to G. Strauss, organisations donot demand much
from the individuals, only reasonable performance in return for the economic benefits
offered to them. Since the organisation is giving employment to the individual, this
expectation is-but logical. Thus, the source of conflict may not be within the organisation.
33
3. Dubin's Middle Path View : Robert Dubin advocates a middle path view by suggesting
that neither individual personality nor organisational property is responsible for the
conflicts but the cause of conflict lies in their mutual adaptation. Since an individual
participates in a large number of organisations simultaneously, he cannot deeply involve in
all the organisations at the same time. Thus, lack of involvement with some organisations
may be the real cause of conflict between organisation and individual. Robert Dubin, says
that individuals and organisations can survive happily even if in congru-ency between
individual goals and organisational requirements exist. Those who are not primarily
interested in the work place may just fulfill their minimum production requirements and
get economic rewards to sustain themselves. They may seek 'self realisation' at some other
institutions.
Integration of Organisational and Individual Goals
In actual practice, no organisation and individual has completely opposite or completely
compatible goals. We can say, that some integration is always there between the individual
and organisational goals. In this context, HARRY LEVINSON advocated the process of
reciprocation. The process of fulfilling mutual expectations and satisfying mutual needs in
the relationship between a man and his work organisation is conceptualised as a process of
reciprocation. It is a complementary process in which the individual and the organisation
seem to become a part of each other. The person feels that he is a part of the organisation
and concurrently, he is a symbol personifying the whole organisation. There are two
models based on the reciprocation or the integration process through which the goals are
integrated. One such model is (a) Fusion process and the other is (b) Inducement
contribution process.
(a) Fusion Process : The fusion process is based on the assumption that individual goals
and organisational goals are not totally opposing. There is, generally, an interaction
between these two. This interaction leads to two sub processes (i) Socialisation and (ii)
Personalisation.
According to E.W. Bakke and Chris Argyris, "as a result of socialisation, individuals are
made into agents of the organisation and I or the informal groups. The process by which
the individual is made into an agent of the formal organisation is called the formal
socialising process and by which he is made an agent of the informal group is called the
34
informal socialising process. And it is through personalisation process that the individual
achieves his personal goal of self actualisation and by which organisation and informal
groups are made into agencies for the the individual."
Both socialisation and personalisation processes occur simultaneously in the organisations.
If both are not coherent, two situations will arise i.e. (i) If the organisational goals are
being achieved without contributing much towards the achievement of individual goals, it
means that socialisation process is occuring much strongly, (ii) If the individual satisfies
his needs from work without giving much to the organisation, personalisation process is
operating much strongly.
Individuals, formal organisations and informal groups interact with each other to achieve a
balance of equilibrium called fusion by Bakke and Argyris. The aim of the fusion process
is to "establish and maintain for the organisation an internal and external integration
which will at least leave its capacity to perform its functions unimpaired and at best will
improve that capacity. Operation of this process indicates that the organisation to some
degree remakes the individual and individual to some degree remakes the organisation.
Thus, it maintains the integrity of the organisation in the face of the divergent interests of
individuals, groups, other organisation, itself, which each hope to realise through its
contact with the other. The higher the fusion score, better is the result for both the
individual and the organisation."
(b) Inducement-Contribution Process : Another process for the integration of individual
and organisational goals was developed by James G. March and Herbert A. Simon. Their
inducement-contribution process concentrate on those intellectual processes which tend to
lie at the heart of large scale organisations. The basic characteristics of this process are as
follows:
(i) Each organisational member gets inducements for the contributions made by him to the
organisation.
(ii) Each member will continue to give his contributions of long as inducements are more
or equal to contributions (assuming that the member is in a position to value both
contributions and inducements).
(iii) The contributions from various members (and groups) are the source through which
the organisation produces inducements for the members.
35
(iv) The organisation will continue to give inducements or receive contributions so long as
contributions are sufficient to give inducements Both the fusion process and the
inducement-contribution process emphasise that higher level of balance between the
organisational and individual goals will bring higher satisfaction to organisational
members and which in turn will lead to better organisational results.
36
3 ORGANISATIONAL BEHAVIOUR
MODELS
In order to understand the true nature of human behaviour, in general and in organisation,
managers have to work hard. A lot of generalisations have been developed about the
human behaviour, which have been based either on personnel experience or on the
experience of others. Some of these generalisations may prove effective in explaining and
predicting the human behaviour, but some of these may not be so effective in explaining
why do people do what they do. Therefore, it is required that a systematic approach should
be there to understand, explain and predict human behaviour. It is easy to understand the
behaviour of a person if we knew what caused it or what made the person behave in a
particular way. The behaviour of an individual is caused by a number of variables. To
identify the major variables and to show how they relate to each other, the following
specific models have been developed :
1. The S-R Model—The model assumes that the reasons which cause human behaviour
are of two types :
(i) Internal Feeling
(ii) External Environment
Internal feelings of a person may relate to his motivational factor whereas the external
environment which is also called the stimulus directly influences the activity of a person.
The stimulus may be in the form of hearing, light, etc. According to this approach,
behaviour is determined by the stimulus or in other words the external environment forces
determine the behaviour of a person at any given moment. There is a direct relation
between stimulus and response, that is why this process is called S-R process.
The basic drawaback of this model is that organism or person is immobile and passive.
Whereas in reality the person concerned plays an important role in behaviour which is
influenced by the internal feelings of the person. This model, thus, does not give a
complete picture as to what caused the person to act in a particular way in a particular
situation.
2. S-O-B-A Model-S-O-B-A model is a comprehensive model of human behaviour which
combines the S-R situation and human being. But O in this model is not passive or
immobile, but it is a mediating, maintenance and adjustive function between S and R.
37
The S in this model stands for stimulus or the external environmental situation. It includes
light, heat, sound, actions of supervisors or other aspects of environment to which a person
is sensitive. The stimulus is very comprehensive and all encompassing in nature. It
stimulates the organism or person into action, interrupt what they are doing and help them
to make their choices. The stimulus incorporates all aspects of the environments-
immediate stimulus, physical environment and socio-cultural environment.
The O in this model stands for the organism as the person. But this O does not stand for
only the physiological being but also it includes the processes within the person e.g.,
heredity, maturity, knowledge, skills, values, persceptions, attitudes, personality and
motivation. The double headed arrow between S and O indicates the interaction between
the situation and organism.
The B stands for behaviour. It includes both overt and covert behaviour such as body
movements, talking, facial expressions, emotions, sentiments and thinking. The response
of organism indicated by a single headed arrow is the behaviour. Behaviour is anything
that a person does, it is not something that is done to a person.
The A stands for accomplishments and consequences. When behaviour, in turn, acts on the
outside world, it leads to accomplishment as shown by single headed arrow. It is assumed
that the accomplishments may further change the stimulating conditions and thereby
influence the subsequent behaviour or it may create new stimulus leading to new
behaviour.
Since behaviour is influenced by the interaction of S with O, any change in S and O will
definitely influence the behaviour. It is manager's job to decide when to change the S and
to change O. But one must analyse the conditions carefully so that the changes introduced
are in the right direction and so not give rise to worse problems. Further, the same
behaviour may have different causes. In order to adequately understand and evaluate the
behaviour, it is essential to determine which cause is involved in a particular instance. The
type of treatment of the S or of the O that will work in one cause may not work in another
cause or even with the same cause on different occasions. Similarly, the same cause may
have many behaviours.
38
Organisational behaviour is the understanding of behaviour of the employees among
themselves, between them and organisation and towards the customers or clients and
towards the society at large.
Human behaviour leads to organisational behaviour e.g., when a manager comes to office
after quarrelling with his wife in morning may possibly show unpleasant behaviour like
rebuking for small things to his subordinates.
It follows cause effect process and affects both interpersonal relations and managerial
effectiveness in the organisation.
In the process of organisational behaviour one has to first describe, understand than
control the individual behaviour.
Organisational Behaviour has got two aspects; such as:
1. Understanding the human behaviour
(i) At Individual Level
(ii) At Interpersonal Level
(iii) At Group Level
(iv) At Inter Group Level
2. Controlling, Describing and Predicting human behaviour.
(i) Leadership
(ii) Motivation
(iii) Communication
(iv) Organisational Climate
1. Understanding Human Behaviour : Organisational behaviour provides a way for
understanding human behaviour in the organisation. For shaping human behaviour in
definite direction for acieving certain predetermined objectives, managers must know how
the people in the organisation behave. Organisational behaviour provides for
understanding human behaviour in all directions in which human beings interact. Thus,
organisational behaviour can be understood at the individual level, interpersonal level,
group level and inter-group level. These behaviours have been explained earlier in this
chapter.
39
2. Controlling, Describing and Predicting : After understanding the mechanism of
human behaviour, managers are required to control and direct the behaviour so that it
conforms to standards required for achieving organisational objectives.
We can say that managers are required to control and direct the behaviour at all levels of
individual interaction. For this purpose, organisational behaviour helps managers in many
areas such as-leadership, motivation, communication and organisational climate. These
have already been discussed in the chapter.
Approaches to Organisational Behaviour
Following are the approaches to study the organisational behaviour :
1. The Behavioural Approach—Also known as human relations approach, is based upon
the premise of increase in productivity and managerial efficiency through understanding of
the people.
The growth and popularity of this approach is attributable to Elton Mayo (1880-1949) and
his Hawthorne experiments. Mayo discovered that when workers were given special
attention by management, the productivity increased irrespective of actual changes in the
working conditions.
The Hawthorne studies represented a major step forward in systematically studying
worker's behaviour, thus laying foundation for the field of Organisational Behaviour.
Findings of Hawthorne Experiments were as follows :
(i) Studies showed that better physical environment or increased economic benefits in
themselves were not sufficient motivators in increasing productivity.
(ii) These experiments demonstrated that in addition to the job itself, there are other
factors that influence a worker's behaviour. Informal social groups, employer-employee
relations etc., are the other such factors.
(iii) These experiments suggested that an office or a factory is not only a workplace but
also a social environment in which employee interact with each other. This gave rise to the
concept of "social man".
The basic aim of this approach is to increase the organisational effectiveness of its human
resources. Hence, in support of Mayo's contention and findings, Abraham Maslow
presented a theory of individual needs. According to Maslow, these needs result into a
hierarchy. At the bottom of hierarchy are the lower level needs such as need for food,
40
water and physical comfort as well as security of job and love and affection needs. At the
upper level, there are needs for respect and self-fulfilment. In general, lower level needs
must be satisfied before the higher level needs arise. The management must be aware of
these needs.'
The behavioural approach had a major impact on management thinkers right through the
1970s and indeed changed the structure of organisation from the bureaucratic to
participative in which the workers have more freedom to participate in the affairs of the
organisation.
2. Contingency Approach: The contingency approach stresses that there is no single way
to manage effectively under all circumstances. It implies that there is no one best way of
managing, but the best way depends upon the situation and circumstances. Each situation
must be characterized on its own and then managed accordingly.
The contingency view (approach) of organisational behaviour was first proposed by Fred
E. Fiedler who stated that management must identify specific responses to specific
problems under specific situations. Hence, this approach focussed on situational analysis.
Advantages of Contingency Approach :
1. The major advantage of this approach is that it is highly flexible and has sufficient
scope to accept differences in situations in order to formulate appropriate responses to the
situations.
2. Another advantage of contingency approach is that it forces managers to learn to adapt
changes effectively.
3. This approach enables the manager to analyse each situation before taking action.
"Thus, under this approach, the manager's task is to identify which method will, in a
particular situation, under particular circumstances and at a particular time, best contribute
to the attainment of organisation's goals."
3. Productivity Approach : Every organisation needs to achieve some
relevant results. A dominat goal for many organisations is to be productive. Productivity is
a ratio that compares units of output with units of input. If more outputs can be produced
from the same amount of inputs, productivity is improved.
The idea of productivity does not imply that one should produce more output; rather, it is a
measure of how efficiently it produces the desired output.
41
Productivity often is measured in terms of economic inputs and outputs, but human and
social inputs and outputs also are important. For example, if better organisational
behaviour can improve job satisfaction, a human output or result occurs. In the same
manner, when employee development programmes lead to a by-product of better citizens
in a community, a valuable social output occurs.
4. System Approach-The system approach to organisational behaviour views the
organisation as a united, purposeful system composed of interrelated parts. This approach
gives managers a way of looking at the organisation as a whole, whole person, whole
group and the whole social system.
In doing so, system approach tells us that activity of any segment of an organisation
affects the activity of every other segment.
Functional Elements of System Approach-The fundamental functional elements of the
system approach include :
1. There are many variables within a system.
2. There are many sub-systems contained in larger system.
3. The parts of system are interdependent.
4. Systems are engaged in some process-require inputs and produce outputs.
5. The input-process-output is ongoing and repetitive in nature.
6. Systems produce both positive and negative results.
7. The consequences of system may be short-term, long-term or both. Thus, system
approach compels the managers to take a holistic view of the
subject. Holistic organisational behaviour should be there on the part of managers. The
role of managers is to use organisational behaviour to help achieve organisational, social
and individual goals.
There may be negative effects as well as positive effects sometimes from the behavioural
actions of managers. It is essential to make a cost-benefit analysis to determine whether
potential actions will have a net positive or net negative effect._
Sub-system Goals and
Values Technology
Inputs Structure Outputs
42
Psycho-social
Managerial
Public Government
Source : A System Model by Kast and Rose N. S. Berg
42 | SBPD Publications Organisation Behaviour
Models of Organisational Behaviour
Every organisation develops a particular model in which behaviour of the people takes
place. This model is developed on the basis of management's assumptions about people
and the vision of the management. Since these assumptions vary to a great extent, these
result into the development of different organisational behaviour models (OB models).
There are four behavioural models suggested by Davis, that are being used by managers of
different organisations at different times and in different situations. These are :
1. Autocratic Model
2. Custodial Model
3. Supportive Model
4. Collegial Model.
An overview of above models is being given below :
1. Autocratic Model: In this model, the authority and power of the boss prevails. It refers
to those bosses who are in command and have power to demand. Under this model
employees are supposed to obey the boss, not only respect him. The psychological
outcome of this model is that employees are dependent on their boss whose power is to
lure', 'fire' and 'perspire'.
Autocratic model assumes that employees have to be directed, persuaded and pushed to
perform. The management, here is, a think tank while employees have to carry out the
decisions of the management.
Under this model, the performance of employees is lower. Hence, they are paid minimum
wages. In fact, this model is useful in certain situations. Such as where workers are lazy
and shirkers and where the attainment of goals are of the utmost importance. If the
workers do not obey, the manager can threaten to withhold the rewards due to employees.
Essential Features of the Autocratic Model: The essential features of the Autocratic
Models are as follows :
43
1. Under this model, authority is delegated by the right of command over the employees.
The management believes that it is the best judge to determine what is better for the health
of both the organisation and employees.
2. The leadership under the autocratic model has negative image because the employees
feel insecure and are uninformed. They have to obey the orders of the boss at the any cost.
3. Under this model, worker's orientation is obedience to the boss. The bosses have
absolute power.
4. This model is applied where time bound performance is needed.
5. The autocratic model, does not find place in modern organisations. There are some
regulations for governing the working of management. Such as the Payment of Minimum
Wages Act, etc., are some of the legal measures available to the employees.
2. The Custodial Model: Under the autocratic model, employees work under strict control.
They feel insecurity and frustration. Therefore, it was felt that there should be some way to
establish and develop better employee manager relationships. The progressive manager,
therefore, used custodial model. But the application of this model needs funds. Therefore,
if an organisation does not have sufficient funds to provide pensions and other benefits, it
cannot follow a custodial approach.
Under custodial model, employees are satisfied and happy but they are not strongly
motivated. This is because of that this model depends upon money as the best way to
motivate employees.
Essential Features of the Custodial Model : Some of the important features of this
model are being explained below :
1. The success of this model depends upon the availability of economic resources in the
organisation. Because under this model, employees are motivated through economic
rewards and benefit.
2. The custodial model brings security and happiness to the employees.
3. Under this model, employees depend upon organisation rather than their boss.
4. Under this model, employees' psychological needs are ignored. Only, monetary needs
are satisfied to motivate the employees.
3. Supportive Model : Supportive model is based on the "Priniciples of supportive
relationship" which depends upon leadership insted of authority of economic rewards.
44
Through leadership, management provides an environment which help employees grow
and accomplish.
Under this model, management supports the employees performance. In other words, we
can say that this model takes care of some psychological needs of the employees.
In the words of R. Likert, The leadership and other processes of the organisation must be
such as to ensure a maximum probability that in all interactions and all relationships with
the organisation, each member will, in the light of his background, values and
expectations, view the experience as supportive and one which builds and maintains his
sense of personal worth and importance."
Main Features of Supportive Model: The main features of this model are as follows:
1. Under this model, managment creates a favourable organisational climate for the benefit
of employees.
2. This model compels the leaders to assume that the workers will take responsibility,
make their contributions and improve themselves if given a chance. In other words, it is
assumed that workers are not lazy and work shirkers.
3. Under this model, managment gives support to employees in performing better.
4. This model takes care of psychological needs of employees in addition to their security
needs.
5. Supportive model helps in creating friendly superior-subordinate relations.
6. This model is highly appreciated in countries where the workers are more concerned
about their psychological needs like self-esteem, job-satisfaction etc.
4. Collegial Model: The dictionary meaning of the word "Collegia!" is "a body of persons
having a common purpose". Collegial model is an extension of the supportive model and
is based on team concept.
Under this model, managment considers the employees as partners. As a result, the
employees feel themself as useful to the organisation. They feel that managers are also
contributing, hence it becomes easy to accept and respect their roles in the organisation.
Team work is found under this model. Employees feel proud to produce a quality prouct
and thus to create better image of the company. The employees are self-disciplined.
45
Under the environment, created through collegial model, employees feel some degree of
having made worthwhile contribution, fulfilment and self-actualization. The self-
actualization will lead to moderate enthusiasm in performance.
Table 3.1 : Differences between Human Relations and Human Behaviour
Approaches
Human Relations Approach
People want to feel useful and important.
People desire to belong and to be
recognised as individuals. The above needs
are more important than money in
motivating people to work.
The manager's basic task is to make each
worker feel useful and important. He must
keep his subordinates informed and listen to
their objections to his plans.
He should show his subordinates to exercise
some self-direction and self-control on
routine matters.
Sharing information with subordinates and
involving them in routine decisions will
satisfy their basic needs to belong and to
feel important.
Satisfying needs will improve moral and
reduce resistance to formal authority-
subordinates will willingly cooperate.b
Human Behaviour Approach
Work is not inherently distasteful. People
want to contribute to meaningful goals
which they have helped establish. Most
people can exercise far more creative,
responsible self-direction and self-control
than their present jobs demand.
The manager's task is to make use of the
untapped human resources.He must create
an environment in which all members may
contribute maximum according to their
ability. He must encourage full participation
on important matters, continually
broadening subordinate self-direction and
control.
Expanding subordinate influence, self-
direction, and self-control will lead to direct
improvements in operating efficiency.
Work satisfaction may prove as a byproduct
of subordinates making full use of their
resources.
Table 3.2: Models of Organisational Behaviour
Autocratic Custodial Supportive Collegial
Basis of model Power Economic Leadership Partnership
resources
46
Managerial Authority Money Support Teamwork
orientation
Employee Obedience Security and Job Responsible
orientation benefits performance behaviour
Employee Dependence Dependence on Participation Self-
discipline
psychologic
al
on boss organisation
result
Employee
needs met
Subsistence Security Status and
recognition
Self-
actualisa-tion
Performance
result
Minimum
Passive
cooperation
Awakened
drives
Moderate
enthusiasm
Conclusion
The four models discussed above have evolved over time to meet the requirements of a
particular period. Therefore, search for a newer model is still on. There is no single model
which is the best suited to the requirements of all organisations. The managers will have to
make use of a combination of models depending upon the circumstances.
Emerging Trends and Changing Profiles of Workforce
Significant changes are taking place in the workplace. These changes shape the
technology, structure and management practices in the organisations. The information age
with its emphasis on telecommunication has created electronic organisations (e-business)
and emerging wireless technology is likely to bring further advances. Virtual organisations
where workforce as a group, work together through computers would be on increase.
The emerging trends in business will create new challenges and opportunities for the
managers. No manager can afford to ignore these trends. Three significant changes are
occurring in Indian Organisations.
(i) Information technology is developing fast and will continue to dominate economy in a
big way.
47
(ii) Women are rising to positions of power in government and private sector
organisations.
(iii) More of ignored sections of society now work in organisations and their numbers are
likely to increase. Let us discuss the trends as under :
1. Information Technology: India has a well educated, English speaking workforce
trained in information technology, several Information Technology
IT) firms like WIPRO, Infosys Technologies, Satyam Computers, HCL Technologies and
like, have been established by Indian entrepreneurs and more can be expected in future.
Hitherto, India has been a exporter of remote services-as skilled software coders and call
centre voices as sales persons and invisible
r.surance clerks. We have tremendous expertise in software development. 1-flex solutions
in Bangalore has developed a banking software that is the best selling product in foreign
countries. Infosys also has its own software product called Finacle, used by banks in
several countries. Many Indian firms offer packaged enterprise resource planning.
2. Women in the Workforce: Women are entering organisations in greater numbers and
the social and cultural barriers for their advancement to higher level positions are breaking
down. We now see a higher divorce rate among women who are dedicated to their careers.
Woman power has to be harnessed without detrimental effects to society, and
organisations are in a position to do
at if they put their minds to helping dual career family women.
3. Diversity in Workplace : The composition of the workforce is changing. Younger,
more educated and more ambitious men and women from different states and castes have
joined the workforce and trend is continuing. If these members are to be kept motivated
and retained in the organisation as fully contributing employees, they will have to be well
trained and given more responsibility as well as freedom to perform their jobs. Our
management practices will have to shift from to-down to bottom-up approach.
4. Workforce Aspirations : With the passage of time, there is a tendency of increasing
workforce aspirations. International demonstration effect and easy access to media, both
print and electronics, have led to this increased aspirations. Today, employees not only
want decent monetary package but highly conducive workplace, quality of work life,
48
flexible work schedule, teamwork, empowerment and so on. For meeting these aspirations
of workforce, managers have to create a new type of work environment.
5. Newer Organisational Designs : Today's organisational designs are not based on
division of labour, rigid departmentation etc. These have moved from bureaucratic to
adaptive structure. Working pattern of newer organisational designs is quite different from
classical organisational designs. Therefore, employeees have to learn new ways of
working.
6. Workforce Diversity : Workforce diversity is the extent of differences and similarities
in characteristics as age, gender, physical abilities and race among the employees of
organisations. Now-a-days, more and more organisations are becoming heterogenerous in
terms of employee composition based on age, gender, physical abilities etc. Workforce
diversity has important implications for management practices. Managers have to shift
their philosophy from treating employees alike to recognising differences.
7. Knowledge Management: Knowledge management is the process of organising and
distributing the collective wisdom of employees so that whatever information is needed is
made available to the right people at right time. A culture of fostering knowledge
dissemination through encouragement and rewarding members for information sharing is
gaining attention.
The Changing Profiles of Workforce
Following headlines may clarify the changing profiles of workforce :
1. At present, there is a strong demand for middle level managment due to shortage of
talent. Managers have to work hard to retain existing talented employees.
2. Today, Indian executives have greater opportunity in Asian markets due to the culture
and local languages known.
3. Superior workforce quality has taken place due to larger number of English speaking
force. This is important for globalisation and cross border mobility.
4. Indian women workforce have been changing herself according to changing profdes of
workforce. They are occupying positions at all levels in the management of an
organisation.
5. There is a great demand of workforce in Information Technology and Automation
Sector.
49
6. There is demand for higher monetary packages due to globalisation. Global salary levels
are being demand by the present workforce.
50
4 INDIVIDUAL BEHAVIOUR
Introduction
Organisations are composed of individuals and each individual is different from the other.
The behaviour of each individual is influenced by several factors. Every individual has
particular motives, ambitions, perceptions and abilities. To understand the human
behaviour in organisations in a better way, a careful study of all the factors which affect
the human behaviour is a must. Every organisation wants to get the maximum possible
efforts and contributions from its employees. The efforts and contributions of human
beings depend upon their behaviour. Thus, it is very important for the organisers to
understand now the individuals behave. Individual behaviour means how an employees or
individual behaves, reacts or responds in a given environment. The factors which affect
the human behaviour are person, environment and the organisation itself.
B = F(P, E nd O)
B = Individual Behaviour
P = Person
E = Environment
O = Organisation
Thus, individual behaviour is a function of person, environment and the organisation. The
following chart shows the factors which affect the individual behaviour.
Factors Affecting Individual Behaviour
Personal Factors
Biographical Factors
Learned Characteristics
- Physical Characteristics
- Age
- Gender
- Religion
- Marital Status
- Experience
- Intelligence
- Ability
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- Personality
- Perception
- Attitudes
- Values
Environmental Factors Organisational Factors
- Economic Factors
- Socio-cultural factors
- Political Factors
- Legal Environment
- Physical Facilities
-Organisation Structure and Design
- Leadership
- Reward System
These factors affecting individual behaviour are discussed in detail as follows: I. Personal
Factors : The personal factors which influence the individual behaviour can be classified
into two categories :
A. Biographical Characteristics
B. Learned Characteristics
A. Biographical Characteristics : All the human beings have certain characteristics
which are genetic in nature and are inherited. These are the qualities which the human
beings are born with. These are the characteristics which cannot be changed, at the most,
these can be refined to some extent. If the managers know about the inherited qualities and
limitations of the persons, they can use their organisational behaviour techniques more
effectively. All these characteristics are explained in detail as follows :
1. Physical Characteristics : Some of these characteristics are related to height, skin,
complexion, vision, shape and size of nose, weight etc. All these have an impact on the
performance of the individuals. It is sometimes said that the eyes betray the character of a
person. Similarly certain ideas about the behaviour can be formed on the basis of whether
the person is fat, tall or slim. Tall and slim people are expected to dress well and behave in
a sophisticated manner and fat people are supposed to be of a jolly nature. Whether there
is a correlation between body structure and behaviour or not, has not been scientifically
proven. Even if there is a correlation between these two, it is very difficult to understand
which is the independent variable and which is dependent variable.
52
2. Age. Age is considered to be an inherited characteristic because it is determined by the
date of birth. The relationship between age and job performance is an issue of increasing
performance. Psychologically, younger people are expected to be more energetic,
innovative, adventurous, ambitious and risk taking. Whereas old people are supposed to be
conservative, set in their own ways and less adaptable. Though it is incorrect to generalise
all old people as unadaptable, physiologically, performance depends on age. Performance
declines with advancement of age because older people have less stamina, memory etc.
Younger people are likely to change jobs to avail better job opportunities, but as one
grows old, the chances of his quitting job are less. There is a relationship between age and
absenteeism also. Older people tend to absent more from their jobs due to unavoidable
reasons e.g. poor health. Whereas younger people absent themselves from job due to
avoidable reasons e.g. going for a vacation. In the organisations which are subject to
dramatic changes due to latest innovations, the older people get less job satisfaction as
they start feeling obsolete as compared to their younger colleagues.
Though there is no clear cut demarcation between young age and old age but according to
Lehman the peak of creative ability is among people between the ages 30 and 40.
3. Gender: Being a male or female is genetic in nature and it is considered to be an
inherited feature. Whether women perform as well as in jobs as men do, is an issue which
has initiated lot of debates, misconceptions and opinions. The traditional view was that
man is tougher than woman or women are highly emotional than man. But these are some
stereotyped baseless assumptions. Research has proved that there are few if any, important
differences between man and woman that will affect their job performance.
Specially, in some areas like problem solving ability, analytical skill, competitive drive,
motivation, leadership, sociability and learning ability, there are no consistent male-
female differences. Initially, some roles were considered to be exclusive domain of
women e.g. nurses, airhostesses etc. but now with the passage of time, we have males in
these professions also. Similarly, some jobs which were considered to be exclusive
domain of men e.g. pilots, defence jobs, etc. have started accommodating women also,
though with some conditions.
Gender has its impact on absenteeism. The tendency to abstain from work is more in
females than in men, because historically, our society has placed home and family
53
responsibilities on the females. When a child is ill, or the house is being white washed or
some unexpected guests turn up, it is the female who has to take leave. The turnover is
also more in female employees, though the evidence is mixed in this case. Some studies
have found that females have high turnover rates, while the others do not find any
difference. The reasons for high turnover can be that sometimes the females have to quit
their jobs or change into part time jobs to look after the children and their homes.
Sometimes they have to quit their jobs if their husbands get transfered to some other place
and the females'job is non-transferable. Although this trend is-changing with the passage
of time, but majority of the Indian familities follow these norms.
4. Religion : Though there are no scientific studies to prove it and we cannot generalise it,
but religion and religion based cultures play an important role in determining some aspects
of individual behaviour, especially those aspects which concern morals, ethics and a code
of conduct. The religion and culture also determine attitudes towards work and towards
financial incentives. People who are highly religious are supposed to have high moral
values e.g. they are honest, they do not tell lies or talk ill of others. They are supposed to
be contended. But there is another side of the picture also. Though there are no evidences
but it has been observed that sometimes people who are highly dishonest and immoral are
more religious as compared to the others.
5. Marital Status : There are not enough studies to draw any conclusion as to whether there
is any relationship between marital status and job performance. Research has consistently
indicated that as marriage imposes increased responsibilities, to have a steady job becomes
more valuable and important. Married employees have fewer absences, less turnover and
more job satisfaction as compared to unmarried workers. But no research has so far
identified the causes for this. Moreover, there are a few other questions which need
answers e.g. (i) What will be the effect of divorce or death of the life partner on the
performance of an employee? (ii) What about couples who live together without getting
married. So far there are no answers to these questions.
6. Experience: The next biographical characteristic is tenure or experience. The impact of
seniority on job performance is an issue which is subject to a lot of misconceptions and
speculations. Work experience is considered to be a good indicator of employee
productivity. Research indicates that there is a positive relationship between seniority and
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job performance. Moreover studies also indicate a negative relationship between seniority
and absenteeism. Employee turnover is also considered to be negatively related to
seniority. But in considering this relationship, past experience i.e. experience of the
employee on the previous job is also to be considered. Research indicates that experience
and satisfaction are positively related. Here we have to distinguish between chronological
age and seniority of the employee. Seniority experience is a better indicator of job
satisfaction than the age of the person.
7. Intelligence: Generally, it is considered that intelligence is an inherited quality. Some
people are born intelligent or in other words intelligent parents produce intelligent
children. But practical experience has shown that sometimes very intelligent parents have
less intelligent children and sometimes average parents have very intelligent children.
Moreover intelligence can be enhanced with efforts, hardwork, proper environment and
motivation. Anyway, whether it is an inherited trait or acquired trait this factor affects the
behaviour of the people. Intelligent people are generally not adamant and stubborn, rather
they are considered to be stable and predictable.
8. Ability : Ability refers to the capacity or capability of an individual to perform the
various tasks in a job. Ability is the criterion used to determine what a person can do.
Ability of an individual can be of two types :
(i) Intellectual ability : If the individual is expected to perform mental activities, he must
have a particular level of intellectual ability. Some important dimensions used to ascertain
intellectual ability are number aptitude, comprehension, perpectual speed and test of
reasoning. For some important jobs or assignment, a person has to clear some admission
test.
(ii) Physical ability: Physical abilities include a person's stamina, manual dexterity, leg
strength and the like. If the performance of a particular job requires some specific physical
abilities, it is the duty of the management to identify the employees having those abilities.
This is accomplished by either careful selection of people or by a combination of selection
and training.
B. Learned Characteristics: Learning is defined as, "a relatively permanent change in
behaviour resulting from interactions with the environment.''
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A person is born with biographical characteristics which are different to change or modify.
Therefore, the managers lay much stress on studying, learning and predicting the learned
characteristics. Some of these learned characteristics are as follows:
1. Personality : By personality we don't mean the physical appearance of a person.
Pshychologists are not concerned with a smart person, with a smiling face and a charming
personality. They consider personality as a dynamic concept describing the growth and
development of a person's whole psychological system. Rather than looking at parts of the
person, personality looks at some aggregate whole that is greater than the sum of the parts.
Personality generally refers to personal traits such as dominance, aggressiveness,
persistence and other qualities reflected through a person's behaviour. Some personality
traits like physical built and intelligence are biological in nature but most traits like
patience, open mindedness, extrovertness etc. can be learned. An individual's personality
determines the types of activities that he or she is suited for. According to Tedeschi and
Lindskold, people who are open minded seem to work out better in bargaining agreements
than people who are narrow minded. Similarly people who are extroverts and outgoing are
more likely to be successful as managers than those who are introverts.
2. Perception : Perception is the viewpoint by which one interpretes a situation. In other
words, "perception is the process by which information enters our minds and is interpreted
in order to give some sensible meaning to the world around us. Psychologist says that
different people see and sense the same :.".ing in different ways. For example, if a new
manager perceives an employee • be a job shirker, we will give him less important jobs,
even though that employee is a very able person. Sometimes, we tend to lose good
relatives and friends because we change our perceptions about them.
3. Attitude : Attitude is just like perception but with a frame of reference. It is a tendency
to act in a certain way, either favourably or unfavourably concerning objects, people or
events. For example, if I stay I am satisfied with my job, I am expressing my attitude
towards work. An attitude may be defined as the way a person feels about something, a
person, a place, a thing, a situation or an idea. It expresses an individual's positive or
negative feeling about some object. An attitude may be unconsciously held. Most of our
attitudes are such about which we are not aware. ONE most common of this is prejudice.
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A person's attitude towards a given situation can be ascertained by measuring and
understanding his feelings, thoughts and behaviours. When we directly ask questions from
the individuals, we can measure his feelings and thoughts. Behaviour can be measured
either by observing the actions of the individual or simply by asking him questions about
how he would behave in a particular situation.
In general, if a person has positive attitude about his work it will be reflected by very good
work performance, less absenteeism, less turnover, obedience towards rule or authority
etc. If a person has got negative attitude towards his work, he will act in exactly the
opposite way. The negative attitude can be changed by simple persuasion or by training
and coaching.
4. Values : According to Milton Rokeach, "Values are global beliefs that guide actions and
judgements across a variety of situations. Values represent basic convictions that a specific
mode of conduct is personally or socially preferable to an opposite mode of conduct."
Values carry an individual's ideas as to what is right, good or desirable. All of us have a
hierarchy of values that form our value system. This system is identified by the relative
importance we assign to some values like freedom, self respect, honesty, obedience,
equality and so on.
II. Environmental Factors: The external environment is known to have a considerable
impact on a person's behaviour. A brief discussion is as under :
1. Economic Factors: The behaviour of a individual is affected to a large extent by the
economic environment. A few economic factors which directly or indirectly affect the
individual behaviour are as explained below :
(a) Employment Level : The employment opportunities which are available to the
individuals go a long way in influencing the individual behaviour. If the job opportunities
are less, the individual will have to stick to a particular organisation even though he does
not have job satisfaction. He may or may not be loyal to the mangement but he will remain
in the organisation for monetary benefits only. On the other hand if the job opportunities
are more, the employees turnover will be more. They will continue changing their jobs till
they find the ideal job, which gives them maximum satisfaction, monetary as well as
psychological.
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(b) Wage Rates: The major consideration of every employee who is working in the
organisation is his wages. Though job satisfaction is very important, but what a person
will get in money terms, is the major factor affecting the decision of a worker to stay in a
particular organisation or shift to another one which will pay more wages.
(c) General Economic Environment: Some employees who are working in Government
offices or public sector undertakings are not affected by economic cycles. Whatever the
economic position of the organisation, they will receive their salaries. Whereas, the
employees, who work in the organisations which are severely affected by economic
cycles, are subjected to lay offs and retrenchment. For these employees job security and a
stable income is the most important factor whereas the former employees will be
motivated by some other factors.
(d) Technological Development: Though technology is not an economic factor, but we
include it in the economic factors because of the impact it has on the individual job
opportunities. The technological development has made the job more intellectual and
upgraded. Some workers will be dislocated unless they are well equipped to work on new
machines. This makes it the duty of management to retrain the employees. For those, who
pickup and acquaint themselves with new technology, the jobs will be rewarding and
challenging.
2. Socio-cultural Factors : The social environment of an individual includes his
relationship with family members, friends, colleagues, supervisors and subordinates. The
behaviour of other people not with the individual, but in general, is also a part of his social
environment. Similarly, every individual has a cultural background, which shapes his
values and beliefs. Work ethics achievement need, effort-reward expectations and values
are important cultural factors having impact on the individual behaviour.
3. Political Factors : Political environment of the country will affect the individual
behaviour not directly, but through several other factors. In a politically stable country
there will be a steady level of employment (both in quantity and quality) and high level of
capital investment. Whereas companies are reluctant to invest large sums of money in a
politically instable country.
The political ideology of a country affects the individual behaviour through the relative
freedom available to its citizens. A country can have a controlled society or less controlled
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society. The relative freedom available to the individuals can affect their career choice, job
design and performance.
4. Legal Environment : Rules and laws are formalised and written standards of
behaviour. Both rules and laws are strictly enforced by the legal system. Laws relate to all
the members of the society e.g. Murder is a crime which is illegal and punishable by law
and applies to all the people within the system. Observing the laws voluntarily allows for
predictability of individual behaviour.
III. Organisational Factors : Individual behaviour is influenced by a wide variety of
organisational systems and resources. These organisational factors are as explained below
:
1. Physical Facilities : The physical environment at a work place is the arrangement of
people and things so that is has a positive influence on people. Some of the factors which
influence individual behaviour are noise level, heat, light, ventilation, cleanliness, nature
of job, office furnishing, number of people working at a given place etc.
2. Organisation Structure and Design : These are concerned with the way in which
different departments in the organisation are set up. What is the reporting system? How
are the lines of communication established among different levels in the organisation. The
behaviour and performance of the individual is influenced by where that person fits into
the organisational hierarchy.
3. Leadership: The system of leadership is established by the management to provide
direction, assistance, advice and coaching to individuals. The human behaviour is
influenced to a large extent by the behaviour of the superiors or leaders. Behaviour of the
leaders are more important than their qualities.
4. Reward System : The behaviour and performance of the individuals is also influenced
by the reward system established by the organisation to compensate their employees.
Models of Man
We have explained about the different models of organisational behaviour. All of these
models are related to different types of human needs. These models are based upon
management's assumptions about people. The effectiveness of the management will
depend upon the extent to which the assumptions fit the actual situation. However, such
assumptions have shown great variations and there has been no unanimous view.
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Therefore, it is a must that we should also refer to the models of individual behaviour. A
number of models of man have been given in terms of his basic nature, his behaviour etc.
A brief description of a few models is presented below :
1. Rational Economic Man : From the organisational perspective, managers had, for a
long time, viewed their employees as rational beings who are primarily motivated by
money. They took the "ECONOMIC MAN" and 'RATIONAL MAN' approach to
understand and predict the human behaviour. This model is based on classical organization
theory. The Scientific Management Movement was based on the belief that by rationally
explaining the one best way to do things and offering incentives to workers in the form of
piece rates and bonuses, organisational output can be increased. Psychologists have also
studied this model for predicting human behaviour. For example, McGregor's assumptions
of Theory X reflect this model. The basic assumptions of the concept of 'Rational
Economic Man' are as follows :
(i) People are motivated primarily by economic incentives. They will do things which get
them the greatest economic gain.
(ii) As the organisation controls the economic incentives, human beings are essentially
passive agents, who are manipulated, motivated and controlled by the organisation.
(iii) The feelings of the people are essentially irrational and must be controlled to achieve
rationality and self interest.
(iv) Organisations can and must be designed in such a way so as to neutralise and control
people's feelings and therefore their unpredictable traits.
In this model, people are induced to produce more by providing them with economic
incentives. In this case, there is no organisation-employees conflict because both are
satisfying their needs simultaneously. Management is getting more production and prople
are getting more money. Drawbacks:
(i) As this model is based on the classical organisation theory, it suffers from the
shortcomings inherent in that theory and do not suit the present day organisation.
(ii) The economic incentives can work till the man is not reasonably satisfied by the need
of money.
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Though, the need of money is inexhaustible and the man will never have enough, but after
a certain stage, only money will not be sufficient for him. He will have some
psychological needs also, which cannot be fulfilled by the organisation in this case.
Therefore, it can be stated that the whole assumption of Rational Economic man are not
sufficient in understanding and predicting human behaviour.
2. Social Man: With the passage of time, the advocates of Human Relations School
recognised that there is a lot more to human behaviour than just being economic and
rational. Advocates of this school considered the worker as a social man. They recognised
that man is a part of the social group, he is influenced by the social forces and seeks
satisfaction of the needs which are related to the maintenance of his social relationships.
Eltan Mayo conceived the concept of the social man when he carried out Hawthorne
studies during 1927-32. From the reports of Hawthorne experiments the following
assumptions about human beings can be drawn :
(i) Human beings are basically motivated by social needs and all their efforts are directed
towards getting this satisfaction by maintaining relationships with others.
(ii) A human being is more responsive to the pressures and sanctions of his social group
than to the incentives and controls of the management. The reason is that he values social
relationship higher than his economic motives which are directly under the control of
management.
(iii) The amount of work to be done by a worker is not determined by his physical capacity
or by the management but by the social norms.
(iv) Generally people do not act or react as individuals but as members of a group.
(v) Informal leaders play an important role in setting and enforcing the group norms.
(vi) Management should change and organise work in such a way that it provides more
belongingness not only in terms of interpersonal and group relationships, but also man's
relationship with his job.
The type of managerial strategy that is to be applied in the case of social man is quite
different as compared to the strategy to be applied in case of Economic-Rational man. The
total system of social man is directed towards people. The following changes were
required in the managerial strategy.
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(i) Earlier the management was conceived only with the output given by the workers. In
this approach, the management had to pay attention to the workers also as human beings.
(ii) Earlier, the only concern of the management was to provide economic incentives to the
workers or in other words to look after their economic needs, but under this concept, the
psychological needs were also to be considered.
(iii) Another required change was to analyse and motivate human behaviour in terms of
groups rather than on individual basis.
(iv) Another change which was required was in the behaviour of the manager instead of
being the controller of behaviour, he was supposed to act as the supporter of workers.
The social man approach was also considered somewhat simplistic.
As time passed by organisational behaviour theorists, such as Argyris (1957), Likert
(1961, 1967) and McGregor (1960) argued that people in organisations need opportunities
to use their individual creativity and must have their growth needs met in order to function
effectively.
3. Organisational Man : Organisation man is an extension of social man. The concept of
organisation man was introduced by William Whyte. He believed that it is very important
for a person to be loyal to the organisation and cooperative with the fellow workers. Any
person who believes in this value system and acts in this way is an organisation man. The
basis of this concept is that every individual should sacrifice his individuality for the sake
of the group and the organisation. This idea was initially suggested by Henry Fayol, when
he suggested that individual interest should be subordinated to the general interest. Whyte
had explained three major propositions, on which this concept of organisation man is
based. These propositions are as follows :
(i) The first proposition is that individual by himself is isolated and meaningless. The
group is the source of activity. Individuals create only when they move in a group. A
group helps to produce a whole that is greater than the sum of its parts.
(ii) The ultimate need of every individual is belongingness. He wants to belong to his
families, friends, relatives, colleagues and other members of the society as a whole. Whyte
says that there should be no conflict between man and society.
(iii) The goal of belongingness is achieved with the help of science. Whenever there is a
conflict between the needs of the society and the needs of the individual, an equilibrium
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can be created by applying the methods of science. Science can help in removing all the
obstacles to consensus.
The organisation man concept emphasis that there is no conflict between the individual
interest and the interest of the organisation. Even if there is any conflict, individual interest
will be sacrificed in favour of the group interest to remove the conflict. However, there is
a basic assumption behind this concept. The assumption is that management will take care
of the individual interests. It would be the duty of the mangement to satisfy the needs of
the individuals. People will be willing to sacrifice their interests for the organisation only
if they are positive that the organisation would take care of them.
4. The Self Actuating Man: The concept of self actuating man is a further extension of
social man and the organisation man models. The social man concept assumes that the
formation of social groups is the basis of satisfaction for the individuals. But as against
this the self actuating man assumes that man's inherent need is to use his capabilities and
skills in such a way that he should have the satisfaction of creating certain things. The
earlier models do not allow him to satisfy his self actuating needs. Following are the main
assumptions about the self actuating man :
(i) The basic assumption about this concept is that the various needs of a man can be put in
the order of priority. For example,
MASLOW has put various needs in a hierarchy : Every unsatisfied need is a motivational
factor for him. Self actualisation according to this diagram is the ultimate goal, because it
is last in the hierarchy and by the time his goal is achieved, all the other needs of the man
are also satisfied.
(ii) In the process of self actualisation, there are various changes in the behaviour of the
HIERARCHY OF NEEDS individual and he moves from immaturity to maturity.
(iii) Another assumption is that a man is primarily self motivated and self controlled. Any
incentives given by the management cannot motivate him after a certain level and any
control imposed on him cannot threaten him.
(iv) The earlier models were based on the assumption that a man has got immature
personality. However, the reality is that if a man is left free, he will put in his maximum
efforts.
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These assumptions are generally based upon McGregor's theory Y and Argyris's
immaturity-maturity theory. To satisfy a self actuating man what is required is all the
managerial actions meant to satisfy the social man with some additional features.
5. Complex Man : Complex man presents the real picture of human behaviour. All the
previous models make very simplistic assumptions about people and their behaviour.
Researches have proved that these assumptions are not correct as explained below :
(i) The earlier models assume that man will always behave according to certain set
patterns. But research has indicated that there are many complex variables, which
determine the human behaviour. These variables are quite unpredictable. So the human
behaviour which is based on these variables cannot follow a set pattern.
(ii) The behaviour of man can be understood and predicted in the given conditions,
depending upon the assumptions made. But research has indicated that even if cause-effect
relationship is established between the variables and behaviour, it is not easy to understand
and predict the individual behaviour because of the individual differences. It is not
necessary that everyone will behave accordingly.
Most behaviours in the organisation can be understood by taking assumptions of complex
man. Following are a few assumptions about the complex man:
(i) People are not only complex but are also highly variable. Though their needs can be
arranged in a hierarchy, but this hierarchy is also not universal. Different people may have
different hierarchies.
(ii) People are capable to learning new motives through their organisational experiences.
(iii) People's motives in different organisations or different sub parts of the same
organisation may be different.
(iv) People can respond to many different kinds of management strategies. Though this
model is quite complex, it indicates the real situation and lays
emphasis on the fact that human behaviour is not as simple as assumed in the previous
models. Hence current thinking on the subject is to take a 'complex man' approach and
recognise that different individuals have different needs and personality traits and if there
is a proper match between these and the environment they operate in, functional behaviour
will emerge.
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Individual Behaviour and Performance
Performance of individuals depends on four elements of individuals
behaviours i.e., motivation, abilities, role perceptions, situational contingences.
These four factor have combined effect on the performance of individuals. If
any one factor weakens, employees performance will be adversely affected. These
factors are briefly discussed as follows :
1. Motivation : Motivation is a very important factor which encourages people to give
then bet performance and help in reaching enterprise goals. A strong positive motivation
will enable the increased output of an employee but a negative motivation will reduce the
performance. The efforts of the management to get maximum out of the employees will
not bear fruit of the employees are not motivated enough to work more. Motivation
positively affects the direction, inensity and persistence of individual behaviour.
2. Ability : A second factor influencing the individual behaviour and performance is the
person's ability. Ability refers to the capacity or capabilities of an individual to perform the
various tasks in a Job. It is a criterion used to determine what a person can do. Ability can
be both intellectual as well as physical. If a person is expected to perform mental
activities, he must have a particular level of intellectual ability. If the perfomance of a
particular job requires some specifie physical abilities, it is the duty of the management to
identify the employees having those abilities. Ability will include natural aptitudes as well
as learned capabilities required to successfully complete a task.
3. Role Perceptions : A person's beliefs about what behaviours are appropriate in
particular situations are known as role perceptions of the employees. For accurate role
perception, an employee must understand the specific task assigned to him, the relative
impotance of that task. Inaccurate role perceptions can cause employees to exert effort
toward the worng goals and ambiguous role perceptions lead to lower effort.
4. Situational Contingencies : Job performance of an employee is also affected by the
situational contingencies i.e. conditions beyond the employee's immediate control; at least
in the short term. Contingencies which originate from the external environment are
generally beyond the control of employees and the organisation. It is very important to
identify these conditions so that the work environment is optimised for employee
65
performance. Some companies encourage employees to focus on things they can control
rather than the external situational contingenuel.
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5 PERSONALITY
Introduction
Human behaviour is most difficult to define in absolute terms. It is a complex
phenomenon. It is primarily a combination of responses to external and internal stimuli.
These responses reflect psychological structure of a person.
Psychologist Kurt Levin believes that people are influenced by a number of diversified
factors and the influence of these factors determines the pattern of behaviour. An
individual's behaviour may change due to change in the same environment. Different
people behave differently in the same or similar environment. However, when situation
demands, environment may change the behaviour of an individual.
In fact organisations are composed of individuals. No organisation can exist without
individuals. Hence, the organisational performance is largely affected by way individuals
behave at work. Managers have to understand individual/ human behaviour at work so as
to extract the best and maximum contribution from them.
The study of individual behaviour draws heavily on the discipline of psychology and
explains why individuals behave and react as they do in response to different situations.
Learning, motivation and leadership are the theories that have been developed to explain
the behaviour of individual. Also socio-psycho-logical theories have tried to explain how
attitudes, beliefs, perceptions and values are inculcated and influence individual
behaviour.
Personality is an organised whole concept which acts towards the fulfilment of different
objectives. It can be defined as the totality of man. Personality is the sum total of all
tendencies that an individual has. inherited and that he acquired by experience. It is the
combination of body and mind which depends upon heredity and environment. Personality
is used whenever, wherever we talk about a person's job prospects, achievements, attitude ,
perception, values and philosophies of life.
When we talk of personality, we don't mean that a person has charm, a positive attitude
toward life, a smiling face etc. When psychologists talk of personality, they mean a
dynamic concept describing the growth and development of a person's whole
psychological system.
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Meaning of Personality
The word 'personality' has been derived from the Latin word 'persona' which means to
'speak through.' The word persona originally meant an actor's mask through which the
sound of his voice was projectad. Later persona was used mean not the mask itself but the
false appearance which the mask created. Still later it came to mean the characters in the
play.
Personality is a very frequently used word but still there is no consensus about its
meaning.
However, personality is a concept that we use continuously in our day-today routine when
dealing with people. We talk about people as having good personality or bad personality.
Personality can be reflected in a person's temperament and is a key factor influencing
individual behaviour in organisations. Often the wrong type of personality of a superior
proves disastrous in terms of workers' unrest and protests. Sometimes the personality
difficulties are the root cause of labour strikes.
These are some of the important definitions of personality :
"Personality can be described as how he understands and views himself and his pattern of
inner and outer measurable traits." Ruch
"Personality is a dynamic organisation within the individual of those psychophysical
systems that determine his unique adjustment to his environment." -Allport
"Personality means how a person affects others and how he understands and views himself
as well as the pattern of inner and outer measurable traits and the personal and situational
interaction." Fred Luthans
"Personality may be understood as uncharacteristics patterns of behaviour and modes of
thinking that determine a person's adjustment to the environment." -Hilgard
Salvatore Maddi has defined personality as follows :
"Personality is a stable set of characteristics and tendencies that determine those
commonalities and differences in psychological behaviour (thoughts, feeling and actions)
of people that have continuity in time and that may not be easily understood as the sole
result of the social and biological pressures of the moment."
There are several aspects of this definition. The first aspect is that of relative stability of
characteristics. These characteristics account for "consistent patterns" of behaviour. If a
68
person's entire personality could change suddenly, then we would not be able to predict his
personality traits.
The second aspect of the definition is the "commonalities and differences" in the
behaviour of people. We are interested in understanding as to what an individual has in
common with others as well as what sets that individual apart from others.
A manager must understand that all subordinates are not alike and that each subordinate is
unique and may or may not respond to the same stimuli, such as pay raise.
As a matter of fact, we are interested in such aspects of personality that induce people to
behave in a manner as required by social pressures or biological pressures. For example, if
your boss wants you to do a job in a particular way, you will do it even if you disagree
with your boss.
Finally, we can say that personality represents the "whole person" concept. It includes
perception, learning, motivation and more. It is like a mirror through which one sees one's
self, the world and how the world sees a person.
Determinants of Personality
The major determinants of personality can be studied under four heads :
1. Biological
2. Cultural
3. Family and Social
4. Situational
1. Biological Factors : Biological factors may be studied under the following heads:
(i) Heredity : Heredity refers to those factors that are determined at the time of
conception. These traits are those of physique, eye colour, hair colour, attractiveness,
height and nervous systems. At conception, each parent normally contributes twenty three
chromosomes containing thousands of genes that seem to be the transmitters of traits in
certain combinations. Even two real brothers may have different personality traits. These
traits (physical stature, facial attractiveness, sex temperament etc.) are inherited from one's
parents. It has been proved that heredity plays an important part in determining an
individual's personality.
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(ii) Brain: Another biological factor that influences personality is the role of the brain of
an individual. However, psychologists are unable to prove empirically the contribution of
human brain in influencing personality.
(iii) Physical Features : It is perhaps the most outstanding factor that contributes to
personality of an individual. An individuals external appearance is proved to be having a
tremendous effect on his personality. Good physical appearance is an asset for the job of a
sales person and for public relations. Physical features include height, weight, colour,
facial appearance etc., of an individual. Psychologists contend that different stages of
maturity will also influence an individuals personality.
2. Cultural Factors : Cultural factors are usually considered to make a more significant
contribution to one's personality than biological factors. The culture in which an individual
is raised and his early conditioning plays a significant role in shaping his personality.
Each culture establishes the norms, attitudes and customs that are passed from one
generation to the next and creates consistencies overtime. When analysing organisational
behaviour, the relevant cultural impact must be recognised and appreciated. In Indian
culture, touching the feet of elders and taking their blessings is desirable. Accordingly, this
cultural value is carried over to work settings and elderly superiors consider it acceptable
where subordinate bows down and touches their feet for blessings on certain special occa-
sions.
Culture determines attributes such as independence, aggression, competition and co-
operation. Each culture expects and trains its members to behave in certain acceptable
ways.
3. Family and Social Factors : Family and social groups influence the development of
personality of an individual. Family and social factors shape a person's personality through
the process of socialisation and identification.
Socialisation is process by which a person acquires wide range of behavioural
potentialities that are open to him or her starting from birth. These are behavioural patterns
that are customary and acceptable to the standards of initially, the family, and later the
social groups and finally the employing organisations.
Thus, socialisation starts with the initial contact between mother and her new infant. After
infancy, other members of immediate family, father, brother, sister and close relatives and
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friends, followed by the social group peers, and members of the working group play
influential roles.
Indentification starts when a person begins to identify himself with some or the other
member of the family. Normally, a child tries to copy certain actions of his parents.
4. Situational Factors : An individual's personality may change in different situations.
Therefore, we should not look at the personality factor in isolation. Healthy and unhealthy
situations, circumstances, extent of happiness or grief etc., create deep impact on one's
personality. It is the situations which develops one's personality. The demands of different
situations may call for different aspects of one's personality.
5. Other Factors
(i) Character : Character means honesty. Character is very important requirement for the
development of personality.
(ii) Motives : These are the inner drives of the individual. They represent goal directed
behaviour of individual. The behaviour of an individual varies because of his inner drives.
(iii) Temperament: It is the degree to which one responds emotionally.
(iv) Interest: An individual may have many interests in various areas. The organisation
must provide opportunities, like job rotation and special training to satisfy the interests of
employees.
Approaches to personality Development
There are two approaches to development of personality. One approach tries to identify
specific physiological and psychological stages that occur in the development of
personality. The second approach tends to identify the important determinants of
personality.
Many psychologist have contributed to the stage approach. The prominent psychologists
include Freud, Erikson, Alfred Alder, Carl Jung, Levinson. The stage approach has been
theoretical in nature.
1. Freudian Stages : Sigmund Freud propounded psychoanalytic theory of personality
which is based on the concept that man is motivated more by unseen forces than by
conscious forces. The clinical finding led him to calculate that major motivating force in
man is unconscious frame work. There are three aspects to this framework. These are as
under :
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(i) The 'Id': The 'Id' is the foundation of the conscious behaviour and is the base of libido
drives. It is the original and the most basic system of human personality. In the Freudian
theory 'Id' is primitive and is governed by the principles of greed and pleasure.
'Id' represents a store house of all instrinct, containing in its dark depths all wishes and
desires that unconsciously direct and determine our behaviour. In simple words, Id is the
source of psychic energy and seeks immediate satisfaction of biological or instinctual
needs.
(ii) The 'Ego' : Ego is related with the realities of life. The Id is unconscious part while
the ego is conscious part of human personality. It checks the Id through logic intellect. The
most important characteristics of ego is that it has the ability to distinguish between mental
images and actual sources of tension release, and it responds to the real source of tension
reduction. The ego performs this task by :
(a) observing accurately wnat exists in the outside world.
(b) recording these experience carefully remembering and
(c) modifying the external world in such a way as to satisfy the instinctual wishes.
(iii) The Super Ego : The super ego represents system of values, norms and those that
guide and govern a person to behave properly in the society. In one sense, the super ego
can be described as conscience. It provides norms and i ilues to ego to determine what is
wrong or right at a given time in a given situation.
In other words, the super ego judges whether an action is right or wrong as per the set
norms and standards of society.
2. Erickson Stages: Freud's theory emphasised the sexual and biological factors in
developing the personality. But Erickson criticised this emphasis because he was of the
view that more importance should be given to social factors. Erickson described eight
development stages. These have been described as under:
(i) Infancy: During the first year of life, a child has a great need for dependency. Feeling
of Trust v/s Mistrust are developed in this stage and these feelings depend upon the
behaviour of the parents. If the parents care for the infant in a very affectionate way, the
child learns to trust other people. Lack of love and affection on the part of the parents
results in mistrust. This stage makes a serious impact on a child that influences his
behaviour throughout the life.
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Similarly, in the early stages of organisational life, when a person knows sery little about
the job and is dependent on others for guidance, he develops the feelings of trust or
mistrust towards others in the organisation depending upon the behaviour of other people.
(ii) Early Childhood: In the second and third year of lift a child begins to insert
independence and experiences a great need to operate on his own. Similarly, in the
organisational life, a person wants to operate independently after initial training. If he is
allowed to do so, a feeling of autonomy will develop.
(iii) Play Age : When a child a four and five years old, he tries to discover how much he
can do. If the parents encourge him to experiment and to achieve reasonable goals, he will
develop a sense of initiative. In the same way organisational members try to use their
creative and acquired talents as they settle down in their jobs.
(iv) School Age : From 6 to 12 years of age, he learns many new skills and develops social
abilities. If the child experiences real progress at a rate compatible with his abilities he or
she will develop a sense of industry. Likewise, in" ur organisational life, we try to work
hard to make a position for ourselves.
(v) Adolescence : As a child reaches the end of his adolescence (teenage years) he
experience conflict due to the socially imposed requirements that he should become an
independent adult. In this period, he has to gain a sense of identity. In organisational set up
also every employee has to make contributions to the organisation and establish himself as
a high performer.
(vi) Early Adulthood : During the twenties, need is felt to develop intimate relations with
others. In the organisational life also, people may desire to develop close contacts with
others who are significant and important in the system.
(vii) Adulthood: This is the stage of middle adulthood. Self absorbed people never
develop an ability to look beyond themselves. They become absorbed in career
advancement and maintenance. Likewise in organisations, as a person reaches his mid
career, there is an expectation and need to mentor others in the system and help them to
develop and grow in the organisation.
(viii) Mature Adulthood : In this stage, person gains a sense of wisdom. This stage lasts
from middle adulthood to death. In this stage, conflict is experienced by individuals as
their social and biological roles get minimised due to ageing process and they experience a
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sense of uselessness. If they resolve the issue, they can experience happiness by looking at
their consolidated life long achievement.
Likewise, in the organisational life, a person can have a feeling of ego integrity after
retirement by looking at his stock of achievements.
All the stage are interlinked. If one conflict is not resolved in one stages, it will be carried
forward to subsequent developmental stage. Therefore, managers must identify the
unresolved conflicts and try to help the employees in dealing with them.
3. Chris Argyris' Immaturity-Maturity Theory: Argyris proposes that human personality,
rather than going through precise stages, progresses alone in a continuous way from
immaturity as an infant to maturity as an adult. Chris Argyris identified seven
characteristics in continuum as given in the following table :
Table : Immaturity-Maturity Continuum
Immaturity Characteristics Maturity Characteristics
1. Passivity 1. Activity
2. Dependence 2. Independence
3. A Few ways of behaving 3. Diverse behaviour
4. Shallow interest 4. Deep interests
5. Short time perspective 5. Long time perspective
6. Subordinate position 6. Superordinate position
7. Lack of self-awareness 7. Self-awareness and control
Traits Theory/Personality Traits
Trait theory visualises personality as a reflection of certain traits of the individual. Even
though there are many traits that are common to most people, there are many other traits
that are unique to a person and are not shared by other individuals. On the basis of traits
theory people can be described as aggressive, loyal, pleasant, flexible, humorous,
sentimental, cool and so on.
Traits are the basic elements of personality and can be used to summarise behaviour.
These are enduring characteristics that describe an individual's behaviour. These
characteristics, when they are exhibited in a large number of r.tuations, are called
personality traits. The more consistent the characteristics and more frequently it occurs in
diverse situations, the more important that traits is in describing the individual.
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B.R. Cattell listed 171 personality traits, but concluded that they were - perficial and
lacking in descriptive power. What he sought was reduced set of traits that would identify
underlying patterns. The result was the identification sixteen personality factors, which he
called primary traits. The sixteen primary traits have been listed in the following table.
Table : Sixteen Primary Traits _
1. Reserved Outgoing
2 Less intelligent More intelligent
3. Affected feelings Emotionally more stable
4 Submissive Dominant
5 Serious Happy-go-lucky
6 Expedient Conscientious
7 Timid Venturesome
8 Toughminded Sensitive
9. Trusting Suspicious
10. Practical Imaginative
11 Fortright Shrewd
12 Self-assured Apprehensive
13. Conservative Experimenting
14 Group dependent Self-dependent
15. Uncontrolled Controlled
16 Relaxed Tense
Trait theory makes more sense than other theories as it provides continu human
personality. The trait theorists have provided personality tests aad factor analysis
techniques to behavioural science. In spite of these facts, it descriptive rather than
analytical to present a comprehensive theory of per aaaality.
Five Pesonality Traits
In recent times, researchers have identified five fundamental traits that are specially
relevant to organisations. Because these five traits are so impor-that they are currently
receiving so much attention, they are now called big five personality traits. These five
traits as as follows :
1. Agreeableness.
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2. Conscientiousness.
3. Negative emotionality.
4. Extroversion.
5. Openness.
Each of these five personality traits has two extreme points-high and low as shown in
figure.
In general, experts agree that personality traits closer to the left end of each dimension are
more positive in organisational setting, whereas traits closer to the right are less positive.
A brief description of these traits is presented below :
High agreeableness Agreebleness Low agreeableness
High conscientiousness Conscientiousness Low conscientiousness
Low negative
emotionality
Negative
emotionality
High negative
emotionality
Extroversion Extroversion Introversion
More openness Openness Less openness
1. Agreeableness : Agreeableness refers to a person's ability to get along with others.
Agreeableness causes some people to be gentle, cooperative forgiving, understanding, and
good-natured in their dealings with others. Though researchers have not yet fully
investigated the effect of agreeableness, it seems likely that highly agreeable people are
better in developing good working relationships with coworkers, subordinates, superiors,
whereas less agreeable persons are not likely to have good working relationships. The
same behavioural pattern may extend to relationship with customers, suppliers, and other
organisational constituents.
2. Conscientiousness : Conscientiousness refers to the number of goals on which a person
focuses his attention. Persons who focus on relatively a few goals at a time are likely to be
organised, systematic, careful, thorough, and disciplined; they tend to focus on small
number of goals at one time. Persons with less conscientiousness tend to pursue a wider
array of goals and, as a result to be more disorganised, careless.and even irresponsible as
well as less thorough and self-disciplined. Researches show that more conscientious per-
sons tend to be higher performers than less conscientious persons in a variety of jobs. This
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pattern seems to be logical since conscientious persons take their jobs seriously and
approach their jobs in a highly responsible fashion.
3. Negative Emotionality : Emotion means moving of the feelings or agitation of mind.
Person with less negative emotionality are relatively poised, calm, resilient, and secure.
Persons with less negative emotionality tend to better handle job stress, pressure, and
tension. Their stability also leads them to be seen as being more reliable than their less-
stable counterparts. Persons with more negative emotionality are more excitable, insecure,
reactive, and subject to extreme mood swings.
4. Extroversion : Degree of extroversion reflects a person's comfort level with
relationships. There may be persons with either introversion or extroversion features.
Introversion is the tendency in individuals which directs them to turn inward and
experience and process feelings, thoughts and ideas within themselves. Extroversion refers
to the tendency in individuals to turn outward of themselves searching for external stimuli
with which they can interact. Introverts are quiet, reflective and intellectual people who
prefer to interact with a small intimate circle of friends. They are more likely to be
successful when they can work on highly abstract ideas such as research and development
in a relatively quiet atmosphere. Extroverts, on the other hand, are sociable, lively and gay,
and seek outward interaction. They are likely to be more successful working in the sales
activities, publicity department, public relations unit, and so on where hey can interact
face to face with others.
5. Openness: Openness refers to a person's rigidity of beliefs and range of interests.
Persons with high level of openness are willing to listen to new ideas and to change their
own ideas, beliefs, and attitudes to new information. They also tend to have broad interests
and to be curious, imaginative, and creative. On the other hand, persons with low level of
openness tend to be less receptive to new ideas and less willing to change their minds;
they tend to have fewer and narrower interests and to be less curious and creative.
Generally, persons with more openness perform better due their flexibility and the
likelihood is that they are better accepted in the organisation.
The big five personality traits still continue to attract attention of both researchers and
managers. The framework of big five traits has its potential value as it encompasses an
integrated set of traits that appear to be valid predictors of certain behaviours in certain
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situations. According to Mound et al. "managers who can both understand the framework
and assess these traits of employees are in a good position to understand how and why
they behave as they dc." However, while applying this framework in their organisations,
Indian managers should take adequate precaution to ensure that possession of higher
degree of these traits is really in'tune with their organisational requirements because these
traits have been tested in organisations of the USA. Because of cultural difference between
India and the USA, it is not necessary that the big five framewrok is applicable in Indian
organisations in totality.
Other Personality Traits
Besides five big traits, there are certain other personality traits which are relevant for
organisations. These traits are self-concept and self-esteem, •jachiavellianism, locus of
control, tolerance for ambiguity, type A and B, work
I orientation, and risk propensity.
1. Self-concept and Self-esteem : Self-concept is the way individuals define themselves
as to who they are and derive their sense of identity. Self-esteem denotes the extent to
which they consistently regard themselves as capable, successful, important, and worthy
individuals. Self-esteem is an important personality factor that determines how managers
perceive themselves and their role in the organisation. People with high self-estgeem tend
to take on more challenging assignments and contribute significantly to the organisational
effectiveness if the organisation rewards them suitably for their contributions.
2. Machiavellianism: Machiavellianism refers to manipulation of others is a primary way
of achieving one's goals. Mach scale measures the extent to »hich an individual tends to be
machiavellian. People with high score on mach acale, tend to be cool, logical in assessing
the system around them, willing to twist and turn facts to influence others, and try to gain
control of people, events and situations by manipulating the system to their advantage.
3. Locus of Control: Locus of control means whether people believe that they are in
control of events, or events control them. Those who have internal locus of control believe
that they control and shape the course of events in their lives; those who have external
locus of control tend to believe that events occur purely by chance or because of factors
beyond their own control. Former category of people seek opportunities for advancement,
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and rely more on their abilities and judgement at work; while letter category of people
remain mostly inactive and allow the events occur on their own.
4. Tolerance of Ambiguity : Based on personality characteristics, some people can tolerate
high level of ambiguity without experiencing undue stress and still function effectively
while people who have a low tolerance for ambiguity may be effective in structured work
setting but it is almost impossible for them to operate effectively when things are rapidly
changing and much information about the future turn of events is not available. Generally
managers have to work in an environment full of uncertainty because of rapid change;
therefore, they have to develop high level of tolerance for ambiguity.
5. Type A and B : Personality has been grouped into two categories denoted by alphabets
A and B. Type 'A' people always feel a sense of time urgency, are highly achievement-
oriented, exhibit a competitive drive, and are impatient when their work is slowed down
for any reason. Such people are more prone to heart attack. On the other hand, type 'B'
people are easygoing, do not have urgency for time, and do not experience the competitive
drive.
6. Work-ethic Orientation : People may have different work-ethic orientation. The
extemely work-ethic-oriented people get greatly involved in the job and live up to being
described as living, eating, and beathing the job. For such people, work becomes the only
consideration of satisfaction and they have very little outside interests. On the other hand,
people with low work-ethic orientation try to do the minimum that is necessary to get
without being fired on the job. For effective organisations, people with high work-ethic
orientation are necessary as compared to extremely high or low work-ethic orientation
because the extemely high work-ethic oriented people will burn their energy to quickly
creating lot of heaty problems, thus, affecting long-term organisational effectiveness
adversely, while people with low work-ethic orientation will not be able to achieve
anything meaningful for the organisation.
7. Risk Taking: Risk propensity is the degree to which a person is willing to take chances
and make risky decisions. A person with high risk propensity experiments with new ideas.
In an organisational context, he may introduce new ideas, gamble on new products, and
lead the organisation in new and different directions. However, such a person may
jeopardise the continued well-being of the organisation if the excessive risky decisions
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prove to be bad ones. On the other hand, a person with low risk propensity believes in
excessive conservatism and tries to maintain status quo. In an organisation, such a person
resists changes and trying new ideas.
Based on the above discussion, some conclusions can be drawn about the desriable
personality traits for effective managers. Apart from the big five personality traits,
effective managers need to have high level of self-concept and self-esteem, internal locus
of control, high tolerance for ambiguity, orientation to a type of high work ethic
orientation and moderate risk bearing propensity.
Personality Traits for Indian Managers
Since personality traits are highly correlated with managerial performance, :t is desirable
to have knowledge of personality traits of Indian managers. There are several research
studies which have tried to find out the personality traits of Indian managers. However, the
result of these researchers show great variation because of the differences in personality
traits that have been studied, therefore instead of reviwing each of these studies, some
generalisation are being presented which are as follows :
1. Indian managers are somewhat emotional, casual, sensitive, tough, tense, and group
dependent.
2. On two personality characteristics-authoritarian (traits like rigidity, lack of tolerance,
dominance over weak and submission to poweful, adherence to connections, and
traditional values) and machiavellianism (traits like being cool and detached,
manipulative, and indifferent to individual needs), there is equal distribution of managers
among high and low.
3. Indian managers have need for achievement and comptence though they have lower
level of maturity, persistency, and suspicion as compared to American managers.
4. Indian managers show paternalistic type of behaviour such as cooperation, friendliness,
sympathy, and nurturance. They believe in assisting others who are less fortunate, showing
a great deal of affection towards others, and being able to confide in and discuss personal
problems with someone.
Differences in personality traits of Indian managers indicate that universal personality
traits might not be suitable for all types of work, because each type Twork requires
specific set of personality traits. Therefore, understanding of their own personality traits as
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well as those of their subordinates is necessary for Indian managers to become effective at
the workplace.
Personality Traits Influencing Organisational Behaviour Or
Personality Dimensions
There is an enormous numbers of human traits. As has been discussed before, personality
is a set of relatively stable characteristics or dimensions of people that account for
consistency in their behaviour in various situations. Some of the more important
dimensions of personality that are closely linked -ith interpersonal and organisaional
behaviour are discussed below :
1. Locus of Control: Locus of control indicates the degree to which people believe that
they are masters of their own fate. Those individuals who have an --•.ernal locus of control
believe that they are masters of their own fate and that they can control and shape the
course of events in their lives, are known as internal.
Externals, on the other hand, are those individuals who believe that they are in the hands
of fate and that what happens to them is controlled by outside farces beyond their control
such as luck and chance. Thus, internals believe that they are having control of events
where as externals believe that events control them.
The following figure illustrates the possible consequences relative to internal locus of
control and external locus of control:
2. Authoritarianism : Authoritarianism refers to blind acceptance of authority.
Authoritarian people belive in obedience and respect for authority. An individual with
authoritarian personality believes in the legitimacy of formal authority, views obedience to
authority as necessary, hold negative views about people and is intellectual rigid.
Authoritarians prefer stable and structured work environments which are governed by
rules and procedures. They prefer autocratic leadership.
3. Bureaucratic Personality: A bureaucratic person differs from an authoritarian person
in that his respect for authority is not total and blind, but is based upon respect for
organisational rules and regulations. A bureaucratic persons values subordianation, rules
conformity, orderly proceses in the organisation. They are generally not innovative, do not
take risks and are at ease in following established directives.
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4. Machiavellianism: Machiavellianism is a term associated with Niccola Machiavelli, a
sixteenth centrury author who identified personality profiles of noble men of the day. This
personality believes in manipulating others for purely personal gains and keeping control
of others. People with Machiavellianism have high self confidence and high self esteem.
They are cool and calculating and have no hesitation in using others or taking advantage of
others in order to serve their own goals. They do not feel quilty in using unethical means
to sevrve theri own interests. They are skilled in influencing others.
5. Introvert and Extrovert Personalities : Introvert persons are basically shy, prefer to
be alone and have difficulty in communicating. Extroverts are outgoing.objective,
aggressive and relate well with people.
According to L.W. Morris, the introvert is behaviourally described as "quiet, intellectual,
well-ordered, emotionally unexpressive and value oriented, prefers small group of intimate
friends and plans well ahead." On the other hand extrovert is best described as, "social,
lively, impulsive, seeking novelty and change, carefree and emotionally expressive."
From organisational point of view, it can be assumed that most managers would be
extroverts since a manager's role involves working with and through other people.
Extroversion is a trait that is useful for managerial success.
6. Type 'A' and Type *B' Personality: An individual exhibiting Type 'A' behaviour is
generally restless, impatient with a desire for quick achievement and perfectionism. Type
'B' is much more easy going relaxed about time pressure, less competitive and more
philosophical in nature.
Characteristics of Type 'A' Personality : Some of the features of Type 'A' personality are
given below :
1. Type 'A' personality is restless, so that he always moves, walks and eats rapidly.
2. He is impatient with pace of things, dislikes waiting and is impatient with those who are
not impatient.
3. He does several things at a time.
4. He tries to schedule more and more in less and less time, irrespective of whether
everything is done or not.
5. He usually does not complete one thing before starting on another
6. He does not have time to relax and enjoy life.
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Type 'B' personalities behave in just the opposite of Type 'A' personalities and are more
relaxed, sociable and have a balanced outlook of life.
Type A behaviour profile tends to be obsessive and, managers with such behaviour are
hard-driving, detail-oriented people with high performance standards. Such managers have
difficulty in creating cordial interpersonal relationships and create a lot of stress for
themselves and the people they deal with. They specially feel pressurised if they have to
complete a task within a given deadline. Type B persons on the other hand like do put in
extra effort in order to meet a deadline but do not feel pressurised.
Those persons who are classified as Type A have a strong desire and tendency to control
all aspects of the situation and if they are unable to control a situation, they react with
anger and frustration. Because of their obsession with perfection, they are more apt to fear
of failure and even if their work is good, they tend to underestimate the quality of their
work. In the case of negative outcomes, they blame themselves more than the external
factors.
A comprehensive identification of Type A personality is given by Karen A. Mathews as
follows :
"The type A pattern can be observed in any person who is agressively involved in a
chronic, incessant struggle to achieve more and more in less and less time, and if required
to do so, against the opposing efforts of other things or other persons. The overt
manifestations of this struggle include explosive, accelerated speech, a heightened pace of
living, impatience with slowness,
concentrating on more than one activity at a time, self-preoccupation, dissatisfaction with
life, evaluation of the worthiness of one's activities in terms of numbers, a tendency to
challenge and compete with others even in noncompetitive situations, and a free floating
hostility. The major facets of "core" elements of the behaviour pattern are extremes of
agression, easily aroused hostility, a sense of time urgency and competitive achievement
surviving."
Research has indicated that such patterns of behaviour as exhibited by Type A personality
profile, lead to health problems, specially heart related illness. In contrast, Type B persons
may be hard working but feel no pressing conflict with people or time and hence are not
prone to stress and coronary problems.
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7. Self-esteem : Self-esteem refers to the degree to which or individual likes or dislikes
himself. High self-esteem is an important facet that determines how far managers
consistently regard themselves as capable, successful, important and worthy individuals.
Manager's perception of their role in organisation is closely related with self-esteem.
Similary, expectations for success are also directly related with self-esteem.
Thus, organisationally speaking, high self-esteem people are high performers wile low
self-esteem contributes to poor performance
8. Risk Taking : Individuals differ in their willingenss to take chances. This leads to
assume or to avoid risks. Research shows that high risk-taking managers make more rapid
decisions and use less information in making their choices than do the low risk-taking
managers.
9. Problem Solving Style : Individuals have their own style of making decisions and this
style reflects their personality in certain ways. The problem solving style has two
dimensions. One is the information gathering and the second dimension is the evaluation
of data information and making decisions. Following are problem solving styles.
(i) Sensation-feeling style : These people are dependable, friendly and soical.
(ii) Sensation-thinking style : They are practical, logical decisive, sensitive to details and
prefer bureaucratic type organisations. They are not highly skilled.
(iii) Institution-feeling style : These people are enthusiastic, people oriented charismatic
and helpful.
(iv) Institution-thinking style: Those people are creative, energetic and like jobs that are
challenging in terms of design.
Theories of Personality
Following are the theories of personality :
These theories are being explained here as under :
1. Psychoanalytical Theory : This theory of personality has been based primarily on the
Freudian concept of unconscious nature of personality. Freud observed that patient's
behaviour could not aloways be consciously explained. This led him to believe that the
personality structure is primarily founded on unconscious framework and that human
behaviour and motivation is the outcome of such conflicting psychoanalytic concepts as :
(i) The Id
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(ii) The Ego
(iii) The Super Ego
These concept has already been explained.
2. Self concept Theory: This theory is based on the concept that personality and
behaviour are largely determined by individual himself. We prefer to act in ways that are
consistent with our image. Carl Rogers is most closely associated with this theory.
According to him, an individual himself is the centre of experience. His self image is
integral to how he views himself and his perception of how others view him.
When we get positive feedback from others as response to our behaviour, our self-concept
is positively reinforced. On the other hand, when we get negative feedback from others,
our self-regard is lowered, resulting in anxiety and tension.
Thus, management must recognize that each individual's self-concept is unique and
application of various types of motivation, job enrichment and leadership styles will have
different effects on different people. An employee with a self-concept may look for a
challenging environment where he looks for recognition, responsibility and achievement.
On the other hand, the monetary rewards, job security may be more effective on workers
who have a self-concept of dependence, insecurity and work and lack confidence in
themselves.
3. Social Learning Theory : The learning theory looks at personality as the sum total of
all that a person has learned. This theory uses "reinforcement and punishment" approach in
understanding personality. For example, frustration caused by external environment,
causes aggression as a personality trait. Good behaviour, is rewarded by the society in
terms of praise.
The social learning theory differs from psychoanalytical theory in two ways. First it is
believed that personality development is, more a result of social factors than biological
factors. Secondly, motives can be traced to known and conscious needs and wants rather
than unconscious and latent desires.
Learning can, also occur from observation rather than interaction with the environment.
We watch behaviour of other people, draw conclusions from it and express our own
behaviour.
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4. Trait Theory : This has been discussed earlier in this chapter. Briefly, this theory of
personality describes people on the basis of traits such as aggressive, flexible, humourous,
sensitive, sentimental, impulsive and so on. By observing some of these traits, we may be
able to identify a personality.
Need for Study of Personality
1. Understanding of personality may be of great help in selection of right people for
different jobs.
2. Understanding of personality will also help in designing training programmes for the
personnel in the organisation.
3. Personal ability helps the manager understand why workers behave as they do.
4. Understanding of personality helps in designing the various incentive schemes to
motivate employees.
5. Personality has a great influence on work performance. Hence, it is essential to
understand the personality for getting higher performance.
6. The behaviour of employees towards their superiors is influenced by personality.
Therefore, superiors/managers have to understand the importance personality properly.
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6 PERCEPTION
Introduction
Perception is the function of the information processing through any or all :f the five
senses of sight, touch, taste, hearing and smell. Perception may be defined as a process by
which people select, organise and interpret information from their environment. Since it is
subjective process, it may not match reality and different people may perceive and
describe the same event differently.
When misperceptions occur due to error and distortions in perception, nanagers, in
particular, are bound to make incorrect or improper decisions detrimental to the
organisation. It is for this reason that managers should sharpen their perceptual skills so
that their perceptions of people, events and objects are as close to reality as possible. By
understanding the perceptual process, managers can enhance their effectiveness.
Definition of Perception
Some of the definitions of perception are as under :
"Perception includes all those processes by which an individual receives formation about
his environment—seeing, hearing, feeling, tasting and spelling." -Joseph Reitz
"Perception is an active psychological process by which individuals organize ni interpret
their sensory impressions in order to give meaning to their f."ironment."-Luthans Fred
"Perception is a process of receiving, selecting, organising, interpreting, decking and
reacting to sensory stimuli or data so as to form a meaningful and sacerent picture of the
world." -Davis Keith
It is clear from the above definitions that perception basically refers to the nisner in which
a person experiences the world. People working in an organisation differ in terms of
physical characteristics (such as age, sex, stamina background characteristics (such as
training and education) and personality Xxits. One of the consequences of such differences
is that they do not view the anything in the same way. There is often difference of opinion
and evaluation. 5ature of Perception
From the above discussion we can identify the features of perception as
Perception is a psychological process and manner in which a person perceives the
environment affects his behaviour.
