Dims 2020 Notes-1

About this DBA 306 Organisational Behaviour (OB) Module
This Organizational Behaviour (OB) Module has been produced by the National Institute of Public
Administration (NIPA). All modules produced by the Institute are structured in the same way, as
outlined below.
How this Organisational Behaviour (OB) Module is structured.
The Module overview

The module overview gives you a general introduction to the module. Information contained in the
module overview will help you determine:
 What you can expect from the course.

 How much time you will need to invest to complete the course.
The overview also provides guidance on:
 Study skills.
 Where to get help.
 Assignments and assessments
 Activity icons
 Units.
We strongly recommend that you read the overview carefully before starting your study.
The Module content

The Module is broken down into 10 units. Each unit comprises:
 An introduction to the unit content.
 Unit outcomes.
 New terminology.
 Core content of the unit.
 A unit summary.
 Learning activities.
 Assignments and/or assessments, as applicable.
For those interested in learning more on this subject, we provide you with a list of additional resources
at the end of the module; these may be books, articles or web sites.
National Institute of Public Administration – Outreach Programmes Division 1

Your comments
After completing this module, we would appreciate it if you would take a few moments to give us your
feedback on any aspect of this course. Your feedback might include comments on:
 Content and structure.
 Reading materials and resources.
 Assignments and Assessments.
 Duration.
 Support (assigned lecturers, technical help, etc.)
Your constructive feedback will help us to improve and enhance this module.
Welcome to this Organisational Behaviour Module

This Organisational Behaviour Module gives an in-depth knowledge of the contents or topics outlined in
the module. It aims to equip the learner with knowledge, skills and values required in managing peoples’
behaviour in organisations.
Module Learning Outcomes
Upon completion of this Module, you will be able to:
Explain the nature of organizations
Identify the theories of organization and management
Relate individual to the organization
Apply leadership theories
Apply motivational theories
Manage morale and stress
Apply principles of the nature of groups in organizations
Apply principles of the nature of authority and power in an organization
Manage conflicts in organizations
Manage change in organizations

Time Frame
Expected duration of this Module is 6 months

Formal study time required is 4 weeks before the beginning of the semester
Self-study time recommended is 4 hours per week

Units in this module
This module is divided in ten (10) units as outlined below:-
1. Nature of organizations
2. Theories of organization and management
3. The individual in the organization
4. Leadership theories
5. Motivational theories
6. Morale and Job stress
7. Principles of the nature of groups in organizations
8. Principles of the nature of authority and power in an organization
9. Conflicts in organizations
10. Organisational change management.
Study skills
As an adult learner your approach to learning will be different to that from

your school days: you will choose what you want to study, you will have
professional and/or personal motivation for doing so and you will most likely
be fitting your study activities around other professional or domestic
responsibilities.
Essentially you will be taking control of your learning environment. As a
consequence, you will need to consider performance issues related to time
management, goal setting, stress management, etc. Perhaps you will also
need to reacquaint yourself in areas such as essay planning, coping with
exams and using the web as a learning resource.
Your most significant considerations will be time and space i.e. the time you
dedicate to your learning and the environment in which you engage in that
learning.
We recommend that you take time now—before starting your self-study—to
familiarize yourself with these issues. There are a number of excellent
resources on the web. A few suggested links are:
 http://www.how-to-study.com/
The “How to study” web site is dedicated to study skills resources. You will
find links to study preparation (a list of nine essentials for a good study
place), taking notes, strategies for reading text books, using reference
sources, test anxiety.

