Md Sohan Hossain

3rd Batch
Tourism and Hospitality Management

Organizational Behavior
Course code—THM # 225

Prepared by
Md Sohan Hossain
BBA
3rd Batch
Tourism and Hospitality Management
Islamic University, Kushtia.

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 Md Sohan Hossain
3rd Batch
Tourism and Hospitality Management

Introduction
Define manager
Manager An individual who achieves goals through other people.

Manager is someone who coordinate the people of organization.

Define organization
A consciously coordinated social unit, composed of two or more people that functions on a relatively
continuous basis to achieve a common goal or set of goals.

“What do managers do?”

Planning-- A process that includes defining goals, establishing strategy, and developing plans to
coordinate activities.

Organizing --Don that includes motivating employees, directing others, selecting the most effective
communication channels, and resolving conflicts.

Controlling ---Monitoring activities to ensure they are being accomplished as planned and correcting
any significant deviations.

What are the skill of management?

Technical Skills---- Technical skills encompass the ability to apply specialized knowledge or expertise.
When you think of the skills of professionals such as civil engineers or oral surgeons, you typically focus
on the technical skills they have learned through extensive formal education. Of course, professionals
don’t have a monopoly on technical skills, and not all technical skills have to be learned in schools or
other formal training programs. All jobs require some specialized expertise, and many people develop
their technical skills on the job.

Human Skills---- The ability to understand, communicate with, motivate, and support other people, both
individually and in groups, defines human skills. Many people are technically proficient but poor
listeners, unable to understand the needs of others, or weak at managing conflicts. Because managers
get things done through other people, they must have good human skills.

Conceptual Skills---- Managers must have the mental ability to analyze and diagnose complex situations.
These tasks require conceptual skills. Decision making, for instance, requires managers to identify
problems, develop alternative solutions to correct those problems, evaluate those alternative solutions,
and select the best one. After they have selected a course of action, managers must be able to organize
a plan of action and then execute it. The ability to integrate new ideas with existing processes and
innovate on the job are also crucial conceptual skills for today’s managers.

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3rd Batch
Tourism and Hospitality Management
“Do managers who move up the quickest in an organization do the same activities and with the same
emphasis as managers who do the best job?”

1. Traditional management. Decision making, planning, and controlling.

2. Communication. Exchanging routine information and processing paperwork.

3. Human resource management. Motivating, disciplining, managing conflict, staffing, and training.

4. Networking. Socializing, politicking, and interacting with outsiders.

Define organizational behavior (OB).

Organizational behavior (often abbreviated OB) is a field of study that investigates the impact that
individuals, groups, and structure have on behavior within organizations, for the purpose of applying
such knowledge toward improving an organization’s effectiveness. That’s a mouthful, so let’s break it
down.

Disciplines That Contribute to the OB Field

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3rd Batch
Tourism and Hospitality Management
Psychology--- The science that seeks to measure, explain, and sometimes change the behavior of
humans and other animals.

Social psychology--------- An area of psychology that blends concepts from psychology and sociology and
that focuses on the influence of people on one another.

Sociology -------The study of people in relation to their social environment or culture.

Anthropology --------The study of societies to learn about human beings and their activities.

Contingency variables --------Situational factors: variables that moderate the relationship between two
or more variables.

Identify the challenges and opportunities managers have in applying OB concepts.

1. Responding to Globalization
2. Managing Workforce Diversity
3. Improving Customer Service
4. Improving People Skills
5. Stimulating Innovation and Change
6. Working in Networked Organizations
7. Helping Employees Balance Work–Life Conflicts
8. Creating a Positive Work Environment
9. Improving Ethical Behavior

A Basic OB Model

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Tourism and Hospitality Management
The fundamental concepts of organizational behavior are;

 Individual Differences.
 Perception.
 A Whole Person.
 Motivated Behavior.
 The desire for Involvement.
 The value of the Person.
 Human Dignity.
 Organizations are Social System.
 Mutuality of Interest.
 Holistic Concept.

What are the approaches of organizational behavior?

1. Human resources (supportive) approach

The human resources approach is developmental. It is concerned with the growth and
development of people towards higher levels of competency, creativity, and fulfillment
because people are the central resource in any organisation and any society. The nature of
the human resources approach can be understood by comparing it with the traditional
management approach in the early 1900s.

In the traditional approach, managers decided what should be done and management was
directive and controlling. The human resources approach, on the other hand, is supportive.
It helps employees become better, more responsible persons and then tries to create a
climate in which they may contribute to the limits of their improved abilities. Essentially, the
human resources approach means that better people achieve better results.

2. Contingency approach

Traditional management relied on the principle of ―one best way of managing. There was a
correct way to organize, delegate, and divide work. The correct way is applied regardless of
the type of organisation or situation involved. The contingency approach to organizational
behaviour means that different situations require different behavioural practices for
effectiveness.

No longer is there a one best way. Each situation must be analysed carefully to determine
the significant variables that exist in order to establish the kinds of practices that will be
more effective. The strength of the contingency approach is that it encourages analysis of
each situation prior to action, while at the same time discouraging habitual practice based
on Universal assumptions about people.

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3rd Batch
Tourism and Hospitality Management
3. Productivity approach

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 or if fewer inputs can
be used to produce the same amount of outputs, productivity has increased.

The idea of productivity does not imply that one should produce more output; rather it is a
measure of how efficiently one produces whatever output is desired. Consequently, better
productivity is a valuable measure of how well resources are used in society. It means that
less is consumed to produce each unit of output. There is less waste and better
conservation of resources.

4. Systems Approach

A system implies that there are many variables in organisations and that each of them
affects all the others in a complex relationship. All people in organisations should be
concerned with improving organizational behaviour. Managers represent the administrative
system and their role is to use organizational behaviour to improve people – organisation
relationships as shown in the following figure.

Managers try to build a climate in which people are motivated work together, productively,
and become more effective persons.

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Tourism and Hospitality Management
What are the key factor affecting organizational behavior?

These key forces are;

1. People.
2. Structure.
3. Technology.
4. Environment.

The Key Elements of Organizational Behavior

These key forces are;

1. People.
2. Structure.
3. Technology.
4. Environment.

Important of ob.
1. Motivation
2. Performance
3. Office Characteristics

Limitations of OB
1. Behavioral Bias.
2. The Law of Diminishing Returns.
3. Unethical Manipulation of People.

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3rd Batch
Tourism and Hospitality Management
Models of Organizational Behavior
Organizational behavior model is a basic structure that shows the relations between
employees at different levels in the organization. Organizational behavior model reflects
the behavior of the people and management all together, it is considered as field study not
just a discipline. Organization analyze behavior of employees into three basic levels known
as OB Model, they are: – Individual level, Group level and Organizational system level.
What are the types of Organizational Behavior Model?