2. Peception is a subjective process, hence it may not match reality.
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3. Perception is an intellectual process by which a person selects, organises and interprets
information from environment.
Perceptual Process
Perception is the process through which people select, organise and interpret information
from their environment. It is the culmination of complex processes by which an individual
selectively absorbs or assimilates the stimuli in the environment, organises the perceived
information and subjectively interprets or attaches meaning to events that takes place in it.
We can understand the dynamics of the perceptual process by using an input-throughput-
output model. The stimuli in the environment be they objects, events or people—can be
considered as the inputs. The actual transformation of these inputs through perceptual
mechanism of selection, organisation and interpretation are the throughputs, and resultant
opinions, feelings, values, attitudes and behaviour can be deemed to be the outputs.
As shown in the following figure, perceptual inputs are first received, then processed by
the perceiver and the resultant output becomes the base of behaviour.
Let us examine each of these components of perceptual process.
1. Inputs : A number of stimuli are constantly confronting people in the form of
information, objects, events and people in the environment. These serve as the inputs of
the perceptual process. Perceptual inputs encompass all the stimuli in the environment,
including people sitting, the events that occur there, the objects in the system, all available
information, the discussions among members, and such. These inputs are absorbed as a
function of how one perceives ourself.
2. Perceptual Throughputs/Mechanism : Perceptual throughputs or the stages of
transformation of perceptual inputs to outputs involve three processes of selection,
organisation and interpretation of the stimuli in the environment. Perceptual selection
takes account of only those stimuli that are relevant and appropriate for an individual.
Perceptual organisation is concerned with shaping the perceived inputs and converting
them into a meaningful shape or form. Perceptual interpretation deals with inferences
drawn from observed meaning from the perceived objects or events.
3. Outputs : Perceptual outputs denote the transformation of perceptual inputs via the
throughput processes. These include the perceiver's resultant attitudes, opinions, feelings,
values and behaviour which have been influenced
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by the perceived characteristics of the stimuli, the situation and the perceiver himself or
herself.
To sum up, there are five stages in the perceptual process, as enumerated below:
1. The observation or input phase, when the environmental stimuli are being scanned by
the perceiver.
2. The selection of stimuli, guided by the characteristics of the stimulus and other
individual factors.
3. The organising stage, when the perceiver is influenced by such factors as figure and
ground, grouping and the like.
4. The interpretation stage, which is based on the perceiver's assumptions of people and
events; and
5. The response of the perceiver in terms of attitudes, values, behaviour and such other
things.
Perceptual Mechanisms
The transformation of inputs is carried out through the perceptual mechanism of selection,
organisation and interpretation. Let us discuss each of these three mechanisms in some
detail.
1. Selection-Several things exist in our environment and several events also take place all
of a sudden in the work setting. It is not possible for our senses to absorb all the stimuli.
Only the most important things will be selected. Thus, selection is a basic step in
perceptual process. Individual collects information, not randomly, but selectively
depending upon the interests, background experience, attitudes etc.
A perceptual study was done by Deaborn and Simon to analyse the perception of business
executives. Executives were selected for interview from different fields—sales,
production, finance etc. The result was that most of the managers identified the central
problem closely related to their own speciality. Therefore, we can say that people
selectively perceive aspects in a, situation that relate to their area of activity. The objects
which are selected are those which are relevant and appropriate for an individual or those
which are consistent with our existing beliefs, values and needs.
2. Organisation—Perceptual organisation is the process by which we group outside stimuli
into identifiable patterns and whole objects. Once the stimulus is received from out side,
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the mental processes begin organizing this stimulus into meaningful and identifiable
whole.
While it is not clear how the human mind assembles, organizes and categorizes
informations, certain factors/principles are considered important contributors. These are
figure-ground, perceptual grouping, simplification and closure.
(i) Figure-ground-The figure-ground principle simply means that we tend to be attentive to
such perceived objects that stand out against a background. In perception certain factors
are considered significant which give a meaning to the person, and others which are either
unimportant for a person or cannot be studied are left as insignificant. The meaningful and
significant portion is called the "figure" and insignificant portion is labelled as the
"ground". For example, an individual in the organisation might try to focus his entire
attention on his immediate boss, trying to be in his good books, completely ignoring his
colleges and how they feel about his behaviour. According to this principle, thus, the
perceiver tends to organise only the information which stands out in the enviroment which
seems to significant.
(ii) Perceptual Grouping-Grouping is the tendency to curb individual stimuli into
meaningful patterns. For example, we perceive objects or people with similar
characteristics, we tend to group them together and this organising mechanism help us to
deal with information in an efficient way rather than getting confused with so many
details. This tendency is very basic in nature and largely seems to be inborn. Some of the
factors underlying this grouping are :
(a) Continuity-Continuity relates to the tendency to perceive objects as continuous
patterns. The continuity may lead to inflexibility or non-creative thinking on the part of
organisational participants. Only the obvious pattern will be perceived. Because of this
type of perception; management follows a set and step by step routine, having no ground
for implementation of outlived innovative ideas.
(b) Similarity-The principle of similarity states that the greatest the similarity of stimuli,
the greater would be the tendency to perceive them as a common group. The principle of
similarity is exemplified when objects of similar shape, size or colour tend to be grouped
together.
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(c) Proximity-The principle of proximity states that a group of objects or people who are
physically close to each other may be perceived as related to each other so that they stand
out as one unit. For example, several people working on a machine may be considered as a
single group, so that if the productivity on that particular machine is low, then the entire
group would be considered responsible even though only some people in the group may be
inefficient.
(iii) Simplification-Whenever people are overloaded with information, they try to
simplify it to make it more meaningful and understandable. Simplification occurs when
the perceiver ignores less salient information and concentrates on important one while
taking any decision. If this is not done, it may become very difficult to handle efficiently
the whole mass of information.
(iv) Closure-people when faced with incomplete information, have a tendency to fill the
gaps themselves to make it more meaningful. The tendency to form a complete message is
known as "closure". Closure is the tendency to perceive objects as a whole, even when
some parts of the objects are missing. Organisationally speaking, when a manager
perceives a worker, on the whole, as hard working, as diligent and sincere one, then even
if he goofs up" some time, the manager will tend to ignore it, because it does not fit in
with the overall impression that he has about the worker.
3. Interpretation-It is an important part of the perception process. Without interpretation,
selection and organisation of information do not make any sense. After the information
has been received and organised, the perceiver interprets or assigns the meaning to the
information. In fact, perception is said to have taken place only after the data have been
interpreted. There are several factors that contribute towards the interpretation of data.
More important among them are:
(i) Perceptual Set
(ii) Attribution
(iii) Perceptual Defence
(v) Perceptual context etc.
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Factors Influencing Perception
Certain characteristics of the stimuli have impact on our perceptions. Characteristics of the
situation, as well as those of the perceiver, also influence now information is processed in
the throughput stage.
The factors that influence perception mechanism are of three kinds :
(i) Characteristics of the perceiver
(ii) Characteristics of the perceived
(iii) Characteristics of the situation.
These factors as shown in the following figure are being discussed below :
Characteristics of the Perceiver
An individual's needs and motives, self-concept, past experiences, current psychological
state and certain other personality traits also influence the perceptual mechanism selection,
organisation and interpretation. Let us examine the part played by these.
1. Needs and Motives: Our perceptions are gruided by our need patterns. If we have a
high need for achievement, we will try to exploit every resource in the environment. If I
have a need for affiliation, I will use environment for building good friendship and
establishing excellent contacts. Thus, people with different needs usually experience
different stimuli.
In fact, when people are not able to satisfy their needs, they are engaged in wishful
thinking which is a way to satisfy the need not in the real world but imaginary world, i.e.,
day dreaming.
2. Self-Concept: Our self concept is shaped how we perceive ourselves. This influences
how we perceive others and the situation we are in. When we doubt our ability and lack
confidence, the world would appear as threatening. If, on the other hand, we perceive
ourselves as capable and competent we will see others also in a favourable light. In other
words, the better we understand and the more we accept ourselves, the better we will
perceive others as they are and the more accurate will be our sizing up of our environment.
Thus, correct self perception and enhancing our self-concept influence accurate
perception.
3. Past Experience : It is believed that our personality is shaped by our past experiences.
These determine how we perceive people and situations. If we have been previously let
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down by the boss, we would not trust him to help us now. If, on the other hand, we had
been helped by an individual in the past, we would be confident of securing his help again.
Thus, our perceptions are often guided by our past experiences and our present
expectations.
4. Beliefs : An individuals benefits have got a deep impact on one's perception. A fact is
conceived not on what it is but what a person believes it to be. The individual generally,
censors stimulus inputs to avoid disturbance of his existing beliefs and this is known as
maintenance of cognitive consistency.
5. Expectations: It is expectations which influences perception of a person. In an
organisation technical, non-technical, financial and non-financial people have got different
expectations and accordingly different perception; for example, a technical manager may
expect, ignorance of technical features of a product from non-technical people.
6. Current Psychological State : An individual's psychological and emotional mental set up
may influence how he perceives the things. If a person is under depression and stress he is
likely to perceive the same situation differerntly than if he is in jolly and happy mood.
For instance, if a woman has been scared out of her wits by seeing a snake in the garden,
she is likely to perceive a rope under the bed as a snake. Characteristics of the Perceived
We cannot deny that our perceptions about others are influenced by their physical
appearance, facial expressions, age, gender, manner or communication as well as
personality traits. Levine, M. W. has suggested the following factors that relate to the
characteristics of perceived or target.
1. Size : The larger the size of the object, the more likely that it will be noticed. We are
most likely to notice things that stand out because of their size relative to other things in
that area. We can say that size enhances the perceptual selection.
2. Intensity: Intensity refers to brighter, louder and more colourful objects as compared to
other objects around. Thus intensity attracts increased perceptual selection.
3. Contrast : If an object in some way- contrasts its surroundings, it is more noticeable. For
example, a manager who interviews twenty women and one man for a job would
remember the man first because of contrast.
4. Repetition : A repeated message is more likely to be perceived than a single message.
Work instructions that are repeated tend to be received better.
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5. Movement : Moving objects are more likely to be perceived than stationary objects.
Movement increases our awareness of the object.
6. Order : According to Secord and Backman, the order in which the stimuli are presented
is an important factor influencing selective attention. Characteristics of Situation
The context in which we see objects or events is very important. The surrounding
environment and elements present<in it, influence our perception while perceiving a
particular situation. Its physical, social and organisational seeting can influence the
perception. For example, if you meet a person for the first time and he is with a person
whom you respect and admire, you will create a favourable image about him in your mind
as compared to a situation in which you see him with another person whom you dislike for
some reasons.
Misperceptions or Perceptual Errors
It is quite possible that some errors or problems may arise in the perceptual .citerpretation
of individuals. There are several types of biases that lead to - sperceptions. Stereo typing,
halo effects, selective perception, attributions, distortions, projections etc., all contribute to
distortions in perceptions. Each of these error can lead to poor decisions and is discussed
below :
1. Stereotyping: The word 'stereotype' was first used by Walter Lippmann in reference to
perception. Stereotyping is a tendency to perceive an individual as belonging to a single
class or category. In perceiving another person, a person is likely to recognise the other
according to some salient group characteristics as sex, race, religion, nationality,
occupation or organisational affiliation.
Stereotyping as to age, gender, nationality etc., adversely affect decisions regarding
recruitment, pay, promotion and such other things. This results in loss not only for the
stereotyped individual but also for the organisation, since ailable talent will be under
utilized.
However, valid stereotyping is useful as it helps managers to make quick, effective and
efficient decisions. For example, the manager of a furniture company categorising all
prominent business houses as being able to pay a much higher price for office furniture
and charging them as such, conducts business sensibly.
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2. Halo Effect: In fact, the 'Halo effect' in the social perception is very rjnilar to
stereotyping. Under Halo effect, the person is perceived on the basis of one trait. Such as
dependability, intelligence, sociability and co-operativeness. Any single trait overwhelms
all other traits in perceiving other persons. An employee may be rated high simply on the
basis of one or two of his abilities.
This is a very common type of error committed by managers while evaluating the
subordinates. In fact Halo effect takes place in all walks of life. For example, a teacher
may award higher marks to those students who are more social.
3. Impression : It is seen that people generally form impression about ::hers on the first
sight. Usually, even before knowing any of their other characteristics, an individual starts
forming impressions about others and perceives them accordingly.
This, sometimes, leads to perception distortion because first impression seed not be the
last impression, for example, a new employee in an organisation i j udged on the basis of
his first impression on his boss, it will be great injustice to such an employee.
4. Projection: Projection means attributing one's own feelings to someone ilse. Projection
may effect one's perception. The tendency to attribute one's rwn characteristics to other
people can distort perceptional judgement about others. This may be particularly true
regarding undesirable traits which the perceiver possesses but fails to recognise in himself.
For instance, people who »re fearful may interpret other's behaviour as fearful.
In order to avoid this error in judging others, an individual should be conscious of his
weakness while making judgement about the people.
5. Attribution : Attribution refers how an individual explains or attributes the cause of
one's own or of another person's behaviour. Perception is distorted sometimes by the
efforts of the perceiver to attribute a casual explanation, e.g. when a manager observes an
event in an organisation, his evaluation and reaction to other's behaviour may be highly
influenced by his perception.
For example, a nurse who drops a tray of medicine will be excused if the incident is
perceived as caused by slippery floor or she may also be fired if it is taken is deliberate
act.
6. Selective Perception : In fact individuals differ in terms of their needs, motives and
interest. People tend to perceive what is in accordance with their needs, motives and
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interest. Selective perception is the tendency to single out those aspects of a person or
situation that conform to our beliefs, needs and values.
Decisions would not be made in haste due to selective perception if they are arrived at by
managers after seeking several other people's perceptions of "reality", by communicating
with them freely and fully.
7. Inference : Inference is a tendency on the part of some people to judge others on
limited information. A right performance appraisal must not be based on half-cooked or
incomplete information. For instance, an employee might be sitting at his desk throughout
the working hours without doing anything, but it may inferred that he is sincere towards
his duties.
8. Perceptual Set : People tend to interpret the behaviour of others according to their
mental set up and this concept is known as Perceptual Set. For example, if the General
Manager of a Hotel has developed a general belief and attitude that workers are lazy and
shirkers that they want to gain whatever is possible from the organisation without giving
best to it. His subsequent perceptions will be influenced by this set when he meets the
group of people.
Overcoming Perceptual Distortions
Or
Developing Perceptual Skills to Reduce Perceptual Errors
This can be done by following:
1. Enhancing Self Concept: Self concept or self image at work place is a function of how
much confidence one has in one's own competence, Confidence comes from the successful
completion of projects or assignments undertaken by an individual.
The best way to enhance perceptual accuracy in the work place is for managers to match
the skills and competencies of the employees to the jobs assigned to them, which in turn,
will result in higher self-concept.
2. Authentic Communication : Communication should be frank, clarify matters and make
aware the staff with the rationale of action taken, if any. Timely and authentic
communication will remove doubts and ensure understanding and acceptance of action.
Authentic communication is helpful in reducing recurring misperceptions.
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3. Having Positive Attitudes: A positive attitude enhances the chances of favourable
results and is conducive to a friendly work environment. It also enhances the self-concept
of perceiver. A concentrated effort to enhance perceptual skills will enable managers to
change their negative attitude, if any.
4. Trust and Trusting Others : Trust develops when there is faith in integrity of others.
How much we perceive another to be trustworthy is a function of our personal
experiences.
5. Avoiding Attributions : Recognising the unfortunate consequences of incorrect
attributions, managers should try to perceive the environment and the events that happen,
accurately. As a matter of fact, good communication will avoid incorrect attributions and
enhance perceptions of reality.
6. Being Empathic : Empathy connotes the ability to place oneself in the situation
encountered by others. It calls for sensitivity imagination and willingness to put oneself in
another's shoes. Truly effective manager should perceive situations giving due
consideration to the points of view of other as well. This is not possible if there is no
empathy.
We can say that the following guidelines will help reduce perceptual errors in an
organisation :
(a) One can minimise the errors involved in perception by understanding the perceptual
process in right perspective.
(b) By comparing one's perception with other's perception, differences, if any, can be
identified. Differences can be removed with the help of good .communication system.
(c) One should honour other's point of view. It may be helpful in reducing perceptual
errors.
(d) One should look at things with a positive attitude to avoid distortion. Perceptual
Defence
In the words of M. Haire, the principle of perceptual defence lays down at an individual is
likely to put a defence when confronted with some conflicting, unacceptable or threatening
stimuli. It means, perceptual defence lives the screening out of these elements which
create conflict and threatening situation for people.
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The defence mechanism put up by the perceiver may assume any of the four terms—
straight away denial, modification of the data collected, change in the perception but
refusal to accept and change in perception itself.
W.F. Grunes and Mason Haire conducted a study of some college students. In this study
college students were presented with the word 'intelligent' as a characteristics of the
worker in a factory. This was conflicting to the notion about a factory worker, held by the
students. The students put up the following defences :
(i) Outright denial: Some students denied that the factory workers could be intelligent.
(ii) Modification: Some of the students said that the worker was intelligent, but lacked
initiative to rise.
(iii) Change in Perception: A few students felt that the word "intelligent" conflicted. They
believed that the worker was not too intelligent.
(iv) Recognition: Very few students realised that the worker was, in fact, .-•elligent. But
this change in perception was very subtle.
Applications of Perception in Organisational Behaviour
Garry A. Steiner observed that people in the organisations are always assessing others.
When a new person joins a department, he is immediately assessed by the other
employees. Managers can also use perception for the following purposes in the
organisation.
1. Employment Interview: Managers make perceptual judgement about
the job applicants. Different managers may see different qualities in the same candidate
and arrive at different conclusions, say, selection or rejection. Thus employement
interview is an important input into the recruiting decisions and perceptual factors
influence the quality of employment procedure.
2. Performance Appraisal : Performance appraisal of an employee is dependent on the
perceptual process of the superior. An employee's future is closely related with his
promotions, increments and continuation of employment.
A manager perceives the employee as good or bad. This perception of manager will
significantly influence the appraisal outcome of the employee.
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3. Employee Efforts : In many organisations, the level of efforts of an employee is given
high importance. Assessment of employee's effort is subjective judgement susceptible to
perceptual distortions and bias.
4. Employee Loyalty: Another important judgement that managers make about employees
is whether or not, they are loyal to the organisation. Some managers may term those
employees 'disloyal' who keep on applying for jobs elsewhere. Sometimes, management
may label an employee disloyal if he questions the decisions of the management.
Likewise, a "whistle blower" who reports unethical practices by management to outsiders
may act out of loyalty to the organisation, but is perceived as trouble maker by the
management. Perceptual Selectivity
There are a variety of stimuli confronting us every day affecting our senses. Out of all
these stimuli, we select only some. Perceptual selectivity refers to tendency to select
certain objects from the environment for attention such that these objects are consistent
with our existing belief, values and needs. Without this ability of selection, the individuals
will not be able to consider all available information necessary to initiate behaviour.
Various external and internal factors influence our process of stimuli selection. These are
as under:
A- External Factors : External factors relate to the characteristics of objects or people that
activate our senses and thus get our attention. Some of
these external factors are :
1. Size
2. Intensity
3. Contrast
4. Repetition
5. Movement
6. Order
The above points/factors have been discussed under heading "Characteristics of the
Perceived".
B. Internal Factors : The internal factors relate to the perceiver and include such factors as:
1. Need and motives
2. Self Concept
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3. Past Experience
4. Beliefs
5. Expectations
6. Current Psychological State
The above factors have been explained under the heading "Characteristics of Perceiver" in
this chapter. The Perceptual Organisation
The concept and factors influencing the perceptual organisation have been discussed under
the heading "Mechanism of Perception" in this chapter.
Importance of Perception
1. Perception is very important in understanding the human behaviour because every
person perceives the world and approaches in life problems differently. Whatever we see
or feel is not necessarily the same as it really is. Thus it is because of perception, we can
find out why an individual finds a job satisfying while another may not be satisfied with it.
2. If people behave on the basis of their perception, we can predict their behaviour in the
changed circumstances by understanding their present perception.
3. With the help of perceptions, the needs of various people can be detei-mined, since
people's perception is influenced by their needs.
4. Perception is very important for managers who want to avoid making errors when
dealing with people and events in the work setting.
Perception and Attribution
Our perceptions of people differ from our perceptions of inanimate objects like desks,
machines, or buildings because we make inference about the actions of people that we do
not make about inanimate objects. Non-living objects are subject to the laws of nature, but
they have no beliefs, motives, or intentions. People do. The result is that when we observe
people, we attempt to develop perception and judgement of a person's actions, therefore,
will be significantly influenced by the assumptions we make about the person's external
state.
In other words, when we give cause and effect explanation to the observed behaviour, it is
known as attribution. The attribution theory suggests that when we observe an individual's
behaviour, we attempt to determine whether it was internally or externally caused.
Internally caused behaviour is believed to be under the control of an individual. Externally
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caused behaviour is seen as resulting from outside causes. In other words, the person is
seen as forced into the behaviour by the situation. If an employee is late for work, the
supervisor may relate it to oversleeping which is an internal interpretation. But if coming
late is attributed to a major traffic jam on the way, it is called external attribution.
Such a determination depends largely on three factors :
(a) Distinctiveness refers to whether an individual displays different behaviours in
different situations. Is the employee who arrives lete today also becomes the source of
complaints by coworkers for being a goof-off? What we want to know is if this behaviour
is unusual or not. If it is, the observer is likely to give the behaviour an external
attribution. If this action is not unusal, it will probably be judged as internal.
(b) Consensus: If everyone who is faced with a similar situation responds in the same way,
we can say the behaviour shows consensus. Our late employee's behaviour would meet
this criterion if all employees who took the same route to work were also late. From an
attribution perspective, if consensus is high, you would be expected to give an external
attribution to the employee's tardiness, whereas if other employees who took the same
route made it into work on time, your conclusion as to causation would be internal.
(c) Consistency : An observer looks for consistency in a person's actions. Does the person
respond the same way every time ? Coming in ten minutes late for work is not perceived
in the same way for the employee for whom it is an unusual case (he has not been late for
several months) as for the employee for whom it is part of a routine pattern (he is regularly
late two or three times a week). The more consistent the behaviour, the more the observer
is inclined to attribute it to internal causes.
Perceptual distortion occurs because of attribution on two grounds : (i) Fundamental
Attribution Error: Substantial evidence suggests that when we make judgements about the
behaviour of other people, we have a tendency to underestimate the influence of external
factors and overestimate the influence of internal or personal factors. This is called the
fundamental attribution error and can explain why a sales manager is prone to attribute the
poor performance of her sales agents to laziness rather than the innovative product line
introduced by the competitor, (ii) Self-serving bias : Individuals tend to attribute their own
successes to internal factors like ability or effort while putting the blame for failures on
external factors like luck. This is called the self-serving bias and suggest that feedback
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provided to employees in performance reviews will be predictably distorted by recipients
depending on whether it is positive or negative.
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7 LEARNING
Introduction
Learning can be defined as permanent change in behaviour or potential behaviour as a
result of direct or indirect experience. There are two primary elements in this definition
that must both be present in order to identify the process of learning. First, is the element
that the change must be permanent. This means that after "learning," our behaviour must
be different, either better or worse as compared to our prior behaviour to this experience of
learning. The second aspect of this definition is that this change must occur due to some
kind of experience or practice. This learning is not caused by biological maturation. For
example, a child does not learn to work, it is a natural biological phenomenon because, the
child gains strength as he grows older.
In must be understood that the learning itself is not observable, but only the change in
behaviour is observable which is on account of the direct result of the process of learning.
Concept of Learning
Learning is a term frequently used by people in a wide variety of contexts. Yet, despite its
diverse use, at the academic level, its concept has been recognised in only one way, or at
the most two, in which behaviour can be acquired or changed. Early behaviourists like
Watson and Skinner have used learning as a relation or association between two type of
incidents. Based on this concept, the principle of conditioning has been developed which
we shall study later in this chapter. However, many psychologists do not agree with this
view and they have viewed learning as a relatively enduring change in behaviour. This
view is more acceptable. According to the Dictionary of Psychology, learning means "the
process of acquiring the ability to respond adequately to a situation which may or may not
have been previously encountered, the favourable modification of response tendencies
consequent upon previous experience, particularly the building of a new series of complex
coordinated motor response: the fixation of items in memory so that they can be recalled
or organised in the process of acquiring insight into a situation."
Sanford has defined learning as a relatively enduring change in behaviour brought about as
a consequence of experience. In the context of organisational behaviour too, learning is
defined in this way. Mitchell has defined learning as follows:
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"learning is the process by which new behaviours are acquired. It is generally agreed that
learning involves changes in behaviours, practising new behaviours, and establishing
permanency in the change."
According to E.R. Hilgard, "Learning is a relatively permanent change in behaviour that
occurs as a result of a prior experience."
According to W.Mc Gehee, "Learning has taken place if an individual behaves, reacts,
responds as a result of experience in a manner different from the way he formerly
behaved."
According to the Dictionary of Psychology, "Learning means the process of acquiring the
ability to respond adequately to a situation which may or may not have been previously
encountered, the favourable modification of response tendencies consequent upon
previous experience, particularly the building of a new series of complexity coordinated
more to response, the fixation of items in memory. So that they can be recalled or
organised in the process of acquiring insight into a situation."
Therefore.in simple words, learning can be defined as a permanent change in behaviour
through education and training, practice and experience.
Nature of Learning
From the above definitions of learning, we find out the following important implications
in the process :
1. Change in Behaviour: Learning involves change in behaviour, although the change
may be good or bad from an organisation's point of view. The change in behaviour need
not be an improvement over the previous behaviour, although learning usually connotes
improved behaviour. For example, bad habits like smoking, prejudice and stereotyping are
often learned by individuals.
2. Change in Behaviour Must be Relatively Permanent : All the changes do not reflect
learning. To constitute learning change should be relatively permanent. Temporary
changes may be only reflective and fail to represent any learning. Any temporary change
in behaviour caused due to fatigue or drugs or temporary adaptations are not covered in
learning.
3. Change Must be Based on Some Experience, Practice or Training : The behavioural
change must be based on some form of practice, experience or training. Any change in
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behaviour due to physical maturation, any disease or physical damages do not constitute
learning. This change may not be evident until a situation arises in which the new
behaviour can occur.
4. Reinforcement : The practice or experience must be reinforced in order for learning to
occur. If reinforcement does not accompany the practice or experience the behaviour will
eventually disappear.
5. Learning is Reflected in Behaviour : A change in an individual's thought process or
attitudes not accompanied by behaviour is not learnig. Further learning needs to result in
behaviour potentiality is not necessarily in the behaviour itself. For example, if a person is
thinking of using drugs, but has not actually used them and he finds out that a friend of his
has died because of drugs, he will never get involved with drugs. The experience has
changed his behaviour potential.
Learning and Maturation
As pointed out earlier, any behavioural change because of physical maturation is not
learning but this is natural outcome because of change in physical features. According to
Boring, "maturity is a primary development which should exist before the learned action
or behaviour. The development of physical abilities is called maturation. "Changes in a
person's behaviour may be due to physical and mental matuation. These changes are
natural with age. However, these changes are different from the change due to learning.
Nature of changes in behaviour due to maturation and learning is presented below :
1. Behavioural changes due to maturation are natural, while for learning, a person has to
make efforts.
2. Changes in behaviour due to maturation are racial, but in the case of learning, these
changes are only in the person who learns.
3. Practice of behavioural change is necessary in learning but it is not necessary in the case
of maturation.
4. Generally, maturation takes place upto the age of 25 years but a peson can go on
learning throughout the life.
5. Maturation takes place irrespective of the conditions, favourable or unfavourable, but
learning is possible only in the favourable conditions.
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6. Since maturity is a natural process, it does not require motivation to change behaviour
but learning is cognitive process which is affected by motivation in some form.
Components of Learning Process
A person receives a variety of stimulus inputs. When specific stimuli become associated
with specific responses in sufficiently permanent manner that the occurrence of the stimuli
elicits or tends to elicit a particular response, learning has occurred. To understand this
process, it is important to understand the role of various components of learning.
1. Drive : Learning frequently occurs in the presence of drive—any strong stimulus that
impels action. Without drive, learning does not take place or, at least, is not discernible
because drive arouses an individual and keeps him ready to respond; thus, it is the basis of
motivation. A motive differs from drive mainly in that it is purposeful, or directed towards
the specific goal, whereas drive refers to an increased probability of activity without
specifying the nature of the activity. Drives are basically of two types-primary or
physiological drives and secondary or psychological drives. These two categories of drives
often interact. Individuals operate under many drives at the same time. To predict
behaviour, it is necessary to establish which drives are stimulating the most.
2. Cue Stimuli: Cue stimuli are any objects existing in the environments which are
perceived by the individual. It is common to speak of cue stimuli simply as stimuli or to
use the term cues and stimuli interchangeably. The idea here is to discover the conditions
under which a stimulus will increase the probability of eliciting a specific response. There
may be two types of stimuli so far as their results in terms of response are concerned:
generalisation and discrimination.
3. Generalisation : Generalisation occurs when a response is elicited by a similar but new
stimulus if two stimuli are exctly alike, they will have the same probability of evoking a
specified response, but the more dissimilar the stimuli become, the lower will be the
probability of evoking the same response. The principle of generalisation has important
implications for human learning. It makes possible stability to man's actions across the
time. [Because of generalisation, a person does not have to completely relearn each of the
new tasks or objects which constantly confront him. It allows the organisational members
to adapt to overall changing conditions and specific new or modified job assignment. The
individual can borrow from past learning experiences to adjust more smoothly to new
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learning situations. However, there are certain negative implications of generalisation for
learning. A person may make false conclusion because of generalisation. For example,
stereotyping or halo effect in perception occurs because of generalisation.
4. Discrimination : Discrimination is opposite of generalisation. This is a process whereby
an organism learns to emit a response to a stimulus but avoids making the same response
to a similar but somewhat different stimulus. For example, a rat may learn to respond to
the white colour but not to the black.
Discrimination has wide application in organisational behaviour for example, a supervisor
can discriminate between two equally high producing workers, one with low quality and
other with high quality. The supervisor discriminates between the two workers and
positively responds only to the quality conscious worker. As there is no positive response
(reinforcement), the low quality producing worker may extinct his learning.
6. Responses : The stimulus results into responses. Responses may be in the physical form
or may be in terms of attitudes, familiarity, perception, or other complex phenomena.
Usually, however, learning psychologists attempt measurement of learning in behavioural
terms, that is, responses must be operationally defined and preferable physically
observable.
6. Reinforcement: Reinforcement is a fundamental condition of learning. Without
reinforcement, no measurable modification of behaviour takes place. The term
reinforcement is very closely related to the psychological process of motivation. However,
motivation is a basic psychological process and therefore
9 broader and more complex than is implied by the learning principle of reinforcement.
Reinforcement may be defined as environmental events affecting the probability of
occurrence of responses with which they are associated. The role of reinforcement in
learning is very important. Of several responses made to the same situation, those which
are accompanied or closely followed by sfaction (reinforcement) will be more likely to
recur, those which are accompained or closely followed by discomfort (negative
reinforcement or punishment will be less liekly to occur. The reinforcement principles
have been discussed in this chapter a little later.
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7. Retention : The stability of learned behaviour over time is defined as retention and the
converse is forgetting Some of the learning is retained over a period of time, while other
maybe forgotten. Extinction is a specific form of forgetting.
8. Extinction : Extinction may be defined as a loss of memory. Extinction of a well learned
response is usually difficult to achieve because once something learned, it is never truly
unlearned. Extinction merely means that the response in question has been repressed or it
may be replaced by learning of ncompatible response. Thus, under repeated conditions of
non-reinforcement, sere is a tendency for the conditioned response to decrease or
disappear.
9. Spontaneous Recovery : The return of response strength after extinction, without
intervening reinforcement, is called spontaneous recovery, ^ontaneous recovery is not
unsual among people when they are confused under
- - or in other unusual slates. In such situations, they sometimes will recover-Trse
tendencies that have been extinguished for many years. The original response strength of
an extinguished behaviour can also be recovered when a previously extinguished response
is reward in an isolated instance.
Factor Affecting Learning
Since learning is an acquired process, it is quite natural that several factors may affect this
process. Understanding of these factors is important for management because it can
organise its learning programmes through training or otherwise for improving the
behaviour of employees at the workplace. The major factors affecting learning are
motivation of the learner, his mental setup, nature of learning materials, practice, and
environment.
1. Motivation : Learner's motivation is one of the major conditions for learning. As we
shall see later in this text, motivation is something that moves a person to action and
continues him in the course of action already initiated. This cousre of action includes
learning too. A positive behaviour developed through learning results into reward while a
negative behaviour results into punishment. Thus, the degree of the learner's motivation is
positively associated with his learning. There are overwhelming evidences that support the
generalisation that motivated responses tend to be repeated whereas non-motivated
responses tend to be discontinued.
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2. Mental Set-up : Mental set-up refers to the preparation for an action, in the context
learning. If a person is prepared to act, he can do the things quickly and in no time.
Without mental set-up, learning cannot go smoothly and easily it happens so because the
person's mental set-up activates him to do the act, and due to this level of activation, he
gets inclined to perform the act. Various research studies also support this view.
3. Nature of Learning Materials : Nature of learning materials affects learning by
providing the clue for understanding. There are a number of features of the learning
materials which affect learning. First, if the learning material is of easy nature, it is learned
quickly whereas difficult material takes time to understand. Second, familiarity with
learning materials affects learning. If the learner is familiar with the learning materials, he
can learn more quickly as compared to when he is unfamiliar : With these Third, serial
position, shape, and meaningfulness of learning materials and this also affect learning. If
these, features are positive, learning takes place at faster rate.
4. Practice : Practice is a very basic condition of learning and affects all types of learning.
The more a person practices, more he absorbs the learning contents. Most of the motor
skills (like, swimming, etc.) are learned based on this principle.
5. Environment : Environment in which learning process occurs also, affects learning.
Environment here refers to the situational set up for learning. Environmental factors can
either strengthen or weaken the innate ability to achieve and learn. Environment with its
pressure and high rate of change increases the likelihood of stress and has a negative
impact on learning. Environment with features of support, cohesion, and affiliation has
positive impact on learning.
Learning Theories
Learning as discussed above, is the acquisition of new behaviour. People acquire new
behaviour frequently. However, experts do not agree on what is the process through which
new behaviour is acquired, and still there is disagreement on the theory behind it. This has
resulted into the development of many theories of learning. Many of these theories are
well-established while some others are in the process of evolution. These theories can be
grouped into three categories : conditioning theory also known as connectionist or
behaviou-ristic theory, cognitive learning theory, and social learning theory.
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A. Conditioning Theory
Conditioning is the process in which an ineffective object or situation becomes so much
effective that it makes the hidden response apparent. In the absence of this stimulus,
hidden response is a natural or normal response. This is based on the premise that learning
is establishing association between response and stimulus. Conditioning has two main
theories : classical conditioning and operant conditioning. 1. Classical Conditioning
Classical conditioning states that behaviour is learned by repetitive association between a
stimulus and a response (S-R association). The organism learns to transfer a response from
one stimulus to a previously neutral stimulus. Four elements are always present in
classical conditioning. These are :
1. Unconditioned stimulus (US) : like food which invariably causes to react in a certain
way. i.e. salivation.
2. Unconditioned response (URI): takes place whenever the US is presented, that is,
whenever the organism (dog in the original experiment) is given food (US), it salivates.
3. Conditioned stimulus (CS) : the object that does not initially bring about the desired
response like the sound of the bell.
4. Conditioned response (CR): a particular, behaviour that the organism learns to produce
to the CS, that is salivation.
The work of the famous Russian physiologist and Nobel Prize winner. Ivan Pavlov
demonstrated the classical conditioning process A simple surgical procedure permitted
Pavlov to measure accurately the amount of saliva secreted by a dog. In the experiments
when Pavlov presented a piece of meat (unconditioned stimulus) to the dog, he noticed a
great deal of salivation (unconditioned response). On the other hand, when he merely rang
a bell (neutral stimulus), the dog had no salivation. Thus, it was established that ringing of
bell was having no effect on the salivation of dog. In the next step, Pavlov accompanied
meat with ringing of the bell. On this, dog salivated. The experiment was repeated several
times. After that, Pavlov rang the bell without presenting the meat. This time, the dog
salivated to the bell alone which was originally a neutral stimulus having no effect on the
behaviour (salivation). In the new ration, the dog had become classically conditioned to
salivate (conditioned response) to the sound of the bell (conditioned stimulus). Pavlov
went beyond the simple conditioning of his dogs to salivate to the sound of the bell. He
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next paried a black square-with the bell. After a number of trials with this pairing, dogs
salivated to the black square alone. The original conditioned stimulus bell) had become a
reinforcing unconditioned stimulus for the new conditioned stimulus (black square). This
was called second-order conditioning. Pavlov could :':r go third-order conditioning but not
more. However, most behavioural scientists agree that human beings are capable of being
conditioned higher than the third order. Classical conditioning, as discussed above, is
presented in the fallowing figure.
I. Before conditioning
Meat (US)-'Salivation (UR)
Bell (Neutral stimulus)-'No response
II. During conditioning Meat (US) + Bell (CS)-Salivation (UR)
Implications of Classical Conditioning: Classical conditioning has some important
implications for understanding human behaviour. Since higher-order conditioning for
learning by humjw beings is important, its implications must be recognised. For example,
higher-order conditioning can explain how learning can be transferred to stimuli other than
those used in the original conditioning. However the existence of high-order conditioning
shows the difficulty of tracing the exact cause of certain behaviour, as direct cause-effect
relationship for a behaviour is difficult establish. Another implication of higher-order
conditioning is that reinforcement can be acquired. A conditioned stimulus becomes
reinforcing under higher-order conditioning. This shows the importance of secondary
rewards (higher-order conditioning) in organisations.
Classical conditioning, though offers explanation for learning, fails to explain total
behaviour of human beings. Therefore, many psychologists view that classical
conditioning, though offers explanation for learning, does not explain total behaviour of
human beings. For example. Robbins has observed that "classical conditioning is passive.
Something happens and we react in a specific or particular way. It is elicited in response to
a specific, identifiable event and, as such, it explains simple and reflective behaviour. But
behaviour of people in the organisations is emitted rather than elicited, and it is voluntary
rather than reflective." Because of limitations of classical conditioning in explaining the
learning process of human beings, many psychologists did not agree with this concept.
Skinner, particular, feels that classical conditioning explains only respondent's reflective
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behaviour. People's behaviour is emitted rather than elicited and it is voluntary rather than
reflective. The behaviour affects, or operates on the environment. This type of behaviour
is learned through operant conditioning. 2. Operant Conditioning
Operant is defined as behaviour that produces effects. Operant conditioning suggests that
people emit responses that are rewarded and will not emit responses that are either not
rewarded or punished. Operant conditioning implies that behaviour is voluntary and it is
determined, maintained and controlled by its consequences. It presupposes that human
beings explore their environment and act upon it. The basic principle of learning new
behaviour (operant or also called instrumental) involves the relationship between three
elements :
1. Stimulus situation (important events in the situation),
2. behavioural response to the situation, and
3. consequence of the response to the person.
A simple example of the operant behaviour is the application of brake by a vehicle driver
to avoid accident. Here, the possibility of accident without application of brake is stimulus
situation, application of brake is the behaviour, and avoidance of accident is the
consequence of behaviour. Through this process, human beings learn what behaviours will
be rewarding and they engage in those behaviours.
Implications of Operant Conditioning: Operant conditioning has much greater impact on
human learning than classical. Most behaviours in organisations are learned, controlled,
and altered by consequences. Management can use the operant conditioning process
successfully to control and influence the behaviour of employees by designing the suitable
reward system. Reynolds observes that operant conditioning is the basis for modern
behaviourism and consists of the following :
1. A series of assumptions about behaviour and its environment.
2. A set of definitions which can be used in an objective, scientific descrip Dn of
behaviour and its environment.
3. A group of techniques and procedures for experimental study of benaviour the
laboratory.
4. A large body of facts and principles which have been demonstrated by experiment.
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These points show that operant conditioning leads to a very comprehen-cve approach to
the study of behaviour. Two aspects of immediate relevance ire reinforcement of
behaviour and behaviour modification which would be discussed in this chapter later.
Difference between Classical and Operant Conditioning
Classical conditioning and operant conditioning differ in their approach to explain the
causes and process of learning. The major differences between these ~ay be summarised
as follows :
1. In classical conditioning.behaviour is the result of stimulus either of first order or of
higher order. In operant conditioning, many possible behaviours caa result in the particular
stimulus situation. Thus, in the former case, there ziay be direct relationship between
stimulus and response, while no such relationship is necessary in operant conditioning.
2. In classical conditioning, a change in the stimulus (unconditioned stimulus: conditioned
stimulus) will elicit a particular response. In operant conditioning, ene particular response
out of many possible ones occurs in a given stimulus Etuation. In this case, stimulus does
not elicit response but serves as a cue for a person to emit the response. The emitting of
response depends upon the outcome a" the response so emitted.
3. In classical conditioning, the stimulus, conditioned or unconditioned, aerving as a
reward, is presented every time for response to occur. In operant rcr-ditioning, the reward
is presented only if the organism gives the correct response. Thus, response is instrumental
in receiving the reward.
4. Classical connection can be expressed as S-R while operant connection cuca be
expressed as R-S.
The difference between classical and operant conditioning can be further derstood by
examples provided in Table given below :
Table : Examples of classical and operant conditioning
Organism
Connection
B. Cognitive Theory
Cognitive theory of learning is based on the cognitive model of human behaviour. The
model draws heavily from the work done by Tolman. Cognitive model is used in a number
of psychological processes like perception, learning, attitude fromation, and motivation.
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The cognitive approach emphasises the positive and free-will aspects of human behaviour.
Cognition refers to an individual's ideas, thoughts, knowledge, interpretations, and
understanding about himself and his environment.
Applying the concept of cognition in learning implies that organism learns the meaning of
various objects and events and learned responses depend on the meaning assigned to
stimuli. Cognitive theorists argue that the learner forms a cognitive structure in memory,
preserves and organises information about the various events that occur in a learning
situation. For example, in his famous place-learning experiments. Tolman trained a rat to
turn right in a T maze in order to obtain food. Then he started the rat from the opposite
part of the maze according to operant conditioning theory, the rat should have turned right
because of past conditioning. But the rat, instead, turned towards where the food had been
placed. This phenomenon forced Tolman to conclude that the rat formed a cognitive map
to figure out how to get the food and reinforcement was not a precondition for learning to
take place. Thus, in learning :
1. stimulus (S) leads to another or S-S, rather than the classical S-R or the operant R-S
explanation; and
2. learning consists of a relationship between cognitive environmental cues and expection,
and behaviour is goal-directed.
Cognitive theory of learning has a number of implications. Most of the early human
relation training programmes were based on this concept. Various training programmes
were designed to strengthen the relationship between cognitive cues (organisational,
supervisory, and job procedures) and worker expectations (incentive payment for good
performance). In the context of the modern organisational behaviour, this theory has
relevance in the field of motivation as it is a cognitive process. Thus, various expectancy
theories of motivation derive clues from cognitive theory of learning. Social Learning
Theory
Social learning theory combines and integrates both behaviouristic and cognitive concepts
and emphasises the integrative nature of cognitive, behavioural, and environmental
determinants. The theory agrees with some parts of behavioural and cognitive theories but
finds that these theories do not explain the processes and elements therin fully. It positions
that learning can also take place via vicarious of modelling.
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Modelling Processes : The vicarious or modelling processes essentially involve
observational learning. Learning does not result from discrete stimulus-response
consequence connections. Instead, learning can take place through imitating others. For
example, Bandura, who has contributed a lot to the development of social learning theory
has observed that:
"Most of the behaviours that people display are learned either deliberately or
inadvertently, through the influence of the example."
According to social learning theory, learning occurs in two steps :
1. The person observes how others act and then acquires a menial picture of the act and its
consequences (reward and punishment)
2. The person acts out the acquired image and if the consequences are positive, he will
tend to do it again. If the consequences are negative, the person will not do it again.
If we take the second step of learning, we find that there is a tie in with operant
conditioning. But because there is cognitive, symbolic representation of the modelled
activities instead of discrete response-consequence connections in the acquisition of new
behaviour by the person, modelling goes beyond the rperant conditioning explanation. A
simple example of this phenomenon is that people learn that fire burns the body is learned
from others and not necessarily :y touching the fire.
Modelling Applications : Modelling has some practical applications in developing
desirable behaviour in the organisations. People behave not necessarily according to the
prescribed mode of behaviour but they engage in the pes of behaviour which are
demonstrated by their seniors. Here the role of practice is more important than precept,
Luthans and Kreitner have suggested a modelling strategy to improve organisational
performance which has the following steps.
1. Precisely define the goal or target behaviour that will lead to performance improvement.
2. Select the appropriate model and modelling medium (for example, a live demonstration,
a training film, or a videotape).
3. Make sure the employee is capable of meeting the technical skill requirements of the
target behaviour.
4. Structure a favourable learning environment which increases the probability of attention
reproduction.
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5. Model the target behaviour and carry out supporting activities, such as role playing
clearly demonstrate the positive consequences of the modelled target behaviour.
6. Positively reinforce reproduction of the target behaviour both in training and back on
the job.
7. Once the target behaviour is reproduced, maintain and strengthen it, first with a
continuous schedule of reinforcement and later with an intermittent schedule.
Learning Organisation
Ideally, all organisations must develop their personnel to meet changing environmental
requirements. However, all organisations are not alike in terms ::" developing their
personnel to adapt environmental requirements. Some arganisations take proactive actions
in the light of anticipated environmental Ganges; some take reactive actions based on
environmental changes: and some not react at all to environmental changes. The
organisations which fall in e first category anticipate likely changes in the environment
and gear their :uman resources to face environmental threats that are likely to be posed.
Such organisations emphasise continuous organisational learning and are known learning
organisations. Two terms organisational learning and learning irganisation, are effectively
synonymous but have nuance. While organisational .earning is a process, a set of actions,
learning organisation is an entity. Garvin i^s defined a learning organisation as follows :
"A learning organisation is one which is skilled at creating, acquiring, and transferring
knowledge and modifying its behaviour to reflect new knowledge and insights."
In the context of learning organisations. Senge has differentiated between adaptive
learning and generative learning. Adaptive learning merely involves adaptation to
environmental changes while generative learning embraces creativity and innovation and
also relates to anticipation of environmental changes. Adaptive learning is single-loop
learning that involves correcting erros against set norms. Argyri argues that it does not
work when an environment is uncertain and cause and effect relationship cannot be
reasonably established. Generative learning is double-loop learning that allows and
encourages people to constantly question and test existing norms, beliefs, values, and even
goals to ensure alignment with fast-changing environment. A learning organisation adopts
generative learning that gives rise to a total transformation of the organisation's
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experiences and learning from those experiences. According to Senge, learning
organisations are characterised by:
1. A shared vision which can stem at varied places but is nurtured by the top management.
2. Formulation and implementation of ideas at different levels of the organisation.
3. An understanding of one's own job as well as the way it is influenced by those of others.
4. Resolution of conflicts through collaborative learning and the assimilation of varied
viewpoints.
5. Use of empowerment and charismatic leadership to build a shared vision, empower
people, generate commitment and stimulate effective decision making throughout the
organisation.
Mc Gill and Slocum have emphasised that the learning organisations stress constant
experimentation and feedback and teach the employees how to examine the impact of their
decisions and chage their behaviour accordingly. Such organisations are characterised by:
1. becoming receptive to new ideas and overcoming the desire to closely control
operations.
2. developing systematic thinking.
3. developing creativity,
4. developing a way of personal efficacy, and
5. instilling a sense of empathy and sensitivity.
Based on the above discussion.it can be concluded that a learning organisation differs
from other organisations in the following ways :
1. A learning organisation creates culture for effective learning and development on
continuous basis.
2. Organisational members develop a feeling that they are doing something that is of value
to themselves, the organisation, and the society at large.
3. Every individual in the organisation always learns something to develop his ability to
perform better.
4. Emphasis is put on teamwork to derive the synergistic effect of individual
competencies.
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5. The organisation shares its on going and proposed activities with members on
continuous basis so that they can appreciate how their actgions influence others and how
actions of others influence their own actions.
6. People feel free to share their personal assumptions, feelings, and ideas with others. The
organisation encourages such a sharing.
7. People are free to experiment, take risk, and openly assess the result.
8. There is high level of trust and mutual understanding among personnel at all levels of
the organisation.
Formation of Learning Organisation
Delton has developed a model for creating a learning organisation as shown in Figure :
According to Delton, there are six antecedents that necessitate creation of a learning
organisation. These are as follows :
1. There is a shift in the relative importance of factors of production, from physical and
financial resources to human resources.
2. There is acceptance of the fact that knowledge is prime source of competitive
advantage.
3. There is increasingly rapid pace of change in business environment.
4. There is dissatisfaction with the existing management practices as these Eire not able to
meet the needs of changing environment.
5. There is increasingly competitive business environment which is putting pressure on
business.
6. There are increasingly demanding customers who place high demands on business.
These six antecedents create opportunity for creating a learning organisation.This
opportunity has led to the development of consultants and managers as well as academics
who provide support for creating a learning organisation. Because of availability of such a
support, desire for creating a learning organisation emerges, and the process of creating a
learning organisation begins which goes through the following steps :
1. Commitment of Top Management: Creation of learning organisation may require major
changes in the existing techniques, structures, processes, beliefs, values, and even goals.
Any major organiational change can be successful only if it has received the commitment
of top management. Since creating learning organisation is a major organisational change,
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it must have commitment of top management. Top management commitment ensures that
everyone in the organisation participates in the changes process and resources required for
implementing the change are made available by the organisation.
2. Sharing of Commitment and Creation of Vision : From top management commitment
for creating learning organisation flows sharing of commitment and, then, vision of
learning organisation is created. Top management commitment provides way for
commitment of those managers who will act as change agents during the process of
creating learning organisation. With such a kind of commitment, vision of learning
organisation is created. Vision represents a challenging portrait of what the organisation
and its members can be in future. Therefore, the organisation should create projections
about where it should go and what major challenges lie ahead.
3. Wider Acceptability of Desirability of Learning Organisation : Once vision of learning
organisation is created, it is communicated organisation wide for wider acceptability of
desirability of learning organisation. In this communication, emphasis is put on the
circumstances necessitating creation of learning organisation, utility of learning
organisation, type of changes likely to be made, role of different groups of personnel in
creating learning organisation, and time frame for creating learning organisation. Wider
acceptance of desirability of creating learning organisation is necessary because in its
absence, there is a possibility of resistance from employees to create learning organisation.
4. New Techniques/Structures/Processes: This is the most crucial step in creating learning
organisation. Creation of learning organisation requires total transformation of the existing
organisation, that is, aligning existing techniques, structures, and processes to the
requirement of the learning organisation. What kind of changes will be required in these
depend on their nature and functionality, it is quite possible that some of the existing
techniques, structures, and processes are suitable for the new situation.
5. Commitment of Entire Workforce: Changing of existing techniques, structures, and
processes facilitates the creation of learning organisation but it does not work effectively
unless there is a commitment of the entire workforce for the learning organisation. The
commitment is required because the entire workforce will have to work with different
mind set in the new situation. People have to change their old assumptions,
beliefs.norms.and values that are more suitable to the new situation. They are required to
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share the knowledge created by them with others. They have to be more receptive about
the ideas generated by others.
6. Creating Learning Organisation : After the completion of the above steps, the
learning organisation is created which is quite conducive for learning and development of
personnel. A kind of culture is created in which everyone, takes care of his own learning
and development as well as helping others and receiving help from others in learning and
development. This can be done by undertaking the following activities :
(a) Practising knowledge management for creating, sharing and utilising knowledge
organisation-wide
(b) Creating centres of excellence organisation-wide to achieve excellence in every field
including learning.
(c) Instituting team rewards for ensuring greater cooperation among individuals.
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8 MOTIVATION-CONCEPT AND THEORIES
Concept of Motivation
The term 'motivation has been derived from the word 'motive'. Motives may be defined as
drives or impulses within an individual. It implies something within a person which
prompts him into action. Motives are expressions of a person's need or wants and hence
they are personal or internal desire. Motives or needs start and maintain activity and
determine the behaviour of an individual. Motives provide direction to human behaviour
as they are directed towards certain conscious or sub-conscious goals. A goal is an
outward stimulus for the motive to work. The process of satisfying the needs and motives
of an individual in order to inspire him to work efficiently for desired ends is called
motivation.
Motivation may be defined as the combination of complex forces inspiring a person at
work to willingly use his capacities for the accomplishment of certain objectives. It is
something that impels a person into action and continues keep him in action with
enthusiasm. According to Dale S. Beach, "motivation is an inspirational process which
impels the members of a team to pull their weight effectively, to give their loyalty to the
group, to carry out properly the tasks that they have accepted and generally to play an
effective part in the job that the group has undertaken."
The foregoing description reveals the following characteristics of motivation :
1. Motivation is a personal and internal feeling. It is a psychological phenomenon that
arises in the mind of an individual when his needs and wants are satisfied. Motivation has
no meaning outside the needs of a person. Motivation is related to need satisfaction
because all conscious or motivated behaviour on the part of human beings is directed
towards the satisfaction of needs.
2. Motivation is a continuous process. Human needs are unlimited and a person always
remains desirous to fulfill some or the other need. People must at all times be provided
with the stimulus to work. Satisfaction of one need leads to feeling of another and the
process goes on. Every human being has a variety of needs, i.e., 'Man is a wanting
animal."
3. Human needs are interrelated and influence human behaviour in different ways. A
person cannot be partly motivated, as he is a self-contained and inseparable unit.
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4. ."Motivation causes goal-directed behaviour. Feeling of a need creates tension. A
person works for the goals to obtain rewards that satisfy his needs. When the need is
satisfied tension is removed and the person feels motivated to work for the other common
goals.
While trying to motivate people, a manager must take into consideration the following
factors which determine the individual reactions to instructions or measures:
(a) the individual's needs and characteristics;
(b) the individual's emotional and temperamental make-up;
(c) the pattern of his beliefs and values; and
(d) the social organisation of which he is a part. Significance of Motivation
Motivation is an integral part of the process of direction. While directing his subordinate, a
manager must create and sustain in them the desire to work for the specified objectives :
1. High Efficiency : A good motivational system releases the immense untapped reservoirs
of physical and mental capabilities. A number of studies have shown that motivation plays
a crucial role in determining the level of performance. "Poorly motivated people can
nullify the soundest organisation," said Alien. By satisfying human needs motivation helps
in increasing productivity. Better utilisation of resources lowers cost of operations.
Motivation is always goal directed. Therefore, higher the level of motivation, greater is the
degree of goal accomplishment.
2. Better Image : A firm that provides opportunities for financial and personal
advancement has a better image in the employement market. People prefer to work for an
enterprise because of opportunities for development, and sympathetic outlook. This helps
in attracting qualified personnel and simplifies the staffing function.
3. Facilitates Change: Effective motivation helps to overcome resistance to change and
negative attitude on the part of employees like restriction of output. Satisfied workers take
interest in new organisational goals and are more receptive to changes that management
wants to introduce in order to improve efficiency of operations.
4. Human Relations : Effective motivation creates job satisfaction which results in cordial
relations between employer and employees. Industrial disputes, labour absenteeism and
turnover are reduced with consequent benefits. Motivation helps to solve the central
problem of management, i.e., effective use of human resources. Without motivation the
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workers may not put their best efforts and may seek satisfaction of their needs outside the
organisation.
The success of any organisation depends upon the optimum utilisation of resources. The
utilisation of physical resources depends upon the ability to work and the willingness to
work of the employees. In practice, ability is not the problem but necessary will to work is
lacking. Motivation is the main tool for building such a will. It is for this reason that
Rensis Likert said, "Motivation is the core of management." It is the key to management in
action. Process of Motivation
Motivation is the result of an interaction between human needs and incentives. A person
feels motivated when available incentives lead to the satisfaction of his motives or needs.
The various steps in the process of motivation are described below.
1. Awareness of Need : Needs or motives of a person are the starting point in the
motivational process. Motives are directed towards the realisation of certain goals which
in turn determine the behaviour of individuals. This behaviour leads to goal-directed
behaviour. In other words, awareness of unsatisfied needs creates tension in the mind of a
person.
2. Search for Action : In order to relieve his tension and to satisfy his needs, the
individual looks for a suitable action. He develops certain goals and makes an attempt to
achieve them.
3. Fulfilment of Need : In case the individual is successful in his attempt, his need is
satisfied and he feels motivated. If the attempt is unsuccessful the need remains unsatisfied
and the individual engages himself in search for a new action. He will engage himself in
constructive or defensive behaviour.
4. Discovery of New Need : Once one need is fulfilled, some other need will emerge and
the individual will set a new goal. This process continues to work within an individual
because human needs are unlimited.
Discovery of New Need I
Awareness of Needs
Non-fulfilment of Need
Revaluation and New Action
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Fig.: Motivational Process : An Overview Nature of Motivation
Based on the definition of motivation, we can derive its nature relevant for human
behaviour in organisation. Following characteristics of motivation clarify its nature :
1. Based on Motives : Motivation is based on individual's motives which are internal to
the individual. These motives are in the form of feelings that the individual lacks
something. In order to overcome this feeling of lacking something, he tries to behave in a
manner which helps in overcoming this feeling.
2. Affected by Motivating : Motivation is affected by way the individual is motivated.
The act of motivating channelises need satisfaction. Besides, it can also activate the latent
needs in the individual. That is, the needs that are less strong and somewhat dormant, and
harness them in a manner that would be functional for the organisation.
3. Goal-directed Behaviour: Motivation leads to goal-directed behaviour. A goaldirected
behaviour is one which satisfies the causes for which behaviour takes place. Motivation
has profound influence on human behaviour; in the organisational context, it harnesses
human energy to organisational requirements.
4. Related to Satisfaction : Motivation is related to satisfaction. Satisfaction refers to the
contentment experiences of an individual which he derives out of need fulfilment. Thus,
satisfaction is a consequence of rewards and punishments associated with past
experiences. It provides means to analyse outcomes already experienced by the individual.
5. Person Motivated in Totality : A person is motivated in totality and not in part. Each
individual in the organisation is a self-contained unit and his needs are interrelated. These
affect his behaviour in different ways. Moreover, feeling of needs and their satisfaction is
a continuous process. As such, these create continuity in behaviour.
6. Complex Process: Motivation is a complex process; complexity emerges because of the
nature of needs and the type of behaviour that is attempted to satisfy those needs. These
generate complexity in motivation process in the following ways:
(i) Needs are internal feelings of individuals and sometimes, even they, themselves, may
not be quite aware about their needs and the priority of these. Thus, understanding of
human needs and providing means for their satisfaction becomes difficult.
(ii) Even if needs are identified, the problem is not over here as a particular need may
result into different behaviours from different individuals because of their differences.
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For example, the need for promotion may be uniform for different individuals but all
individuals may not engage in similar type of behaviour; they may adopt different routes
to satisfy their promotion need.
(iii) A particular behaviour may emerge not only because of the specific need but it may
be because of a variety of needs. For example, hard work in the organisation may be due
to the need for earning more money to satisfy physiological needs, or may be to enjoy the
performance of work itself and money becomes secondary, or to get recognition as a hard-
working person.
(iv) Goal-directed behaviour may not lead to goal attainment. There may be many
constraints in the situation which may restrain the goal attainment of goal-directed
behaviour. This may lead to frustration in an individual thereby creating lot of problems.
Types of Needs
There are many needs which an individual may have and there are various ways in which
these may be classified. The basic objective behind classification of needs into different
categories is to find out similarity and dissimilarity in various needs so that incentives are
grouped to satisfy the needs falling under one category or the other. From this point of
view, a meaningful classification of needs is based on the sources through which needs
emerge. Needs may be a natural, biological phenomenon in an individual, or these may
develop over the period of time through learning. Since these two types of needs emerge
from two different sources, these may be satisfied by different types of incentives.
Besides, there are certain needs which are neither purely biological nor these are
completely learned but fall in between the two. Therefore, a separate category has to be
provided for these. Thus, needs may be grouped into three categories :
1. Primary needs
2. Secondary needs
3. General needs
1. Primary Needs : Primary needs are also known as physiological, biological, basic, or
unlearned needs. However, the term primary is more comprehensive as compared to other
terms. Primary needs are animal drives which are essential for survival. These needs are
common to all human beings, though their intensity may differ. Some of the needs are
food, sex, sleep, air to breathe, satisfactory temperature, etc. These needs arise out of the
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basic physiology of life and are important to survival and preservation of species. These
needs are also conditioned by social practice. According to the concept of'economic man',
these are the only wants of a human being and he only attempts to satisfy them. But
researches in human behaviour show that psychological needs are equally rather more
important for human beings.
2. Secondary Needs : In contrast to the primary needs, secondary needs are not natural but
are learned by the individual through his experience and interaction. Therefore, these are
also called learned or derived needs. Emergence of these needs depends on earning. This
is the reason why we find differences among need pattern of a child and a matured
individual. There may be different types of secondary needs like need for power,
achievement, status, affiliation, etc.
3. General Needs : Though a separate classification for general needs is not always given,
such a category seems necessary because there are a number of needs which lie in the grey
area between the primary and secondary classifications. To be included in this category, a
need must not be learned but at the same time, it is not completely physiological. In fact,
there are certain such needs like need for competence, curiosity, manipulation, affection,
etc.
Here, we have just mentioned the classification of various needs into different categories
for providing an understanding of the way needs emerge. Their detailed description will be
provided in various theories of motivation, particularly based on contents, as these theories
try to explain the different needs which people seek to satisfy. Motivation and Behaviour
Motivation causes goal-directed behaviour as indicated in its nature. Development of a
need by an individual generates a feeling that he lacks something. This lack of something
creates tension in the mind of the Individual. Since the tension is not an ideal state of
mind, the individual tries to overcome this by engaging himself in a behaviour through
which he satisfies his needs. This is goal-directed behaviour and is presented in following
figure :
Fig. Goal-directed behaviour
Goal-directed behaviour leads to goal-fulfilment and the individual succeeds in fulfilling
his needs and thereby overcoming his tension in the favourable environment. Behaviour
ends the moment tension is released. However, satisfaction of one need leads to the
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development of another need, either same need after the lapse of certain time or different
need and so the goal-directed behaviour goes on. Thus, goal-directed behaviour is a
continuous process. Motivation and Performance
Motivation is necessary for work performance because if people do not feel inclined to
engage themselves in work behaviour, they will not put in necessary efforts to perform
well. However, performance of an individual in the organisation depends ou a variety of
factors besides motivation. Therefore, it is desirable to identify various factors which
affect individual performance and the role that motivation plays in this. Factors Affecting
Individual Performance
Observations show that (1) various individuals perform differently in the same work
situations, and (2) the same individual performs differently in different work situations.
These statements suggest that various factors which affect an inividual's performance are
broadly of two types—individual and situational—and within each type, there may be
several factors as shown in following figure:
We can derive from above Figure that Individual performance depends on the following
factors :
1. motivation of individual,
2. his sense of competence,
3. his ability,
4. his role perception, and
5. organisational resources.
If any of the elements is taken away, performance will be affected adversely. The double-
headed arrow between motivation and sense of competence indicates that the two
variables mutually influence each other. Reward, as a result of individual's performance
affects his level of motivation. If the reward is perceived to be of equivalence and
equitable, it energises the individual for still better performance and this process goes on.
Let us have a brief discussion on these factors :
1. Motivation : Level of motivation drives an individual to work. As we have seen earlier,
motivation is based on motive which is a feeling that an indi-
iual lacks something. This feeling creates some sort of tension in his mind. In order to
overcome this tension, he engages in goal-directed behaviour, that is taking those actions
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through which his needs are satisfied. Thus, motivation becomes a prime mover for efforts
and better work performance. Other roles of ziotivation will be seen a little later.
2. Sense of Competence : Sense of competence denotes the extent to which an individual
consistently regards himself as capable of doing a job. Sense of competence of an
individual depends to a very great extent on his locus of control. Locus of control means
whether people believe that they are in control ::" events or events control them. Those
who have internal locus of control believe that they can control and shape the course of
events in their lives; those who have external locus of control tend to believe that events
occur purely by chance or because of factors beyond their own control. An individual with
internal locus of control tends to be high performer than those with external locus of
control. However, this sense of competence is also an independent factor but depends on
the ability of the individual.
3. Ability : While sense of competence is a type of perception about oneself, ability is his
personal attributes relevant for doing a job. Often, ability is expressed in the form of the
following equation :
Ability = Knowledge x Skill Knowledge refers to the possession of information and ideas
in a particular field which may be helpful in developing relationships among different
variables related to that field. Skill refers to expertness, practical ability or faculty in an
action for doing something. Thus, if the individual has ability relevant to his job, his
performance tends to be higher than those who do not possess such ability.
4. Role perception : A role is the pattern of actions expected of a person in activities
involving others. Role reflects a person's position in the social system with its
accompanying rights and obligations. In an organisation, activities of an individual are
guided by his role perception, that is, how he thinks he is supposed to act in his own role
and how others act in their role. To the extent this role perception is based on reality and
the clarity of role, the individual tends to perform well. There are two types of problems
which emerge in role specification : role ambiguity and role conflict. Role ambiguity
denotes the state in which the individual is not clear what is expected from him in the job
situation. Role conflict is the situation in which the individual engages in two or more
roles simultaneously and these roles are mutually incompatible. In both these situations,
his performance is likely to be affected adversely.
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5. Organisational Resources: Organisational resources denote various types of
facilities—physical and psychological—which are available at the workplace. Physical
facilities include appropriate layout of the workplace and conducive physical environment.
Psychological facilities include appropriate reward system, training and development
facilities, harmonious workgroup, appropriate and motivating leadership styles, motivating
work, and so on. These organisational resources work in two ways in increasing individual
performance. First, they facilitate job performance. Second, they work as motivating
factors which enhance individual enthusiasm to perform well.
Role of Motivation
From the above discussion, we find that motivation is one among the various factors
affecting individual performance. However, it is one of the most important factors. All
organisational facilities will go waste in the lack of motivated people to utilise these
facilities effectively. Every superior in the organisation must motivate his subordinates for
the right types of behaviour. Diagnosing human behaviour and analysing as to why people
behave in a particular way is of prime importance in motivating them irrespective of the
nature of the organisation because individual is the basic component of any organisat on.
The importance of motivation in an organisation may be summed up as follows :
1. High Performance Level : Motivated employee; put higher performance as compared to
other employees. In a study by Wi Ham James, it was found that motivated employees
worked at close to 80-90 per cent of their ability. The study further suggested that hourly
employees could maintain their jobs, if they were not fired, by working approximately 20
to 30 per cent of their ability. The high performance is a must for an organisation being
successful and this performance comes by motivation.
2. Low Employee Turnover and Absenteeism : Motivated employees stay in the
organisation and their absenteeism is quite low. High turnover and absenteeism create
many problems in the organisation. Recruiting, training and developing large number of
new personnel into a working team take years. In a competitive economy, this is almost an
impossible task. Moreover, this also affects the reputation of the organisation
unfavourably.
3. Acceptance of organisational Changes : Organisations are created in the society.
Because of changes in the society—changes in technology, value system, etc. organisation
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has to incorporate those changes to cope up with the requirements of the time. When these
changes are introduced in the organisation, there is a tendency to resist these changes by
the employees. However, if they are properly motivated, they accept, introduce, and
implement these changes keeping the organisation on the right track of progress.
Theories of Motivation
There are basically two types of theories-content theories and process theories. Content
theories attempt to specify and determine the needs that motivate people to work while
process theories attempt to identify the factors that explain individual behaviour:
Theories of Motivation \
Content Theories
Maslow's Need Hierarchy Theory Herzberg"s Two Factor Theory
1-McClelland's Need Theory Alderfer's ERG Theory
Process Theories
- McGregor's Theory of X and Y
- Ouchi's Theory Z
- Vroom's Theory
^ Porter and Lawler Theory
The content theories have been developed to explain the nature of motivation in terms of
needs. These theories try to answer the question : "What motivates people ?" The basic
idea underlying content theories is that individuals have certain needs and they are
motivated to engage in activities that will satisfy these needs.
The process theories attempt to identify major variables that explain individual behaviour.
Content theories concentrate on "what" motivates a person while process theories
concentrate on "how" motivation occurs. Maslow's Need Hierarchy Theory
Abraham H. Maslow, an eminent American psychologist, developed a general theory of
motivation, known as the 'Need hierarchy theory'. The salient features of this theory are as
follows :
(i) The urge to fulfil needs is a prime factor in motivation of people at work. I toman
beings strive to fulfil a wide range of needs. Human needs are multiple, complex and
interrelated.
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(ii) Human needs form a particular structure or hierarchy. Physiological needs are at the
base of the hierarchy while self-actualisation needs are at the apex. Safety (security) needs,
social needs and esteem (ego) needs are positioned in between. As one proceeds from base
towards apex, needs become less essential.
(iii) Lower-level needs must at least partially be satisfied before higher-level needs
emerge.
(iv) As soon as one need is satisfied, another need emerges. This process of need
satisfaction continues from birth to death. Man is a wanting animal.
(v) A satisfied need is not a motivator, i.e, it ceases to influence human behaviour. It is the
unsatisfied needs which regulate an individual's behaviour.
(vi) Various need levels are interdependent and overlapping. Each higher level need
emerges before the lower level need is completely satisfied.
Self-actualisation
Needs
Esteem I
Needs Social
Needs
Safety
1 Needs
Physiological
Needs
As shown above figure, there are five categories of human needs :
1. Physiological Needs : The physiological needs are at the top of the hierarchy because
they tend to have the highest strength until they are reasonably satisfied. Until these needs
are satisfied to the degree needed for the efficient operation of the body, the majority of a
person's activities will probably be at this level, and the other levels will provide him with
little motivation. A famous saying 'man can live on bread alone if there is no bread'
suggests that human beings first try to acquire necessities for their survival.
2. Safety Needs: Once the physiological needs are satisfied to a reasonable level—it is not
necessary that they are fully satisfied and degree of reasonableness is subjective—other
levels of needs become important. In this hierarchy come the need for safety, that is need
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for being free of physical danger. In the industrial society, safety needs may take
considerable importance in the context of the dependent relationship of employees to
employers. As pointed out by McGregor, the safety needs may serve as motivators in such
circumstances.
3. Social Needs : After the first two needs are satisfied, social needs become important in
the need hierarchy. Since man is a social being, he has a need to belong and to be accepted
by various groups. When social needs become dominant, a person will strive for
meaningful relations with others. If the opportunity for association with other people is
reduced, men often take vigorous action against the obstacles to social intercourse. In the
organisation, workers form informal group environment. Such environment develops
where the work is routine, tedious, or over-simplified. This situation is made worse when
workers are closely supervised and controlled, but have no par channel of communication
with management. In this type of environment, workers depend on informal groups for
support of unfulfilled social needs such as a filiation.
4. Esteem Needs: The esteem needs are concerned with self-respect, self-confidence, a
feeling of personal worth, feeling of being unique, and recognition.
Satisfaction of these needs produces feelings of self-confidence, prestige, power, and
control. The satisfaction of esteem needs is not always obtained through mature or
adaptive behaviour. It is sometimes generated by disruptive and irresponsible actions.
Some of the social problems have their roots in the frustration of the esteem needs.
5. Self-actualisation Needs : Self-actualisation is the need to maximise one's own
potential, whatever it may be. This is related with the development of intrinsic capabilities
which lead people to seek situations that can utilise their potential. This includes
competence which implies control over environmental factors, both physical and social,
and achievement. A man with high intensity of achievement needs will be restless unless
he can find fulfilment in doing what he is fit to do. As Maslow has put it, "this need might
be phrased as the desire to become more and more what one is, to become everything that
one is capable of becoming." Critical Appraisal
This theory is widely criticised for the following reasons :
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(i) Needs are not the only determinant to behaviour. People seek objects and engage in
behaviour that are in no way connected with the gratification of needs. There are other
motivating factors like perceptions, expectations, experiences, etc.
(ii) The theory gives an oversimplification of human needs and motivation. Need
recognition and fulfilment do not always follow the specific sequence or hieracrchy
suggested by Maslow. Need classification is somewhat artificial and arbitrary as human
needs cannot be classified into neat watertight compartments. Therefore, the theory may
not have universal validity.
(iii) The hierarchy of needs is not always fixed. Different people may have different
orders. For example, in case of creative people like singers, painters, etc. self-actualisation
need may become a dominant motivating force even before the lower order needs are
satisfied. Similarly, the need priorities of the same individual may change over time. As a
result, a manager cannot keep up with a continuously revolving set of needs. Thus,
Maslow's model presents a somewhat static picture of need structure. The theory does not
recognise individual differences. Individuals differ in the relative intensity of their
different needs.
(iv) Maslow's thoery is based on a relatively small sample. It is a clinically derived theory
and its unit of analysis is the individual. That is why Maslow presented his model with
apologies to those who insisted on'conventional reliability, validity, sampling, etc.
(v) There is no definite evidence that once a need is satisfied it loses its motivating force.
It is also doubtful that satisfaction of one need automatically activates the next need in the
hierarchy. Some persons will not aspire after their lower-order needs have been satisfied.
Human behaviour is the outcome of several needs acting simultaneously. The same need
may not lead to the same response in all individuals. Similarly, one particular behaviour
may be the result of different needs. There is lack of direct cause and effect relationship
between need and behaviour.
Despite these limitations, Maslow's theory has a great appeal for managers. It is still
relevant because needs are important for understanding behaviour. The theory provides a
convenient conceptual framework of the study of motivation.
Herzberg's Two-Factor Theory
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In the late fifties, Frederick Herzberg and his associates conducted interviews of 200
engineers and accountants in the Pittsburgh area of the United States. These persons were
asked to relate elements of their jobs which made them happy or unhappy. An analysis of
their answers revealed that feelings of unhappiness or dissatisfaction were related to the
environment in which people were working. On the contrary, feelings of happiness or
satisfaction were related to their jobs.
According to Herzberg, maintenance or hygiene factors are necessary to maintain a
reasonable level of satisfaction among employees. These factors do not provide
satisfaction to the employees but their absence will dissatisfy them. Therefore, these
factors are called dissatisfiers. These are not intrinsic parts of a job but they are related to
conditions under which a job is performed. They are environmental factors (extrinsic to
the job) and are given in the following table : Table : Motivators and Demotivators
Maintenance Factors Motivating Factors
Company policy and administration Achievement
Technical supervision Recognition
Inter-personal relationship with peers Advancement
Inter-personal relationship with supervisors Opportunity for growth
Inter-personal relationship with subordinates Responsibility
Salary Work itself
Job Security
Personal life
Working conditions
Status
On the other hand, motivational factors are intrinsic parts of the job. Any increase in these
factors will satisfy the employees and help to improve performance. But a decrease in
these factors will not cause dissatisfaction.
Herzberg noted that the two sets of factors are unidimensional, i.e., their effect can be seen
in one direction only. He admitted that the potency of any of the job factors is not solely a
function of the nature of the factor itself. It is also related to the personality of the
individual who may be either a 'motivation seeker' or a 'maintenance seeker'. A motivation
seeker is motivated primarily by the nature of the task and has high tolerance for poor
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environmental factors. On the other hand, a maintenance seeker is motivated primarily by
the nature of his environment and tends to avoid motivation opportunities. He is satisfied
with the maintenance factors surrounding the job. He shows little interest in the kind and
quality of work. Critical Appraisal
Herzberg's motivation hygiene theory has received a great deal of attention and it has
become popular among managers. One striking conclusion of Herzberg's theory is that one
cannot achieve higher performance simply by improving wages and working conditions.
The conclusion should be an eye opener to managers who go on improving wages and
fringe benefits with the hope of improving efficiency. Herzberg stressed upon the job as an
intrinsic motivating factor. The key to job satisfaction and high performance lies in job
enrichment.
Herzberg's two-factor theory has made a significant contribution towards improving
manager's basic understanding of human behaviour. His theory is simple and based on
empirical data. It offers specific actions for managers to improve motivation and
performance. This thoery has exercised tremendous impact in stimulating thought,
research and experimentation in the area of work motivation.
Traditionally, job satisfaction and dissatisfaction were viewed as opposite ends of a single
continuum. Herzberg's findings indicate that dissatisfaction is not simply the opposite of
satisfaction or motivation. Satisfaction and dissatisfaction are independent rather than
opposite ends of the same continuum. Hygiene Factors
Dissatisfaction No Satisfaction
Motivating Factors
No Satisfaction Satisfaction
(No Motivation) (Motivation)
Fig.: Satisfaction and Dissatisfaction
Herzberg's theory has been criticised on the following grounds :
(i) The theory is based on a small sample of 200 accountants and engineers which is not
representative of the workforce in general. Other researchers have drawn different results
from similar studies. The theory is most applicable to knowledged workers. Studies of
manual workers are less supportive of the theory. Therefore, the theory is not universally
applicable.
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(ii) Herzberg's model is method bound and is limited by the critical incident method used
to obtain information. When satisfied, people attribute the causes of their feelings to
themselves. When they are dissatisfied they attribute their failures to outside forces.
People tend to tell the interviewer what he would like to hear rather than what they really
feel. The interview method used by Herzberg suffers from bias. The methodology has the
bias of being able to recall the most recent job conditions and feelings. The method is
fraught with procedural deficiencies also. The analysis of the responses derived from this
approach is highly subjective. Therefore, the empirical validity of the theory is doubtful.
(iii) The thoery focuses too much attention on satisfaction rather than on performance
level. There is no direct link between satisfaction, motivation and performance. Therefore,
Herzberg's two-factor theory is a grossly oversimplified portrayal of the process of
motivation.
(iv) The distinction between maintenance factors and motivating factors is not fixed. What
is maintenance factor (e.g., pay) for a worker in the United States may very much be a
motivator for an Indian worker. The theory ignores the dominating influence of the
situational variables. Motivational and maintenance factors are not wholly unidimensional.
They operate primarily in one direction but also partly in other direction.
Comparison between Maslow and Herzberg Theories
Herzberg's theory is an extension of Maslow's need priority model. The two models are
basically compatible or complementary. There is a close similarity between survival needs
(physiological, safety and social needs) and dissatisfiers on the one hand and between
growth needs (esteem and self-actualisation needs) and satisfiers on the other.
Both Maslow and Herzberg models tend to over-simplify the motivational process.
Maslow's model is formulated in terms of human needs while Herzberg's model is in terms
of rewards or goals. Herzberg has attempted to refine and reinforce on the need priority
model and has thrown a new light on the content of work motivation. Herzberg has
suggested the use of hygiene factors to avoid dissatisfaction and the use of motivators to
improve motivation and job performance. Maslow has given a hierarchical or sequential
arrangement suggesting that any unsatisfied need whether of lower order or higher order
will motivate individuals. Despite these apparent differences, the two models show
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marked similarities. Both models fail to take account of individual differences in
motivation.
Table : Maslow vs. Herzberg Theories
Point of Difference Maslow's Theory Herzberg's Theory
1. Formulation In terms of needs. Interms of rewards incen-
tives.
2. Order of Hierarchical or sequential No such arrangement.
Need arrangement of needs.
3. Nature of Descriptive. Perscriptive.
Theory
4. Essence of Unsatisfied needs motivate Gratified needs regulate
Theory individuals. behaviour and
performance.
5. Motivator Any need can be a motivator Only higher order needs
if it is relatively unsatisfied. serve as motivators.
6. Applicability Takes a general view of the Takes a microview and
deals
motivational problems of all with work-oriented motiva-
workers. tional problems of profes-
sional workers.
McClelland's Need Theory
Shortly after World War II, a group of psychologists led by David C. McClelland of
Harvard University began to experiment with TAT (Thematic Apperception Test) to see if
it were sensitive enough to detect changes in motivation that were caused by simple
attempts to sway the individual's attitudes. In order to simplify their task, the group
decided to select one particular motive for intensive analysis. For, it was not long before
the implications of the achievement of motive were recognised that it became the subject
of intensive investigation in its own right. McClelland has identified three types of basic
motivating needs. He classified these as need for power (n/PWR), need for affiliation
(n/AFF), and need for achievement (n/ACH). Considerable research work was done by
McClelland and his associates in this respect, particularly, on achievement motive :
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Power Motive : The ability to induce or influence behaviour is power. Power motive has
been formally recognised and studied for a relatively long time. The leading advocate of
the power motive was Alfred Adler. To explain the power need, the need to manipulate
others or the drive for superiority over :hers, Adler developed the concepts of inferiority
complex and compensation. Accordingly, the individual's life style is characterised by
striving to compensate fa the feelings of inferiority which are combined with the innate
drive for power. McClelland and his associates have found that people with a high power
need have a great concern for exercising influence and control. Such individuals generally
seek positions of leadership; they involve in conversation; they are forceful, outspoken,
hard headed, and demanding.
Affiliation Motive: Since people are social animals, most individuals like to interact and
be with others in situations where they feel they belong and are accepted. Sometimes,
affiliation is equated with social motives. However, the affiliation motive is not so broad.
Affiliation plays a very complex but vital role in human behaviour. The study of affiliation
is complicated by the fact that some behavioural scientists believe that it is an unlearned
motive. However, the fact 3 partly true. McClelland has suggested that people with high
need for affilia-•:^n usually derive pleasure from being loved and tend to avoid the pain of
being rejected. They are concerned with maintaining pleasant social relationship, enjoying
a sense of Intimacy and understanding, and enjoy consoling and helping others in trouble.
