MS-101 ORGANISATIONAL

BEHAVIOUR
1st Sem

SUBJECT TEACHER –
DR. ABHINICA SAHU
 Unit – III Group Behavior

Organization structure – Formation – Groups in

organizations – Influence – Group dynamics –
Interpersonal Communication
Team building - Interpersonal relations – Group
decision making techniques.
Meaning of conflict and its types, Conflict Redressal
process
 Organization structure

 An organizational structure is a system that outlines

how certain activities are directed in order to
achieve the goals of an organization. These activities
can include rules, roles, and responsibilities.
 The organizational structure also determines how
information flows between levels within the
company. For example, in a centralized structure,
decisions flow from the top - down, while in a
decentralized structure, decision-making power is
distributed among various levels of the organization.
 Understanding an Organizational
Structure

 Businesses of all shapes and sizes use organizational

structures heavily. They define a
specific hierarchy within an organization. A
successful organizational structure defines each
employee's job and how it fits within the overall
system. Put simply, the organizational structure lays
out who does what so the company can meet its
objectives.
 What are the benefits of organizational
structures?

 Faster decision making

 Multiple business locations
 Improved operating efficiency
 Greater employee performance
 Eliminates duplication of work
 Reduced employee conflict
 Better communication
 Types of organizational structures

 Functional structure
 Divisional structure
 Flatarchy
 Matrix structure
 Functional structure

In a functional structure, organizations are divided into specialized

groups with specific roles and duties. A functional structure is also
known as a bureaucratic organizational structure and is commonly
found in small to medium-sized businesses. Most people in the
workforce have experience working in this type of organizational
structure. For example, many companies divide their organization into
various departments such as finance, marketing and human resources.
Each of these departments then has a manager who oversees it. This
manager is then supervised by an administrator or executive who
oversees multiple departments.
Here are some advantages of this structure:
 Employees grouped by skill
 Greater sense of teamwork
Here are some disadvantages of this structure:
 Lack of communication with other departments
 Unhealthy competition
 Management issues
 Divisional structure

In a divisional structure, various teams work alongside each other

toward a single, common goal. Each of these divisions has its own
executive who manages how that branch operates, controls its
budgets and allocates its resources. Large companies employ this
type of organizational structure. One example of the divisional
structure is a car company that separates their company by SUV,
electric or sedan vehicle branches. While each branch has its own
function, they all work toward the same goal of making a sale. This
is also known as the multi-divisional structure.
Here are some advantages of this structure:
 Focus on a single good or service
 More centralized leadership
Here are some disadvantages of this structure:
 Poor integration with other divisions
 Competition between divisions
 Lack of communication between divisions
 Potential tax implications
 Flatarchy

In a flatarchy, there are little to no levels of management. A company

using this structure could have only one manager in between its
executive and all other employees. It is called a flatarchy because it
is a hybrid of a hierarchy and a flat organization. This type of
organizational structure is used more by smaller companies since
they have fewer employees, though it can be used in companies of
all sizes. While some companies grow out of this organizational
structure, others continue to use it.
Here are some advantages of this structure:
 Cost efficient
 Fosters good communication
 Higher employee morale
 Faster decision making
Here are some disadvantages of this structure:
 Potential employee conflict
 Leadership confusion
 Matrix structure

In the matrix style of organizational structure, employees are divided

into teams that report to two managers—a project or product
manager along with a functional manager. In essence, a matrix
structure is a combination of various organizational structures.
Because these teams have two managers, a matrix structure
promotes duality and the sharing of resources. Employees working
for companies using the matrix structure have the potential to
widen their skill set since they might be assigned to various projects
requiring different levels of expertise or skills.
Here are some advantages of this structure:
 Fosters open dialogue
 Flexible workplace environment
Here are some disadvantages of this structure:
 Leadership confusion
 Conflicting leadership loyalties
 Potentially more costly
 Roles may not be clearly defined
 Potentially heavy employee workload
 What is a Group?