 http://www.ucc.vt.edu/stdysk/stdyhlp.html
This is the web site of the Virginia Tech, Division of Student Affairs. You
will find links to time scheduling (including a “where does time go?” link),
a study skill checklist, basic concentration techniques, control of the study
environment, note taking, how to read essays for analysis, memory skills
(“remembering”).
 http://www.howtostudy.org/resources.php
Another “How to study” web site with useful links to time management,
efficient reading, questioning/listening/observing skills, getting the most out
of doing (“hands-on” learning), memory building, tips for staying motivated,
developing a learning plan.
The above links are our suggestions to start you on your way. At the time of
writing these web links were active. If you want to look for more go to
www.google.com and type “self-study basics”, “self-study tips”, “self-study
skills” or similar.
Need Help? In case you need help, you can contact NIPA at the following website, phone
number or you can email.
www.nipa.ac.zm
NIPA-Main Campus – Outreach Programmes Division
Phone Numbers:+260-211-228802-4
Fax:+260-211-227213
e-mail address: [email protected]
The teaching assistant for routine enquiries can be located from the Outreach
Division from 08:00 to 17:00 during weekdays or can be contacted on the
numbers and email address indicated above.
Library
There is a library located at the main campus along Dushanbe Road. The
library opens Monday to Friday from 08:00 to 17:00.

Assignments There shall be two assignments given for this module.
The assignment will be written during residential school and should be
handed in before the end of residential school.
Assignments should be submitted to Outreach Programmes Division
Registry.
Assessments There shall be a minimum of two (02) assessments given to the students
undertaking this subject
These assessments shall be teacher marked assessments.
The assessments shall be determined and given by the course tutors after
you have covered a number of topics
The teacher/tutor shall ensure that the assessments are marked and
dispatched to the student within a period of two weeks.

Getting around the Organizational Behaviour Module
Margin icons
While working through this organizational behaviour module, you will notice the frequent use of
margin icons. These icons serve to “signpost” a particular piece of text, a new task or change in
activity; they have been included to help you to find your way around this module.
A complete icon set is shown below. We suggest that you familiarize yourself with the icons and
their meaning before starting your study.
Activity Assessment Assignment Case study
Discussion Group Help Note it!

activity
Outcomes Reading Reflection Study skills
Summary Terminology Time Tip

UNITB11. 1: THE NATURE OF ORGANISATIONS
Organizations of one form or another are a necessary part of our society and serve many
important needs. The decisions and actions of management in organizations have an increasing
impact on individuals, other organizations and the community. It is important, therefore, to
understand how organizations function and the pervasive influences which they exercise over the
behaviour of people.
Organizations are social systems which combine science and people that are technology and
humanity. If one wishes to work in them or to manage them, it is necessary to understand how
they operate. This unit introduces the nature of organizations and concepts of organisational
behaviour, commonly referred to as OB in short. This unit is divided into two part units, namely;
organisational behaviour concepts, and contributing disciplines to the study of OB.
1.0 INTRODUCTION
Learning Outcomes
After studying the unit, you will be able to:
 Define an organization and related concepts.

 Describe the components or elements of an organisation.
 Explain organisation structures and culture.
 Define organisational behaviour.
1.1 What is an Organisation?
An organization is a social entity that has a collective goal and is linked to an external
environment. The word is derived from the Greek word organon, itself derived from the
better-known word ergon which means "organ" – a compartment for a particular task.
An organisation has also been defined as a consciously coordinated social unit

composed of two or more people, those functions on a relatively continuous basis to
achieve a common goal or set of goals.
There are a variety of legal types of organizations, including corporations, governments,

non-governmental organizations, international organizations, armed forces, charities,
not-for-profit corporations, partnerships, cooperatives, and universities.
1.2 Organizational Goals
A goal is a future expectation. It is something the organization is striving to accomplish.