Achievement Motive: Over the years, behavioural scientists have observed that some
people have an intense desire to achieve. McClelland's research has led him to believe that
the need for achievement is a distinct human motive that can be distinguished from other
needs. It can also be isolated and assessed in any group. McClelland has identified four
basic characteristics of high achievers:
1. Moderate Risk : Taking moderate risk is probably the simple most descriptive
characteristic of the person possessing high achievement need. This is against the common
sense that a high achiever would take high risks.
2. Immediate Feedback: Person with high n/ACH desires activities which provide
immediate and precise feedback information about how he is progressing towards a goal.
3. Accomplishment: Person with high n/ACH finds accomplishing a task intrinsically
satisfying in and of itself, or he does not expect or necessarily want tie accompanying
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material rewards. Though he likes to earn money a lot but zot for the usual reason of
wanting money for its own sake or for the material renefits that it can buy.
4. Preoccupation with the Tasks : Once a high achiever selects a goal, be tends to be
totally preoccupied with the task until it is successfully completed. He will not feel
satisfied unless he has put his maximum effort in completing the task. This type of
dedicated commitment often reflects on his outward personality, which frequently has a
negative effect on those who come in contact »ith him.
Implications of the Theory
Because an organisation and its every department represents groups of individuals
working together to achieve goals, the need for achievement is of paramount importance.
According to the research conducted by McClelland and others, managers show high on
achievement and power and low on affiliation. The research finding also indicates that
chief executives of smaller companies show higher achievement motive as compared to
those of large companies. Similarly, middle level managers have higher n/ACH as
compared to the chief executive. This seems to be contradictory but McClelland feels that
it is quite understandable because chief executives have already achieved, and those below
them are striving to advance.
Achievement-motivated people can be the backbone of most organisations because they
progress much faster. However, when they are promoted where their success depends not
only on their work but on the activities of others, they may be less effective. Since they are
high task-oriented and work to their utmost capacity, they expect similar results from
others. As a result, they sometimes lack human skill and patience of being effective
managers, specially of those persons having high affiliation motive. Thus, such persons
can be better managers in production, research and development as compared to personnel
activity. An organisation may need managers with varying degrees of achievement and
affiliation motives.
Development of Achievement Motive : Achievement motive can be developed at an early
age and also at a later stage. Experimenting with people from the USA, Italy, Poland, and
India, McClelland and his group found that in all cases, training programmes were
successful in increasing individual need for achievement. Their achievement development
course has four primary goals :
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1. To teach participants how to think, talk, and eat like a person with high achievement.
2. To stimulate participants to set higher, but carefully planned and realistic work goals
over the next two years.
3. To give the participants knowledge about themselves.
4. To create group esprit de corps from learning about each other's hopes and fears,
successes and failures, and from going through emotional experiences together, away from
everyday life, is a retreat setting.
It was found that after two years, who had taken the course made more money, were
promoted faster and expanded their business faster than comparable men who had taken
some other management course. For example, in India, he subjected a group of fifty-two
entrepreneurs to the concentrated achievement motivation course. Two-thirds of them
were found unusually active in the post-training period. Some of them actually started new
business, others investigated new product lines, increased their profit and expanded their
present business. This has another implication, that is, in the training programmes, such
courses may be added to develop achievement motive in individuals where it is needed.
Alderfer's ERG Theory
Alderfer has provided an extension of the Maslow's need hierarchy and Herzberg's two-
factor theory of motivation, particularly the former. Like the previous theories, Alderfer
believes that there is a value in categorising needs and that there is a basic distinction
between lower-order needs and higher-order needs. Based on the empirical evidences, he
has found that there seems to be some overlapping between physiological, security, and
social needs. Also the lines of demarcation between social, esteem, and achievement needs
are not clear. Based on these observations, Alderfer has categorised the various needs into
three categories : existence needs, relatedness needs, and growth needs. The first three
letters of these needs are used to call it ERG theory.
Existence Needs : Existence needs include all needs related to physiological and safety
aspects of an individual. Thus, existence needs group physiological and safety needs of
Maslow into one category as these have similar impact on the behaviour of the individual.
Relatedness Needs : Relatedness needs include all those needs that involve relationship
with other people for whom the individual cares. Relatedness needs cover Maslow's social
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needs and that part of esteem needs which is derived from the relationship with other
people.
Growth Needs : Growth needs involve the individual making creative efforts to achieve
full potential in the existing environment. These include Maslow's self-actualisation need
as well as that part of the esteem need which is internal to the individual like feeling of
being unique, feeling of personal growth, etc.
ERG theory offers the following propositions so far as satisfaction of various needs is
concerned :
1. Three need categories form a hierarchy only in the sense of decreasing concreteness. As
people move from a focus on existence to relatedness and to growth needs, the ways in
which they can satisfy those needs become increasingly abstract.
2. The rise in the level of satisfaction of any lower-order need may result into decrease in
its importance. Its place is taken by another need. Thus, the individual is able to move to
become productive and creative, and as he moves to this level, he sets a higher goal for
himself.
3. People are likely to try to satisfy their most concrete needs first and then, they move on
to the abstract needs. In this way, progression of need satisfaction of ERG theory is similar
to Maslow's need hierarchy, that is, people first satisfy their lower needs and gradually
progress to the satisfaction of higher needs in that order. However, Alderfer goes one step
further. He argues that along with satisfaction-progression, people can experience
frustration-regression, that is, if people cannot satisfy their needs at a given level of
abstraction, they 'drop back' and again focus on more concrete needs.
The relationship between Maslow's need hierarchy theory and Alderfer's
Implications of ERG Theory
Alderfer has conceived ERG needs along a continuum which avoids the implication that
the higher up an individual is in the need hierarchy, better it is. According to this theory,
different types of needs operate simultaneously. If the individual's particular path towards
satisfaction is blocked, he may persist along that path but at the same time, he regresses
towards more easily satisfiable needs. In this way. Alderfer distinguishes between chronic
needs which persist over a period of time (like most of the lower-order needs) and the
episode needs which are situational and can change according to the environment. From
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this point of view, ERG theory provides us categorisation of needs, their relationship, and
the progression and regression of their satisfaction.
Vroom's Expectancy Theory
Criticising the content theories of motivation which are based on the needs of people and
their priority, Vroom has presented an alternative theory which is based on motivation
process. Various theories which are based on motivation process are more concerned with
the cognitive antitheticals that go into motivation or efforts and the way they relate to each
other.
Vroom's expectancy theory has its roots in the cognitive concepts in the choice behaviour
and utility concepts of classical economic theory. According to Vroom, people will be
motivated to do things to achieve some goals to the extent that they expect that certain
actions on their part will help them to achieve the goal. Vroom's model is built around the
concepts of value, expectancy, and force; its basic assumption is that the choice made by a
person among alternative courses of action is lawfully related to psychological events
occurring contemporaneously with the behaviour. Vroom's concept of force is basically
equivalent to motivation and may be shown to be the algebric sum of products or valences
multiplied by expectations. Thus,
Motivation (force) = I Valence x Expectancy
Vroom's expectancy theory is presented as follow :
As shown above, the model is built around the concepts of valence, instrumentality, and
expectancy and, therefore, this model is referred to as VIE theory. Various terms used in
Vroom's model are explained below.
Valence—According to Vroom, valence means the strength of an individual's preference
to a particular outcome. Other terms equivalent to valence used in various theories of
motivation are incentive, attitude, and expected utility. In order for the valence to be
positive for individual, he must prefer attaining the outcome to not attaining it; a valence
of zero occurs when the individual is "different towards the outcome; and the valence is
negative when the individual prefers not attaining the outcome to attaining it.
Instrumentality: Another major input into the valence is the instrumen-ity of the first-level
outcome in obtaining a derived second-level outcome. Hunt and Hill have exemplified it
by promotion motive. For example, assume that an individual desires promotion and feels
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that superior performance is a ry strong factor in achieving that goal. His first-level
outcome is then supe-, average, or poor performance. His second-level outcome is
promotion. The 5rst-level outcome of high performance, thus, acquires a positive valence
by virtue of the expected relationship to the preferred second-level outcome of pro-tion. In
this case, the person would be motivated for superior performance because of his desire to
be promoted. The superior performance (.first-level outcome) is being instrumental in
obtaining promotion (second-level outcome). Expectancy: Another factor in determining
the motivation is expectancy, I is, the probability that a particular action will lead to the
outcome. Expectancy is different from instrumentality input into valence. Expectancy
differs from instrumentality in that it relates efforts to first-level outcomes whereas
instrumentality relates first-and second-level outcomes to each other. Thus, expectancy is
the probability that a particular action will lead to a particular first-level outcome. The
strength of motivation to perform a certain act will depend on the sum of the products of
the values for the outcomes times the expectancies. Implications of the Theory
One of the important features of this theory is that it recognises individual differences in
work motivation and suggests that motivation is a complex process as compared to
Maslow's or Herzberg's simplistic models. It also clarifies the relationship between
individual and organisational goals. Hunt and Hill point : ut that 'instead of assuming that
satisfaction of a specific need is likely to influence organisational objectives in a certain
way, we can find out how aportant to the employees are the various second-level outcomes
(worker goals), ie Instrumentality of various first-level outcomes (organisational
objectives) for their attainment and the expectancies that are held with respect to the
employees' ability to influence the first-level outcomes'. Thus, Vroom's theory is
consistent with the idea that a manager's job is to design an environment for performance,
necessarily taking into account the differences in various situations. Furthermore, this
theory is also quite consistent with management by objectives. However, Vroom's theory
is difficult to research and apply in practice. This is evident by the fact that there have
been only a few research studies designed specifically to test the Vroom theory. In fact,
Vroom himself depended largely upon researches conducted prior to the formulation of his
theory. Nevertheless, from a theoretical standpoint, the Vroom model seems to be a step in
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the right direction but does not give the manager practical help in solving his motivational
problem.
Porter-Lawler Model of Motivation
Built in large part on expectancy model. Porter and Lawler have derived a substantially
more complete model of motivation and have applied it in their Rudy primarily of
managers. They propose a multivariate model to explain the complex relationship that
exists between job attitudes and job performance. Their model encounters some of the
simplistic traditional assumptions made about the positive relationship between
satisfaction and performance. Porter and Lawler explain their choice for the expectancy
approach as under:
"The emphasis in expectancy theory on rationality and expectations seems to us to
describe best the kinds of cognitions that influence managerial performance. We assume
that managers operate on the basis of some sort of expectancies which, although based
upon previous experience, are forward-oriented in a way that does not seem to be as easily
handled by the concept of habit strength."
The various elements of this model are presented in the following figure : Effort: Effort
refers to the amount of energy exerted by an employee on a given task. Perceived reward
probability refers to the individual's perception of the probability that differential rewards
depend upon differential amounts of effort. These two factors—value of reward and
perception of effort-reward probability—determine the amount of effort that the employee
will put in.
Performance : Effort leads to performance but both of these may not be equal, rather,
performance is determined by the amount of effort and the ability and role perception of
the individual. Thus, if an individual has little ability and/or inaccurate role perception, his
performance may be ineffective in spite of his putting in great efforts.
complex relationship that exists between job attitudes and job performance. Their model
encounters some of the simplistic traditional assumptions made about the positive
relationship between satisfaction and performance. Porter and Lawler explain their choice
for the expectancy approach as under:
"The emphasis in expectancy theory on rationality and expectations seems to us to
describe best the kinds of cognitions that influence managerial performance. We assume
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that managers operate on the basis of some sort of expectancies which, although based
upon previous experience, are forward-oriented in a way that does not seem to be as easily
handled by the concept of habit strength."
The various elements of this model are presented in the following figure : Effort: Effort
refers to the amount of energy exerted by an employee on a given task. Perceived reward
probability refers to the individual's perception of the probability that differential rewards
depend upon differential amounts of effort. These two factors—value of reward and
perception of effort-reward probability—determine the amount of effort that the employee
will put in.
Performance : Effort leads to performance but both of these may not be equal, rather,
performance is determined by the amount of effort and the ability and role perception of
the individual. Thus, if an individual has little ability and/or inaccurate role perception, his
performance may be ineffective in spite of his putting in great efforts.
Value of reward
Ability and traits
Effort
Perceived equitable rewards
Performance accomplishment I
Intrinsic rewards
Perceived effortreward rewards probability
Role perception
Extrinsic rewards
Satisfaction
Fig. : Porter-Lawler motivation model
Rewards : Performance is seen as leading to intrinsic rewards (such as a sense of
accomplishment and actualisation) and extrinsic rewards (such as working conditions and
status). However, the intrinsic rewards are much more likely to produce attitudes about
satisfaction that are related to performance. In addition, the perceived equitable rewards
vitally affect the performance-satisfaction relationship. They reflect the fair level of
rewards that the individual feels should be given for a given level of performance.
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Satisfaction : Satisfaction is derived from the extent to which actual rewards fall short,
meet or exceed the individual's perceived level of equitable rewards. If actual rewards
meet or exceed perceived equitable rewards, the individual will feel satisfied; if these are
less than equitable rewards, he will be dissatisfied. Thus, this provides two implications.
First, satisfaction is only in part determined by actual rewards. Second, satisfaction is
more dependent on performance than performance is on satisfaction. Only through the
less-direct feedback loops, satisfaction will affect performance. This is a marked departure
from the traditional analysis of the satisfaction-performance relationship.
Implications of the Theory
Based on the results of the study, Porter and Lawler point out that 'those variables
presumed to affect performance turned out to show relations to performance, and those
variables presumed to result from performance also vpically were related to performance*.
After the review of related research studies, they conclude that 'over all, the evidence on
the relationship between expectancy attitudes, importance attitudes, and performance
provides rather an impressive support for our model. The model, although more complex
than ether models of motivation, explains fully the different variables underlying in
motivation. In practice too, motivation is not a simple cause-effect relationship rather it is
a complex phenomenon. The model suggests that managers should carefully assess their
reward structures and that through careful planning and dear definition of role
requirements, the effort-performance-reward-satisfaction
tem should be integrated into an entire system of managing.
Equity Theory
Equity theory of work motivation is based on the social exchange process. This theory has
been around Just as long as the expectancy theories of motiva-:i. However, Adams has
crystallised it in a more formal way. Basically, the theory points out that people are
motivated to maintain fair relationship between their performance and reward in compa.
jon to others. There are two issumptions on which the theory works :
1. Individuals make contributions (inputs) for which they expect certain rewards
(outcomes).
2. Individuals decide whether or not, a particular exchange is satisfactory, by comparing
their inputs and outcomes with those of others and try to rectify my inequality.
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Various types of inputs and outcomes of an individual are presented in fiUowing table:
Table : Various types of inputs and outcomes
Inputs Outcomes
Efforts Pay
Time Promotion
Education Recognition
Experience Security
Training Personal development
Ideas Benefits
Ability Friendship opportunity
Exchange relationship between a person's inputs/outcomes in relation to those of other
persons may be of three types : overpaid inequity, underpaid inequity, and equity.
Overpaid Inequity—In this case, the person perceives that his outcomes sre more as
compared to his inputs in relation to others. This relationship can ae expressed by:
Person's outcomes Others' outcomes Person's inputs Others' inputs
In this case, the person experiences guilt feeling.
Underpaid Inequity : In this case, the person perceives that his outcomes are lower as
compared to his inputs in relation to others. This relationship can be expressed as :
Person's outcomes Others' outcomes -
Person's inputs Others' inputs
In such a relationship, the person experiences dissonance. Equity : In this case, the person
perceives that his outcomes in relation to his inputs are equal to those of others. This
relationship can be expressed by :
Person's outcomes Others' outcomes Person's inputs Others' inputs
In this case, the person experiences satisfaction. The impact of inequity on the person is as
follows :
1. Perceived inequity creates tension in the person.
2. The amount of tension is proportional to the magnitude of inequity.
3. The tension created in the person will motivate him to reduce it.
4. The strength of the motivation to reduce inequity is proportional to the perceived
inequity.
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Re-establishing Equity
As, pointed out above, inequity creates tension in the mind of the person, therefore, he
tries to re-establish equity between his inputs and outcomes. He can do this in a number of
ways :
1. Changing his Inputs: The person may change his inputs to match his outcomes by
lowering his inputs (in the case of underpaid inequity) or by increasing his inputs (in the
case of overpaid inequity). Thus, he may either put lesser amount of work efforts or may
work harder, as the case may be.
2. Changing his Outcomes : The person may attempt to change his outcomes by
persuading pressurising those who are responsible for the decision of outcomes.
3. Changing Perception about Inputs and Outcomes : Since measurement of inputs and
outcomes is a matter of perception, the person may reestablish equity between his inputs
and outcomes by changing his perception.
4. Changing Inputs and Outcomes of Others : The person may try to re-establish equity by
persuading the other persons to change their inputs, or by changing his perception about
the inputs/outcomes relationships of others.
5. Changing the Persons Compared : In comparing with the particular person/s'
inputs/outcomes, if relationship produces inequity, the person may change the person/s
and may replace by someone whose inputs/outcomes relationship produces equity.
6. Leaving the Situation : If the person is not able to re-establish equity by the methods
described above, he may try to change the situation in which he perceives inequity. He
may opt for transfer to another department or location in the same organisation or may
leave the organisation.
Implications of the Equity Theory
Equity theory has a number of implications for managers. First, the theory makes
managers realise that equity motive tends to be one of the most important motives of the
people in the organisation. Therefore, equity concept should be given adequate
considerations in designing motivation system. "Equal pay for equal work" principle is
based on this theory. Second, feelings or perceptions in equity are important factor in work
setting. Therefore, management should take this aspect into consideration and attempt
should be made to develop the perceptual skills of the people.
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However, there are some practical difficulties in applying equity theory due to many
qualitative and cognitive factors involved. First, it is difficult to assess the perception (or
misperception) of people about inputs/outcomes relationships. Second, equity is a matter
of comparison. The relevant question in this context is : "how does a person choose the
comparison person ?" The process by which the person decides whom to compare himself
with is not clearly understood as yet. Notwithstanding, the concept of equity has its
relevance in motivation which has been recognised both in theory and practice. Carrot and
Stick Approach of Motivation
Carrot and stick approach of motivation is based on the 'Principles of reinforcement.' The
carrot and stick approach of motivation comes from the old story that the best way to
make a donkey move is to put a carrot in front of him or jab him with a stick from behind.
The carrot is the reward for moving and the stick is the punishment for not moving. The
carrot and stick approach of motivation takes the same view. In motivating peop' ror
behaviour that is desirable, some carrots, rewards, are used such as money, promotion, and
other financial and non-financial factors; some sticks, punishments, are used to push the
people for desired behaviour or to refrain from undesired behaviour. The punishment may
be defined as presenting an aversive or noxious consequence contingent upon a behaviour.
Though in various theories of motivation, the terms carrot and stick are avoided, these still
form the basis of motivation if administered properly. The organisation requires certain
controls and influences over its external and internal environments. The control of internal
environment is largely a mechanism of influencing the behaviour of organisational
members in certain direction to achieve its objectives. This can be explained in overt or
implied reward and punishment system. Organisations build reward and punishment
system in their formal structure, though many of the factors cannot be provided by
structure alone; for example, the social prestige of a member in the informal groups.
Further, many of the reward and punishment factors, particularly the latter, may not
necessarily be within the control of the organisation which are affected by external
environment, for example, dismissal of an employee for bad performance.
The role of carrots has been adequately explained by various theories of motivation when
these analyse what people want to get from their performance, that is, the positive aspect
of behaviour and its rewards. Such rewards may be both financial and nonfinancial, as
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discussed later in the next chapter. The stick also pushes people to engage in positive
behaviour or overcoming negative behaviour, though its role is not as forceful as the role
of carrot in getting positive behaviour in most of the cases. The basic reason for this
phenomenon is that stick is not controlled by the organisation alone but many other forces
also come in the picture. In order to make the stick work more effectively, following
points should be taken into consideration while using it:
1. Stick is effective in modifying the behaviour if it forces the person to select a desirable
alternative behaviour that is then rewarded.
2. If the above does not occur, the behaviour will be only temporarily suppressed and will
reappear when the stick is removed. Furthermore, the suppressed behaviour may cause the
person to be fearful and anxious.
3. Stick is more effective if applied at the time when the undesirable behaviour is actually
performed.
4. Stick must be administered with extreme care so that it does not become carrot for
undesirable behaviour. A stick, from one point of view, may become a carrot for the
person concerned.
The mixture of both carrot and stick should be used judiciously so that both have positive
effects on the motivational profile of the people in the organisation.
Mcgregor's Theory X and Theory T
The management's action of motivating human beings in the organisation, according to
McGregor, involves certain assumptions, generalisations, and hypotheses relating to
human behaviour and human nature. These assumptions may be neither consciously
crystallised nor overfly stated; however, these serve the purpose of predicting human
behaviour. The basic assumptions about human behaviour may differ considerably
because of the complexity of factors influencing this behaviour. McGregor has
characterised these assumptions in two opposite points-Theory X and Theory Y.
Theory X-This is the traditional theory of human behaviour. In this 'theory, McGregor has
made certain assumptions about human behaviour. In his own words, these assumptions
are as follows :
1. Management is responsible for organising the elements of productive enterprises—
money, meterials, equipment people—in the interest of economic ends.
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2. With respect to people, this is a process of directing their efforts, motivating them,
controlling their actions, modifying their behaviour to fit the needs of the organisation.
3. Without this active intervention by management, people would be passive—even
resistant—to organisational needs. They must be persuaded, rewarded, punished,
controlled, and their activities must be directed. This is management's task. We often sum
it up by saying that management consists of getting things done through other people.
4. The average man is by nature indolent—he works as little as possible.
5. He lacks ambition, dislikes responsibility, prefers to be led.
6. He is inherently self-centered, indifferent to organisational needs.
7. He is, by nature, resistant to change.
8. He is gullible, not very bright, the ready dupe or charlatan and the demagogue.
Of these assumptions, last five deal with the human nature and first three with managerial
actions. These assumptions about human nature are negative in their approach, however,
much organisational processes have developed on these assumptions. Managers
subscribing to these views about human nature attempt to structure, control, and closely
supervise their employees. They feel that external control is most appropriate for dealing
with irresponsible and immature employees. McGregor believes that these assumptions
about human nature have not changed drastically though there is a considerable change in
behavioural pattern. He argues that this change is not because of changes in the human
nature, but because of nature of industrial organisation, management philosophy, policy,
and practice.
Theory Y: The assumptions of Theory Y are described by McGregor in the following
words :
1. The expenditure of physical and mental effort in work is natural as play or rest. The
average human being does not inherently dislike work. Depending upon controllable
conditions, work maybe a source of satisfaction or a source of punishment.
2. External control and the threat of punishment are not the only means for bringing about
effort towards organisational objectives. Man will exercise self-direction and self-control
in the service of objectives to which he is committed.
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3. Commitment to objectives is a function of the reward associated with their achievement.
The most significant of such rewards, e.g. the satisfaction of ego and self-actualisation
needs, can be a direct product of effort directed towards organisational objectives.
4. The average human being learns under proper conditions not only to accept, but to seek
responsibility. Avoidance of responsibility, lack of ambition, and emphasis on security are
generally consequences of experience, not inherent human characteristics.
5. The capacity to exercise a relatively high degree of imagination, ingenuity, and
creativity in the solution of organisational problems is widely, not narrowly, distributed in
the population.
6. Under the conditions of modern industrial life, the intellectual potentialities of the
average human beings are only partially utilised.
The assumptions of Theory Y suggests a new approach in management. It emphasises on
the cooperative endeavour of management and employees. The attempt is to get maximum
output with minimum amount of control and direction. Generally, no conflict is visible
between organisational goals and individual goals. Thus, the attempts of employees which
are in their best interests are also in the interests of organisation. Comparison of Theories
X and Y
Both theories have certain assumptions about human nature. In fact, they are reverse sides
of a coin, one representing head and the other representing tail. Thus, these assumptions
seem to be mutually exclusive. The diference between two sets of assumptions can be
visualised as follows :
1. Theory X assumes human beings to be inherently distasteful towards work. Theory Y
assumes that for human beings, work is as natural as play.
2. Theory X emphasises that people do not have ambitions and try to avoid responsibilities
in jobs. The assumptions under Theory Y are just the reverse.
3. According to Theory X, most people have little capacity for creativity while according
to Theory Y, the capacity for creativity is widely distributed in the population.
4. In Theory X, motivating factors are the lower needs. In Theory Y, higher-order needs
are more important for motivation, though unsatisfied lower needs are also important.
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5. In Theory X, people lack self-motivation and require to be externally controlled and
closely supervised to get maximum output from them. In Theory Y, people are selfdirected
and creative and prefer self-control.
6. Theory X emphasises scalar chain system and centralisation of authority in the
organisation while Theory Y emphasises decentralisation and greater participation in the
decision-making process.
7. Theory X emphasises autocratic leadership; Theory Y emphasises democratic and
supportive leadership.
Implications of Theories X and Y
McGregor's assumptions in terms of Theory X and Theory Y are based on Maslow's need
hierarchy model. In the beginning, when the concept of'economic man' was accepted,
some writers emphasised only on the satisfaction of physiological and safety needs. These
were the basic constituents of the motivation model. However, because of changes in the
value systems and social systems, higher-order needs were emphasised for human beings
and these needs mostly replaced lower-order needs as constituents of motivation model.
Similarly, assumptions under Theory X are being replaced by assumptions under Theory
Y. This is being reflected in the managerial styles and techniques. Today, we emphasise
management by objectives, management by integration and self-control, supportive
management decentralisation, job enrichment, etc. These techniques are applicable in the
organisations where self-motivated, self-controlled, mature, and responsible people work.
McGregor believes that recent researches in the behavioural sciences have shown that the
assumptions of what he calls Theory Y may be more valid than the precepts of Theory X.
The major implications of Theories X and Y may be seen in the management processes. It
may be mentioned that these processes are not based on any conclusive proof of research
studies but present a conjectural view based on assumptions of theories X and Y.
Table : Management processes with theories X and Y
Management Activities
1. Planning
2. Directing
Theory X
Superiors sets objectives for subordinates.
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Little participation in objective setting and plan formulation.
Few alternatives are explored.
Low commitment to objectives and plans. Autocratic leadership based on authority.
Top-down communication with little feedback.
Theory Y
Superior and subordinate set objectives jointly. Great deal of participation in objective
setting and plan formulation.
Many alternatives are explored.
High commitment to objectives and plans.
Participation and teamwork leadership based on competence.
Two-say communication with plenty of feedback
Limited information flow. Free information flow.
3. Appraising Low trust in appraisal. High trust in appraisal.
and control- Control is extreme and Internal control based on self-
ling rigid. control.
Focus on past and fault Based on past but forward
look-
finding. ing and problem solving.
Thus, it can be seen that management assumptions about the nature of human beings are
very critical in determining the management processes including motivation.
Table : Comparison between Theory X and Theory Y
Theory X
Theory Y
1. Inherent dislike for work.
2. Unambitious and prefer to be directed by others.
3. Avoid responsibility.
4. Lack creativity and resist change.
5. Focus onlower-level (physiological and safety) needs to motivate workers.
6. External control and close supervision required to achieve organisational objectives.
7. Centralisation of authority and autocratic leadership.
8. People lack self-motivation.
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Work is natural like rest or play. Ambitious and capable of directing their own behaviour.
Accept and seek responsibility under proper conditions. Creativity widely spread. Both
lower-level and higher-order needs like social, esteem and self-actualisation are sources of
motivation. Self-direction and self-control.
Decentralisation and participation in decision-making. Democratic leadership.
People are self-motivated.
Critical Appraisal
McGregor's theory of motivation is simple. It helped to crystallise and put into right
perspective the findings of the Hawthorne Experiments. It has generated wide ranging and
lasting interest in the field of motivation. This theory offers a convenient framework for
analysing the relationship between motivation and leadership style. Despite its
significance, McGregor's theory has been criticised for various reasons. First, it tends to
over-generalise and oversimplify people as being one way or the other. People cannot be
put into two extreme patterns or stereotypes. The theory overlooks the complex nature of
human beings. No enterprising man may belong exclusively either to Theory X or to
Theory Y. He may share the traits of both, with emphasis shifting from one set of
properties to the other with changing motives (internal), and varying (external)
environment. Secondly, McGregor's theory squeezes all managerial styles and
philosophies into two extremes of conduct which is devoid of reality. Thirdly, McGregor
suggests tacitly that job itself is the key to motivation. But all persons do not look for
motivation in the job and not all work can be made intrinsically challenging and
rewarding. Lastly, some managers may have Theory Y assumptions about human nature,
but they may find it necessary to behave in a very directive and controlling manner with
some people in the short run to help them grow up in a developmental sense until they are
truly Y people.
A question often posed is which theory (X or Y) is better. Most people believe that Theory
Y is more desirable and productive. But it may not be the best approach for all situations.
Theory X might be more suitable in some crisis situations but less appropriate in more
routine and formalised situations. In some under-developed countries like India Theory X
may still be useful at the lower levels of organisation. Neither Theory X nor Theory Y is
the best for all situations. An amalgam of both the theories may be more useful than either
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of the two alone. The best approach to motivation is one that is appropriate to the
situation. The appropriate theory is contingent upon the nature of the work to be done and
the particular needs of the individual. In other words, contingency approach is the best
approach to motivation.
McGregor's theory is an improvement over the traditional view that you can motivate
employees by paying them more money. Ouchi's Theory Z
William Ouchi developed Theory Z after making a comparative study of Japanese and
American management practices. Theory Z is an integrated model of motivation. Theory Z
suggests that large complex organisations are human systems and their effectiveness
depends on the quality of humanism used. A type Z organisation has three major features-
trust, subtlety and intimacy. Mutual trust between members of an organisation reduces
conflict and leads to team work. Subtlety requires sensitivity towards others and yields
higher productivity. Intimacy implies concern, support and disciplined unselfishness.
The distinguishing features of Theory Z are as follows :
1. Mutual Trust: According to Ouchi, trust, integrity and openness are essential ingredients
of an effective organisation. When trust and openness exist between employees, work
groups, union and management, conflict is reduced to the minimum and employees
cooperate fully to achieve the organisation's objectives.
2. Strong Bond between Organisation and Employees : Several methods can be used to
establish a strong bond between the enterprise and its employees. Employees may be
granted lifetime employment which leads to loyalty towards the enterprise. During adverse
business conditions shareholders may forgo dividends to avoid retrenchment of workers.
Promotions may be slowed down.
As against vertical movement of employees greater emphasis should be placed on
horizontal movement which reduces stagnation. A career planning for employees should
be done so that every employee is properly placed. This would result in a more stable and
conducive work environment.
3. Employee Involvement : Theory Z suggests that involvement of employees in related
matters improves their commitment and performance. Involvement implies meaningful
participation of employees in the decisionmaking process, particularly in matters directly
affecting them. Such participation generates a sense of responsibility and increases
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enthusiasm in the implementation of decisions. Top managers serve as facilitators rather
than decision-makers.
4. Integrated Organisation : Under Theory Z, focus is on sharing of information and
resources rather than on chart, divisions or any formal structure. An integrated
organisation puts emphasis on job rotation which improves understanding about
interdependence of tasks. Such understanding leads to group spirit.
5. Coordination : The leader's role should be to coordinate the efforts of human beings. In
order to develop common culture and class feeling in the organisation, the leader must use
the processes of communication, debate and analysis.
6. Informal Control System : Organisational control system should be made informal.
For this purpose emphasis should be on mutual trust and cooperation rather than on
superior-subordinate relationships.
7. Human Resource Development: Managers should develop new skills among
employees. Under Theory Z, potential of every person is recognized and attempts are
made to develop and utilise it through job enlargement, career planning, training, etc.
Thus, Theory Z is a hybrid system which incorporates the strengths of American
management (individual freedom, risk taking, quick decision-making, etc.) and Japanese
management (job security, group decision-making, social cohesion, holistic concern for
emplyees, etc.) systems. Japanese companies operating in the United States have
successfully used Theory Z. After collaboration between Japanese and Indian companies,
some experts have suggested application of this theory in India. In Maruti Udyog, which
has collaboration with Suzuki motors of Japan an attempt has been made to apply Theory
Z. The workplace has been designed on the Japanese pattern, which involves open offices.
The same uniform has been introduced for all employees irrespective of their designation.
Similarly, there is a common canteen for all. These practices are expected to avoid status
differentials and class feeling among employees and thereby facilitate teamwork in the
company.
Evaluation of Theory Z
Theory Z suffers from the following limitations :
(i) Provision of lifetime employment to employees to develop a strong bond between
organisation and employees may fail to motivate employees with higher level needs. It
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merely provides job security and may fail to develop loyalty among employees. An
employee may leave the organisation when better employment opportunities are offered to
him by some other enterprise. Moreover, complete security of job may create lethargy
among many employees. Employers also do not like to retain inefficient employees
permanently.
(ii) Participation of employees in the decision-making process is very difficult. Managers
may dislike participation as it may hurt their ego and freedom. Employees may be
reluctant to participate due to fear of criticism and lack of motivation. Even if they sit
along with management they may contribute little unless they understand the issues and
take initiative. Involvement of all employees may also slow down the decisionmaking
process.
(iii) Theory Z suggests organisation without any structure. But without structure there may
be chaos in the organisation as nobody will know who is responsible to whom.
(iv) It may not be possible to develop a common culture in the organisation because
people differ in their attitudes, habits, languages, religions, customs, etc.
(v) Thory Z is based on Japanese management practices. These practices have been
evolved from Japan's unique culture. Therefore, the theory may not be applicable in
different cultures.
Thus Theory Z does not provide complete solution to motivational problems of all
organisations operating under different types of environment. However, it is not merely a
theory of motivation but a philosophy of managing. Contingency Approach of Motivation
The appraisal of various theories of motivation and resultant motivational strategies
suggested by these fail to provide any concerete result as to how a manager can be sure
about the way he can motivate people in the organisation. The various theories suggest
that there is, no universal device applicable to everyone. What motivates people is
situational. This is the basic theme of contingency approach of motivation. This shows the
complexity of human behaviour and consequently the inability to predict his behaviour.
Since individuals differ, it is not possible to motivate them by a single method. Thus,
universality of motivational strategy is out of question. However, it does not not mean that
various theories do not offer any help. In fact, the contingency approach is derived out of
these theories which merely suggests that in motivating people, all the contextual variables
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must be specified and their inter-relationship should be established. When this is done, it
may be easy to find out what the motivational strategy would be.
Contingency approach emphasises on linking between micromotivation and
macromotivation. Micromotivation operates at the level of individual firms while
Macromotivation operates at the broad social level. Thus, what is a motivating factor in
one society may not be as effective in another society. Since individuals who join an
organisation, do not bring merely their skills and competence but also their attitudes and
values conditioned by their families, ethnic groups, and other socio-cultural variables, they
should be taken as a whole while designing strategy for motivating them. Thus,
contingency approach emphasises on the analysis of individual and organisational
variables which are as follows :
1. Since individuals differ in terms of their personality, ability, attitudes, and values, their
need patterns also differ. The analysis of individuals provides clue about the factors which
motivate them.
2. An individual's needs are determined by his initial needs derived from his sociocultural
background as well as the needs which he develops through the interaction with the
organisation. Therefore, the individual organisation can modify the need patterns of
individuals within the overall macromotivational context.
Elements of Sound Motivation System
According to contingency approach, a sound motivation system is one which takes into
account both individual and organisational variables. Thus, the motivation system should
be based on the following principles :
1. Adequate Motivation: The motivation system should be adequate covering the entire
workforce in the organisation and it should also cover entire activities of the workforce.
Sometimes, the presence of a motivational factor fails to produce any effective result,
particularly when its amount is too small. In such a case, its energetic force should be
increased so that it motivates strongly.
2. Analysis of Motives : A good motivation system also attempts at analysing the factors
which motivate the employees in the prevailing organistional environment. Study of the
various needs of the employees, degree of intensity and the prospective consequences of
satisfying them, or continuing them dissatisfied, on output should be conducted.
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3. Simplicity in Motivation System : The system should be simple both in terms of its
understanding by the employees and its applicability in the organisation. Employees'
efforts are directed to the goal only when they perceive that a particular goal exists and
this requires a particular type of effort. The system should be simple to be adopted by the
organisation at various levels.
4. Uneven Motivation : In an organisation, all the employees are not of same type. They
differ in education, attitude, ambition, etc. Thus, more educated, ambitious persons can be
motivated up to very high level, while others cannot be motivated to that extent. If such
employees are motivated beyond a certain limit, this may create frustration in them as over
loaded goals create-frustration.
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9 INTERPERSONAL BEHAVIOUR
[TRANSACTIONAL ANALYSIS AND JOHARI WINDOW]
Introduction
The study of human behaviour is a very complex and complicated concept. It is affected,
by the psychological factors such as perception, learning, personality and motivation. In
addition to these factors, individual behaviour affects and is affected by the behaviour of
others. One of the major problems in the study of organisational behaviour is to analyse
and improve, the Interpersonal relationships. One basic approach to study interpersonal
relations in an organisational system is Transactional Analysis. This analysis deals with
understanding, predicting and controlling interpersonal relationships. TRANSACTIONAL
ANALYSIS
When people interact in organisations, there is a social transaction in which one person
responds to another. ERIC BERNE is usually credited with starting the transactional
movement for psychotherapy in the 1950s. He observed in his patients that often it was as
if several different people were inside each person. He also observed that these various
selves transmitted with people in different way.
In the words of Eric Berne, The unit of social intercourse is called a transaction. If two or
more people encounter each other in a social aggregation, sooner or later one of them will
speak or give some other indication of acknowleding the presence of the other. This is
called the transactional stimulus. Another person will then say or do something which is in
some way related to this stimulus and that is called the transactional response."
A few definitions of transactional analysis are as given below : Transactional analysis
(TA) is a technique used to help people better understand their own and other's behaviour,
especially in interpersonal relationships."
TA refers to a method of analysing and understanding interpersonal behaviour. TA offers
a model of personality and the dynamics of self and its relationship to others that makes
possible a clear and meaningful discussion of behaviour."
After Eric Berne, this concept was made popular by Thomas A. Harris, Munel James and
Dorothy Jongeward and Abe Wagner. In later years Jongeward
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and Wagner have shown how the concepts of TA can be applied to organisations for
analysing interpersonal communication and related to the work of other theories such as
Douglas McGregor and Rensis Likert. TA is primarily concerned with the following:
(I) Analysis of Self Awareness
(II) Analysis of Ego states
(III) Analysis of Transactions
(IV) Script analysis
(V) Games analysis
(VI) Analysis of life positions
(VII) Stroking
(I) Analysis of Self Awareness
The interpersonal relationships are composed of interself. Self is the core of personality
pattern which provides integration. The dyad relationship can be studied properly if a
person can perceive his own behavioural style and at the same time how it is perceived by
others. Self awareness is a cognitive concept, it describes the self in terms of image, both
conscious and unconscious. Joseph Luft and Harrington Ingham have developed a
diagram to look at one's personality including behaviours and attitudes that can be known
and unknown to self and known and unknown to others. They named this diagram the
Johari window. This Johari window comprising of four quadrants is shown in the
following diagram.
1. The Open Self: The open quadrant refers to the behaviours, feelings and motivations of
an individual which are known to self and also known to others in any specific
organisational setting. Some individuals are straight forward, open and sharing. He
himself is very clear about what he is doing, what he is feeling and what his motivations
are. Similarly others are also very clear about his actions, feelings and motivations. In such
type of interpersonal relationship, chances of conflict, if any, will be very little.
2. The Blind Self: The blind self quadrant is unkown to self but known to others. Other
people know what is happening to a person, but he himself is unaware of it. Very often
such blind behaviour is copied by individuals from certain significant people
unconsciously right since the childhood. Since such a behaviour is copied unconsciously,
people may not be aware of it. Another reason
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for this unawareness is that other people are not willing to be open and do not give
relevant feed back to the person concerned. Even if there is a verbal or nonverbal response
in the system, the individual may not be in a position to perceive it. There are chances of
interpersonal conflict in this situation.
JONGEWARD AND SEYER observe that, "Subtle bars to our personal effectiveness are
often our blind quadrant. We may speak in a certain way with a tone of voice, a look on
our face-a gesture-that we are blind to, but other people are actuely aware of it. In fact, our
manner can affect how they perceive us and they believe they can interact with us."
3. The Hidden Self: The hidden self is the quadrant which is known to self but not known
to others. This is a very private and personal window because only the person concerned
knows what is happening. The individual is aware about the hidden self but does not want
to share it with others, people learn to hide their feelings and ideas right from the
childhood. Other people in the system are unable to perceive the veirbal and non-verbal
behaviour of the person in quadrant. Like blind self, chances of interpersonal conflict are
there in this situation.
4. The Unknown Self: This quadrant is unknown to self and unknown to others. The
unknown self is mysterious in nature. Sometimes feelings and motivation go so deep that
no one including the person concerned knows about them. In Freudian Psychology, this
would be called the subconscious or unconscious. Many times only a small portion of
motivation is clearly visible or conscious to oneself. People experience unknown parts of
life in dreams or deep rooted fears or compulsions. In such situations, there is much
misunderstanding and interpersonal conflict is almost sure to result.
Principles of Change in Awareness : The awareness about self keeps on changing
continuously. As the awareness changes, the quadrant to which the psychological state is
assigned also changes.
According to Jongeward, there are eleven principles of such change :
1. Any change in one quadrant will affect the other quadrants also.
2. It takes energy to hide, deny or be blind to behaviour which is involved in interaction.
3. Threat tends to decreased awareness, mutual trust tends to increased awareness.
4. Forced awareness is undesirable and usually ineffective.
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5. Interpersonal learning means that a change has taken place so that one quardrant is
larger and any one of the other quadrants has grown smaller.
6. Working with others is facilitated by a large enough area of free activity. It means more
of the resources and skill of the persons involved can be applied to the task at hand.
7. The smaller the first quadrant, poorer will be the communication.
8. There is universal curiosity about the hidden area, but this is held in check by custom,
social training and diverse fears.
9. Sensitivity means appreciating the covert aspects of behaviour in quadrants 2,3 and 4
and respecting the desire of others to keep them so.
10. Learning about group processes, as they are being experienced helps to increase
awareness (enlarging quadrant) for the group as a whole as well as for individual
members.
11. The value system of a group and its members may be observed in the way the group
deals with unknowns in the life of the group and of self.
The process that affects the shape of the Johari window is the feedback. This is the extent
to which others are willing to share with the person on how he or she is coming across. It
is also the extent to which the person is able to perceive the verbal and non verbal
feedback in the organisational setting. Another important factor that affects the Johari
window is the disclosure. This is the extent to which the persons are willing to share with
the others the data that exist in their organisational system. The NATIONAL TRAINING
LABORATORY suggests the following guidelines for providing feedback for effective
interpersonal relations :
1. Be descriptive rather than judgemental.
2. Be specific rather than general.
3. Deal with things that can be changed.
4. Give feedback when it is desired.
5. Consider the motives for giving and receiving feedback.
6. Give feedback at the time the behaviour takes place.
7. Give feedback when its accuracy can be checked with others. II. Analysis of Ego States
The ego plays an important role in human behaviour. "An ego state is a pattern of
behaviour that a person develops as he or she grows, based on his or her accumulated
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network of feelings and experiences." People interact with each other in terms of
psychological positions or behavioural patterns known as ego states. Ego states are
person's way of thinking, feeling and behaving at anytime.
Sigmund Freud was the first to believe that there are three sources within human
personality that stimulate, monitor and control behaviour. TA uses Freudian
psychoanalytic theory as background for identifying three important ego states; child,
adult and parent. These three ego states have nothing to do with the chronological age of
the persons, they are related only with psychological age. A person of any age can have
these ego states in varying degrees.
BERNE states that "although we cannot directly observe these ego states, we can observe
behaviour and from this infer which of the three ego states are operating at that moment."
A healthy person is able to move from one ego state to another. Further, these three ego
states are not like Freud's Id, ego and super ego. They are based on real world behaviour.
These three ego states are shown in the following figure :
1. Parent Ego: The parent ego state means that the values, attitudes and behaviours of
parents become an integral part of the personality of an individual. By parents, we do not
mean, the natural parents but all those emotionally significant people like elder brothers,
and sisters, school teachers, elder relatives or friends, who served as parent figure when an
individual was a child. The attitudes, behaviours, values and habits of these people are
recorded in the mind of the individual and these become the basis of this personality. The
characteristics of a person with parent ego are :
(i) Judgemental
(ii) Value laden
(iii) Rule maker
(iv) Moralising
(v) Over protective
(vi) Distant
(vii) Dogmatic
(viii) Indispensable
(ix) Upright
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Parent ego is expressed by giving advice, admonitions, do's and don'ts, showing
displeasure, reliance on the ways which were successful in the past etc. These people tend
to talk down to people and treat others like children.
There are two types of parent ego states :
(i) Nurturing Parent Ego: Nurturing parent ego state reflects sympathetic, protective and
nurturing behaviour not only towards children but also to other people in interaction.
(ii) Critical Parent Ego : Critical parent ego state shows critical and evaluative behaviour
in interaction with others. This ego state attacks people's personalities as well as their
behaviour. They are always ready to respond with a should or ought to almost anything
people tell them. Each individual has his unequal parent ego state which is likely to be a
mixture of helpfulness (Nurturing state ego) and hurtfulness (Critical ego state).
People with parent ego state have more choice over their actions.
2. Adult Ego: The adult ego state is authentic, direct, reality based, rational, fact seeking
and problem solving. People interacting with adult ego, do not act impulsively or in a
domineering style. They assume human beings as equal, worthy and responsible. The
process of adult ego state formation goes through one's own experiences and continuously
updating parental prejudices or attitudes left over from childhood. Though certain values
which are formed in the childhood are rarely erased, an individual at the later stage of the
life may block his child and parent ego states and use his adult ego only based on his
experiences. He updates the parent data to determine what is valid and what is not.
Similarly, he updates the child data to determine which feelings should be expressed.
Thus, people, with adult ego state, gather relevant information, carefully analyse it,
generate alternatives and make logical choices. This ego state can be indentified by verbal
and physical signs which includes thoughtful concentration and factual discussion.
3. Child Ego: The chid ego state is the inner world of feelings, experiences and
adaptations. In each case, the child ego is characterised by very immature behaviour. The
characteristics of child ego state are :
(i) Creativity
(ii) Conformity
(iii) Anxiety
(iv) Depression
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(v) Dependence
(vi) Fear
(vii) Joy
(viii) Emotional Sentimental
(ix) submissive
(x) Insubordinate and rebellious
Physical and verbal clues that a person is acting in the child ego are silent compliance,
attention seeking, temper tantrums, giggling and coyness. Child ego state reflects early
childhood conditions and experiences perceived by individuals in their early years of life
that is upto the age of 5 years. There are several forms of the child ego states are :
(i) Natural Child : The natural child is affectionate, impulsive, sensuous, uncensored and
curious. Nevertheless, he is also fearful, self indulgent, self centred, rebellious and
aggressive and may emerge in many unpleasant roles.
(ii) The Little Professor : The little professor is intuitive, creative and manipulative. He
responds to non-verbal messages and play hunches. He can figure things out and believes
in magic. People who express their creativity purposefully use their little professor in
conjunction with their adult ego state.
(iii) The Adaptive Child : The adaptive child is the trained one and he is likely to do what
parents insist on and sometimes learn to feel non O. K. The adapted child when overtly
inhibited, often becomes the troubled part of the personality.
Each person may respond to specific situations in quite distinct ways from each ego state.
ABE WAGNER is of the opinion that a healthy person has a personality that maintains a
balance among all three. However, practically speaking, it would be difficult. If not
impossible, to maintain a balance among all the three ego states. An ego state from which
a person behaves would depend upon, to a extent, to situation in which an individual
operate at that particular moment. Sometimes, these ego states harmonise, sometimes they
are in conflict. Some people respond with one ego state more than they do with other ego
states, in. Analysis of Transactions
A transaction is a basic unit of social interaction. The heart of transactional analysis is the
study and diagramming of the exchanges between two persons. Thus, where a verbhal or
non verbal stimulus from one person is being responded by another person, a transaction
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occurs. T. A. can help us to determine which ego state is most heavily influencing our
behaviour and the behaviour of the other people with whom we interact. Depending on the
ego states of the persons involved in transactions, there may be three types of transactions:
(i) Complementary transactions.
(ii) Crossed transactions.
(iii) Ulterior transactions.
(i) Complementary Transactions: Complementary transactions are those where the ego
states of the sender and the receiver in the opening transaction are simply reversed in the
response. In these transactions stimulus and response patterns from one ego state to
another are parallel. The message by one person gets the predicted response from the other
person. There can be nine complementary transactions:
1. Adult-Adult Transactions : In these transactions, the manager and his subordinate
interact with each other from adult-adult ego. This is an ideal transaction. Complementary
transactions in these ego states are psychologically mature and effective because both the
boss and the subordinate are acting in a rational manner. Both are attempting to
concentrate on problems, developing alternatives and trying to choose the best possible
alternative to solve the problem. Adult-Adult transaction is presented in the following
figure:
However, there are some inherent problems in this transaction. At times, these transactions
may prevent reaching any decisions because of rational data processing procedure and a
deadline may emerge. Moreover, the absence of child ego state may make the transactions
dull due to the lack of stimulation a child can provide. In such situations, the boss may
move to the parent ego state to take a decision to solve the problems. Inspite of these
problems, this type of transaction is generally considered best from the organisational
point of view.
2. Adult-Parent Transaction: In adult parent transaction, the manager has the adult ego and
he attempts to use the information he himself has processed. On the other hand, the
subordinate has the parent ego and he prefers to use the clickes and rules of the past. The
employee's parent ego tries to control and dominate the boss. This type of transaction can
be effective only on a temporary basis and it can help a new manager in understanding the
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rules and guidelines under which his subordinate operates. The following figure presents
the Adult-parent transaction.
There can be a lot of problems in this type of transactions. In the long run the employee
with the parent ego may have hostile feelings towards the managers with adult ego. Such
problems can be further aggravated if the other employees working in the organisation
have child ego and they are under the influence of the employee with the parent ego. As he
may be having better interaction with the employees with child ego, the employee with the
parent ego can come into direct conflict with the manager with adult ego,
3. Adult-Child Transaction : An adult child transaction occurs when the manager has an
adult ego but the subordinate has a child ego as shown in the following figure :
Such a transaction can be effective only if the manager is aware of the child ego state of
the employee. Further, he must be aware that what type of child ego state the employee is
in. If the subordinate has the little professor style child ego, the manager can allow the
employee to be creative. But the problems in this interaction may arise if the employee
behaves irrationally because of his child ego. Another problem may arise if the manager
assumes the employee to be in adult ego, whereas he is in child ego. This may create
frustration both for the manager and his subordinate.
4. Parent-Parent Transaction : If the manager has got a parent ego, he will be characterised
by admonitions, rewards, rules criticisms and praise depending upon whether he has a
nurturing or a critical parent ego. As, on the other hand, the subordinate has also got a
parent ego, this transaction can be effective only if the subordinate joins hands with the
manager and supports him.
Such a transaction can lead to some problems also. There will be unnecessary competition
between manager and the subordinate. The manager will want to enforce his own ideas,
whereas the employee will like to promote his own ideas rather than that of the manager.
5. Parent-Adult Transaction : In such type of transaction, the boss has got a parent ego
whereas the subordinate has got an adult ego as shown in the following figure:
Such a relationship may not last for a long period because they will be frustration on both
the sides. . The manager will feel frustrated because the employee will not act as directed.
The employer will feel frustrated because of the manager's failure to act as an adult.
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6. Parent-Child Transactions : The parent-child transaction is considered the ideal
situation. The manager will be satisfied because he can dictate his own terms. The
employee will be satisfied because he will escape from responsibility and pressure. The
child ego in the sub-ordinate presents much conflicts and there will be chances of smooth
working in the organisation.
In the long run, this transaction will not be advantageous. The manager will start having
the feeling that the employee is not capable of doing anything on his own. The employee
will start becoming frustrated because he may feel that his personality is not developed
and this interaction has made him surrender his adult ego.
7. Child-Parent Transaction : This is not a very effective style of transaction. The
manager with the child ego may be creative, but the role of the manager goes beyond
creativity. In the child-parent transaction, there is a reversal of roles and the employee
controls the manager. As the parent ego is strong and overbearing, the manager will yield
to the employee. The manager will always perceive the employee as a threat because in his
mind there will always be a fear of ridicule, loss of popularity and even of demotion.
8. Child-Adult Transaction : When the manager has a child ego and the employee has an
adult ego, the adult employee will control the child manager.
The child ego in the manager will discourage the employees, particularly, when decisions
are made by the manager on the basis of his whims, fancies and emotions. This will pose
problems for the adult employees who want to interact on the basis of their rationality. The
organisation may lose many good employees particularly those who want to act on the
basis of their rationality but thier managers have get a child ego.
9. Child-Child Transaction : When the manager has got a child ego and the employees
have also got a child ego, the transaction will not be long lasting. The manager in such a
transaction will not be able to lead the employees successfully and will prove to be a
liability to the organisation. Because of their child egos, both the employees and the
manager will act on their whims and fancies. It will jeopardise the performance of the
organisation. Whenever there is a review of the situation by the management, steps will be
taken to change this situation.
From the above discussion it is clear that all the complementary transactions are not ideal
for the organisation or for the people concerned. Adult-Adult transactions are good from
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the organisational and people's point of view. In some circumstances, parent-child
complementary transactions may also prove to be good.
(ii) Crossed Transactions: A crossed or non-complementary transaction is one in which the
sender sends a message or exhibits« behaviour on the basis of his ego state, but this
message or behaviour is reacted to by an uncompatible'knd unexpected ego state on the
part of the receiver. Such transactions occur when the stimulus and response are not
parallel. The following figure depicts one cross transaction, which may occur in an
organisational system.
In this case, the manager tries to deal with the employee on adult to adult basis, but the
employee responds on child to parent basis and the communication is blocked.
Crossed transactions should be avoided as far as possible. Whenever such transactions
occur, communication tends to be blocked and a satisfactory transaction is not
accomplished. Conflicts often follow soon afterwards. The conflicts may cause hurt
feelings and frustration on the part of the parties involved and possible dysfunctional
accomplishments for the organisation.
(iii) Ulterior Transaction : Ulterior transactions are the most complex because unlike
complementary and crossed transactions, they always involve more than two ego states
and the communication has double raeaning. An ulterior transaction occurs when a person
appears to be sending one type of message but is secretly sending another message. Thus,
the real message is often disguised in a socially acceptable way. On the surface level, the
communication has a clear adult language, whereas on the psychological level it carries a
hidden message. Just like crossed transactions, ulterior transactions are also undesirable.
(IV) Script Analysis : In a Layman's view, a script is the text of a play, motion picture or
radio or TV programme. In TA, a person's life is compared to a play and the script is the
text of that play. As SHAKESPEARE said, "All the world is a stage. And all the men and
women merely players. They have their exits and their entrances. Each man in his time
play many parts."
A person's psychological script is a life plan, a drama he or she writes and then feels
compelled to live out. These plans may be positive, negative or circular-endless repetition
headed nowhere. According to Eric Berne, "A script is an ongoing programme, developed
in early childhood under parental influence which directs the individual behaviour in the
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most important aspect of his life." "A script is a complete plan of living, offering both
structures, structure of conjunctions, prescriptions and permissions and structure which
makes one winner or loser in life."
Thus, every person has a script. A person's script may resemble a soap opera, a wild
adventure, a tragedy, a sage, a farce, a romance, a joyful comedy or a dull play that bores
the playes and would put an audience to sleep. According to Jongeward, "Life script
resembles the script of drama-Characters, dialogues, actions and scenes, themes and plays,
culmination towards a climax and ends in final curtain. She also uses the concept or a
person's two stages for action the public stage and the private stage."
McClelland produces a scientific study of life script of people who has studied the
relationship between stories heard and read by children and their motives in living. His
researches have shown that achiever's script are based on stories of risk.
Every person in his life time plays three basic roles which are called as the prosecutor, the
rescuer and the victim. These roles can further be classified as legitimate and illegitimate.
Legitimate Roles
These roles are realistically appropriate to the situation. Some legitimate roles are :
A Prosecutor—Someone who sets necessary limits on behaviour or is charged with
enforcing a rule.
A Victim—Someone who qualifies for a job but is denied the job because of race, sex or
religion.
A Rescuer—Someone who helps a person who is functioning indequately to become
rehabilitated and self reliant.
Illegitimate Roles
The roes are said to be illegitimate if they are used like masks and people use them for the
purposes of manipulation. These are :
A prosecutor: Someone who sets unnecessary strict limits on behaviour or is charged with
enforcing the rules but does so with sadistic brutality.
A victim: Someone who does not qualify for a job but falsely claims that it is denied to
him because of race, sex or religion.
A Rescuer : Someone who in the guise of being helpful, keep others dependent upon him
or her.
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Every person from time to time plays the parts of prosecutor, rescuer and victim. A person
when confronted with a particular situation, acts according to his script which is based on
what he expects from his life or how he views his life position. Generally, man's behaviour
becomes quasi-programmed by the script which emerges out of his life experience. This
life position of a person affects his interpersonal relationships. Thus scripts play a very
important role in transactional analysis.
V. Analysis of Life Positions
In the process of growing up people make basic assumptions about their own self worth as
well as about the worth of significant people in their environment. These assumptions tend
to remain with the person for life, unless major experiences occur to change them.
HARRIS called the combination of assumptions about self the other person, a LIFE
POSITION. Transactional analysis constructs the following classifications of the four
possible life positions or psychological positions.
(i) I am OK, you are OK
(ii) I am OK, you are not OK
(iii) I am not OK, you are OK
(iv) I am not OK, you are not OK
There life positions can be shown with the help of the following figure also. Positive
Negative
I am OK- I am OX-
you are not OK. you are OK
I am not OK- I am not OK-
you are not OK You are OK
Negative Positive
Attitude towards others
1.1 am OK-you are OK: This is a rationally choosen and mentally healthy position. It
appears to be an ideal life position. People with this type of life position have confidence
in themselves as well as trust and confidence in others. They accept the significance of
other people and feel that life is worth living. The people who have this position behave
from adult, nurturing parent and happy child ego state.
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When managers have this type of position, they have complete confidence and trust in
their subordinates. They display a very high level of mutual give and take. They delegate
authority throughout the organisation. These managers encourage free flow of
communication not only up and down the hierarchy but among the peers also. In short,
people with these feelings have positive outlooks on life. They seem to be happy-active
people who succeed in whatever they do.
2.1 am Ok-you are not Ok : This is a distrustful psychological position. This position is
taken by people who feel victimised or prosecuted. They blame others for their miseries.
This is the attitude of those people, who think that whatever they do is correct. Such
behaviour is the outcome of a situation in which the child was seriously neglected and
ignored by his parents in his childhood. Criminals often have this position, based on
rebellious child ego, which in extreme cases may lead to homicide also. In his life
position, people operate from critical Parent Ego.
Managers operating with this position will always be negative and will give critical and
oppressive remarks. They tend to point out the flaws, the bad things, rarely giving any
positive feelings. They feel that workers are lazy, irresponsible and untrustful, therefore,
they need to be closely controlled and often coerced to achieve organisational objectives.
They do not delegate any authority and feel that decentralisation is a threat.
3.1 am not OK-you are OK : This is a common position for those people who feel power
less when they compare themselves to others. People with this position always feel
themselves at the mercy of others and grumble for one thing or the other. They have a
tendency to withdraw, experience depression and in extreme cases become suicidal.
People who have this position operate from child ego state.
Managers operating from this position, tend to give and receive bad feelings. They use
these bad feelings as an excuse to act against others. But when the whole thing comes out,
they feel guilty for their acts and turn their bad feelings against themselves. These people
are often, unpredictable and erratic.
4.1 am not OK-you are not OK : People in this position tend to feel bad about themselves
and see the whole world as miserable. These people tend to give up. They do not trust
others and have no confidence in themselves. This is a desperate life position. In extreme
cases these people commit suicide or homicide. This is the case of individuals who were
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seriously neglected by their parents in their childhood and were brought up by servants. At
times, persons with this life position begin to use intoxicated drugs.
Managers who operate from this position are not competent, energetic, efficient and
effective. They are indecisive, confused and make stupid mistakes. They provoke others to
give them negative strokes in order to relieve themselves for stresses and strains.
One of the above four life positions dominates each person's life. The desirable position
and the one that involves the greatest likelihood of adult to adult transaction is "I am OK-
you are OK". It shows healthy acceptance of self and others. The other three life positions
are less mature and less effective. However, regardless of one's present life position, the "I
am OK-you are OK" position can be learnt. If all the people in the society operate from
this life position, there will be hope for improved interpersonal transactions. VI. Stroking
Stroking is an important aspect of transactional analysis. The term stroke refers to "giving
some kind of recognition to the other." Strokes are exchanged whenever two persons
interact with each other. The word stroking originated from the studies of the needs that
babies have for physical affection for complete psychological development. As we grow
from infancy into childhood and adulthood, we do not entirely lose our need for stroking.
A part of original need for physical stroking seems to be satisfied with symbolic stroking
like verbal recognition and eye contact between persons.
Jongeward and Seyer observe that "People need strokes for their sense of survival and well
being on the job." Lack of stroking can have negative consequences both on physiological
and psychological well being of a person. Infact, strokes are a basic unit of motivation
because :
(i) the quantity and quality of strokes serves as either posi tive or negative motivation for
employees.
(ii) a good share of satisfaction we get from work depends on the strokes available from
other people.
(iii) we can get strokes from the activities of the work itself, especially if what we are
doing really fits and we can take responsibility for it.
There are three types of strokes :
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1. Positive Strokes : The stroke that makes one feel good, is a positive stroke. Recognition,
approval, pat on the back are some of the examples of positive strokes. For positive results
on the jobs, it is crucial to give positive strokes to people.
2. Negative Strokes : A stroke that makes one feel bad or not good is a negative stroke.
Negative strokes hurt physically or psychologically. Hating, criticism and scolding are
some of the examples of negative strokes.
3. Mixed Strokes : A stroke may be of a mixed type also. An example of combination of
positive and negative strokes may be the boss's comment to a worker "You did an
excellent job inspite your limited experience." Excellent job is a positive stroke and lack
of experience is a negative stroke.
People do not always seek positive strokes. The negative stroke completes a social
transaction as they think it should be and provides social equilibrium from their point of
view. People feel relieved of their guilt if they get the expected negative stroke. For
example, if the subordinate has committed a mistake and his boss criticises him for that,
the subordinate will feel relieved of his mistake since the expected punishment has been
received.
The supervisor will normally secure better results by giving positive strokes, like initiating
an adult to adult communication. He should avoid the punishing parent to child approach.
People can learn to give and receive positive strokes by making source efforts. VII. Games
Analysis
When people fail to get enough strokes at work they may try a variety of things. One of
the most important thing is that they play psychological games. According to Eric Berne,
"A game is a recurring set of transactions, often repetitions, superficially plausible, with a
concealed motivation or more colloquially, a series of moves with a share or gimmick."
James and Jongeward note that "games prevent honest, intimate and open relationship
betwen the players. Yet people play them because they fill up time, provoke attention,
reinforce early opinions about self and others and fulfill a sense of destiny."
A psychological game is a set of transactions with three characteristics :
(i) The transaction tend to be repeated.
(ii) They make sense on superficial or social level.
(iii) One or more of the transactions is ulterior.
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The set of transactions end with a predictable payoff-a negative feeling. This negative
feeling generally reinforces a decision made in childhood about oneself or about others.
They reflect feelings of non-oneness. Psychological games prevent people and
organisations to become winners. However, people still play psychological games in the
organisations because of the following reasons :
1. To Get Strokes : Every person wants to have positive strokes on the jobs. When they are
not in a position to get these strokes from the others, they try to play psychological games
to satisfy their need for strokes.
2. To Strengthen Life Positions : Games are generally played to strengthen life position
which the people hold. If people hold non. OK positions, they try to emphasis it through
the games. Sometimes, a person acts like a loser in order to win the game. For example, in
a game of KICK ME a player provokes someone else to a put down response.
3. To avoid or control intimacy : Some people are afraid of openness, accountability and
responsibility in relationships. Such people generally play games to avoid or control
intimacy, because games generally put distance between people.
Types of Games : People play games with different degrees of intensity from the socially
accepted, relaxed level to the criminal homicide/suicide level. According to Eric Berne,
following are some of the games :
(i) A first degree game is one which is socially acceptable in the agent's circle.
(ii) A second degree game is one from which no permanent irremedial damage arises, but
which the player would rather conceal from the public.
(iii) A third degree game is one which is played for keeps and which ends in the surgery,
the courtroom or the morgue.
Games are programmed individually. If parent's games are initiated, they are played from
parent ego state. If the games are deliberately planned, they are played from the adult ego
state. They are played from the child ego state, if they are based on early life experiences,
decisions and the positions that a child takes about self and others.
Game players generally assume one of the three basic roles; prosecutor, rescuer or victim.
Prosecutors are generally those people who make unrealistic rules, enforce rules in cruel
ways and pick on little guys rather than people of their own size. Victims are the people
who provoke others to put themdown, use them, hurt them, send them helpless message,
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forget conveniently and act confused. Rescuers are the people who offer help to keep
others dependent on them, do not really ielp others and may actually dislike helping and
work to maintain the victim role so that they can continue to play rescuer.
These three roles are not independent, rather the players of psychological .Tames often
switch back and forth in their roles. On many occasions, the characteristics of these people
may not be imaginary. For example, people may actually be victimised personally or
discriminated against on the job. In such situations, they are the real victims. Nevertheless,
actors in the psychological games assume the role of game players and differ from reality.
Methods of Preventing Games : Since games prevent open, warm, -•.imate and honest
relationships between players, it is essential to develop methods to discourage games in
organisation. Jongeward has suggested the following steps to overcome psychological
games :
1. Advoidance of the complementary hand
2. Avoidance of acting roles involved in games particularly, victim roles.
3. Avoidance of putting other people down.
4. Avoidance of putting oneself down.
5. Giving and taking positive strokes as against negative strokes.
6. Investing more of life's time in activities and intimacy and
7. Levelling the thinking with others. Benefits of Transactional Analysis (TA)
Transactional analysis is an approach towards understanding human behaviour. It is
particularly useful in studying interpersonal relationships. The understanding of TA can
help us in the following ways :
1. Improved Interpersonal Communication: With the help of TA people can understand
their own personalities. It can help them understand why people sometimes respond as
they do. With the help of TA, a manager can understand when a cross communication
occurs and he can immediately take steps to convert into complementary communication.
As a result there will be improvement in interpersonal communication.
2. Source of Psychic Energy : The purpose of TA is to bring positive approach towards life
and hence positive actions. A clear change can be brought from negative feelings to
positive feelings. Such a change from negative attitude by positive attitude is a source of
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psychic energy. Thus, the application of TA can enhance the trust and credibility felt
towards the organisation which are essential for good employee relations.
2 3. Understanding the Egostates: With the help of TA managers will be able to identify
the ego states from which both parties are interacting. A better understanding of
themselves and of other people will make them more comfortable, confident and effective.
The improved interpersonal relations will make the organisation more effective. This will
lead to self-development of individuals also.
4. Motivation : TA helps in changing the managerial styles more suitable to the emergent
situation. TA can be applied very successfully in motivation where it will help in
satisfying human needs through complementary transactions and positive strokes. If the
manager emphasises adult-adult interaction with life position "I am OK, you are OK, it
will be motivating for employees and beneficial to the organisation as a whole."
5. Organisational Development : TA can help in organisational development process.
Jongeward has identified the role of TA in six areas of organisation development:
(i) To maintain adult transactions
(ii) To give an OK to the natural child
(iii) To identify and untangle quickly crossed transactions
(iv) To minimise destructive game playing
(v) To maximise encounters.
(vi) To develop supportive systems, policies and work environment.
TA is used in business and industry as way to increase the capability of the executives to
cope with problems and deal more sensibly with people. Besides the major area, TA can
be utilised anywhere the people come to interact.
To conclude, we can say that research on TA has to be continuous and action oriented.
There are many areas in organisational behaviour which are yet to be explored. The
present study and existing structure merely touch the fringe of a complex subject, which
has numerous dimensions. Professional expertise, academic knowledge and scientific
skills are needed to explore this subject further.
JOHARI WINDOW
Johari window is a popular model for understanding the changes in interpersonal
behaviour (relations). This model was developed by Joseph Luft and Harry Ingham. Johari
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Window is a popular frame work thai, shows how people expose themselves to others and
receive feedback in their behavioural relationships.
Explanation of the Johari Window
As shown in the following figure, Johari Window is made up of four parts. These parts, in
together, represent total person in relation to others on the basis of awareness of
behaviour, needs, feelings and live
As shown in the above figure, there may be somethings which an individual knows about
the others and somethings does not know. However, as the awareness changes to a
relationship, the existing condition will also change. The four parts of the window are
discussed as under :
1. Open Self: Openness reflects behaviours, feelings and motivation known both to
oneself and others. We can say that an individual knows about himself or herself and
about others. This type of interaction is known as openness.
2. Blind Self : This type of interaction reflects behaviour, feelings and Motivation Known
to others but not to self. In other words, we can say that an individual knows about others
but not about himself or others.
3. Hidden Self: This part of Johari Window refers to the states about the individual
Known to him or her but not known to others. The hidden self is within the vision of the
individual but he does not want to share it with others.
4. Unknown Self: Undiscovered self refers to those aspects of an individual that neither
the individual nor other people know about him. It is mysterious.
Now'we can say that Johari Window model is a popular framework that provides inter
personal process of disclosure and feedback.
Requirements of Effective Feedback
Good feedback helps a person to reduce "blind area" and increase self-awareness.
According to J. Hall, following are certain requirements of effective feedback. Thus,
feedback in interpersonal relations should be :
1. intended to help the others
2. descriptive rather than evaluative
3. specific rather than general.
4. given at a time when the recipient is ready to accept it.
5. checked with others in order to be sure that they support it.
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10 COMMUNICATION
Communication plays an important role in every walk of life, i.e. among friends, within
the family and in social circles. Similiarly, communication has key role in organisations.
Management functions cannot be perform well in the absense of effective communication
system. Management functions involve issue of directions, instructions and feed back etc.
All this is not possible without a system of communication in the organisation. W.R.
Spriegal has rightly observed that "Most of the conflicts in business are not basic but are
caused by misunderstanding and ignorance of facts. Proper communication between
interested parties reduce the points of friction and minimize those, the inevitably arise."
Communication may be defined as the process of passing information from one person to
another person. It involves exchange of ideas, view, informations etc. It also ensures that
information must be passed in a manner that is understood by the receiver. It is a
meaningful interaction among employees in the organisation and must pass to the right
person. For the effective and successful communication, it is necessary that there should
be good relations among the people and the receiver must understand the same meaning as
the sender wants to communicate. If the receiver falls to understand the meaning of
message, it is not communication. Wibur Sehrann, has said that "In communication, there
are two parties, sender and listener. Communication can only be successful if both these
parties are equally interested in it. When only one party is interested, communication
becomes dead." Definitions of Communication
Communication has been defined by many experts:
"It is the act of making one's ideas known to others."
-Fred G. Mayer
"The word communication is a way through which an organisation and its members share
meaning and understanding with another."
"Communication is the process of passing information and understanding from one person
to another. It is the process of imparting ideas and making
"Communication in its simplest form is a conveying of information from
-Koontz and O' Donnel
oneself understood by others.
-Theo Haiman
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one person to another."
-Cyrill L. Hudson
"Communication is an exhange of facts, ideas, opinions or emotions by two or more
person." —Nhvman and Summer
In the light of above definitions given by many experts, it can be said that communication
is a process of exchange of ideas. Characteristics or Nature of Communication
After study of above definitions, following features are being stated :
1. Two or More Persons : The main feature of communication is the presence of more than
one person. It meSns there should be at least two persons for effecting communication.
2. Exchange of Information : Communication >s a process which-involves exchange of-
fdeas, facts feeling; etc., between two or more than two persons.
3. Media of Exchange : Communication is passed on to people concerned through
effective media i.e., telephone, radio, T.V. wireless etc.
4. Elements of Understanding: It is necessary for communication that receiver of message
must understand the Message with the same meaning as the sender wants to communicate.
If receiver of message is unable to understand, it cannot be called communication.
5. It is an Art: Communication is an art, through which communicator (manager)
motivates, guides people and eliminates misunderstanding and confusion. Therefore, a
communicator should be highly skilled in the art of communication.
6. Basis for Co-operation : Two way communication system provides opportunity to
people for expressing their ideas opinions, suggestions etc. This creates co-operative
atmosphere in the organisation.
7. Use of Words and Symbols : There are different means of communication such as
written, oral and symbolic. For instance, ringing of bell, movement of neck, showing
anger by facial expression etc., are symbolic communications. Significance of
Communication
Communication is as vital to the efficient functioning of an organisation as the circulation
of blood is to the human body. Without communication management is" impossible. The
effectiveness of a manager depends largely upon" his ability to understand his
subordinates and to make himself understood by them. Communication is the link that
unites superior and subordinates and brings about mutual understanding among them.
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In recent years, the importance of communication in industry has increased on account of
the following factors :
1. Large Size of Organisation : Modern organisations are large in size and employ a large
number of people to realise their objectives. When the number of persons working
together is large, cooperation and coordination among them becomes more difficult. A
formal and effective communication system is required to ensure mutual cooperation and
coordination.
1. Technological Adavancement : Rapid changes in technology is a distinctive feature of
modern industry. A large enterprise has to^adopt latest technology to survive and grow.
New technology is generally resisted'by the worker. A sound system of persuasive and
educative communication is required to overcome the resistance to change. With the hetp
of communication, management can remove the misgivings and remours-prevailing
among the workers in relation to technological changes.
3. Growth of Trade Union Movement : In almost all the industries, workers have
organised themselves into powerful trade unions. In order to ensure industrial peace,
management must maintain cordial relations with the trade" union leaders. A two-way
communication between management and unions is very helpful in developing mutual
understanding and cooperation between the two.
4. Emphasis on Human Relations : Employer-employee relationship is no longer
considered as master-servant relationship. Workers are now treated as partners in industry
rather than a commodity. Management must understand the needs, aspirations, feelings
and value system of employees in order to manage them effectively. Two-way
communication is a very effective means of understanding and managing human
behaviour.
5. Public Relations : A modern business enterprise is conscious-<>f its responsibilities to
the society. It seeks to create and maintain a favourabledmage of itself among the various
sociai groups. It can do so by keeping th» different segments of society informed about its
social obligations^ Communication Process
Communication has been defined as a process. The term process refers to identifiable flow
of information through interrelated stages of analysis directed towards the achievement of
an objective. In the case of Social actions, the concept of communication process is
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dynamic rather than static in which events and relationships are seen as dynamic,
continuous, and "flexible; adynamic interaction both affecting and being affected by many
variables. There are four elements in the process-action, a continuous change in time,
advancement or progress over time, and a goal or result. The communication being a
social process is a dynamic one and, thus, cannot be studied-as part of step by step action.
Not-with-standing this, some sequential arrangement in communication can be thought of
treating it a sort of stop action.
One of the best ways to view communication in a sort of stop action is through the use of
models. Communication models do have some drawbacks like unnatural act of stopping a
process, over-simplifying and providing T*ot more than a partial view of such a complex
process. In spite of such drawbacks related to models, they do provide a definitive method
which is clear and easy to use in grasping a set of concepts which are central to an issue.
In the case of communication, fortunately, such models are available. Such models range
from simple one-way persuasive model to complex information model. Three such models
which are used to understand communication process are: Shannon-Weaver Model, Berlo
Model, and Transactional Process Model.
1. Shannon-Weaver Model : Shannon-Weaver model is based on information theory.
Information theory is a mechanical-approach of communication. This theory can bet
distinguished from its broader counterpart, communication theory, in that it deals with
information devojd-of meaning, that is, the information theorists are not interested in what
is communicated but only in the fact that the information is communicated both accurately
and correclty. The basic information theory model involves an information source which
selects a desired message out of all the possible-messages that it can select, a transmitter
which changes the messages into a signal which can be sent over some communication
channel to a receiver, a destination to whom the message was originally intended, and
finally a noise source which can introduce extraneous' information into the signal as
shown in figure given below.
This model does not include feedback as the same process will take place for feedback and
receiver may become sender of message. According to this model, communication
problem can arise at any one of the three levels: the technical level, where one asks the
questions, "How accurately can the symbols
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Noise present in channel
Figure : Shannon-Weaver communication model
of communication be transmitted" the semantic level, where one asks the question. "How
precisely do not transmitted symbols convey the desired meaning;" and the effectiveness
level, where one asks the question. "How effectively does the received meaning affect
conduct in the desired way?"
2. Berlo Model : Berlo model of communication is known as dynamic process model. This
is the first widely accepted model which presented communication as a dynamic,
interactive process.* Berlo has countered the linear, step-by-step information approach
with the following ideas:
"If we accept the concept of process, we view events and relationships as dynamic,
ongoing, ever-changing, continuous. When we label something as a process, we also mean
that it does not have a beginning, or an end, or a fixed sequence of events. It is not static,
at rest. It is moving. The ingredients within a process interact; each effects all the others."
Based on these, ideas Berio has presented the communication process as shown in the
Figure :
Sender Encoder Message Channe
l
Decoder Receiver
Ideas Motor Code Mediu
m
Motor Ideas
Needs skills set of Carrier skills Needs
Intentions Muscle symbols — Muscle Intentions
Information system system Information
Purpose sensory Sensory Purpose
skills skills
Figure : Berlo model of communication
Berlo has treated communication process as on-going one which involves feedback as
well, though in his model, he has not mentioned it specifically.
3. Transactional Process Model : Contemporary theory and research have extended the
Berlo dynamic process, and communication theorists have seen communication as a
transaction process. The prefix trans, meaning mutually and reciprocally, is stressed
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instead of inter, meaning between. These theorists state that "all persons are enaged in
sending (encoding) and receiving (decoding) messages simultaneously. Each person is
constantly sharing the encoding and decoding processes, and each person is affecting the
other. Thus, there is continuous process of feedback in the communication process which
has been presented in Figure given below :
Sender - Message - Encoding Channel Receiver
-
Decoding -
Message
Feedback 1
Figure : Communication process with feedback
Transactional process model of communication is based on the social approach of
organisational behaviour. The reciprocal determinism of social learning is very similar to
transactional approach of communication. From organisational behaviour point of view,
such an approach is much more accurate and useful way of viewing communication than
the more limiting information flow perspective of communication. Elements of
Communication Process
Communication, being a process, must have some elements to complete the process,
Various elements of communication have been presented in different model of
communication. These are sender, message, encoding, channel, receiver, decoding, and
feedback. Let us have a brief look at these elements.
Sender: Sender of the message is the person who intends to make contact with the
objective of passing the message to other persons. In organisational context, sender may
be a superior, a subordinate, a peer, or any other person. The organisational position of the
sender determines the direction of flow of communication in an organisation.
Message : This is the subject-matter of the communication which is intended to be passed
to the receiver from the sender. The message may be in the form of ideas, opinions,
feelings, views, suggestions orders, etc.
Encoding : Since the subject-matter of communication is abstract and intangible, its
transmission requires the use of certain symbols such as words, picture, gestures, etc. The
process of converting the message into communication symbols is known as encoding.
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Channel : Message encoded into symbols is transmitted by the sender through a channel
like written form, personal contact, phone call, etc., depending on the situation of two
parties-sender and receiver.
Receiver: Receiver is the person to whom the symbols are transmitted. Like sender, he
may be a superior, subordinate, peer, or any other person in the organisation.
Decoding: Decoding is the reverse of encoding. The receiver receives the subject matter of
communication in the form of communication symbols in which the sender has encoded
his message. The receiver decodes these symbols into message.
Feedback: Feedback is necessary to ensure that the receiver has received the message and
understood in the same sense as the sender intended. Further, it acts as an energising
factor, thereby changing the course of action in the communication. Two-Way
Communication
Often, it is commented that "management is a two-way traffic; it is based on an effective
machinery of communication." Two-way communication, made possible by feedback, has
a back-and-forth pattern. In two-way communication, the sender sends the message and
the receiver's response comes back to the sender. The result is a developing play-by-play
situation in which the sender can adjust the next message to fit the previous response of
the receiver. The role of feedback is often underestimated because of the perception of the
sender that once he has sent the message, his act of communication is over. However, this
perception may be misleading because feedback plays important role in communication.
For example. Sigband has expressed the view that:
"It (feedback) permits expressive action on the part of one and/or more persons and the
conscious and unconscious perception of such action, then this perhaps one of the most
important factors in this network is feedback which is vital if the orginator and
receiverwant to secure same level of effectiveness in the communication process."
Two-way communication is better than one-way communication in the followingrespects:
.1. Two-way communication is more accurate than one-way communication. The feedback
allows the sender to refine his communication so that it becomes precise and accurate.
2. Receiver's self-confidence is higher in two-way communication as he is permitted to
seek clarification from the sender.
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However, it does not mean that two-way communication is always preferable. It is more
relevant in the context of interpersonal communication. For example, giving an instruction
to a subordinate by the superior and receiving feedback for it« clarity and understanding is
a case where two-way communication is almost a must. As against this, when the
communication is for providing information of a general nature to the employees, such as
information about holiday on a specific day, two-way communication is hardly Tequired.
Problems in Two-way Communication
Two-way communication is not exclusively beneficial; it may create problems. There are
two potential problems that may emerge out of two-way communication: polarisation and
cognitive dissonance.