 Groups where people get along, feel the desire to

contribute to the team, and are capable of
coordinating their efforts may have high-
performance levels. Group can be defined as a
collection of individuals who have regular contact
and frequent interaction, mutual influence, the
common feeling of camaraderie, and who work
together to achieve a common set of goals.
Some other simple ways like: can give the
definition of a group

 Several people or things that are together or in the

same place.
 Several people who are connected by some shared
activity, interest, or quality.
 Several individuals assembled or having some
unifying relationship.
 A set of people who meet or do something together
because they share the same purpose or ideas.
 Types of Groups are;

 Formal Group.
 Informal Group.
 Managed Group.
 Process Group.
 Semi-Formal Groups.
 Goal Group.
 Learning Group.
 Problem-Solving Group
 Friendship Group.
 Interest Group.
Differences between Formal Group and
Informal Group
 Definitions of Group Dynamics

 Group dynamics deals with the attitudes and

behavioral patterns of a group. It can be used as a
means for problem-solving, teamwork, and to
become more innovative and productive as an
organization. The concept of group dynamics will
also provide you with the strengths, success factors
and measures along with other professional tools.
 Meaning and Definitions of Group
Dynamics

 The term ‘group dynamics’ means the study

of forces within a group. Since human beings have an
innate desire for belonging to a group, group
dynamism is bound to occur. In an organization or in
a society, we can see groups, small or large, working
for the well-being.
 The social process by which people interact with one
another in small groups can be called group
dynamism. A group has certain common objectives &
goals. Because of which members are bound together
with certain values and culture.
 Stages of Group Development

The following are the five stages of group development

 Forming
 Storming
 Norming
 Performing
 Adjourning
 Forming:

 The first stage in the life of a group is concerned with

forming a group. This stage is characterized by
members seeking either a work assignment (in a
formal group) or other benefit, like status,
affiliation, power, etc. (in an informal group).
Members at this stage either engage in busy type of
activity or show apathy.
 Storming:

 The next stage in this group is marked by the

formation of dyads and triads. Members seek out
familiar or similar individuals and begin a
deeper sharing of self. Continued attention to the
subgroup creates a differentiation in the group and
tensions across the dyads / triads may appear.
Pairing is a common phenomenon. There will be
conflict about controlling the group.
 Norming:

 The third stage of group development is marked by a

more serious concern about task performance.
The dyads/triads begin to open up and seek out
other members in the group. Efforts are made to
establish various norms for task performance.
 Members begin to take greater responsibility for
their own group and relationship while the authority
figure becomes relaxed. Once this stage is complete,
a clear picture will emerge about hierarchy of
leadership. The norming stage is over with the
solidification of the group structure and a
sense of group identity and camaraderie.
 Performing:

 This is a stage of a fully functional group where

members see themselves as a group and get
involved in the task. Each person makes a
contribution and the authority figure is also
seen as a part of the group. Group norms are
followed and collective pressure is exerted to
ensure the Process of Group effectiveness of the
group.
 The group may redefine its goals Development in
the light of information from the outside
environment and show an autonomous will to
pursue those goals. The long-term viability of the
group is established and nurtured.
 Adjourning:

 In the case of temporary groups, like project team,

task force, or any other such group, which have a
limited task at hand, also have a fifth stage, This is
known as adjourning.
 The group decides to disband. Some members may
feel happy over the performance, and some may be
unhappy over the stoppage of meeting with group
members. Adjourning may also be referred to as
mourning, i.e. mourning the adjournment of the
group.
 Team building

 Definition: Team building is a management

technique used for improving the efficiency and
performance of the workgroups through various
activities. It involves a lot of skills, analysis and
observation for forming a strong and capable team.
The whole sole motive here is to achieve the
organization vision and objectives.
The various steps involved in team building are
as follows:
Identify the Need for Team Building
The manager has first to analyze the requirement of a team
for completing a particular task. It should find out the
purpose of the work to be performed, required skills for
the job and its complexity before forming a team.
Define Objectives and Required Set of Skills
Next comes the chalking down of the organizational
objectives and the skills needed to fulfil it.
Consider Team Roles
The manager considers the various aspects, i.e. the
interactions among the individuals, their roles and
responsibilities, strengths and weaknesses, composition
and suitability of the possible team members.
Determine a Team Building Strategy Now, the
manager has to understand the operational framework
well to ensure an effective team building. He must himself
be assured of the objectives, roles, responsibilities,
duration, availability of resources, training, the flow of
information, feedback and building trust in the team.
 Develop a Team of Individuals
 At this stage, the individuals are collected to form a team
together. Each member is made familiar with his roles and
responsibilities within the team.
 Establish and Communicate the Rules
 The rules regarding the reporting of team members, meeting
schedules, and decision making within the team are discussed.
The individuals are encouraged to ask questions and give their
views to develop open and healthy communication in the
team.
 Identify Individual’s Strengths
 Various team-building exercises are conducted to bring out the
strengths of the individuals. It also helps in familiarizing the
team members with each other’s strengths and weakness.
 Be a Part of the Team
 At this point, the manager needs to get involved with the team
as a member and not as a boss. Making the individuals realize
their importance in the team and treating each member
equally is necessary. The team members should see their
manager as their team leader, mentor and role model.
 Monitor Performance
 Next step is checking the productivity and performance
of the team as a whole. It involves finding out loopholes
and the reasons for it. This step is necessary to improve
the team’s performance and productivity in the long run.
 Schedule Meetings
 One of the most crucial steps is to hold purposeful
meetings from time to time to discuss team performance,
task-related problems and discuss the future course of
action.
 Dissolve the Team
 Lastly, the manager needs to evaluate the results and
reward the individuals on their contribution and
achievement. Finally, the team is dispersed on the
fulfilment of the objective for which it was formed.
 What Is Conflict?