1. Autocratic Model;
2. Custodial Model;
3. Supportive Model;
4. Collegial Model; and
5. System Model
1. Autocratic Model: –
The autocratic model is the model that relies on strength, power and formal authority. The
autocratic model depends on power. Managers see authority as the only means to get the
things done and employees are expected to follow orders. So it results in the higher
dependence on the boss.

In an autocratic organization, the people (management/owners) managing the functions in

an organization have formal authority to control the employees working under them. These
lower-level employees have little control over the job assignments. His ideas and
innovations are generally not welcomed, as major decisions are made at the top
management level.

The guiding principle behind this model is that management/owners have extensive
business expertise, and the average employee has a relatively low level of skill and needs
to be thoroughly directed. This type of autocratic management system was common in
factories during the Industrial Revolution era.

One of the more significant problems associated with the autocratic model is that the
management team needs to micro-manage the employees – where they have to look at all
the details and make every single decision. Clearly, in a more modern-day organization,
where highly paid specialists are hired, an autocratic system becomes impractical and
highly inefficient.

The autocratic model also opposes job satisfaction and employee morale. This is because
employees do not feel valued and part of the overall team. This leads to low level of
performance. While the Autocratic model may be suitable for some very automated factory
situations, it is out of date for most modern outfits.

2. Custodial Model: –
Workers being managed under the autocratic model often feel insecure and disappointed.
They may also show aggression towards their boss and their family and neighbours. So

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Tourism and Hospitality Management
progressive managers felt that something must happen ways to develop better employee
relations so that insecurities and frustrationscould be removed. The custodial approach
induces employees now to show their dependency and loyalty towards the company and
not to the boss or managers, or supervisors. The employees in this environment are more
psychologically contended and preoccupied with their rewards, but it is not necessary they
would be strongly motivated to give the performance.

To overcome the shortcomings of autocratic model, it came into existence. This model is
reward based. More emphasis is on economic rewards and benefits to motivate employees.

The custodial model is based on the concept of providing economic security for employees
– through pay and other benefits that will create employee loyalty and motivation. In some
countries, many professional companies offer health benefits, corporate cars, financial
packaging of salaries, etc. – these are incentives designed to attract and retain quality
employees.

The underlying principle for the organization is that they will have a more skilled workforce,
more motivated employees, and have a competitive advantage through employee
knowledge and expertise. The downside with the custodial model is that it also attracts and
retains low-performing employees. Or perhaps even some offer low-level motivation from
employees who feel they are “stuck” in an organization because the benefits are too good to
leave.

3. Supportive Model: –
The basic idea behind this theory is that leadership drives people to work not the power of
money as in the custodial model. Through leadership Management provides an
environment to help employees develop and fulfil the interests of the organization, rather
than the only things to support employee benefit payment as per custodial approach.

It works in the public sector organization which is dependent on effective leadership. Here, it
is assumed that workers are self directed and creative. Importance in this model is given to
psychological needs, self esteem, job satisfaction and friendly relations between superior-
subordinate.

Under the supportive model, workers feel a sense of participation and work participation in
the organization. The role of the manager is to help the employee and solve their problems
and get their work done. This model has been found to be effective in prosperous countries
where workers are more concerned about their higher levels need affiliation and esteem.

Unlike the earlier two approaches, the supportive model is centred around ambitious
leadership. It is not based on control and authority (autocratic model) or incentives
(custodial model), but instead tries to motivate employees through the manager-employee
relationship and how employees are treated on a day-to-day basis.

Quite the opposite of the autocratic model, this approach suggests that employees are self-
motivated and have the value and insight to contribute to the organization, beyond just their
day-to-day role.

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3rd Batch
Tourism and Hospitality Management
This model aims to motivate employees through a positive workplace where their ideas are
encouraged and often adapted. Therefore, employees have some form of “buy-in” for the
organization and its direction.

The supportive model is widely accepted chiefly in the developed nations where the needs
of the employees are different as it fulfills many of the employees emerging needs. This
approach is less successful in the developing nations where the social and economic need
of the working class is different. In short, in the supportive model, money is not which retain
the satisfaction of the employees, but it is a part of the organization’s life that has been put
to the use and makes other people feel wanted.

4. Collegial Model: –
A useful extension of the supportive model is the collegial model. This word collegial means
a body of individuals with a common purpose. The collegial model, which embodies a term
concept, first achieved widespread applications in research laboratories and similar work
environments. This is a best model based on the partnership between workers and
management in which both work together as a team and respect each other. Workers are
satisfied by their job and they are committed to the organisation.

The collegial model traditionally was used theory is based on the principle of mutual
contribution by employer and employees. Each employee should develop a feeling that he
is a part of the whole and contributing something to the whole and recognizes the others
contribution. Management is supported to be joint contribution and not the boss.

The collegial model is based on teamwork – everyone working as a peer. The overall
environment and corporate culture needs to be aligned with this model, where everyone is
actively participating – not just about position and job title – for everyone to work together to
make a better organization is encouraged.

The role of the manager is to foster this teamwork and create positive and energetic
workplaces. In much more respect, the manager can be considered the “coach” of the team.
And as a coach, the goal is to keep the team doing well overall, rather than focusing on their
own performance, or the performances of key individuals.

The collegial model is quite effective in organizations that need to find new approaches –
marketing teams, research and development, technology/software – virtually anywhere the
competitive landscape is constantly changing and ideas and innovation are key competitive
success factors.

The success of the collegial model depends on the management’s ability to foster the
feeling of partnership between the employees. This makes the employees feel important
and needed. They also feel that managers are not just mere supervisors but are also giving
their equal contribution to the team. To make the collegial model success many
organizations have abolished the use of bosses and subordinates during working, as these
terms create the distance between the managers and subordinates. While some of the
organizations have abolished the system of allotting reserved space for executives. Now

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3rd Batch
Tourism and Hospitality Management
any employee can park their vehicle in the common parking space, which increases their
convenience and makes them more comfortable.

5. System Model: –
The final organizational model is known as the system model. It is the most contemporary
model of the five models discussed in this article. In the system model, the organization
looks at the overall structure and team environment, and assumes that individuals have
different goals, talents, and abilities. The system model aims to try to balance the goals of
the individual with the goals of the organisation.

Individuals obviously want good remuneration, job security, but also want to work in a
positive work environment where the organization adds value to the community and/or its
customers. The model system should be a holistic partnership of managers and employees
with a common goal, and where everyone feels they have a stake in the organization.

In the system model, the expectations of the managers are much more than getting the
work done by the employees. The managers have to show their emotional side, be more
compassionate and caring towards their team, and they must be sensitive towards the
needs of the diverse workforce. They have to devote their attention to creating the feeling of
optimism, hope, trustworthiness, courage, self-determination, and through this, they try to
develop a positive work culture where the employees feel more at ease and work as if they
are working for their family. This ultimately results in the long time commitment and loyalty
of the employees and the success of the company.