Polarisation : Two persons may strongly disagree about some items but may not realise it
until they establish two-way communication. When they express their viewpoints; they
may become even more polarised, taking even more extreme position. Argyris has found
that when threatened with the potential embarrassment of losing an argument, people tend
to abandon logic and rationality, and engage in defensive reasoning. They blame others,
selectively gather and use data, seek-to remain in control, and suppress negative feelings.
Cognitive Dissonance: Another problem in two-way communication may occur in the
form of cognitive dissonance. It is the internal conflict and anxiety that occurs when
people receive information incompatible with their value system, prior decisions, or other
inforihation they may have. In two-way communication, this gets hightened.
Media/Communication Symbols
The. subject matter of communication-message, idea, suggestion, etc.-is not in physical
form but in abstract and intangible form: its transmission and receipt require the use of
certain symbols. The subject-matter of the communication is encoded into these symbols
which are then transmitted as we have seen in communication process. Communication
symbols may be in the form of words either in oral or in written form or may be in other
forms which include non-verbal and pictorial forms. Each of these symbols may be either
used exclusively or two or more of these can be used to supplement each other. For
example, in face-to-face communication, diagrams and charts may be used to clarify what
one is talking about. Similarly, facial expression and movement of the parts of the body
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may also be used to emphasise a particular point. Let us see how these symbols contribute
in communication process.
Oral Communication
Words are the most common symbols of communication and that too in oral form both in
organisational and non-organisational contexts. In organisational setting, many employees
spend more than 50 percent of their time in some form of oral communication. In oral
communication, both the parties to the communi-cation process-sender and receiver-
exchange their ideas through oral words' either in face-to-face communication or through
electronic devices like telephone, etc.
Merits of Oral Communication
In organisations, people use oral communication because it serves a number of purposes
which are as follows :
1. Easy Communication : Oral communication is the easiest one as it saves time and cost
involved in decoding the ideas into words. It can be used to send the message instantly to
the receiver. With the development of telephone facilities, two or more persons can
exchange their messages orally even if they are at distant places. This is the reason that
oral communication is used most frequently.
2. Effective : Oral communication is an effective system because in face-to-face oral
communication, there is the possibility of use of gestural communication, that is,
emphasising any part of the niessage through facial expression and movement of parts of
the body, is increased. Therefore, the message is passed in its true sense.
3. Instant Feedback: In oral communication, there is an instant feedback for the message
transmitted. Where two-way oral communication is used, feedback process is an integral
part of the communication process. Even in oneway oral communication, feedback is
available from the listeners in the form of their gestures. Instant feedback from the
receiver allows the sender to recast his message offering clarification to what has been
said earlier. Thus, there,.is very little scope of ambiguity.
4. Facility for Informal Communication : We have seen in chapter 13 that along with
formal organisation, informal organisation also exists to supplement the former.
Communication in informal organisation is in oral form. This allows employees to
communicate their feelings and views which they may not like to communicate in writing.
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It may be mentioned that such feelings and views are very important for managers as these
reflect the actual situation at the workplace. In the absence of oral communication, perhaps
these feelings and views are hard to be understood.
Thus, it can be seen that oral communication helps in better performance by providing the
clear and timely message.
Demerits of Oral Communication
Oral communication, however, is not free from certain limitations though its merits score
over these limitations. Some of the demerits of oral communication are as follows :
1. Lack of Record : Oral communication does not provide an authentic and permanent
record of communication unless the conversation is tape-recorded. It is, therefore, of
immediate value. Where the message has to be kept as a record it will not be appropriate.
Therefore, oral communication is not useful in communicating service contracts, policy
statements, purchase orders and other matters of record.
2. Time Consuming: Oral communication in the form of face-to-face talk may become
time consuming and costly. In meetings and conference nothing concrete may take place
after lengthy deliberations.
3. Lengthy Message : If the subject-matter to be communicated is quite lengthy, oral
communication may not produce satisfactory results. In such a case the listener may not
patiently listen and understand the whole matter.
4. Physical Distance : When there is long physical distance between the speaker and the
listener, oral communication may be ineffective. Communication through mechanical
devices is not very reliable due to the possibility of breakdownin the mechanical system.
Oral communication is not possible when the parties are at distant places and no telephone
service is available.
5. Misunderstanding : Oral communication may be misunderstood or not heard due to
mutual distrust of suspicion between the speaker and the listener. Poor vocal expression
may also lead to misunderstanding. Immediate response or instant reaction may result in
conflicts in certain situations. Sometimes oral words are not taken seriously by the
receiver. Inattention or poor listening on the part of the receiver also creates problems.
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Written Communication
Written communication is transmitted through written words in the form of letters,
circulars, memos, bulletins, instruction cards, manuals, handbooks, reports, returns, etc.
Managers frequently use written communications in the course of performing their
functions. It is frequently used to issue specified orders and instructions to subordinates.
Merits of Written Communication
In various situations, written communication is used because it has certain merits. In one
way, all the dermits of oral communication are the merits of writen communication as both
are opposite to each other. In general, written communication has the following merits :
1. Effectiveness : Written message are more carefully formulated than oral messages.
Therefore, written communication tends to be more clear and specific. It is more orderly
and binding on subordinates.
2. Lengthy Messages: Written communication is more appropriate when the message is
quite lengthy or where it is to be conveyed to a large number of persons simultaneously.
3. Economical: Written communication is cheaper when the sender and the receiver are
situated at distant places.
4. Repetition : Written communication can be used again and again. Sometimes written
communication is also used to elaborate and complement oral messages.
5. Permanent Record: Written communication provides a reliable record for future
reference. It is very difficult to alter the contents of a written message. When the subject-
matter of communication needs to be preserved for future, written communication is the
only way out.
6. Better Response : Response to written communication is generally well thought out
because the receiver gets sufficient time to understand and evaluate the message.
Demerits of Written Communication
Like oral communication, written communication has certain limitations which are as
follows :
1. Costly : Written communication is a costly affair as compared to oral communication.
Cost involved is both in terms of time and money. In drafting written communication,
much more time is involved because it has to be drafted more precisely, clearly, and
authentically leaving no scope for ambiguity. This requires much more time to structure
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the message than what it may require in oral communication. Moreover, in preparing
written communication, cost is involved on stationery, etc.
2. Overemphasis on Formalisation : Written communication bceomes a formal means.
While some degree of formalisation is essential, its overemphasis hempers efficiency. In
bureaucratic organisations where too much emphasis is put on formal written
communication, inefficiency emerges because the efforts are directed towards maintaining
written records rather than achieving results.
3. Lack of Secrecy : Sometimes, communication requires secrecy particularly when the
information is a sensitive one. In the written form, the message comes in record and
leakage of that may be detrimental to the organisation concerned. Of late, there have been
cyber crimes in the form of decoding the confidential information or others information
transmitted through internet which is in written form.
Like oral communication, various merits and demerits of written communication suggest
that it cannot be followed in all situations. Where the information is to be maintained for
future reference, written communication is the only possibility. Similarly, where the
message requires authenticity and formalisation, it should be communicated in writing. In
day-to-day operations, insistence on written communication is not desirable.
Non-Verbal and Pictorial Communication
Besides words in oral or written form, message can be transmitted without using words.
Such methods may be either non-verbal in the form of gestures or pictures including
graphs and diagrams Most of the time, these are used along with communication through
words though occasionally, these can be used exclusively. For example, in news telecast
meant for deafs the news reader does not use words but communicates through finger and
other parts of the body. However, in organisational communication, these are used as
supplements to verbal communications. Techniques used in non-verbal and pictorial
communication are different. Therefore, both will be discussed separately.
Non-Verbal Communication
Non-verbal communication is very important in both organisational and non-
organisational settings. Look at how dumbs communicate without using a single word;
how the dancer of Bharatnatyam dance conveys the meaning through her actions and
movement of different parts of the body; how a manager emphasises a particular point by
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moving his hands or making specific facial expression. These things convey meaning,
sometimes, more effectively than words. Non-verbal communication can take the form of
body movements, the intonations or emphasis which we give to words, facial expressions,
and the physical distance between the sender and the receiver of the message. Looking
into the role of non-verbal communication, a new academic study of body movements,
known as kinetics has been developed. It refers to the study of gestures, facial
configurations, and other movements of the body to communicate meanings. However, it
is relatively a new field and it has been subject to far more conjecture and popularising
than the research findings support.
There are three important aspects is non-verbal communication. First, a body position or
movement may not by itself have a precise or universal meaning, but when it is linked
with spoken wrods, it may give fuller meaning to a sender's message. Second, sometimes,
there may be contradiction between verbal and non-verbal communication. The literal
meaning of sender's words may be different than what he conveys through non-verbal
communication. Therefore, it is important for the receiver to be alert to this aspect of
communication. He should look for non-verbal clues as well as listen to the literal
meaning of the sender's words. Third, action speaks louder than words in the long run. A
manager who says one things but does another thing will soon find that his employees
listen to mostly what he does rather to what he says. When there is a difference between
what one says and what one does, we call that a communication credibility gap Pictorial
Gestural Communication
The third symbol that is used to communicate is picture. It may include picture, graphs,
diagrams, charts, etc. Organisations make extensive use of pictures, such as blueprints,
progress chart, maps, visual aids in training programmes, scale models of products and
similar devices. The use of such means of communication is increasing in training and
education as well as in organisational communication. Picture can provide powerful visual
images, as suggested by the proverb, "a picture is worth a thousands words." In fact, many
companies have designed their advertisement copies in which only pictures are used and
no words are spoken or written. To be more effective, however, pictures should be
combined with well chosen words and actions to tell the complete message.
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Communication Network
In the organisational context, a network is a structured fabric of the organisation, made up
of system of lines, or channels, which are interconnected. Communication networks, than,
are these network channels or lines used to pass information serially from one person to
another. We can safely say that organisational communication is really the flow of
information through the network of interrelated human role relationships. Since within an
organisation, human beings are interrelated both formally and informally, communication
takes place to maintain these inter relationships. Thus, organisational communication
network is made up of two types of channels which are interrelated and interdependent,
viz., formal and informal. The existence of these channels is necessary for organisational
communication to take place. Further, these channels also determine to a very significant
extent the smoothness, rapidity, and correctness with which the messages flow in an
organisation. Thus, if the channel is too narrow considering the volume of message
flowing through it, message may get delayed or blocked. If the channel is too long or
circuitous, again the same thing may happen. Besides, the existence of a number of
filtering points in the channel may also affect the accuracy of the messages flowing
through it: something may get added to or taken away from the original message at each of
these points.
Before we proceed to take up the details of formal and informal channels, let us have a
look at differences between formal and informal communication. A message coming
through the formal channel is known as formal communication and that coming through
informal channel is known as informal communication. Difference between the two are
presented in the table given below :
Differences between formal and informal communications
Formal communication
1. It is based on formal organisational
relationships. The channels of
communication are prescribed.
3. It is rigid as deviations are not allowed.
4. The speed of message travel is slow
because of formalisation.
Informal communication
1. It emerges out of soical integrations
among the people.
2. Channels of communication depend on
individuals' relationships.
3. It is quite flexible because nothing is
prescribed.
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5. No chance of message distortion
6. It is treated as authentic.
4. Message travels faster.
5. Message are often distorted.
6. It is not authentic even if the message is
correct.
1. Formal Channel: The formal channel, as the very name implies, is the deliberately
created, officially prescribed path for flow of communication between the various
positions in the organisation. It is deliberate attempt to regulate the flow of organisational
communication so as to make it orderly and thereby to ensure that information flows
smoothly, accurately, and timely to the points to which it is required. Further, it is also
intended to prescribe for filtering of the information to various points to ensure that
information does not flow unnecessarily thereby causing the problem of over load. The
officially-prescribed communication network may be designed on the basis of a single
channel or multiple channels as shown in Figure :
Single Chain
Wheel
Inverted V
Circular Free Flow
Figure : Communication network Single Chain : Single chain communication network
exists between a superior and his subordinate. Since there may be a number of levels in an
organisation, each individual within those levels is both superior as well as subordinate,
except the person at the top or bottom. Communication flows downward or upward
through each successive level. Communication flow through the chain may be orderly and
easy to control but it is very time consuming. Often, we find such a communication
network in bureaucratic organisations.
Wheel : In wheel network, all subordinates under one superior communicate—through
him only as he is the hub of the wheel. They are not allowed to communicate among
themselves. Thus, there is no horizontal communication. In this network, problem of
coordination is the main drawback.
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Circular: In circular network, the communication moves in a circle. Each person can
communicate with his adjoining two persons. In this network, communication flow is
slow.
Free Flow : In this network, each person can communicate with others freely. In this
network, communication flow is fast but problems of coordination exists. This is followed
in free-form- organisation or in task force.
Inverted V : In this network, an individual is allowed to communicate with his immediate
superior as well as his superior's superior. In the later case the subject matter of
communication is prescribed. In such a network, communication travels faster.
Some of these networks allow for speedly flow of communication and provide satisfaction
to the individual. Some of these are used to control unnecessary flow of communication.
Single Channel Vs Multiple Channels : As discussed above, formal channel may be a
single one or multiple. A single channel communication network prescribes only one path
of communication for any particular position and all communications in that position
would have necessarily to flow through that path only. Ordinarily, this path is the line of
authority linking a position to its line superior. This is what is commonly referred to as
through proper channel' i.e., through the line of superior-subordinate authority
relationships and its implication is that all communications to and from a position should
flow through the line superior or subordinate only.
The channel of communication under this system is, no doubt, narrow but ordinarly, it
does allow for flow of in essential information. Besides, it is easy to maintain, orderly in
nature, supports the authority of the superiors, and provides for closeness of contact
thereby reducing chance of miscommunication. It helps in exercising control over
subordinates and in fixation of responsibility in respect of activities carried on by a person
in the organisation.
However, it has certain basic limitations, such as bottlenecks in the flow enhancing
organisational distance, greater possibilities of transmission errors, screening at various
filtering point, etc. One way of overcoming these limitations is to provide a number of
communication channels linking one position with various other positions, i.e., the system
of multiple channels. An unlimited use of this system may, however, cause confusion and
also undermine the superior's authority.
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2. Informal Channel or Grapevine: The informal channel of communication, also known
as grapevine, is the result not of any official action, but of the operation of social forces at
workplace. The term grapevine arose during the days of the U.S Civil War. At that time,
intelligence telephone lines were strung loosely from tree to tree in the manner of
grapevine, and the message thereon was often distorted; hence, any mover was said to be
from the grapevine. Today, the term applies to all informal communication. While formal
communi-cation exists to meet the utilitarian needs of the organisation, informal
communi-cation is the method by which people carry on social, non-programmed
activities within the formal boundaries of the system. It, thus, exists outside the official
network, through continuously interacting with it. Grapevine is more active when :
1. there is high organisational excitement, such as policy changes like automation,
comuputerisation, etc., or personnel changes;
2. the information is new rather stale;
3. people are physically located close enough to communicate with one another; and
4. people cluster or in groups check along the grapevine, that is, they have trust among
themselves
Grapevine Network : Grapevine follows different types of network. Usually, there are
four types of pattern through which grapevine travels. These are single strand, gossip,
probability, and cluster. In each pattern, communication among different individuals is
different as shown in Figure.
In single strand network, the individual communicates with other ndividuals through
intervening person. In gossip network, the individual communicates non-selectively. In
probability network, the individual communicates randomly with other individuals
according to the law of probability. In cluster network, the individual communicates with
only those _r.dividuals whom he trusts.Out of these informal networks, the cluster is the
most popular.
Although grapevine information tends to be oral, it may be in written form J Sometimes
handwritten or typed notes are also used. In the modern electronic office, grapevine
messages typically are flashed on computer screens, creating the new era of the electronic
grapevine.
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Accuracy in Grapevine: Usually, there is a perception that grapevine is .^accurate. This
happens because grapevine tends to be assoicated with remour, another form of informal
communication, which more often tends to be inaccurate. However, contrary to this
perception, the accuracy level is very high in grapevine. Sometimes, major portion of
grapevine may be true but inaccurate :art may make the whole grapevine meaningless. To
emphasise this aspect, Newstrom and Davis have given an example which is as follows :
"On one grapevine, a story about a welder marrying the general manager's daughther was
true with regard to his getting married, the date, the location, and other details. The one
wrong detail in this 90 percent accurate story was :hat the woman was not the general
manager's daughter but only happened to have the same last name. This one wrong point
made the whole communication wrong in general meaning even though it was 90 per cent
accurate in details.
Since it is true that grapevine information is ususally incomplete, it may he seriously
misinterpreted. That is, even though the grapevine tends to carry die truth, it rarelly carries
the whole truth. Direction of Communication Flow
The inter-scalar communication may again be classified as downward, when ±e message
flows from the higher to lower level, or upward when it is the other vav round.
Downward Communication
Downward communication within the organisation flows from a superior either in the
same line of command or in a different one. It stands out as a great force for controlling,
influencing, and initiating activities of organisational members. Communication in this
category includes :
(i) Orders and instructions about job.
(ii) Directions about understanding of job and its relationships with other
jobs.
(iii) Organisational policies and procedures.
(iv) Feedback of subordinate's performance.
(v) Questions inviting upward communication.
In the organisation, people at lower levels have a high degree of fear and respect towards
such communication which leads to a high degree of acceptance of such communication.
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Coordination, distortion, and resistance are three important problems that characterise the
downward communication process. Upward Communication
Upward communication flows from a subordinate position to a superior position. It
includes information about:
(i) Subordinate's work performance
(ii) Problems relating to work.
(iii) Performance appraisals of their subordinates.
(iv) Freedback on understanding of orders and instructions, etc.
(v) Clarification of orders, etc.
(vi) Opinion, attitude, feelings, etc.
(vii) Procedures, methods, practices followed in doing a work.
(viii) Criticisms.
(ix) New ideas and suggestions.
(x) Personal and family problems.
Upward communication is more susceptible to various obstructions and bottlenecks
discussed later on, because of its special nature. Managers, often at times, fail to realise
that upward communication cannot be taken for granted, as is the case with downward
communication. This is so because, unlike downward communication, upward
communication is devoid of any support of managerial hierarchy. On the contrary, it has to
flow in a direction directly opposite to the flow of official authority.from the dependent
subordinates to the superiors on whom they (subordinates) are directly or indirectly
dependent for the satisfaction of their needs. As such, there is a strong possibility of
upward information being distorted or coloured. Horizontal Communication
It is the flow of information between persons of the same hierarchical level. Formal
organisation provides for horizontal communication by means of right at any level to
consult or work with others at the same level. Communication among peers, in addition to
providing task coordination, also furnishes emotional and social support to the individual.
Horizontal communication is impeded in the organisation that overstresses functional
departmentalisation. The creation of functional departments or units creates problems of
coordination and communication between members of such units. Some companies
develop committee structure near the top level of the organisation to assist the chief
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executive in achieving coordination and better horizontal communication in terms of
control function in the organisation. Horizontal communication, if in operation at various
levels in an organisation, is a real check on the power of the top leaders.
Barriers in Communication
It is probably no surprise that managers frequently cite communication breakdown as one
of their major problems. The problem of communication arises because there are various
obstacles which may entirely prevent a communication, a filter part of it out, or give it
incorrect meaning. These obstacles are known as communication barriers. These barriers
may operate at the organisational communication as well as in non-organisational
communication. Different barriers of communication may be grouped as samantic barriers,
emotional or psychological barriers, organisational barriers, and personal barriers. Some of
these barriers operate in all types of communication while others may be more relevant for
organisational communication.
A. Semantic Barriers
Semantics is the science of meaning, as contrasted with phonetics, the science of sounds.
All communications are symbolic, that is, these use symbols words, picture, action, etc.)
that suggest certain meanings. Semantic barriers arise from limitations in the symbols with
which we communicate. Following types of semantic barriers are more prominent:
1. Symbols with Different Meanings: Communication symbols usually have a variety of
meanings, and we have to choose one meaning from many. In verbal communication, a
particular word may have a variety of meanings. For example, the English word 'round'
has 110 different meanings: as adjective — 23, as noun — 42, as verb — 16, as
preposition — 13, and as verb — 16. The 500 most common English words have an
average of 28 definitions each: Moreover, a particular word may give contradictory
meaning in different parts of the country. For example, the Hindi word 'Kaka' means uncle
in one part of the country but small boy in another part of the country. Similarly, non-
verbal yinbols may also have very different meanings to different persons. In such a
lsituation, often there is a possibility that the receiver of the symbols may attach quite
different meaning as compared to intended by the sender and communication breaks
down.
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2. Badly Expressed Message : Lack of clarity and precision in a message makes it badly
expressed. Poorly-chosen and empty words and phrases, careless omissions, lack of
coherence, bad organisation of ideas, awkward sentence structure, inadequate vocabulary,
platitudes, numbering repetition, jargons, failure to clarify implications are some common
faults found in this case.
3. Faulty Translations : Every manager receives various types of communication from
superiors, peers, subordinates and he must translate all .^formation destined for
subordinates, peers, and superiors into language suitable to each. Hence, the message has
to be put into words appropriate to the frame work in which the receiver operates, or it
must be accompanied by an interpretation which will be understood by the receiver. This
needs a high level of linguistic capacity. Approximate understanding of words and the
consequent faulty translations lead to impaired efficiency and heavy costs.
4. Unclarified Assumptions : There are certain uncommunicated assumptions which
underlie practically all meanings. Though a message appears to be specific, its underlying
assumptions may not be clear to the receiver.
5. Specialist's Language : It is often found that technical personnel and special groups tend
to develop a special, peculiar and technical language of their own. This increases their
isolation from others and builds a communication barrier. Whatever be the intention of
this special language, it hinders their communication with persons not in their speciality,
because of the receiver's ignorance of that type of language.
B. Emotional or Psychological Barriers
Emotional or psychological factors are the prime barriers in interpersonal communication.
The meaning ascribed to a message depends upon the emotional or psychological status of
both the parties involved. In a communication, apart from the message, there is a meta-
message, that is, what one gets out of a message when decoding. Meta message is the most
pungent thing or a sweet-word langauge. In getting a meta-message, the emotions of the
receiver play a vital role and he may not be at a wavelength as that of the communicator.
Keith Davis opines that these "exist in the people's minds or because of their actions such
as being hard to comprehend or difficult to understand. These barriers to communication
are just as effective as an actual physical wall. Often, these human barriers are more like
filter paper than a brick wall. They let through some communications but hold back others,
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thereby making communication inadequate. This half-way communication gets 'half-way'
results. Some emotional barriers are as folows :
1. Premature Evaluation: Rogers and Roethlisberger in 1952 first pointed out this barrier.
Premature evaluation is the tendency of prematurely evaluating communications, rather
than to keep an uncompromised position during the interchange. Such evaluation stops the
transfer of information and begets in the sender a sense of futility. This barrier can be
remedied by empathy, non-evaluative listening, where the communicator is listened to in a
non-committal and unprejudiced way so that sagacious decision and action can follow.
2. Inattention: The preoccupied mind of a receiver and the resultant non-listening is one of
the major chronic psychological barriers. It is a common phenomenon that people simply
fail to react to bulletins, notice, minutes, and reports.
3. Loss by Transmission and Poor Retention : When communication
passes through various levels in the organisation, successive transmission of the same
message are dccreasingly accurate. It has been found that in case of oral communications,
about 30% of the information is lost in each transmission. Even in case of written
communication, loss of meaning might occur as far as the appended interpretation, if any,
is concerned. Poor retention of the information is again a malady. It has been found that
employees retain about 50% of information only, whereas supervisors retain about 60% of
it.
4. Undue Reliance on the Written Word: Written word is not substitute for sound face-to-
face relationships and employees cannot be persuaded to accept companies viewpoints and
policies through 'slick', easy-to-read, well-illustrated publications, unless there is a fair
degree of rnutal trust and confidence between the organisation and its employees. Further,
a written communication might fail to explain the purpose of order, procedure, or
directive. Chester Barnard has laid down that a communication must appeal to the receiver
as consonant with the organisation's purpose and with his own personal interest. Written
communication often tells what is to be done, but not why it should be done, and it lacks
the persuasive quality. Moreover, a written communication can be above the level of
readership, and failure to ascertain the response to communication is also there. Hence,
written media must be considered as supplementary to productive face-to-face
relationships.
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5. Distrust of Communicator: It arises out of ill-considered judgements or illogical
decisions or frequent countermanding of the original communication by the
communicator. Repeated experience of this kind gradually conditions the receiver to delay
action or act unenthusiastically, hence making the communication unsuccessful, though
apparently it is complete.
6. Failure to Communicate : It is quite an accepted fact that managers often fail to
transmit the needed messages. This might be because of laziness on the part of the
communicator, or assuming that "everybody knows," or procrastination or "hogging"
information or deliberately to embarrass.
C. Organisational Barriers
An organisation being a deliberate creation for the attainment of certain specified
objectives, day-to-day happenings within it require being regulated in such a manner that
they contribute to attain these objectives in the most efficient manner. This is usually
attempted through a variety of official measures such as designing the organisational
arrangements for performance of various activities, prescribing various policies, rules,
regulations, and procedures, laying down of norms of behaviour, instituting a reward and
punishment system, etc. All the inner processes, including communication in different
directions, are markedly affected by these prescriptions. As such, major organisational
barriers may be as follows :
1. Organisational Policy : The general organisational policy regarding communication
acts as an overall guideline to everyone in the organisation regarding how he is normally
expected to behave in this matter. The policy might be in the form of explicit declaration
in writing, or, as is very commonly the case, it has to be interpreted from the behaviour of
organisational members, particularly people at the top. If this policy is not supportive to
the flow of communication in different directions, communication flow would not be
smooth and adequate.
2. Organisational Rules and Regulations : Organisational rules and regulations affect
the flow of communication by prescribing the subject-matters to be communicated and
also the channel through which these are to be communicated. These rules may restrict the
flow of certain messages and may leave many important ones uncommunicated. On the
other hand, communication through proper channel in a specified way prescribed by these
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rules delays it and works against the willingness of persons to convey the message. This
barrier is strongly operative in Indian public sector enterprises where observance of rules
and regulations is more rigid.
3. Status Relationships : The placing of people in superior/subordinate capacity in the
formal organisation structure also blocks the flow of communication and more particularly
in upward direction. Greater the difference between hierarchical positions in terms of their
status, greater would be the possibility of communication breakdown.
4. Complexity in organisation Structure : In an organisation where there are number of
managerial levels, communication gets delayed, chances of communication getting
distorted are more as the number of filtering points is more. This is more true in case of
upward communication, because people generally do not like to pass up the adverse
criticism either of themselves or of their superiors.
5. Organisational Facilities : Organisational facilities provided for smooth, adequate, clear
and timely flow of communication may take a number of forms. Some of these are in the
form of communication media such as meetings, conferences, complaint box, suggestion
box, open door system, social and cultural gatherings, etc. If these are not properly
emphasised, generally people fail to make effective communication.
D. Personal Barriers
While the organisational factors discussed above, no doubt are important influences
operating on communication, a host of factors internal to the two parties-senders and
receiver—to this process also exert important influences on its operation, as
communication is basically an interpersonal process. Hence, for the sake of convenience
in the analysis, these barriers have been analysed separately and these are relevant in the
case of downward and upward communication. I. Barriers in Superiors
The role of superiors in communication is very vital. Because of their hierarchical
relationships with subordinates, they act as barriers in a number of ways discussed below :
1. Attitudes of Superiors : The attitudes of superiors towards the communication in general
or in any particular direction affect the flow of message in different directions. For
example, if this attitude is unfavourable, there is greater possibility that message would not
flow adequately from and/or to superiors.
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2. Fear of Challenge to Authority: A person in the organisation always tries to get a higher
position and prestige to satisfy his needs. As such, managers in general try to withhold the
information coming down the line or going up as frequent passing of information may
disclose their weakness.
3. Insistence on Proper Channel: One of the basic features of superiors exercising the
authority is that they wish to remain in communication links and they do not like any type
bypassing in communication. Communication through bypassing may, sometimes, be
necessary but superiors treat this as thwarting of their authority and block the flow of
communication.
4. Lack of Confidence in Subordinates : Superiors generally perceive, correct or otherwise,
that their subordinates are less competent and capable, they are not able to advise superiors
or they may not have some information coming upwards.
5. Ignoring Communication : Sometimes, superiors consciously and deliberately ignore
the communication from their subordinates to maintain their importance. This works
against the willingness of subordinates to communicate.
6. Lack of Time : Superiors feel, whether correct or otherwise, that they are overburdened
with the work and they have little time to talk to their subordinates.
7. Lack of Awareness : Employees at lower levels have a number of communication
needs. Managers think that they understand employees' needs but their employees to not
think so. This difference in perception tends to exist at each level, thereby making
communication more difficult, particularly in downward direction.
II. Barriers in Subordinates
Vertical communication in either direction can take place only when subordinates also
actively participate in this process. There are various factors in the subordinates that
adversely affect such active participation on their part. Some factors which have been
traced in the case of superiors are also applicable here, such as attitude, time availability,
awarenes about the significance, etc. Two factors are more important in the case of
subordinates and these are responsible for blocking communication in upward direction :
1. Unwillingness to Communicate : Sometimes, subordinates do not communicate
upward certain information because they are not willing to do so. Thus, if a subordinate
feels that he is likely to be adversely affected by a particular piece of information to his
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superior, he would not be willing to supply it. Information going up is utilised for control
purposes and subordinates would not be willing to give any information to their superiors
about any unfavourable happening and if its supplication is necessary, they would modify
the information in such a way so as to protect their own interest.
2. Lack of Proper Incentive : Lack of motivation to communicate also refrains
subordinate to communicate upward. The reward and punishment system of the
organisation is more responsible for this. Thus, if a novel suggestion by a subordinate does
not evoke any attention from the organisation, he would not convey it.
How to Make Communication Effective?
As effective communicaton is essential for efficient management, every executive should
ensure effective communication in the organisation. Communication may never be perfect
in practice but effectiveness of communication can be increased by overcoming the
barriers that hinder the process of communication. The following principles are useful
guides for establishing good communication as they direct attention to the critical areas of
communication, namely, message quality, conditions for reception, maintenance of
integrity of organised effort and taking advantage of informal organisation.
1. Principle of Clarity of Message: Message is the body of communication and it can be
conveyed properly only if it is exprepssed clearly and precisely in the language of the
receiver. The sender must be familar with the language patterns of the receiver and he
must communicate in simple and commonly understood language. Clarity of
communication will overcome several barriers to communication, e.g., badly expressed
messages, faulty translations and unclarified assumptions. The contents of message should
not be vague, ambiguous or amenable to misinterpretation.
2. Completeness of Message: The message to be communicated must be complete and
adequate. Inadequate or incomplete message creates misunderstanding, delays action and
spoils mutual relations.
3. Understanding the Receiver : In order to communicate effectively, the communicator
must be fully aware of the total physical and human setting in which the message will be
received. He should understand the receptiveness and intelligence level of the receiver, his
social climate and customs. The sender must place himself in the position and
environment of the receiver while sending the message.
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4. Principle of Feedback : Feedback enables the communicator to know whether he is
properly understood by the receiver. The principle of feedback stresses upon the two-way
flow of communication. In case of face-to-face communication, feedback can easily be
obtained by observing the facial expressions and emotions of the listener. But in other
types of communication, the communicator will have to make special efforts to get the
response or reactions of the receiver to the message.
5. Principle of Attention : The receiver must pay full attention to the message in order to
understand it properly. He should listen carefully and should concentrate on it. This will
avoid loss in transmission and poor retention. In order to gain the exclusive attention of
the receiver, the sender must understand the mind, the social climate and the intelligence
level of the receiver. He must communicate with an awareness of the total physical and
human setting in which the information will be received. He should look through the eyes
of the receiver. The sender should encourage and receive the reaction carefully.
6. Principle of Integrity : All communications must be formed and transmitted in such a
way as to support the integrity of the formal organisation. The message must be consistent
with the objectives, policies and programmes of the enterprise. The message should not be
conflicting with the previous communications, otherwise it will create confusion and
chaos in the organisation. In case the new message is an amendment of the earlier one the
fact should be stated clearly.
7. Principle of Strategic Use of Informal Organisation : Managers should employ the
informal organisation to supplement and strengthen formal channels of communication.
Informal organisation can be used to correct misinformation and to transmit information
not appropriate for formal communication. Formal organisation is made for handling all
messages expeditiously and with understanding. Therefore, informal organisation should
be constructively used to increase the speed and efficiency of formal communication.
Steps for Making Communication Effective
When the communication is evaluated in the light of the criteria discussed above and
inadequacy is found, management must take appropriate actions to make communication
effective while actions may be specific in the light of the inadequacy, here, some general
guidelines have been provided for effective communication :
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1. Clarity in Idea : The communicator should be quite clear about what he wants to
communicate. Communication is a process starting with ideation which includes
generation of ideas meant for communication. This is the subject-matter of communication
and may include opinions, attitudes, feelings view, suggestions, orders, etc.
2. Purpose of Communication: Every communication has some purpose, the basic purpose
of any communication being to get behavioural response from the receiver of the
communication. However, the ultimate objective may be extended further, for example
getting an order acceptepd by the subordinate. The communication should be directed
towards this objective by the efforts of communicator.
3. Empathy in Communication : The way for effective communication is to be sensitive
towards receiver's needs, feelings and perceptions. This is what psychologists call empathy
in communication, implying putting one's legs in other's shoes, or projecting oneself into
the viewpoint of the other person. When the sender of the message looks at the problems
from receiver's point of view, much of the misunderstanding is avoided.
4. Two-way Communication : Communication is a two-way traffic and this fact must be
realised in communication. Two-way communication brings two minds together which is
the basic core of any communication. It involves a continuous dialogue between sender
and receiver of the message. Upward communication can become a reality in the
organisation and effective if this fact is recognised.
5. Appropriate Language : The subject-matter of communication is transmitted by
encoding it into some symbols. Such symbols may be in the form of words, either spoken
or written, gestures, and other. If the words are used, the language used for communication
should be such which is understandable by the receiver. Technical terminology and
multisyllable words may be impressive looking, but they can also be troublesome to the
listener. One way of making the communication simple is to use repetitive language with
which the receiver is quite familiar.
6. Supporting Words with Action : Often, it is said that action speaks louder than words.
While communicating, the sender may use the actions to emphasise a point. This enhances
the understanding as well as emphasises the important point in communication. Further,
the sender of the message must also follow in action what he says to others. This will
ensure the seriousness in communication.
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7. Credibility in Communication: One criterion for effective managerial communication
is that it has credibility or believability. The subordinates obey the order of the superior
because he has demonstrated through his competence that he is worthy of trust. He must
also maintain his trust and credibility. Thus, any communication which is based on this
trust and credibility will be followed by the subordinates.
8. Good Listening : A communicator must be a good listener too. By this process, he is
not only giving chance to others to speak but he gathers useful information for further
communication. By concentrating on the speaker's explicit and implicit meanings, the
managers can obtain a much better understanding of what is being said. Managers suffer
from some common habits of bad listening, though much of their communication time is
spent in listening. Newstrom and Davis have suggested ten points which may be observed
in listening. These are : stop talking, put the talker at ease, show the talker that you want to
listen to, remove distractions, emphasise with the talker, be patient, hold your temper, go
easy on arguments and criticism, ask questions, stop talking. They have emphasised stop
talking because without stopping talking, one cannot listen to.
Essentials of Sound Communication System
Effective communication is essential for successful management, Therefore, it is the duty
of every manager to ensure that there is no communication gap between him and his
subordinates. An effective system of communication should be developed so that there is a
smooth flow of information and ideas both upward and downward the chain of command.
A good communication system must satisfy the following requirements:
1. Clarity of Communication : The process of communication begins with a message.
The message must be as clear and unambiguous as possible. A message can be transmitted
effectively only when the communicator is clear in his mind about what he wants to
convey. The words and language used in the message must be simple and known to the
receiver. Every message must be directed to a purpose and a person.
2. Adequacy of Communication : The message must be complete both in terms of
contents and the information flow. Incomplete message will create misunderstanding and
inefficient action. Every subordinate must be provided with the information required for
the effective performance of his job.
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3. Consistency of Communication : The message must always be consistent with the
objectives and policies of the organisation. It should support the chain of command and
should not be contradictory to the earlier message. In case the new message is an
amendment of the old one, this fact should be stated clearly so that there is no confusion
among the receiver. The communication system must reflects the needs and character of
the organisation.
4. Proper Timing: All messages should be sent at the right time. A delayed
communication creates doubt and gives rise to rumours. The communicator can get the
desired response to his message only when it is conveyed at the right time.
Communication must be a continuous programme and each executive must consider it an
integral part of his job.
5. Feedback : It should be remembered that communication is a two-way process. The
communicator must make an attempt to find out the reaction or response of the receiver. In
direct personal communication, feedback is available on the spot but in other types of
communication, the sender will have to use some signals to get the feedback.
Communication must flow freely in both directions.
6. Economy: The cost of communication should be kept reasonable without sacrificing the
efficiency of communication. This can be done by avoiding unnecessary transmission. The
lines of communication must be as direct and short as possible.
7. Human Factor: While sending message the human relationships should be kept in
view. The sender must understand the world of the receiver. He should try to communicate
without causing injury to the sentiments of the receiver. Management must create a
climate of mutual trust and confidence. Management must tap the supervisor's knowledge
of what employees are doing and thinking.
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11 LEADERSHIP
Concept of Leadership
Leadership may be defined as the process by which an executive imaginatively guides,
directs and influences the behaviour of his subordinates by mediating between the
organisation and the individuals insuch a manner that both obtain maximum satisfaction of
their respective interests. According to James Cribbin, "managerial leadership is a process
of influence on a group in a particular situation at a given point of time and in a specific
set of circumstances that stimulate people to strive willingly to attain organisational
objectives, giving them the experience of helping to attain the common objective and
satisfaction with the type of leadership provided."
The foregoing description reveals the following features of leadership :
(i) Leadership is a process of influence exercised by the leader on group members. It
involves exercise of inter-personal influence. A successful leader is able to influence the
attitudes and behaviour of followers.
(ii) Leadership is a continuous process by which an executive guides, influences and
directs the behaviour of his subordinates.
(iii) Leadership is also a quality of behaviour and the people who possess this quality are
known as leaders.
(ivj Leadership is related to a particular situation at a given point of time and under a
specific set of circumstances. This implies that a leader may adopt different style or
behaviour to influence the subordinates under different conditions.
(v) Leadership involves reconciliation of organisational goals with individual goals. A
leader is considered successful when he is able to create a goal congru-ency in such a
manner that the group members enthusiastically work for the achievement of common
objectives.
(v) Leadership is a function of interaction between the 1 eader, the followers and the
situation. A person can be a successful leader when he is accepted by the subordinates.
Followers will be satisfied with the leaders's style when the leader acts as the
representative of the group and protects the interests of group members. The objective of
good leadership is to provide material satisfaction to the group as well as to its individual
members.
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Definition
Some of the definitions of Leadership are given below :
Koontz and O'Donnell said, "Leadership is generally denned as influence, the art of
process of influencing people so that they will strive willingly towards the achievement of
group goals."
Alien, "Leader is one who guides and directs other people. He must give effective
direction and purpose."
According to the Encyclopedia of Social Sciences, "Leadership refers to the relation
between an individual and a group around some common interest and behaving in a
manner directed or determined by him (the leader)."
George R. Terry says, "Leadership is the activity of influencing people to strive willingly
for mutual objectives."
In the words of Peter F. Drucker, "Leadership is the lifting of man's visions to higher
rights, the raising of man's performance to higher standards, the building of man's
personality beyond its normal limitations."
Robert C. Appleby defines, "Leadership is a means of direction, is the ability of the
management to induce subordinates to work towards group ideals with confidence and
keenness."
Alford and Beatty opines, "Leadership is the ability to secure desirable actions from a
group or followers voluntarily without the use of coercion."
Ordway Tead asserts, Leadership is that combination of qualities by the possession of
which one is able to get something done by others, chiefly because through his influence,
they become willing to do so."
Haimann Theo fact that, "Leadership can be denned as the process by which an executive
imaginately directs, guides and influences the work of others in choosing and attaining
specific goals by mediating between the individuals and the organisation in such a manner
that both will obtain maximum satisfaction."
Chester I. Barnard holds, "It (leadership) refers to the quality of the behaviour of the
individual whereby they guide people on their activities in organised efforts."
R. T. Livingston believes, "Leadership is the ability to awaken in others the desire to
follow a common objective." Need of Leadership
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1. Perfect Organisation Structure : An organisation structure cannot provide for all kinds
of relationships. That is why, informal relationships are made to exist within the
framework of formal organisation structure. But the organisation structure is complete or
perfect only with the help of effective leadership.
2. Directing Group Activities: The personal conduct and behaviour of a leader can direct
others to achieve organisational goals. The main responsibility of a leader is to get the
work done effectively by the followers. The followers cannot work hard and effectively
without leadership. A leader alone can guide the efforts and direct them towards the goal.
3. Technological, Economic and Social Changes : There is frequent change in technology,
economic and social structure in the present computer world. So, the organisation should
change its operation and style. This is possible only with the help of effective leadership.
If the changes do not take place, the organisation cannot survive.
4. Better Utilisation of Manpower : A leader treats with equal importance all the plans,
policies and programmes of an organisation. The plans, policies and programmes do not
work by themselves. There is a need for a leader. The leader implements the plans,
policies and programmes to utilise the available manpower effectively and get highest
production with minimum human effort.
5. Avoiding Imbalances : As an organisation grows in size and complexity with the
imbalances also increases. Complexity arises due to the introduction of new functions. The
reason is that the introduction of new functions result in increased levels of management.
So, there is a problem of command, coordination and control. A leader can tackle these
problems and maintain balances.
6. Sources of Motivation : Simply, the existence of leadership does not motivate the
workers. The leadership style should be utilised to motivate the workers according to the
situations prevailing in the organisation. The achievement of goals is doubtful in the
absence of leadership.
7. Reconciliation of Goals : An organisation has its own goals. The employees of the
organisation also have their own goals. They are working mainly for achieving their
personal goals instead of achieving organisational goals. An effective leadership can
reconcile the goals of organisation and employees. It is necessary for the success of an
organisation.
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8. Developing Good Human Relations: Human relations represent the relations between
the leader and the followers (subordinates). An efficient leader can develop the skill of the
followers and promote their sefl-confidence apart from motivation. Next, the leader
creates opportunity to show their abilities and induces the followers to work towards the
accomplishment of goals. In this way, the leader promotes the co-operative attitude of
workers and maintains better relations with them.
9. Promoting the Spirit of Co-ordination : A dynamic leader can coordinate the activities
of the subordinates. In an organisation, employees work in groups, so there is a need for
co-ordination among the group members. A leader promotes the spirit of coordination
among the workers.
10. Fulfilling Social Responsibilities : Social responsibilities refer to the high standard of
living to workers, ensuring higher productivity and income to the organisation, more
revenue to the government, resonable price to consumers and fair return on investment to
the investors. These can be achieved with the help of effective leadership. Only an
efficient leader can get work done to fulfil social responsibilities.
Leadership Vs. Management
Quite often leading and managing are considered as synonymous terms. Really speaking,
there are several differences between leadership and management.
1. Relationship: Management implies superior-subordinate relationship. This relationship
arises within organisational context. On the other hand, leadership can occur anywhere
within or without organisational context. For example, a mob can have a leader but not a
manager. Informal groups have leaders but not managers. In other words, leadership is
possible in both formally organised as well as unorganised groups. But management is
possible only in formal and organised groups. The followers of a leader are not necessarily
his juniors or subordinates. They may be leader's peers, associates and even seniors.
2. Source of Influence: A manager is appointed and he obtains authority from his
position. He makes use of his formal authority to influence the behaviour of his
subordinates. On the contrary, a leader is not always appointed and he derives his power
from his followers who accept him as their leader. A leader makes use of this power to
influence the attitudes and behaviour of his followers.
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3. Sanctions: A manager has command over the allocation and distribution of rewards
(positive sanctions), e.g., promotion and punishments (negative sanctions), e.g., demotion.
On the other hand, a leader has command over social satisfaction and related task rewards.
Organisational sanctions exercised by a manager are geared to meet the physiological and
security needs. But informal sanctions exercised by a leader are geared to meet social and
ego needs.
4. Basis of Following : Both managers and leaders have followers. But the people follow
them for different reasons. People follow a manager because they are required to follow by
their job description supported by a system of rewards and penalties. On the contrary,
people follow the leader on voluntary basis. If there are no followers there can be no
leader. But a manager may be there even if there are no followers but only subordinates. A
manager may continue in office so Jong as his performance is considered satisfactory,
whereas a leader can survive as long as followers accept him.
5. Accountability : A manager is accountable for his own behaviour as well as for the job
behaviour of his subordinates. His accountability for performance is clearly denned. But
there is no clear-cut accountability relationship in leadership as a leader is not accountable
for his behaviour in the same way. A manager seeks to achieve organisational goals but a
leader is more concerned with group goals and members' satisfaction.
6. Functions: A manager performs all the functions of planning, organising, staffing,
directing and controlling. On the other hand, the main job of a leader is to guide and
inspire the efforts of his followers. Leadership is one aspect or element of directing. All
management needs leadership but leadership may exist without management. Leadership
is an instrument of management but its content is neutral to management. Leadership is
more a universal attribute than management.
"A leader need not be a manager but a manger must have many of the qualities of a
good leader." This statement has two implications. First, a leader need not be formally
appointed or elected. He can be a successful leader if people accept him wholeheartedly.
For example. Mahatma Gandhi was successful in leading the Indian people to freedom
without occupying a formal position. Even formally elected leaders like Jawahar Lai
Nehru and Sardar Patel sought his advice and guidance regularly. This was because people
had faith in Gandhiji. Secondly, a manager can be more successful if he possesses the
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quality of leadership. With the help of his formal authority, he can obtain only an average
or ordinary performance from employees. With leadership he can arouse cooperation and
compliance beyond the normal call of duty. In order to secure outstanding work
performance from his people, a manager requires power of acceptance of authority.
Ability to lead is one of the keys to being an effective manager. A manager can no doubt
get some results through his positional authority. But these are liekly to be far inferior to
what he can achieve if he adds the ingredient of effective leadership. Since managers get
things done through people, their success depends to a great extent upon their ability to
provide leadership. Therefore, every manager should cultivate or acquire leadership
qualities.
To conclude, leadership is the essence of being a good manager. Significance of
Leadership
History is full of examples of how organisations and nations have attained extraordinary
success with the help of outstanding leaders. More failures of business are attributable to
poor leadership than to any other cause. Poor leadership can nullify the soundest
organisation. It is the quality of leadership that determines the fate of an organisation. The
leader is the agent who helps smoothen the pathway towards goal accomplishment. There
is no substitute for effective leadership.
The significance of leadership is reflected in the following functions :
1. Setting Goals : A leader lays down the targets which he and his people have to attain.
He explains the goals to his subordinates and outlines the ways and means of achieving the
set goals.
2. Motivating Employees: A dynamic leader breathes life into the group and makes people
eager to work towards the achievement of group goals. He gives character to the group
and sets the tone of the organisation. According to Terry, "the will to do is triggered by
leadership and lukewarm desires for achievement are transformed into a burning passion
for successful accomplishment by the skillful use of leadership." Sound leadership creates
an urge for accomplishment and transforms potential into performance. A good leader
improves the loyalty and commitment of employees towards the organisation. The leader
creates and maintains an environment conducive to high performance. Good leadership
itself is a motivating force for individuals which inspires people to work hard.
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3. Building Morale : Good leadership is indispensable to high employee morale. The
leader lifts a man's vision to higher sights, raises his performance and builds up his
personality. He shapes the thinking and attitudes of the group and maintains discipline. He
deveops good human relations and facilitates interactions between the members of the
group. He maintains voluntary cooperation and discipline among his followers.
4. Creating confidence: An effective leaders generates and sustains self-confidence and
enthusiasm among his followers. He provides advice and guidance by which subordinates
can recognise their qualities and capacity. A leader acts as a coach and counsellor to his
subordinates. He sets an example for others. Leadership serves as an aid to formal
authority in obtaining desired results from subordinates. A good leader acts like a father
and members gain strength and security by identifying themselves emotionally with him.
He serves as a friend, philosopher and guide to his followers.
5. Maintaining Discipline: Discipline is the force that encourages individuals to observe
rules, regulation and procedures which are necessary for the attainment of objectives. It
restrains chaos and destructive activities. A leader depends more on consistency of
behaviour and impartial treatment to enforce discipline. He makes less use of penalties for
violation of regulations and focuses more on self-discipline or voluntary restraint.
6. Developing Teamwork: Leadership helps to unify individual efforts. Leadership is the
cohesive force which holds the group intact, the force that transforms chaos into order, the
disciplinary power that keeps the group working towards the goal, the electric current that
energises human action and the insight that converts despair into hope and changes half-
hearted endeavour into superior performance. A good leader fosters mutual understanding
and team-spirit among his followers. He creates a community of interested people fay
harmonising organisational goals and individual interests of the subordinates. He resolves
internal conflicts by serving as an arbitrator and mediator between the opposing factions.
7. Facilitates Change: Leadership is the mechanism to convince people about the need for
change. Dynamic leadership is the corner-stone of organisational change and
development. "In a world of change and uncertainty, the business leader becomes a vital
element in the very process of change itself."
8. Representing for Group : A leader is the true representative of his followers both to
those working for the group as well as the outside world. He serves as their spokesman
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and guardian. He carries the voice of his people to various authorities. According to
Rensis Likert, leaders act as linking pin between the work group and the forces outside it.
To sum up, leadership is a cohesive force which holds the group intact, the disciplinary
power that keeps the group working, the electric current that energises human action, the
insight that converts despair into hope. In fact there is no substitute for effective
leadership. Formal and Informal Leaders
Leaders exist in both formal and informal groups. A formal leader is the one who
possesses organisational authority to direct and control the activities of his subordinates.
He can issue orders and instructions due to his formal authority in the organisation. He is
accountable to those who have elected him in a formal way. Formal leaders are those who
appointed or elected to manage an organisation. However, a formal (appointed) leader
cannot depend solely on the use of authority because subordinates seldom put maximum
effort under the pressure of authority. A top manager having considerable authority but
lacking leadership qualities is likely to be less effective than a supervisor with little
authority but high degree of leadership qualities.
Informal leaders are not appointed or elected but emerge in informal groups. They do not
possess formal authority but they influence the members of the group because followers
believe that the leader can provide them satisfaction. Research on small groups reveals
that members of a group perceive the informal leader as the man who can best satisfy the
needs and interests of the group. Members submit to his guidance because theyfeel that he
can help them to satisfy their needs. Formal leadership is institutional while informal
leadership is personal.
When a formal leader is unable to identify himself with the aspirations of the group, he
remains only a position holder, in such a situation, informal leaders become more
acceptable or influential to the employees as compared to the formal leaders. The formal
leaders fail to achieve the voluntary cooperation of subordinates. A work group may have
different leaders for different purposes. The members of work group may seek the
guidance of the formal leader, e.g., the supervisor with respect to organisational goals and
may accept one of the members as their informal leader for fulfilling their psychological
needs.
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Within a formal organisation, there may exist several informal leaders working for the
interests of their own groups. There may be a conflict between their interests. Very often
management tries to eliminate informal leaders. This not only antagonises the informal
leader but reduces the morale of the group.
Informal leaders can create an impulse in the organisation due to their influence on group
members. Therefore, it is better to build up good relations with informal leaders. This can
be done by associating informal leaders in the decision-making process. Their advice can
be sought on human relations problems and they may be supplied with necessary
information. Functions of a Leader
The functions of a business leader are briefly explained below :
1. Taking Initiative : A leader has to take all initiatives to lead the business activities. He
should not expect others to induce him to take initiative. He himself should come in the
field and take all necessary steps to achieve predetermined targets.
2. Representation : A leader is a representative of an organisation. The leader represents
the purpose of organisation to workers and outsiders.
3. Guide: The leader has the primary duty of guiding others. Proper direction should be
given by a leader. If he does not do so, the organisation will not succeed. The leader
should issue instructions and orders whenever needed. These instructions and orders
should be properly communicated.
4. Encouraging Others : The leader is the captain of a team. The leader must win the
confidence of his colleagues before winning in a competition. The leader cannot succeed
without teamwork. Encouragement is necessary to build up teamwork.
5. Arbitrator and Mediator: The leader can settle the disputes arising among the workers.
Besides, he can create a smooth relationship among the workers. He performs these duties
in a friendly manner. Generally, people accept friendly advice. Sometimes, the leader can
act as a friend.
6. Planner : The type of activities or type of work is to be decided by the leader. The leader
can decide when a work is to be done, where it should be done and by whom it should be
done. The planning work is completed by the leader.
7. Rewards and Punishments: There is a standard time for some set of works. Some
workers perform their work properly within a standard time. The leader can give rewards
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to those who have completed the work as per the standard. The leader can punish the
worker who does not complete the work as per the requirements of job.
8. Integration: Each individual does a part of a whole work. They perform the work
according to their specialisation. Here, there is a need for integration. So the leader
integrates the efforts of all workers. In this way, integration is one of the functions of the
leader.
9. Communication : Communication is necessary to every organisation. Nothing will
succeed without effective communication. An effective communication system conveys
the authority and responsibility of each individual so that he may come to know what he
has to do and what not. An individual understands his authority and responsibility from
organisational policies, procedures and programmes. The leader should arrange for an
effective communication system in an organisation.
10. Production : A leader is expected to show high production figures. A production
oriented style should be followed by the leader. He should take all necessary steps to
increase production.
A leader should have some leadership qualities in order to provide effective leadership.
According to Henry Fayol, a leader should have the qualities of: (i) health and physical
fitness, (ii) mental vigour and energy, (iii) courage to accept responsibility, (iv) steady,
persistent thoughtful determination, (v) sound general education, and (vi) management
ability embracing foresight and the art of handling men.
The important qualities of a leader are discussed below :
1. Physical Appearance and Strength : The leader has to put in hard work physically. He
should have a capacity to work for longer hours than others. It proves the diligence of the
leader to his followers easily.
2. Mental Vigour : The leader should also be strong mentally. It means that the leader is
expected to withstand strain involved in finishing the work properly.
3. Emotional Stability : The leader should not be moved by emotions or sentiments. He
should analyse the problem rationally and take a decision without bias. The leader should
not have short temper. Besides, he should show firmness in his decision and not show
despair or indecision on his face.
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4. Sense of Judgement: A leader should know the human psychology. He should
understand the behaviour, needs, thoughts, motives etc. of his followers. This will help
him to take a strategic decision and get it recognised by his followers. Besides, he can set
right his actions.
5. Goodwill: A leader should be able to understand the feelings of others. He takes
decision on the basis of expectations of his followers. If he does not do so, he will not win
the goodwill of his followers.
6. Motivation : A leader should know the motivation techniques and how to use them. If a
person is forced to do his job under the threat of getting punishment, he will not perform
his work properly. At the same time, if the same person is motivated, he will perform his
job more than the expectations of his leader.
7. Communication Skill: Whatever information is needed by workers, it should be passed
through the leader. So, the leader should communicate the information to the
workers.Now, the leader is acting as an effective speaker and writer. If the leader has
communication skills, he will direct his followers effectively.
8. Guiding Ability : The leader acts as a teacher to new workers. So the leader helps his
followers to learn to do their work. He should train the workers by work and action to
complete the job effectively.
9. Sociability : An able leader can easily mingle with the workers. The workers should be
encouraged to discuss their problems and difficulties with their boss. The leader should
also meet the workers frequently. The leader should show his keen interest to develop the
ability of workers.
10. Technical Knowledge: A leader should possess a thorough knowledge of the theory
and practice of his job. Besides, he should know the current developments in his job along
with technical knowledge. For example, a computer department manager should know all
the latest developments in computers.
These are some qualities of a leader. Besides, he should be honest and fair. Since fair and
honest people are mostly liked by others and their leadership is accepted by one and all.
Types of Leaders
Leadership cannot exist without followers. The characteristics of the followers play vital
role in the exercise of leadership. The behaviour of a leader is based on the maturity levels
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of the followers. Here, maturity level refers to job enrichness and psychological maturity
(motivation) of followers. Thus, the leader has to adopt task behaviour if he has followers
having low maturity level then he has to tell them what, when, where and how the given
work is to be completed. In other words, if the leader has high level maturity followers, he
can assign the entire work along with freedom to complete the work.
The types of leaders are classified on the basis of behaviour of leaders. They are briefly
explained below :
1. Autocratic Leader: An autocratic leader is the one who wants to run the organisation all
by himself. He frames the objectives of the organisation and requires the followers to
achieve the objectives. These objectives are expected to be achieved within the time limit
fixed by him. Besides, he gives specific directions to his followers and he is to be
regularly informed about the progress in work.
An autocratic leader thinks that his followers do not have much ability to do a job
effectively. So, he avoids discussions with his followers regarding job completion. The
leaders does not delegate any authority to his followers. He maintains close supervision
and control over his followers. He uses the technique of giving rewards and/or
punishments to his followers. If any follower completes his job according to the
expectations of the leader, he will be rewarded. On the other hand, if any follower fails to
complete his job as per the requirements, he will be penalised and the punishment may be
in the form of punitive action or dismissal.
2. Intellectual Leader: A leader wins the confidence of his followers by his intelligence.
Generally, the advice of a leader is sought in big business concerns. He gives advice on
the matter in which he is expert. He may be a specialist in sales, personnel management
and the like. He gets results through others. He excels as a leader because he uses his
superior knowledge.
3. Liberal Leader : A leader is the one who permits his followers to do their job
whatsoever way they want to do. The leader does not frame any policy or procedure which
the followers are expected to follow in doing their jobs.
The liberal leader would not exercise any influence over his followers and vice versa.
Wide scope and opportunities are available for free discussion which aims at performing
the job effectively. The followers should have a high degree of maturity. High degree of
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maturity means the followers have both the ability and willingness to work. If the
followers have low maturity, the leader cannot succeed in his position. In other words,
whenever the liberal leader has low maturity followers, he is not able to make his
followers understand what, how, when and where to perform.
4. Democratic Leader : A leader acts according to the wishes of his followers. The leader
does what his followers want. The leader frames the policy or procedure according to the
opinion of the majority of his followers. He acts as a representative of his follwers to
management. The leader holds his leadership because he is loyal to his followers. He is
always interested in protecting the interests of his followers. The leader is a friend of his
followers and he is helpful to them.
5. Institutional Leader: A leader exercises his power over his followers because of the
position held in the organisational hierarchy. He exercises authority with which his post is
vested. The leader can control the activities of his followers in order to achieve the
objectives.
The leader may or may not be. an expert in his field. If he is an expert, he will have
relationship behaviour with his followers. If he is not so, he has task behaviour with his
followers. The followers prefer relationship behaviour to task behaviour. Whenever the
leader adopts task behaviour, the followers get frustrated.
6. Inducing Leader : The inducing leader is one who influences his followers with his
personality and persuades them to join him in doing a work. He loves and is loved by his
followers. The followers have confidence in him and want to earn his goodwill.
The leader gets things done by others through speaking nice words. The whole gang
responds to the words of the leader.
7. Paternal Leader: An individual who has become the leader in the place of his father as
leader has close relationship with his followers and comes to their rescue very often.
Paternal leader has job maturity followers only. The reason is that the followers may be
lacking only in their psychological maturity. They are not permitted to show their
initiative. The leader lays certain conditions under which the followers are expected to
work. So the followers are not aware of their full potential.
8. Creative Leader: The creative leader is one who encourages his followers to suggest
new ideas, thoughts or ways. Sometimes, the leader himself puts forward new ideas.
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Whenever more than one new idea flows from the group, the leader will select the best
among them without personal bias. His controls his followers just like other leaders and
makes them to achieve the specific goals. According to Ordway Tead, the followers adopt
the big idea but not the big leader.
Techniques of Leadership
A leader can use techniques to extract work from his followers. Some of the techniques
are discussed below :
1. Securing Co-operation : A leader should get co-operation from his followers. Unless
he enlists their co-operation, he cannot succeed. There must be a willingness on the part of
both parties. The leader must convince all follower to extend their co-operation. Both
leaders and their followers must have interest in the growth of an enterprise. First, the
leader himself extends his co-operation to his followers. The leader must treat his
followers as co-workers and not as subordinates.
2. The Use of Power: Leadership goes with power. It cannot exist without power. So the
leader must use his power which subsequently results in getting things done by others. At
the same time, the leader should use power only to safeguard the interests of the
enterprise. Some leaders expect more powers than required. It is not advisable. On the
other hand, a leader can achieve the goals with the available power.
3. Co-ordination : A leader can co-ordinate the activities of his followers through orders
or commands. Definite, flexible and open orders alone co-ordinate the activities. Definite
order means that an order is not oral and the terms used in definite order have
unambiguous meaning. In the case of flexible order, only goals are communicated. Next,
the followers achieve the goals by using the pre-determined time. A leader specifies the
goals and leaves the other details to his followers in the open order.
An order fulfils its purpose only when it is properly received and understood. The receiver
must know the expectation of the issuer. Then only proper results will be obtained.
4. Discipline : Discipline is nothing but the adherence to rules, regulations and procedures.
Discipline should be maintained to achieve the objectives.
Individuals are restricted from doing things which are detrimental to the group interests. If
a particular follower is violating the rules, he may be penalised. The very success of
leadership and organisation depends upon the maintenance of discipline.
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5. Morale : Leighton has defined morale, as the capacity of a group to pull together
persistently and consistently for a common goal. "Morale is the attitude of an individual
and group growing out of the conditions under which he or they complete the job
effecitvely." The leader should create confidence in the minds of his followers. Here,
confidence is necessary to both the leader and the followers. A leader has confidence in
his followers and vice versa. Mental maturity plays an important role in creating
confidence. Having confidence ensures effective performance of a job. Characteristics of
Leadership
Following are some of the characteristics of leadership :
1. There Must be Followers : A leadership cannot exist without followers. If a leader does
not have followers, he cannot exercise his authority. Leadership exists both in formal and
informal organisations.
2. Working Relationship between Leader and Followers: There must be a working
relationship between the leader and his follwers. It means that the leader should present
himself at a place where the work is actually going on. Besides, the leader should be a
dynamic person of the concerned group. If he is not so, he cannot get things done.
3. Personal Quality: The character and behviour of a man inlfluence the works of others.
4. Reciprocal Relationship : Leadership kindles a reciprocal relationship between the
leader and his followers . A leader can influence his followers and, in turn, the followers
can influence the leader. The willingenss of both the leader and the followers is
responsible for the influence to do the work and no enforcement is adopted.
5. Institutional Leader: A leader exercises his power over his followers because of the
position held in the organisational hierarchy. He exercises authority with which his post is
vested. The leader can control the activities of his followers in order to achieve the
objectives.
The leader may or may not be an expert in his field. If he is an expert, he will have
relationship behaviour with his followers. If he is not so, he has task behaviour with his
followers. The followers prefer relationship behaviour to task behaviour. Whenever the
leader adopts task behaviour, the followers get frustrated.
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6. Inducing Leader : The inducing leader is one who influences his followers with his
personality and persuades them to join him in doing a work. He loves and is loved by his
followers. The followers have confidence in him and want to earn his goodwill.
The leader gets things done by others through speaking nice words. The whole gang
responds to the words of the leader.
7. Paternal Leader: An individual who has become the leader in the place of his father as
leader has close relationship with his followers and comes to their rescue very often.
Paternal leader has job maturity followers only. The reason is that the followers may be
lacking only in their psychological maturity. They are not permitted to show their
initiative. The leader lays certain conditions under which the followers are expected to
work. So the followers are not aware of their full potential.
8. Creative Leader: The creative leader is one who encourages his followers to suggest
new ideas, thoughts or ways. Sometimes, the leader himself puts forward new ideas.
Whenever more than one new idea flows from the group, the leader will select the best
among them without personal bias. His controls his followers just like other leaders and
makes them to achieve the specific goals. According to Ordway Tead, the followers adopt
the big idea but not the big leader.
Leadership Styles
The behaviour pattern exhibited by a leader while influencing the followers is known as
leadership style. On the basis of how leaders use their power, leadership styles can be
classified into three broad categories autocratic, consultative and free-rein.
1. Autocratic or Authoritarian Leadership
An autocratic leader exercise complete control over the subordinates. He centralises power
in himself and takes all decision without consulting the subordinates. He dominates and
drives his group through coercion and command. He loves power and never delegates
authority. The leader gives order and expects the subordinates to follow them
ungrudgingly and unquestionably. He uses rewards and holds threat of penalties to direct
the subordinates. He does not delegate authority.
Advantages
(i) Autocratic leadership permit quick decision-making
(ii) It provides strong motivation and satisfaction to the leader who dicates terms.
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(iii) Less competent subordinate are needed at lower levels.
(iv) The style may yield positive results when great speed is required.
Disadvantages
(i) Autocratic style leads to frustration, low morale and conflict among subordinates.
(ii) Subordinates tend to shirk responsibility and initiative.
(iii) Full potential of subordinates and their creative ideas are not utilised.
(iv) Organisational continuity is threatened in the absence of the leader because
subrodinates get no opportunity for development.
Autocratic leadership style is appropriate when subordinates are uneducated, unskilled and
submissive. Lack of knowledge and experience on the part of subordinates makes it
necessary that the leader takes decisions himself. This styles may also be desirable when
the company endorses fear and punishment as accepted disciplinary techniques. When a
leader prefers to be dominant in decision-making and there is little room for error in final
accomplishment, autocratic leadership may enhance morale and improve productivity.
These days autocratic leadership style is becoming less desirable as employees are
becoming more educated and well-organised
2. Democratic or Participative Leadership
A consultative or democratic leader takes decisions in consultation and with participation
of the subordinates. He decentralises authority and allows the subordinates to share his
power. The leader does what the group wants and follows the majority opinion. He keeps
the followers informed about matters affecting them. A democratic leader provides
freedomof thinking and expression.He listens to the suggestions, grievances and opinions
of the subordinates. Advantages
(i) Consultative leadership improves the job satisfaction and morale of subordiantes.
Autocratic
Democratic
Laissez faire
Fig.: Leadership Styles Consultative leadership is considered to be more effective than
autocratic style though there is no empirical proof for this. Consultative style is more
compatible with the prevailing value system which favour freedom of expression and
independent thinking. The choice of leadership style depends upon the immediate goal and
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on the subordinates. If the immediate goal is increase in productivity or subordinates have
low need for independence, autocratic style may be preferable. But when the goal is job
satisfaction and employees have a high need for independence, consultative style may be
more effective. Consultative style is also appropriate where subordinates have accepted
the goal of the organisation and the leader really wants to share decision-making with the
subordinates.
3. Free-rein or Laissez-faire Leadership
Free-rein leadership involves complete delegation of authority so that subordinates
themselves take decisions. The free-rein leader avoids power and relinquishes the
leadership position. He serves only as a 'contact' to bring the information and resources
needed by the subordinates.
Advantages
(i) Positive effect on job satisfaction and morale of subordinates.
(ii) Maximum possible scope for development of subordinates.
(iii) Full utilisation of the potential of subordinates.
Disadvantages
(i) Subordinates donot get the guidance and support of the leader.
(ii) It ignores the leader's contribution just as autocratic style ignores the contribution of
the subordinates.
(hi) Subordinates may move in different directions and may work at cross purposes which
may generate chaos.
Free-rein style may be appropriate when the subordinates are well-trained, highly
knowledgeable, self-motivated and ready to assume responsibility.
Leadership Continuum
Tennenbaum and Schmidt have developed the concept of leadership continuum to
highlight the range of possible styles as shown in fig. At the left end of
Table: Comparison between Leadership Styles
Points of
Comparison
1. Decisionmaking
2. Communication
Acutocratic Style
Leader sole decision
maker
One-way (down-
Consultative Style
Leader makes de-
cisions in consul-
tation with subor-
Free-rein Style
Subordinates
themselves make
decision
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3. Motivation
techniques
4. Nature of
discipline
5. Authority
delegation
6. Orientation
7. Needs
8. Opportunity to
subordinates
9. Focus 10. Role of
leader
ward) communica-
tion
Fear and punishment
(negative incentives)
Implicit obedience
of orders and in-
structions
Strict supervision
and control. No
delegation Task-
oriented style
Physiological and
safety
No scope for initia-
tive and creativity T
style. Leader centred
Provided direction
dinates
Two- way commu-
nication
Reward and in-
volvement (positive
incentives)
Intercharge of ideas
and recognition of
human values
Delegation of au-
thority
People-oriented
style
Ego needs
Scope for initiative
creativity W Style.
Group centred
Maintains teamwork
Free flow of com-
munication
Self-direction and
self-control
Self-discipline or
control
Complete delegation
of authority
People-oriented
style
Self-actualisation
needs
Full scope for ini-
tiative and creativity
Tou' style.
Individual centred
Provide support and
resourcess.
the Continuum is the 'boss-centred' (autocratic) ledership style while at the right end is the
subordinate-centred (free-rein) style. As one moves from the left extreme to the right
extreme, the degree of control goes down and the freedom of subordinates goes up.
1. Manager Makes Decision and Announces It: It is an extreme form of authocratic
leadership whereby the boss takes the decision and asks the subordinates to implement it.
2. Manager Sells the Decision : In this style the boss alone takes the decision and
persuades the subordinates to accept it.
3. Manager presents Ideas and Invites Questions: This style involves greater
involvement of subordinates. The boss arrives at the decision and asks subordinates to
express their views on it.
4. Manager presents Tentative Decision Subject to Change: Herein the boss takes
tentative decision and modifies it in the light of views expressed by the subordinates.
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5. Manager Presents Problems, Gets Suggestions and Takes Decision : In this case the
boss takes the decision after hearing the suggestions from subordinates.
6. Manager Defines the limits and Asks the Group to Make Decisions : Under this
style of leadership, the boss gives the freedom to subordinates to take decision subject to
pre-determined limits.
7. Manager Permits Subordinates to Function within the Limits Defined by Him :
This style involves full participation of subordinates. The boss defines overall limits.
Subordinates are free to decide and act within these limits.
The continuum approach to leadership provides a wide range of leader behaviours. It
identifies the behavioural alternatives available to a manger and highlights the dynamic
nature of leadership. It also suggests that the leadership style should be adapted to the
requirements of the particular situation. While choosing the appropriate style, a manager
should consider the following-factors:
1. Forces in the Manager: Manager's value system, his confidence in the subordinates,
his leadership inclinations and his tolerance of ambiguity.
2. Forces in the Subordinates : Subordinates need for independence, their tolerance for
ambiguity, their willingness to assume responsibility for decision making, their interest in
and understanding of problems, their understanding of and identification with
organisational goals, their experience with and expectations from leadership.
3. Forces in the Situation : Type of organisation, nature of problems, group effectiveness,
time pressure, etc.
Managerial Grid
Robert Blake and Jane Mouton propounded the concept of managerial grid. This is a two
dimentional model containing five combinations of leadership behaviour.
Impoverished-1,1-Low Concern for Production and Low Concern for People: Under this
exertion of minimum efforts is required to get the work done and sustain organisation
membership. The leader avoids controversy and confrontation. He is apathetic and
irresponsible. His attitude towards getting things done and maintaining relationship is
casual and confused.
Country Club Leadership-1, 9-Low Concern for Production and High Concern for People:
In this combination, the leader takes great interest in keeping his people in good humour
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and in catering to their needs. He tries to maintain friendly relations with people so that an
amicable climate will motivate people to work with enthusiasm.
Task Leadership-9, 1-High Concern for Production and Low Concern for People : This is
an antithesis of country club leadership. The leader adopts a directive style to get his
people work for the organisation. His focus is on task performance by planning and
controlling the production environment.
Middle of the Road Leadership-5,5-Moderate Concern for Production and People : This is
a safe style, not to push too much in either direction but to achieve a satisfactory balance
between the requirements of production and of people.
Team Leadership-9,9-High Concern for Production and People: This is regarded as the
most effective leadership. An attempt is made to bring about an integration and harmony
between the needs of people and of production.
The managerial grid can be used to enable managers to identify their current leadership
behaviour. Managers who are found to have low concerns for people and for production
can be given training to help them to move on to 9, 9 style. The grid approach is useful not
only for leadership training but organisational development also.
The grid approach is popular among managers. But it is highly controversial among
theorists due to lack of empirical evidence. It is an attitudinal and conceptual description
of leaders because it measures the values of managers. It does not tell why a manager fails
in one part or the other of the grid. In reality extreme positions shown in the grid are
seldom found in their pure form. Situational Leadership
It is clear from the foregoing description that leadership is a product of many forces that
act and iteract simultaneously. Every manager must achieve some degree of integration of
these varying and complex forces otherwise a void in his leadership may arise. An
integrated model of leadership has been proposed by George Terry. This model is
presented in the following fig. It shows that leadership is made up of four main variables :
1. The Leader : Leader's personal values (deep beliefs and convictions) shape his
perceptions and behaviour. Leader's confidence in the group members, extent of power
sharing and general circumstances the leader prefers are important characteristics. Leader's
awareness of self is also significant.
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2. The Followers : The forces within the followers include identification with the leader's
objectives, interest and involvement in solving problems, knowledge and experience, need
for independence, etc.
3. The Organisation : Nature and type of organisation exercise significant influence on
leadership. When the degree of interdependence between specialised units is high, the real
relationships are essential for coordination. This is because the followers tend to centre
their attention in their own work and do not see the impact of their actions on others.
Similarly, when technology governs the degree to which the task is structured. In case of
highly structured tasks, the leader has more influence because employees' work behaviour
is specified and major decisions are centralised. Standard operating instructions and
detailed manuals are provided and little is left for the group members to decide. When the
task in uncertain a permissive and passive leadership tends to be more effective because
exact make-up of work is unknown.
4. The Environment: Leadership should be in harmony with the external environment.
Social values, economic and political conditions, etc. bring about changes that lead to a
redefinition of acceptable and effective leadership. Approaches or Theories of Leadership
Many of the research studies, particularly by behavioural scientists, have been carried on
to find out the answer to the question : What makes a leader effective? Is his success due
to his personality, or his behaviour, or the types of followers he has, or the situation in
which he works, or a combination of all these? These researches, however, could not give
a satisfactory answer to the question. Instead these researches have resulted in various
theories or approaches on leadership, the prominent among these being trait theory,
behavioural theory and situational theory. Each theory has its own contributions,
limitations, assumptions and framework of analysis. The understanding of the various
theories of leadership will provide a guideline to judge as to how a leader emerges. 1. The
Trait Approach
Trait is defined as relatively enduring quality of an individual. The trait approach seeks to
determine "what makes a successful leader" from the leader's own personal characteristics.
Various research studies have given intelligence, attitudes, personality and biological
factors. A review of various research studies has been presented by Stogdill. According to
him various trait theories have suggested these traits in a successful leader : (i) physical
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and constitutional factors (height, weight, physique, energy, health, appearance); (ii)
intelligence; (iii) self-confidence; (iv) sociability; (v) will (initiative, persistence,
ambition); (vi) dominance; (vii) surgency (talkative, cheerfulness geniality, enthusiasm,
expressiveness, alterness, and originality). The various traits can be classified into innate
and acquirable traits on the basis of their source.
Innate qualities are those which are possessed by various individuals since their birth.
These qualities are natural and often known as god-gifted. On the basis of such qualities, it
is said that "leaders are born and not made." These qualities cannot be acquired by the
individuals. The following are the major innate qualities in a successful leader.
1. Physical Features : Physical features of a man are determined by hereditary factors.
Heredity is the transmission of the qualities from ancestor to descendant through a
mechanism lying primarly in the chromosomes of the germ cells. Physical characteristics
and rate of maturation determine the personality formation which is an important factor in
determining leadership success. To some extent, height, weight, physique, health and
appearance are important for leadership.
2. Intelligence : For leadership, higher level of intelligence is required. Intelligence is
generally expressed in terms of mental ability. Intelligence, to a very great extent, is
natural quality in the individuals because it is directly related with brain. The composition
of brain is a natural factor, though many psychologists claim that the level of intelligence
in an individual can be increased through various training methods.
There are some persons who believe that most of the human qualities are partly natural
and partly a matter of acquisition through training; however, the major role in such cases
is played by environment and the various training programmes.
Acquirable qualities of leadership are those which can be acquired and increased through
various processes. In fact when a child is born, he learns many of the behavioural patterns
through socialisation and identification process. Such behavioural patterns are developed
among the child as various traits over a perod of time. Many of these traits can be
improved through training programmes. Following are the major qualities essential for
leadership :
1. Emotional Stability : A leader should have high level of emotional stability. He should
be free from bias, should be consistent in action, and refrain from anger. He is well
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adjusted, and has no anti-social attitudes. He is self-confident and believes that he can face
most situations successfully.
2. Human Relations: A successful leader should have adequate knowledge of human
relations, that is, how he should deal with human beings. Since an important part of a
leader's job is to develop people and get their voluntary cooperation for achieving work, he
should have intimate knolwedge of people and their to each other. The knowledge of how
human beings behave and how they react to various situations is quite meaningful to a
leader.
3. Empathy : Empathy relates to observing the things or situations from others' point of
view. The ability to look at things objectively and understanding them from others' point
of view is an important aspect of successful leadership. When one is empathetic, he knows
what makes the other fellows think as he does, even though he does not necessarily agree
with others' thoughts. Empathy requires respect for the other persons, their rights, beliefs,
values and feelings.
4. Objectivity : Objectivity implies that what a leader does, should be based on relevant
facts and information. He must assess these without any bias or prejudice. The leader must
base his relationship on this objectivity. He is objective and does not permit himself to get
emotionally involved to the extent that he finds it difficult to make an objective diagnosis
and implement the action required.
5. Motivation Skills : Not only a leader is self-motivated but he has requisite quality to
motivate his followers. Though there are many external forces which motivate a person for
higher performance, there is inner drive in people also for motivation to work. The leader
can play active role in stimulating these inner drives of his followers. Thus, a leader must
understand his people to ihe extent that he can know how to activate them.
6. Technical Skills : The leading of people requires adherence to definite principles which
must be understood and followed for greater success. The ability to plan, organise,
delegate, analyse, seek advice, make decisions, control, and win cooperation requires the
use of important abilities which constitute technical skills of leadership. The technical
competence of leader may win support from the followers.
7. Communicative Skills: A successful leader knows how to communicate effectively.
Communication has great force in getting the acceptance from the receivers of
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communication. A leader uses communication skifully for persuasive, informative and
stimulating purposes. Normally, a successful leader is extrovert as compared to being an
introvert.
8. Social Skills : A successful leader has social skills. He understands people and knows
their strengths and weaknesses. He has the ability to work with people and conduct
himself so that he gains their confidence and loyalty, and people cooperate willingly with
him.
Though all these qualities contribute to the success of leadership, but it cannot be said for
certain about the relative contributions of these qualities. Moreover, it is not necesary that
all these qualities are possessed by a successful leader in equal quantity. The list of
qualities may be only suggestive and not comprehensive. Leadership is too nebulous a
concept to be definitely identified by a listing of its important attributes.
Critical Analysis of Traits Theory : The trait theory is very simple. However, this fails to
produce clear-cut results. It does not consider the whole environment of the leadership, of
which trait may be only one factor. Moreover, no generalisation can be drawn about
various traits for leadership as there are considerable variation in traits established by
various researchers. Jenning has concluded. "Fifty years of study has failed to produce a
non-personality trait or set of qualities that can be used to discriminate leaders and non-
leaders." In brief, this approach presents the followings problems :
1. There cannot be generalisation of traits for a successful leader. This was evident by
various researches conducted on leadership traits.
2. No evidence has been given about the degree of the various traits because people have
various traits in different degrees.
3. There is a problem of measuring the traits. Though there are various tests to measures
the personality traits, however, no definite conclusion can be drawn.
4. There have been many people with the traits specified for leader, but they were not
good leaders.
This approach, however, gives indication that leader should have certain peronal
characteristics. This helps management to develop such qualities through training and
development programmes.
2. Behavioural Approach
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This approach emphasises that strong leadership is the result of effective role behaviour.
Leadership is shown by a person's acts more than by his traits. Though traits influence
acts, these are also affected by followers, goals and the environment in which these occur.
Thus, there are four basic elements - leaders, followers, goals and environment - which
affect each other in determining suitable behaviour. Leadership acts maybe viewed in two
ways. Some acts are functional (favourable) to leadership and some are dysfunctional
(unfavourable). The dysfunctional acts are also important in leadership because they
demotivate employees to work together. As such a leader will not act in this way. The
dysfunctional acts are inability to accept subordinates ideas, display of emotional
immaturity, poor human relations and poor communication.
A leader uses three skills-technical, human and conceptual-to lead his followers. Technical
skill refers to a person's knowledge and proficiency in any type of process or technique.
Human skill is the ability to interact effectively with people and to build teamwork.
Conceptual skill deals with ideas and enables a manager to deal successfully with
abstractions, to set up modes and devise plans. Behaviour of a manager in a particular
direction will make him good leader while opposite of this would discard him as a leader.
Setting goals, motivating employees for achieving goals, raising their level of morale,
building team spirit, effective communication, etc. are the functional behaviours for a
successful leader.
Critical Analysis : The basic difference between trait approach and behavioural approach
is that former emphasizes some particular trait of the leader while latter emphasizes
particular behaviour by him. It is true that favourable behaviour provides greater
satisfaction to the followers and the person can be recognised as a leader. However, this
approach ouffers from one weakness, that is, a particular behaviour at a time may be
effective, while at other times it may not be effective. This means the time factor becomes
a vital element which has not been considered here. Situational Approach
The prime attention in this approach is given to the situation in which leadership is
exercised. Since 1945, much emphasis in leadership research is being given to the
situations that surround the exercise of leadership. The contention is that in one situation
leadership may be successful while in others it may not.