 Conflict is simply differing ideas or actions, often

related to the selfish pursuit of needs (known and
unknown) that end in a state of unrest. It is a necessary
and permanent part of life. The important thing to
remember is that conflict is natural. It can be a slight
conflict that causes no harm or an egregious conflict that
results in irreparable damage.
 Conflict itself is neither good nor bad. When conflict is
addressed maturely with an eye to a positive resolution it
can, in most cases, lead to growth among all the
conflicting parties. There are four main types of conflict,
and they stem from many sources. This lesson reviews
the major types and sources of conflict and offers
examples of each.
Conflict is classified into the following four types:

 Interpersonal conflict refers to a conflict between

two individuals. This occurs typically due to how
people are different from one another. We have
varied personalities which usually results to
incompatible choices and opinions. Apparently, it
is a natural occurrence which can eventually help in
personal growth or developing your
relationships with others. In addition, coming up
with adjustments is necessary for managing this type
of conflict. However, when interpersonal conflict gets
too destructive, calling in a mediator would help so
as to have it resolved.
 Intrapersonal conflict occurs within an
individual. The experience takes place in the
person’s mind. Hence, it is a type of conflict that is
psychological involving the individual’s thoughts,
values, principles and emotions. Interpersonal
conflict may come in different scales, from the
simpler mundane ones like deciding whether or not
to go organic for lunch to ones that can affect major
decisions such as choosing a career path.
 Intragroup conflict is a type of conflict that happens
among individuals within a team. The incompatibilities
and misunderstandings among these individuals lead to an
intragroup conflict. It is arises from interpersonal
disagreements (e.g. team members have different
personalities which may lead to tension) or differences in
views and ideas (e.g. in a presentation, members of the team
might find the notions presented by the one presiding to be
erroneous due to their differences in opinion). Within a team,
conflict can be helpful in coming up with decisions which
will eventually allow them to reach their objectives as a team.
However, if the degree of conflict disrupts harmony among
the members, then some serious guidance from a different
party will be needed for it to be settled.
 Intergroup conflict takes place when a
misunderstanding arises among different
teams within an organization. For instance, the
sales department of an organization can come in
conflict with the customer support department. This
is due to the varied sets of goals and interests of
these different groups. In addition, competition also
contributes for intergroup conflict to arise. There are
other factors which fuel this type of conflict. Some of
these factors may include a rivalry in resources or the
boundaries set by a group to others which establishes
their own identity as a team.
 Conflict Resolution/Grievance Procedure