Characteristics of Organizational Behavior Model (OB)

Characteristics of Organizational Behavior Model are: –
1. Separate Field of Study and not a Discipline Only: – Organizational behaivor model is based
on multi-interdisciplinary orientation and is, thus, it is not based on a specific theoretical
background.
2. An Interdisciplinary Approach: – Organizational behavior model is an applied behavioral
science built on contributions from a number of behavioral disciplines, mainly psychology and
social psychology, sociology, and anthropology.
3. Applied Science: – Organizational behaivor model can be called both science as well as art
because it involve both applied research and its application in organizational analysis.
4. Normative Science: – Organizational behaivor model describes how the findings of applied
research can be applied to socially accepted organizational goals whereas the positive science
discusses the only cause-effect relationship
5. Humanistic and Optimistic Approach: – Organizational behaivor model deals with the people
and their interaction with organisations.
6. Total System Approach: – System approach is one that integrates all the variables, affecting
organizational functioning.

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3rd Batch
Tourism and Hospitality Management
Comparison of Organizational Behavior Models
The following table (Davis, 1967) presents a comparison between the four models of
organizational behavior with respect to its basis, the key managerial psychological
consequences for orientation, key employee orientation, employee needs that are met, and
ultimate performance or result.

Define organizational climate

Organizational climate refers to an employee's long-lasting perception of the working
environment and culture of the business they work for

What are the main indicators to measure the organizational climate?

1. Turnover rate
2. Absenteeism
3. Productivity

4. Quality of communication
5. Labor claims rates

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3rd Batch
Tourism and Hospitality Management
Conflict of organizational behavior
Define conflict in organizational behavior
Organizational conflict is an internal misunderstanding or disagreement that can occur
between colleagues or leaders.

According to S. R. Robbins defines conflict as “a process in which an

effort is purposefully made by a person or unit to block another that
result in frustrating the attainment of others goals or furthering of his
or her interests.”
What is the concept of conflict?
Conflict is an activity which takes place between conscious, though not necessarily
rational, beings.

Types of conflict

They are:

 Intrapersonal
 Interpersonal
 Intragroup
 Intergroup

Intrapersonal Conflict

The intrapersonal conflict is conflict experienced by a single individual, when his or

her own goals, values or roles diverge. A lawyer may experience a conflict of values
when he represents a defendant he knows to be guilty of the charges brought against
him. A worker whose goal it is to earn her MBA might experience an intrapersonal
conflict when she’s offered a position that requires her to transfer to a different state. Or
it might be a role conflict where a worker might have to choose between dinner with
clients or dinner with family.

Interpersonal Conflict

As you might guess, interpersonal conflict is conflict due to differences in goals,

value, and styles between two or more people who are required to interact. As this type
of conflict is between individuals, the conflicts can get very personal.

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3rd Batch
Tourism and Hospitality Management
Intragroup Conflict

Intragroup conflict is conflict within a group or team, where members conflict over goals
or procedures. For instance, a board of directors may want to take a risk to launch a set
of products on behalf of their organization, in spite of dissenting opinions among several
members. Intragroup conflict takes place among them as they argue the pros and cons
of taking such a risk.

Intergroup Conflict

Intergroup conflict is when conflict between groups inside and outside an organization
disagree on various issues. Conflict can also arise between two groups within the same
organization, and that also would be considered intergroup conflict.

Within those types of conflict, one can experience horizontal conflict, which is conflict
with others that are at the same peer level as you, or vertical conflict, which is conflict
with a manager or a subordinate.

Important Features of conflict

1. It Helps in Analytical Thinking

2. It Helps in Increased Cohesion

3. Conflict Promotes Competition and hence it Results in Increased Efforts

4. It Serves as a Foundation for Organizational Development

5. It Reduces Tensions.

Main Levels of conflict

1. Individual-Level Conflict:

Individual-level conflict indicates that human behavior is directed by needs, which guide the activities of

an individual. Before joining an organization, the individuals try to match their needs with the

organization’s offerings in terms of salary packages or other benefits. However, if they observe any

inequity with their colleagues in the organization, then it may result in a conflict at the individual level.

Such a conflict may lead to tension, frustration, and unpleasant behavior in individuals.
a. Intra-Individual Conflict

b. Inter-Individual Conflict

2. Group-Level Conflict
Group-level conflict refers to the divergence, competition, or clash between two groups of the
organization, such as management and staff .

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3rd Batch
Tourism and Hospitality Management
3. Organizational-Level Conflict:

Organizational-level conflict refers to the conflict which occurs at the level of the entire organization.
i. Intra-Organizational Conflict

a. Horizontal Conflict
b. Vertical Conflict

ii. Inter-Organizational Conflict

Stages of conflict
1. Latent conflict;
2. Perceived conflict;
3. Felt conflict;
4. Manifest conflict; and
5. Conflict Aftermath.

Major Factors of conflict

1. Heterogeneity amongst members
2. Incongruence in status hierarchy
3. Role dissatisfaction
4. Defective formalisation
5. System of decision making, and
6. Merging conflicting units
Different Patterns of conflict
1. Behavioural Pattern
2. Structural Conflict, and
3. Resource.

Top 2 Approaches of conflict

1. Traditional.
2. Modern.

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3rd Batch
Tourism and Hospitality Management
Advantages of conflict

1. Provide chance for self-determination through analysing the

situation.
2. Helps to seek clarification.
3. Generates challenging spirit among individuals/managers.
4. Develops spirit of unity even among heterogeneous group when
sources of conflicts are common.
5. Indicates the situation calls for improvement.
6. Long-standing problems can be dealt through creativity of people in
resolving situation.
7. Sometimes conflicting situations are created to divert the attention
from many other problems in the organisation.
8. Leads to personal growth and change.
9. Acts as major stimulant for change.
Disadvantages of conflict
1. Wastage of time and efforts, affects productivity of individuals.
2. People work for their own defects/interests rather than
organisational objective.
3. Creates suspicion in the mind against individual, organisation or
management.
4. Increase employee’s turnover.
5. Creates disloyalty and rebellious attitude and loses creativity.
6. Unresolved anger among people.

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3rd Batch
Tourism and Hospitality Management
The Effects of Conflict within an Organization
Mental Health Concerns
Conflict within an organization can cause members to become frustrated if they feel as
if there’s no solution in sight, or if they feel that their opinions go unrecognized by
other group members. As a result, members become stressed, which adversely
affects their professional and personal lives. Organization members may have
problems sleeping, loss of appetite or overeating, headaches and become
unapproachable. In some instances, organization members may avoid meetings to
prevent themselves from experiencing stress and stress-related symptoms.