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For the first time, this approach was applied in 1920 in armed forces of Germany with the
objective to get good generals under different situations. Winston Churchill was treated to
be the most efficient Prime Minister during the Second World War. However, he was flop
afterwards when situation changed. Ohio State University research has given four
situational variables that affect the performance of leadership.
There are :
(i) The cultural environment.
(ii) Differences between individuals.
(iii) Differences between jobs.
(iv) Differences between organisations.
(i) The Cultural Environment: Culture is a man-made social system of belief, faith and
value. Many aspects of life have a significant influence upon behaviour and any
understanding of employee's behaviour requires the understanding of culture in which he
lives. Culture may interfere with rational production efficiency by requiring actions
unnecessary or unrealistic from a national point of view, but necessary from the cultural
point of view. Thus, leadership should be directed to influence behaviour of followers in
the context of the culture.
(ii) Differences between Individuals : Human behaviour is caused by some combination of
antecedent factors. Besides, for any given aspect of behaviour, there may be many
contributing factors, not causative in nature. There are a variety of such factors which
affect behaviour in different ways such as aptitudes, personality characteristics, physical
characteristics, interests and motivation, age, sex, education, experience, etc. Within this
framework, individual in the leadership process may be classified as (a) leaders, and (b)
followers. The individual's characteristics affect the leadership process. Thus, some
persons may perceive a particular leadership style suitable while others may have a
different perception. For example, followers with authoritarian personality tend generally
to be more comfortable where influence is being exercised.
(iii) Differences between Jobs : People in the organisation perform different types of jobs.
The importance of placing individuals in jobs which they can perform at a satisfactory
level stems from four different considerations-economic, legal, personal and social.
Different job conditions influence leadership behaviour differently. It is because of the fact
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that demands of job almost inevitably force a leader into certain kinds of activities. Such
requirements do much to set the framework within which the leader must operate. It means
the number of leadership options available to the individual is thereby reduced.
(iv) Differences between Organisations : Various organisations differ on the basis of their
size, age, ownership pattern, objective, complexity, managerial pattern, cultural
environment, etc. In different type of organisations, leadership process tends to differ. For
excample, in military or government administration, leadership behaviour will be different
as compared to business organisations.
Critical Analysis: The situational theory of leadership gives the analysis how leadership
behaviour differs with situational variables. Thus, the question, why a manager in a
particular situation is successful while in the other situation is unsuccessful, is answered
by this theory. However, this approach is not free from certain limitations which are as
follows :
(i) This theory emphasises leadership ability of an individual in a given situation. Thus, it
measures his present leadership potentialities. Whether this individual will fit in another
situation is not answered by this theory.
(ii) Organisational factors become helpful or constraints to a great extent to an individual
leader in exercising the leadership. Thus, it is difficult to measure his personal abilities as
a good leader.
(iii) The theory does not emphasise the process by which good leaders can be made in the
organisation. Thus, it puts a constraint over leadership development process.
Leadership Styles in Indian Organisations
In the first instance, Indian management is generally believed to be autocratic with
subordinates being closely supervised by their superiors and only a limited degree of
participation is allowed to the subordinates. However, the real situation in the context can
be appreciated only when a detailed account of various practices is taken for
consideration. Fortunately, some empirical studies are available in this context which do
not necessarily support the traditional view rather they present a mixed note.
The review of various studies fails to give a generalised result. The findings are too
diverse, sometimes even contradictory. It indicates the absence of a clear-cut direction in
the managerial behaviour thereby reflecting a lack of managerial conviction and values.
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Since, managerial styles are determined by a host of factors such as forces in superiors,
subordinates, and situations, it is unlikely to expect a uniform leadership style in Indian
work organisations, and situations, from this point of view, can be classified into three
parts which have some distinctive features and consequently the different leadership
styles. Such classification may be (i) family-managed traditional organisations, (ii)
professionally managed Indian organisations and foreign-owned organisations, and (iii)
public sector organisations.
In family-managed traditional organisations, the most prevalent style is autocratic. Sons
and grandsons of the entrepreneurs are automatically promoted without any consideration
to efficiency or overall suitability. Thus, there is management by inheritance or
management by chromosomes with the result that these organisations are highly
centralised in their organisation structure and are authoritarian in their approach. In many
such organisation, a certain amount of the paternalistic attitude prevails. The proprietary
character of business and large-scale participation of family members in it have made the
attitude of the head of the business, who is also the head of the family, highly paternalistic.
His same paternalistic attitude extends to the employees and have developed a set of
values in an employer vis-a-vis his employees. At the initial stage, authoritarian style in
more suitable which these organisations have followed. However, such style has also been
inherited by successors without any appreciable change of modification. On the other
hand, there are many organisations in the private sector owned by Indians or by
multinationals who have apprpeciable degree of participation or democratic leadership.
The reason is that multinationals do not bring only their technology but also the work cul-
ture which is more permissive and conducive towards the application of modem approach
of management. As such, the degree of participation is greater in such organisations. The
third category of organisations are in public sector. Here, bureaucratic style is more
prevalent owing to the work culture inherited by public sector managers. Initially, public
sector organisations were manned by civil servants who brought a lot of bureaucratic
culture with them. The net result is that the entire organisational process are governed by
bureaucratic model. Its implication in status differentials, class distinctions and impersonal
relationships all of which work against participative style. The Right Style
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What is right leadership style for Indian managers is a difficult question to be answered.
One often comes across a futile search for a style appropriate for Indian managers. There
are numerous variables which affect the leadership style. Thus, what may appear to be an
effective leadership style for a manager, may not be equally appropriate to others. The
important variables in this context are superiors, subordinates, and the situation under
which a particular style is followed. The analysis of these variables may throw some light
upon the adoption of an appropriate style.
1. Indian Society: Indian society is generally considered to be a traditional one. In such a
society, power and authority is considered an important characteristic. There are three
important aspects of Indian society, viz., joint family, caste system, and ritualism. The
values inherent in the joint family are responsible for generating authoritarian attitudes.
Respect for power and authority is instilled by the family system beginning from
childhood, with the head of the family exercising absolute authority over other members
of the family. It is believed that this respect for authority spreads through every type of
social system including work organisations. The authority of superiors at work-place was
specially exaggerated during the British colonial perod when British superiors exhibited a
high degree of authority in their behaviour towards Indian subordinates. Similarly, caste
system is emphasised so much that it creates conflicts between two different castes.
Besides, there are many other rituals in the Indian society. They reduce anxiety, like other
'given' ways of doing things provided by tradition and society. Rituals help in the smooth
functioning of a system in an organisation, and reduce anxiety and tension relating to new
situations. They also prevent the development of the exercise of discretion and the power
and decision-making in situations of uncertainty.
The above discussion does not mean that traditionalism is the only guiding force in our
society. The industrialisation has entailed many changes in the social and cultural life of
people. The rituals that society had developed to deal with the problems of growth and to
cope with the anxiety and tension are no longer appropriate in a technological change. In
industrial society the rate of change is very high. Its implication for managers is that they
are living in an environment which is full of changes and uncertainly. Such circumstances
demand greater consultation and participation on the part of managers. Thus, the changing
situation is more suitable for participative style.
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2. Indian Managers : There is no uniformity in the attitude, personality and educational
background of Indian managers. We find the just literate managers at top along with fully
qualified professional managers. Naturally, leadership style may present two extreme
ends. The former group of managers perceive themselves self-developed and self-
contained. As such, they present very little scope for participation. On the other hand,
young professional managers have more interdependence and apply more integrated
approach. Hence, they are likely to follow and expect of others a more democratic
approach. The satisfaction of such managerial class seems to depend on the degree of
responsibility, trust etc. They are prepared to delegate, train, and be employee-oriented but
find organisational climate inhibiting such orientation.
Considering these variables, the appropriate style may be near-participative leadership. A
manager should not necessarily adopt his style for the present situation only, but he ought
to look into future too. Many of the restraining forces for participation may be subsided by
the facilitating forces. There are certain perceptible changes-changes that require greater
participation. Unionism at work-place, professionalisation of management, rapid industrial
growth and technological changes demand for more autonomy and inter-disciphnary
approach by new generation and democratic way of living having demand for more
participation. Therefore, a move towards participative style has already begun in
enlightened companies in India. There are various such organisations in public sector and
private sector in India following such style. Situations prone to authoritarian may be only
to the tune of 20 percent. Abnormal situation may exist only to the tune of 10 percent. So a
manager should go for 80-90 percent cases. However, it should not be taken for granted
that this style may be suitable in all circumstances. A particular style requires work
culture. Looking into the future, work culture may be changed to suit participative style
because authoritarian work culture is unlikely to succeeded in the future.
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12 CROUP AND CROUP DYNAMICS
Introduction
An organisation is not merely a collection of individuals who work together to achieve
their goals. It consists of a network of several formal work groups and informal social
groups of people. Every member of the organisation belongs to some formal work group
and associates himself with one or more informal social groups.
Groups exercise tremendous influence on the behaviour and performance of individuals.
They not only affect the behaviour of their members rather they have impact on other
groups and organisation as a whole. Such groups are created by the organisation as well as
by organisation members for their own satisfaction. An organisation divides its ultimate
task into small tasks which are assigned to various sub units. Thus, the organisation itself
generates forces towards the formation of various functions task groups within itself.
Besides, many groups are created automatically because of operation of socio-psychologi-
cal factors at work place. Thus, these groups are essential for the functioning of the
organisation. Hence, it is necessary to understand the formation, structure and functioning
of groups in organisations for better management of groups and organisations. Group
dynamics provides understanding of groups. Concept of a Group
Man is a social animal and prefers to live and work in groups. A group is an aggregation
of persons with close inter-relationships.
According to Edgar Schein, "A group is any number of people who interact with one
another, are psychologically aware of one another and perceive themsevles to be a group."
According to David H. Smith, "A group is a set of two or more individuals who are jointly
characterised by a network of relevant communications, a shared sense of collective
identity and are of more shared dispositions with associated normative strength."
According to Mavin Shaw, "A group is two or more persons who are interacting with one
another in such a manner that each person influences and is influenced by each other
person."
Thus, group is a cluster of two or more individuals who interact with each other on a
relatively enduring basis, identify themselves as belonging to a distinct unit and who share
certain common activities, interests, values and goals.
Shaw has summerised various definitions of groups into four categories such as:
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(i) Group is defined as consisting of individuals who perceive the existence of a group and
their membership in it.
(ii) Group is defined on the basis of a common motivation or goal.
(iii) This class of definitions looks to the structure of the group—the relationship and ties
among group members which bind them together into a group.
(iv) This category of definitions perceive the central element of a group to be interacting
among its members.
Features of the Group
On the basis of above discussion, following features of the group may be identified:
1. Two or more persons : There should be at least two persons to form a group. Because
single individual cannot interact. However, there cannot be any specific limit on the
maximum number of persons in a group but the size of the group will be determined by
rules and regulations of the organisation in this context, or meaningful interaction among
the members in the case of informal groups.
2. Interaction : Members of the group interact among themselves. Interaction means that
each member shares his ideas with others through communication and this communication
can take place face-to-face, in writing, over the telephone, across computer network or in
any other manner which allows communication among group members. However, it is not
essential for all members of the group to interact simultaneously, but each member must
interact at least occasionally with one or more members of the group.
3. Collective Identity : Members must be aware of their membership of the group. Each
member of the group must believe that he is a member of, or is a participant in some
specific group. It is the awareness of each other that most clearly differentiates a group
from a random aggregation of individuals. In case of random aggregation of individuals,
they are ordinarily not aware of one another or, if aware, do not interact with each other in
a meaningful way.
4. Shared Goal Interest: Members of the group should subscribe to the attainment of some
common objectives. However, it is not necessary that each member subscribes to agrees
with all the objectives of the group. If a group has a variety of objectives or interests, each
member of the group must share at least one of the group's concerns. The shared goal
interest binds the group members together.
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Concept of Group Dynamics
Group dynamics is a field of study concerned with interactions and forces between
members of a group. It is the field of enquiry that deals with the nature, formation and
functioning of groups. It also involves the study of the structure, processes and behaviour
of groups and their influence on the behaviour and performance of individuals. Group
dynamics was developed as an academic and research discipline in the 1930s by Kurt
Lewin, a social psychologist of the University of Iowa, USA.. Group dyanamics provides
answers to the following questions :
(a) Why groups are formed ?
(b) How groups are formed ?
(c) How groups grow and decline ?
(d) What forces operate in groups ?
(e) How groups make decisions and solve problems ?
(f) How groups change and adapt themselves ?
(g) How groups achieve unity and handle conflicts ?
(h) How groups influence the behaviour and task performance of their members ?
The term Group Dynamics is defined in different ways. Kurt Lewin popularised this term
in the 1930s, but through the years different connotations have been attached to it.
One normative view is that group dynamics describes how a group should be organised
and conducted. Democrate leadership, member participation and overall cooperation are
stressed.
Another view takes group dynamics as a set of techniques-Here role playing,
brainstorming, buzz groups, leaderless groups, group therapy, sensitivity training, Team
building, transactional analysis and the Johari window are traditionally equated with group
dynamics.
A third view is the closest to Lewin's original conception, Group Dynamics is viewed
from the perspective of the maternal nature of groups, how they form, their structure
and processes and how they function and affect individual members, other groups and
the organisation. This view is more prevalent and this chapter is devoted to the third view
of group dynamics.
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The entire philosophy of group dynamics has been summarised by Gordon L. Lippit
under the head 'Factors in Group Behaviour. These factors are :
(i) Group Background
(ii) Group Participation Patterns
(iii) Group Communication Patterns
(iv) Group Cohesion
(v) Group Atmosphere
(vi) Group Standards
(vii) Group Procedures
(viii) Group Goals
(ix) Group Leader Behaviour
(x) Group Member Behaviour
(i) Group Background—Group leader's effectiveness depends upon his knowledge about
the group members. For this purpose, it is necessary to know the background of its
members. It is the background which determines the personality composition and in turn
the behaviour pattern of the member. The background includes prior experience, circle of
his friends and the opinions of his superiors and subordinates. In addition, the leader's task
will get facilitated in case he comes to know the extent of preparation for the group work
and the expectations of the members from and their role as the members of the group.
(ii) Group Participation Patterns—Group Participation pattern indicates the status and
power structure in the group. It is the organisational structure which may determine the
extent of the Member's contribution in decision making in the group. The leader has to
ensure that it is not only a few articulate members knowing the art of oratory, who are
dominating the discussion scene.
He has to devise a system in which Majority members are capable of contributing in the
decision making process.-
(in) Group Communication Patterns-An effective communication is apt to contribute to
organisational effectiveness. A system is to be so designed that there is face to face
communication with utmost clarity and ability of expression so that appropriate decision
could be taken without problem.
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(iv) Group Cohesion—Cohesion is essential not only for the existence of the group hut
more importantly for the achievement of the Group's objectives. Cohesion is the force
which keeps together the members of the group Cohesive-ness has a direct bearing on
group behaviour. In a cohesive group, group members are apt to conform to group norms,
conformity is essential for the effective functioning of the group. Cohesiveness also
reinforces the element of commonality in the group. Members adjust themselves to
common attitude and work behaviour of the group.
(v) Group Atmosphere—Group atmosphere indicates whether the group is 'accepting' or
'defensive' in its 'climate'. When defensive atmosphere is prevalent within the group,
members are unable to express their dissent with the result that they have to fall in line
with the line of thinking chalked out by the leader. Such an atmosphere having elements of
rigidity, control and punishment will activate the forces of authoritarianism and "Rule of
Thumb' which will go counter to the basic principles of organisational effectiveness.
Conversely, if the atmosphere is that of accepting i.e. of understanding and trusting it will
encourage productivity, creativity and confidence among members.
(vi) Group Standards—Group standards as well as norms of behaviour as laid down by the
group affect both morale and productivity in the group. If the nprms are realistic based on
Socio-psychological principles of human behaviour. The group will not acquire durability
in relationship but encourage the quantum of efficiency.
(vii) Group Procedure—Group procedures outline the details of the participation on
mechanism. In other words, it includes the procedure for the formulation of agenda,
recording of the views expressed by the members, system of voting in the meeting and the
procedure for resolving crisis if no decision on any vital matter could be taken due to stiff
opposition put by some members.
(viii) Group Goals-Group goals are important as group communication or group accepting.
This element has already been discussed in details.
(ix) Group Leader Behaviour-Group Leader Behaviour is also an important factor in group
behaviour. It refers to the tasks which are required to be performed by the leader in the
operation of a group. It includes a wide range of activities from the control of decision
making to the realisation of group's objectives. Initially the leader assumes a wide variety
of functions but many of them may later on be adopted by the group members. The leader
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will however, continue to provide direction to group in addition to enforcing coordination
among group members.
(x) Group Member Behaviour—Group member Behaviour is the most vital component of
group dynamics. The effectiveness of the group is directly related to the efficacy and
efficiency with which the members in group are engaged in the performance of their tasks.
The behaviour of members depends on the structure of the group, group environment and
the individual behaviour at work. Member behaviour is therefore, 'task centred', 'group
centred' and 'self centred'. In other words, every group operates at three levels.
(a) Group Task Level—Every group within the organisation is required to perform the task
assigned to it. The group channelises all its energies to achieve the goal of task
performance which is vital for its existence. Sometimes, the group concentrates so much
on task performance that it fails to provide adequate attention to group maintenance and
individual needs.
(b) Group Maintenance Level—The group task is to be accomplished by the group
members. The completion of the task depends on the interaction and relationship among
group members. If the interaction is hampered due to any reason no task would be
performed by the group with efficiency. Interaction among the members depends
primarily on the harmony existing in the group and the mechanics of conflict resolution
which may strengthen interpersonal relationships and the relationship between the
individual and the group. The leader is expected to play an important role to ensure
maintenance of group on proper footing.
(c) Individual needs level. An individual being the human being nas a number of needs
which ought to be fulfilled to enable him to put his mind and heart into the work.
Sometimes the pattern of individual needs may impinge upon the group and its tasks and
thus, they are relegaterd to the background. Such a situation will create more problems and
the group task will turnout to be a distant reaEty.
In nutshell, a balance is required to be maintained at all the three levels stated above.
Types of Groups
Groups may be classified into the following categories :
A. Primary and Secondary Groups: A primary group consists of a few persons who share a
sense of common identity, common values, interest and common goals. A family, a
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friendship group and a work group are examples of a primary group. On the other hand, a
secondary group is comparatively a large group consisting of several primary groups. Its
members have loose inter-personal relations and a weak unity of purpose. It is less
cohesive than a primary group. A country, a village and an organisation are examples of
secondary groups.
B. Small and Large Groups: A small group is a compact cluster of a few individuals who
have close interpersonal relations, interactions. A large group is a colllection of a few
small groups. In such a group inter-personal relations, interactions and interdependencies
are weak. European Economic Community (EEC), SAARC India. Delhi, and an
organisation are examples of large groups.
C. Formal and Informal Groups: A formal group is a work unit which is established as a
part of an organisation and its structure. It is set up by management and its members are
required to perform prescribed roles so as to achieve the goals of the organisation. It is
governed by the rules, regulations adn procedures of the organisation. Branches, sections,
departments and divisions are examples of formal groups.
Formal groups are of two types : Command groups and task groups. A command group
consists of a manager and the immediate subordinates who directly report to him. It is a
relatively permanent work group and undertakes certain activities on a regular basis. On
the other hand, a task group is established to undertake certain specified tasks. It may be
either a standing group or ad-hoc group. A committee, a project team and a task-force are
examples of task groups.
An informal group is an unofficial cluster of a small number of members who voluntarily
join together due to some commonly shared interests, values, needs and backgrounds.
Such groups emerge and evolve spontaneously when members interact socially on a
selective basis. Clubs, music groups and magazine circles are examples of informal
groups.
Informal groups are mainly of two types : Friendship groups and interest groups.
Friendship groups emerge to satisfy the social affiliation needs, e.g., need for belonging,
need for acceptance, need for affection, etc. of members. On the contrary interest groups
emerge to pursue some common interests as for example a football group. These groups
have been discussed in detail as below :
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1. Formal Groups : By formal groups, we mean those groups defined by the organisation's
structure, with designated work assignments and for establishing tasks. In formal groups,
the behaviours that one should engage in are stipulated by and directed towards
organisational goals. The features of formal groups are as follows :
(i) Formal groups are part of the organisational structure.
(ii) These are created deliberately and consciously by the management to perform the
assigned duties.
(iii) The pattern of communication is also defim ind the rules are laid down to regulate the
behaviour of group members.
(iv) These groups may be either permanent in the form of top management team such as
Board of Directors or staff groups providing specialised services to the organisation and so
on; or these formal groups may be constituted on temporary basis for fulfilling certain
specified objectives. When such objectives are fulfilled, these groups disappear. These
may be in the form of temporary committees, task force etc.
The formal Groups may futher be sub classified into the following groups : (i) Command
Groups : The command group is the most frequent type of formal group. It is relatively
permanent and is specified by the organisation chart. It comprises of managers or
supervisors and subordinates, who meet regularly to discuss general and specific ideas to
improve product or service. In business organisations, most employees work in such
command groups. A typical command group in an organisational chart may be illustrated
as follows :
Thus, a manager and his supervisors reporting to him form one command group. The
supervisor and the subordinates reporting to him form other command groups.
(ii) Task Forces : Task groups are also organisationally determined. But
it is a temporary group representing the employees who are working together
to complete a Job task or particular project. However, a task group's boundaries are not
limited to its immediate hierarchical superior. For example, if a problem involving many
departments arises, a task force made up of representatives from each of the affected
departments, might be formed to examine the problem and suggest solutions.
(iii) Committees—The committees are also set up for some special projects. These can be
permanent such as planning committee, or a budget committee and may become an
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integral part of the organisational structure. A committee can also be temporary such as a
special task force which is set up for a particular purpose and is disbanded when the
purpose is achieved. For example, the committee constituted to elect the president of the
company is temporary and is disbanded after the election. Characteristics of Formal
Groups
The formal organisation (mostly referred to structure) is deliberately designed to achieve
some particular objectives. It refers to the structure of well-defined jobs, each bearing a
definite authority, responsibility. And accountability. According to classical theorists, the
formal organisation is built on four pillars: (1) division of labour, (2) scalar and functional
processes, (3) structure, and (4) span of control. These are also referred to as principles of
organisation. From this point of view, characteristics of formal organisation structure are
as follows :
1. Organisation structure is designed by the top management to fulfil certain
requirements—performance of necessary activities thereby achieving organisational goals.
2. Organisation structure is based on the principles of division of labour and efficiency in
operations.
3. Organisation structure concentrates more on the performance of jobs (conglomerate of
activities) and not on the individuals performing the jobs.
4. The authority and responsibility assigned to each job have to be adhered to by the job
holders. Based on the concept of authority and responsibility, people are placed in
hieracrchy, and their status is determined accordingly.
5. Coordination among members and their control are well specified through processes,
procedures, rule, etc.
2. Informal Groups : Informal groups are alliances that are neither formally structured nor
organisationally determined. These groups are natural formations in the work environment
that appear in response to the common interests of the organisation members such as self
defense, work assistance and social interaction. The features of these groups are as
follows":
(i) The informal groups are formed by the members of such groups by themselves rather
than by the management.
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(ii) These groups arise spontaneously in the organisation because of social interaction
between the people.
(iii) These are based on common interests, language, taste, caste, religion, background etc.
(iv) These groups exist outside the formal authorities system and without any set rigid
rules.
(v) Though officially unrecognised, these groups exist in the shadow of the lormal
structure as a network of personal and social relations which must be understood and
respected by the management.
(vi) These groups have their own structure, with their own leaders, and followers, group
goals, social roles and working patterns. They have their own unwritten rules and a code
of conduct which every member accepts implicitly. Members trust and respect each other.
(vii) The informal groups are more flexible than the formal groups. Rules and procedures
being unwritten, they can changed from situation to situation.
(viii) Since these groups concentrate on the personal contact between the members, they
represent the human side of enterprise as compared to technical side represented by the
formal groups.
Since informal interaction is spontaneous it can take place in any way. Consequently,
informal organisations may be of different types as explained below:
(i) Interest and Friendship Groups : People who may or may not be aligned into
common command or task groups may affiliate to attain a specific objective with which
each is concerned. This is called an interest group. For instance, the employees who group
together to pressurise the management for subsidised transport constitute an interest group.
A friendship group includes close friends or relations. These groups arise because
members know each other very well before joining the organisation and in the intitial
stages, they recognise each other only. These social alliances, which frequently extend
outside the work situation, can be based on similar age or ethnic heritage or for holding
similar political views or for having the same hobbies etc.
(ii) Cliques: Another type of informal groups is called cliques. These groups consist of
colleagues or those who commonly associate with each other and observe certain social
norms and standards, but the number of members tends to be smaller, and only rarely
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exceeds five or six. The objective is to provide recognition to each other and exchange
information of mutual interest.
M. Dalton has identified three types of cliques :
(a) Vertical Clique : This group consists or people working in the same department
drawing membership regardless of ranks. In this case, the superior may be a member in the
group consisting mainly of subordinates. Such groups which cut across hierarchical lines
develop because of the earlier acquaintance of people or because the superior is dependent
upon the subordinates for some formal purposes like filling gaps in his abilities.
(b) Horizontal Clique : This group consists of people of more or less the same rank and
working more or less in the same area. Members are able to find some points of
commonness and keeping the objectives in mind, come together. This is the commonest
type of informal group.
(c) Random or Mixed Clique: This group draws members from different ranks,
departments and physical locations. Again, people having some similarities come together
for a common purpose. The members may be residing in the same locality, travelling by
the same bus or may be members of the same club.
(iii) Sub-Cliques: This group consists of some members of a clique inside the organisation
forming a group along with persons outside the organisation. The members of the cliques
give these outsiders due recognition because of some members of their group being
associated with them. Such groups are regarded as partially external to the organisation.
(iv) Sayles' Classification of Group: On the basis of the pressure tactics adopted by the
groups L. R. Sayles identified four kinds of groups in the organisations which are
discussed below :
(a) Apathetic Groups: This group is characterised by relatively few grievances and it
hardly ever uses pressure tactics. In the group, no one ever emerges as an acceptable
leader and therefore, there is lack of clearly defined leadership. These groups are
composed of relatively low paid and low skilled assembly line workers who lack unity and
power and hardly ever use pressure tactics. Such groups are generally indifferent to formal
organisations.
(b) Erratic Groups : Members in the erratic groups are easily inflamed and easily pacified.
There is lack of consistency in their behaviour. Sometimes they show antagonism towards
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the managment while on other occasions, they may be cooperative. In such a group, an
active member could assume the reins of the group and become the leader. These groups
are composed of semiskilled workers who work together in performing jobs that require
some interaction. They display considerable unity, but it is very difficult to predict their
behaviour.
(c) Strategic Groups: The members of such group are able to prepare a strategy for putting
pressure on other groups and the management. Members of such groups are generally
performing technologically independent jobs and are comparatively better placed than
members of earlier categories, it is difficult to apply exact time standards for judging their
performance as their jobs are of such a nature that personal judgement matters. These
people are highly united and actively participate in union activity. These people maintain a
relatively consistent antagonism.
(d) Conservative Groups : These groups are composed of professionals and highly skilled
employees in the plant. They are found at higher levels of the organisation and display
considerable self confidence. They work on their own and the nature of their jobs is such
that they can shut down the plant if they so desire. These people are found to be very
strong and very stable among informal groups. Such groups exercise restrained pressure
for highly specified objectives and display moderate internal unity and self assurance. In
terms of union activities there are Activity-Inactivity Cycles. They are cooperatively
oriented most of the times. They adopt antagonistic attitude towards managment only
when highly specific goals are sought by group members acting together.
The various types of groups can be illustrated with the help of the above table.
The relationship between formal and informal groups is mutually reinforcing and
competing. Informal groups can assist formal groups in solving a complex problem. But
what concerns an individual who is interested in the study of organisational behaviour is
the negative role played by informal groups. Some informal groups are deliberately
formed to work against management. Reasons for Emergence of Informal Groups
Informal organisation is inevitable along with formal one and to obtain a total picture of
any organisation, one must consider the informal organisation also. This is natural and is
found in those aspects of structure which, while not prescribed by formal authority,
supplements or modifies the formal structure. The informal organisation is created because
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formal organisation is not complete from the participants' point of view. In particular,
following factors are responsible for the creation of informal organisation with the formal
one:
1. Desire to Socialise with Others: Personnel like to socialise in order to overcome the
extreme specialisation of the workplace as well as psychological fatigue and boredom of
the job because it allows them to satisfy their social needs on the job. The need for
relationships with others is one of the most important human needs. Activity assigned by
formal lines of authority, perhaps, does not attract the entire attention or satiate all the
needs of the employees and they tend to activate relationships other than those formally
specified in organisational settings. Physical nearness may stimulate interaction among
employees placed together in an organisation. Thus, the reason for informal organisation is
social. Keith Davis has observed that 'along with men's technical imperative, there is also a
social imperative to work together. Man is a social being. He wants to belong, to associate
with others rather to work in isolated loneliness. Out of this basic drive of man, the
informal organisation arises'. Thus, it can be said that whereas the formal organisation is
rationally created for technological purposes, the informal organisation naturally arises
from man's quest for social satisfaction.
2. Job Specialisation : Personnel concentrate on a single or a few simple tasks that lead to
boredom on the job. Many of these tasks are performed in conjunction with some type of
specialised machinery. Greater the degree of specialisation, greater is the degree of routine
work, and greater is the degree of boredom. Consequently, greater is the degree of
informal organisation. Job specialisation can create serious morale and motivational
problems. Employees have little sense of accomplishment, autonomy, or Identification
with work. Their fragmented jobs yield both monotony and drudgery. Personnel
experience fatigue, characterised by feeling of meaninglessness, and are unable to relate
their jobs with final output. In such a situation, many of their higherorder needs are not
satisfied and they have to resort to informal interaction as an outlet for releasing such
tension.
3. Escape from Work Environment : Personnel tend to seek escape from their jobs when
their capabilities exceed than those required by the jobs. The greater the disparity between
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the two, greater is the tendency to escape from the work environment because enough time
remains available for informal interaction.
4. Hierarchical Control and Communications: One of the inevitable characteristics of
modern large organisations is the existence of hierarchy creating superior-subordinate
relationships and separating decision makers and decision implementers. In such
hierarchical structure, there is a natural tendency of exercise of control by superiors. In a
rigid control, subordinates, being unable to thwart such control, try to find the avenue
where there is no such control. Morevover, if the communication downward does- not
carry message, meaningful from the point of subordinates, they resort to seek such
information from informal sources. Greater the degree of bottleneck in hierarchical
communication, greater is the chance for horizontal and informal communication.
Characteristics of Informal Groups
The basic characteristics of informal groups are as follows :
(i) Informal groups are relatively small in size.
(ii) Such groups are homogeneous so as to facilitate interpersonal interactions.
(iii) Members of an informal groups share certain goals, values and beliefs and perceive a
common identity.
(iv) An informal group exercises social control over the behaviour and performance of its
members through norms to which members are expected to comply.
(v) Every informal group has its own culture which evolves over a period of time.
(vi) Membership is overlapping, i.e., an individual may belong to more than one informal
group.
(vii) Communication in an informal group is oral and face to face.
(viii) There are strong social ranking among members of an informal group depending on
their power relations.
(ix) Members of an informal group participate in a system of interlocking roles and
relationships.
(x) Membership of an informal group is voluntary but involves some selection. It is not
automatic.
(xi) The atmosphere in an informal group is natural and relaxed. Members generally feel
'at home'.
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(xii) The goals of informal groups tend to be different from and often in conflict with the
organisational goals.
(xiii) The structure of an informal group is loose.
(xiv) Cooperation and conflict coexist in informal groups. Merits of Informal Groups
1. Satisfaction—The need for relationship with others is a basic human need. Man is a
social being and he wants to associate with others. He does not like to work in isolated
loneliness. This quest for social satisfaction prompts people to form informal groups.
Informal groups provide social satisfaction and a sense of belonging to the members. It
provides an opportunity for people to behave in a natural and uninhibited manner free
from rigidity and oppressiveness. It provides them a sense of identity and self-respect and
helps in solving their personal problems and difficulties. According to Chester Barnard,
"Informal groups are important means of maintaining the personality of the individual
against certain effects of formal organisation which tend to disintegrate personality."
2. Job Satisfaction : Due to specialisation, tasks have become routine and repetitive. Every
employee concentrates on a single or a few simple tasks. Such division of work leads to
psychological fatigue and boredom. Employees get little sense of accomplishment,
autonomy or identification with work. They are unable to relate their jobs to final output.
They feel powerless and jobs appear meaningless to them. Formal organisation requires
conformity.
Literal obedience to formal policies, rules and procedures affects the motivation and
morale of employees. Informal organisation adds a human touch to the cold and inhuman
qualities of the formal structure. It provides a means for developing friendships and fellow
feeling. Informal organisation fills the psychological vacuum or void created by dull,
boring and monotonous jobs. It allows people to satisfy their psychological needs. It
creates a pleasant and satisfying work environment. People resort to informal interactions
to release their tension and frustration. Informal relationships provide them a sympathetic
ear to convey their problems and provide an outlet to ventilate their grievances. In this
way, informal organisation serves as a safety valve to release daily tensions and
frustrations. Thus, informal organisation exercises significant influence on job satisfaction
and productivity.
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3. Source of Protection : Hierarchical organisation structure involves rigid control over the
behaviour of employees. Informal organisation offers a powerful protection against such
threatening and oppressive forces, it provides a sense of security by protecting the
individual against arbitrary treatment by management. It provides stability to work groups
and psychological support to the members. Informal groups also protect their members
from outside pressure and work pressure.
4. Support to Formal Structure : Informal organisation provides support to the formal
structure. It blends with the formal organisation to make a workable system for getting the
work done. Formal structure tends to be inflexible and cannot meet every problem in a
dynamic environment. Informal organisation lends flexibility and dynamism to the formal
structure. It also brings cohesiveness to a formal organisation. Informal organisation can
overcome the deficiency in the formal structure through suitable innovations.
5. Communication Device : Formal organisation lays down the lines of communication,
which tend to be slow. Informal organisation provides the management with an additional
channel of communication in the form of grapevine. Management can use this channel to
transmit useful information quickly. Grapevine supplements official communication. It
provides valuable feedback to managers on their style of functioning. For example,
proposals for important organisational changes may first be conveyed informally to seek
the opinion leaders in the informal organisation and to get their reactions.
6. Overcomes Managerial Limitations—Authority may not always be effective and
managers may have to rely on voluntary compliance of people out of sheer goodwill and
respect. In the day-to-day working of the organisation,
several ticklish situations arise for which the prescribed procedures provides no guidance.
In such situations, informal organisation has its own ways of coping with problems.
Informal organisation can fill in the managerial gaps by educating people how to really
perform the task.
7. Training and Development : Informal organisation is a forum for socialisation of new
managers and for helping them to learn the work practices and rules. Morevover, informal
organisation provides a training ground for the development of informal leaders.
8. Coordination and Control : Informal organisation helps to develop team spirit and
group pride. As a result need for close supervision is reduced. Members of cohesive
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groups feel less nervous and express less anxiety. Groups develop performance standards
and group cohesiveness reduces turnover and absenteeism. Informal groups facillitate
research and innovation. Informal leader can help managers in solving problems like
absenteeism, late-coming, etc. A properly motivated informal group can achieve much
better results than a formal group.
Demerits of Informal Groups
Informal organisation can undermine and distort the formal organisation in the following
ways :
1. Conflicting Norms : Informal groups often evolve their own norms, standards of
performance which»arg below the physical capabilities of their members. These groups
exercise social pressures against members who produce above the unofficial standards.
Informal organisation upholds the individual and social goals of its members which often
run counter to the goals and values of the formal organisation. As a result the efficiency of
operations is reduced and talents of employees are suppressed.
2. Resistance to Change : Informal groups tend to perpetuate the status quo. An informal
group is bound by convention and custom. In order to maintain equilibrium it resists
innovation and change in work methods. Conformity may make group members reluctant
to act independently and creatively.
3. Undermine Discipline : Informal groups oppose management policies, rules and
procedures which are meant to structure and discipline work behaviour and performance
of employees. As a result managers are forced to become lenient in enforcing rules and
regulations and in tolerating deviations from required behaviour. The character and
competence of management tend to suffer. Informal organisation may ridicule and even
sabotage the processes, practices and culture of the formal organisation.
4. Rumour : The grapevine often carries rumours or false information which is
detrimental to smooth functioning of the organisation. It destroys confidentiality of the
enterprise.
5. Power Politics : Informal organisation is often riddled with factionalism and power
politics. Members divert their energy and time from jobs to indulge in faction fighting and
petty politics. The informal leader may manipulate the group towards selfish or
undesirable ends. Jurisdictional disputes among groups create problems for organisation.
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6. Role Conflict: Since informal groups try to meet the social needs of their members,
there is a natural tendency to produce role conflict. An individual faces role conflict when
he has to meet the conflicting requirements of work group and informal group.
Management of Informal Groups
Informal groups are inevitable and their influence is pervasive. Therefore, managers
should adopt pragmatic attitudes and approach towards informal groups. A manager may
take the following steps to handle informal groups successfully:
(i) Managers should understand the formation structure, processes and behaviour of
informal groups. A clear understanding of the dynamics of groups and the forces operating
in groups will enable managers to adopt a wider perspective.
(ii) Managers may adopt group tediiniques in decision-making, communication,
management of change and conflict management.
(iii) Managers may attempt to create a supportive environment in which groups can
flourish and develop positive attitudes towards the organisation.
(iv) Group based approaches such as groups incentive system, group accountability for
performance, etc. may be adopted in place of individual approaches.
(v) Managers may promote unity of groups in activities which are beneficial to the
organisation. For example, leaders of informal groups may be taken into confidence in
proposals of organisational change and development.
Group Behaviour
Group behaviour is the social process by which people relate and respond to each other
and perform their respective roles. The behaviour of a group is guided by a basic unity of
purpose and identity of interests. A group strives to uphold and promote unity among
members who are assigned different roles. Group behaviour is spontaneous rather than
contrived or stage managed. It is characterised by empathy.
There are two dimensions of group behaviour—(a) intra group behaviour, i.e., the
behaviour of members of a group toward each other, and (b) inter-group behaviour, i.e.,
the behaviour of members of a group towards the members of another group. Group
behaviour is not simply a summation of the behaviour of individuals making up the group.
A person's behaviour as an individual is often different from his behaviour as a member of
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a group. Group behaviour has both positive (functional) and negative (dysfunctional)
consequences for the organisation.
George Romans, a social psychologist, has identified three basic elements of group
behaviour which are described below :
1. Activities: These are physical movements which people make and which an outsider
can observe while analysing the working of a group. We should observe the nature of
actions, compare the similarity between these actions, evaluate the output of the actions
and measure their efficiency. Dictating a letter, making a sale, operating a machine are
examples of activities.
2. Interactions: These imply the mental response of people participating in an activity.
These may be verbal, e.£.,two employees talking on telephone or non-verbal, e.g., a
superior shaking hands with his subordinates. While observing interactions, we should
look for frequency (how often people interact) and order (who initiates the interaction).
3. Sentiments: These refer to all the internal feelings, attitudes and drives that exist within
a person about his work and others involved in it. These are not directly observable and
must be inferred from the activities and interactions which express them. For example, we
may infer that a person is angry from what he says and how he says it. While analysing
sentiments, we should look at the number of people who share the sentiments, the degree
of conviction they have and the intensity they feel. For example, a group often persons
may share the feeling that a certain management practice is wrong. They are absolutely
convinced that they are right but still may not feel very intensively concerned about it
personally.
An organisation establishes certain roles for its members and inter-relationships among
them. It defines the activities to be carried out by them and their interactions. Members
bring their own sentiments and interact with each other to carry out their activities. Out of
the inter-play of sentiments, interactions and activities emerges the behaviour of a group
which may be different from the behaviour required by the formal organisation.
Interactions among members tend to be both formal and informal. Group Functions
The main functions in which groups in organisations engage are given below.
1. Assignment and Clarification of Roles : Role means the pattern of behaviour expected
of a member who occupies a particular position in a group. Groups define how the
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members are expected to behave. They clarify, elaborate and harmonise the roles of their
members. In a formal group, job titles and job descriptions define the roles expected of
members. In an informal group, members develop expectations and perceptions of their
respective roles. Members of a group play several roles—task related, relations oriented
and self oriented. The way members perceive and enact their roles provides an insight into
group functioning. Clarity and compatibility of roles improve the performance and
satisfaction of members.
2. Group Problem Solving and Decision-making : Groups in organisations often serve
as problem solving and decision-making units. For example, the Board of Directors of a
company takes several major decisions. Group problem solving and decision-making is
better in some ways. Groups can more thoroughly analyse the problems from different
perspectives and viewpoints. Therefore, group decisions tend to be more pragmatic and
acceptable. A group can generate new ideas and novel alternatives through interaction
among its members. Participation of members improves commitment, motivation and
morale of members.
Group decision-making also has certain limitations. Group decisions tend to be time
consuming and expensive. Political considerations may lead to compromises. Groups tend
to make more risky and reckless decisions because they are generally not responsible for
their implementation. Group think, which means the tendency towards convergence of
members to one dominant viewpoint so as to give an illusion of unanimity is quite strong
in groups.
3. Leadership in Groups : Informal leaders often emerge in groups by common consent.
They tend to command more power and influence than formal leaders. They gain the
acceptance and confidence of group members. Their suport and involvement can be
helpful in creating change, resolving conflicts and managing crisis. Informal leaders
reflect and shape the views and values of group members. They win the confidence and
acceptance of members. Group leaders are expected to provide a sense of direction, and
emotional support to members. They maintain group's unity and autonomy, enforce norms
of behaviour and build a climate in which members can perform well and get mental
satisfaction.
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4. Group Communication and Interaction : Members of a group communicate and
interact with one another to perform their tasks and to derive social satisfaction. Such
intra-group and inter-group communications and interactions are necessary for goal
setting, decision-making, socialisation, change management, conflict resolution and group
cohesiveness. Informal communication cuts across formal channels of communication. It
is spontanceous and provides information regarding various matters of member's interest.
If fills gaps in the formal communication system and is very fast.
5. Group Cohesiveness : The term group cohesiveness implies the degree to which
members of a group are united and knit together. It represents the strength of interpersonal
attachment among the members, it shows the extent to which members are attracted to one
another and share the goals of the group. Cohesiveness reflects the members' motivation to
remain in the group, to identify themselves with the goals and culture of the group, to
contribute their energy to its progress, to commit them selves to its success and to take
pride in being associated with its fortunes. Group cohesiveness is the spirit of closeness
and solidarity among the members of a group.
Group cohesiveness is much valued as a desirable group characteristic. Members of a
highly cohesive group develop common attitudes, values and behavioural patterns. They
wholeheartedly comply with the norms and discipline of the group. They are loyal to the
group's goals and leadership. They develop a high degree of collective problem solving
and decision-making ability. They bandle the hardships and crises incidental to group
functioning collectively and courageously. In a highly cohesive group, members develop
positive feeling towards their tasks and tend to perform well. They also develop mutual
regard, trust and warmth, in their interpersonal relations. They tend to derive considerable
satisfaction from their association with the group. A cohesive group tends to have stable
membeship over fairly long periods of lime. A cohensive group is more productive
provided its goals, norms and values are consistent with those of the organisation. This has
been discussed in detail in a separate chapter.
Several factors and forces influence group cohesiveness. These are given below:
(i) Group Size: Small groups tend to be more cohesive than large groups. When there are
relatively few members they can interact and communicate more frequently and more
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openly. As a result of common sentiments and mutual understanding, cohesiveness among
them increases.
(ii) Composition of the Group: A group is relatively more cohesive when it contains
members having similar age, education, income, interests, and values. A heterogeneous
group tends to be less cohesive than a homogeneous group.
(iii) Location of Members: People who work closely together in the same geographical
location have greater opportunities to interact and communicate with one another. Such a
group is more cohesive.
(iv) Group Goals and Performance : When members feel intrinsically attracted to the
goals of the group and feel that they are likely to be successful in meeting these goals
cohesiveness tends to be high. Clear, acceptable and attainable goals foster cohesiveness.
A group which makes steady progress towards achievement of its goals tends to be more
cohesive.
(v) Outside Pressure : When a group faces threat to its survival and success from external
agencies, its members forget their differences and present a united front.
(vi) Status Differentials : Acute status differences among members in terms of disparities
in their knowledge, powers, abilities and achievements inhibit cohesiveness. Members of a
group which enjoy high status and prestige in society tend to show greater cohesiveness.
(vii) Group Structure: A well-structured group with specific roles assigned to members
and clear-cut relations among them tend to be more cohesive man an ill-structured group.
(viii) Group Atmosphere : In a warm and friendly atmosphere, members feel accepted,
respected and valued and, therefore, the group becomes cohesive. A group with
impersonal and regimented atmosphere tends to be less cohesive. Programmes for good
interactions among members also help to increase group cohesiveness.
(ix) Leadership : A warm, friendly and competent leader can increase cohesiveness in the
group. Similarly, a democratic leader can induce cohesiveness in the group by
encouraging extensive participation in decision-making.
(x) Social Rewards : A group which provides more favourable social rewards and social
satisfaction to its members in exchange for their contributions tends to be more cohesive.
If members actually taste success in fulfilling their needs by associating with a group, the
group cohesiveness increases.
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6. Group Norms : Group norms refer to the standards established by a group about the
behaviour and performance expected of its members. Norms represent the group's shared
beliefs and ideas about proper and permissible conduct of its members in important areas
of group activity. Group norms are established by the members themselves through
common consent. Generally, norms evolve over a period of time in the form of
conventions by collective will or consensus. Norms are invariably oral and informal.
However, they are binding on all members of the group. Norms relate to both
interpersonal behaviour and task performance. An example of norms of interpersonal
behaviour is that members should avoid using obscene words in their conversation. Each
member should not produce more than 20 units per day is an example of norms about task
performance.
Group Processes
In every group, there are different processes that are used in getting things done. A process
can be defined as a systematic method of handling activities. Within a work group,
processes that have important implications for group performance are communication,
leader's behaviour, conflicts and cooperation, and group decision-making. Group
processes have effect on group performance because of operation of social facilitation
effect.
Social Facilitation Effect
Social facilitation effect refers to the tendency for performance to improve or decline in
response to the presence of others. Though this tendency is applicable to individual
performance also as some individuals do better in presence of some but poor in presence
of some others, social facilitation effect is more applicable in the case of group
performance. The research on social facilitation effect suggests that performance of
simple, routine tasks tends to be speeded up and made more accurate by presence of
others. When the work is more complex, requiring closer attention, the presence of others
is likely to have a negative effect on performance. Because of operation of social
facilitation effect and effect of group factors, two types of features may appear in groups :
synergy in group and social loafing.
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1. Synergy in Group : Groups are created basically to take advantages of synergistic effect.
The concept of synergy is quite popular in strategic management and it is defined as
follows :
"Synergy is the process of putting two or more elements together to achieve a sum total
greater than the sum total of individual elements separately. This effect can be described
as 2 + 2 = 5 effect." —L. M. Parsad
Thus, synergistic effect is not automatic but depends on the complementarity of different
elements that are put together and the way they interact among themselves, that is, how a
particular element affects another and is affected by it. Putting the concept of synergy in
group work means members of the group are complementary to each other and they
contribute positively to one another. In fact, a group is created to undertake a task which
requires a variety of skills and single individual cannot perform that task alone. To the
extent, the complementarity among members is achieved, the group would be effective,
other factors remaining the same.
2. Social Loafing : Social loafing is antithesis of synergy in group work which suggests
that people working together on a common task may actually decrease their individual
efforts; group work does not necessarily spurt group efforts. A simple phenomenon of
social loafing may be observed in a group assignment to students during their study. In
such an assignment, students find that one or two students do not put their weight for the
completion of the project. These students may be called loafers (not attaching the same
connotation which is attached with the term loafer in our social phenomenon) who
frequently miss the project group's meetings, fail to perform their assigned task, and so on.
They rely on the fact the more reliable members will complete the project without their
help, and still expect to share the credit and obtain the same marks from the professor
since he will not be concerned with determining who worked and who did not. This
phenomenon may happen in groups in work organisations too. For example, in one
experiment, it was found that individual's total efforts were much higher than the group
efforts. Individuals were asked to pull alone as hard as possible on a rope attached to a
strain gauge. They averaged 138.6 pound of pressure while tugging on the rope. When the
same individuals pulled on the rope of groups of three, they exerted only 352 pounds of
pressure with an average of 117.3 pounds each. In a group of eight, the individual average
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dropped down still lower—68.2 pounds. Dropping of average output in group efforts in-
dicates that some members of the group were not contributing as much as they did
individually. The possibility of occurring of social loafing in a group work increases
because of the following reasons :
1. When the division of work cannot be accomplished properly and individual efforts are
hard to determine, group efforts tend to slacken.
2. When the group is not cohesive with high output norms, individual members do not
contribute to the fullest extent. A group is not merely an assemblage of individuals but
there should be a feeling that they are members of the group and share common interests,
goals, and attitudes.
The phenomenon of social loafing can be minimised by constituting effective group.
Difference between Formal and Informal Groups
Based on the characteristics of formal and informal organisations, we can differentiate the
two as follows :
1. Origin: As discussed above, reasons and circumstances of origin of both formal and
informal organisations are quite different. The formal groups are created deliberately and
consciously by the framers of the organisation. On the other hand informal organisations
are created because of the operation of socio-psychological forces at the workplace, that is,
people while working together develop certain liking and disliking for others and interact
in a way not prescribed by the framers of the organisation.
2. Purpose : Since formal groups are deliberate creations, they are created for achieving
the legitimate objectives of the organisation. Informal groups are the basic product of
formal organisation structure. The informal groups are created by organisational members
for their social and psychological satisfaction. Thus, they serve the purpose of
organisational members which formal groups are not able to satisfy.
3. Size: Formal groups may be quite large in size. Sometimes, formal groups are
constituted to give representation to various interest groups in the organisation, and their
size had to be kept large. However, in other cases, efficiency is the criterion for fixing the
size of the formal groups. The informal groups tend to be small in size so as to maintain
the group cohesiveness which is essential for the informal groups to be attractive for the
members concerned.
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4. Nature of Groups: The formal groups are stable and may continue for a long period.
Their membership is specified through organisational process. There may be many
standing groups in the organisations as discussed under committee form of organisation.
Such groups continue indefinitely, only their members may change. The informal groups,
on the other hand, are quite unstable in nature. Since their formation and functioning
depend upon the value systems, general liking and disliking, and other personality features
of the members concerned, they may disappear very quickly because of the change in the
membership or they may cease to be attractive for the members and the members may
form alternative groups.
5. Number of Groups : Since the whole organisation is divided into so many groups and
subgroups, their number may be many in a single organisation. In fact, the number of
formal groups is decided to serve the organisational purpose. This depends upon the
organising pattern. Similarly, a large number of informal groups may also be found in the
organisation. Moreover, an individual may become member of several informal groups.
Therefore, there is overlapping of membership.
6. Authority : The members of formal groups derive authority through the formal source,
that is, through the process of delegation and redelegation. Thus, authority flows from the
higher to lower levels. In the informal groups, all members are equal, however, some may
command more authority by virtue of their personal qualities. Thus, authority is
commanded. People give authority to those persons who are likely to meet members'
needs maximum. This is the way of emergence of informal leaders in the informal groups.
Such people have maximum positive interactions in the groups.
7. Behaviour of Members : The behaviour of members in the formal groups is governed by
formal rules and regulations. The rules are normally directed towards rationality and
efficiency. In the informal groups, the behaviour of the members is governed by norms,
beliefs, and values of the groups. The kind of behaviour that is expected of a member is
specified by these factors. If any member defies these, lie is disliked by other members
and for the person concerned, the group does not remain attractive and he leaves it.
8. Communication : Communication is prescribed in the formal groups. It is normally
through chain of command to which people refer to as formal channel of communication.
All communications in the formal groups are expected to pass through that channel. In the
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informal groups, the communications pass through informal channels. This informal
channel may be in any form, as will be discussed in Communication Chapter.
9. Abolition: The formal groups can be abolished at any time. Since these are created by
organisational process, these can be abolished by organisational process also. In fact,
many of the formal groups are constituted for certain specific purpose or period. When this
is over, tbis group also disappears. The informal groups are difficult to abolish by
organisational process. In fact, any attempt by management to abolish the informal groups
may be thwarted by the members and may lead to the formation of many more groups.
Since the informal groups are by-products of natural desire of human beings to interact,
management does not have any control over them.
Difference between Formal and Informal Group
Points of Formal Informal
Difference Group Group
1. Formation
2. Objective
3. Authority
It is pre-planned.
Its main objective is to achieve
predetermined goals.
Formal authority is institutional.
It flows down-word.
It is not pre-planned and
arises spontaneously.
It has no predetermined
objectives. It ensures social
satisfaction.
It is personal, i.e., it attaches to a
person. It flows downward,
upward and horizon-
4. Communication
5. Pattern of
Behaviour
Communication in formal groups
is in written form.
Behaviour is regulated by rules
and regulations of the group.
tally.
Communication in informal
groups is in oral form and face to
face.
Behaviour is regulated by norms,
values and beliefs of the group.
6. Size The size of formal group is quite
large.
The size of informal group is
small.
7. Nature Formal groups are stable, Informal groups are unstable.
they have capacity to last long They may not last long.
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despite changes.
8. Structure The structure of formal prnnn is
determined according to
technical requirements.
The structure of informal group
is determined by emotions and
sentiments.
Liquidation
Chain of
Command
These can be abolished by the
management as and required.
These have to follow official
chain of command.
These are the outcome of human
relations and management has no
control. Informal groups need to
follow a fixed chain of com-
mand.
iup Development
Groups generally pass through a standardised sequence of their evolution. I sequence is
known as five-state model of group development. These stages s forming, storming,
norming, performing, and adjourning as shown in Figure:
Fig.: Five-stage model of group development
Though these are not followed rigidly, they do represent a broad pattern t may be observed
and predicted in many settings across group's time to-ler. These stages are the result of a
variety of questions and issues that group members face such as "who will be members of
the group?", "who will perform what functions?," "who will contribute what?," "what rules
will be followed," "how can conflicts among members be resolved?," and so on. These
typical stages of group development are described below.
1. Forming—At the first stage, group members get introduced to each other if they have
not interacted earlier. They share personal information, start to accept others, and begin to
turn their attention towards the group tasks. At this stage, interaction among group
members is often cautious specially when they are new to one another.
2. Storming—After the forming stage which is mostly related to perceiving and assessing
each other, members start interaction among themselves in the form of competing for
status, jockeying for relative control, and arguing for appropriate strategies to be adopted
for achieving group's goals. Because of individual differences, different members may
experience varying degree of tension and anxiety out of this interaction pattern.
3. Norming—After storming stage, group members start setting. The group begins to
move in a cooperative fashion, and a tentative balance among competing forces is struck.
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At this stage, group norms emerge to guide individual behaviour which form the basis for
cooperative feelings and behaviour among members.
4. Performing-When group members interact among themselves on the basis of norms that
have emerged in the group, they learn to handle complex problems that come before the
group. Functional roles are performed and exchanged as needed, and tasks are
accomplished efficiently.
5. Adjourning-Adjourning is the end phase of group development stages. Sooner or later,
each group has to be adjourned, even the most successful groups as soon as they have
completed their mission. The adjournment phase takes place in the case of those groups
which are created for some special purposes like task force, committee, etc. Other types of
groups like a department in an organisation run on the basis of some permanency though
there may be changes in group members. After the adjournment of the group, intense
social relationship among members comes to an end.
It is not necessary that all groups follow the rigid pattern prescribed here and the similar
problems they face at each stage because each group is different in some respect based on
the type of members and problems and functions assigned. However, concept of stages is
significant in the context of the nature of problem which group members are likely to face
in a work group.
Punctuated Equilibrium Model of Group
While five-stage model of group development is applicable for most of the groups,
however, some types of groups, particularly temporary groups with certain deadline of
work performance, do not seem to follow this model. They have their unique sequencing
of actions. This pattern of sequencing of actions is known as punctuated equilibrium
model of group which has been presented in following figure :
Let us discuss these phases.
1. First Meeting-The first meeting of group members sets the group's direction. A
framework of behavioural patterns and assumptions through which the group will
approach its task emerges in this first meeting. Once set, the group direction becomes
fixed and is unlikely be reexamined throughout the first half of the group's life. This
period is characterised by inertia, that is, the group tends to stand still or become locked
into a fixed course of action. Even if it gains new insights that challenge initial patterns
270
and assumptions, the group is incapable of working on these new insights in the phase 1.
Obviously, performance of the group tends to be low.
2. Transition—At the end of the first phase which takes almost half of allotted time of
project completion, transition phase begins which is characterised by a concentrated burst
of activities, dropping even old patterns, and adopting new perspectives. In this phase, the
group executions plans developed during this period.
3. Completion—Completion is the final phase or group actions. During this period, there
is a final burst of activity that leads to completion of the work assigned to the group.
Thus, punctuated equilibrium model characterises groups as exhibiting long period of
inertia interspersed with brief revolutionary changes triggered primarily by their members'
awareness of time deadlines. Therefore, this model of group development does not apply
to all types of groups but its application is limited to only temporary groups which work
under time-constrained completion deadlines.
Theories of Group Formation
The first basic issue in analysing informal organisations is to identify the basic logic
behind the formation of informal groups as these are not created by the management of the
organisation but emerge on their own. In order to understand the reasons behind the
emergence of the informal groups, various theories have been formulated. These theories
are :
1. Propinquity theory,
2. Roman's interaction theory,
3. Balance theory, and
4. Exchange theory.
1. Propinquity Theory : The most basic theory explaining affiliation is propinquity. This
interesting word simply means that individuals affiliate with one another because of
spatial or geographical proximity, in an organisation employees who work in the same
area of the plant or office or managers with offices close to one another would more
probably form into groups than would those who are not physically located together.
There is some research evidence to support the propinquity theory and on the surface, it
has a great deal of merit for explaining group formation.
271
The drawback of this theory is that it is not analytical and does not begin to explain some
of the complexities of group formation. Some more theoretical and practical reasons need
to be explored.
2. Roman's Interaction Theory: According to George C. Romans, The more activities
persons share, the more numerous will be there interactions and the stronger will be their
shared activities and sentiments, and the more sentiments people have for one another, the
more will be their shared activities and interactions."
It is a very comprehensive theory and based on activities, interactions and sentiments.
These three elements are directly related to each other. The members of a group share
activities and interact with one another not just because of physical proximity but also to
accomplish group goals. The key elements is interaction because of which they develop
common sentiments for one another. These sentiments gradually get expressed through the
formation of informal groups. If any disturbance is caused to any of the three activities,
interactions and sentiments, it is likely to disturb all the others. Their relationships are
shown in the following figure:
The Inter-Dependence of Activities, Interaction and Sentiments 3. Balance Theory :
Another very comprehensive theory is a Balance Theory of group formation. This theory
as proposed by Theodore Newcomb states that "Persons are attracted to one another on the
basis of similar attitudes towards commonly relevant objects and goals. Once a
relationship is formed, it strives to maintain a symmetrical balance between the attraction
and the common attitudes. If an imbalance occurs, attempts are made to restore the
balance but if it cannot be restored, the relationship dissolves."
Thus, the balance theory is additive in nature in the sense, that it introduces the factor of
balance to the propinquity and interaction factors. There must be a balance in the
relationship between the group members for the group to be formed and for its survival.
The following figure shows the balance theory. Individual (A) will interact and form a
relationship/group with individual (B) because of common attitudes and values (C). Once
this relationship is formed, the participants strive to maintain a symmetrical balance
between the attraction and the common attitudes. If an imbalance occurs, an attempt is
made to restore the balance. If the balance cannot be restored, the relationship dissolves.
272
A Balance Theory of Group Formation 4. Exchange Theory—Exchange theory of group
formation derives its clue from social exchange theory which says that people involve in
social exchange on the basis of perceived reward-cost relationship in a particular
relationship. Exchange thoery of group formation suggests that an individual will (or will
not) join a group on the basis of the outcomes of reward and cost. Reward for joining a
group is in the form of gratifying the needs while cost is in the form of anxiety, frustration,
embarrassment, and fatigue. If the reward is equal to, or more than, cost, the individual
will join the group. In the reverse case, he will not join the group. Thus, the reasons cited
by other theories—propinquity, interaction, and balance—have roles in exchange theory
and those reasons must be evaluated in terms of reward and cost.
The various theories of group formation have attempted to explain the reasons for group
formation in different ways. However, no theory is able to explain the total factors which
go into group formation. Therefore, it is beneficial to identify these factors separately.
Why do People Join Groups ? Or
Practical Reasons for Group Formation
Besides the theoretical explanations for group formation and development, there are some
very practical reasons for joining and/or forming a group. Some important reasons are
explained as follows :
1. Companionship: The need for relationship with other people is one of the strongest and
most constant of human drives. Relationships give an individual, who earlier felt lonely
and miserable, gets recognition and his work life becomes pleasant and comfortable. Many
research studies have indicated that the employees who have no opportunity for social
contacts find their work unsatisfying and this lack of satisfaction often reflects itself in low
productivity and high rate of absenteeism and turnover.
2. Identity : We try to understand ourselves through the behaviour of others towards us. If
others praise us, we feel we are great. Groups provide many others who will laugh, praise
or admire us. Workers get more identified in small groups and so small groups tend to
enjoy high morale as compared to large groups.
3. Information: The informal group to which a member belongs is a source of
communication or information to him. A piece of information available to one member
will nearly reach all the members in a short span of time. An individual comes to know
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about what is happening in an organisation even if he has been on leave or is otherwise
away. The group may develop a special code or language for speedy communication. The
groups help reduce many of the psychological barriers to communication. Sometimes the
group will amend, amplify and interpret the news, once it is released. Thus, each person
gets a larger, more detailed and meaningul but at times, a distorted and erroneous picture
of what is going on in the organisation.
4. Security : Perhaps, the strongest reason for group formation is the people's need for
security. By joining a group, a person can reduce his insecurity, he feels stronger, has
lesser self doubts and is more resistant to threats. A person always derives reassurance
from interacting with others and being part of a group. The group protects its members
from the arbitrary policies and orders of the formal organisations and provides a
psychological buffer between the individual and the organisation. This often explains the
concept of unions.
5. Esteem : Membership in a prestigious groups is a source of enhanced self esteem. The
members will feel good about themselves by virtue of the group's power, prestige and
social standing. They will get opportunities for recognition and praise that are not
available outside the group.
6. Sense of Belongingness: It is an emotional need for friendship, love, affection and
affiliation. Most people have strong need for being with others who can understand,
support and help them when they are in need and render them moral and emotional
support in time of difficulty. The concept of family and friends fulfil this need. When
people are new to an organisation, they are eager to find friends with which they can check
their perception of new and uncertain environment.
7. Outlet for Frustrations : An individual may be faced with several problems relating to
his family life and work life. At times, he feels tremendous stress in life and gets
frustrated. If he shares his feelings and anxieties with someone, his tension is released to a
great extent. The social relations provide an important outlet for frustration. Informal
groups serve as safety values and help release frustrations, thus, avoiding any mental or
physical breakdown of the individual. Organisations which don't have the informal groups,
sometimes rely on the expensive system of employee counselling in which outsiders hear
employees problems and advise them accordingly.
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8. Perpetuation of Cultural Values : Common cultural background brings people together
and is a strong cementing force. People, sharing a common culture, are able to maintain
their cultural identity and even propagate their culture. A group with a particular cultural
value often takes up activities which help perpetuate those values. This, even gives,
psychological satisfaction to members.
9. Generation of New Ideas: Informal groups are a breeding ground for new ideas as they
provide a supportive environment in which the members can engage themselves in
creative thinking. Quality circles in Japan are an important example in this regard. Under
quality circles, workers meet periodically and discuss problems relating to quality and
come out with new ideas to solve the problems.
10. Self Evaluation: Groups help the members in evaluating themselves as against others.
By* employing any yard stick, an individual can judge himself against other members of
the group. This will help him in having a realistic self assessment and encourage him to
acquire the plus point of others or inculcate a competitive spirit. The group also provides
acceptable ways of compensating for an individual's deficiencies.
11. Job Satisfaction: Many jobs which appear superficially dull and routine are made
interesting by the group and spontaneity is encouraged and protected by the group. Certain
jobs can be done by the isolated workers, but working as a group often results in higher
motivation to the workers.
12. Power : Membership of group offers power to members in atleast two ways.
(i) There are sayings such as "united we stand, divided we fall" and "unity is strength."
Workers enjoy much greater power collectively than they do as individuals.
(ii) Leadership of a group enables an individual to exercise power over group members
even if he does not enjoy a formal position of authority in the organisation.
Organisation's Point of View for Informal Groups
Informal group satisfies some of the social and psychological needs of its members on the
one hand, and on the other hand, it can also prove useful from the organisation's point of
view. In fact, the findings of many social researchers suggest that informal groups are
essential for the organisational stability. Such a group can prove useful in the following
ways :
275
1. Lightening of Responsibility : A cooperate group can always be entrusted with some
responsibility which will lighten the manager's mental burden to some extent.
2. Filling the Gaps : An enlightened group can slso fill in gaps in management's abilities.
Sometimes, a subordinate who has knowledge in the area can help the superior, who does
not have adequate grasp over the problem.
3. Restraining the Authority : A group also helps to keep checks and balances on the
manager's excessive use of authority. A manager is not allowed to cross his limits or
bounds.
4. Proper and Careful Planning : A manager will be very careful in planning of other jobs
for the fear of the presence of the group.
5. Information : Groups act as a medium of information for the management. A set of
information, which the management is reluctant to express in writing can be conveyed to
the members through the informal communication channels of the group.
On the other hand, it conveys to the management also what is in the minds of the
employees. This information will help in avoiding resistance to change and aid in
implementation of decisions.
6. Potential Formal Managers : An organisation can easily recruit formal managers from
among informal leaders. Informal groups provide a reservoir to the management for future
managers.
Since jobs in organisations are becoming more complex and interdependent, the use of
group in performing task' functions will become increasingly important. That is why, the
above mentioned list of functions is not comprehensive.
These functions, whether from the member's point of view or from the organisation's point
of view, make the role of informal groups complementary to formal groups. Both
complement and supplement each other.
Working of Informal Organisation (Group)
As contrast to formal organisation where every process—role, status, authority
relationships, decision making, channel of communication, etc.—is prescribed, there is no
prescription in the case of informal organisation. Thus, such processes in informal
organisation take place in a most unstructured way, though these informal processes
interact with formal ones. As a result, they may affect, or may be affected by, formal
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processes. In particular, three elements-authority, leadership, and communication—
affecting and influencing human behaviour are very important in the working of informal
organisation :
1. Authority : Informal organisation is the result of personal and social relationships.
These personal and social relationships arise spontaneously. The network of relationships
in an informal organisation is not required by the formal authority. On the contrary, many
times, the actual relationships may be contradictory to the prescribed pattern. A basic
question is: What is the source of authority in informal organisation ? Authority in
informal organisation is personal as contrasted to positional authority in formal
organisation. Keith Davis has observed that 'power in informal organisation is earned by
group members, rather than delegated; therefore, it does not follow the official chain of
command. It is more likely to come from peers than from superiors in the formal
hierarchy; and it may be across organisational lines into other departments. It is usually
more unstable than formal authority, since it is subject to the sentiments of people.
Because of its subjective nature, informal organisation is not subject to management
control in the way that formal organisation is.
A person may hold some personal power in the informal organisation along with his
official authority; however, such power cannot be more than what other members of
informal organisation enjoy.
2. Leadership : Leadership is important for directing behaviour in informal organisation. It
is not necessary that leadership comes from superiors only as held by the scientific
management approach. Rather, any member of the informal organisation may be a leader.
A leader performs vital functions that contribute to the group's ability to survive in its
environment. These functions are: (i) he initiates action; (ii) he facilitates a consensus; and
(iii) he provides a link or liaison with the outside world, managers, other work groups, and
union. Any one performing these functions may become leader of the informal group.
However, superior is in a better position to perform these functions for members and he is
more likely to become informal leader, though in many cases, persons other than superiors
become much stronger leaders than superiors. There are several factors determining group
leadership, such as age, seniority, technical competence, work location, freedom to move
around the work area, and a responsive personality.
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3. Communication : Informal organisation is a need fulfilment device generated from
within and also from without when it is found that the existing formal communication
channel is inadequate or insufficient. The requirement of speedier communication
generates the need for informal channel which is supplement to the formal one. Chester
Barnard opines that the communication function of executives includes the maintenance of
informal executive organisation as an essential means of communication.
Significance of Informal Organisation (Group)
Informal organisations are quite significant because these affect the working of an
organisation and its members. However, these effects produce both functional and
dysfunctional consequences. On the one hand, informal organisations benefit both their
members and the organisation as a whole; on the other, they create lot of problems in the
smooth functioning of the organisation. Therefore, in analysing the role of informal
organisations, both these aspects should also be considered.
Functional Aspects of Informal Organisation (Group)
A comprehensive view of the various functions of informal organisation is presented as
below :
1. The informal organisation perpetuates cultural values which the group holds as
important. This function helps to preserve the group integrity. People who work together
naturally adopt common points of view that everyone is expected to share. The individuals
become wedded to the group as a result of constant association and socialising process. In
fact, the basic reason in the creation of informal organisation is the group values which
every member pursues.
2. Informal organisation provides social satisfaction by providing status; recognition, and
further opportunity to relate to others. Many jobs which appear superficially dull and
routine, are made more interesting by the individual ingenuity. Management defines a
rigid series of job requirements but workgroups provide a setting which spurts an
individual to modify the job situation more to his own liking. Thus, the job becomes more
interesting and satisfying.
3. Informal organisation helps in solving the work problems of members. It carries out its
tasks effectively through the help of other members, group-decisions, and sharing job
knowledge. The group's solutions to a problem may differ from what management expects
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and it may be even more effective because red-tape is eliminated; short-cuts are evolved :
informal channel of communication is evolved to cut across departmental boundaries. In
fact, where the technology imposes extreme interdependence, and precise and instant
coordination is required, the organisation depends on the group to control and specify the
individual's contribution to the total effort. All this contributes to the effective
performance of work.
4. Informal organisation establishes and maintains norms of behaviour which differentiate
between good and bad conduct, between legitimate and illegitimate activities, and between
moral and immoral acts. Abstract concepts, such as honesty, loyalty, cooperation, self-
sacrifice, etc., do not convey an immediate meaning except as they are used in operative
situations involving informal groups. Larger groups, particularly in professional pursuits,
often maintain ethical standards designed to further the goals of the overall membership.
However, all group standards are not consistent with the objectives of the larger
organisations. Many a time, groups do urge their members to produce less than they might
otherwise accomplish or do try to reject new assignment, or do show their resistance to a
change.
5. Group helps to protect its members from outside pressure. Probably the wU important
group standards are those that protect the groups against real imagined outside dangers,
particularly from upper management. Dynamic
dsations have a tendency to introduce change in work methods and rou-at a faster rate than
individuals can adjust to them. The place at which changes are introduced can be
materially altered by a determined work
6. Informal group acts to fill up the communication gaps of its members. In grfer to meet
the communication needs of its members, it develops systems and
els of communication. Such systems and channels cut across the hierar-and departmental
boundaries and transmit information much quickly, problems due to Informal Organisation
The working of an informal organisation produces both functional and dys-tional aspects.
On the one hand, it benefits both its members and organisation as a whole; on the other
hand, it creates difficulty in the smooth functioning of the organisation. The major
difficulties that emerge, because of sa&rmal organisation are resistance to change, role
conflict, rumour, and con-4nnity.
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1. Resistance to Change : Most dynamic organisations want change in vork methods and
routines: informal groups have tendency to perpetuate the status quo. Each group tries to
maintain equilibrium. In trying to maintain equilibrium, a group develops responses to
return to its perceived best way of life whenever any change occurs. Though people
perceive the outcome of a change individually if the outcome of change is precise and
definite, often, they show their reaction in group, and since informal groups are bound by
convention, custom, and culture, often they resist any change.
2. Role Conflict: Since informal organisations try to meet the social needs of their
members, there is a natural tendency to produce role conflict. An indi-
idual perceives role conflict when he has to fulfil conflicting requirements of both this
groups as well as of organisation as a whole. Such a conflict may be dysfunctional from
organisation's point of view. Much of the role conflict can be avoided by carefully
cultivating mutual interests with informal groups. The more the interests, goals, methods,
and evaluation system of formal and informal organisations can be integrated, the more
productivity and satisfaction can be expected.
3. Rumour: Rumour is a phenomenon of social communication that supplements the
transmission of information through formal communication. Rumour is a specific
proposition for belief, passed from person to person, usually by words of mouth, without
secured standards of evidence being present. Rumour deals with temporary events in a
way that implies that whatever is said is true even though there is not much information to
support it. The basic reason for the circulation of rumours is ambiguous circumstances and
relieving of emotional tensions felt by people in those ambiguous situations. Since most of
the time rumours carry false information, they become detrimental to organisational
functioning. The best course of action to deal with rumours is the identification of their
source and cause. Getting at cause is wise use of the preventive approach, instead of a
tardy curative approach. When people feel secured, understand the things that matter to
them, and feel on the lines of team, there are few rumours because there is very little
ambiguity in the situation.
4. Conformity : The informal groups exert strong pressures for conformity. When
conformity is mentioned, a person usually thinks of an autocratic boss and organisational
rules. The members identify so much with the informal group that it becomes a part of
280
their everyday life. Accordingly, they hardly realise the powerful pressures which it exerts
to get them to conform to its code of conduct. The conformity to informal group implies
that members become subject to wilful control of an informal leader who may manipulate
the group towards selfish or undesirable ends. The informal leader wields group power
without the offical control, weight of responsibility, and public regulations that formal
leader has. In this way, the informal group can become an instrument of neurotic source of
conflict or non-responsible rabble using the group for their own selfish ends.
Dealing with Informal Group (Organisation)
Informal organisation is a natural outcome of the operation of the social factors at work.
As such, it can neither be created nor dispensed with. It affects the functioning of the
formal organisation favourably as well as unfavourably. Therefore, managment has to
devise actions in such a way that makes the informal organisation to contribute positively
or to minimise its dysfunctional consequences. Management can adopt three types of
actions in this context.
1. Ignoring informal organisation,
2. Making use of informal organisation, and
3. Influencing informal organisation.
1. Ignoring informal organisation : Management can ignore the existence of informal
organisation and does not take any action. This is possible when the informal organisation
does not interfere strongly in the formal organisational processes. However, where the
impact of the former is strong on the latter, management cannot afford to ignore the
situation except only at the cost of its own peril. Management, sometimes, tries to evade
this reality by emphasising the formal organisation even to the point of trying to break up
what it regards as destructive cliques. But loyalty to the face-to-face group, to one's fellow
workers, is much stronger than loyalty to the larger entity. Thus, ignoring informal
organisation is not a desirable action.
2. Making use of informal organisation : Management can treat informal organisation as
complementary to formal organisation. This is based on maxim that "formal and informal
organisations are necessary for any group action just as two blades are essential to make a
pair of scissors workable. Management may make use of informal organisation by
establishing a rapport with informal leaders who may provide valuable information about
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what is exactly happening in the organisation which may not be available through formal
information system. This not only contributes to the organisational performance positively
but also helps in minimising the negative consequences of informal organisation.
3. Influencing informal organisation : Management can influence informal organisation
by taking suitable actions. It can modify informal behaviour to make it more meaningful
for organisational functioning. Since informal organisation operates during work as well
as away from work, management can influence it by such means as what management
communicates, which people are permitted to work close together, and how management
recognises informal leader. Keith Davis has identified following functions of a manager in
this context:
1. manager should let employees feel that management accepts and understands informal
organisation;
2. he should consider possible influence upon informal systems when taking any decision;
3. he can integrate interest of informal groups with that of formal organisation;
4. he can keep formal activities from unnecessrily threatening informal organisation in
general.
The implication of these actions is the adaptation of flexible and accommodating approach
towards informal organisation rather than a strong repressive approach to solve a problem
arising out of the functioning of informal organisation, because such an approach hardens
the attitudes of the members of informal organisation, consequently, leading to generate
counteraction and severe destructive conflicts. Thus, the best approach would be to
recognise the existence of informal organisation with formal one. Determinants of Group
Behaviour
The nature of group behaviour is an organisation is very complex. Group behaviour is
influenced by a number of factors which can be classified as follows:
A. External Factors
B. Group Member's Resources
C. Group Structure
D. Group Processes
E. Group Tasks.
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A. External Factors: A group is not an Independent identity but is created by an
organisation to perform certain specified work. Thus, a group has to work within the
framework provided by the organisation. Organisational factors that impose conditions for
group working are organisation's strategy, its resources, rules and regulations, authority
structure, performance evaluation and reward systems, physical work setting, and culture.
To the extent these are positive, group performance will be positive. In alternative
scenario, group performance will be negative.
B. Group Member's Resources: A group's potential performance depends, to a great
extent, on the resources that its individual members bring to the group. These resources
may be classified into two groups : knowledge, skills, and abilities; and personality
characteristics. If the knowledge, skills, and abilities of group members match with group
requirements, group performance is likely to be better. Besides these, members'
personality characteristics are also relevant to group performance. It has been found that
personality traits, such as sociability, openness, initiative, and flexibility contribute
positively to group performance while authoritarianism, dominance, and
unconventionality tend to result into poor group performance.
C. Group Structure: A group is not an unorganised mob of few individuals but a consious
and purposive creation. Therefore, the group must have structure just like an organisation
has structure. In simple terms, structure is the pattern in which various parts or
components of an object are interrelated or interconnected, in the case of a physical object,
such a pattern is visible but in the case of a social object like work group, this is not
visible. Therefore, the structure of a work group has to be deduced from its various
components and how they work. These are group composition, group size, roles,
leadership, group norms, group cohesiveness, and status. All these affect group
performance.
1. Group Composition : The composition of a group plays an important role in
determining group performance. Group composition is most often defined in terms of
homogeneity or heterogeneity of the group members. A group is homogeneous if the
members are similar in one or several ways that are critical to the work of the group, such
as age, work experience, education, technical speciality, etc. In a heterogeneous group, the
members differ in one or more ways that are critical to the work of the group. Whether
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homogeneous or heterogeneous group should be created depends on the type of task the
group is expected to perform. In certain types of tasks, homogeneous groups are more
appfopriate while in other types of tasks, heterogeneous groups are more appropriate as
shown in Table.
Table : Task variables and group composition
Homogeneous groups suitable for Heterogeneous groups suitable for
Simple tasks
Sequential tasks
Tasks that require cooperation
Tasks that must be done quickly
Complex tasks
Collective tasks
Tasks that require creativity
Tasks that need not be done quickly
2. Group Size : A group can have as few as two members or as many members as can
interact meaningfully and influence one another. Group size can have an important effect
on group performance. While a larger group has advantage over a smaller group in terms
of idea generation and availability of resources, it may produce inhibition for interaction
and communication among group members. Futher, a larger group's behavioural pattern
may result into social loafing which affects group performance adversely (discussed later
in this chapter). A smaller group may be effective in terms of interaction and commu-
nication among group members but lacks ability to handle complex tasks. Therefore, the
group size should be determined by taking into consideration such factors as nature of
tasks to be performed, maturity of group members, and the ability of group leader to
manage communication, conflict, and group activities. Though experts view that group
size of 5-7 members is the most effective; in certain cases, group size beyond these
numbers may be effective if the above factors are highly positive.
3. Roles : A role is the pattern of behaviours expected of a person occupying a particular
position in a social unit. Since a person may be part of several social units like family,
friendship group, organisation, etc. he may occupy several positions at the same time.
Even in an organisation working as an employee, a person may hold a position, say chief
accountant but the same person maybe a superior, a subordinate, a peer, a member of
finance committee, and so on. In every such form of position, behaviours expected from
him may be different. Thus, there are certain actual behaviours and they create role
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identity. There are two elements that define this role identity: role perception and role
expectations.
(i) Role Perception: An individual is expected to behave according to his own perception
in the group or organisation. The person forms this perception on the basis of certain
stimuli like job description, clues provided in training programmes, role narration by
peers, and so on. However, this perception may or may not be correct. In order to correct
this perception, analysis of role expectations is required.
(ii) Role Expectations : Role expectations are defined as how others believe one should
behave in a given situation. Combining both role perception and role expectations, actual
role.
1. Initial perception of employee's own role.
2. Manager's expectations from employee based on manager's perception of employee's
role.
3. Interaction of two sets of perception leading to develop employee's perception of the
employee's role as seen by the manager.
4. Prescription of actual role of the employee.
This process takes place in the case of group members too and each member becomes
clear what role one is required to perform to achieve group objectives. Unless roles are
clarified and agreed upon by group members, conflicts will inevitably arise.
4. Leadership : A group leader plays an important role in the functioning of the group. He
may take the group to a new height by channelising the group members' resources through
effective use of his leadership or may bring the group to low level through ineffective use
of his leadership. Role of leadership in managing an organisation has become so important
that it has attracted the attention of both management academicians and practitioners.
5. Group Norms : Group norms are the The oughts" or "should be" of behaviour. They are
prescriptions for acceptable behaviour determined by the group.
"Group Norms are a set of beliefs, feelings, and attitudes commonly shared by the group
members. These are also referred to as rules or standards of behaviours that apply to group
members".
A very comprehensive definition of group norms is given by The Handbook of Industrial
and Organisational Psychology. According to this definition, "All groups have established
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norms, that is, acceptable standards of behaviour that are shared by the group members.
Norms tell members what they ought and ought not to do under certain circumstances.
From an individual's stand point, they tell what is expected of them in certain situations.
When agreed to and accepted by the group, norms act as a means of influencing the
behaviour of group members with a minimum of external controls. Norms differ among
groups, communities and societies, but they all have them."