 Misunderstandings or conflicts can arise in any work

environment. To ensure effective working
relationships, it is important that conflicts be
resolved before serious problems develop. Many
incidents resolve themselves naturally.
I. Pondy’s Conflict Episode Process
1. Latent Conflict:
It is the first stage of conflict-promoting situations appears on
the scene between individuals arid groups. In this stage
potential conflict inducing forces exit. For example, demand
for various resources by departments when some may get and
be satisfied and others may not get and be dissatisfied. Hence
there may exist, a situation between two groups. At this stage
the seed of dissatisfaction have been sown.
2. Felt Conflict:
When one party frustrates the desire of other party, people
perceive that a conflicting situation exists. For example, sales
department may need additional budget for promotional
activities which finance department may not release. The sales
department may attribute lack of finance as potential cause
for fall in scales. Thus, a conflict between the two may brew.
At this stage the conflict does not surface.
 3. Manifest Conflict:
 At this stage, there is not only recognition or
acknowledgement of conflict but also manifestation of conflict
by covert or overt behaviour. It is a stage of open dispute.
Both parties devise their strategies to face each other. Sales
department may make the point for additional funds for
promotional activities especially during festival season.
 Finance department may openly turndown the request since
they misfit have allots additional funds for procurement of
better raw materials for production department. Sales
department may argue that better raw materials have no
meaning unless the facts are brought to the notice of
costumers, which can only be done through promotional
campaign. The debate may be unending and frustrating.
4. Conflict Resolution:
There can be resolution of conflict and once the conflict is
resolved between two parties, there is always a party,
which is looser because the resolution is the outcome of
win-lose or the compromise strategy, a stage is set for
subsequent conflict episode.
5. Conflict Aftermath:
A party, which feels defeated, may start preparations and
be on the lookout for the assault to take the revenge.
Conflict aftermath is a direct function of the results of the
conflict resolution style adopted and exercised in any
given situation.
II. Thomas – Kilmann Conflict Handling
Model
 The strategies commonly adopted by the
organisation are as follows:

 1. Avoidance:
 In this the conflicting parties may either withdraw or
conceal the incompatibility. Organisation uses avoiding
strategies. Where there is clear advantage of waiting to
resolve the conflict. Avoiding is appropriate if companies
are too busy with more important concern.
 We don’t pursue our position, or that of the other person,
and so don’t address the conflict. We might simply not
talk about it, postpone the issue, or withdraw from the
situation. Avoidance is effective when the situation is
charged with emotion that will prevent rational
discussion, when you have no prospect of satisfying your
concerns, (e.g., company policy) or when other people
might be better placed to resolve the problem.
 2. Competition:
 It is a kind of win-lose approach in which a person seeks
to satisfy his or her own interest, regardless of the impact
on the other parties to the conflict. Organisational
strategies are used when they deal with strong
personalities. In this senior person use their power to
diffuse the conflict.
 We aim to assert or ‘win’ our position with no concern for
the needs of the other person. We use whatever power
(rank, intellect, etc.), we can to achieve this goal.
Competing behaviour can be effective in emergency
situations, or where tough actions are required that are
not in the interests of the other person, e.g., cost
reductions, redundancies, rules, and discipline.
 3. Collaboration:
 In collaborating, the intention of the parties is to solve the
problem by clarifying differences rather than by
accommodating various points of view. It is a kind of win-win
solution that allows both parties to achieve their goals. The
use of collaborations is inappropriate when time is of the
essence, issues are unimportant, and goals of other party are
wrong or illegal.
 Collaborating is considered to the one of the best strategies,
especially when the organisation interest are at the stake, this
strategies is generally used when organisation feel that the
concern is important. This strategies is used mostly in all the
organisations, where we have to solve interpersonal conflict. It
promotes creative problem-solving. It takes more time than
other strategies.
 4. Accommodation:
 It is a kind of lose-win situation in it one party seeks to
appease an opponent, that party may be willing to place
opponents interest above his or her own, i.e., in short,
one party willing to be self-sacrificing. When conflict is
upon fairly unimportant issue, organisation in order to
resolve the conflict uses accommodating strategies.
 We neglect our own concerns for the interests of the
other person. We tend towards selfless generosity – even
charity – and are entirely noncompetitive.
Accommodation is useful for the longer-term, e.g., giving
in on this point will build better relations in the future, or
when harmony is more important than this particular
issue.
 5. Compromising:
 It is a well-accepted strategy for resolving conflict. In it
there is no clear winner or loser. It is a kind of situation
in which each party is willing to give up something. Its
use is appropriate when cooperation is important but
time/resources are limited or finding an outcome, even
less than best is better than being without any solution. It
is not suitable when creative solution is essential.
 Compromising strategies come under the second choice
by the organisation. Organisation use compromising
strategy when they are dealing the moderately important
issues. It can often lead to quick solution. We aim for a
solution that both parties can accept, which partially
satisfies their concerns.
 Case Study:

 How Reliance is planning to KILL Amazon in

INDIA? : The BIGGEST BUSINESS WAR IN
INDIAN HISTORY
 https://youtu.be/-d7f71CFACo