Decrease in Productivity
When an organization spends much of its time dealing with conflict, members take
time away from focusing on the core goals they are tasked with achieving. Conflict
causes members to focus less on the project at hand and more on gossiping about
conflict or venting about frustrations. As a result, organizations can lose money,
donors and access to essential resources.

Employee Turnover Impacts

Organization members who are increasingly frustrated with the level of conflict within
an organization may decide to end their membership. This is especially detrimental
when members are a part of the executive board or heads of committees. Once
members begin to leave, the organization has to recruit new members and appoint
acting board members. In extreme cases, where several members leave or an
executive board steps down, organizations risk dissolution.

Conflict Escalation and Violence

When conflict escalates without mediation, intense situations may arise between
organization members. It’s unfortunate, but organizational conflicts may cause
violence among members, resulting in legal problems for members and possibly the
organization.

Inspire Creativity to Solve Problems

Fortunately, some organization members view conflict as an opportunity for finding
creative solutions to solve problems. Conflict can inspire members to brainstorm
ideas, while examining problems from various perspectives.

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Tourism and Hospitality Management
Share And Respect Opinions
As organization members work together to solve conflict, they are more willing to
share their opinions with the group. Conflict can also cause members to actively listen
to each as they work to accomplish the organizations’ goals.

Improve Future Communication

Conflict can bring group members together and help them learn more about each
other. From learning each others’ opinions on topics relevant to the organization’s
growth to understanding each member’s preferred communication style, conflict within
an organization can give members the tools necessary to easily solve conflicts in the
future.

Identify New Members

Within organizations members actively participate in each meeting, enjoy serving on
multiple committees and have an opinion on each topic the group discusses. There
are also members who seemingly contribute little to the group and observe more than
talk. Conflict within an organization can inspire typically silent members to step up and
demonstrate their leadership skills by offering meaningful solutions to the problem the
group is facing.

Ways of Conflict Resolution

Way # 1. The Competing Style:
The competing style is used when a person has to take quick action,
make unpopular decisions, handle vital issues, or when one needs
protection in a situation where non-competitive behaviour can be
exploited. To develop this style, one must develop the ability to argue
and debate, use his rank or position, assert his opinions and feelings,
and learn to state his position and stand his ground.
Overuse of this style can lead to lack of feedback, reduced learning,
and low empowerment. This can result in being surrounded by “Yes-
Men”. People who overuse the competing style often use inflammatory
statements due to lack of training on interpersonal skills.

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Tourism and Hospitality Management

When overuse is taken to an extreme, the person will create errors in

the implementation of the task by withholding needed information,
talking behind another person’s back (or “back-stabbing”), using eye
motions and gestures designed to express disapproval, and creating
distractions by fiddling or interrupting. Overuse of this style can be
exhibited through constant tension or anger and occasional outbursts
of violent temper.
Under use of the competing style leads to a lowered level of influence,
indecisiveness, slow action, and withheld contributions.
Way # 2. The Avoiding Style:
This style is used when you do not satisfy your concerns or the
concerns of the other person. This style is low assertiveness and low
co-operativeness. The goal is to delay. It is appropriate to use this style
when there are issues of low importance, to reduce tensions, or to buy
time. Avoidance is also appropriate when you are in a low power
position and have little control over the situation, when you need to
allow others to deal with the conflict, or when the problem is
symptomatic of a much larger issue and you need to work on the core
issue.
Overuse of the avoidance style can result in a low level of input,
decision-making by default, and allowing issues to fester, which can
produce a breakdown in communication between team members. This
can inhibit brainstorming sessions from being productive and can
prevent the team from functioning. People who overuse avoidance,
feel they cannot speak frankly without fear of repercussions. The
overuse of conflict avoidance can often be a result of childhood

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Tourism and Hospitality Management

experiences, past work-related incidents, and negative experiences

with conflict resolution.
Behaviours associated with the overuse of avoidance include being
silent, gloomy, and untruthful. A milder form of avoidance behaviour
is when the team member procrastinates about getting work done and
deliberately takes an opposing point of view inappropriately during a
decision-making situation, or is timid, withdrawn, or shy. Extreme
behaviours can occur when avoidance is overused. A person begins to
be negative, critical and sarcastic.
Underuse of the avoidance style results in unfriendliness and hurt
feelings. In addition, work can become overwhelming because too
many issues are taken on at once, resulting in an inability to prioritize
and delegate. When avoidance is underused, a team member may
deny that there is a problem and allow their hurt feelings to prevent
communication.
Way # 3. The Compromising Style:
This style is moderately assertive and moderately co-operative. The
compromising style is used with issues of moderate importance, when
both parties are equally powerful and equally committed to opposing
views. This style produces temporary solutions and is appropriate
when time is a concern, and as a backup for the competing and
collaborating styles when they are unsuccessful in resolving the
situation.
Compromising skills include the ability to communicate and keep the
dialogue open, the ability to find an answer that is fair to both parties,
the ability to give up part of what you want, and the ability to assign
value to all aspects of the issue.
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Tourism and Hospitality Management

Overuse of the compromising style leads to loss of long-term goals,

lack of trust, creation of a cynical environment, and being viewed as
having no firm values. Overuse of compromise can result in making
concessions to keep people happy without resolving the original
conflict.
Underuse leads to unnecessary confrontations, frequent power
struggles, and ineffective negotiation.
Way # 4. The Collaborating Style:
The Collaborating Style is when the concern is to satisfy both sides. It
is highly assertive and highly co-operative. The goal is to find a
“win/win” solution. Appropriate uses of the collaborating style include
integrating solutions, learning, merging perspectives, gaining
commitment, and improving relationships. Using this style can
support open discussion of issues, task proficiency, equal distribution
of work amongst the team members, better brainstorming, and
development of creative problem-solving.
This style is appropriate to use frequently in a team environment.
Collaborating skills include the ability to use active or effective
listening, confront situations in a non-threatening way, analyse input,
and identify underlying concerns.
Overuse of the collaborating style can lead to spending too much time
on minor matters, diffusion of responsibility, being taken advantage
of, and being overloaded with work.
Underuse can result in using quick fix solutions, lack of commitment
by other team members, disempowerment, and loss of innovation.

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Tourism and Hospitality Management
Way # 5. The Accommodating Style:
The Accommodating Style is foregoing your concerns in order to
satisfy the concerns of others. This style is low assertiveness and high
co-operativeness. The goal is to yield. The accommodating style is
appropriate to use in situations when you want to show that you are
reasonable, develop performance, create goodwill, keep peace, retreat,
or for issues of low importance. Accommodating skills include the
ability to sacrifice, the ability to be selfless, the ability to obey orders,
and the ability to yield.
Overuse of the accommodating style results in ideas getting little
attention, restricted influence, loss of contribution, and chaos. People
who overuse the accommodating style exhibit a lack of desire to
change and usually demonstrate anxiety over future uncertainties.
Underuse of the accommodating style can result in lack of rapport, low
morale, and an inability to yield. When the accommodating style is
underused, a person may display indifference as a way of not
addressing the anger or hurt.