According to D. C. Feldman. (In the Academy of management Review), "Group norms are
the informal guidelines of behaviour and a code of conduct that provides some order and
conformity to group activities and operations. These rules are expected to be followed by
all the group members. These norms and rules generally develop gradually and informally
as group members learn as to what behaviours are necessary for the group to function
effectively".
From the above definitions, we can observe the following characteristics of group norms:
1. Just as an individual's characteristics are revealed through his personality, the
characteristics of a group are revealed or represented through NORMS.
2. Norms are the basis of behaviour or members in the group. For example it is an
unwritten norm that employees do not criticise their bosses in public.
Thus, this norm is related to the behaviour which is considered important by most group
members.
3. The norms are the basis for predicting and controlling the behaviour of good members.
For example, norms may include behaviour in a particular manner both within and outside
the group meeetings.
4. The norms are applied to all members, though very stringent uniformity is not followed.
In certain cases, some deviations may be allowed but not to the extent of jeopardising
group goals. For example, if a code of dress for the meetings or for the work place is there,
it is to be followed by all the members.
5. Norms also identify the values and ethics of the group members. They are established
on the basis of what is right and decent and expected of professionals.
6. Though formalised norms are written up in organisational manuals setting out rules and
procedures for employees to follow, but by far the majority of norms in organisations are
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informal. For example, you don't have to tell someone that it is unacceptable to gossip
while the meeting is going on.
Types of Norms
Every group has different established norms depending upon the nature of its members
and location. For example, the norms of factory workers will be different from the norms
of office workers. Moreover, the group norms may be strong or weak depending upon the
status of the group, the importance of behaviour to the group and the relative stability of
the group. Yet there are some common classes of norms which are common to all groups;
1. Performance Norms: The most common class of norms which is applicable to all the
groups is performance norms. Work groups typically provide their members with explicit
clues on bow hard they should work, how to get the job done, their level of output,
appropriate level of tardiness and so on. Norms regulate the performance and productivity
of the individual members. Workers who are performing below the lower acceptable level
are generally informally reprimanded and encouraged to produce more. On the other hand,
an ambitious worker who produces more and performs above the upper acceptable limit
set by group are also ostracized for encouraging the management to raise its expectations.
2. Appearance Norms: The second type of norms are appearance norms. These include
things like appropriate dress, loyalty to the work group or organisation etc. Some
organisations have formal dress codes. However even in their absence, norms frequently
dictate the kind of clothing that should be worn to work. Other appearance norms might
involve loyalty or confidentiality on the part of members. Workers are not expected to
report about fellow workers to supervisors.
Similarly, confidentiality is a powerful group norm so that no matter how much tension
may be between workers and management, the workers will not divulge company secrets
to competing organisations.
3. Arrangement Norms : These norms come from informal work groups and primarily
regulate social interactions within the group. With whom group members eat lunch,
friendship on and off the job, social games and the like are influenced by these norms.
4. Allocation of Resources Norms : These norms can originate in the group or in the
organisation and cover things like pay; assignment of difficult job and allocations of new
tools and equipment.
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5. Behaviour Norms: These are rules and guidelines defining the day to day behaviour of
people at work. This behaviour pattern may include punctuality as a habit, completing any
given assignments within the required time framework, not losing temper, showing respect
for other member's opinions and so on. Certain professionalism is expected from all
members and this professionalism is predictable form of behaviour.
Development of Norms
Norms usually develop gradually and informally as members learn what behaviours are
necessary for the group to function. Most norms develop in one of the following four
ways:
1. Explicit Statements Made by a Group Member: Explicit statements made by the
supervisors or a powerful member may become norms. Norm develop this way to prevent,
any threats to the status quo. For example, the supervisor may explicitly say that tea breaks
are to be kept to ten minutes and this will become a norm.
2. Critical Events in the Group's History: Critical events in the group's history set
important precedents. For example, a person who was standing too close to a machine was
injured in a work group. It became an established norm in that no person other than the
operator gets within five feet of any machine.
3. Primacy : Primacy is another way of forming group norms. Primacy refers to the first
behaviour pattern that emerges in a group. This behaviour pattern sets group expectations,
for example, if the first group meeting is marked by very formal interaction between
supervisors and subordinates then the group expects future meetings to be conducted in the
same way.
4. Past Experiences: Many norms develop because members bring their past experiences
from other groups in other organisations. This can explain why work groups typically
prefer to add new members who are similar to current ones in background experience.
Why are 'Norms' Enforced
Once the norms are established, they are enforced on members. But groups don't establish
or enforce norms for every conceivable situation. The norms which the group tends to
strongly enforce are those which are important to it. Norms which help in achieving the
twin aims of performing successfully and keeping morale high are considered to be
important. To be specific, the reasons why norms are enforced are the following:
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1. If it facilitates the group's survival: Groups do not like to fail, so they strongly
enforce those norms that increase their chances of success. This means that they will try to
protect themselves from interference from other groups or individuals.
2. If it increases the predictability of group members's behaviour: Norms that increase
predictability enable group-members to anticipate each other's actions and to prepare
appropriate responses.
3. If it reduces embarrassing interpersonal problems : Norms are likely to be strongly
enforced if they help the group in avoiding embarrassing interpersonal problems. Norms
will be important if they ensure satisfaction to their members and prevent as much
interpersonal discomfort as possible.
4. If it allows members to express the central value of the group and clarify what is
distinctive about the group's indentity : Norms that encourage expression of the group's
values and distinctive identity help to solidify and maintain the group.
5. If it reflects the preferences of the supervisor: Norms are likely to be strongly
enforced if these reflect the preferences of supervisor or other powerful group members.
6. Conformity: Conformity means adjusting one's behaviour to align with the norms of
the group. There is considerable evidence that groups can place strong pressures on
individuals to change their attitudes and behaviours to conform to the group's standards.
The groups enforce conformity with norms in many ways. They can reward people who
comply group norms by appreciating them, by listening to them in a respectful manner and
by making them leaders of the group. Also, they can take negative action against those
persons who deviate from group norms in the form of ridicule, or silent 'treatment' or by
withdrawing privileges or by ultimate action of expelling them from the grup. This
explains why individuals generally conforms to their group norms. They will not like to
separate from the group which satisfies their social needs and helps in achieving their
personal goals.
7. Group Cohesiveness : Group cohesiveness is another important factor, besides group
norms, which affects group behaviour. Group cohesiveness means the degree of
attachment of the members to their group. If group cohesion is high, the interaction
between members of the group is high and the degree of agreement in group opinion is
high. A cohesive group usually has the following features :
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1. The members share the group goals and norms and have common interests and
backgrounds.
2. The number of members is small.
3. The members interact among themselves quite frequently and interpersonal
communication is very effective.
4. Group loyalty among the members is high because the group enjoys high status.
5. The members stand united against any perceived external threats to the group.
6. The members keep themselves glued to the group as they feel that their needs would be
satisfied by the group.
7. The group has a history of past success.
D. Group Processes : Group processes refers to the communication patterns used by
members, group decision processes, leader behaviour, power dynamics and conflict
interactions. Group processes are significant as they can create outputs greater than the
sum of inputs because of the effect of synergy.
The term synergy is drawn from biology that refers to an action of two or more substances
that results in an effect that is much more than the summation of the individual substances.
We can use the concept to better understanding of group processes. For example, research
teams are often used in research laboratories because they can draw on the diverse skills of
various individuals to produce more meaningful research as a group than could be
generated by all of the researchers working independently. That is, they produce positive
synergy.
But where group members lack team spirit and trust among themselves, there may arise
social leafing which presents negative synergy.
E. Group Tasks : Research on group effectiveness tells us that management would be well
advised to use a larger group for the first task than for the second. The reason is that large
groups facilitate pooling of information. The addition of a diverse perspective to a
problem-solving committee typically results in a process gain. But when a group's task is
coordinating and implementing a decision, the process loss created by each additional
member's presence is likely to be greater than the process gain be makes. So the size-
performance relationship is moderated by the group's task requirements.
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The evidence indicates that complexity and interdependence of tasks influence the group's
effectiveness. Complex tasks are ones that tend to be novel or non-routine. Simple ones
are routine and standardised. The more complex the task, the more the group will benefit
from discussion among the members on alternative work methods. Similarly, if there is
high degree of interdependence among the tasks that group members must perform, they
will need to interact more. Effective communication and minimal levels of conflict, there-
fore, should be more relevant to group performance when tasks are interdependent.
Tasks that have higher uncertainty—those that are complex and interdependent—require
more information processing. If the group's tasks are simple and require little
interdependence among members, the group still may be effective.
Guidelines for Better Use of Group Dynamics
Group cohesiveness may initiate resistance to change. Therefore, it is the responsibility of
a manager to use group dynamics in such a way that the group may contribute to a
favourable attitude towards high standards and acceptance of changes.
Dorwin Cartwright has laid down the following guidelines :
1. The more attractive the group is to its members, he greater is the influence that group
can exert on its members.
2. In attempts to change attitudes, values or behaviour, the more relevant they are to the
basis of attraction to the group, the great will be the influence that group can exert on its
members.
3. The greater the prestige of a group member in the eyes of the other members, the greater
the influence he can exert.
4. Efforts to change individuals of a group, which if successful, would have effect of
making them deviate from the norms of the group will encounter strong resistance.
5. Strong pressure for change in the group can be established by creating a shared
perception by the members of the need for change, thus making the source of pressure for
change lie within the group.
6. Information relating to the need for change plans for change and consequences of
change must be shared by all relevant people in the group.
7. Changes in one part of a group, produce strain in related parts which can be reduced
only by eliminating the change or by bringing about re-adjustment in related parts.
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8. If the group is to be used effectively as a medium of change, those people who are to be
cared and those who are to exert influence for change must have a strong sense of
belongingness to the same group.
Importance of Groups to the Organisation
Group helps the organisation in better administration by performing the following
functions :
1. Solving Work Problems : Internal organisation helps in solving the work problems of
members. It allows them sharing job knowledge and taking decisions which affect a
number of jobs.
2. Better Coordination : Informal groups evolve short cuts and eliminate red tapism. They
facilitate smooth flow of information and quick decision making. All these ensure better
coordination among various individuals and departments.
3. Channel of Communication : These groups act to fill the communication gaps which
arise in the organisation. Information communication cuts across the hierarchical and
departmental boundaries and transits information with high speed. Managment can use
Informal channels to share information with the workers and get their reaction to
management's proposals.
4. Restraints on Managers: Informal groups do not allow the managers to cross their
limits. They restrict them from acquiring unlimited power and from using their power
unjudiciously.
5. Better Relations : A manager can build better relations with subordinates through
informal contracts. He can consult the informal leaders and seek their cooperation in
setting the things to be done by the workers.
6. Norms of Behaviour : Informal groups developed certain norms of behaviour which
differentiate between good and bad conduct and between legitimate and illegitimate
activities. These bring discipline and order among the employees.
7. Satisfied Employees : Cohesive informal groups provide satisfaction to the workers. As
a result, labour turnover and absenteeism are reduced and productivity is increased.
8. Developing Future Executives: Informal groups recognise talented workers as their
leaders. Such leader's can be picked by the management to fill vacancies at the junior
executive level in the future.
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13 TEAM BUILDING AND TEAMWORK
Introduction
Though the concept of team is of recent origin in management, this concept has been quite
popular in the fields like sports and games. Organisations have realised that conventional
grouping of individuals for performing certain specified types of task is not very effective.
Therefore, taking the clue from other fields regarding team effectiveness, many
organisations tried team concept. As a result these organisations became more effective
through team work, other organisations also started following this pattern. Today,
organisations are using teams. Hence, the significance of studying teams has increased.
Concept of Team
Team represents a group of people who work together and are accountable for achieving
the goals. A team is a cooperative group whose members interact with each other towards
the accomplishment of specified objectives. In many organisations, employees work in
regular small groups, called teams. The objective of team building is to get the people to
understand how they can use their own personal characteristics to contribute to the group.
Teams are usually small in size, possess a mix of skills, make their own decisions, about
planning, setting standards, scheduling, budgeting, training and the like, and are held
accountable and responsible for the task assigned to them.
In the works of Katzenbach and Smith, "A team may be defined as a group whose
members have complementary skills and are committed to a common purpose or goals for
which they hold themselves mutually accountable." Characteristics of a Team
On the basis of above discussion and definition, following characteristics of a team can be
derived :
1. Small Number of People—A team consists of small number of people because the
interaction and influence processes needed for the team to function can only occur when
the number of team members is small. When large number of people are involved, they
have difficulty in interacting and influencing each other, in utilising their complementary
skills, meeting goals, and holding themselves accountable for results.
2. Complementary Skills—A team consists of people with complementary skills to get the
things done. Three types of skills are usually required in a team. First, the team needs to
have members with the technical or functional skills" to do the job. Second, some
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members need to have problem-solving and decision-making skills to help the team to
identify problems, determine priorities, evaluate alternatives, and make decisions about the
direction of the team. Third, members need interpersonal skills to manage communication
flow, manage conflicts, direct questions and discussion, provide support, and recognise the
interests of all team members. These complementary skills are required in the team so that
it can function well without receiving support from outside.
3. Common Purpose and Performance Goals—A team has common purpose and
performance goals which set the tone and direction of the team. A team comes together to
pursue a set of goals which becomes the focus of the team; all decisions and actions are
directed to pursue these goals. Team members pull together, find resources within
themselves, and develop and use skills to achieve team goals.
4. Common Approach—A team evolves a common approach which is followed by all
team members in true spirit. Team's approach usually covers how work will be done,
social norms regarding dress, attendance at meetings, norms of fairness and ethical
behaviour, and what will or will not be included in team activities.
5. Mutual Accountability—A team holds itself mutually accountable for results, rather
than merely meeting a manager's demands for results. Mutual accountability is essentially
a promise that team members make to each other to do everything possible to achieve their
goals, and it requires the commitment and trust of all members.
Team Vs. Group
Before proceeding further, it is essential to make distinction between a group and a team
as sometimes, both the terms are used interchangeably. According to dictionary, a group
usually refers to an assemblage of people or objects gathered together whereas team
usually refers to people or animals who work together. Thus, a team places more
concerted action than a group. In the organisational context, group and team are quite
distinct. We have seen in the previous chapter that a group is essentially an assemblage of
two or more persons who are interacting with one another in such a manner that each
person influences and is influenced by other persons. The collection of people who happen
to report the same superior in an organisation can be called a work group. Group members
may not be committed to a common goal. From this point of view, we can say that a team
is a group with a common goal. But a team differs from a group in other ways also.
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Orsburn et al have differentiated group and team on three dimensions: job categories,
authority, and compensation system as shown in the table.
Table: Difference between Team and Group
1. The basic purpose of a group is to interact primarily to share information.
Team
1. The basic purpose of a team is collective performance.
service. Teams enable members to avoid wasteful effort, reduce errors, and react to
customers' needs in a better way. This happens because teams set their own goals and each
team member is committed for those goals. Further, through teamwork, synergy effect (2
+ 2 = 5) is generated because of complementary skills of team members. It has been found
that organisational performance has increased to the time of 20 per cent after
implementation of team formation.
2. Employee Benefits : Employees tend to derive benefits as much as organisations in a
team environment. Over the year, employees' expectations from their jobs have increased.
Now-a-days, employees want to work under least possible hierarchical control: they
believe in self-control rather imposed control; they want quick feedback of their
performance; they believe in human dignity rather master-servant relationship; and they
want autonomy and freedom in job performance. In a team environment, all these
expectations of employees are fulfilled. As a result, employees have a better work life and
experience lesser work stress.
3. Reduced Costs : Organisations based on teams tend to reduce their costs of operations.
Team members feel that they have a stake in the outcomes, want to make contributions
because they are valued, and are committed to their team and do not want to let it down.
This tendency results into direct cost reduction as there will be fewer scraps and fewer
errors. There is another form of cost reduction. When team members are satisfied, they
show reduced absenteeism and turnover. Because of lower absenteeism, there is higher
degree of utilisation of existing faculties. Similarly, when employee turnover is low, costs
involved in hiring substitute employees are also reduced.
4. Organisational Enhancements: In the changing environment, every organisation has to
adapt itself with changing environmental needs. This adaptation requires replacing old
way of working with new way of working which comes through creativity and innovation.
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Team-based organisational working is characterised by increased creativity, innovation,
and flexibility. Since team members focus on the outcomes of team effort they always
remain keen on finding new ways to make these outcomes positive. Disadvantages/Costs
of Teams
While teams are important for organisations, they should not be treated as panacea for all
organisational ills as they have their own costs. Such costs may be expressed in terms of
switching over from traditional system to team system and faulty team development. Both
these issues require further elaboration.
When traditional system characterised by hierarchical relationships, performance
evaluation based on employee's behaviour, rewards based on seniority, and so on are
replaced by the team system, it creates stress and anxiety in the minds of both
management and employees. It can be mentioned here that any type of major change
creates stress and anxiety as people are not sure about the outcomes of the change. Change
from traditional system to team system is a major change which may generate anxiety in
the minds of both managers and employees. Managers may express frustration and
confusion about their new roles as coaches and facilitators instead of being bosses in the
hierarchical system. Employees may feel like losers during the change process. Some
traditional staff groups, such as technical advisory staffs, may feel that their jobs are in
jeopardy as teams will do more and more of technical work formerly done by technicians.
There may be anxiety over issues like reward system and relative importance of positions
that employees are holding in the traditional system.
Another type of cost associated with teams is faulty team development. Though there is
standardised form of team development, this form cannot work in the case of some
organisations owing to their peculiar characteristics. If team development process is not
adopted properly, it may result into confusion instead of clarity. Because of this reason,
many organisations abandon team development prematurely which is the most dangerous
and detrimental for the organisation.
If costs of teams are analysed, it can be inferred that faults are not with teams but how they
are developed and used. If developed and used effectively, they are assets to an
organisation, otherwise, they will turn out to be a liability. Types of Teams
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In an organisation, there may be different type of teams. Types of teams may be based on
their constitution (whether team members are drawn from a single functional area or from
a number of interrelated functional areas), purpose (whether teams are created to perform
functions of recurring nature or these are created to solve specific or set of specific
problems that an organisation may face at a particular point of time), and power entrusted
(whether the teams will have all types of power needed for performing its functions like
self-manag-ing teams or only limited power will be given to teams that is needed for per-
forming day-to-day functions). Based on these criteria, Stewart et al have proposed four
types of teams-problem-solving team, cross-functional team, self-managing team, and
virtual team. Out of these, team members have face to face interaction amongst themselves
in first three types of teams-teams, problem-solving teams, crossfunctional teams and self-
managing teams. In virtual teams, members do not interact among themselves face-to-face
but they interact among themselves only through the use of communication technology. A
description of these teams will show how they function and what results they achieve.
1. Problem-Solving Team—The concept of problem-solving teams emerged during 1980s
with the introduction of quality circles, particularly in Japan. Now-a-days, besides quality
circles, problem-solving teams exist for other functions too. A problem-solving team, also
known as corrective action team, is constituted to solve specific problems which an
organisation may be facing. Team members for such a team are drawn from those areas
where the problems requiring solution exist. They may be from a single department or
more than one department and depending on the situation, such a team is constituted on
the following lines to make it effective :
(i) Selecting the specific problem which cannot be solved by an individual alone.
(ii) Selecting the personnel who have intimate knowledge of the problem.
(iii) Communicating the nature of the problem and need for its solution.
(iv) Giving the team a high profile within the organisation.
(v) Implementing the solution suggested by the team.
(vi) Recognising the contributions made by the team.
The proplem-solving team applies the problem-solving methodologies and techniques to
get deep into the problem, provides different alternative solutions to resolve the problem,
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evaluates the likely outcomes of each alternative, and finally suggests a particular
soulution and its implementation.
2. Cross-Functional Team—A cross-functional team draws its members from different
functional areas, particularly from those functions which have high interdependence. For
example, a task force is essentially a temporary cross-functional team; committees
composed of members from different functional areas are other examples of cross-
functional teams. While task forces and committees have been in use since long, the
popularity of cross-functional teams increased tremendously in the late 1980s in
automobile industry of the USA to coordinate complex projects. The basic objective of a
cross-functional team is to make decisions and solve problems in those areas which cannot
be done by a particular functional department. Because of interdependence of various
functions in an organisation, cross-functional teams are created at different levels. Cross-
functional teams are effective means for allowing people from diverse areas within an
organisation to exchange information, develop new ideas and solve problems, and
coordinate working of complex projects.
3. Self-Managing Team—In today's context, more emphasis is given to self-managing
teams, also known as empowered or self-directed teams. Self-managing teams have the
following characteristics :
(i) They are empowered to share various management and leadership functions.
(ii) They plan, control, and improve their own work processes.
(iii) They set their own goals and inspect their own work.
(iv) They often create their own schedules and review their performance as a group.
(v) They prepare their own budgets and coordinate their work with other departments.
(vi) They usually order materials, keep inventories, and deal with suppliers.
(vii) They are frequently required to acquire new knowledge training which they might
need.
(viii) They may hire their own replacement or assume responsibility for disciplining their-
own members.
(ix) They, and no other person outside the team, take responsibility for the quality of their
products of services.
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4. Virtual Team—Various teams, as discussed earlier, undertake to do their work by face
to face interaction of members. Virtual teams use computer technology to link together
physically dispersed members in order to achieve a common goal. In a virtual team,
members interact among themselves online— using communication Links like wide area
networks, video conferencing, electronic mails—whether they are located in the same
building, same city, or continents apart. Virtual teams can do all the things that other
teams can do— share information, make decisions, and complete tasks. Members of a
virtual team may come either from the same organisation or there may be members drawn
from different organisations like customers, suppliers, joint venturers, etc. There are three
primary factors that differentiate virtual teams from face-to-face teams: (1) the absence of
paraverbal and nonverbal cues, (2) limited social context, and (3) the ability to overcome
time and space constraints. All these factors affect the operation of virtual teams. This
effect is as follows :
1. In face-to-face interaction, people use paraverbal (tone of voice, voice volume, and
inflection) and nonverbal (facial expression, eye movement, hand gestures, and other ways
of body language) cues along with verbal expression. t Paraverbal and nonverbal cues help
clarify communication by increased meaning. These are not available to members of
virtual teams. Therefore, there is a possibility of miscommunication.
2. Virtual team members often suffer from low degree of social contacts. Therefore, they
are not able to duplicate normal give and take of face-to-face discussion. This is the reason
why virtual teams tend to be more task-oriented and exchange less social and emotional
information. With the result, virtual team members experience less satisfaction in group
interaction.
3. Virtual teams enable members to work together even though they are located at
geographically dispersed places. This feature of virtual teams provides opportunity to
draw resourceful members from different places who may not otherwise be able to work
together. High Performance/Effective Team
Since teams are important to an organisation, it should create teams that are effective. An
effective team is the one which contributes to the achievement of organisational objectives
by performing the task assigned to it and providing satisfaction to its members. In the
previous chapter, we have seen that a group's effectiveness depends on a variety of
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variables, both within the group and outside it. Same is the case with-a team as it shares
some common features with a group. Therefore, understanding of these variables is
important before creating teams.
Composition
Ability and skills
Personality
Roles
Size
TEAM EFFECTIVENESS
Process
Common purpose Specific goals Commitment Accountability
Context
Resources Leadership Climate of trust Performance evaluation and rewards
Fig.: Variables in team effectiveness Thus, it can be seen that apart from team
composition and process, team
effectiveness depends on work design and context in which a team works. These
are mostly organisational variables.
Characteristics of an Effective Team
Based on the variables that determine team effectiveness-composition,
process, work design, and context, it can be said that an effective team has the
following characteristics :
1. Skills and Role clarity : For an effective team, two things are required from its
members : skills which are complementary to the team requirement and understanding of
one's own role as well as roles of the team members. While skills are relevant for job
performance, understanding of roles helps members to meet the requirement of one
another thereby solving the problems which the team faces. Thus, team members may
tend to contribute positively to the teamwork. Even if one member lacks behind, he may
tend to affect others because of chain reaction just like a rotten apple also harms its
companions.
2. Supportive Environment: A team loaded with skilled members cannot perform well if
the organisational culture is not supportive for that. If the organisational culture is not in
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time with high achievement, team members may not show high degree of enthusiasm and
they will use only a part of their skills in performing the jobs. Therefore, managers at
higher levels particularly at the top level should set organisational culture which enthuses
team members to put their best.
3. Superordinate Goals: Superordinate goals are those which are above the goals of a
single team or a single individual. Organisational goals have hierarchy and a lower-level
goal is derived out of a higher-level goal. An individual works better if he is able to link
how his goal attainment leads to the attainment of a higher-level goal. These superordinate
goals, then, serve to focus attention, unify efforts, and stimulate more chesive team efforts.
4. Team Rewards: Team performance depends on how rewards are linked to team
performance and how members perceive this linkage. If team members perceive that
rewards are contingent on team performance, they will put their maximum. Rewards of
both types—financial and non-financial—should be taken into consideration. Further,
organisations need to achieve a careful balance between encouraging and rewarding
individual initiative and growth and stimulating full contributions to team success.
Innovative non-financial team rewards for responsible behaviour may include the
authority to select new members of the group, make recommendations regarding a new
supervisor, or proposed discipline for team members.
How to create Team ?
Team creation is a long process. Since there are many factors which affect team
effectiveness besides team composition and team process, lot of preparation has to be
made before implementing team creation programme. Therefore, team creation process
involves two parts :
(A) Planning for team creation
(B) Implementation of team creation.
(A) Planning for team creation—Planning for team creation may be divided into two
parts—making decision for team creation and preparation for implementation of team
creation.
(i) Decision for team creation—Before creating teams, an organisation must evaluate
whether it has supporting conditions for creating teams. After all, teams have their own
costs and benefits. Therefore, it is essential to assess whether benefits of teams will be
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more than their costs in a given situation. This situational context is very important to
evaluate as many organisations have attempted at creating teams but they abandoned the
idea in between because organisational situation did not support effrective functioning of
teams. Usually, organisations constitute a steering committee to assess whether they are in
a position to create teams meaningfully. Sometimes external consultants are also invited to
participate in this committee. The steering committee collects information on different
aspects of organisation relevant to team creation and prepares a feasibility report. This
report is discussed at the top level along with steering committee members. If
organisational conditions are found to be suitable, decision for team creation is made. If
the conditions are not favourable, team creation programme is postponed to a later date.
Meanwhile, efforts are made to create suitable conditions by changing organisation
structure, organisational policies, and even the personnel through training. When the con-
ditions turn to be favourable, the decision for team creation is made.
(ii) Preparation for Implementation—Once the decision is made to change to a team-
based organisation, pre-implementation preparation is undertaken. According to Orsburn,
following preparatory activities are carried out:
1. Mission statement is prepared to express how the organisation will be benefited by
creation of teams. The mission statement must be consistent with overall organisational
mission and strategy.
2. Once the mission is formulated, the steering committee needs to decide where teams
will be created first. Selection of first site is crucial because it sets the tone for the success
of the total programme. The initial site should be one which conforms the maximum
number of conditions suitable for team creation. This site may be a department, division,
or plant of the organisation.
3. After selecting the initial site, a design team is constituted. This team is a select group
of individuals who are aware of team working in general as well as conditions of initial
site including personnel. The design team is responsible for working out operational
details to make teams perform well. The initial team members are selected by the design
team. The design team also works out the details of transition from the current state of
affairs to the team environment.
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4. At this stage, a plan is prepared when and how authority from management to teams
will be transferred. The process of transferring authority to teams is a gradual process at
the intital stage. This is the reason that teams created initially have much lower authority
than what they might have at maturity stage.
5. The last stage of planning for implementation is to write the tentative plan for the initial
teams. This plan is, generally, prepared through the combined efforts of steering
committee and design team/s. The draft plan (a) recommends a process for selecting the
people who will be in the first team; (b) prescribes roles and responsibilities for all the
people who will be affected by team creation (team members, team leaders, facilitators,
support teams, managers, and even top management); (c) recommends what training
different groups associated with teams will need; (d) identifies specifically what work
processes will be involved; (e) describes what other organisational systems will be
affected; and (f) lays out a preliminary master schedule for the next two to three years.
(B) Implementation of Programme—Once the pre-implementation activities are
completed, stage is set for undertaking programme of team creation. Team creation as a
start-up and leading to self-managing team is a long process and it takes lot of time.
Katzenbach and Smith suggest that creation of effective teams goes through five stages
and during each of these stages, team performance varies considerably as shown in the
following figure :
Thus, the five stages of implementation of team creation programme are start-up, reality
and unrest, leader-centred teams, tightly-formed teams, and self-managing teams. Let us
see how these phases are completed.
1. Phase-I—Start-up Phase—This phase consists of two broad activities such as :
(a) Selection of Team Members—Team members are selected according to the guidelines
provided by the draft plan prepared before the team implementation. Though criteria for
selecting team members may differ from team to team, depending on the nature of teams,
their duration, nature of task, size, etc., usually, the considerations that are taken into
account in selecting team members are team members' skills (technical, problem-solving
and decision making, and interpersonal), members' personality characteristics
(extroversion, agreeableness, conscientiousness, and emotional stability), members'
flexibility, and members' preferences.
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(b) Initial Training—Team members need training on continuous basis. Training at the
initial stage is informational or awareness training that sends the message that top
management is firmly committed to teams and that teams are not experimental. Training
covers the rationale for moving to a team-based organisation, how teams were selected,
how they work, roles and responsibilities of teams, compensation, and job security. In
general, training covers the technical skills necessary to do the work of the team,
administrative skills necessary for the team function within the organisation, and
interpersonal skills necessary to work with others in the team and throughout the
organisation. Since additional attention is paid to the team members through training and
other cues, their enthusiasm runs high, consequently results into higher team productivity.
2. Phase-II—Reality and Unrest—Sometimes after the initial enthusiasm, team members
and those associated team working start realising reality of the situation and their initial
enthusiasm starts turning into frustration. For team members, unfamiliar tasks, more
responsibility, and worry about job security replace hope for the opportunities presented
by the team approach into unrest. Other personnel associated with the team working start
feeling ambiguity about their roles in the new environment. Managers make the mistake of
staying away completely from the newly formed teams, thinking that the whole idea is to
let teams manage themselves. In reality, managers need to be very visible to provide
encouragement, to monitor team performance, to act as intermediaries between teams, to
help teams acquire needed resources, and to foster right type of communication. Because
of ambiguity prevailing in teamwork, team performance goes down which frustrates
managers.
3. Phase-Ill—Leader-centred Teams!—In order to overcome frustration developed at the
second phase, managers start taking active part in the working of teams. They even give
direction about how team functioning is to proceed smoothly. This situation seems to be
like reverting back to manager-centred organisation structure. However, team members
keep on learning about self-direction and leadership from the team and start to focus on a
single leader in the team. In addition, the team begins to think of itself as a unit as
members learn to manage themselves. At this stage, managers begin to get a sense of
positive possibilities of organising capacity in teams and start withdrawing slowly from
the daily operations of the teams. They begin focusing on standards, regulations, systems,
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and resourceshf the teams. The steering and design committees must take steps to ensure
two things during this phase. First, there should be rise of strong internal teani leaders.
Either the team: leaders may be appointed by the organisation, or team members may
select their own leaders for a long-term period, or team leaders may be rotated
periodically, may be on monthly or quarterly basis. Second, each team should develop its
own sense of identity. Some of the methods that can be appplied for this purpose are visits
of matured teams by newly developed teams, continued training in problem solving, and
flexibility to teams to develop social activities and distinct identity in the form of choosing
their own names, logos, etc.
4. Phase-FV—Tightly-formed Teams—In this phase, teams start working as tightly
formed teams and their focus is on Internal working. They remain busy in solving their
problems,,managing their schedules and resources, and resolving internal conflicts. For a
team, the prime concern becomes its own productivity and communication among
different teams which starts diminishing. With the result, inter-team rivalry gets
heightened leading to unhealthy competition among different teams. This becomes
detrimental to the teams as well as the organisation. At this stage, managers can take
certain steps to ensure that each team continues to do the things that have resulted into
high productivity and there is mutual cooperation among different teams. First, managers
need to keep open the communication channels aijiong different teams through rotating
team representatives who meet regularly to discuss what works and what does not and
rewarding teams who communicate and cooperate with other teams. Second, managers
need to provide performance feedback to teams as early as possible. This feedback should
contain how individual teams are performing in their own area of operation and how they
are cooperating with other teams. Third, teams are given authority to manage themselves
according to the plan envisaged. Managers have to ensure that all team members have
followed the plan to pet training in all the skills necessary to do the work of the team. By
the end of this phase, teams should be ready to take responsibility of managing
themselves.
5. Phase-V—Self-managing Teams—This phase is the end result of planning and
implementation of team creation. By this time, teams are able to meet or even exceed their
performance goals. Team members have taken responsibility for team related leadership
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functions and managers, at this stage, might have withdrawn from daifr operations of the
team and may have confined themselves to provide counselling to teams. Though teams
are mature and functioning well, several things have to be done to keep them on track.
First, individuals and teams need to Continue training in job skills as well as team and
interpersonal skills. Second, Support systems need to be constantly improved to facilitate
team productivity. Third, teams always need to improve their Internal supplier and
customer relationships within the organisation as a team is dependent on other teams for
getting inputs from other teams and supplying outputs to some other teams.
Before concluding this chapter, let us discuss two types of teams, first with shorter span of
life and second with longer span of life. These are task force and quality circle. Task Force
A task force is somewhat similar to an adhoc committee but distinct from it. It is like an
adhoc committee because it is usually temporary, but differs because it has broader powers
of action and decision as well as responsibilities for investigation, planning, research, and
analysis. A task force is made up of a group of people with different backgrounds who are
assigned a specific task or mission. Since the tenure of a task force is over when the task
or mission is over, usually membership in the task group is temporary; each person
remains part of it only so long as his skills and knowledge are required and task force
continues. The task force also differs from a matrix organisation in the sense that the latter
appears almost on continuous basis and personnel are assigned tasks in different projects
at different periods of time. A task force is constituted when the organisation faces some
unusual problem which cannot be solved by a single individual or by a single department.
Such task forces are quite usual in government to fight drought or flood, to eradicate some
non-recurring disease, or tackle specific administrative problems. In business
organisations too, task forces may be constituted to develop and launch a new product, to
select a new project, or to negotiate certain terms and conditions, etc.
The essential feature of a task force is that it is a temporary creation of a separate unit in
the organisation to take up a task which is (i) quite new to the organisation, (ii) which
cannot be solved by a single individual or department, (iii) the tenure of which may not be
very long. In such a case, a temporary group is constituted with personnel drawn from
several departments depending on the need of skills and experience. They are on the full-
time basis in the task force. When the work of task force is over, they return back to their
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original department. A task leader is also appointed to coordinate the activities of the task
force. However, task force boundaries are not defined by its immediate hierarchical
structure because the leader is not the boss of people working as members with the task
force. Advantages of Using Task Force
The concept of task force emerged during the period of Second World War when armies
faced the unusual problems of combating the opposite armies. Since the War lasted for
several years, there were many developments in war tactics, particularly the development
of weapons, espionage of opposite armies, etc. All these tasks were carried through the
task forces. The concept of task force was later applied to civil and business organisations
as these organisations also faced the problems of similar nature, that is, problems requiring
the attention of people with different backgrounds on a temporary basis. Thus, in modern
organisations, task force is usually suitable when the organisations are facing certain
unusual problem which is of non-recurring nature. The main advantages of using task
force in such a case are as follows :
1. By task force, executives with special skills may pool their talents to focus on a problem
with an intensity not possible for them while carrying their regular positional
requirements. They become free from the limitations of departmentally-oriented thinking
and have the opportunity to think about the problem concerned as a whole.
2. Task force provides unusual training ground for the executives who are assigned tasks.
They work in a different environment and job requirement is also different. Therefore,
they can enlarge their understanding of working.
3. Task force is able to release the creative energies not channelised by the regular system
of hierarchical authority and communication. It is to be noted that authority and
communication in task force are highly unstructured which provide more stimulus for
innovative thinking.
4. It is temporary measurement for solving unusual problems and, therefore, does not put
pressure on the organisation for the long run unlike other departments. Functional
departments or divisions, once created, have to be maintained even though they may not
be required, because they become a sort of permanent things in the organisation. This is
why more and more organisations are using task forces for solving unusual problems.
Problems in Task Force
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Though a task force can solve unusual problems, it may create many more problems in the
organisation, particularly if it is not handled properly. The major problems of task forces
are as follows :
1. Task forces are potentially disturbing to an ongoing organisation. Departmental heads
have to give the services of their subordinates for the work which may not have direct
bearing on the working of their own departments. Thus, they are reluctant to part with the
services of their key men.
2. The creation of task forces may not be looked favourably by those who are not selected
for it. Generally, there is a feeling that those who are taken for task force are perceived to
be more qualified, and after the work of task force is over, they will be promoted. This
type of feeling may have demoralising effect.
3. Creation of task forces tends to create feelings of independence and loose attachment to
the formal organisation. This arrangement may make the supervision work of
departmental heads more difficult who must have developed the habit of building a close-
knit unit of loyal men in a team.
Most of the problems enumerated above are mostly operational and can be overcome
through effective creation and working of task forces. Many of the misgivings can be
avoided by explicit declaration of the intention and objectives of task force and the basis
of selection of personnel and treatment of personnel after the task force is abolished. It can
be taken to solve only unusual problems and should not be created unnecessarily in the
organisation. Quality Circle
The concept of Quality Circles emerged from quality control. Quality circles are quite
popular in Japan. Looking at their success, many organisations in U.S.A. and India have
also attempted to implement quality circles. It should be noted that quality circles provide
a future-oriented approach. They seek high quality products in the current production run
and in the future.
A quality circle is a small group of employees doing simlar or related work who meet
regularly to identify, analyse and solve product-quality problems and to improve general
operations.
The quality circles are relatively autonomous units (ideally about 10 workers), usually led
by a supervior or a senior worker and organised as work unit. The workers, who have a
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shared area of responsibility, meet periodically to discuss, analyse and propose solutions
to ongoing problems.
Some typical efforts in improving production methods and quality involve reducing
defects, scrap, rework and downtime, which are expected to lead to cost reduction as well
as increased productivity. In addition, the circles intend to focus attention on the self-
development of workers and the improvement of working conditions. Through this
process, there is improvement of workers' morale and motivation, stimulation of
teamwork, and recognition to their achievements.
Objectives of Quality Circle
Quality circles are organised to achieve the following objectives :
1. Overall improvement of quality of products manufactured by the enterprise.
2. Improvement of production methods and productivity of the enterprise.
3. Development of the employes who take part in quality circles.
4. Encouragment of invovative ideas among the employees.
5. Building high morale of employees by developing team-work in the organisation.
Benefits of Quality Circles
Quality circles are supposed to bring the following benefits for the organisation:
1. Formation of quality circles in Japan and other countries has helped in bringing out
several innovations and changes.
2. Quality circles have proved to be a valuable tool for increasing productivity, improving
quality and increasing workers'job satisfaction.
3. Membership in a circle means a participative environment that provides identification
with work-group. Participation encourages commitment of the employees in producing
quality products. Through quality circles, every one becomes involved with the operation
of the company. Everyone from top to bottom works towards a single goal, i.e., success
through quality. Developing Quality Circles in an Organisation
Quality circle is a new concept and its introduction may cause some resistance on the part
of the employees. Therefore, before introducing quality circle, all precautions must be
taken as in case of any organisational change. The steps in the introduction of quality
circle are briefly discussed below :
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1. Selling the Idea of Quality Circle—The workers must be educated about the need and
significance of quality circle from the point of view of the organisation and the workers.
The scope of quality circles should also be adequately publicised. The wdrkers should be
allowed to clear their doubts about quality circle. Attempt should be made to seek their
voluntary cooperation in implementing quality circles in the organisation. The managment
may also arrange for some kind of training of the employees who want to form quality
circles.
2. Constitution of Quality Circle—The employees should be encouraged to form quality
circles by drawing members doing the same kind of work. The membership of a quality
circle should not exceed ten to twelve members. The information about the constitution of
a quality should be made available to the top managment.
3. Analysis of Quality Problems—The members of a quality circle are supposed to meet
periodically, say once a month. They would collect data and analyse the same. Past
records, employees suggestions, customers suggestions are very important in this regard.
This will lead to identification of the problems that hinder quality.
4. Problem Solving—The members of a quality circle will discuss the problems
thoroughly and make a list of possible solutions. The merits and demerits of each solution
will be analysed. The final decision will be taken by the consensus of all members.
5. Presentation of Suggestions to the Management—The suggestions for improving the
quality are put in writing and forwarded to the management. Top management may form a
committee to evaluate the suggestions of different quality circles in the organisation. The
committee may also meet the members of the quality circles, if it has any doubt. The final
report will be prepared by the committee. It will list the suggestions which must be
implemented for improving the quality of goods and services.
6. Implementation—Proper publicity should be given to the suggestions of quality circles
which are being put into practice. The will motivate the employees as they will feel the
importance of having contributed to well-being of the organisation. The implementation of
the suggestions should be properly monitored by the management so that the change over
to new methods is smooth. Problems in implementation of Quality Circles
There are several pitfalls in quality circles. Despite their merits, they have failed in many
companies. The common hurdles in initiating quality circles in organisations are as under:
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1. Negative Attitudes—The employees and even managers may have negatives attitude
toward the quality circle. NatuaraUy, they will resist its implementation. The wrong
notions of the people about quahty circles should be cleared. They should be properly
educated about the concept of quality circle and its utility.
2. Lack of Ability—The workers in India have a low level of education. They also lack
leadership qualities. To overcome this hurdle, Workers' Education Programme should be
initiated. It must educate the workers about quality circle.
3. Lack of Management Commitment—The top managment may not be committed to the
philosophy of quality circle. The employees may not be alowed to hold meetings of
quality circles during the working hours. The employees will be least interested in
devoting their personal time to the quality circle. Therefore, the managment should allow
the workers to hold quality circle meetings periodically during the working hours. It
should extend the assistance required by the quality circles for their smooth working.
4. Non-Implementation of Suggestions—The workers will feel disheartened if their
suggestions are turned down without any reason. The suggestions of each quality circle
should be given due weightage. If they are likely to improve quality of products, they must
be implemented. This will enthuse the members of the quality circle.
For the effective implementation of the concept quality circles in any organisation, the
following guidelines must be followed :
(i) Commitment of top management is esential to the scheme of quality circles.
(ii) The attitudes of managers and workers about quality circles should be modified by
providing them necessary information about the positive aspects of quality circles.
(iii) Sufficient training should be provided to the managers and the workers for putting
into effect the quality circle programme.
(iv) Useful suggestions of quality circles should be duly acknowledged and implemented
by the top management. Sufficient publicity through notice boards and company
publications should also be given to the contributions of various quality circles.
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14 MANAGEMENT OF CONFLICT
Introduction
Conflicts are bound to occur in organisations when two or more individuals, groups or
units disagree over issues, or get emotionally upset over different viewpoints. In other
words, wherever there is interaction, there is conflict. Conflict could be personal,
interapersonal, interpersonal, intergrouping, inter organisations, or between and among
nations. Conflicts may have important implications on the work and effectiveness of the
persons and group involved.
The nature and intensity of conflict varies from individual to individual, and from group to
group and it may put a manager in a difficult situation. Therefore, the managers would
have to expend time and efforts to resolve them so that work may proceed with members
working together in harmony. This chapter analyses the various aspects of conflicts so as
to minimise them for better organisational functioning. Cocept of Conflict
The concept of conflict, being an outcome of behaviour, is an itegral part of human life.
Conflict can be defined in many ways and can be considered as an expression of hostility,
negative attitudes, aggression, rivalry and misunderstanding. It is also associated with
situations that involve contradictory interests between two opposing groups.lt can be
defined as a disagreement between two or more individuals or groups.
Kenneth W. Thomas has defined conflict as follows :
"Conflict is a proces 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."
Newstrom and Davis have defined conflict as follows:
"Conflict is any situation in which two or more parties feel themselves in opposition. It is
an interpersonal process that arises from disagreements over the goals or the methods to
accomplish these goals."
Marry Parker Follett most simply defines conflict as "the appearance of difference,
difference of opinion, of interest." This definition assumes the presence of friction
between opposition parties.
Lous Pondy has described that term conflict is used in four ways in the literature to
describe:
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(i) antecedent conditions of conflictful behaviour, such as scarcity of resources or policy
differences;
(ii) affective states of individuals involved, such as stress, tension, hostility, anxiety, etc;
(hi) cognitive states of individuals, that is, there perception or awareness of conflictual
situation; and
(iv) conflictual behaviour, ranging from passive resistance to overt aggression.
A comprehensive view of the literature on conflict shows the extreme diversity of
definitions of conflict.
"Conflict has been defined as the conditions of objective incompatibility between values
and goals; as the behaviour of deliberately interfering with another's goal achievement;
and as emotionally in terms of hostility. Descriptive theorists have explained conflict
behaviour in terms of objective conflict of interest, personal styles, reactions to threats,
and cognitive distortions."
-Ralph H. Kilman
Features of Conflict
On the basis of definitions of conflict, we may derive its various features which are as
follows :
1. Conflict arises because of incompatibility of two or more aspects of an element; it may
be goals, interests, methods of working, or any other feature.
2. Conflict occurs when an individual is not able to choose among the available courses of
action.
3. Conflict is a dynamic process as it indicates a series of events; each conflict is made up
of series of interlocking conflict episodes.
4. Conflict must be perceived and expressed by the parties to it. If no one is aware of a
conflict, it is generally agreed that conflict does not exist even though there may be
incompatibility in some respect.
Nature of Conflict
Conflict could be either substantive or emotional in nature :
1. Substantive Conflict : Substantive conflict involves fundamental differences over goals
and how they are accomplished. Disagreements over resource allocation, policies and
procedures, task assignments, rewards and the like are substantive in nature.
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2. Emotional Conflict: Emotional conflict arises from feelings of resentment, fear, anger,
anxiety about one's own position and the like, as may be experienced in superior
subordinate relationships, interpersonal interactions with co-workers, groups, other
departments etc.
Conflict must be distinguished from competition, even though sometimes intense
competition leads to conflict. Competition is directed towards obtaining a goal and one
group does not interfere with the efforts of another group while conflict is directed against
another group and actions are taken to frustrate the other group's actions towards goal
achievement.
Changing View of Conflict
The earlier traditional view of conflict considered it harmful, destructive and unnecessary.
This view was consistent with the attitudes that prevailed about group behaviour and
interaction during 1930s and 1940s. The view held that conflict should be avoided at all
costs. These days, the view of conflict is changing. Let us discuss it in detail.
1. Traditional View of Conflict: The traditional view of conflict is that it is unhealthy and
should be ayoided at all costs. It has been considered dysfunctional primarily cause of the
adverse effects on productivity. Conflict could cause losses in productivity because groups
would not cooperate in getting jobs completed.
Classical writers have a belief that conflicts produce disequilibrium in the organisation,
hence, affect productivity adversely, One of the classical thinker. Fayol has suggested that
if there is a conflict between individual and organisational interests, organisational interest
must prevail over the individual interest. Thus, traditional thinkers had a very conservative
view about conflidfl as they considered it totally bad and advocated for its avoidance.
2. Human Relations View of Conflict: While classical thinkers have treated organisations
to be free from conflicts, human relations view treat, that conflict is a natural phenomenon
of any group or organisation. Conflicts arise because of individual differences in terms of
goals, values, attitudes and perceptions. The conflicts produce negative consequences,
therefore, these should be resolved amicably to achieve good human relations. Conflict
arises due to faulty policies and structure of the organisation leading to distortion and
blockage in communication. The human relationists assumed conflicts as harmful and
must be avoided by creating environment of goodwill and trust.
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3. Interactionist View : Modern View of Conflict: In recent years, management scholars
have shifted their view of conflict. The view is based on the belief that conflict is not only
a positive force in a group but is also necessary for a group to perform effectively.
The more modern view of conflict holds that conflict may in fact, under certain conditions,
be necessary for performances effectiveness, because harmonious, peaceful and
cooperative groups can become static and some level of conflict can keep the group alive,
self critical and creative. This is specially true in such organisations as Research and
Development, Advertising agencies and so on.
Thus, in the light of above divergent views about conflicts, we may arrive at some
conclusions if we analyse the positive and negative consequences/ aspects of conflicts.
Positive Aspect of Conflict
Positive aspect of conflict is derived from the interactionist view. This view does not
believe in static environment. This is true because an organisation has to build equilibrium
in the light of environmental changes and conflict is one the sources to arrive at this
equilibrium. Modern writers feel that a minimum level of conflict is essential in the
organisation to keep the members alert and creative. If we look conflict from this point of
view, some of the positive aspects of conflict are as follows :
1. It helps in analytical thinking : Conflict may induce challenge to such views, opinions,
rules, policies, goals and plans that would require a criti cal analysis in order to justify
these as they are or make such changes that ma; be required. According to H.M. Carlisle,
"No situation is more detrimental to an| organisation than letting poor decisions go
unchallenged
2. It helps in increasing cohesion : Conflict between different organisations develops
loyalty and cohesion within an organisation. It develops a greater sense of group identity
in order to compete with outsiders. It fosters a dedication and commitment to
organisational and group goals.
3. Conflict when expressed can clear the air and reduce tension : Some disagreements if
unexpressed, can lead to imaginative distortions of truth, sense of frustration and tension,
high mental pressures and biased opinions resulting in fear and distrust. However, when
conflict is expressed, it may show the cause of conflict to be a minor ar resulting in
cooperation and compromise.
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4. It serves as foundation for organisational development: Conflict with the status quo is a
pre-requisite to change. Creative and innovative people are always looking for grounds to
challenge the status quo. These challenges lead to search for alternatives to existing
patterns that leads to organisational change and development.
5. Conflict promotes competition resulting in increased efforts : Some individuals are
highly motivated by conflict and severe competition. For example, a professor who is
turned down for a promotion due to conflict within the division may work harder to prove
that he is more capable and deserves a promotion. Similarly, if a group of production
workers during the day shifts finds out that the similar group at night shift produced more,
it would result in improved performance for the day shift also. Therefore, such conflict
and competition leads to high level of effort and output. Dysfunctions/Negative Aspect of
Conflict
Negative aspect of conflict is based on dysfunctional consequences in the organisation.
Just as conflict within an individual can destroy his ability to function, similarly conflicts
within organisation may result in some types of blocks in decision making.
The dysfunctional consequences of conflict may be specified as follows :
1. Tensions: Conflict creates tensions among the groups and individuals. It generates
feelings of anxiety, uncertainty, frustration and hostility among the people. Conflict may
create co-ordination problem and sometimes may become difficult to resolve for the
management.
2. Division of Energy : Conflicts leads to diversion of energy from constructive activities
towards destructive activities. Conflict may distract the attention of individuals from
organisational goals. In this sense achievement of personal goals become more important
than organisational goals.
3. Unhealthy Atmosphere : Conflict creates an unhealthy environment in the organisation
i.e., existence of tensions, frustrations, fear, resentment, blockage in communication, lack
of cooperation etc. This type of atmosphere is destructive for the achievement of
organisational goals.
4. High Employees Turnover Rate : If the conflicts are not resolved immediately, it may
cause high labour turnover. When the conflict is not resolved in the favour of the
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individual, he may leave the organisation which results in loss of production and trained
employee.
5. Disequilibrium in Organisation : Conflict brings disequilibrium in the organisation. The
conflicting parties use their energies in conflictual behaviour. An organisation is said to be
in equilibrium when contribution of individual matches inducement for him. Under
conflictual situaion contribution does not match inducement which causes disequilibrium
in the organisation.
6. Conflict as a Cost: If the conflicts are not handled properly these may weaken the
organisation. It is cost to the organisation. Conflict promotes distrust among the
employees which affect their efficiency i.e., negative effect on the productivity.
7. Dissatisfaction: When the conflict is resolved properly and is accepted by both the
parties then all is well. If does not happen so, will create dissatisfaction among the
individuals in the organisation and they will lose concentration on the job.
After going through the functional/dysfunctional aspects of conflict it may be clear that
high degree of conflict is dysfunctional. Low degree of conflict is also not functional
because it does not induce people for better achievement. However, the optimum level of
conflict is functional as shown following figure :
Stages in Conflict
An we have mentioned earlier, oonflict is a process. This process progresses through
different stages. There are five stags in conflict episode as pointed out by Pondy. These are
latent conflict, perceived conflict, felt conflict, manifest conflict and conflict aftermath as
shown in following Figure :
them. This aspect is important as various stages of a new conflict are likely to be governed
by the previous conflict episode. The various stages of conflict episode take place in the
following manner :
1. Latent Conflict : At this stage, the conflict has not taken a shape, therefore, it is not
apparent. It may occur in sub-conscious mind. Some of the antecedents that establish
conditions from which conflict may occur are :
(i) Competition for scare resources.
(ii) Communication barriers causing inadequate and distorted information.
(iii) Divergence among submited goals and methods of work.
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(iv) Role ambiguities.
Competition creates the basis of conflict when the aggregate demands of participants for
resources exceeds the resources available in the organisation. Goal divergence is the
source of conflict when two parties which must cooperate on some joint activity are
unable to reach a consensus on concerned action.
2. Perceived Conflict : Parties to the conflict may perceive about incompatibility of the
antecedents of conflict though, sometimes, the perception may be wrong. Perceived
conflict occurs because of the misunderstanding of the parties, caused particularly by the
lack of communication. Thus, such conflict can be resolved by improving communication
between the parties.
3. Felt Conflict: At this stage, parties to the conflict feel that they have some conflict
among themselves. Felt conflict differs from perceived conflict. A person may have
serious difference with another over some issues but this may not make him tense or
anxious. It is the personalisation or internalisation of differences that causes conflict.
There may be organisational or extra-organisational factors responsible for this
internalisation. For example, inconsistency in demands from the organisation and
individual needs may create internalisation of conflict situation. Similarly, conflict
becomes internalised when the whole personality of the individual is involved in the
relationship.
4. Manifest Conflict: This is the stage when two parties to the conflict show a variety of
conflictful behaviour such as open aggression, sabotage, apathy, withdrawal, work to rule,
etc. depending on the issues involved in the conflict and the stand that the parties may
take.
5. Conflict Aftermath : At this stage, attemps are made to resolve the conflict through
conflict resolution mechanism. Depending on the nature of conflict resolution mechanism,
either the conflict may be suppressed or resolved amicably. If the conflict is merely
suppressed, the latent conditions of conflict may be aggravated and get exploded in a more
serious form. If the conflict is resolved amicably, a basis for cooperative behaviour is
established between the parties.
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Issues Involved in Conflict
Another issue which helps in understanding the nature of conflict is the issues involved in
the conflict. Tensions and conflicts may arise because of several factors like economic,
social, and psychological. Sometimes, these factors may exist in such a way that a person
may feel tension and conflict; at other times, the person may perceive these factors
incorrectly and the feeling of tension and conflict arises. Thus, diagnosing the issues is a
necessary pre-condition for handling conflicts successfully. There are four basic issues
which may be involved in a conflict either exclusively or jontly with others. These are
facts, goals, methods, and values.
Facts: Conflicts may occur because of disagreement that the persons have over the
definitions of a problem, relevant facts related to the problem, or their authority and
power.
Goals : Sometimes, there may be disagreement over the goals which two parties want to
achieve. The relationship betwen goals of the parties may be viewed as incompatible with
the result that one party may achieve the goal at the cost of the other.
Methods : Even if goals are perceived to be the same, there may be difference over the
methods-procedures, strategies, tactics, etc. -though goals may be achieved.
Values: There may be differences over the values-ethical standards, considerations for
fairness, justice, etc. These differences are of more intrinsic nature in persons and may
affect the choice of goals or methods of achieving them.
Types of Conflict Situations
It is important for the managers to understand the type of conflict as it has both negative
and positive aspects. There are five basic types of conflicts that may exist in the
organisation. These are discussed as below :
1. Interpersonal Conflict : This is the most common conflict which is found amongst
individuals. It may concern to disagreement over organisational objectives, policies and
procedures. Interpersonal conflicts arise because of competition among individual for
limited resources. It may also occur due to difference in perceptions, values, status etc.
Interpersonal conflicts may be presented in two forms-vertical and horizontal conflict. . .
A. Vertical Conflict: These conflicts arises between superior and subordinates on acount
of superiors attempt to control the behaviour of subordinate. Subordinate resist the
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exercise of being under control. It is important to clear that more differences between
superior and subordinate will create more problems for the smooth functioning of the
organisation.
B. Horizontal Conflict: This is the conflict which occurs between individuals at the same
position in the organisation. Individuals at the same level may interact with each other
regarding, exchange of any information, suggestions, advice, counselling etc. This
interaction between individuals at the same level position may give rise to conflict over
any issue.
2. Inter-group Conflict: An organisation has many departments, sections and working
groups. Terms inter-group conflicts are releated to organisational structure. For example,
conflict between management and union is the most common conflict in an organisation.
According to Lawrence and Lorsch, these conflicts may occur due to-
(A) Difference in views of different groups, about organisational goals.
(B) Difference in perception of people in the groups.
(C) Difference in work orientation because of time and perspective goals. CD") Notv
clarity as to which group is responsible for which kind of certain
activities.
(E) Difference in reward system in the organisation.
3. Conflict between Individual and the Group : There are formal and informal groups in
the organisation. Each group has some norms and standards to be followed by the
members of the group. Sometimes, members may not agree with the group methods. This
may cause conflict within the group. For example, a group is going on strike for same
reason and some members of the group may not agree for going on the strike. This may
raise conflict between the member and group.
4. Conflict within Individual: Conflict within the individual occurs when his role, job
does not conform with the values and beliefs held by him.
5. Inter-organisational Conflicts : This conflict occurs between the organisations
depending on each other. For example, it may be between buyer organisation and supplier
organisation over the quantity, quality, delivery schedules etc., between government
agencies, between union and organisation. This type of conflict must be handled properly
to keep the organisation running.
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Levels of Conflict
In an organisation, conflict may occur at individual level in the form of intra individual
and interpersonal conflict, at the group level in the form of intragroup and intergroup
conflict, and organisation level in the form of intra organisational and inter organisational
conflict. Understanding of conflict at all there levels is essential for its effective
management.
A. Individual Level Conflict
The analysis of conflict may start at the individual level itself. Since organisation is
composed .of various individuals, many conflict develop at individual level. The
individual level conflicts may be analysed in two ways: intraindividual and inter-
individual or interpersonal.
Though conflict requires two parties, it may also take place within an individual itself.
Conflict at intrapersonal level occurs because a smooth progression of the need drive-goal
cycles does not occur in reality. Within evey individual, there are usually a number of
competing goals and roles. Thus, an individual experience two types of conflicts in
himself: goal conflict and role conflict.
I. Goal Conflict
A common source of conflict for and individual in an organisation which has both positive
and negative features is the existence of two or more competing goals. Goal conflict
occurs when two or more goals block each other. There can be three alternatives to goal
conflict: approach-approach conflict, approach-avoidance conflict, and avoidance-
avoidance conflict.
(i) Approach-Approach Conflict : In this situation, the individual is caught between
trying to decide upon one or another of two attractive goals, which are mutually exclusive.
Approach-approach conflict hardly seems to be a conflict each other because whichever
choice the individual makes, he will attain a positively-valued outcome. The problem
comes in when the balances or desirabilities are roughly equal. This type of conflict has
probably least impact on organisational behaviour. Approach-approach conflict can be
analysed in terms of Festinger's Theory of Cognitive Dissonance. Dissonance is a
psychlogical state where an individual feels discomfort or conflict when he is faced with
two or more alternatives or goals to a decision. Although these alternatives occur together,
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they do not belong or fit together. In such a situation, the person tries to avoid the
dissonance by manipulating the information for rationalising the particular decision he
makes seeking more favourable information about the choice made and avoiding the
information causing dissonance.
(ii) Approach-Avoidance Conflict: In this situation, the individual has both positive and
negative feelings about trying a goal because the goal pos-sesses both attractive and
repulsive characteristics. This may arouse great deal of conflict in the person and may
cause the person to vacillate anxiously at the point where approach equals avoidance. This
happens because the positive aspects of a given goal are stronger and more salient at a
distance (in time and/or space) than the negative aspects. As the person gets nearer to the
goal, the negative aspects become more pronounced, and at some point the person may
hesitate or fail to progress any further. For example, managers engaged in long-term
planning typically are very confident of a goals (plan) they have developed for the future.
Yet, as the time gets nearer to commit resources and implement the plan, the negative
aspects of the plan seem to appear much greater than they did at the stage of developing
the plan. Managers in such a situation may reach the point where approach equals
avoidance. The result is a great deal of internal conflict and stress. This type of goal
conflict is very relevant for organisational behaviour.
(iii) Avoidance-Avoidance Conflict: This is the situation where the individual must choose
between mutually exclusive goals, each of which possesses unattractive qualities. Unless
other alternatives are available, such a conflict has a tendency to stay unresolved. This is
so because closer one gets to choice, the more the negative aspects of the choice create a
tendency to avoid the choice. If the individual makes a decision towards one of the
avoidance-avoidance choice, the closer he gets to implementing that decision, the more
likely he is to be repelled by the negative characteristics of the choice, retreating towards
the other decision. Ultimately, he can be seen to bounce back and forth, from dilemma to
dilemma. Such a situation is stressful and anxiety arousing because of the perceived
inability to escape either of two painful options. Generally, a third alternative is available
to the individual in the organisational setting. He may leave the organisation. If this can be
done, the conflict a quickly resolved, however, the choice in this case shifts to anxiety-
producing search for another job. This may produce conflict with the situation of
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remaining in the organisation versus leaving the organisation. Thus, using punishment as a
measure to perform something disagreeable or threatening is effective only to the extent
that the individual cannot leave the situation.
The understanding of goal conflict is important from the point of view of integrating
individual and organisational goals as far as possible. While approach-approach conflict
may be mildly distressing for the individuals, other goal conflicts may be quite
dysfunctional for both organisation and its individual. The general approach of the
management should be to reslove goal conflicts by building compatability, not conflict,
between personal and organisational goals. 2. Role Conflict
An individual performs a numbers of roles. Although all the roles which he brings into the
organisation are relevent to his behaviour, in the study of organisational behaviour,
however, his organisational role is most important. In the organisation, every person is
expected to behave in a particular manner while performing a specific role. When
expectations of role are materially different or opposite from the behaviour anticipated by
the individual in that role, he tends to be in role conflict because there is no way to meet
one expectation without rejecting the other.
There may be four types of conflict which are as follows : (i) Intra sender role conflict:
There may be intra sender role conflict where the expectations from a single member of
role set may be incompatible.
This happens when a person is called upon to perform a work within specified limit but it
may not be possible to do the work within that limit.
(ii) Inter sender role conflict: There may be inter sender role conflict where the
expectations sent from one sender are in fonflict with those from one or more other
senders.
(iii) Inter-role conflict : There is inter-role conflict when an individual occupies two or
more roles simultaneously and expectations associated with those different roles are
incompatible.
(iv) Role-self conflict: There may be role-self conflict. It occurs when role requirements
violates the needs, values or capacities of a person. Sarbin view that role-self conflict
occurs in three situations.
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(a) When the individual occupies a role which is not consistent with images, needs and
expectations of the self.
(b) When the individual is biologically inadequate to fulfil the role expectations, and
(c) When due to gaps or deficiencies in the process of development of self, the person fails
to perceive alternatively the expected behaviours associated with the role.
Factors in Role Conflict
All those factors which determine the role expectations are associated with role conflict in
an organisation. Such factors maybe classified into three categories : role ambiguity,
organisational position, and personal characteristics.
1. Role Ambiguity : When role expections are inadequately defined or substantially
unknown, role ambiguity exists. If the expectations associated with a role are unclear or
ambiguously defined, the individual will experience difficulty in enacting the role. Role
ambiguity and consequently role conflict also increases when there is lack of role
continuity. All orders gradually unfold themselves. This is particularly true when
individual who are fitted into these roles have a continuing orientation towards their
proper fulfilment. The potentiality for conflict is increased in those situations where
individuals are forced into roles without adequate preparation for them.
2. Organisational Position : Organisational positions also determines the role conflict
and ambiguity. This is so particularly when a person has to perform a variety of
organisational roles assigned to him by the organisation. Moreover, a person, while
performing his formal roles, also performs informal roles which may be mutually
incompatible. Besides, there are certain organisational positions where such role conflict is
inherent. For example, such as a position of supervisor in the organisation. Often, he is
called 'man in the middle' or 'marginal man.' One set of expectations of his role is that he is
part of the management team and should have the corresponding values and attitudes. A
second set of expectations is that he comes from the workers' group and should have their
values and attitudes. A third set of expectations is that he is a separate link between
management and workers and should have his own unique set of values and attitudes.
Conflict arises in the mind of the supervisor as to which expectations he should fulfil.
Whyte and Gardner observe that 'the supervisor is a bumping post. He is a bumping post
because he is in the middle: he has to take it from both ends; and those running the place
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don't give him any credit for it.' Though the supervisor represents the extreme case of
organisational role conflict, every position in the modern organisations experience role
conflict in varying degrees. Such conflict is quite evident in line-staff positions.
3. Personal Characteristics: Role conflict also arises because of personal characteristics.
Katz et al have found the several personality dimensions mediate significantly the degree
to which a given intensity of objective conflict is experienced as strain by the person.
These personality dimensions include emotional sensitivity, introversion-extroversion,
flexibility-rigidity, and need for career achievement. They have found that 'the effects of
objective role conflict on interpersonal bonds and of tension are more pronounced for
introverts. The introverts develop social relations which, while something congenial and
trusting, are easily undermined by conditions of stress. The preference of such people for
autonomy becomes manifest primarily when social contacts are stressful, that is, others are
exerting strong pressures and thereby creating conflict for them. In a similar fashion,
emotional sensitivity mediates the relationship between objective conflict and tension,
with emotionally sensitive persons showing substantially higher tension scores for any
given degree of objectives conflict. An individual who is strongly achievement-oriented
exhibits a high degree of personal involvement with his job, and the adverse effects of role
conflict are more pronounced for him than for those who are less involved. Effect of Role
Conflict
Role conflict undersirably affects organisation in the sense that it may provide conflicting
situations where the human beings can apply their efforts. Thus, there is a possibility that
some of the efforts may go waste. This is true particularly in the case of inter-role conflict.
For example the conflict between two organisational positions may lead to organisational
inefficiency. The extent of the undersirable effect from role conflict depends upon the
major variables such as :
1. Awareness of role conflict
2. Acceptance of conflicting job pressures
3. Ability to tolerate stress
4. General personality make-up.
The management's attempt towards managing role conflict should be to avoid the
situations where role conflict arises. Though role conflict can not be completely done
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away,it can be minimised by proper role prescription, changes in authority and
responsibility, and creating proper atmosphere for individual need satisfaction.
Interpersonal Conflict
In an organisational setting, there may be several forms of interpersonal conflicts, such as
hierachical conflict between various levels of management, funcitional conflict between
occupational specialists, professional vs. professional conflict, and so on. These conflicts
may be interpreted in two forms : vertical conflict and horizontal conflict.
1. Vertical Conflict: Vertical relationships, that is mostly in the form of superior
subordinate relationship, results into vertical conflicts which usually arise because
superiors attempts to control the behaviour of his subordinates, and subordinates resist
such control. A subordinate may resist such control as he feels that his superior tries to
control activities outside the scope of his control and he perceives conflict with his
superior and the latter may feel when his attempt to control is diverted. He is likely to
interpret subordinate's resistance as due to resentment of the exercise of personal power.
This perception of the behaviour may be grounded either on realities or may be due to
misunderstanding between superior and subordinate.
The non-resolution of this conflict may not necessarily terminate the relationship;
however, this may become a serious problem affecting the efficiency of the organisation.
More differences between superior and subordinates may create more conflict between
them which ultimately adds more inefficiency to the organisation. It may be argued that a
superior enjoys the hierarchical support because of his position in the authority
relationship; he may suppress the conflict and thereby he can remove it's consequence but
it is possible that he may be denied the full cooperation of his subordinates and he may be
prove to be a poor superior thereby causing his position weak to become in the
organisation.
2. Horizontal Conflict: Horizontal conflict at interpersonal level is among the persons at
the same hierarchical level in the same function or in different functions. Within each
functional group, there may be many individuals and these individuals interact among
themselves. Such interactions may be contacts for the purpose of giving, taking, and
soliciting advice, counsel, information, and skilled assistance on difficult problems. As
discussed in Chapter 12, these interactions may be cooperative or conflicting depending on
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the nature of persons involved in interaction and situational variables. Causes of
Interpersonal Conflict
There are two major reasons for interpersonal conflicts in organisations : personal and
situational.
1. Nature of Persons : The types of persons involved in the interaction process determine
to a great extent the degree to which the interaction may be cooperative or conflicting.
Following factors are important in this context.
(a) Ego States : As discussed earlier, people interact with particular ego states. Ego states
are the person's way of thinking, feeling, and behaving at any particular time. If ego states
are not complementary, the conflicting situations takes place. Since, people are not aware
about others adequately, often, such situations arise. Lack of complementary ego states
may ultimately lead to interpersonal conflict.
(b) Values Systems : People having different dominant value systems may develop
conflict in their interaction. Value system is a framework of personal philosophy which
governs and influences individual reactions to any situation. Thus, people having different
value systems may interpret with the things and situations differently which may reflect
the choice of different methods of working and behaving. Such differences become the
basis of interpersonal conflict.
(c) Socio Cultural Factors : People coming with different socio cultural backgrounds may
develop conflict among themselves. Many interpersonal conflicts based on caste, religion,
region, and family backgroud are based on socio-cultural differences. These differences
may lead people to perceive the personal interests as conflicting.
2. Situational Variables : The various factors discussed above are related with the persons
concerned who are interacting among themselves. There may be several situational factors
which also generate interpersonal conflict. These factors either generate the conditions
under which the persons having personal differences may heighten these or may sink these
differences. If the differences are heightened, these may lead to conflicts. Following are
the major situational variables which generate conflicting relationships.
(a) Interest Conflict: The most important situational variable is when people in a group or
an intergroup see their interest differently. This may not be because of the basic nature of
the man but may generate because of the situations. People have different permutations
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and combinations in order to protect their self interest if the situation so warrants. Though
such grouping of persons may be based on several other factors, as discussed in Chapter
13 often the conflict of interpersonal interest is one of the main reasons.
(b) Role Ambiguity : As discussed earlier, role ambiguity is one of the reasons for role
conflict. However, it may also develop into interrole conflict specially if various roles
interacting have not been clearly specified. Thus, organisation structure itself may be
responsible for such type of conflicts.
B. Group Level Conflict
Conflict may occur at group level. A group constitutes two or more persons who interact
in such a way that each person influences and is influenced by others. Groups exist in
every organisation and they affect the behaviour of their members. They not only affect
the behaviour of their members, rather, they have also an impact on other groups and the
organisation as a whole. In this interaction process, there may be two types of conflict:
intragroup (within the group itself) and intergroup (between the groups).
1. Intragroup Conflict
Intragroup conflict may be thought of in terms of group characteristics and to some extent,
interpersonal conflict, specially if two persons are from the same group. A group consists
of a number of persons whose interactions at a given time generate a system of values,
norms, and sanctions appropriate to the nature of the task on which they are working,
which has created a set of well-defined role and status relations which are interdependent.
Intragroup conflict may arise in three situations :
(i) When group faces a new problem or task,
(ii) Where new values are imparted from the social environment into the group; and
(iii) Where a person's extragroup role comes into conflict with his intragroup role.
Intragroup conflict is seen more when people come from different socioeconomic
backgrounds and have differents political and religious views. The disagreement may be
over ethics, the way power should be exercised, and moral considerations or assumptions,
justice, fairness, and so on are interpreted. Such differences may affect the choice of either
goals or methods of achieving goals.
2. Intergroup Conflict
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Intergroup conflict arises out of the interaction of various groups. There are many factors
in the organisation which determine the intergroup relations. These factors can influence
relations between two or more groups. If these factors are not positive, they tend to create
conflict among groups. These factors are goal incompatibility, resource sharing, task
relations uncertainty absorption, and attitudinal set. These factors are described below to
show how these can lead to cooperative or conflicting relations among groups.
1. Goal Incompatibility : The goals of two groups can have a powerful impact on their
relationship. Decision makers often use goals to indicate then-relative preference. The
accomplishment of the stated goals of each group may require interaction with one or
more of other groups. The ideal state may exist when each group perceives its goals as the
goals of the organisation as a whole and the y als of other groups as compatible with one
another and mutually reinforcing. However, goals are not always perceived or designed in
such a way as to be quite compatible and mutually reinforcing.
Intergroup conflict arises because of goal incompatibility, that is, goal attainment by one
group may prevent or reduce the level of goal attainment by one or more other groups. The
conflict between marketing and production departments in business organisation is a
classic example of this conflict. Similar such conflicts arise in line and staff departments,
as discussed later. Labour-management conflict also arises because of incompatibility of
goals. This conflict, however, is affected more by distributive and integrative subprocess,
discussed further.
Though goal incompatibility is the cause of intergroup conflict, it is unlikely that
widespread goal incompatibility of win-lose variety within an organisation is frequent. A
win-lose situation exists when one group's goal attainment is at the direct expense or cost
of another group. Thus, goal incompatibility among groups is more often a mixed, rather
than a total win-lose variety. Thus, the degree to which two or more groups perceive goal
incompatibility will affect the degree of conflict.
2. Resource Sharing: The relations between two groups can be affected by the degree to
which the two groups draw from a common pool of resources, and the degree to which this
common pool of resources is adequate to meet the demands of both the groups. Thus,
conflict of this nature arises because of the discrepancy between aggregated demand and
available resources. Each party to the conflict has an interest in making the total resources
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as large as possible, but also in securing as large a share of them as possible. The conflicts
between management and labour union are quite common in all types of organisations.
Such conflicts take place on the quantum of wages, amenities, working conditions, and
other related matters. The basic reasons for such conflicts are the identification of
incompatible goals followed by the distribution patterns of available resources. The group
conflicts, particularly between management and labour, have proved to be quite
detrimental in Indian economy in recent years. Such conflicts are so important that some
official machinery' is provided for resolving these conflicts. For example, various
provisions have been made under the Industrial Disputes Act, 1947 for the reconciliation
of labour-management conflicts.
3. Task Relationship : Each group in the organisation is related with others as these are
created through organisation structure. Organisation structure is the result of organising
process through which departments are created for achieving organisational goals. Thus,
each group in some way or the other is interrelated. Depending upon the nature of such
functional relationship, various groups may be related in two ways: interdependence and
dependence. In some cases, groups may be independent, but this situation is quite
uncommon in organisation. Two groups are independent if both of them have the
discretion to withdraw from the relationship at will. Depending upon the type of task
relationship, groups may perceive conflict Interdependent task relations exist when two
group coordinate or collaborate with one another. Coordination exists when the subtasks
allocated to different groups need to be sequenced and agreed upon by the two groups.
Collaboration occurs when the two groups share joint responsibility or certain tasks. A
dependent task relationship exists between two groups if one group is dependent upon the
former for resources. A dependent task relationship may result into one group having the
ability to dictate or unilaterally determine the outcome of their interaction. The conflicts
arise in these relations if a group exceeds it's authority. For example, if staff departments
influence in the decision-making process well in excess of the advisory roles assigned to
them, the conditions for conflict exist.
4. Absorption of Uncertainty : Since organisations are open systems, they and their
elements-various groups-face uncertainty. Uncertainty is the gap between what is known
and what needs to be known to make correct decisions. In order to manage uncertainty,
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organisations assign certain groups or individuals to deal with it. Thus, a group may
absorb uncertainty of other groups. The group may make decisions or set premises for the
decision making for other groups, thereby avoiding the uncertainty. For example, the
accounting department may prescribe the rules for travelling expenses to be incurred by
the marketing department. Thus, the marketing department may be relieved of the
uncertainty of how the money should be spent on travelling. The conditions for conflicts
exist if uncertainty absorption by one group is not in accordance with the expectations of
other groups. For example, if marketing departments finds the rules framed by the
accounting department indequate or inefficient, the condition for conflict exists.
5. Attitudinal Sets : The sets of the attitudes that members of various groups hold towards
each other can be the cause and a consequence of the nature of their relationship. If the
group relations begin with the attitudes of distrust, competitiveness, secrecy, and closed
communications, there is a possibility of various factors of group relationship being
emphasised in a negative way, consequently, leading to conflicts. In the alternative case,
the group relationship may be cooperative characterised by mutual trust and respect,
greater acceptance of responsibihty for mutual problems, greater consideration for other's
point of view, greater willingness is avoid blaming each other, more open communication,
and so on. In such cases, cooperation instead of conflict, is visible.
C. Organisation Level Conflict
So far, we have discussed conflict at individual level-intraindividual and interpersonal,
group level conflit-intragroup and intergroup. All these types of conflicts take place within
the organisational setting. Now we shall focus our attention on organisation level per se,
but it must be remembered the conflicts at individual level or group level are all inherent
in organisation level conflict. Conflict at organisation level may be intraorganisational and
interorganisational. In the case of latter, the organisation under our study may become a
party to the conflict with another organisation perusing same goals or with a government
agency. However, the discussion of this type of conflict does not fall within the preview of
organisational conflicts. Therefore, we shall discuss only intraorganisation conflict.
Individuals in the organisations have many conflicting organisational cross pressures
operating on them. The following examples indicate the sources of potential conflict.
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"The boss wants more production; subordinates want more considerations. Customers
want faster deliveries; peers request schedule delay. Consultants suggest change;
subordinates resist change. The rule book provide a formula; the staff says it will not
work."
In a classical organisation, there may be four types of conflicts :
1. Hierarchical Conflict
2. Functional Conflict
3. Line and Staff Conflict
4. Formal and Informal Conflict.
1. Hierarchical Conflict: Hierarchical conflict is a form of interpersonal conflict. It occurs
between various levels of management. This conflict may be interpreted in two forms:
(a) Vertical conflict
(b) Horizontal conflict
Both, vertical conflict and horizontal conflict have been explained in this chapter under the
heading, "Interpersonal conflict."
2. Functional Conflict: Under functional organisation, various activities of the enterprise
are classified according to certain functions like production, marketing, finance, personnel
etc. A subordinate receives orders and instructions not from one superior but from several
functional specialists. This may result in occurence of conflict. Workers are supervised by
a number of bosses. This creates confusion in the organisation. If confusion is not
removed, it may result in conflict.
Jurisdiction conflicts often arise between the line and functional executives. Executives
with functional authority sometimes issue instructions directly to personnel throughout the
organisation. This happens because of failure to define exact nature of functional authority
of executives. Therefore, is is essential that functional authority of executives should be
clearly laid down. As far as possible, the accountability of subordinates should rest with
their line superiors not with the functional bosses. This will help reduce conflict.
3. Lime and Staff Conflict: Line and staff relationships is based on the assumption that
both support each other and work harmoniously to achieve organisational objectives.
However there are frequent instances of conflict between line and staff in the organisation.
This affects organisational effectiveness. Therefore, there is a need for analysing the
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sources of line staff conflict and, then, to take corrective actions to overcome the problem
of conflict. Causes of Line and Staff Conflict
The major cause of line and staff conflicts is the difference in viewpoints and perceptions
of line men and staffmen. This can be discussed from the following point of view :
(i) Viewpoint of Line Managers : Line managers feel that staff people work against them
in the following ways :
(a) Undermining of Line Authority: Line managers feel that staff people encroach upon
their authority. They give advice on the matters which come under their jurisdiction. This
is unnecessary interference with the working of their department.
(b) Dilution of Authority : There is feeling that staff people dilute line authority. In fact,
staff authority emerges out of dilution of line authority. Line managers may fear that their
responsibility will be reduced because of the addition of staff, thereby making their job
less challenging.
(c) Lack of Responsibility : The staff men are not directly accountable for any result; but
enjoy authority. This lack of responsibility makes them complacent and they do not care
about the ultimate objectives of the organisation.
(d) Stealing of Credit: The staff men have the tendency to take credit for decision which
prove successful and lay the blame on the line men in case the decision do not prove
successful.
(ii) Viewpoint of Staff Managers: Like line managers, staff people have their own
arguments and try to find faults with line managers which result into line-staff conflict.
The following dicussion reveals their viewpoints :
(a) Ignoring the Staff: Line managers generally do not make a proper use of the services
of the staff specialists. They often ignore the staff advice.
(b) Prestige Problem: Sometimes, staff advice is taken as a last resort as line managers
feel that taking of the advice is the loss of their prestige.
(c) Resistance to Innovations: Line managers generally resist new ideas as they consider
staff as a threat to their status and authority. They ignore ideas and programmes of staff.
(d) Lack of Adequate Authority : Staff managers generally, complaint that they don't
have enough authority. They feel that they should be given authority to put best decision
into action.
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Suggestions for Overcoming Line-Staff Conflict
1. The demarcation line between line and staff managers should be clear.
2. Only qualified and trained personnel should be engaged on staff positions.
3. Line managers must give due consideration to the advice of experts (staff managers).
4. Line and staff personnel should cooperate in implementing the policies and
programmes.
5. The staff managers and line managers should not make prestige issues.
6. The management must provide education and training to the line men and staff men.
4. Formal and Informal Conflict : Formal conflict occurs due to organisational policies,
programmes while informal conflict arises due to negative thinking, mistrust, egoism, and
other personal characteristics of individuals.
Conflict Management
The management within an organisation should function in such a way so as to maximise
the coordination of human resources and work systems and to minimise conflict. There
may be two approaches for managing organisational conflict: preventive measures and
curative measure. In the preventive measures, management tries to create an environment
where dysfunctional conflicts do not take place. Conflict is not primarily a result of
individual neurotic traits but arises under given conditions even when people involved are
well adjusted. Since situational variables induce conflict, it is possible to modify situations
so as to avoid conflict.