Models of Organizational Conflicts

(1) Bargaining Conflict Model:

The bargaining model covers conflict among interest groups which are
competing for scarce resources, for example, labour-management
conflicts, line staff conflicts, budgeting processes. We may have
integrative bargaining wherein the parties compose to increase the
total amount of resources available to competing parties.

(2) Bureaucratic Model:

Bureaucratic conflicts arise from attempts to compel obedience to
rules, orders, and organisationally prescribed attitudes, and
behaviour. Bureaucratic model deals with conflicts relating to
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autonomy versus control and co-ordination. Such conflicts arise
between the boss and his subordinates in the management hierarchy.

(3) Systems Conflict Model:

The systems model is suitable for the analysis of conflicts among
functional departments and it is concerned with lateral (not vertical)
conflicts i.e., conflicts among persons operating at the same orga-
nisation level. Bureaucratic or authority-structure model deals with
problem of control. The intergroup bargaining model deals with
problems of competition. The systems (lateral) model, however, deals
with the problems of co-ordination.
Major Sources of Conflict In An Organization
 Lack of common performance standards.
 Competition.
 Personal differences.
 Lack of resources.
 Communication issues.
 Time constraints.
 Task interdependence.
 Status issues.

GROUP WORK
Define group
We define a group as two or more individuals, interacting and interdependent,
who have come together to achieve particular objectives.
Nature of Groups
There are different types of groups which are created to get some specific results in any
organizations. The team members agree to a general task, become mutually dependent relative
in their action, and work together with each other to support its success. There are three views
on the nature of act between team members. The first is normative, which explain how to carry
out performance and manage the team. The second view is includes of a set of method, group
building, role play, self-managed groups and sensitivity training of the members. The third is
referred as a team dynamic from the point of sight that the internal nature of any groups.

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Types of Group

1. Formal group, we mean one defined by the organization’s structure, with designated
work assignments establishing tasks.

2. Informal group is neither formally structured nor organizationally determined

Why Do People Form Groups?

● Similarity. Not surprisingly, people who have the same values or characteristics as other members of
their organization have higher levels of group identification. Demographic similarity can also lead to
stronger identification for new hires, while those who are demographically different may have a hard
time identifying with the group as a whole.
● Distinctiveness. People are more likely to notice identities that show how they are different from
other groups. Respondents in one study identified more strongly with those in their work group with
whom they shared uncommon or rare demographic characteristics. For example, veterinarians who
work in veterinary medicine (where everyone is a veterinarian) identify with their organization, and
veterinarians in no veterinary medicine fields such as animal research or food inspection (where being a
veterinarian is a more distinctive characteristic) identify with their profession.
● Status. Because people use identities to define themselves and increase self-esteem, it makes sense
that they are most interested in linking themselves to high-status groups. Graduates of prestigious
universities will go out of their way to emphasize their links to their alma maters and are also more likely
to make donations. People are likely to not identify with a low-status organization and will be more
likely to quit in order to leave that identity behind.
● Uncertainty reduction. Membership in a group also helps some people understand who they are and
how they fit into the world. One study showed how the creation of a spin-off company created
questions about how employees should develop a unique identity that corresponded more closely to
what the division was becoming. Managers worked to define and communicate an idealized identity for
the new organization when it became clear employees were confused.

The Five-Stage Model

Five-stage group-development model the five distinct stages groups go through: forming, storming,
norming, performing, and adjourning.

1. Forming stage ---The first stage in group development, characterized by much uncertainty
2. Storming stage --The second stage in group development, characterized by intragroup conflict
3. Norming stage--- The third stage in group development, characterized by close relationships and
cohesiveness.
4. Performing stage ------The fourth stage in group development, during which the group is fully
functional.
5. Adjourning stage -----The final stage in group development for temporary groups, characterized
by concern with wrapping up activities rather than task performance.

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Functions of a Group
 They help organizations achieve their goals and objectives.
 They help solve organizational issues.
 They create a healthy environment in an organization.
 They help employees raise issues.
 They motivate employees to perform better.

Group Decision-Making Techniques

 Interacting groups------ Typical groups in which members interact with each other face to face.
 Nominal group technique----- A group decision-making method in which individual members
meet face to face to pool their judgments in a systematic but independent fashion.
 Electronic meeting ---------A meeting in which members interact on computers, allowing for
anonymity of comments and aggregation of votes. 8 Contrast the strengths and weaknesses of
group decision making.
 Brainstorming ------An idea-generation process that specifically encourages any and all
alternatives while withholding any criticism of those alternatives.
Dynamics of informal &formal groups.
The members of formal groups behave according to their mutual goals. Informal groups
emerge not from formal authorities but rather from personal or social interactions. The
members of these groups might or might not have specific common goals. These groups
generally emerge from feelings of friendship or camaraderie.

Advantages of Committees
1. Pooling of opinions
2. Improved cooperation
3. Motivation
4. Representation
5. Dispersion of power
6. Communication

Disadvantages of Committees
1. Time and cost
2. Compromise
3. Personal prejudice
4. Logrolling
5. The strain on interpersonal relations
6. Lack of effectiveness

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What is Team?

A team becomes more than just a collection of people when a strong sense of
mutual commitment creates synergy, thus generating performance greater
than the sum of the performance of its individual members.

The team can be defined by following ways too:

 A group of people who compete in a sport, game, etc., against another

group.
 A group of people who work together.
 A group of two or more animals used to pull a wagon, cart, etc.
 A number of persons forming one of the sides in a game or contest.
 A number of persons associated in some joint action: a team of experts.

What may be considered as the most essential ingredients for creating

effective teams?

 Ideal Size and Membership.

 Fairness in Decision-Making.
 Creativity.
 Accountability.
 Purpose and Goals.
 Action Plans.
 Roles & Responsibilities.
 Information Sharing.
 Good Data.
 Meeting Skills and Practices.
 Decision Making.
 Participation.
 Ground Rules.

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Types of Team
There are various types of teams and their functions and objectives are also
different. The types of teams are discussed are below:

 Executive Team,
 Command Team,
 Project Teams,
 Advisory Teams,
 Work Teams,
 Action Teams,
 Sports Teams,
 Virtual Teams,
 Work Teams,
 Self-Managed Team,
 Parallel Teams,
 Management Teams,
 Managed Team.

Differences between Groups and Teams

Groups Teams

Individual accountability.
Individual and mutual accountability.
Read More: What is Group?

Come together to share information and Frequently come together for discussion, decision
perspectives. making, problem-solving, and planning.

Focus on individual goals. Focus on team goals.

Produce individual work products. Produce collective work products.

Define individual roles, responsibilities, and Define individual roles, responsibilities, and tasks to help
tasks. the team do its work; often share and rotate them.

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Concerned with one’s own outcome and Concerned with the outcomes of everyone and
challenges. challenges the team faces.

Purpose, goals, approach to work shaped by Purpose, goals, approach to work shaped by the team
the manager. leader with team members.

The leader dominates and controls the group. The leader acts as a facilitator.

The leader is apparent and will conduct the The members have active participation in the
meeting. discussions and eventual outcome.

The leader usually assigns work to the The team members decide on the disbursements of
members. work assignments.

Groups do not need to focus on specific Teams require the coordination of tasks and activities to
outcomes or a common purpose. achieve a shared aim.

Individuals in a group can be entirely

Team members are interdependent since they bring to
disconnected from one another and not rely
bear a set of resources to produce a common outcome.
upon the fellow members at all.

Groups are generally much more informal;

Team members’ individual roles and duties are specified
roles do not need to be assigned and norms of
and their ways of working together are defined.
behavior do not need to develop.

What are the 4 major factors of an effective team?

1. Supportive Environment.
2. Skills and Role Clarity.
3. Super Ordinate Goals.
4. Team Rewards.

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Leadership
Define leadership
We define leadership as the ability to influence a group toward the achievement of a vision or set of
goals.
Leadership is the ability of an individual or a group of individuals to influence and guide
followers or other members of an organization.
Leadership involves making sound -- and sometimes difficult -- decisions, creating and
articulating a clear vision, establishing achievable goals and providing followers with the
knowledge and tools necessary to achieve those goals.

What is a Leadership Theory?

A leadership theory describes how and why certain individuals become leaders. The focus is on
the characteristics and behaviors that people can adopt to enhance their leadership ability.
According to leaders, strong ethics and high moral standards are essential qualities of a good
leader.

What Makes an Honest Leader?

A successful leader possesses personality, bravery, a transparent vision, and ambition. A
strong leader creates organizational success by encouraging the team to perform at their
highest level.

Essential Leadership Skills of Excellent Leaders

 Understand the way to offer support. Supportive leaders are accessible to their staff,
transparent about their choices, team players, and adept communicators of plans
and tactics.

 Have empathy and demonstrate it

 Keep the lines of communication open

 Being capable of taking decisions

 Effective planning

 Collaborate.

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Major Leadership Theories

1. The Transactional Theory or Management Theory
Well during Industrial Revolution, this transactional theory was developed to boost company productivity. It is a
leadership approach that emphasizes the value of hierarchy for enhancing organizational effectiveness. These
managers place high importance on structure and utilize their authority to enforce rules to inspire staff to perform
at their best. In accordance with this philosophy, workers are rewarded for achieving their given objectives. The
concept also presupposes that workers must comply with managerial directives.
Managers whopractice transactional leadership keep an eye on their staff, making sure they are rewarded for
reaching milestones and disciplined when they fall short. These executives, however, do not serve as a trigger for a
company's expansion. Instead, they concentrate on upholding the organization's policies and standards to ensure
that everything goes as planned.
Leaders Who Practice Transactional Leadership:
 Target immediate objectives.
 Favor standardized processes and regulations
 Recent changes
 Discourage original thought
 Emphasis on one's own interests
 Encourage performance
When there are challenges that are clearly stated and the main goal is to finish a work, transactional leadership
works well

2. Theory of Transformation
The relationship between leaders and staff can help the organization, according to the transformational theory of
management. This leadership theory contends that effective leaders inspire workers to go above and beyond what
they are capable of. Leaders develop a vision for their team members and motivate them to realize it.
Employee morale is raised and inspired by transformational leaders, which helps them perform better at work.
These managers encourage staff members by their deeds rather than their words because they specialize in setting
an example.
Leaders Who Practice Transformational Leadership:
 Self-manage
 Set an example
 Give interaction a high priority
 Be proactive in your work
 Promote the development of employees
 Receptive to fresh concepts
 Take chances and make difficult choices
Transformational leaders, as opposed to transactional leaders, prioritize failed processes and gather personnel
who get along well to accomplish shared corporate objectives. Additionally, effective executives prioritize the
requirements of the organization and its employees over their own.

3. The Theory of Contingencies

According to the contingency hypothesis, there is no one right way to run an organization. Determining the
optimal strategy for leading an organization to achieve depends on both internal and external considerations. The
right candidate should fit the correct scenario, according to the contingency theory.
The following elements influence the leadership style, based on contingency theory:
 Management approach
 Work speed
 Organizational policies and culture
 Employee spirit

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 Employees' level of maturity
 Relationship between coworkers or members of a team
 Organizational objectives
 Environment and routine at work
The management strategy that will help the organization achieve its objectives in a particular situation is decided
by the leader.
According to this view, situations determine whether or not leaders are effective. No matter how successful a
leader is, the idea explains, difficult situations will always arise. It emphasizes that the leaders are aware that
the conditions in combination with their abilities have a role in their achievement. 4. The Theory of Situations
Similar to the contingency theory, this idea emphasizes the significance of context and holds that a leader should
adjust to the shifting context to achieve objectives and make judgments. The level of competence and dedication
of the team members can influence how these leaders choose to lead.
Situational leadership, as per situational theory:
 Develop a connection with the workforce
 Encourage employees
 Recognize when alternative leadership philosophies are required in a given situation
 Develop teams and organizational units
The idea also distinguishes four main leadership styles:
1. Telling: Managers instruct staff members on what needs to be done and how to go about it.
2. Selling: Team members are persuaded to adopt a leader's concepts or ideas.
3. Participating: Effective leaders encourage their team members to take an active part in problem-solving and
decision-making processes.
4. Delegating: Limiting their involvement, leaders hand off the majority of the work to the team. Such leaders
defer to the group for decision-making but they are always ready for advice.
The theory lists a few essential traits of a situational leader, such as problem-solving abilities, trust, adaptability,
insight, and coaching.
5. The Great Man Theory

One of the first theories on leadership makes the assumption that these qualities are inherent, which indicates
that leaders are born, not created, and cannot be learned. This hypothesis asserts that a leader has certain innate
human characteristics, such as:

 Glamour

 Decisive

 Wisdom

 Daring

 Assertiveness

 Appeal

This viewpoint emphasizes the fact that individuals cannot be taught to be effective leaders. It's a quality that
either you have or you don't. These abilities come naturally, thus you cannot learn them or receive training in
them.

In addition, the idea holds that these leadership qualities are constant over time and apply to all organizations,
regardless of the setting in which these leaders are employed. The idea that exceptional leaders emerge when they
are required is another tenet of this leadership ideology.