However, there may not be any specific standard or situation in which conflict will not
grow; there might be certain positive programme and actions that might reasonably lead to
avoidance of conflict in the organisation. The development of effective leadership,
participative decision making, effective two-way communication with proper emphasis on
upward communication, improvement in interpersonal relationship, provision for facilities
and opportunities to develop informal groups may be some of the ways to which
management should pay special attention. The curative measures include the resolution of
conflicts when they take place and become dysfunctional in the organisation. Such pre-
ventive and curative attempts are :
1. Establishing Common Goals
2. Changing Structural Arrangement
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3. Conflict Resolution.
These have been dissussed as under : 1. Establishing Common Goals
Most of the conflict assume that incompatible goals are a necessary antecedent for the
development of conflict. It means that the existence of superordinate goals-common goals-
will reduce the occurrence of dysfunctional conflicts. This is true particularly in the case
of conflict among groups and between individuals and organisation. Schein observes that
the fundamental problem of intergroup competition is the conflict of goals and the
breakdown of interaction between the groups. The breakdown, in turn, permits and
stimulates perceptual distortion and mutual negative stereotyping. The basic strategy of
reducing conflict, therefore, is to find goals upon which group can agree and to reestablish
valid communication between the groups. The tactics to employ in implementing this
strategy can include locating a common enemy, locating a superordinate goal. The mutual
dependence of groups can be brought through the superordinate goals because these are
the goals which are of high value to groups. Superordinate goals are those that take
precedence over the goals that may separate! the conflicting parties.
Sherif has conducted a series of experiments in intergroup conflict and common goals. He
concludes the finding as such: "what our limited experiments have shown is that the
possibilities for achieving harmony are greatly enhanced when groups are brought together
to work toward common end. Then favourable information about a disliked group is seen
in a new light, and leaders are in a position to take bolder steps towards cooperation. In
short, hostility gives way when groups pull together to achieve overriding goals which are
real and compelling to all concerned.
Goal differences can also be reduced through the adoption of appropriate incentive
systems. Many organisational reward systems often result into Svin-lose' mentality in
organisation because the reward systems focus attention on the individual rather than on
the group or organisation as a whole. It has been observed that goal differentiation can
alco be reduced through the use of incentive systems designed to reward activities that
benefit the larger system, as opposed to those that are primarily in the interest of subunits.
2. Changing Structural Arrangement
In some cases, the change in organisation structure or some part of it can reduce
dysfunctional conflicts. While there are some basic guidelines in this respect, Katz et al
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have given some more suggestions in this respect. They observe that conflicts can be
reduced by decentralisation, restructuring to remove obvious differential in status symbols
between hierarchical interest groups, development of cycles of work with opportunity to
employees to complete tasks, and sharing in organisational rewards. Such structural
variables, more specifically, can be used in the following ways.
1. Reduction in Interdependence : The basic reason in the intergroup conflict is
interdependence among them. As such, less such interdependence,
less will the amount of conflict among them. Thompson distinguished three types of
interdependence: pooled, sequential, and reciprocal. In the pooled interdependence, the
various divisions of the organisation and relatively self-contained and independent. In
sequental interdependence, there is high degree of interdependence betwen two or more
departments which might be using the product of others in a particular sequence. The units
are most interdependent when the interdependence is reciprocal, that is, the output of
various units becomes input for others. According to conflict model, the degree of conflict
is high in the case of latter two relationships, that is, more the interdependence, more the
chances for conflict. In organisations, such interdependence cannot altogether be avoided,
however, instead of separating units organisationally, they can be separated physically.
Physically separating the conflicting groups has the distinct advantage of preventing more
damage from being done and of preventing the creation of further rationale for fighting.
However, this tactic may require continuous surveillance to keep the parties separate,
especially if tempers are hot and energy levels high. The physical separation, however, is
not a permanent measure for managing conflict.
2. Reduction in Shared Resources: When two or more units arc required to share
resources, particularly scarce ones, the potential for conflict increases. The management of
conflict suggsts reducing such sharing. One technique for reducing such sharing is the
increase in such resources so that each unit is independent in using them. However, since
resources, are limited, it is not always possible to do so. As such, measures may be
adopted to their optimum allocation.
3. Exchange of Personnel: Personnel of the conflicting groups may be exchanged for a
specified period as a way to reducing and managing conflict. An exchange of people is
very similar to role reversal, which is aimed at greater understanding between people by
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forcing each to present and defend the others' position. In research study, it was found that
the exchange of people programme was effective at reducing conflicts and speeding
agreement. It was successful even though it was mandatory and involved the less
influential members of the organisations, and was of relatively short duration.
4. Creation of Special Integrators : To resolve conflict, organisation may make provisions
for the appointment of special integrators who may manage the interdependence of various
groups so that unresolved matters can be solved through them. Lawrence and Lorsch have
found that in certain situations, particularly when there are much differentiation between
departments in terms of time span, goals, and values, the use of special integrator
departments or individuals facilitates the management and resolution of interdepartmental
conflicts. For example, they found that integrators were more effective when they were
viewed as about intermediate in position between the conflicting departments, where they
were viewed as high in influence, and where they perceived that their rewards were tied to
the total performance of the two groups they were integrating.
5. Reference to Superior's Authority: Conflicts may be resolved through the hierarchy. If
resolution cannot be attained by two organisational members, they may take the issue to a
common superior who resolves the conflict by making a decision. Such a decision is
usually accepted by organisational members because of the recognised superior authority
of high-ranking individual. Such a decision may not necessarily bring agreement but it
will usually be accepted.
Conflict Resolution
The various measures, discussed above, undoubtedly help in reducing the occurrence of
conflicts in the organisation but they cannot guarantee the complete absence of conflict.
As such, whenever conflicts arise, these have to be resolved by some specific actions,
known as conflict-resolution actions. There maybe many such actions. For example,
March and Simon say that an organisation may react to conflict by problem solving,
persuasion, bargaining and politics. Ruble and Thomas have identified five types of
actions: competing, avoiding, accommodating, compromising, and collaborating.
Lawrence and Lorsch have identified three types of behaviours in conflict resolution;
confrontation, smoothing, and forcing. Some major actions in conflcit resolution take
place in the following ways :
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1. Problem Solving : The problem solving technique is considered to be the most positive
technique available for conflict resolution because it empahsises the attaining of the
common interests of both conflicting parties. In mutual problem-solving process, the
conflicting parties must come together with the responsibilities of solving the mutal
problem that faces rather than merely finding a way to accommodate their different
perspectives. Questions of who is right or wrong are generally avoided, but sharing and
communicating are required in order to find areas of common interest. This process causes
the doubts and misunderstandings that underline the conflict to become more obvious to
the parties so that they may be able to deal with them more effectively. Problem solving
technique can be applied effectively where conflict is based on misunderstanding of the
parties concerned. However, this technique is not effective when conflicts stem from value
system that differ and that are the one of the major sources of conflicts
2. Avoidance : Another method of overcoming conflict is its avoidance, that is, parties to
the conflict may either withdraw from the conflict or conceal the incompatibility.
Withdrawal may be observed when one party leaves the field of conflict so that other party
may win by being in sole possession of the goal in dispute. Alternatively, the goal may be
redefined through mutual withdrawal from the field and with the redefinition of other and
non-overlapping goal priorities. Concealing the incompatibility is another form of conflict
resolution when it is not possible for any party to withdraw from the conflict. In such a
case, the conflict may be eliminated by withholding the information from the parties in
conflict because of goal incompatibilities. However, these are the methods for avoiding
conflicts rather than solving the actual conflicts.
3. Smoothing: Smoothing can be defined as the process of playing down differences that
exist between individuals or groups while emphasising common interests. Differences are
suppressed and similarities are accentuated in smoothing process. Finding and
emphasising similarities between conflicting parties, while suppressing differences, can
eventually lead the parties to realise that they are not far apart as was first believed. With
shared viewpoints on an issue, the ability to work together towards a commonly held goal
must be facilitated. This again, however, is not a long-term solution for the conflicts.
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4. Compromise : Compromise is a well-accepted technique for resolving conflict,
yielding neither side a definite loser nor a distinct winner. Included here are external or
third party interventions, plus internal compromise between
conflicting parties through both total-group and representative negotiation and voting.
Such a compromise may be achieved either through the intervention of third party, the
process is commonly known as mediation, or without the intervention of the external
parties, the method known as bargaining. In both such cases, the conflicting parties arrive
at some compromise which is mostly mutal give-and-take situation. Compromise may be
effectively used when the goal object may be divided up in some way among the
competing parties. In cases where this is not possible, one group may yield to the other
something of value in exchange for a concession of value. Both parties then give up
something. In a compromise situation, the outcome depends primarily on the relative
strength of the parties. In situations in which one of the parties is much stronger than the
other, little actual compromising may occur, and one side dictates the other. This is quite
effective method of conflict resolution between management and workers.
5. Confrontation: The various actions enumerated above may not bring resolution of
conflict between parties if they take very rigid stand. In such a case, the parties are left to
confrontation to settle the conflict themselves. This strategy may result into winlose
situation. The parties concerned may settle their score by applying their strength against
each other. Confrontation may be used for organisational development and increasing
organisation's effectiveness. Lawrence and Lorsch have observed that high performing
organisations use confrontation techniques far more frequently than do the lower-
performing organisation. However, confrontation may not be treated as ideal technique for
most of the organisations specially if they are not equipped with taking the advantages of
confrontation. It can be desirable only if the organisation is working on competitive spirit
basis. Since this is the part of organisational climate and if organisational climate is not be
developed on this basis, it is not desirable to go for confrontation.
What type of conflict, resolution actions would be taken depends on a variety of factors
like nature of the conflict, nature of the parties involved in the conflict, and behavioural
strategies adopted in conflict resolution. In this context, Wall and Callister have presented
some interesting conclusions.
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1. Males tend to use the forcing approach as their dominant styles; females use forcing less
and often rely on a range of other tactics.
2. Managers tend to use forcing approach; employees prefer avoiding, smoothing, or
compromising.
3. American managers tend to be competitive; Japanese managers, prefer a cooperative
approach.
4. Each party tries to mimic the style of the other-forcing induces forcing; accommodating
induces accommodating, and so on.
5. People tend to use different resolution styles for different issues; confrontation is used
in performance appraisals, compromise is used in issue involving habits and mannerisms.
Another issue which is important in conflict resolution is the outcome of conflict
resolution. This is important in the sense that a new conflict between the parties may
depend on the conflict aftermath. Conflict resolution outcome is presented in the following
figure :
Out of the four possible outcomes of conflict resolution, win-win situation is ideal as both
the parties feel satisfied. In lose-lose outcome, both the parties feel cheated. In other two
alternatives, only one party wins at the cost of the other, and the conflict becomes a zero-
sum game. Such a situation generates more conflicts in future.
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15 MANAGEMENT OF CHANGE [ORGANISATIONAL CHANGE]
Introduction
Changes are constantly taking place in the environment of organisations. Change simply
refers to the alteration of status quo. Even in most stable organisations, change is
inevitable just to keep the level of given stability. The economic and social environment is
so dynamic that without the change, even the most successful organisations will be left
behind and, unable to survive in the changed environment. Therefore, management must
continuously monitor the outside environment and try to be innovative and creative. It has
been established in the studies that successful organisations are making necessary changes
in their structural design or policies.
Meaning and Concept of Change
Unlike other concept in organizational behaviour, not many definitions are available to
define the term "change". In very simple words, we can say that change mean the
alteration of status quo are making things different.
The term change refers to any alteration which occurs in the overall work environment of
an organisation."
To quote another definition "When an organisational system is disturbed by some internal
or external force, change frequently occurs. Change, as a process is simply modification of
the structure or process of a system. It may be good or bad, the concept is descriptive
only."
From the above definitions, we can conclude that change the following characteristics.
1. Change results from the pressure of both internal and external forces in the organisation.
It disturbs the existing equilibrium or status quo in the organisation.
2. Change in any part of the organisation affects the whole of the organisation.
3. Change will affect the various parts of the organisation in varying rates of speed and
degrees of significance.
4. Changes may affect people, structure technology and other elements of the organisation.
5. Change may be reactive or proactive. When change is brought about due to the pressure
of external forces, it is called reactive change. Proactive change is initiated by the
management on its own to increase organisational effectiveness.
Nature of Organisational Change
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The term change refers to an alteration in a system whether physical, biological, or social.
Thus, organisational change is the alteration of work environment in organisation. It
implies a new equilibrium between different component of the organisation-technology,
structural arrangement, job design, and people. Thus, organisational change may have
following features :
1. When change occurs in any part of the organisation, it disturbs the old equilibrium
necessitating the development of a new equilibrium. The type of new equilibrium depends
on the degree of change and its impact on the organisation.
2. Any change may affect the whole organisation; some parts of the organisation maybe
affected more, others less; some parts are affected directly, others indirectly.
3. Organisational change is a continuous process. However, some changes which are of
minor type, may be absorbed by the existing equilibrium; others, which are major ones
may require special change efforts.
Newstrom and Davis have explained the impact of a change in any part of the organisation
on the total organisation. They have illustrated it by comparing an organisation to an air-
filled balloon. When a finger (which represents external force) is forced against a point on
the balloon (which represents the organisation), the contour of the balloon visibly changes;
it becomes indented at the point of contact. However, if we look minutely, we find that the
shape of the entire balloon has changed; it has stretched slightly. Thus, they have
concluded that the whole organisation tends to be affected by change in any part of it.
However, the change in organisation does not occur purely on mechanical relationship.
While managers as change agents want to bring changes in the organisation, employees
want to maintain a status quo. Though these phenomena will be taken later, what is
important at this points is that a change in any part affects the entire organisation and
subsequent changes are required in other parts.
Forces for Change
There are a number of factors both internal and external which affect organisational
functioning. Any change in these factors necessitates changes in an organisation. The
more important factors are as follows :
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A. External Forces
External environment affects the organisation both directly and indirectly. The
organisation do not have any control over the variables in such an environment.
Accordingly, the organisation cannot change the environment but must change themselves
to align with the environment. A few of these factors are:
1. Technology : Technology is the major external force which calls for change. The
adoption of new technology such as computers, telecommunication systems and flexible
manufacturing operations have profound impact on the organisations that adopt them.
The substitution of computer control for direct supervision, is resulting in wider spans of
control for managers and flatter organisations. Sophisticated information technology is
also making organisations more responsive : Both the organisations and their employees
will have to become more adaptable. Many jobs will be reshaped. Individuals who do
routine non-specialised and narrow jobs will be replaced by workers who can perform
multiple tasks and actively participate in decision making. Managements will have to
increase their investment in training and education of the employees because employees'
skills are becoming obsolete more quickly these days. Japanese firms have progressed
rapidly because they are very quick in adopting new technological innovations.
2. Marketing Conditions: Markeging conditions are no more static. They are in the
process of rapid change as the needs, desires and expectations of the customers change
rapidly and frequently. Moreover, there is tough competition in the market as the market is
flooded with the new products and innovation everyday. New methods of advertising are
being used to influence the customers. Today the concept of consumerism has gained
considerable importance and thus, the consumers are treated as the kings.
Moreover, the competition today has taken some significant new twists. Most markets will
soon be international because of decreasing transporation and communication costs and
the increasing export orientation of business. The global economy will make sure that
competitors come across the ocean as well as from across the native towns. Successful
organisations will be those who can change in response to the competition. Organisations
that do not get ready for these new facets of competition in the next decade may not exist
for long.
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3. Social Changes : Social and cultural environment also suggest some changes that the
organisations have to adjust for. These are a lot of social changes due to spread of
education, knowledge and a lot of government efforts. Social equally e.g. equal
opportunities to women, equal pay for equal work, has posed new challenges for the
management. The management has to follow certain social norms in shaping its
employment, marketing and other policies.
4. Political Forces: Political environment within and outside the country has an important
impact on business especially of the transnational corporations. The interference of the
government in business has increased tremendously in most of the countries. The
corporate sector is regulated by a lot of laws and regulations. The organisations do not
have any control over the political and legal forces, but they have to adapt themselves to
meet the pressure of these forces.
In our country, the new economic policy has liberalised the economy to a large extent.
Many of the regulatory laws have been amended to reduce the interference of the
Government in business.
An organisation is also affected by the world politics. Some of the changes in the world
politics which have affected business all over the world are : e.g., the reunification of
Germany, Iraq's invasion of Kuwait and the break of Soviet Union.
B. Internal Forces
Internal forces are too many and it is very difficult to list them comprehensively.
However, major internal causes are explained as follows :
1. Nature of the Work Force: The nature of work force has changed over a period of
time. Different work value have been expressed by different generations. Workers who are
in the age group of 50 plus value loyalty to their employers. Workers in their mid thirties
to mid forties are loyal to themselves only. The youngest generation of workers is loyal to
their careers.
The profile of the workforce is also changing fast. The new generation of workers have
better educational qualifications, they place greater emphasis on human values and
question authority of managers. Their behaviour has also become very complex and
leading them towards organisational goals is a challenge for the mangers. The employee
turnover is also very high which again puts strain on the management. The work force is
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changing, with a rapid increase in the percentage of women employees, which in turn
means, more dual career couples. Organisations have to modify transfer and promotion
policies as well as make child care and elder care available, in order to respond to needs of
the working couples.
2. Change in Managerial Personnel: Change in managerial personnel is another force
which brings about change in organisation. Old managers are replaced by new managers
which is necessitated because of promotion, retirement, transfer or dismissal. Each
manager brings his own ideas and way of working in the organisation. The informal
relationship changes because of changes in managerial personnel. Sometimes, even though
there is no change in personnel, but their attitudes change. As a result, the organisation has
to change accordingly.
Changes in the organisation are more fast when top executives change. Change in top
executives will lead to important changes in the organisation in terms of organisation
design, allocation of work to individual, delegation of authority, installation of controls
etc. All these changes will be necessitated because every top executive will have his own
style and he will like to use his own ideas and philosophies.
3. Deficiencies in Existing Management Structure : Sometimes changes are necessary
because of some deficiencies in the existing organisational structure, arrangement and
processes. These deficiencies may be in the form of unmanageable span of management,
larger number of managerial levels, lack of coordination among various departments,
obstacles in communication, multiplicity of committees, lack of uniformity in policy
decisions, lack of cooperation between line and staff and so on. However, the need for
change in such cases goes unrecognised until some major crisis occurs.
4. To Avoid Developing Inertia: In many cases, organisational changes take place just to
avoid developing inertia or inflexibility. Conscious managers take into account this view
that organisation should be dynamic because any single method is not the best tool of
management every time. Thus, changes are incorporated so that the personnel develop
liking for change and there is no unnecessary resistance when major changes in the
organisation are brought about.
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1. Individual Level Change
Individual level changes may take place due to changes in job assignment, transfer of an
employee to a different location or the changes in the maturity level of a person which
occurs over a passage of time. The general opinion is that change at the individual level
will not have significant implications for the organisation. But this is not correct because
individual level changes will have impact on the group which in turn will influence the
whole organisation. Therefore, a manager should never treat the employees in isolation but
he must understand that the individual level change will have repercussions beyond the
individual.
2. Group Level Change
Management must consider group factors while implementing any change, because most
of the organisational changes have their major effects at the group level. The groups in the
organisation can be formal group or informal groups. Formal group can always resist
change for example, the trade unions can very strongly resist the changes proposed by the
management. Informal groups can pose a major barrier to change because of the inherent
strength they possess. Changes at the group level can affect the work flows, job design,
social organisation, influence and status systems and communication patterns.
The groups, particularly the informal groups have a lot of influence on the individual
members of the group. As such by effectively implementing change at the group level,
resistance at the individual level can be frequently overcome.
3. Organisation Level Change
The organisational level change involves major programmes which affect both the
individuals and the groups. Decisions regarding such changes are made by the senior
management. These changes occur over long periods of time and require considerable
planning for implementation. A few different types of organisation level changes are :
1. Strategic Change : Strategic change is the change in the very basic objectives or
missions of the organisation. A single objective may have to be changed to multiple
objectives. For example, a lot of indian companies are being modified to accommodate
various aspect of global culture brought in by the multinational or transnational
corporations.
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2. Structural Change : Organisational structure is the pattern of relationships among
various positions and among various position holders. Structural change involves changing
the internal structure of the organisation. The change may be in the whole set of
relationships, work assignment and authority structure. Change in organisation structure is
required because old relationships and interactions no longer remain valid and useful in
the changed circumstances.
3. Process Oriented Change : These changes relate to the recent technological
developments, information processing and automation. This will involve replacing or
retraining personnel, heavy capital equipment investment, and operational changes. All
this will affect the organisational culture and as a result the behaviour pattern of the
individuals.
4. People Oriented Change: People oriented changes are directed towards performance
improvement, group cohesion, dedication and loyalty to the organisation as well as
developing a sense of self actualisation amongst members. This can be made possible by
closer interaction with employees and-by special behavioural training and modification
sessions.
To conclude, we can say that changes at any level affect the other levels. The strength of
the effect will depend on the level or source of change. Planned Change
A planned change is a change planned by the organisation, it does not happen by itself. It
is affected by the organisation with the purpose of achieving something that might
otherwise be unattainable or attainable with great difficulty. Through planned change, an
organisation can achieve its goals rapidly. The basic reasons for planned change are.
To improve the means for satisfying economic needs of members
To increase profitability
To promote human work for human beings.
To contribute to individual satisfaction and social well being.
In introducing planned change, the basic problem before management is to handle it in
such a way that there would be necessary adjustment in various forces. For this purpose,
the manager who has to act as the change agent, has to go through a particular process.
The planned change process may comprise, basically of the following three steps :
1. Planning for change
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2. Assessing change forces
3. Implementing the change 1. Planning for Change
The first step in the process of change is to identify the need for change and the area of
changes as to whether it is a strategic change, process oriented change or employee
oriented change. This need for change can be identified either through internal factors or
through external factors. Once this need is identified, the following general steps can be
taken:
(i) Develop New Goals and Objectives: The manager must identify as to what new
outcomes they wish to achieve. This may be a modification of previous goals due to
changed internal and external environment or it may be a new set of goals and objectives.
(ii) Select an Agent of Change : The next step, is that the management must decide as to
who will initiate and oversee this change. One of the existing managers may be assigned
this duty or even sometimes specialists and consultants can be brought in from outside to
suggest the various methods to bring in the change and monitor the change process.
(iii) Diagnose the Problem : The perosn who is appointed as the agent of change will then
gather all relevant data regarding the area or the problem where the change is needed. This
data should be critically analysed to pinpoint the key issues. Then the solutions can be
focussed on those key issues.
(iv) Select Methodology : The next important step is to select a methodology for change
which would be commonly acceptable and correct. As the human tendency is to resist the
change, employee's emotions must be taken into consideration when devising such
methodology.
(v) Develop a Plan : After devising the methodology, the next step will be to put together a
plan as to what is to be done. For example, if the management wants to change the
promotion policy, it must decide as to what type of employees will be affected by it,
whether to change the policy for all the departments at once or to try it on a few selected
departments first.
(vi) Strategy for Implementation of the Plan : In this stage, the management must decide
on the Svhen', "where' and 'how' of the plan. This includes the right time of putting the
plan to work, how the plan will be communicated to the employees in order to have the
least resistance and how the implementation will be monitored.
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2. Assessing Change Forces
The planned change does not come automatically, rather there are many forces in
individuals, groups and organisation which resist such change. The change process will
never be successful unless the cooperation of employees is ensured. Therefore, the
management will have to create an environment in which change will be amicably
accepted by people. If the management can overcome the resistance, the change process
will succeed.
In a group process, there are always some forces who favour the change and some forces
who are against the change. Thus, an equilibrium is maintained. Kurtlewin calls it the
"field of forces". Lewin assumes that in every situation there are both driving and
restraining forces which influence any change that may occur.
Driving Forces are those forces which affect a situation by pushing in a particular
direction. These forces tend to initiate the change and keep it going.
Restraining Forces act to restrain or decrease the driving forces.
Equilibrium is reached when the sum of the driving forces equals the sum of restraining
forces as shown in the following figure :
There may be three types of situations.as both driving and restraining forces are operating:
(i) If the driving forces far out weigh the restraining forces, management can push driving
forces and overpower restraining forces.
(ii) If restraining forces are stronger than driving forces, management either gives up the
change in programme or it can pursue it by concentrating on driving forces and changing
restraining forces into driving ones or by immobilising them.
(iii) If driving and restraining forces are fairly equal, management can push up diriving
forces and at the same time can convert or immobilise restraining forces.
Thus, to make the people accept the changes, the management must push driving forces
and convert or immobilise the restraining forces.
3. Implementing Change : Once the management is able to establish favourable conditions
and the right timing and right channels of communication have been established, the plan
will be put into action. It may be in the form of simple announcement or it may require
briefing sessions or in house seminars so as to gain acceptance of all the members and
specially those who are going to he directly affected by the change.
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After the plan has been implemented there should be evaluation of the plan which
comprises of comparing actual results with the objectives. Feedback will confirm if these
goals are being met so that if there is any deviation between the goals and actual
performance, corrective measures can be taken. Change Process
Any organisational change whether introduced through a new structural design or new
technology or new training programme, basically attempts to make employees change
their behaviour. It is , because unless the behavioural pattern of the members change the
change will have a little impact on the effectiveness of the organisation. Behavioural
changes are not expected to be brought about overnight. This is the most difficult and a
marathon exercise. A commonly accepted model for bringing about changes in people was
suggested by Kurt Lewin in terms of three phase process-unfreezing, changing and
refreezing. Lewin's model provide a useful vehicle for understanding change process in the
organisation.
1. Unfreezing : Unfreezing means that old ideas and attitudes are set aside to give place to
new ideas. It refers to making people aware that the present behaviour is inappropriate,
irrelevant, inadequate and hence unsuitable for changing demands of the present situation.
The management creates an atmosphere wherein the employees have self motivation for
innovative discourses and practices in the organisation.
According to Edgar Schien the following elements are necessary during this unfreezing
phase:
(i) The physical removal of the individuals,being changed.from their accustomed routines,
sources of information and social relationships.
(ii) the undermining and destruction of social support.
(iii) Demeaning and humiliating experience to help individuals being changed, to see their
old attitudes or behaviour as unworthy and to consider to be motivated for change.
(iv) The consistent linking of reward with willingness to change and of punishment with
unwillingness to change.
Unfreezing, thus, involves discarding the orthodox and conventional methods and
introducing dynamic behaviour, most appropriate to the situation. By discarding the
primitive way of doing things. People are made to accept new alternatives.
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2. Changing: Unlike unfreezing changing is not uprooting of the old ideas, rather the old
ideas are gradually replaced by the new ideas and practices. It is the phase where new
learning occurs. In order to change, it is not enough to sense that the current behaviour is
inadequate. The necessary requirement is that various alternatives of behaviour must be
made availalble in order to fill the vacuum created by unfreezing phase. During the phase
of changing, individuals learn to behave in new ways, the individuals are provided with
alternatives out of which to choose the best one. Kelman explains this changing phase in
terms of the following elements :
(i) Compliance: Compliance occurs when individuals are forced to change either by
rewards or by punishment.
(ii) Internalisation : Internalisation occurs when individuals are forced to encounter a
situation and calls for behaviour change.
(iii) Indentification : Indentification occurs when individuals recognise one among various
models provided in the environment that is most suitable to their personality.
3. Refreezing: Refreezing is on the job practice. The old ideas are totally discarded and
new ideas are fully accepted. It is reinforced attitudes, skills and knowledge. During this
phase individuals internalise the new beliefs, feelings and behaviour learned in the
changing phase. He practices and experiments with the new method of behaviour and sees
that it effectively blends with his other behavioural attitudes. It is very important for the
manager concerned to visualise that the new behaviour is not extinguished soon.
Ferster and Skinner have in this connection introduced the main reinforcement schedule
namely-continuous and intermittent reinforcements. Under the continuous reinforcement,
individuals learn the new behaviour within no time. But one major risk of this
reinforcement is that the new behaviour ceases very soon. Intermittent reinforcement on
the other hand, consumes a long span of time but it has the greatest advantage of ensuring
a long lasting change.
Resistance to Change
In the management of change effectively, the managers face the problem of resistance to
change. People tend to resist many types of changes because of need for development of
new habits or some sacrifices are required. When change is minor and within the scope of
correcting programme, adjustment is fairly routine, but when a change is major or unusual,
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more serious upsets may occur. This leads to general proposition that people and their
social systems will often resist change in organisations. In fact, fear of change can be as
significantly disrupting as change itself, because it produces identical symptoms. Reasons
for Resistance to Change
People tend to evaluate the effect of change individually but they express it through group
in collective form. Therefore, the reasons underlying resistance to change may be
identified at these two levels. 1. Individual Resistance
There are many factors operating at the individual level which are responsible for
resistance. Degree of force in resistance depends on how people feel about change. These
feelings may be based either on reality or there may be emotional feelings towards the
change. These feelings, either real or emotional, may be seen in the context of three types
of factors-economic, psychological, and social.
A. Economic Factors : People get attached to the organisation for satisfying their
physiological needs and economic needs, job security, etc. these precede over other needs.
People may perceive that they will be adversely affected by the change in terms of their
need satisfaction in the following ways.
1. Skill obsolescence—A change is gnerally meant for better methods of working which
may involve new techniques, technology, etc. Whenever people sense that new machinery
(change) poses a threat of replacing or degrading them, they simply resist such a change.
When computer was introduced in the business sector of India, it attracted lot of resistance
because of this reason.
2. Fear of Economic Loss—A change may create fear of economic loss in the sense that it
may affect economic compensation adversely, reduce job options, and turn into
technological unemployment. This feeling is created because people feel that those who
can match the new requirements will be better off than those who cannot match.
3. Reduced Opportunity for Incentive—Employees are generally offered incentives
linked to their output in the form of incentive schemes, bonus, etc. All these are well
established in the old system. Whenever there is change, people may feel that in the new
system, they will have lower opportunity to earn incentives and bonus as the new system
requires additional skills.
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B. Psychological Factors : Psychological factors are based on people's emotions,
sentiments, and attitude towards change. These are qualitative and therefore, may be
logical from people's point of view but may be illogical from the change agent's point of
view. Major psychological factors responsible for resistance are: ego defensiveness, status
quo, lack of trust in change agent, low tolerance for change, and fear of unknown.
1. Ego Defensiveness—A change may affect the ego of the people affected by the change
and in order to defend their ego, people resist change. A change in itself suggests that
everything is not right at a particular level. Thus, the change may be perceived as an
instrument for exposing the weakness of the people.
2. Status Quo—People want status quo, that is, they do not want any disturbance in their
existing equilibrium of life and work pattern. The change initiated by the organisation
disturbs such an equilibrium and people have to obtain another equilibrium which is a
painful exercise. Therefore, everyone tries to avoid it.
3. Low Tolerance for Change—In the context of maintaining status quo, people may
differ. Some people have very low level of tolerance for change and ambiguity as
compared to others. Therefore, these people resist any new idea.
4. Lack of Trust in Change Agent—The effect of change is perceived in the context of
change agent, that is, the person who initiates change. If people have low degree of
confidence in the change agent, they show resistance to change efforts. This is the reason
why labour union resists change initiated by management because of the feeling that
labour and management are two different interest groups in the organisation.
5. Fear of Unknown—A change may be perceived as entering into unchartered area
which is unknown. The change will bring results in future which is always not certain.
This lack of certainty creates anxiety and stress in the minds of people and they want to
avoid it. The lack of adequate information about the likely impact of change further
complicates the problems.
C. Social Factors: People derive need satisfaction, particularly of social needs, through
their mutual compatible interaction. They form their own social groups at the workplace
for the satisfaction of their social needs. To the extent satisfaction of these needs is
affected by a change, people resist it. The major factors causing resistance to change are—
desire to retain existing social interaction and feeling of outside interference.
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1. Desire to Maintain Existing Social Interaction—People desire to maintain existing
social interaction since it is a satisfying one. When there is any change, their existing
social interaction is likely to be changed which people do not want. Therefore, they resist
change.
2. Feeling ofOuside Interference—A change brought by the change agent is considered to
be an interference in the working of people. The phenomenon is heightened if the change
agent belongs to another social class, e.g., change initiated by managers affecting workers.
The latter may feel that managers try to make workers an instrument for higher
productivity but the outcome of the productivity will be retained by them.
2. Group Resistance
We have seen earlier that people may perceive the likely impact of a change individually
but they express it in the form of group response. Therefore, their evaluation is subject to
the modification by group behaviour. Thus, group itself becomes a source of resistance.
The effect of group as a source of resistance may be analysed in terms of nature of group
dynamics and vested interests.
A. Nature of Group Dynamics : Group dynamics refers to the forces which operate in a
group determining behaviour of its members. These forces determine how effective a
group would be in accepting or rejecting a change. In this context, following nature of
group dynamic is important:
1. If both change agent and people who are target for change belong to the same group, the
role of group is more effective.
2. If group is highly cohesive and members have developed strong belongingness to the
group, it has more say in acceptance or rejection of change.
3. The degree of group attractiveness to its members affects how effective the group is in
change response.
4. Group can exert more pressure on those factors of the members which are responsible
for group being attractive to the members. Normally, attitudes, values, and behaviour are
more common factors determining the group attractiveness.
5. The degree of prestige of a group, as interpreted by the members, determines the degree
of influence the group has over the members and response to change.
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6. Any attempt to change the group norms by any outside force is resisted specially when
there is high degree of adherence to group norms by the members.
B. Vested Interest: In a group, some members become more influential than others. These
persons may be group leaders appointed formally in a formal group or accepted by the
people as leader in an informal group. These persons may use the group as a means for
satisfying their own needs. Thus, these vested interests try to influence group behaviour in
the form of a uniform response to a change not based on the merit of the change but based
on their personal interests. This phenomenon is more in the case of labour unions.
3. Organisational Resistance to Change
Not only individuals and groups within an organisation resist change, even the
organisation itself resists many changes because of certain reasons. Many organisations
are designed to be innovation-resisting. Many powerful organisations in the past have
failed to change as they have developed into routines. For example, Sumantra Ghoshal, a
professor of strategic leadership and considered to be a management guru, has commented
as follows :
"Nothing fails like success; nothing fails as spectacularly as spectacular success. Whether
it is IBM, Digital Equipment Corporation. Caterpillar, Xerox, or nearer home—Tl Cycles,
all these companies have been victims of corporate disease. It is called the Failure of
success. Strategies, values, resources, and processess of the most successful companies
have in the past ossified into cliches, dogmas, millstones, and routines."
This statement suggests that organisational tend to stabilise at a particular level and if the
efforts to change are not brought, these organisation start falling. The major reasons for
organisational failure to change are counting on past successes, stability of system,
resource limitations, sunk cost, and inter-organisational agreement. Some of these reasons
are basic while others are byproduct of those reasons. For example, first two reasons are
basic and others are by-products of the first two.
1. Counting Past Successes: A major problem before the organisations which have past
success stories is, how to face challenges of the changing environment. Since these
organisations have achieved success by following a particular set of management
practices, they become too rigid to change and they hide their failure to change in the
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guise of past successes. This is the reason why many old industrial houses are languishing
far behind and their places are being taken away by newer organisations.
2. Stability of System : The organisation may design a system through which it may derive
many benefits. The system is stablished and any change may be perceived a threat by the
organisation itself. For example, a bureaucratic organisation has certain fixed rules,
prescribes rigid authority relationship, and institutes reward and punishment system. All
these work in some circumstances. If the change is required in these aspects, the
organisation may not bring it easily because it is accustomed to a particular system.
3. Resource Limitations: No doubt, the organisation has to adapt to its environment but the
adaptation has its own cost. If the organisation is not fully equipped for meeting such
demands, it may not be possible for the organisation to bring necessary change. For
example, if new technology is adopted, it will require resources to procure machines,
building, training for its personnel and commensurate expenses on other items also.
4. Sunk Cost: Most of the organisational have sunk cost involved in various assets. Once
the assets are acquired, these can be used for a specific period. Now, if the change is
required, what will happen to these assets? Naturally, the organisation will like to make a
comparison between the outcomes of changed programme and continuing with the old
programme in the Ught of this sunk cost. Sunk cost cannot be only in terms of various
physical things; this can be in the form of people also. If an individual is not making
commensurate contribution, it is not necessary that his services are done away with. In
such a case, organisation has to pay for his services though these may not be as useful.
5. Inter-organisational Agreement: The organisation interacts with its environment. In
this interaction process, it may enter into an agreement with other organisations over
certain aspects of working. Thus, if any change is to be incorporated, the organisation has
to take into account the wishes of other organisations too. It is not necessary that other
organisations also agree with the change proposal. For example, the organisation may
enter into an agreement with labour union for not bringing technological change. Thus, the
organisation is bound by this agreement and technological change is not possible.
Similarly, such cases arise when the organisation has such obligations.
It does not, however, mean that the organisation will always resist change. It depends
more on the style of top management. If it is risk-taking, forward-looking, innovative, and
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has zeal for progress, the organisation may take change programmes more frequently. Let
us see what someone has said long back.
"There are three types of companies : those which make things happen; those which watch
things happen; those who wonder what happened."
This is a true reflection of difference between change-initiating companies and change-
resisting companies. Based on the agressiveness which various companies show in
changing themselves, Miles and Snow have classified them into four categories:
defenders, prospectors, analysers, and reactors.
1. Defenders—These are the firms which penetrate in a narrow market/ product domain
and guard it. They emphasise more on cost-effectiveness, centralised control, intensive
planning, and put less emphasis on environmental scanning.
2. Prospectors—These firms use broad planning approaches, broad environmental
scanning, decentralised controls, and reserve some resources unutilised for future use.
They go on searching new products/markets on regular basis.
3. Analysers—Above two are the extreme cases of choice-making modes. In between lie
analysers and reactors, analysers act sometimes as defenders and sometimes as
prospectors.
4. Reactors—These organisations realise that their specific environment is changing but
fail to relate themselves with the changing environment. Therefore, they have to behave in
one of the above three ways otherwise they can not survive.
How to Overcome Resistance to Change ?
One of the basic problems in managing is to over come people's resistance to change
successfully. Unless this problem is overcome properly, the effect of the change may not
be as functional as envisaged by the management. In many cases, even the impact of a
change may be dysfunctional if change is imposed upon the people by the use of formal
authority. Therefore, the role of formal authority in implementing a change may not be
effective at all the times; it can be made effective by managing resistance effectively. For
example, Lacovini observes that "the secret to real success is effective management of the
emotional vulnerability that accompanies organisational change."
Problem of overcoming resistance to change can be handled at two levels : at the level of
individual and at the level of group, that is, through group dynamics. Both these attempts
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are complementary and sometimes these efforts may be overlapping because every
individual is a member of some of the groups, both at the formal and informal levels.
A. Efforts at Individual Level
A change is likely to affect some people in some ways. It may affect only a few while
others may not be affected. When the resistance comes from the people at individual level,
the problems can be solved at the same level. For this purpose, the following efforts can be
made :
1. Involvement: Involvement is a process through which those who are affected by the
change are brought to understand the change. However, this is not a one-time action,
rather this should be looked upon as a dialogue which continues over a period of time. It
implies explanation and then discussion of the proposed change. It includes finding out
from the members how they interpret the proposed change and what they think about it.
The fundamental idea in this process is to encourage the people to say something about
any aspect of the change. People always have some ideas and opinions about what is going
on in the world and more specially if it touches them personally. Getting opinions out in
the open, so that they are looked at and evaluated, is an important trust-building task. As
this process goes on, the level of resistance to change tends to decrease, understanding of
change increases, and personal involvement in the change increases.
2. Obtaining Commitment: Commitment is an agreement to take an active part in the
actual mechanics of the change. Commitment to take part in the change programme can be
obtained in private from each individual. However, sometimes, getting a person to commit
himself in private to a change programme may yield fewer results than if he voluntarily
and publicly gives his commitment to an idea of change. The decision to commit oneself is
a dynamic process. It grows slowly along with relationship.
3. Leadership : The role of leadership in getting acceptance for a chance is very important
as a capable leader reinforces a climate of psychological support for change. A manager as
weak leader presents change on the basis of the impersonal requirements of the situation,
but a transformational leader can use personal reasons for change without arousing
resistance. An effective leader tries to time a change to fit the psychological needs of his
followers. Thus, most of the times, either the subordinates do not resist or if they resist, the
leader tries to overcome this resistance by leadership process.
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4. Training and Psychological Counselling : The management can change the basic values
of the people by training and psychological counselling. People should be educated to
become familiar with change, its process, and working. They must be taught new skills,
helped to change attitude, and indoctrinated in new relationships. Such educational process
can be aided by training classes, meetings, and conferences. However, to become
effective, education must be part of the manager's everyday activity on the job. This helps
in creating receptive environment in the organisation.
B. Efforts at Group Level
Although agreement to a change can be obtained individually, it is more meaningful if it is
done through group. Usually, more than one person is involved in the change. Though
each person interprets the change individually, often, he expresses it through a group.
Thus, instead of solving the problem at the individual level, it is desirable at the group
level to get better acceptability of change. Group dynamics offers some basic help in this
regard. For using group as a means of overcoming resistance to change, its basic nature, as
discussed earlier, must be understood so that its effective use can be made. Based on these
characteristics of group as a means of change, the managers can form strategies for
overcoming resistance in the following manner :
1. Group Contact: Any effort to change is likely to succeed if the group accepts that
change. For this purpose, the group itself should be the point of contact. The group contact
offers some specific advantages : (i) Through group, one can communicate with more
people per unit of time, (ii) In group, there may be some person who may support the idea
for change even if it is resisted by others if the change agent belongs to the same group,
(iii) Group can get at the basic problem very rapidly as compared to the single individual.
The same is true for problem solving.
Through the group contact, many things about change can be made clear-such aspects as
the reasons for change, benefits of change, and how the benefits of the change will be
shared between organisation and its members. For this purpose, meaningful and
continuous dialogue is necessary. Free flow of information helps people to understand the
real picture of the change and many misunderstangings may be avoided. Even if only
some of the members are affected by the change, taking whole of the group into
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confidence helps in maintaining a cooperative attitude. Research studies also support this
aspect.
2. Participation : Participation helps to give people involved in the organisational change a
feeling of importance. It makes people feel that the organisation needs their opinion and
ideas and is unwilling to go ahead without taking them into account. Those people who are
directly affected by the change should be given opportunity to participate in that change
before the final decisions are reached. However, mere participation may not help. The
organisation must regard the participation as meaningful and share the results of the
change with its members. This is more important in the case of workers who themselves
treat a separate group and do not identify with the management It would be prudent for
management to take labour representative into confidence before implementing any
change. They must be made a party to the change rather than an agent for resistance to
change.
3. Group Dynamics Training for Change : Group dynamics also helps in providing various
programmes for accepting and implementing changes. The laboratory method provides a
setting where group processes can be studied intensively. It purports to train group
members to recognise which processes are suitable to the task, what the results are, and
how members contribute. Such training techniques include role playing, psychodrama, and
sensitivity or T-group training. Such training techniques provide understanding of
behaviour, thereby the people can build up the climate based on mutual trust and
understanding so essential for bringing organisational change successfully. Change Agents
Any planned change needs change agents. These are the persons who initiate change in the
organisation. Behavioural scientists have taken frequently somewhat divergent position on
the question of who should initiate an organisational change, what type of person this
would be, and what methods should be followed. Though management as a whole is
involved with innovation as a continuing process, its role is somewhat limited to regualr
change. In a planned change, however, the type of requirements may be different and
internal management has to take the help of external change agents. Thus, there may be
two types of change agents : external and internal.
External change agents are in the form of consultants for change. These are the persons
who are normally experts in the specific area of organisational change. The internal
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change agents from the existing organisational personnel, from any level or department,
depending upon the needs of the change. Often, both these agents work in harmony. A
good deal of interaction in early contacts between internal and external change agents is
implicitly related to developing a relationship of mutual trust so that each one of them can
understand the views of others. Afterwards, the internal change agents are trained by the
consultants to implement the change as an ongoing process. For this purpose, the
consultants devise certain change strategy. Role of Change Agents
The objective of the change agents is to bring desired change in the organisation.
However, for this purpose, a specific role is required to be performed by the change
agents,both external and internal. Since relative positions of these change agents may be
different in organisational context, their roles may also be different in the change process.
A. Role of External Change Agent
The external change agent is in a position to view the organisation meant for change from
a total systems viewpoint, and is much less affected by organisational norms. He is likely
to have easy access to top management since it is the top management on whose initiative
the consultant is contacted. Depending upon the situation, the role of exernal change agent
may vary because he is engaged by an organisation for certain specific activities. The role
of consultant may include diagnosis of the situation, planning strategy for change,
intervening in the system for change, and even the evaluation of the change efforts in the
context of various outcomes. From this point of view, the role of consultant may be quite
comprehensive. However, the change programme will be successful only when the
consultant is given the role of process consultation and the rest of the programme is
implemented by the organisation itself with the help of the consultant. Change agent
observes that problms will stay solved longer and be solved more effectively, if the
organisation solves its own problems. The consultant has a role in teaching diagnostic
techniques and problem-solves its own problems. The consultant has a role in teaching
diagnostic and problem-solving skills but he should not work on the actual concrete
problem himself. Maheshwari has identified the role of consultant in installing
Management By Objectives (MBO), a progrmme for organisational change, as follows :
1. Educating the top management;
2. Organisational diagnosis;
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3. Formulation and implementation of strategy,
4. Selection, training, and supervision of MBO advisors;
5. Training of managers;
6. Process consultation at the top level;
7. Advice to the chief executive and other top excutives on the managers' objective
documents;
8. Evaluation and innovation; and
9. Integration of MBO process with other management systems and techniques.
B. Role of Internal Change Agents
There are several differences between internal and external change agents and their roles
may not be interchanged. The internal change agents are more likely to accept the system
as given and try to accommodate their change tactics to the needs of the organisation. By
accepting the norms of the organisation, these change agents spend little time in helping
the organisation move towards self-renewal, growth, and change. There may be two
categories of persons who may act as internal change agents: chief executive of the
organisation and change advisors from among the organisation's managers.
Chief Executive : The chief executive sponsors the change programme and provides
support and leadership for its success. Usually, people do not treat a chief executive as a
change agent in planned change. However, the change programme has a greater chance of
success if it is sponsored by the chief executive. When the change process proceeds
smoothly, the role of the chief executive may gradually gets reduced and other key
members of the organisation, who are responsible for major units of the organisation also
begin to act as change agents in their respective domains. The role of the chief executive
as a change agent can be evaluated by this statement. "The role of the chief executive is of
paramount importance, especially during the initial phase of MBO implementation. He has
to be personally convinced about the appropriateness of MBO and must show his
conviction not only in the things he says, but in the things he does. In the early stages of
implementation, he must demonstrate that he believes in a participative style of
management, and provides leadership to his management team in the change process."
Unfortunately, many of the chief executives and managers do not subscribe to the view
and the change efforts are not as successful as it should be.
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Change Advisers : Apart from the chief executive, the change advisers have important
role to play in change process. These are the internal personnel initially selected to work in
close harmony with external consultant. They are trained by the consultant for
implementing the change. Their number may be determined by the types of change and
size of the organisation.
A change adviser's role concerns primarily with to make the organisation to accept the
change programme and is essentially educational. The adviser communicates to the
managers the knowledge of the concepts and methods of various change techniques which
he has learned through various training programmes, with the help of the consultant. Thus,
he helps the managers to develop appropriate behaviour and skills for the change process.
Thus, the adviser becomes a socio-therapist, trying to help the system help itself. The role
of change adviser is quite complex in the sense that he has to work now in an advisory
capacity whereas he has performed his functions in capacity of line manager having
persuasive capability. He has to achieve the performance objective in terms of influencing
members of the organisation to accept and internalise the new values, concepts, and
practices without the formal authority over them. Given the character of organisational
life, the change agent needs to develop skills to negotiate, persuade, mobilise, and use
power for the process of his role. It suggests that he must be trained as such so that he can
find out the alternatives of formal authority in the organisation. From this point of view, it
is important that change agents are selected carefully. Walton has described some qualities
of change agents which are :
1. diagnostic skills.
2. behavioural skill in breaking impasses and in interrupting repetitive interchange.
3. attitudes of acceptance, and
4. personal qualities to provide emotional support and reassurance.
Organisational Growth and Change
Organisational change, discussed so far, relates to the problems in organisations that are
already established. For new and emerging organisations, the issues are different in that
they deal with organisational problems of different nature. New organisations face several
simultaneous issues; they must be both able to get the task accomplished and, at the same
time, build the structures that bring order to their key social and decision making
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processes. Though management of growth is essentially one measure of change, growth
has been handled in a number of different ways by different authors, and they have
developed different models to deal with the problems of organisational growth.
Stages of Organisational Growth
As shown in the following figure, there are five phases in organisational growth creativity,
direction delegation, coordination, and collaboration followed by a particular crisis and
management problems.
l.Creativity Stage : Growth through creativity is the first phase. This phase in dominated
by the founders of the organisation and the emphasis is on creating both a product and a
market. Generally, these founders are entrepreneurs with technical orientation and they
concentrate their mental and physical energies entirely in producing and selling a product.
However, as the organisation grows in size and complexity, the need for greater efficiency
cannot be achieved through informal channels of communication. Thus.many managerial
problems occur which the founders may not solve effectively either because they may be
less suited for the kind of job or they may not be willing to handle such problems. Thus, a
crisis of leadership emerges and the risk evolutionary period begins. Such questions as
"who is going to lead the organisation out of confusion and solve the management
problems confronting the organisation; who is acceptable to the founders and who can pull
the organisation together" arise. In order to solve these problems, a new evolutionary
phase-growth through direction-begins.
2. Direction Stage : When leadership crisis leads to the founders relinquishing some of
their power to professional managers, organisational growth is achieved through direction.
During this phase, the professional managers and key staff take most of the responsibility
for instituting direction, while lower level supervisors are treated more as functional
specialists than autonomous decision-making managers. Thus, directive management
techniques enable the organisation to grow, but they may become ineffective as the
organisation becomes more complex and diverse. Since lower-level supervisors
are most knowledgeable and demand more autonomy in decision making, a next period of
crisis-crisis for autonomy-begins. In order to overcome this crisis, the third phase of
growth-growth through delegation-emerges.
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3. Delegation Stage : Resolution of crisis for autonomy may be through powerful top
managers relinquishing some of their authority and a certain amount of power
equalisation. When the organisation gets to the growth stage, delegation usually begins to
develop a decentralised organisation structure which heighens motivation of the lower
levels. However, with decentralisation of authority to managers, top executives may feel
that they are losing control over a highly-diversified operation. Field managers want to run
their own shows without coordinating plans,money, technology, or manpower with the
rest of the organisation and a crisis of control emerges. The crisis can be dealt with the
next evolutionary phase-the coordination stage.
4. Coordination Stage: The crisis of control often results into a return to centralisation,
but this is now inappropriate and creates resentment and hostility among those who have
been given freedom. Thus, instead of centralisation, coordination becomes the more
effective method for overcoming crisis of control. The coordination phase is characterised
by the use of formal systems for achieving greater coordination with top management as
the watch dog. The new coordination systems prove useful for achieving growth and more
coordinated efforts by line managers, but result into a task of conflict between line and
staff, between headquarters and field. Line becomes resentful of staff; staff complains
about uncooperative and uninformed line managers; and everyone gets bogged down in
the bureaucratic paper system. Procedure takes precedence over problem solving; the
organisation becomes too large and complex to be managed through formal programmes
and rigid system. Thus, crisis of red-tape begins. In order to ovecome the crisis of red tape,
the organisation must move to the next evolutionary stage-the collaboration stage.
5. Collaboration Stage : The collaboration stage involves more flexible and behavioural
approaches to the problems of managing a large organisation. Greiner observes that while
the coordination stage was managed through formal systems and procedures, the
collaboration stage emphasises greater spontaneity in management action through teams
and skilful confrontation of interpersonal differences. Social control and self-dicipline take
over from formal control. Though Greiner is not certain what will be the next crisis
because of collaboration stage, he feels that some problems may emerge as it will centre
around the psychological saturation of employees who grow emotionally and physically
exhausted by the intensity of teamwork and of the heavy pressure for innovative solutions.
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Hersey and Blanchard, however, feel that to overcome and even to avoid the various
crises, managers could attempt to move through the evolutionary periods more
consistently with the sequencing that situational leadership theory would suggest-direction
to coordination to collaboration to delegation-rather than the ordering depicted by Greiner.
Though, there may be controversy and disagreement over the sequencing arrangement of
various actions and styles, the growth clearly presents problems of adjustments for the
organisation. As organisations grow and evolve, they change and present the problems of
management of change, and ultimately the organisation's policies, procedures, structure
and so on, may have to change. Thus, ultimate problem before every organisation is
change and development.
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16 ORGANISATIONAL DEVELOPMENT
Introduction
The term 'Organisational Development' (Organisational Development) came into
prominence in the 1960's. It was popularised by theorists like Blake and Mouton, Shepard
and Beckhard. Organisational Development seeks to use behavioural science knowledge to
help organisations adjust more rapidly to change. The underlying principle of
Organisational Development is that the ideal way to achieve change in organisations is to
alter each person's entire formal or informal role set to support the change. It is more
difficult to change an individual alone because he is placed into role conflict as his peers,
superiors and subordinates retain the same role expectations of him. In such
circumstances, it would be worthwhile to revise the entire role set to support the change.
What is Organisational Development ?
Organisational Development is an educational strategy which focuses on the whole
culture of the organisation in order to bring about planned change. It seeks to change
beliefs, attitudes, values and structure-in fact, the entire culture of the organisation-so that
the organisation may better adapt to technology and live with the pace of change. Thus,
organisational development is the process of bringing change in the entire aspects of the
working of an organisation.
According To R. Beckhard, "Organisational development is an effort (1) planned (2)
organisation wide, and (3) managed from the top (4) to increase organisation
effectiveness and health (5) through planned interventions in the organisation's proceses,
using behavioural science knowledge" Organisational Development is planned since it
requires a systematic diagnosing, developing an improvement plan and mobilising
resources to carry out the effort. But some people feel that an Organisational Development
programme may not be fully planned because it is not always possible to lay down a
complete blueprint in advance. It is organisation wide since it involves the total system.
According to Beckhard, the term 'system' does not necessarily mean the entire
organisation, but could refer ro a relatively autonomous subsystem such as a semi-
independent plant of an enterprise. Organisational Development must be managed from
the top. This means that top management must have commitment to and knowledge about
the goals of the programme and must actively participate in its implementation. The
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purpose of Organisational Development is very broad as it is concerned with the
effectiveness of the whole organisation. Lastly, it is implemented through some
interventions such as sensitivity training, survey feedback and process consultation. The
knowledge drawn from the behavioural sciences such as psychology, sociology and
anthropology is widely used in Organisational Development.
Organisational Development is not merely management development which is focused on
a particular manager or a group of managers in order to change managerial behaviour.
Organisational Development is focused on the broader system of which the manager is a
subsystem. Organisational Development is not even a specific technique such as
sensitivity training, job enrichment, group team building, or management by objectives.
Characteristics of Organisational Development
The distinctive characteristics of Organisational Development are as follows :
(i) Organisational Development is an educational strategy for bringing planned change
throughout the organisation.
(ii) Organisational Development aims at improving organisation's problem-solving
processes and, thus organisational effectiveness.
(iii) Change agents are employed to bring about the desired change through the application
of various Organisational Development interventions.
(iv) There is a close working relationship between the change agent and the people who
are being changed.
(v) Change agents apply behavioural science knowledge to bring about the desired change.
(vi) Organisational Development is managed by the top management. In other word, top
management is involved right from the inception of the idea of change to implementation
of various Organisational Development interventions.
Organisational Development vs. Management Development
Organisational development is a strategy which is planned and implemented from the top
with a view to bring about planned organisational change for the purpose of increasing
organisational effectiveness. But management development, on the other hand, is the
device to increase the skills and ability of managers. Since managers are supposed to be
conversant with the latest changes in social, economic, technological and political
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environment, organi-sations usually send their managers to attend management
development programmes such as refresher courses, seminars, symposia, etc.
An organisation development programme is desigend keeping in view the values and the
culture of the organisation. The ultimate goals may be the creation of an energetic team,
changing the attitudes of organisation members and developing new values. But the goal
of a management development programme is to help the managers to discharge their
responsibilities effectively. In many cases, management development becomes a part of
ORGANISATIONAL DEVELOPMENT because Organisational Development seeks to
improve the entire system including the management development programme. Need and
Significance of Organisational Development
Organisational Development (Organisational Development) is a dynamic discipline
directed towards using behavioural science knowledge to assist organisation adjust more
rapidly to change. Using the systems apprach, Organisational Development has grown
rapidly in response to need-the need for organisation to remain viable and to survive in the
world of change. Two important factors have caused the use of Organisational
Development for implementing planned change:
Firstly, training for change does not work properly only through reward structure on the
job unless there is proper change in the environment of the organisation in which people
work.
Secondly, in a dynamic environment, change is extremely rapid. This requiries a highly
receptive and effective organisation so that changes are implemented and absorbed to
make organisation survive and grow. Organisational Development helps a lot in this
direction. "It (Organisational Development) tries to free up communication tightness by
increasing the amount.trust, and candour of communication. It seeks to build problem-
solving capability of communication by improving group dynamics and problem
confrontation. In short, it reaches into all aspects of organisation culture in order to make it
more humanly responsive."
Benefits of Organisational Development
Margulies and Raia have given the following benefits of organisation development:
1. Provides opportunities for people to function as human beings rather than mere
resources in the productive process.
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2. Gives each member of the organisation opportunities to develop to his full potenital.
3. Seeks to make the organization more effective in meeting all its goals.
4. Tries to create an environment in which exciting and challenging work can be found.
5. Gives people in the organization a chance to influence how they relate to work, the
organisation, and the work environment.
6. Treats each human being as a person with a complex set of needs, all of which are
important in his working life.
Limitations of Organisational Development
Organisational development is an important technique of introducing change. It has certain
limitations also which are listed below :
1. Organisational Development is heavily based on the behavioural science concepts.
Behavioural science has many limitations which are also applicable to organisation
development.
2. Organisational Development requires use of certain persons who can take initiative to
bring about change. Complacent people cannot be helpful in implementing plans for
organisation development.
3. Organisational Development cannot be applied without giving due consideration to the
circumstances existing within the organisation. The local circumstances may pose a
problem in adapting to change.
Assumptions of Organisational Development
Organisational development is based on certain assumptions which are follows:
1. Most individuals have ambitions for personal growth and development. However, the
work habits are a response to work environment rather than personality traits.
Accordingly, efforts to change work-habits should be directed towards changing how a
person is treated than towards attempting to change the person.
2. Highest productivity can be achieved when the individual goals are integrated with the
organisational goals.
3. Cooperation is more effective in resolving a conflict. Conflict tends to erode trust,
prohibit collaboration and eventually limit the effectiveness of the organisation. In healthy
organisations, efforts are made at all levels to treat conflict as a problem subject to choose
problem solving methods.
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4. Suppression of feelings adversely affects problem solving, personal growth and
satisfaction with one's work. Accordingly, free expression of feeling is an important
ingredient for commitment to work.
5. Growth of individuals is facilitated by relationships which are open, supportive, and
trusting. Accordingly, the level of inter-personal trust, support and cooperation should be
as high as possible.
6. The difference between commitment and agreement must be fully understood. Agreeing
to do something is totally different from being committed to do something. Sense of
commitment makes it easy to accept change and the implementation of change is even
easier when this commitment is based upon participation in the process.
7. Organisational Development must be reinforced by the organisation's total human-
resources system.
STEPS IN ORGANISATIONAL DEVELOPMENT Lawrence and Lorsch have provided
five steps in Organisational Development, which are explained below :
1. Diagnosis of the Problem
Organisational Development programme starts with the identification of the problem in
the organisation. Analysis of various symptoms—both overt and covert—may help in
identifying the problem. Diagnosis of a problem will provide its causes and determine the
nature of future action needed. A lot of bad decisions are taken because the decision maker
does not have a good grasp of the problem. Therefore, adequate information should be
gathered to identify the real problem. If proper care is not taken at this stage, what may
appear at first sight to be the real problem may ultimately trun out to be a mere symptom.
The manager should try to have an overall view of the situation to find the real problem.
2. Planning Strategy for Change
Many firms employ management consultants to suggests strategy for change. The
management consultant or Organisational Development practitioner should attempt to
transform diagnosis of the problem into a proper action plan involving the overall goals
for change, determination of basic approach for attaining these goals and the sequence of
detailed scheme for implementing the approach.
3. Preparation of Change Agents
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Change is to be introduced with the help of change agents who act as catalysts or
facilitators of change in organisation. A change agent is a pace setter in the process of
organisational development. Change agents may be outsiders or insiders. External change
agents are consultants appointed by the management to advise, oversee and initiate
change. They must have the support of internal change agents who are managers working
at different positions in the organisation. The in-house change agents must be given
adequate training so that they are effective in implementing the change.
4. Implementing the Change
Although it is quite simple to identify the change after it has occurred, it is very difficult to
influence the direction of change while it is underway. Planning and implementation of
change are interdependent. The way in which a change is planned has an important impact
on the way in which it is carried out; and conversely, the problems in implementing
change have also an impact on the modification of change plan. Organisational
Development practitioners have an important role in implementing change. They will
interfere if the change is not taking place in the direction it is desired. 5. Evaluation
Organisational Development is a very long process. So there is a great need for careful
monitoring to get precise feedback regarding what is going on after the Organisational
Development programme started. This will help in making suitable modifications
whenever necessary. For evaluation of Organisational Development programme, the use
of critique sessions, appraisal of change efforts and comparison of pre and post-training
behavioural patterns are quite effective.
ORGANISATIONAL DEVELOPMENT INTERVENTION TCCHNIQUES
1. Behavioural Techniques: These techniques are designed to affect the behaviour of
individuals and groups. These include :
(i) Sensitivity training.
(ii) Management by objectives.
(iii) Grid training and development.
2. Non-Behavioural Techniques : These techniques are much more structured than the
behavioural techniques. These include :
(iv) Changes in organisation structure.
(v) Work design.
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(vi) Job enrichment.
3. Miscellaneous Techniques: In addition to the above techniques, there are certain other
techniques which are used in organisation development, such as:
(vii) Survey feedback.
(viii) Process consultation.
(ix) Team building.
(i) Sensitivity or T-Group Training
A manager's behaviour is not how he thinks or behaves, but how others view his
behaviour. The sensitivity training has the objective of expanding a person's understanding
of how his behaviour affects others and his reaction to the behaviour of others. Under this,
the participants are encouraged to undertake considerable self-examination. Sensitivity
training represents a valuable psychological experience and a highly effective approach for
improving of interpersonal ralationships. If offers the following benefits :
(i) The participants learn about themselves, specially about their own weaknesser and
emotions.
(ii) It develops insights into how the participants react to others and how others react to
them.
(iii) It helps to understand group processes and inter-personal relations and how to manage
people through means other than power.
(iv) It helps to assess one's values and goals as a result of analysis of direct experiences.
(ii) Management by objectives
Managing by objectives is a dynamic system which integrates the company's need to
achieve its goals for profit and growth with the manager's need to contribute and develop
himself. According to George S. Ordiorne, the system of management by objectives can
be described as a process whereby the superior and subordinate managers of an
organisation jointly identify its common goals, define each individual's major areas of
responsibility in terms of results expected of him, and use these measures as guides for
operating the unit and assessing the contribution of each of its members. Ordiorne also
stressed that MBO is not merely a set of rules or a series of procedures activities or even a
set method of managing, but it is a way of thinking about management.
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Management by objectives is a comprehensive tool of management. It calls for regulating
the entire process of managing in terms of meaningful, specific and variable objectives at
different levels of management hierarchy. Management by objectives moulds planning,
organising, directing and controlling in a number of ways. It stimulates meaningful action
for better performance and higher accomplishment. It is closely associated with the
concept of decentralisation because decentralisation cannot work without the support of
management by objectives.
(iii) Grid Development
Grid organisational development is based on Blake and Mouton's models of leadership
called the Managerial Grid. Their model depicts two prevailing concerns found in all
organisations-concern for productivity and concern for people. Some managers are high in
concern for productivity but low in concern for people. Besides helping managers evaluate
their concern for people and productivity, the Managerial Grid stresses the importance of
developing a team-management leadership style.
In grid Organisational Development, change agents use questionnaire to determine the
existing styles of managers, help them to reexamine their own styles and work towards
maximum effectiveness. A grid Organisational Development programme has six phases:
1. Training : Key managers learn about grid concepts and how they are applied in a week-
long seminar. They assess their own managerial styles and work on improving such skills
as team development, group problem-solving, and communication. After appropriate
instruction, these key managers will work to implement the grid programme throughout
the organization.
2. Team Development : The trained managers bring their new understanding of
Managerial Grid concepts to the work situation. Emphasis is placed on improving both
manager-subordinate relationships and team effectiveness so that team operates on the 9,9
grid level.
3. Inter-Group Development : This phase focuses on the relationship between the
organisation's work groups to improve coordination and cooperation. Intergroup tensions
are dealt with openly and joint problem-solving procedures are developed.
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4. Organisational Goal Setting: Top managers together create an ideal model of the
organisation. They set goals to be tested, evaluated, and refined by managers and
subordinates working together throughout the organisation.
5. Goal Attainment : Organisational members seek to make the ideal model a reality. Each
subunit examines how their activities should be carried out in order to achieve excellence
and they proceed to take whatever corrective actions are necessary.
6. Stabilisation: Eventually, the results of all the phases are evaluated to determine which
areas of the organization still need improvement or alteration. Efforts are made to stabilize
positive changes and to identify new areas of opportunity for the organization.
(iv) Organisational Redesigning/Redefining
The organization's structure may be changed to make it more efficient by redefining the
flow of authority. There can also be changes in functional responsibility such as a move
from product to matrix organizational structure.
Organizational structure often reflects the personal desires, needs, and values of the chief
executive. Changing structure, therefore, may create resistance and concern because
people are worried about their power or status, or how the change will affect their work
groups.
(v) Work Design
Work designing is a broad term which means the process of defining tasks and jobs to
achieve both organizational and employee goals. It must, therefore, take into account the
nature of the business (organisational interest) and the organizational structure, the
information flow and decision processes, the differences among employees, and the
reward system. Within the broad scope of w ork design is the design of individual JDbs.
that is.job design. Job analysis is the process of obtaining information about jobs. Job
redesign makes use of job analysis to redefine a job in terms of tasks, behaviours,
education and skills, relationships, and responsibilities required.
When job design or redesign is the objective, job analysis is indispensable. Fortunately,
job designers hardly ever have to start from scratch because only a few functions are
entirely new. Much of job design, therefore, consists of redistributing activities and
reconfiguring existing jobs. Even under circumstances where jobs are entirely new,
imaginative job designers have been able to describe future activities accurately.
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(vi) Job Enrichment
Job enrichment implies increasing the contents of a job or the deliberate upgrading of
responsibility, scope and challenge in work. Job enrichment is a motivational technique
which emphasises the need for challenging and interesting work. It suggests that jobs be
redesigned so that intrinsic satisfaction is derived from doing the job. In its best
applications, it leads to a vartically enhanced job by adding functions from other
organisational levels, making it contain more variety and challenge and offer autonomy
and pride to the employee. The job holder is given a measure of discretion in making
operative decisions concerning his jobs. In this sense, he gains a feeling of higher status,
influence and power.
The term 'job enrichment' should be distinguished from the term 'job enlargement.'Job
enlargement attempts to make a job more varied by removing the dullness associated with
performing repetitive operations. It involves a horizontal loading or expansion, i.e. the
addition of more tasks of the same nature. But in job enrichment, the attempt is to build
into job a higher sense of challenge and importance of achievement. Job enrichment
involves vertical loading of functions and responsibilities which require higher levels of
skills and competence.
(vii) Survey Feedback
A major difficulty in relying solely on sensitivity training is that it neglects the important
procedural aspects of the functioning of teams. While the team members may get along
with each other better as a result of sensitivity training, in most cases, they will not
become more effective unless there is an improvement in their actual procedures, the way
they go about solving their problems.
To redress the balance, another approach to team development has emerged, that of survey
feedback. The approach, first developed at The Institute of Social Research of University
of Michigan, aims to setfteams in organisations to devise better processes for handling the
issues facing them. Although consultants differ in how they apply survey feedback
approach, they usually require the team to spend some time in highly concentrated
activity, usually from two to three days away from the working situation, in examining
how it goes about its tasks of setting objectives, making decisions, tackling problems
relating to each other.
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As its title suggests, the method used by the consultant is to "survey" the situation as it
currently is and give a "feed back" of his observations to the group. The feedback
information is then discussed and worked on by the team members, who gradually learn to
take over from the consultant the process of surveying what they are doing and feeding
this back to themselves as an essential aid to their long-term development as a team. The
concentrated 2-3 days' activity has as its main objective creating an awareness among team
members of what processes are going on within the group situation and then teaching them
to build on the positive elements in those processes and reduce the negative elements. In
order to do this, the consultant may use a number of structured exercises, and survey
instruments, and also encourage the team members to use sensing, critiquing, and other
feed-back methods.
The survey feed-back approach is most effective at improving teams whose members
already possess a high degree of conceptual skill and are dealing with long-term issues.
This approach is less useful with teams which are concerned essentially with day-to-day
activities and short-term results, (viii) Process Consultation
Process consultation includes "a set of activities on the part of a consultant which helps the
client to perceive, understand, and act upon process events which occur in the client's
environment". Process consultation assumes that an organization's effectiveness depends
on how well its people relate to one another. An organisation's problem, therefore, often
can be traced to the breakdown of critical human processes at key places. Process
consultation concentrates on certain specific areas such as communication, functional roles
of members, group problems-solving, and decision-making group norms and growth,
leadership and authority and intergroup cooperations and competition.
The assumptions underlying the process consultation model are:
(i) Managers often need special diagnostic help in knowing what is wrong with the
organisational.
(ii) Most managers have constant desire to increase organisational effectiveness, but they
need help in deciding *how' to achieve it.
(iii) Managers can be effective if they learn to diagnose their own strengths and
weaknesses without exhaustive and time-consuming study of the organisational.
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(iv) The outside consultant cannot learn enough about the culture of the organizational, to
suggest reliable new courses of action. He should, therefore/work jointly with the
members of the organisation.
(v) The client must learn to see the problem for hhnself understand the problem and
suggest a remedy. The consultant should provide new and challenging alternatives for the
client to consider. However, the decision-making authority on these alternatives about
organizational changes should remains with the client.
(vi) It is essential that the process consultant is an expert in diagnosing and establishing
effective helping relationships with the client. Effective process consultation involves
passing those skills on to the client.
Process consultation has four steps. First, an agenda-setting meeting is held. Next, the
group is told how well it functions. Third, individuals and groups of people are coached
and counselled. Finally, structural changes are made in the group. This process typically
involves a professional consultant from outside the company, (ix) Team Building
Team building is an attempt to assist the work group in learning how to identify, diagnose
and solve its own problems. It directly focuses on the identification of problems relating to
task performance and lays down concrete plans for their elimination. A team building
programme deals with new problems on an ongoing basis. It is an effective technique by
which members of a group diagnose how they work together and plan changes that will
improve their effectiveness.
The workgroup problems may be related to task or personality conflicts. The task related
issue can be streamlined by changing the ways things are done, by redirecting the
resources to be utilized and by re-examining the work processes. The interpersonal
relationships within the team can be improved by creating an environment which is open
and trust-worthy, where members can openly and freely communicate their feelings and
thoughts, where leadership evolves on the basis of respect and functional excellence and
where conflicts are resolved on the basis of mutual understanding.
Team-building requires the help of a skilled process observer or consultant to increase the
effectiveness of the group's tasks and maintenance roles. Feedback is an important
component of team-building which is provided by the consultant during or after meeting to
increase the effectiveness of both the group as well as the members.
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The approaches to team-building are as follows :
1. The consultant will interview members of the team to know, their feelings, attitudes and
perceptions of team effectiveness. After that the consultant will arrange a meeting of
group away from the organisation and provide them feedback data which are discussed in
detail. The set of priorities will be worked out and action plan formulated for resolving the
problem.
2. Each member will discuss with other members his perceived roles and also team spirit
so as to make more productive and meaningful contribution. This exercise will help in
removing most of mis-understandings existing between team members and also ensure
that each team member accepts his role as well as the role of other team members.
3. The consultant will attend regularly the team meetings. He will observe how the team is
accomplishing the group tasks and maintaining roles. In other words, he will concentrate
on the process rather than the contents. The process includes such variables as group
atmosphere and the degree of trust and openness; task effectiveness including the degree
to which the group is working or "goofing off and whether full use is being made of the
talents and resources of the group; and the degree and nature of participation, etc.
SENSITIVITY TRAINING Sensitivity training or T-group training is a kind of laboratory
training as it is conducted under controlled conditions. It means the development of
awareness and sensitivity to behavioural patterns of oneself and others. It is an experience
in interpersonal relationship which results in a change in feelings and attitudes towards
oneself and other. T-groups are helpful in unlearning and learning certain things. They
help the participants to understand how groups actually work and give them a chance to
discover how they are interpreted by others. It also aims at increasing tolerance power of
the individual and his ability to understand others. The sensitivity training programmes are
generally conducted under controlled laboratory conditions.
The two functions of a T-group or sensitivity development group are as under:
(i) The help its members to learn how groups actually work.
(ii) To give each member of the group a chance to discover how other people interpret and
are affected by his own behaviour.
The working of T-group involves sitting around and table discussing for hours. The trainer
usually a psychologist neither leads the discussion nor suggests what should be discussed
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but only guides the discussion. The trainer at the group's first meeting simply states that
idea of a T-group is to help its members learn about their own behaviour and also learn
from others' behaviour. As the members of a T-group discuss what they should talk about
and how their discussion should be structured, conflicts obviously arise. Members criticise
freely the behaviour of each other thereby giving feedback which may be positive or
negative.
T-group or sensitivity training is an important tool of helping managers win the
cooperation of people working with them. There is no doubt that the T-group is one of the
most effective development strategies. It has been experienced that about two-thirds of the
participants who have undergone laboratory training display change in behaviour of
positive type. Sensitive training can also be used in preparing change agents for
implementing planned change in the organisation.
Benefits of Sensitivity Training
Research studies have indicated that individuals who have attended sensitivity training
sessions tend to show more sensitivity, more open communication, and increased
flexibility. The benefits of sensitivity training are as under:
(a) Increased self-awareness or insight about one's own behaviour and learning how others
perceive it.
(b) Increased sensitivity to the behaviour of others, to communication stimuli emitted by
others through their voice inflections, face expressions, body gestures and signals, etc.,
and enhanced ability to interpret accurately the emotional or non-cognitive bases of
interpersonal communication.
(c) Increased insight into the process that facilitates or inhibits group functioning, and
intergroup interactions.
(d) Higher level of skill to diagnose group inter personal and intergroup situations.
(e) Increased skills to and/or to intervene in group situation with a view to increasing
members satisfaction, effectiveness or output.
(f) Ability to analyse continually one's own behaviour with a view to achieving more
effective and satisfactory relationships.
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Limitations of Sensitivity Training
The sensitivity training is regarded as a controversial development technique. Despite the
popularity of T-group, the value of his technique is vigorously disputed by some
specialists in management development. They are willing to concede that a trainee may
learn a thing which may be helpful at imes in his life, but of little use to cope up with his
job. To support their point of view, they say that ti ;ere is no psoof that managers who
have been to laboratory do their jobs better Lhan before!. It is also said that sensitivity
training may cause psychological reactions wfiich a persons may not be Jn a position to
bear because of the openness and truth about the situation. i
Research studies have indicated that it is difficult to predict exactly whfct | the outcome
of a sensitivity traijiing session will be for a particular individual. Also, some people may
be psychologically harmed because! they simply cannot cope with the frustrations caused
by free and frank expression of opinions. "H~ Sensitivity training is alleged tq be an
invasion of privacyand damaging to a Jf trainee emotionally. Due to the Pressure,
participants may reveal more about themselves than they actually intended to do. There is
also criticism that trainers S may not be really con petent enoegh to conduct any session
that becomes highly.
There is a fundamental conflict between the values taught at a laboratory jg^ and the
values inhere nt in the structure of the business It is also conceded that laboratory training
ia only a partial attack on the prcbleijn of organisational effectiveness. But if effectiveness
is to be permanently introduced, one must also change the organisation structure,
managerial controls and incentive St; systems. The serious < riticism of laboratory training
is that it is of little practical use, and the other disadavanta|re is that trainee may bej badly
hurt by the emotional feeling. Thus, there isfno doubt that certain amount of anxiety and
stress are inevitable i.iT-Groups|
To sum up, sensitivity trailing has both strong and!weak points. It is essential tor managei
lent to takf adequate steps to remove the deficiencies of sensitivity training. Ii' used with
fare, sensitivity training can be of great value in overcoming resistance and in introducing
change in the organisation.
Like sensitivity 'raining, rcfe playing is also a technique of laboratory . I development.
Whereas sensitivifM training aims at developing sensitivity to behavioural patterns of
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oneself end others, role playing has the purpose of ~ improving trainee's skill in dealing
with others. However, in practice, it may i not be possible to diffe rent.ate b<|tween the
objectives of the two even though the methodologies use' in both a|e quite different.
Role playing technique is uied for understanding huinan relations and leadership training.
Its purpose is fo give trainees an opportunity to learn human relations skills throug i
practice sfid develop insight into one's own behaviour and its effect upon others. Thus, if-:
objective is very narrow, te., to increase the trainee's skill in dealin with otheis. It can be
used in humanjrelations training and sales training beciiuse both thjese involve dealing
with others.
Under this method, conflict situation is artificially constructed and two or more trainees
are assigned different roles to play. No dialogue is given beforehand. The role pli yers are
pr|vided with either a writtenjor oral description of the situation and the role they ale to
play. After being ailovVed sufficient time to plan their actions^ they must t^en act their
parts spontaneously before the class. For instance, a role playingf situation may be a
supervisor discussing a grievance with an employee or a salesman making a presentation
to a purchasing agent. J i' . I
Role playing has i number of advantages. It provides an opportunity for developing human
relations, undelstanding and skills, and to put into practice the knowledge they have
acquired from textbooks, lectures, discussions, etc. It is learning by doing. The interview
may be recorded to provide the trainees a chance to listen to their performance and note
their strengths and weaknesses. Thus, knowledge of results is immediate because the
trainees as well as the observers analyse the behaviour of the role players.
REQUIREMENTS OF SUCCESSFUL IMPLEMENTATION OF ORGANISATIONAL
DEVELOPMENT INTERVENTIONS We have discussed above the various
Organisational Development interventions which can be used for different objectives
under different situations. For the successful implementation of Organisational
Development interventions, the following guidelines should be followed :
1. Support of Top Management: This is the first and the most essential requirement of
introducing any Organisational Development intervention that it should have the backing
of the top management. Without the support of top management, any Organisational
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Development intervention is likely to fail and thus lead to wastage of time, resources and
energy.
2. Identification of the Objectives of Change: The management should carefully analyse
the external and internal forces demanding change in the organisation. The information
regarding change comes from the external environment and internal control systems. After
this, it is essential to lay down the objectives of change. Clarity about objectives of change
will help in planning strategies of change.
3. Determination of the Elements to be Changed: After ^identification of objectives of
change, it is necessary to determine the elements which require to be changed. Change
may be required in the following elements : structure, technology and people. Structural
changes relate to job design, departmentation, span of control, mechanisms for integration,
etc. Changes in production techniques, plant and machinery, etc. constitute technological
changes. Changes in organisational members are facilitated through changes in their
attitude, behaviour interactions, informal groupings, etc.
4. Adequate Planning : Planning of change involves finding answers to questions such as:
when to bring about change, who will be affected by change, how to introduce change and
who will introduce change. The timing of introducing change must be favourable to the
organisation, otherwise the whole exercise will become futile. Situation will be favourable
when resources for change are available and the employees are receptive to change. It is
also of utmost importance to prepare change agents, i.e., individuals who are designated
for bringing a change in the organisation.
5. Workers' Participation: The management should discuss the proposed change with the
subordinates because people who have an opportunity to participate in planning for change
will have some feeling of commanding their own destiny and not of being pushed around
like so many pawns on a chess board. Participation will give the people involved a feeling
of importance. They are likely to be more committed to the change.
6. Effective Communication : There should be effective two-way communication in the
organisational. Management should make every effort to let people know about
organisational change. The necessary information may be disseminated through the
medium of conferences ajid meetings, company's bulletins, etc. Managers at various levels
should also pass on necessary information to their subordinates. Feedback should be
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encouraged to know the reactions of the subordinates. The subordinates should also be
given opportunity to ask questions to satisfy themselves about the proposed change.
7. Effective Leadership: During the implemetion stage, the management should provide
effective leadership to the workers and act as facilitator of change.Those who cooperate in
introducing the change must be encouraged through incentives.Those who resist change
might be persuaded or even threatened to make them accept the change. The management
can also use groups dynamics for the introduction of change. A group can be effective in
changing the attitudes and behaviour of its members particularly when it is attractive to the
members and they have a strong sense of belonging to the group.
8. Congenial Organisational Climate : Organisational Development interventions can
succeed in bringing about the desired change if there is congenial climate in the
organisation. There must be an atmosphere of open communication, mutual trust and
collaboration in the organisation. Both management and workers should trust each other
and be willing to cooperate with«ach other for the betterment of the organisational as well
as their progress. It would be really difficult to implement any Organisational
Development intervention if there is an atmosphere of suspicion existing between the
workers and the management.