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6. The Trait Theory
The great man theory is expanded upon by the trait theory of leadership, which is predicated on the idea that
effective leaders have particular personality qualities and features of behavior. They can become effective leaders
in a number of circumstances thanks to these qualities. It also promotes the idea that certain people are more
naturally gifted as leaders than others. Effective people have hobbies and personality traits that are very different
from those of non-leaders.
The main characteristics of a successful leader are:
 Emotional equilibrium
 Acknowledging one's duty
 Competence
 Recognising obstacles
 Thinking with action
 Motivational abilities
 Talents in communication
 Tenacity and flexibility
 Making decisions with assurance
You can learn more about your limitations and strengths with the help of this leadership idea. Then, you can try to
strengthen your areas of weakness.The ideal person for a leadership position is chosen by many organizations
using the trait approach.
7. Behaviorist Theory
According to this view, a person's leadership abilities are a product of their environment. Different learning talents
contribute to effective management. The behavioral idea holds that leaders are formed and trained, not born, in
contrast to the model of leadership. In other words, a leader's performance is not influenced by their inherent
traits because leadership qualities are driven by behavior. Anyone is capable of becoming a leader with the right
training and instruction.
According to the theory, in order to boost the output and morale of their team, managers should be mindful of
their own behavior. This theory classifies managers into the following categories depending on the leadership
styles it acknowledges:
 Task-focused managers
 Leaders who put people first
 Apathetic leaders
 Effective leaders
 Dictatorial authorities
 Current authorities
 Reliable leaders
 Shrewd businesspeople
 Daddy-like bosses
 Heads of Country Clubs
It is simple to assess the style of leadership of construction professionals, team leaders, or indeed any skilled
leader using the behavioral theory.
8. Behavioral Theory

Behavioral leadership theory focuses on the actions of leaders and holds that other leaders are able to imitate
similar actions. Because it is sometimes known, the design theory contends that successful leaders could also be
developed through teachable conduct rather than being born with it. The behaviors of a pacesetter are extensively
emphasized in behavioral theories of leadership; this theory contends that observing a leader's behavior is the best
indicator of how successful their leadership will be. The behavioral learning hypothesis emphasizes behavior
instead of traits. Consistent with this idea, observable patterns of conduct are classified as "styles of leadership."
Task-oriented leaders, club leaders, people-oriented leaders, dictatorial leaders, status-quo leaders, and more are
some samples of leadership styles.

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9. Functional Theory
The functional theory of leadership emphasizes how employment or organization is being led rather than who has
been formally designated as the leader. Within the functional leadership approach, the power to get things done
is supported by a collection of people's behaviors rather than one individual.
10. Integrated Psychological Theory
Integrative leadership may be a new style of leadership that encourages cooperation across a variety of barriers in
order to advance the common good. It combines leadership theories and techniques that have their roots in five
important societal spheres: industry, government, nonprofits, the media, and the community.
Why Are Leadership Theories Important?
Theories of leadership describe how and why particular people develop to be leaders. They lay emphasis on the
actions and character characteristics that folks might adopt for improving their leadership skills. Top qualities that
leaders cite as essential to effective leadership include: Strong moral principles and ethics
It is not necessary to overemphasize the importance of leadership. Any organization's success may be a result of its
leadership. Due to its leadership, even the state has achieved independence, expansion, prosperity, and power.
Effective leadership is another thing about the success and expansion of a business or industrial organization.
What Are Leadership Styles?
Following are the five sorts of leadership according to the Personnel Research Board at Ohio University.
1. The bureaucrat
2. The autocrat
3. The diplomat
4. The expert
5. The quarterback
Applying Leadership Theories at Workplace
10 methods to point out leadership at the office
 Become a thought leader
 Join a corporation for professionals
 Consider the large picture
 Think proactively and with positivity
 Listen to others and pick up tips from them
 Connect with a goal in mind
 Look for a mentor
 Accept diversity.

Motivation
What is Motivation?

Motivation is the word derived from the word ’motive’ which means needs,
desires, wants or drives within the individuals.

What are the 3 key elements of our definition are intensity, direction, and persistence?

1. Intensity
Intensity is concerned with how hard a person tries. This is the element most of us focus on when we talk
about motivation.

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2. Direction
The direction is the orientation that benefits the organization.
3. Persistence
Persistence is a measure of how long a person can maintain his or her effort. Motivated individuals stay
with a task long enough to achieve their goals .

Theories of Motivation
Motivation Theories
Motivation is a state of mind, filled with energy and enthusiasm, which drives a
person to work in a certain way to achieve desired goals. Motivation is a force that
pushes people to work with a high level of commitment and focus, even if things are
going against them. Motivation translates into a certain kind of human behavior.  In
short, motivation is the driving force behind human actions.

There are many different forces that guide and direct our motivations. It is important
to ensure that every team member in an organization is motivated and meets
the best project management course bottom line. Various psychologists have studied
human behavior and have formalized their findings in the form of various
motivational theories. These motivational theories provide insights into the way
people behave and what motivates them.

Motivation theory is a way of looking at the motivation of a person and how this
influences their behavior, whether for personal or professional reasons. It's important
to every aspect of society but is especially relevant to business and management.
Motivation is the key to more profitable employees, as a motivated employee is more
productive.

What are the Theories of Motivation?

Motivation is a huge field of study. Psychologists have proposed many different
theories of motivation. Some of the most famous motivational theories include the
following:

1. Maslow’s Theory of Hierarchical Needs

Abraham Maslow postulated that a person will be motivated when all his needs are
fulfilled. People do not work for security or money, but they work to contribute and to
use their skills. He demonstrated this by creating a pyramid to show how people are
motivated and mentioned that ONE CANNOT ASCEND TO THE NEXT LEVEL
UNLESS LOWER-LEVEL NEEDS ARE FULFILLED. The lowest level needs in the

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pyramid are basic needs and unless these lower-level needs are satisfied people do not
look at working toward satisfying the upper-level needs.

Below is the hierarchy of needs:

 Physiological needs: are basic needs for survival such as air, sleep, food,
water, clothing, sex, and shelter.
 Safety needs: Protection from threats, deprivation, and other dangers
(e.g., health, secure employment, and property)
 Social (belongingness and love) needs: The need for association, affiliation,
friendship, and so on.
 Self-esteem needs:  The need for respect and recognition.
 Self-actualization needs:  The opportunity for personal development, learning,
and fun/creative/challenging work.  Self-actualization is the highest-level need
to which a human being can aspire.

The leader will have to understand at what level the team members are currently, and
seek out to help them to satisfy those specific needs and accordingly work to help
fulfill those needs. This will help the team members perform better and move ahead
with the project. A PMP certification will help you better understand this concept.
Also, as their needs get fulfilled, the team members will start performing, till the time
they start thinking of fulfilling the next upper level of need as mentioned in the
pyramid.

2. Hertzberg’s two-factor Theory

Hertzberg classified the needs into two broad categories; namely hygiene factors and
motivating factors:

 poor hygiene factors may destroy motivation but improving them under most
circumstances will not improve team motivation
 hygiene factors only are not sufficient to motivate people, but motivator factors
are also required

Herzberg’s two-factor principles

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Influenced by Hygiene Factors (Dis- Improving motivator factors

Influenced by motivator factors (Satisfiers)
satisfiers) increases job satisfaction

 Achievements
 Working condition
 Recognition
 Coworker relations
Improving the hygiene factors  Responsibility
 Policies & rules
decreases job dissatisfaction  Work itself
 Supervisor quality
 Personal growth

3. McClelland’s Theory of Needs

McClelland affirms that we all have three motivating drivers, which do not depend on
our gender or age. One of these drives will be dominant in our behavior. The
dominant drive depends on our life experiences. 

The three motivators are:

 Achievement: a need to accomplish and demonstrate own competence. People

with a high need for achievement prefer tasks that provide for personal
responsibility and results based on their own efforts.  They also prefer quick
acknowledgment of their progress.
 Affiliation: a need for love, belonging and social acceptance. People with a
high need for affiliation are motivated by being liked and accepted by others.
 They tend to participate in social gatherings and may be uncomfortable with
conflict.
 Power: a need for controlling own work or the work of others. People with a
high need for power desire situations in which they exercise power and
influence over others.  They aspire for positions with status and authority and
tend to be more concerned about their level of influence than about effective
work performance.

4. Vroom’s Theory of Expectancy

Vroom’s expectancy theory of motivation says that an individual’s motivation is

affected by their expectations about the future. In his view, an individual’s motivation
is affected by –

 Expectancy: Here the belief is that increased effort will lead to increased
performance i.e., if I work harder then it will be better. This is affected by
things such as:

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o Having the appropriate resources available (e.g., raw materials, time)
o Having the appropriate management skills to do the job
o Having the required support to get the job done (e.g., supervisor support,
or correct information on the job)
 Instrumentality: Here the belief is that if you perform well, then the outcome
will be a valuable one for me. i.e., if I do a good job, there is something in it for
me. This is affected by things such as:
o A clear understanding of the relationship between performance and
outcomes – e.g., the rules of the reward ‘game’
o Trust in the people who will take the decisions on who gets what
outcome
o Transparency in the process decides who gets what outcome
 Valence: is how much importance the individual places upon the expected
outcome. For example, if someone is motivated by money, he or she might not
value offers of additional time off.

Motivation = V * I * E
The three elements are important when choosing one element over another because
they are clearly defined:

 E>P expectancy: our assessment of the probability that our efforts will lead to
the required performance level.
 P>O expectancy: our assessment of the probability that our successful
performance will lead to certain outcomes.

5. McGregor’s Theory X and Theory Y

Theory X and Theory Y were first explained by McGregor in his book, "The Human
Side of Enterprise," and they refer to two styles of management – authoritarian
(Theory X) and participative (Theory Y).

Theory X: Managers who accept this theory believe that if you feel that your team
members dislike their work, have little motivation, need to be watched every minute,
and are incapable of being accountable for their work, avoid responsibility and avoid
work whenever possible, then you are likely to use an authoritarian style of
management. According to McGregor, this approach is very "hands-on" and usually
involves micromanaging people's work to ensure that it gets done properly.

Theory Y: Managers who accept this theory believe that if people are willing to work
without supervision, take pride in their work, see it as a challenge, and want to
achieve more, they can direct their own efforts, take ownership of their work and do it

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effectively by themselves. These managers use a decentralized, participative
management style.

6. Alderfer’s ERG Theory

C. P. Alderfer, an American psychologist, developed Maslow’s hierarchy of needs

into a theory of his own.

His theory suggests that there are three groups of core needs: existence (E),
relatedness (R), and growth (G). These groups are aligned with Maslow’s levels of
physiological needs, social needs, and self-actualization needs, respectively.

Existence needs concern our basic material requirements for living, which include
what Maslow categorized as physiological needs such as air, sleep, food, water,
clothing, sex and shelter and safety-related needs such as health, secure employment,
and property.

Relatedness needs have to do with the importance of maintaining interpersonal

relationships. These needs are based on social interactions with others and are aligned
with Maslow’s levels of love/belonging-related needs such as friendship, family, and
sexual intimacy and esteem-related needs such as gaining the respect of others.

Growth needs describe our intrinsic desire for personal development. These needs are
aligned with the other part of Maslow’s esteem-related needs such as self-esteem,
self-confidence, and achievement, and self-actualization needs such as morality,
creativity, problem-solving, and discovery.

Alderfer is of the opinion that when a certain category of needs is not being met,
people will redouble their efforts to fulfill needs in a lower category.

Maslow’s theory is very rigid and it assumes that the needs follow a specific and
orderly hierarchy and unless a lower-level need is satisfied, an individual cannot
proceed to the higher-level need i.e., an individual remains at a particular need level
until that need is satisfied.

Whereas, according to Alderfer’s theory, if a higher-level need is aggravated, an

individual may revert to increasing the satisfaction of a lower-level need. This is
called the frustration-regression aspect of ERG theory. ERG theory is very flexible as
Alderfer perceived the needs as a range/variety instead of perceiving them as a
hierarchy i.e., an individual can work on growth needs even if his existence or
relatedness needs remain unsatisfied.

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 Md Sohan Hossain
3rd Batch
Tourism and Hospitality Management
For e.g., when growth needs aggravate, then an individual might be motivated to
accomplish the relatedness need and if there are issues in accomplishing relatedness
needs, then he might be motivated by the existence needs. Hence in this manner,
frustration or aggravation can result in regression to a lower-level need.

Another example could be, if someone’s self-esteem is suffering, he or she will invest
more effort in the relatedness category of needs.

Implications of the ERG Theory

All managers must understand that an employee has various needs that must be
satisfied at the same time. According to the ERG theory, if the manager focuses solely
on one need at a time, then this will not effectively motivate the employee. The
frustration-regression aspect of ERG Theory has an added effect on workplace
motivation. For e.g., if an employee is not provided with growth and advancement
opportunities in an organization, then he or she might revert to related needs such as
socializing needs.

To meet those socializing needs, if the environment or circumstances do not permit it,
he might revert to the need for money to fulfill those socializing needs. By the time
the manager realizes and discovers this, they will take more immediate steps to fulfill
those needs which are frustrated until such time that the employee can again pursue
growth.

You can further explore KnowledgeHut's best project management course which goes
into full detail about the same.

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