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17 ORGANISATIONAL EFFECTIVENESS
Introduction
The concept of organisational effectiveness has been receiving considerable importance in
the past few years, particularly from the social scientist. Organisational effectiveness is
also called the organisational success, growth, efficiency, productivity, or profitability.
These various terms are often used interchangeably, though there are inconsistencies in the
various terms. The inconsistencies are because of the different concepts of organisational
effectiveness. Organisational effectiveness has gained importance because of the
following reasons:
(i) In the day to day modern life, man has become more or less dependent on various types
of organisations for the satisfaction of his needs. The need satisfaction is dependent upon
the organisational effectiveness. Higher the effectiveness, higher will be the satisfaction of
needs derived by the man from the organisation. Thus, this concept is very important from
the point of view of the society at large.
(ii) Organisational effectiveness has also gained importance because it provides a valuable
focal point for theoretical integration of the emerging but highly diversified field of
organisation theory.
Meaning and Definition
An organisation is said to be effective if it is able to achieve its goals within the constraints
of limited resources as none of the resources provided by the organisational environment
are unlimited. "Organisational effectiveness is the extent to which an organisation
achieves its goals with the give resources and means."
Organisational effectiveness is more comprehensive than is reflected by mere good
performance, and productivity of members or the financial success of the organisation.
Organisational effectiveness reflects how effectively an organisation can discharge its
obligations with respect to all of its constituents in its internal and external environment
e.g. shareholders.
Employees, customers, suppliers, government agencies and the general public.
"The growth, development, morale, motivation and satisfaction of the employees in the
system combined wit'i the good image projection of the organisation in the eyes of the
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general public account for in turn, for continued organisational health, vitality and growth
which account for the organisational effectiveness."
Thus, organisational effectiveness reflects how well the organisation is equipped to:
(i) Survive in the modern competitive business world by successful coping, and
(ii) grow and develop in future through creative adaptation strategies. The concept of
effectiveness appears to be simple but it is very difficult to
use this concept in practical life. It is because of this reason that the organisations and the
people who run them often have multiple objectives or goals which may be in conflict
with each other. Even the interpretation of organisational goals will be subject to different
view points of owners, society, employees, managers or some other groups. As it is very
difficult to achieve a consensus on the organisational goals, measurement of effectiveness
in precise terms is rendered almost impossible. Effectiveness and Efficiency
Effectiveness and efficiency are generally used very closely or interchangeably, although
both these terms have very clear and separate meanings.The difference in these two terms
can be explained with the help of the following points:
(i) Organisational effectiveness is commonly referred to as the degree to which
predetermined operational and operative goals are achieved. Whereas the concept of
efficiency represents the cost/benefit rate incurred in the pursuit of these goals. Or in other
words efficiency is something like the input-output ratio. It shows how much inputs are
used to produce certain amount of outputs.
(ii) Effectiveness is a multidimensional concept which can't be measured by a single
criterion. But efficiency can be measured by the input output ratio. This distinction is very
important to explain why some organisations are effective but highly inefficient or highly
efficient but ineffective.
(iii) Efficiency is primarily is criterion of the internal life of the organisation and it is
concerned with the economic and technical aspects of the organisation.
But effectiveness is a very broad concept as it considers the survival prospects of the
organisation which are not determined solely by the efficiency of the internal system.
(iv) Effectiveness considers organisation-environment interface and also takes care of the
human side of the organisation.Efficiency, on the other hand, concentrates on the
technological aspects of the organisation.
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(v) An effective organisation is not necessarily efficient and an efficient organisation is not
necessarily effective. It is, however, desirable that an effective organisation is also an
efficient one. Efficiency may help an organisation in becoming effective by increasing the
possibilities of energy storage and by helping in long run growth and survival, but it is
only an aspect of organisational effectiveness.
Approaches to Effectiveness
There are many approaches to conceptualise the organisational effectiveness. Such
approaches can be explained as follows:
1. Goal attainment approach
2. System resources approach
3. Strategic constituency approach
4. Maximisation or optimisation Approach
5. Behavioural approach
1. Goal Attainment Approach : The concept of organisational effectiveness is generally
used as goal attainment. In the words of Chester Barnard, "What we mean by
effectiveness....is the accomplishment of recognised objectives of co-operative effort. The
degree of accomplishment indicates the
degree of effectiveness.
The goal approach is a traditional view of the concept of effectiveness and it is widely
used by organisational theorists. This approach is basically based on two assumptions:
(i) The complex organisations have an ultimate goal towards which they are striving and
(ii) That the ultimate goal can be identified empirically and progress toward
it can be measured.
Goal approach defines effectiveness as 'profit maximisation' "providing an efficient
service," "high productivity" or "good employee morale."
R.L. Thorndire has noted a general tendency on the part of personal and industrial
psychologists to accept as ultimate criterion of organisational success of the following:
(i) Organisational productivity.
(ii) Net profit.
(iii) The extent to which the organisation accomplishes its various missions.
387
(iv) Success of the organisation in maintaining or expanding itself. Campbell has
suggested the following variables for measuring the
organisational effectiveness:
(i) Quality
(ii) Productivity
(iii) Readiness
(iv) Efficiencies
(v) Profit or return
(vi) Utilisation of environment
(vii) Stability
(viii) Turnover or retention
(ix) Accidents
(x) Morale
(xi) Motivation
(xii) Satisfaction
(xiii) Intel-nationalisation of organisational goals
(xiv) Conflict-cohesion
(xv) Flexibility adaptation
(xvi) Evaluation by external entities.
R.M. Gross has classified the activities in which an organisation must engage to help in
determining what the organisational goals might be therefore, what performance must be
and therefore, effectiveness. These activities are :
(i) Procurement of resources
(ii) Making efficient use of inputs relative to outputs
(iii) Producing services or goods
(iv) Performing technical and administrative tasks rationally.
(v) Investing in the organisation.
(vi) Conforming to ethical codes of behaviour.
(vii) Satisfying the varying interests of different groups with whom the organisation has
interactions.
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Based on the Goal Model, Bernard Bass, a psychologist goes on further and states that the
traditional indexes like productivity or profit are not adequate for measuring organisational
effectiveness. According to him an organisation should be evaluated in term of (i) the
degree to which it is productive, profitable, self maintaining and so forth.
(ii) the degree to which it is of value to its members
(iii) the degree to which it and its members are of value to society. Thus, many criterion
for organisational effectiveness based on goals have
been proposed. However, none of the single criterion has proved to be entirely satsifactory
as the sole or universal measure.
Limitations of Goal Approach : Goal approach is the most frequently used approach for
measuring effectiveness because it resembles closely the basic existence of the
organisation Le. goals. However, there are certain problems, both conceptual as well as
practical, in applying goal approach as a criterion for organisational effectiveness. These
limitations or problems are as explained below:
1. In practice different groups tend to pursue their personal goals. The Goal approach
which is based on the assumption of consensus on goals among organisational members,
thus, does not hold good in reality.
2. Most of the organisations have multiple goals. Sometimes, there is even conflict among
these goals. As it is difficult to follow all the goals simultaneously.the basic questions
remains: Which goals should be give priority?
3. In an organisation there are a large number of subunits and even larger number of
individuals. It may be very difficult to measure and appraise the performance of all
subunits and the individuals. If the performance cannot be measured, the measurement of
the effectiveness will pose a lot of difficulties.
4. It is very difficult to apply goal attainment approach in service organisations such as
clubs, schools, hospitals etc. because their goals are intangible.
5. Goal approach can be rejected as a tool of organisational effectiveness because of two
reasons (i) as goals, as ideal states do not offer the possibility of realistic assessment, (ii)
Goals as cultural entities arise outside the organisation as a social system and cannot
arbitrarily be attributed as properties of the organisation itself.
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All the above drawbacks, do not suggest that the goal attainment approach should be
rejected in to. For some analytical purposes, it is useful to abstract some goal as an
organisational property. From the organisational management point of view, the goal
concept it is generally taken as the basic criterion for measuring organisation
effectiveness.
2. System Resource Approach : This approach is based upon the open system model as
applied to social organisations. An organisation is a social system which is a part of the
environmental supra system. This model emphasises the interdependence or interaction
between the organisation and its environment. An organisation takes inputs from the
environment, converts them into outputs and returns the outputs to the environment. An
organisation will be effective so long as it uses its resources in an efficient manner and
continues to contribute to the environment.
According to this approach effectiveness cannot be achieved merely by selecting the right
type of people and training them for the jobs, by keeping them satisfied or by reducing
inter group competition and so on. Rather the system resource approach leads us to
different way of thinking which suggests the analysis of relationship between the
organisation and its environment. Organisations interact with the external environment on
a continuous basis. The system approach suggest that rather than viewing the
organisation's effectiveness as merely the extent to which it attains the goals, it can be
viewed in terms of optimising and maintaining elements of the INPUT-PROCESS-
OUTPUT performance cycle as well as extent to which an organisation adjusts to
feedback from the environment.
Feedback is important in helping the organisation learn from experiences with the
environment, so it can develop means for adjusting to the environmental demands.
According to this approach also, there are several criteria which determine the
effectiveness of the system. WA Bennis, includes the following points in it:
1. The first criteria is the adaptability of the organisation to the system. How able is the
organisation in solving its problems and reacting with the flexibility to changes is a very
important consideration in determining the organisation's effectiveness.
2. The next criteria is that whether the employees of the organisation have a sense of
identity. The employees can identify with the organisation if they have knowledge or
390
insight about the goals of the organisation. It is also very important to know how to
outsiders perceive them.
3. The organisational effectiveness will also depend upon the capacity of the organisation
to test reality. This implies ability to search out, accurately perceive and correctly interpret
properties of the environment.
4. The last criteria determining organisational effectiveness is to check the state of
integration among the subparts of the total organisation such that various parts are not
working at cross purposes.
An organisation should follow the following points in order to be effective:
(i) The organisation should have favourable relations with the environment to ensure
continued availability of inputs and positive acceptance of outputs.
(ii) This approach also emphasises flexibility of response of the organisation to changing
environment; the efficiency with which the transformation takes place in the organisation,
the level of employee job satisfaction and the clarity of communication etc.
(iii) Managers have a responsibility to understand the nature of the environment and to set
the realistic goals accordingly.
(iv) The organisation should be able to successful adapt structure, technologies and
policies with the changing environment to facilitate the achievement of organisational
goals.
Limitations of System Resource Approach: This approach also suffers from the following
limitations :
1. The acquisition of resources ultimately relates to some goals which are difficult to be
measured as explained in the goal attainment approach.
2. The acquisition of resources from the environment is based upon the official goals of
the organisation. The operative goals may sometimes be in conflict with some of the
official goals. In such a case, operative goals may be used for determining effectiveness.
3. The issue of goal vs. resource allocation is in many ways an argument over semantics
because resource acquisition does not just happen,it is related to certain goals.
As such this model is not much different from the Goal Model.
Strategic Constituency Approach: The strategic constituency approach is closely related
with the systems resource approach.
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"The strategic constituency approach may be defined as the application of the technique of
management by exception to systems approach to achieve organisational effectiveness."
In system approach, all the components of the external environment acting independently
have to be carefully regulated to ensure effectiveness. In the strategic constituency
approach, it is the control of the critical constituencies which will automatically bring
about effectiveness in the organisation.
The important constituencies which affect the organisational effectiveness are :
Owners
Managers
Employees
Customers
Suppliers
Government
This approach integrates both the goal approach and systems approach to effectiveness.In
the strategic or the multiple constituency approach.the objectives of all the relevant
constituencies are stated and compared with the actual attainment, just like in the case of
goal approach. Just like the systems approach, the objectives of the constituencies that
supply the necessary organisational resources (Customers, Suppliers, Government etc.) are
dealt with in this approach also.
Limitations: The strategic constituency approach also suffers from some limitations. A
few of the problems faced by this approach are :
(i) The most important problem is finding out the critical constituencies.
(ii) The next problem is to find out the constituencies which are almost critical.
(iii) To give ranking to the critical constituencies in the next problem. It will be very
difficult to assign weights to each critical constituency.
(iv) The next problem is to find out the expectations of the competing group as well as the
common expectations of these groups. The incompatibility among competing expectations
may create further problems.
(v) With the environment changes, the constituencies also keep on changing. What is the
critical today may not be critical tomorrow. In such a case, again the need will arise to
identify new set of critical constituencies and the whole process will start again.
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4. Maximisation or Optimisation Approach : Another conflict in the concept of
organisational effectiveness is that of maximisation vs optimisation. This conflict gives
rise to two clearly separate sets of decision making models : one based upon maximisation
and one based upon optimisation. The first approach is referred to as the "Economic Man
Approach" and the second is referred to as he "Administrative Man Approach" of decision
making. Both these approaches help us to find out to what extent an organisation can
become effective.
(i) Maximisation or The economic man approach.
(ii) Optimisation or Administrative man approach.
(i) Maximisation or the Economic Man Approach: The classical theory of human
behaviour evolved the concept of economic man. They assumed that the economic man
was completely rational and tried to maximise returns by his efforts. The decision which
the economic man takes are based on the following conditions:
(i) The economic man makes his decisions in term of MEANS-ENDS relationships. His
decisions are completely rational as he always identifies clearly the ends of which he
wants to reach and the means which are available for this purpose.
(ii) A complete and consistent system of preferences in there which allows the economic
man to make a choice among alternatives.
(iii) He has full information and knowledge about the alternatives out of which he has to
choose.
(iv) An unlimited number of computations can be performed to determine the best
alternatives.
In business organisations the decisions of the economic man will be directed towards goal
achievement which is, generally, profit maximisation. The situation of maximisation is not
always possible because of two basic problems in maximisation of organisational
effectiveness. These problems are :
Maximisation of effectiveness, even if possible, is not in the best interests of the
organisation rather it will be destructive from long run point of view. If the organisation
goes beyond the optimum point it will endanger itself because of the depletion of its
resource producing environment, or the devaluation of resources or because or generation
393
of a strong organised opposition force in the environment which will weaken the
organisation's bargaining position. Thus, a short term gain may result into long losses.
(ii) Optimisation or Administrative Man Approach : Administrative man approach is in
contrast to the economic man approach. In contrast to perfect rationality of economic man,
this approach emphasises optimisation in decision making which satisfies the
administrative man. That is why, he tries for satisfactory alternatives only.
HERBERT A SIMON who has given the concept to the economic man has described the
following behaviour in decision making process :
1. In choosing among different alternatives, the administrative man attempts to look for
the one which is satisfactory or good enough. Examples of satisfying criteria can be
market share, adequate profits and/or fair price.
2. He recognises the fact that the world he conceives is a drastically simplified model of
the world. He is but, content with this simplification because he believes that the world is
mostly empty.
3. Because he satisfies rather than maximises, he can make his choices without first
determining all possible alternatives and without ascertaining that these are in fact all the
alternatives.
4. Because he treats the world as rather empty. He is able to make decisions with relatively
simply rules of thumb or tricks of the trade or from forces of habit. These techniques do
not make impossible demands upon his capacity for thought.
Optimisation, thus, represents the real situation of decision making behaviour as against
the maximisation which represents very hypothetical position to assist in the analysis of
economic theory. Because of this reason,
people have emphasised this approach both in economic theory as well as in organisation
theory.
Behavioural Approach: According to this approach, the extent to which individual and
organisational goals are integrated affects the degree of organisational effectiveness. The
reason behind this is that because the individuals are the instruments through which
organisational goals are achieved, therefore, it is necessary that the goals of the two are
properly integrated. When organisational goals are shared by all, Mc Gregor calls it
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Integration of goals.'The different types of situations based on the degree of compatability
of individual and group goals may be :
ORGANISATION WITH LOWER EFFECTIVENESS 1. Low Degree of Integration:
When there is a low degree of integration of organisational and individual goals, the
degree of fusion with be low and effectiveness will also below as shown in the following
figure :
ORGANISATION WITH HIGHER EFFECTIVENESS
2. High Degree of Integration : When the goals of the organisation and those of the
individuals are perfectly integrated, there will be high degree of effectiveness because
individuals will co-operate to the maximum for the accomplishment of organisational
goals. The individuals in the organisation may either see their goals being satisfied as a
result of working for the goals of the organisation or perceive their goals being the same as
the goals of the organisation. As a result, closer the individual goals are to the
organisational goals, the greater will be the organisational effectiveness as shown in the
following figure:
3. No Integration: Sometimes, there is no harmony or integration between the individual
and organisational goals as shown in the following figure :
Factors Affecting Effectiveness
The above mentioned approaches adopt different criterion for measuring organisational
effectiveness. That is why, a very important and difficult task for the manager, who is
analysing the organisation, is to identify the factors underlying organisational
effectiveness. The major set of factor or variables that potentially have their influence on
effectiveness are :
1. Organisational Characteristics
2. Environmental Characteristics
3. Employee Characteristics
4. Managerial policies and practices
All those variables are explained in detail as follows : 1. Organisational Characteristics
Organisational characteristics which affect the effectiveness are of two types:
(i) Organisational structure and
(ii) Technology
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(i) Organisational Structure : Organisational structure influences the effectiveness in the
following ways :
(a) Structure in terms of functional specialisation, size, centralisation of decision making
and even formalisation is likely to increase productivity and efficiency.
(b) Job satisfaction of the employees is also related to the organisational structure.
Equitable divison of work and delegation of authority and responsibility and proper
direction are likely to generate the feeling of satisfaction among people at work.
(ii) Technology: Technology and organisational structure are interrelated. The type of
technology determines the nature and structure of organisation. Change of technology will
require a lot of change in the organisation in the form of:
(a) Change in operation e.g. from labour intensive to capital intensive.
(b) Shifting of employees to either different departments within the same factory or to
some other factory of the organisation.
(c) Change in span of control.
(d) Creating of new and winding up of a few departments.
(e) Change in the materials which are used.
(f) Retraining and provision of more knowledge about the latest technology to the
workers.
If the organisation fails to change the structure according to needs of technology to the
workers.
If the organisation fails to change the structure according to needs of technology, it will
never prove to be effective. 2. Environmental Characteristics
Every organisation requires a proper management information system which will monitor
such changes in the environmental setting which have a bearing on organisational
structure. There are three sets of factors which determine the appropriateness of
organisational response to environmental changes. These factors are :
(i) The accuracy with which environmental states are forecast
(ii) Accurate perception of environmental states
(iii) Pragmatism enshrined in organisation system.
Management can receive information regarding the environmental changes from its
economic research division, research and development department, management
396
consultants or legal adviser. These are the experts who will suggests any adjustment which
are to be made in the organisational set up to comply with environmental changes.
The environmental factors which influence the organisation are of two types :
(i) External Environment: The external environment consists of mainly the market, legal
and technical aspects which have a direct bearing on supply of materials and other factors
of production as well as the distribution of finished goods. The external environment is
characterised by complexity, instability and uncertainty.
(ii) Internal Environment: The internal environment of the organisation is deeply
influenced by psycho-sociological factors which determine individual responses to
organisational expectation. If the employees give a adequate and appropriate response to
the programmes and policies undertaken by the organisation, the organisation will be
effective otherwise not. The responses of the employees will depend upon the harmony
existing among the members and the unifromity in perception of individuals and the
organisation.
3. Employee Characteristics
Human factor is the most important factor which influences the goal achievement of
organisations. If there is a close integration among the individual and organisational goals,
the organisation will be highly effective as explained in the behavioural approach to the
effectiveness. If the organisation, without compromising with its fundamental programmes
and policies, could readjust to accomodate legitimate aspirations of the employees, it
should do so to achieve effectiveness. In case there is a conflict between the individual and
the group goals and the issue relates to the very existence of the organisation, the
organisation will have to take a firm stand to deal with the situation. To help in achieving
the effectiveness of the organisation, the employees should have the following
characteristics:
(i) They should be attracted towards and satisfied with the organisation.
(ii) They should be committed to the organisation.
(hi) Their motives, goals and needs should not be in conflict with the organisational goals.
(iv) The employees should be able and knowledgeable.
(v) They should have their role clarity
(vi) The job turnover should be very low, if any. 4. Managerial Policies and Practices
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Managerial policies and practices are the most important factors influencing the
organisational effectiveness. Thes policies and practices include :
(i) Strategic Goal Setting: Goal setting is a very difficult process. Goals should be so
structured that they carry employees, support.While setting the goals, the management
should comprehend the work relating to the achievement of the goal so designed. If not,
such goals should not be set which are unattainable. Unattainable goals demoralise the
workers and easily attainable goals make them lazy and over confident. Therefore, such
goals should be set which utilise the capacity of the employees to the optimum level.
(ii) Resource Acquisition and Utilisation : The efficiency of the organisation depends upon
the acquisition and utilisation of resources. A competent manager will estimate the
requirements of resources and put them to use in different departments in such a way that
every rupee and every human hour are effectively utilised. Efficiency in resource
acquisition and utilisation is related to a proper control and feed back system which has to
be structured and designed by the management. This system will provide policy guidelines
to regulate their activity and relate them to organisational goals and also to themselves in
the event of deviation from the set course of action.
(iii) Leadership and Decision Making: Decision making is a function of dynamic
leadership. Leadership and decision making can go a long way in making the organisation
effective. A successful leader is one whose decisions are directed towards achieving such
organisational goals which are accepted and implemented by the organisational members.
The success of leader will depend upon his style, his competence and the behaviour of the
subordinates.
(iv) Performance Environment: Such practices should be implemented by the management
which result in improving the quality of performance of individuals which will ultimately
be reflected in organisational effectiveness. A few of the practices may be :
(a) Proper employee selection and placement procedure.
(b) Employee training and development.
(c) Designing of tasks for employees keeping in view he resources available and the
training acquired by the employee.
(d) Performance appraisal and award system.
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If the managers in the organisation are adaptive and innovative and welcome new ideas
the organisational adaptability to the changing environment will be higher. Healthy
interaction cna be there with the environment and the organisation and sometimes, the
internal changes can also be made to meet the requirements of the environment. All this
will increase the effectiveness of the organisation.
In addition to the above factors which affect the organisational effectiveness, RENISS
LIKERT has identified three variables which are useful in determining effectiveness over
a period of time. These variables are as explained below :
1. Causal Variables : These factors influence the course of developments within an
organisation. These variables are independent variables which are within the control the
organisation and its management. These include management strategies, structure, styles
skill, policies, procedures etc.
2. Intervening Variables : Causal variables like leadership style and behaviour affect the
intervening variables which are those variables which represent the internal state of the
organisation. Intervening variables include aspects like commitment to the organisational
objectives, morale and motivation of employees, decision making and problem solving
skill,s communication, group cohesiveness etc.
3. End Result (or Output) Variables : These variables reflect the end result of the
organisations which can be accomplishments.: failures or success. Output can be measured
in terms of production, sale, profits etc.
The above set of variables are interrelated with each other as shown by the following
figure:
EFFECTIVENESS THROUGH ADAPTIVE COPING STYLE
The more effective organisations are those that successfully adapt structure, technology
and policies with the changing environment to facilitate the goal attainment. EDGAR
SCHEIN suggested that maintenance of effectiveness made possible through the adaptive
coping style. According to him, "The sequence of activities...process which begins with
some change hi some part of the internal or external environment and end with more
adaptive, dynamic equilibrium for dealing with change."
Adaptive coping cycle is a continuous process. There are six stages in this adaptive coping
cycle stage.
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1. Sensing of Change : The first basic stage in the cycle is the sensing of change in some
part of the internal and external environment. Failure to perceive changes in the
environment or incorrectly perceiving the changes is the major factor for the failure of the
organisation to cope with environment. The organisations should have effective
Management information system for effectively coping with the environment.
2. Importing the Relevant Information : The second stage in the cycle is the import of
relevant information about the change into those parts of the organisation that can act upon
it. However, it is very difficult to decide which imputs are to be taken from the
environement and organisations often fail to perceive the relevant inputs, particularly the
information.
3. Changing Coversion Process : Inputs are taken by the organisation from the
environment for further processing, this is known as the conversion process. The
conversion process should be modified according to environmental requirements as
indicated by the information.
4. Stabilising internal Changes : The fourth stage of the cycle is to stabilise the internal
changes while taking care of undesired changes in related systems which have resulted
from the desired changes. This is necessary because each sub system in the organisation is
dependent upon others and change in one may affect others also but this effect may be
positive or negative.
5. Exporting New Outputs : When the^nternal change is established, the organisation
becomes in a position to export new outputs which are in accordance with the
environmental requirements. Some different and additional attempts may be required for
exporting the new outputs. If the organisation fails to adopt the new methods, it may
become ineffective.
6. Obtaining Feedback : The last stage in the cycle is the obtaining of feedback on the
outcome of the changes for further sensing of the state of the external environment and the
degree of integration of the internal environment. This stage is very much related with the
first stage because the process of sensing may be the same.
Failure at any of these stages may result into ineffectiveness. A successful coping suggests
that all of the stages must be successfully negotiated. Following are the major
organisational conditions for effective coping:
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(i) The organisation must have a proper communication system through which reliable and
valid information may be passed.
(ii) Enough internal flexibility should be there so that changes can be brought and
absorbed by the organisation.
(iii) Successful coping requires integration and commitment to the organisational goals
which provides willingness for change.
(iv) There should be supportive internal climate which can support good communication,
reduction in inflexibility and stimulation of self protection.
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18 ORGANISATIONAL CULTURE
Concept of Organisational Culture
The word "culture" has been derived from the idea of "cultivation", the process of
developing land. When we talk about culture, we are typically refererring to the pattern of
development reflected in a society's system of knowledge, ideology, values, laws and
social norms. Culture varies from one society to another requiring a study of cross-
national and cross-cultural phenomenon within organisations. For exampe, Japanese work
culture is different from American work culture. The Japanese culture encourages
individuals as a part of the team. The organisation is viewed as a family.
The organisational culture is a system of shared beliefs and attitudes that develop within
an organisation and guide the behaviour of its members. It is also known as "corporate
culture". The organisational culture consists of the norms, values and unwritten rules of
conduct of an organisation. According to Charles O' Retlly, "Organisational culture is the
set of assumptions, beliefs, values and norms that are shared by an organisation's
members."
Wilderom and Peterson have suggested seven characteristics of organisation's culture.
These characteristics aggregately capture the essence of an organisation's culture.
1. Risk Taking and Innovation : the degree to which employees are encouraged to be
innovative and risk taking.
2. People Orientation : the degree to which management decisions take into consideration
the effects of outcomes on people of the organisation.
3. Outcome Orientation : the degree to which management focuses on results rather than
on techniques and processes used on achieving those results.
4. Team Orientation : the degree to which various organisational activities are organised
on team basis rather than individual basis.
5. Attention to Detail : the extent to which employees are expected to exhibit analysis and
attention to detail.
6. Stability : the extent to which the organisation emphasizes in maintaining status quo
rather than change.
7. Aggressiveness : the extent to which people in the organisation are aggressive rather
than easygoing.
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A common misconception is that an organisation has a uniform culture. It means that
individuals with different backgrounds or at different levels in the organisation will tend to
describe the organisational culture in similar terms. But in reality, all may not do so to the
same degree. As a result, there can be a dominant culture as well as sub cultures
throughout a typical organisation. Moreover, over the years a number of organisational
cultures have been identified. A few of these are as follows :
1. Dominant Culture and Subcultures : A dominant culture is a set of core values shared
by a majority of the organisation's members. When we talk about organisational culture,
we generally, mean dominant culture only. The dominant culture, is a macro view, that
helps guide the day to day, behaviour of employees.
A sub-culture is a set of values shared by a small minority of organisation's members. Sub-
culture arise as a result of problems or experiences that are shared by members of a
department or unit of the organisation. In the subculture, the core values of the dominant
culture are retained but modified to reflect the individual unit's distinct situation. For
example, the marketing department may have its own sub-culture, the purchase
department may have its own sub-culture depending upon the additional values which are
unique to these departments only.
It is necessary for every organisation to have a dominant culture because if there are only
numerous sub-cultures, the value of organisational culture as an independent variable will
lessen and the concept of SHARED BEHAVIOUR will no longer be effective. Moreover,
if sub-cultures come into conflict with the dominant culture, these will weaken and
undermine the organisation.
But, many successful firms have found that most sub-cultures help the members of a
particular group deal with the specific day to day problems with which they are
confronted. These members may also support many, if not all, of the core values of the
dominant culture.
2. Strong Culture and Weak Culture : Organisational culture can be strong or weak. A
strong culture will have the following features :
(i) Strong values and strong leadership.
(ii) A strong culture is always widely shared. Sharedness refers to the degree to which the
organisation members have the same core values.
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(iii) A strong culture is intensely held. Intensity refers to the degree of commitment of the
organisation's members to the core values.
A strong culture will have a great influence on the behaviour of its members because high
degree of sharedness and intensity create an internal climate of high behavioural control.
A weak culture is just the reverse of strong culture in every aspect
The benefits of strong culture are reduced turnover and positive employee attitude. A
strong culture demonstrates high degree of agreement among members about what the
organisation stands for. Such unanimity of purpose builds cohesiveness, loyalty and
organisational commitment. As a result turnover is low and employees have a positive
attitude towards the organisation the opposite will happen if the culture is weak.
The limitations of strong culture are that it will lead to "group think", collective blind spots
and resistance to change and innovation.
3. Mechanistic and Organic Cultures : In the mechanistic type of culture, the values of
bureaucracy and feudalism are exhibited. People restrict their careers to their own
specialisations only and organisational work is con-
cerned as a system of narrow specialisation. It comprises of a traditional form of
organisation where the authority flows from the top level of the organisation to the lower
levels. Communication channels are also well defined and prescribed.
The main limitation of this method is that though the people are loyal to their departments
but interdepartmental revalry and animosity is always there. This sort of culture resists any
type of change as well as innovations.
Organic culture is just in contrast of mechanistic culture. There are no prescribed
communication channels, departmental boundaries, hierarchies of authority or formal rules
and regulations. In this form of culture more stress is on flexibility, consultation, change
and innovation. There is free flow of commu-nication-both formal and informal. Much
emphasis is laid on team work and task accomplishment. There are no rigid departmental
boundaries and the whole staff understands the problems, threats and opportunities faced
by the organisation. The whole staff works as a team and is willing and prepared to take
appropriate roles to solve the problems.
4. Authoritarian and Participative Cultures : In authoritarian culture, power is centralised
in the leader and all the subordinates are expected to obey the orders strictly. Discipline is
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stressed and any disobedience of orders is severely punished to set an example for the
others. The culture is based on the basic assumption that the leader knows what is good for
the organisation and he or she always acts in the organisation's interests. This type of
culture discourages professionalisation because professionals do not consider themselves
as equals.
The participative culture is based on the assumption that when all the people working in
the organisation participate in the decision making, they are likely to be more committed
to the decisions rather than to those decisions which are imposed on them by one
authoritarian leader. Group problem solving always leads to better decisions because
several minds. Working together are considered better than one mind working alone. If we
discuss something new points and informations emerge, which help in the decision
making.
5. National Culture Vs. Organisational Culture : Organisational culture is always
influenced by the culture of the land, irrespective of the origin of the company. Or in other
words, if there is a clash between the organisational culture and the national culture, the
national culture generally prevails for example, any company operating in India, whether
Indian or foreign observes the local culture. They declare the same holidays, celebrate the
same festivals and organise the same functions and cultural activities as reflected by the
Indian ethos.
But research also indicates that though organisational culture is important in understanding
the behaviour of people at work, national culture is even more important in this regard.
Functions of Culture
Culture performs a number of functions within an organisation. A few of these are as
given below :
1. The first function of culture is that it has a Boundary-Defining role which means that
culture helps to create distinctions between one organisation and others.
2. Culture helps to create a sense of identity for the organisation members.
3. Culture facilitates the generation of commitments to something larger than one's
individual self interest. Culture encourages the members of the organisation to give
priority to organisational interests over and above their personal interests.
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4. Culture enhances the Social System Stability. Culture is also known as the social glue
that helps to hold the organisation together by providing appropriate standards for what
employees should say and do. It provides a list of social do's and don'ts for the employees.
5. Culture finally, serves as a sense making and control mechanism that guides and shapes
the attitudes and behaviour of employees. This function is particularly important in the
study of organisational behaviour. Every organisation has its own set of assumptions,
understanding and implicit rules to guide the day to day behaviour of the employees. The
newcomers will be accepted as full fledged members of the organisation only when they
learn to obey these rules. Conformity to the rules is generally the primary basis for
rewards and promotions.
Thus, culture is beneficial to the organisation as it enhances organisational commitment
and increases the consistency of employee behaviour. Culture is beneficial to the
employee also as it reduces ambiguity. Employees become very clear as to how things are
to be done and what is more important for the organisation.
Dysfunctions of Culture
Impact of culture on organisation's effectiveness is both functional as well as
dysfunctional. Culture can prove to be liability to the organisation also as explained
below:
1. Barrier to Change : Consistency of employee behaviour is an asset to the organisation
when it has a stable environment. When the organisation is dynamic, it will prove to be a
liability as the employees will try to resist changes in the environment. Companies such as
IBM, Xerox and General Motor have very strong cultures which worked well for them in
past, but these strong cultures only become barriers to change when business environment
changes. Therefore, organisations which have strong cultures which proved successful in
the past can lead to failure in future when these cultures do not match with the changing
environmental needs.
2. Barrier to Diversity : Strong cultures put a lot of pressure on the employees to conform
to the accepted values and styles of the organisation. Even the new employees who belong
to different race, religion etc., are expected to conform to the organisation's core culture
values, otherwise they are deemed to be unfit for the organisation. Srong cultures do not
acknowledge the fact that people from different backgrounds bring unique strengths to the
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organisation. Strong culture can also prove to be barrier to diversity when these support
organisation's bias or when these become insensitive to people who are different in one
way or the other.
3. Barrier to Mergers and Acquisitions : Culture can act as barrier to mergers and
acquisitions. Historically financial matters and product synergy alone were considered to
decide which company should acquire which other company or which unit should merge
with which firm. But in the recent years there has been a change in the trend. Cultural
compatibility has become a primary concern while deciding about acquisitions and
mergers. Favourable financial statement or product line are, of course, the initial
attractions at the time of acquisition, but another important factor to be considered is how
well the cultures of the two organisations match with each other.
Impact of Organisational Culture
Organisational culture prescribes some specific modes of behaviour for its members.
These modes of behaviour affect the entire behavioural processes. Such behavioural
processes create impact following:
1. Objective setting : Culture moulds people, and the people are basic building blocks of
the organisation. Therefore, it must reflect the objectives of its members. Thus, profit
maximisation may be objective for one organisation, but the same objective maby be
unworthy, mean, and petty for other organisations.
2. Work ethic : Ethic is concerned with the principles of human conduct. Work ethic in an
organisation is derived from its culture. Therefore, organisational culture detemines the
ethical standards for the organisation as a whole.
3. Motivation : Culture determines the way people approach their jobs. If organisational
culture is geared towards achievement people will find it quite motivating. In its absence,
frustration will take place among the people.
4. Organisational processes: Different processes like planning, decisionmaking
controlling, etc., are determined by the organisational culture because these processes are
carried out by the people in the organisation.
Creating Organisational Culture
Organisational culture must satisfy the members' needs value and match the cultural
requirements of the society in which is the organisation exists. Therefore, organisation has
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to develop a culture which is conducive to both its members and society. For developing
organisational culture, there may be two options to an organisation. First, let the cultural
characteristics of the founders of organisation move among the members. Most of the
small size organization adopt this approach. Thus, an organisation's current customs,
traditions and general way of working become the source of organisational culture.
However, this approach is not very effective for large scale organisations. Second, the
culture of the organisation is prescribed. Where this approach is followed, creation of
organisational culture takes place as a process with distinct steps as shown in the
following figure:
Let us discuss these steps one by one as under :
1. Establishing Values : The first step in creating organisational culture is the
establishment of values for the members of the organisation, values define what is wrong
and what is right. Values of an organisation are established by those who establish the
organisation. Values also determine how organisational activities will be carried out.
Peters and Waterman have described following values followed by excellent companies:
(a) A belief in being the best.
(b) A belief in importance of the details of execution.
(c) A belief in importance of people as individuals.
(d) A belief in superior quality and service.
(e) A belief that most members should be innovative.
(f) A belief in and recognition of the importance of economic growth and profits.
2. Creation of Vision : This step implies that the organisation should create projections
about where it should go in the future and what major challenges are ahead. According to
James C. Collins, a visionary company has the following features:
(a) A visionary company holds a distinctive set of values from which it does not deviate.
(b) A visionary company expresses its core purpose.
(c) It develops a visionary scenario of its future.
A good vision helps the organisation's members in various ways such as :
(a) It helps in creation of common identity.
(b) It inspires them.
(c) It creates competitiveness, originality and uniqueness.
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(d) It fosters long term thinking.
3. Implementing Values and Vision : If the values and vision are not implemented, they
are useless. For implementing values and vision, the company can undertake the following
activities :
(a) A written statement containing its values and vision should be prepared by the
company.
(b) The organisation should design its structure that facilitates employees to take those
actions envisaged by values and vision.
(c) In selection of employees, care should be taken that their values match organisational
values.
(d) Reward system should be such which encourages employees to engage in behaviours
desired by organisational values and vision.
4. Socialisation of Employees : In order to ensure that culture of an organisation is adopted
by its employees, socialisation of employees is required. It is a process of indoctrinating
the new employees into the organisation culture. It socialises the new employees and
moulds them to accept its norms and standards.lt is a process by which employees are able
to understand the basic value, norms, customs of the organisation.
Socialisation : Familiarisation with Organisation Culture
Socialisation is a process of adaptation by which employees are able to understand
customs, norms and values for becoming the accepted members of organisation and
assuming roles provided. Socialisation takes place when new employees attempt to learn
values and norms that are part of the organisational culture. Here, we are concerned with
socialisation of new employees. Process of Socialisation
In general, a process consists of various related activities with definite beginning and end.
Since socialisation is an adaptive process, it consists of various activities, known as stage,
Maanen and Schein have conceptualised socialisation process is made up of three stages:
pre-arrival, encounter, and metamorphosis. These stages are presented in Figure.
1. Pre-arrival Stage : Pre-arrival stage of socialisation recognises that every individual
arrives in the organisation with a set of values, norms and expections. These cover both
the work to be done and the organisation. For example, in professional education, such as
management, the students acquire certain ideas regarding the nature of their future job and
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organisation. These ideas are supplemented from what they learn from their friends and
other acquaintances. At the recruitment stage, most of the organisations give job previews
which help the prospective employees to learn more about the job and the organisation. To
the extent these job previews are realistic, these create more realistic expectations.
2. Encounter Stage: Upon entry into the organisation, the new employee enters the
encounter stage. Here, the individual confronts the realities of the situation in terms of his
job and the job performance environment, such as superiors, peers, subordinates, and
organisational culture. If the expectations of the individual are in tune with the
organisational realities, he adapts organisational culture quickly. However, where the
expectations and realities differ, the new employee must undergo socialisation that will
detach him from his previous assumptions and replace them with another set that the
organisation deems necessary. In other extreme, the new employee may become totaly
disillusioned with the realities of his job and resign.
3. Metamorphosis Stage : This is the completion phase of socialisation process in which
the new employee works out any problem discovered during the encounter stage. He
reconciles with the values and norms of the organisation and brings necessary changes in
his role to suit them. He tries to internalise these values and norms. The new employee
feels accepted by his peers as a trusted and valued individual and feels self-confident that
he has the competence to do his job effectively. The completion of socialisation process is
indicated by the following features :
1. Feeling of competence in the new employee for the job,
2. Feeling of commitment to the organisation, and
3. Feeling of confident about himself. Methods of Socialisation with Organisation
Organisational norms and values are transmitted in employees in a number of ways, the
more important being stories, rituals material symbols, and language.
Learning organisational norms and values through strories includes circulation of informal
and oral narration of events about the organisation, its founder, rules in practice, and other
organisational practices. These stories reflect the true perspective of the organisation
rather than what has been written in organisational documents. Boje has observed that
these stories anchor the present in the past and provide explanation and legitimacy for
current practices.
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1. Rituals: Rituals are repetitive sequences of activities that express and reinforce the key
values of the organisation, what goals are most important, which people are important, and
which are expendable. For example, many organisations have rituals, such as organising
functions to honour top performers which convey that high performance is held as
extremely important.
2. Meterial Symbols: Various material symbols used by the organisation convey specific
meanings. For example, status of a person in the organisation can be distinguished on the
basis of various facilities provided to him at the workplace. It is quite common to provide
rooms of different sizes, tables of different sizes, name plates of different sizes, etc.
However in today's context, many organisations have emphasised the concept of common
culture in which all employees, irrespective of their category, wear the similar dress, or
take their lunch in the same canteen, and so on. For example, Maruti Udyog Limited has
adopted this practice. Such a practice conveys the feeling of equality which generates
commitment.
3. Language: Many organisations use language as a way to identify members of a culture
or subculture. By learning this language, members attest to their acceptance of the culture
and, in so doing help to preserve it. Organisations, over time, often develop unique terms
to describe equipment, offices, key personnel, suppliers, customers, etc. that relate to its
business. Once assimilated by the new employees, this terminology acts as a ommon
denominator that unites members of a given culture.
Socialisation Options
There are several options for socialising new employees. These are formal and informal,
individual and collective, fixed and variable, serial and random, investiture and divestiture.
Let us give a brief discussion of these.
1. Formal and Informal : Formal socialisation occurs when a new employee learns about
the organisation and its practices in a programme conducted by the organisation at a place
away from the employee's workplace. This programme is usually referred to as orientation
programme. In informal socialisation, the new employee is directly placed at his work and
he learns about the organisation and its practices through his peers, superiors, and subor-
dinates.
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2. Individual and Collective : In individual socialisation, each new employee is socialised
individually. This practice is followed mostly in case of professional offices. In collective
socialisation, new employees are socialised in a group. In an orientation programme,
generally, collective socialisation is adopted.
3. Fixed and Variable: Fixed and variable socialisation refers to the time schedule in which
newcomers make the transition from outsider to insider. A fixed schedule establishes a
standardised stages of transtion. It may include putting a newcomer as a trainee or as a
probationer for a specified period of time. After expiry of this period, he is inducted into
the organisation provided his performance is satisfactory. In variable schedule, no time
period is fixed for transition but it depends on the performance of the newcomer.
4. Serial and Random : In serial socialisation, the trainer who trains and encourages
newcomers acts as a role model, and the newcomers try to internalise his behaviour. In
apprenticeship and mentoring, role model concept is used. In random socialisation, role
model is deliberately withheld and newcomers are left free on their own to figure things
out.
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19 POWER AND POLITICS
Introduction
Till recently, power and politics were treated as dirty words and they were not considered
worthy of discussion in the study of organisational behaviour. People generally, found it
difficult to talk about power. The famous saying was that "the people who have the power
deny it, people who want it try not to appear to be seeking it and those who are getting it
are secretive about how they got it." But now the scenario has changed. Both the words
have acquired respectability because of their significant impact on the behaviour of the
people in the organisations. That is why, nowadays, every discussion on organisational
behaviour will have "power and politics"as an important subject. In this chapter, power,
and politics are discussed separately and in detail. Meaning and Definition of Power
The term power is generally taken to be the capacity of a person to exert influence over
others. If a person has power, it means he is able to influence the behaviour of other
individuals. The essence of power lies in having control over the behaviour of others. The
traditional concept of power was that "Power corrupts and absolute power corrupts
absolutely." But now this concept has changed. Power is not considered bad always.
Power has become a natural process in any group or organisation. A few definitions of
power are as given below :
According to the famous sociologist MAX WEBER, "Power is the probability that one
actor within a social relationship will be in a position to carry out his own will despite
resistance."
According to PFEFFER, "Power is the potential ability to influence behaviour to change
the course of events, to overcome resistance and to get people to do things that they would
not otherwise do."
According to WHITE AND BENDAR, "Power is the ability to influence people or things,
usually obtained through the control of important resources."
A very understandable definition of power is that power is to be treated as a capacity that
A has to influence the behaviour of B, so that B does something he or she would not
otherwise do. This definition implies :
(i) A potential that need not be actualised to be effective
(ii) A dependent relationship and
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(iii) the assumption that B has some discretion over his or her own behaviour.
A manager's power may be measured in terms of his ability to :
(i) give rewards
(ii) promise rewards
(iii) threaten to withdraw current rewards
(iv) withdraw current rewards
(v) threaten punishment and
(vi) punish Sources of Power
A person in an organisational setting can have power from two sources. These are
interpersonal sources and organisationally based structural sources asunder:
These sources are explained in detail as follows :
A. Inter Personal Sources : Inter personal sources of power are based upon the inter
personal relationships between the manager and the subordinate. FRENCH and RAVEN
had identified five general bases of power which are based upon interpersonal relationship.
These are :
1. Reward Power: The extent of reward power depends upon the extent to which one has
control over rewards that are valued by another. The greater perceived value of such
rewards, greater will be the power. People comply with the wishes or directives of others
because doing so produces positive benefits. These rewards can be extrinsic in nature with
tangible values or these can be subjective and intrinsic rewards such as recognition and
praise. In organisational contexts the different forms of rewards can be better pay,
promotions, favourable performance appraisal, preferred work shift, etc.
2. Coercive Power: The opposite of reward power is the coercive power; which is the
ability to influence punishment. Fear of punishment may make the subordinate execute the
instructions of the boss. Coercive power reflects the extent to which a manager can deny
desired rewards or administer punishment .to control other people. The more punishments
a manager can impose upon others, the stronger is his coercive power. The coercive power
may consist of reprimamiing, demotion or firing the subordinates for unsatisfactory
performance. This power is seldom exercised because of the cost involved in the form of
employee resentment and hostility.
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3. Expert Power : Expert power is based on the perception or belief that the influences has
some relevant expertise or special knowledge that others do not have. It is more of a
personal power rather than organisational power. If the subordinates view their leaders as
competent, they would follow their leader. For example, we believe in our doctor's or tax
consultant's advice because we believe in their knowledge and competence in these
specified areas. In organisations, because of technological developments, jobs have
become more specialised. As a result, employees become more dependent on experts to
achieve their goals.
4. LegitimatePower : This power is also known as 'positional power' because of authority
inherent in the position. It represents the power a person receives as a result of his position
in the formal hierarchy of the organisation. It exists when an influence acknowledge that
the influencer is lawfully entitled to exert influence. The influence is under obligation to
accept this power. Legitimate powers include coercive and reward powers, though these
powers are broader than the power to coerce and reward.
5. Referent Power : This power is known as charismatic power and is based upon the
attraction exerted by one individual over another. This power develops out of admiration
of another and a desire to be like that person. This power is more of a personal nature than
the positional nature because this power is not acquired because of a position but because
of personal charisma so that the followers would like to associate themselves with the
leader. The stronger the association, the stronger is the power. In simple words, the
subordinate would obey his senior, because he wants to behave in the same manner as the
superior and the subordinate identifies himself with the superior. This power generally
extends to a film stars and celebrities whose followers and fans follow them in whatever
they do.
B. Structural sources of Power: In addition to the interpersonal powers, there is another
dimension of power. The dimension involves structural sources within the organisation
such as :
1. Knowledge : Knowledge is a very important source of power. The individuals or groups
who possess critical knowledge are assumed to be very powerful people in the
organisation. People who are in a position to control the information itself or the flow of
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information about current operations or future events and plans have enormous power to
influence the behaviour others.
2. Resources : Organisations cannot survive without the adequate availability of all the
necessary resources. These resources include man, money, materials, equipment etc. Any
person who can provide resources that are critical in the organisation acquire such power.
The old saying that "he who has the gold makes the rules" sums up the idea that resources
are power.
3. Decision Making : Another source of power is the authority to make decisions and/or
the ability to influence the decision makers. Of course, the final decision maker has the
ultimate power, but sometimes the real power may be with those who strongly influence
the decision maker. For example, if the leader takes the decisions on the advice of a task
force, the task force holds the decision making power in a very subtle way.
Bacharach and Lawler feel that while explaining the interpersonal sources of power,
French and Raven have confused the bases of power with sources of power which has led
to overlapping. For proper understanding it is essential to distinguish between the source
and bases of power. The term "source of power"
denotes where the power holder gets his power base i.e.how a person happens to control
his base of power. There are four sources of powers :
1. POSITION POWER because of position in the organisation.
2. PERSONAL POWER i.e. influence attributed to one' personal characteristics.
3. EXPERT POWER i.e. control over specialised information. Those who have expertise
in terms of specialised information and skills can use it to influence others.
4. OPPORTUNITY POWER i.e. the opportunity to receive and obstruct information. The
power holder is in the right place at the right time to have opportunity power.
Faces of Power
David McClelland identifies two faces of power viz. negative and positive.
1. Negative Face : The negative face of power is usually expressed in terms of dominance-
submission. Or in other words, "I win, you lose." Leadership which is based on negative
face of power treats people as pawns to be used or sacrificed as the need arises. This face
of power is self defeating. People who are treated like pawns will either resist the
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leadership or they will become passive. In both ways, their value to the organisation
becomes negligible.
2. Positive Face : The positive face of power involves exerting influence on behalf of
others rather than over others. The leaders who exercise their power positively encourage
their subordinates to develop the strength and the competence they need to succeed as
human beings as well as members of the organisation.
McClelland and David H. Bumham found that successful managers have a greater need to
influence others for the benefit of the organisation than for self aggrandisement. Managers
who use their power positively will be more effective than those who use it in a negative
way and just to dominate the others. McClelland concluded that good managers exercise
power with restraint on behalf of others. Such managers improve the morale of the
subordinates by encouraging team spirit, rewarding the achievements and supporting the
subordinates. Acquisition of Power
Every manager has a two dimensional power base. The first is the positional power by
virtue of the status in the organisation and the personal power because of personal
characteristics and knowledge. A successful manager is that who has built up high
positional as well as personal power base. The factors which influence the acquisition of
power are as explained below.
A. Acquisition of Positional Power : Whetton and Cameron have proposed some of the
factors for building and enhancing positional power. These factors are:
1. Centrality: Centrality refers to those activities that are most central to the work flow of
the organisation. The manager will acquire positional power if the information filters
through him. This will give him some say in the work of many sub units. For example, the
finance manager approves all the expenses and the payments to all the departments of the
organisation. This gives him an extra power base to affect the behaviour of other
departments.
2. Scarcity : When resources in the organisation are scarce, then there will be a struggle in
the different departments for acquiring these resources. Whosever, is the winner of the
struggle, will acquire power. Power will become apparent only when the resources are
scarce. When the there is abundance in the organisation of different types of resources.
Scarcity will not be a factor to judge the power. Salanick and Pfeffer have concluded from
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a study conducted in a university that the power of academic departments was associated
with their ability to obtain funds from research grants and other outside resources and this
was more critical to their power than was the number of undergraduates taught of
department
3. Uncertainty: Uncertainty about future events can play havoc with the plans of different
departments. Uncertainty may relate to reduction in supply of resources, fall in demand of
company's products,change in government policies etc. The managers who are able to
cope with such uncertainty and who can gain from such uncertainty can acquire power.
Accarding to Kanter, "The most power goes to those people in those functions that provide
greater control over what the organisation finds currently problematic, sales and marketing
people when markets are competitive, production experts when materials are scarce and
demand is high, personnel or labour relations specialists when labour is important,
lawyers, lobbyists and external relations specialists when government regulations impinge,
finance and accounting executives when business is bad and money tight. There is a
turning to those elements of the system that seem to have the power to create more
certainty in the face of depending and to generate a more advantageous position for the
organisation."
4. Substitutability : The more valuable a person is to the organisation, the greater power he
holds, There are some people in the organisation, whose contributions are so much, that
they become indispensable. This indispensability may be the result of their speciality,
expertise and knowledge which cannot be substituted easily by others. Any change in the
marketability of such speciality will change the power base as well. Even though
philosophy says that "Nobody is indispensable," but in practice, some people are
comparatively more indispensable than others.
B. Acquisition of Personal Power: Personal power can be acquired and enhanced by
enhancing individual traits. The following factors may be considered in this context:
1. Expertise : A manager can enhance or acquire personal power through the expertise.
Expertise can be gained by possession of special knowledge which can be gained by
education, training and experience. Expertise can also be gained by information gained by
having access to data and/or people.
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Power, though can be acquired through expertise, but to maintain it or to enhance it the
managers must make sure that there is a critical need in the organisation for their
knowledge and skills that cannot be conveniently obtained elsewhere.
2. Referent Power : Referent power contributes to a large extent to the personal power of
the manager. The manager should have a charisma that attracts the subordinates to him
and make them follow him in every way. Pleasant personality characteristics, agreeable
behaviour patterns and attractive postures enhance referent power.
3. Hard Work : A person who is hard working and sincere in his efforts will have more
personal power because of this expertise and reference. A hard working person is
perceived to know more about the job and thus, most sought out for advice. A sincere
person is always respected by the subordinates. Subordinates, generally, depend upon a
hard working and sincere manager.
Tactics to Gain Power
There are several tactics which individuals and groups can use to gain power in an
organisation. Recent research indicates that these are standardised ways by which power
holders attempt to get what they want. Power tactics are used by the employees to translate
their power bases into specific actions. The important tactics used by people to gain power
are as discussed below :
1. Bargaining: Bargaining is the use of negotiations through the exchange of benefits or
favours. The party having greater bargaining power is able to get more benefits than the
sacrifices made. Collective bargaining agreements between labour and management are
the result of negotiations.
2. Friendliness : A person gain power over another person by the use of flattery, creation
of goodwill, acting humble and being friendly prior to making a request.
3. Coalition: Coalition is the temporary alliance of two or more individuals or groups who
combine their efforts and energy for the common goal. By forming a coalition, the
members are able to increase their power over groups not in their coalition. Coalitions are
generally used in organisations for having influence on setting of goals and distribution of
benefits to the constituents.
4. Competition : Due to the scarcity of the resources in the organisation, various groups
compete with each other to have a greater share of such resources. For this, they try to
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influence the criteria used as the basis of resource distribution in the form of funds, space
support staff etc. Each group argues for those criteria which are likely to fetch it more
power.
5. Cooptation : Under the scheme of cooptation a group gives some of its important
positions of members of the other groups or include them in its policy making committee.
Hence the criticism and threats from those other groups are blunted. For example
corporations generally include representatives of the financial institutions in their board of
directors, in order to maintain stable relationships with the financial institutions.
6. Reason: A person can use reasoning to gain power over others. Reasoning consists of
use of facts and data to make a logical or rational presentation of ideas.
7. Assertiveness: Assertiveness is the use of a direct and forceful approach. The manager
may demand strict compliance with requests repeating orders, ordering individuals to do
what is asked and pointing out the rules require compliance.
8. Higher Authority : Some managers may gain the support of higher levels in the
organisation to back up their requests to their subordinates.
9. Sanctions : Sanctions consists of traditional reward and punishment method. A person
can gain power over another person by preventing or promising a pay rise, by demoting or
promoting a person or by threatening to give an unsatisfactory performance appraisal.
10. Pressure : Pressure tactics are a part of power struggle in modern organisations. It is a
hostile method of gaining power. For example, the trade unions may threaten strikes if
their demands are not met by the management. On the other hand, management may
threaten a lock out in the factory,if the trade unions do not accept its terms.
Power Relationship
Research has proved that power involves a reciprocal relationship between: Agent and the
Target. The target has a much influence on the agent as the agent has on the target. For
clearly understanding the power relationship we must examine the characteristics of:
1. The Agent (The leader)
2. The Target (The subordinate). Characteristics of the Agent
The person who is exercising the power, should have the following characteristics:
1. Sensitive: A good leader should be sensitive to what others consider to be legitimate
behaviour in acquiring and using power.
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2. Good Institutive Understanding : A good agent should have proper intuitive
understanding of the various types of power and methods of influence. He should know
what types of powers are easiest to develop with different types of people.
3. Establishes Career Goals : A good manager establishes career goals and seeks
managerial position that allow him to successfully develop and use power. He should look
for jobs that use his background and skills to the maximum.
4. Develop More Power: A successful agent of authority uses his formal authority, his
resources and power to develop more power for himself.
5. Power Oriented Behaviour : A effective agent engages in power oriented behaviour in
ways that the empowered by maturity and self control. Characteristics of the Target
The Power relationship can be better understood by examining some of the characteristics
of the target. Following characteristics are identified as the major ones :
1. Dependency: The greater the targets dependency on their relationship to agents, the
more the targets are influenced. The examples of this are; Where a target cannot escape a
relationship, perceives no alternatives or values the agents rewards as unique etc.
2. Uncertainty: The more uncertain a person is about the correctness or appropriateness of
a behaviour, the more likely he is to be influenced to change the behaviour.
3.Personality: Personality characteristics and the ability to influence are closely associated
with each other. In some cases, this association is obvious e.g. people who cannot tolerate
ambiguity or who are highly anxious are more susceptible to influence an those with high
needs for affiliation are more susceptible to group influence. But in some cases, the
association is not very obvious e.£. the relationship between self esteem and the ability to
influence can be both positive and negative.
4. Intelligence: There is no simple relationship between intelligence and the ability to
influence. Highly intelligent people may be more willing to learn on one hand, but because
they also tend to be high in self esteem, they may also be more resistant to influence on the
other hand.
5. Age: Social psychologists have generally concluded that susceptibility to influence
increases in young children upto about the age of eight or nine and then decreases with age
until adolescence when it levels off.
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6. Gender : Traditionally, it was acknowledged that women were more likely to conform
to influence than men because of the way they were raised. But this evidence is now
changing. As women's and society's view of the role of women are changing, there is less
of a distinction on the basis of gender.
7. Culture : The cultural values of a society have a tremendous impact on the influence
ability of its people. For example, some cultures such as the western emphasis
individuality, dissent and diversity which tend to decrease the ability to influence. While
others such as many in Asia, emphasise cohesiveness, agreement and uniformity, which
would tend to promote influenceability.
The above mentioned individual differences in targets greatly complicate the effective use
of power and point up the need for contingency models of power.
POLITICS
Power and politics are closely related concepts. A very popular view of organisational
politics is how one can pragmatically get ahead in an organisation. In simple words,
politics refers to the way people gain and use power in organisation. When employees in
organisations convert their power in action, they are described as being engaged in
politics. A few important definitions of politics are given below :
According to PFIFFNER and SHERWOOD, "Politicis is endemic to every organisation,
regardless of size, function or character or ownership. Further more, it is to be found in
every level of the hierarchy and it intensifies as the stake become more important and the
area of decision possibilities greater."
According to TUSHMAN, "Politics refers to the structure and process of the use of
authority and power to affect definition of goals, direction and the other major parameters
of the organisation. Decisions are not made in a rational way but rather through
compromise, accommodation and bargaining."
According to FARRELL AND PETERSON, "Politics in an organisation refers to those
activities that are not regarded as part of one's formal role in the organisation, but that
influence or attempt to influence the distribution of advantages and disadvantages within
the organisation."
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Thus, politics refers to those activities in the organisations that are not required as part of
one's formal role in the organisation but that influence, or attempt to influence, the
distribution of advantages and disadvantages within the organisations.
From the above definitions, two important points emerger :
(i) Political behaviour is outside one's specified job requirements and
(ii) It generates efforts to influence the goals, criteria or processes used for decision
making that will result in the distribution of advantages and disadvantages within the
organisation.
Thus, political behaviour includes activities such as the following:
(i) Withholding key information from decision makers
(ii) Whistle blowing
(iii) Spreading rumours
(iv) Leaking confidential information about organisational activities
(v) Entering into coalitions
(vi) Exchanging favours for mutual benefit
(vii) Lobbying on behalf of or agains a particular individual or decision
(viii) Horse trading
(ix) Ingenious compromises
(x) Trade offs and so on. Characteristics of Organisational Politics
The broad features organisational politics are as follows:
1. Organisational politics involves the use of some kind authority, power or pressure over
other person or groups, Rewards and punishment are commonly used for this purpose.
2. Basically, political behaviour is self serving in nature. Attempts are made to use
organisational resources for personal benefits or to give some benefits to others.
3. Political behaviour is outside one's specified job requirements. It involves getting things
accomplished that are not formally recognised practices or procedures.
4. Political decisions may not be rational from the organisational point of view. They are
usually made to acquire more power.
Causes of Political Behaviour
The basic reason for political behaviour is to overcome resistance or opposition. If there is
no opposition, there is no need for politics. Modern organisations are, in fact, fertile place
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for politics to thrive. Individuals resort to politics in an organisations because of the
following reasons :
1. Scarcity of Resources: Most of the organisations have limited resources. Any person or
unit, who has control over allocation of scarce resources yields power. In the process of
trying to gain control; political behaviours are exhibited. Political influence plays an
important role in how these sources will be distributed to various departments rather than
rational needs.
2. Non-Programmed Decisions : Non-programmed decisions involve unique problems
which cannot be solved by known and structured methods and procedures. These unique
problems may involve many factors and variables that are ambiguous in nature, leaving
room for political maneuvering by those who have the knowledge and techniques to
successfully confront and solve such complex problems. Ambiguous decisions, decisions
on which there is lack of agreement and uncertain, long range strategic decisions lead to
more politics than routine decisions.
3. Ambiguous Goals: The more ambiguous and complex the organisational goals become,
the more politics there will be. But when the goals are clearly defined and each member of
the organisation is aware of these goals and is also aware of his role in contributing
towards achievement of such goals then there are limited grounds for political influences.
4. Technology and External Environment: The generally acceptable opinion is that the
more complex the internal technology of the organisation, the more politics there will be.
Similarly, politics will be more if external environment is highly volatile.
5. Organisational Change : Whenever there are changes in the organisational structure or
rearrangement of organisation policies, people in the powerful positions have the
opportunity to play political games. These changes may included a reorganisation or a
planned organisation development effort or even an unplanned change brought about by
external forces.
6. Lust for Power : Another reason for politics in the organisation is people's lust for
power. People want to acquire and enhance power in the organisations. They aim at
increasing the area of their influence. Conflict between line and staff elements in a typical
example in this regard.
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7. Discretionary Authority: There are some positions in the organisation which have
discretionary powers to be used in case of emergency. The use of power depends upon the
sole judgement of the position holder. That is why, people indulge in politics to grab such
positions or to be very close to such a position holder.
8. Saturation in Career : To rise in one's career, a person needs competence. But when a
person does not have the requisite competence, he cannot rise above a certain level. In
such cases, he may resort to political behaviour to move up in the organisational hierarchy.
This type of behaviour is a universal phenomenon in modern organisations.
9. Organisational Culture: Organisational culture characterised by low trust, role
ambiguity, inequitable performance evaluation systems, reward systems, communication
methods and participative decision making processes will create opportunities for political
activities to breed.
10. Psychological Factors : Employees who are authoritarian, have a high risking
propensity or possess an external locus of control exhibit political behaviour with less
regard for the consequences to the organisation. Additionally, an individual's investment
in the organisation in terms of expectations of increased future benefits, alternative job
opportunities and expectations of future success will influence the degree to which he or
she will pursue, illegitimate means of political action.
Negative Aspects of Politics
The distribution, allocation and maintenance of power, in the organisation is determined
by politics. Politics decides who gets what, when and how. But politics has certain
dysfunctional aspects also on the working of the organisation which are described below :
1. Self Interest: Political behaviour is, generally, motivated and guided by self interests. If
there is conflict between self interests and organisational goals, and self interest obstructs
the organisational goals, politics is said to have negative effects. For example, if the
personnel manager, manipulates the selection process, to point somebody who is not
competent enough, the impact on the organisation will be dysfunctional. But if an
individual behaves in a way that is compatible with the organisational goals, to promote
his self interest, such behaviour is functional.
2. Dysfunctional Aspects of Power Politics on Employees : Power politics may weaken
morale, demotivate the employees, victims and victors may be created and energy and
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time may be frittered away on planning, attacks and counter attacks instead of
concentrating on task accomplishments.
3. Organisational Conflicts : Organisational politics may generate organisational conflicts
due to which organisational time, efforts and energy may be wasted. This will affect the
organisational effectiveness adversely.
4. Effect on Managers: Research proves that those managers who engage in more political
activity are relatively more successful in terms of promotions but also relatively less
effective in terms of subordinate satisfaction and commitment and the performance of
their unit.
5. Inequitable Distribution of Power: Some individuals may be able to acquire a major
portion of the organisational power, because of organisational politics. This power may be
used to promote self interest, exploit other people and displace organisational goals.
Techniques of Organisational Politics
A more successful politician is more likely to succeed in his personal and political
ambitions than those who are politically naive or incompetent. Even though the techniques
and strategies of politics vary with the situation at hand, there are certain guidelines which
can be adopted to gain and use political power. Some of these techniques are as explained
below :
1. Form the Right Alliances : The more people you have on your side, the more politically
powerful you are. But only numbers are not sufficient, to become a political power, a
person should have alliances with right people. A political person will always like to have
an alliance with a person who is rising up the corporate ladder, rather than a person whose
career is on the decline. It is always necessary and useful to the allies with upper level
management or with people who are close to the powerful people. Schools, hospitals and
other civic organisations always put influential persons on their board of directors. Or
where promotions are solely at the discretion of a particular powerful person, a favourable
association with that person is highly beneficial.
2. Expect Reciprocal Favours: A good value embibed in a human beings from the early
stages is that it is good to help others and do them favours. It is also natural to assume that
these favours will be returned at the time of need. A good political person, recognises
those members of the organisation who will be more powerful in the future and helps them
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in any way he can so that in future, if need arises, they will also reciprocate the favour by
coming to his assistance.
3. Try to be Popular : The general human tendency is that if you complement and
appreciate another person, he will think very positively towards you. A good political
person talks good of everybody especially behind their backs. All this make the person
extensively popular. Whenever such person is in need for support, everybody will like to
assist him.
4. Be Persuasive Without Being Arrogant : A person should be persuasive in a friendly
sort of way. Politics and arrogance never go together. Forceful persuasion when made
eloquently ishighly effective in influencing others as well as gaining respect for
intelligence and ability. The returns can be very substantial in this case.
5. Build Up a Preferred Image : The image of a person consists of his personality,
appearance and style. A preferred image consists of being well dressed, having a charming
and pleasant smile, being attentive, honest, sociable and loyal to the organisational
interests. A preferred image also consists of being competent and self assured.
6. Control the Agenda of the Meetings : A politically powerful person can control the
agenda of the meetings. Decisions can be stalled by removing items from the agendas or
they can be mani Dulated by placing them in particular places on the agenda. The items at
the beginning of the agenda are generally, discussed in greater detail and in broader
consideration of the agenda are generally, discussed in greater detail and in broader
consideration of empirical information as compared to the items which are placed at the
end of the agenda.
7. Control the Decision Criteria : People who can control the decision criteria can control
the decisions as well. In any decision making situation, multiple measures are available for
assessing alternatives. Rather than insisting upon one's perferred alternative, a much more
effective political strategy is to suggest that the decision should be based upon the criteria
favouring the preferred alternative.
8. Control Information: One technique of political behaviour is to control the availability
of critical information to others. The more critical the information and fewer the people
who have it, the stronger the power base of those who possess such information. Salary
information, quality reports, confidential reports are some of the items of information
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which are frequently treated as important information in order to increase the political
power of those possessing the information.
9. Control Communication Channels : People who have some control over lines of
communication can yield considerable political power. People may be in lower level of
hierarchy, but they may have political power because of this factor. For example, the
secretaries of the important people in the organisation are considered very powerful
because they have access to their bosses. The secretary may decide who sees the boss and
who doesn't at a given time. This power may be used for favouring certain people and
frustrating the others.
10. Use Outside Experts : Individuals can influence the outcomes of the decisions by
carefully selecting the right outside expert and providing a forum for that individual to
express an opinion. The use of outside experts as a political strategy is particularly obvious
in jury trials, where the names and reputation of experts are more important than the
substance of their testimony.
Functions of Organisational Politics
Organisational politics helps the people in the organisations to adopt to the organisational
goals and helps the organisation to succeed in ways that the formal structure alone cannot
guarantee. Organisational politics adds life to the otherwise lifeless skelton of the
organisation. Some important functions of organisational politics are:
1. To Overcome Employees Inadequacies : Organisational politics provides a mechanism
for circumventing the inadequacies in the employees and getting the jobs done. These
inadequacies generally relate to mismatching of people and positions in the organisations.
2. To Cope with Change : A major problem for the organisations is to cope with changes
in the environment and technology. Organisational politics can help in identifying such
required problems and move ambitious, problem solving managers into the crisis before
minor problems become catastrophes.
3. To channel Personnel Contracts. Managers need to influence the individuals working
throughout the organisation, though in larger organisations, it becomes very difficult to
know each and every person working in it. This necessary access is provided by the
political network.
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4. To Substitute for Formal Authority : Managers may use political behaviour to
maintain operations and achieve task continuity in circumstances where the failure of
formal authority may otherwise cause problems.
5. To Act in Darwinian Way: The system of politics can act in Darwinian way to ensure
that the strongest members of the organisation are brought into positions of leadership.
6. Execution of Decisions : The system of politics can pave the path for the execution of
decisions.
7. To Ensure full Debate : The system of politics should ensure that all sides of an issue
are fully debated, whereas the other systems of influence tend to promote only one.
Managing Political Behaviour
The political behaviour in organisations is impossible to be eliminated in toto. Therefore,
efforts should be made to restrict it in such a manner as to limit its dysfunctional aspects.
Politics when carried to the extreme can have lots of negative aspects. Some of the steps
that can be taken for constraining political activities are summarised as follows :
1. Ethical and Positive Role Model: If the manager himself plays political games, he
conveys a message to the subordinates, that such behaviour is acceptable. That is why, top
management should provide a positive and ethical role model themselves. They should
make it clear to subordinates that such political games will not be accepted which are
detrimental to employees' morale and organisational climate. Lower level people will
accept or ignore politics only if the top management does so.
2. Open and Honest Communication : A person becomes politically powerful if the
controls the confidential information. If the communication system in the organisation is
open and honest, political behaviour can be constrained. If necessary information is
available to all the people regarding the availability and allocation of scarce resources,
then it would not be necessary for people to engage in political behaviour to acquire or
control the information.
3. Elimination or Reduction of Uncertainty : Uncertainty in the organisations may
provide the basis for political plays. It the overall objectives of the organisation and the
individuals goals are ambiguous and changes are not made known to the people, then there
will be more politics in the organisation. Participative decision making and provision of all
the relevant information to the subordinates at the appropriate time will reduce the
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necessity of political game play. Employees must be clear about the organisational as well
as their individual goals.
4. Study the Political Behaviour: The top management should make a study of the
psychology and philosophy of the political behaviour prevalent in their organisation. This
knowledge will help the top management in constraining the political behaviour when it
occurs as well as anticipating it and taking appropriate steps to avoid it from occuring.
Thus, management can minimise the effects of political behaviour by being aware of the
causes and techniques of such behaviour.
Ethics of Power and Politics
A number of ethical issues are related to the concepts of power and politics. Power is
considered to be non-political in use when it remains within the boundaries of formal
authority, organisational policies and procedures and when it is directed towards ends that
are sanctioned by the organisation. Either the misuse of power for personal benefits or the
power which violates the codes of organisational conduct, that can be considered as
political requiring consideration of ethical standards.
Ethics is probably the most difficult concept to define. The idea of ethics or morality is a
very relative term which is intangible in nature. In general, the determination of ethical
conduct is subjective and vague varying among different cultures and different
environmental conditions. These are generally defined with reference to the values
established by a particular society.
Velasquez, Moberg and Cavangh have made extensive studies regarding ethics and
politics and have provided a way of looking at possible political behaviours from an
ethical perspective. They have presented three types of criteria for evaluating the ethics of
organisational politics and generally all this criteria must be satisfied in order for political
behaviour to be considered ethical. Their criteria are as discussed below :
1. Criterion of Utility : The behaviour results in optimisation of satisfaction of people
inside and outside the organisation, that is, it produces greatest good for the greatest
number of people. Moral and ethical acts are those that produce the greatest good for the
greatest number of people; otherwise, the acts will be considered less than ethical.
2. Criterion of Rights : The ethical behaviour respects the rights of all the affected
parties. The rights most likely to be violated by organisational politics are :
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(i) The right of Free consent. All people should be treated as they freely consent to be
treated.
(ii) The right of privacy. Every human being has a right to choose his own life style
outside the working hours including the right to deny access to information regarding his
private life.
(iii) The right to freedom of conscience, it is the right to refuse to carry out any
instructions that isolate a persons moral or ethical standards or religious beliefs to which
he adheres.
(iv) The right to free speech. It is the right to speak freely about any and all issues
including the right to criticise others so long as it does not infringe upon the rights of the
others.
(v) The right of due process. Every one has a right to have a fair hearing of any complaints
or issues which violate a person's rights.
3. Criterion of Justice: The ethical behaviour respects the rules ofjustice that is, it treats
people equitably and fairly as opposed to arbitrarily.
Sometimes a behaviour may fail to satisfy the three criteria but can still be considered as
ethical in the given situation. This special case must satisfy the criteria of overwhelming
factors. This criteria is applicable in situations which result in :
(i) Conflicts among criteria (results of one specific behaviour may include some good and
some bad being done.)
(ii) Conflicts within criteria (use of questionable means to achieve a positive end.)
(iii) Incapacity to employ the criteria (when the behaviour is based upon incorrect or
incomplete information.)
But, in some cases, people justify their unethical behaviour by their own reasoning.
According to GELLERMAN people use for rationalisations to justify unethical actions.
These are :
(i) Individuals feel that a particular behaviour is not really illegal and hence can be
considered as moral.
(ii) The action was taken with a view of best interests of the organisation.
(iii) It does not matter as long as the action is not objected.
(iv) It appears that action demonstrates loyalty to the superiors or to the organisation.
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As is clear, all these rationalisations are weak and do not justify any action which may be
legal but ethically questionable. Loyalty to the principles is more important than loyalty to
the boss or to the organisation.
Accordingly, it must be understood that, though, some, political games and behaviour is
unavoidable in any organisational climate, ethical considerations become very important
in the long run. By recognising and confronting the ethical considerations, each of us
should be better prepared to meet this important challenge. Every manager has to use
power and politics to get his work done, but he must use it in ethical and socially
responsible fashion.
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20 QUALITY OF WORKING LIFE
Introduction
The term Quality of Working Life aims at changing the entire organisational climate by
humanising work, individualising organisations and changing the structural and
managerial systems. It takes into consideration the sociopsychological needs of the
employees. It seeks to create such a culture of work commitment in the organisations
which will ensure higher productivity and greater job satisfaction for the employees. The
Concept of Quality of Working Life (QWL)
Quality of working life refers to the favourableness or unfavourableness of the job
environment of an organisation for its employees. It is generic term which covers a
person's feelings about every dimension of his work e.g. economic incentives an rewards,
job security, working conditions, organisational and interpersonal relationships etc. The
term QWL has different meanings for different people. A few important definitions of
QWL are as follows:
According to Harrison "QWL is the degree to which work in an organisation contributes to
material and psychological well being of its members."
According to D. S. Cohan "QWL is a process of joint decision making, collaborations and
building mutual respect between management and employees."
According to the American Society of Training and Development "QWL is a process of
work organisation which enables its members at all levels to participate actively and
effectively in shaping the organisation's environment, methods and outcomes. It is a value
based process which is aimed towards meeting the twin goals of enhanced effectiveness of
the organisation and improved quality of life at work for the employees".
QWL influences the productivity of the employees. Researchers have proved that good
QWL leads to psychologically and physically healthier employees with positive feelings.
To summarise, QWL is the degree to which employees of an organisation are able to
satisfy their personal needs through experience in the organisation. Its main aim is to
create a work environment where employees work in cooperation with each other and
contribute to organisational objectives.
Scope of Quality of Work-Life
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Quality of working life is a multi dimensional aspect. The workers expect the following
needs to be fulfilled by the organisations :
1. Compensation : The reward for work should be above a minimum standard for life and
should also be equitable. There should be a just an equitable balance between the effort
and the reward.
2. Health and Safety : The working environment should be free from all hazards
detrimental to the health and safety of the employees. The main elements of a good
physical environment for work should be reasonable hours of work, cleanliness, pollution
free atmosphere, risk free work etc.
3. Job Security : The organisation should offer security of employment. Employees should
not have to work under a constant concern for their future stability of work and income.
4. Job Design : The design of jobs should be such which is capable of meeting the needs of
the organisation for production and the individual for satisfying and interesting work.
Quality of work life can be improved if the job allows sufficient autonomy and control,
provides timely feed back on performance and uses a wide range of skills.
5. Social Integration : The workers should be able to feel a sense of identity with the
organisation and develop a feeling of self esteem. This includes the elimination of
discrimination and individualism, whilst encouraging teams and social groups to form.
6. Social Relevance of Work: Work should not only be a source of material and
psychological satisfaction, but also a means of social welfare, An organisation that has
greater concern for social causes can improve the quality of work life.
7. Scope for Better Career Opportunities : The management should provide facilities to the
employees for improving their skills both academic and otherwise. The management
should always think of utilising human resources for expansion and development of the
organisations.
Principles of Quality of Working Life
According to N. Q. Herrick and M. Maccoby there are four basic principles, which will
humanise work and improve the QWL :
1. The Principle of Security: Quality of work cannot be improved until employees are
relieved of the anxiety, fear and loss of future employment. The working conditions must
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be safe and fear of economic want should be ehminated. Job security and safety against
occupational hazards is an essential precondition of humanisation of work.
2. The Principle of Equity: There should be a direct and positive relation between effort
and reward. All types of discrimination between people doing similar work and with same
level of performance must be eliminated. Equity also requires sharing the profits of the
organisation.
3. The Principle of Individualism : Employees differ in terms of their attitudes, skills,
potentials etc. Therefore, every individual should be provided the opportunities for
development of his personality and potential. Humanisation of work requires that
employees are able to decide their own pace of activities and design of work operations.
4. The Principle of Democracy : This means greater authority and responsibility to
employees. Meaningful participation in decision making process improves the quality of
work life.
Approaches or Techniques for Improving QWL
The quality of work life movement is of recent origin and has a long way to go. Individual
as well as organised efforts are required to improve the quality of work life for milhons of
workers in the country. Some of the techniques used to improve the QWL are as given
below :
1. Flexible Work Schedules : There should be flexibility in the work schedules of the
employees. Alternative work schedules for the employees can be flexitime, staggered
hours, compressed work week etc. Flexitime is a system of flexible working hours,
staggered hours schedule means that different groups of employees begin and end work at
different invervals. Compressed work week involves longer hours of work per day for
fewer days per week.
2. Job Redesign: Job redesigning or job enrichment improves the quality of the jobs. It
attempts to provide a person with exciting, interesting, stimulating and challenging work.
In helps to satisfy the higher level needs of the employees.
3. Opportunity for Development: Career development is very important for ambitious
and achievement oriented employees. If the employees are provided with opportunities for
their advancement and growth, they will be highly motivated and their commitment to the
organisation will increase.
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4. Autonomous Work Groups: Autonomous work groups are also called self managed
work teams. In such groups the employees are given freedom of decision making. They
are themselves responsible for planning, organising and controlling the activities of their
groups. The groups are also responsible for their success or failures.
5. Employee's Participation in Management: People in the organisation should be
allowed to participate in the management decisions affecting their lives. Quality circles,
management by objectives, suggestion system and other forms of employee's participation
in management help to improve the QWL.
6. Job Security : Employees want stability of employment. Adequate job security
provided to the employees will improve the QWL to a large extent.
7. Equitable Justice : The principle of equitable administrative justice should be applied
in disciplinary actions, grievance procedures, promotions, transfers, work assignments etc.
Particality and biasness at any stage can discourage the workers and affect the QWL.
Recent Advances in Organisational Behaviour
Following are the recent advances in organistional behaviour:
1. Stimulating Innovation and Change: Today's successful organisation must foster
innovation and master the art of change victory will go to those organisation that maintain
their flexibility continually improve their quality and beat the competition. An
organisation's employees may resist innovation and change. But a manager is to stimulate
employees creativity and tolerance for change.
The field of organisational behaviour provides new ideas and techniques to help in
realizing these goals—innovation and change.
2. Absenteeism : Absenteeism is the failure to report to work. It is difficult for an
organisation to operate smoothly if employees fail to report to their job. Are all absences
bad ? Probably not. But levels of absenteesm beyond the normal range in any organisation
have a direct impact on organisations effectiveness and efficiency i.e. productivity. As we
know that one of organisational behaviour major concern is productivity. Organisational
behaviour helps in reducing the absenteesm and labour turnover.
3. Organisational Citizenship: Organisational citizenship is discretionary behaviour that is
not a part of an employees formal job requirements but it promotes the effective
functioning of the organisation.
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Sucessful organisations need employees who will do more than their usual job duties and
provide performance that is beyond expectations. Good citizenship behaviour refers to
making constructive statements about their work groups and the organisation, helping
others on their team, volunteering for extra job activities, avoiding unnecessary conflicts,
showing care for organisation property, gracefully tolerating the occasional work-related
nuisances. Organisational behaviour is concerned with organisational citizenship
behaviour.
4. Ethical Behaviour: What constitute good ethical behaviour has never been clearly
defined. And, in recent years, employees see people all around them engaging in unethical
practices.
In the field of organisational beahviour managers are creating ethical climate for their
employees. They are writing and distributing codes of ethics to guide employees through
ethical dilema. Ethical dilema refers to a situation in which an individual is required to
define right and wrong conduct.
5. Empowering People: In refers to putting employees in charge of what they do.
Managers are empowering employees. In doing so, managers have to learn how to give up
control and employees have to learn how to take responsibility. An increasing number of
organisations are using self-managed teams, where operate largely without bosses.
6. Coping Temporariness: Today's managers and employees must learn to cope with
temporariness. They have to learn to live with flexibility, spontaneity and unpredictability.
The study of OB can provide important insights into helping you better understand a
workload of continual change and how best to create an organisational culture that thrives
on change.