The meaning of the goal is subject to a number of interpretations. It can be used in a
broad sense to refer to the overall purpose of an organization. A goal may be used to
refer more specific desired accomplishment. For example, to produce and sell a given

number of range of books within a given period of time.
1.2.1 Functions of Goals
 Goals provide a standard of performance. They focus attention on the activities

of the organization and the direction of the staffs.
 Goals provide a basis for planning and control related to the activities of the
organization.
 Goals influence the structure of the organization and help to determine the nature
of technology employed.
 Goals are basis for objectives and policies of the organization
 Goals are important feature of work organization. Goals should be stated clearly,
emphasized and communicated to all employees of the organization in order to
achieve effectiveness.
 Goals help to develop commitment of individuals and group to the activities of
the organization. They focus attention on purposeful behavior and provide a
basis for motivation and reward system.
1.3 Organisational Structure and culture
1.3.1 Organisational Structure
An organizational structure defines the scope of acceptable behavior within an

organization, its lines of authority and accountability, and to some extent the
organization's relationship with its external environment. More specifically, it shows the
pattern or arrangement of jobs and groups of jobs within an organization and yet it is
more than an organizational chart. The structure outlines the following:
Hierarchy of Authority: This refers to the distribution of authority among

organizational positions, and authority grants the position holder certain rights including
right to give direction to others and the right to punish and reward.
Division of Labor: This refers to the distribution of responsibilities and the way in
which activities are divided up and assigned to different members of the organization.
Span of Control: This refers to the total number of subordinates over whom a manager
has authority.
Specialization: This refers to the number of specialties performed within the

organization.
Standardization: Refers to the existence of procedures for regularly recurring events or

activities.
Formalization: This refers to the extent to which rules, procedures, and

communications are written down.
Centralization: This refers to the concentration of authority to make decision.

Complexity: This refers to both vertical differentiation and horizontal differentiation.
Vertical differentiation outlines the number of hierarchical levels and horizontal
differentiation highlights the number of units within the organization (e.g. departments,
divisions).
Functions/purpose of an organisation structure
The structure of an organization serves the following purposes/functions:
 It enables an organisation to achieve economic and efficient performance of

an organization and the level of resource utilization thus preventing
duplication of effort and wastage of organisational resources.
 It enables monitoring of the activities of the organization.
 It provides accountability for areas of work undertaken by groups and
individual members of the organization.
 It facilitates the coordination of different parts of the organization and
different areas of work.
 It provides flexibility for an organisation to respond to future demands and
developments and to adapt to changing environmental influences
 It also provides social satisfaction of members working in the organization.
Effects of a poorly designed organisation structure
A poorly designed Organisational Structure the can have negative effects in an

organization for example:
i. Low motivation and morale may result from apparently inconsistent and
arbitrary decisions, insufficient delegation of decision making, and lack of clarity
in job definition and assessment of performance, overloaded managers etc.
ii. Conflict and lack of coordination may result from conflicting goals and people
working at cross purposes because of lack of clarity of objectives and priorities.
iii. Poor response to new opportunities and external change may result from failure
to establish specialist job concerned with forecasting environmental change.
iv. Rising costs may result from long hierarchy of authority with a high proportion
of senior positions, excessive administrative work at the expense of productive
work.
v. Wastefulness may arise from duplication of effort and resources.
1.3.2 Organisational Culture
Organization culture refers to the specific collection of values and norms that are shared
by people and groups in an organization and that control the way they interact with each
other and stakeholders outside the organization.
Edgar Schein (1985) has defined Organizational Culture as; “A pattern of basic
assumptions, invented, discovered or developed by a given group, as it learns to cope
with work place issues and adapting to the external environment. It represents things
that have worked well enough in the past to be considered valid and therefore to be
taught to new members as the correct way to perceive, think, feel and behave.”
Types Of Organizational Culture
Handy (1993) in discussing organization culture has highlighted some of the alternative
types of culture favoured by many organizations. The four main types are:
Power Culture: A power culture is one based on the dominance of one or a small
number of individual within an organization. Control radiates from the center like a web;
it has few rules and little bureaucracy. A power culture is found in small and medium
entrepreneurial organizations and relies on trust, empathy and how the person
communicates for its effectiveness. Decisions in a power culture are centralized around
one key individual.
Role Culture: A role culture exists in large hierarchical organizations in which

individuals have clear roles (jobs) to perform which are closely specified. Individuals
tend to work closely to their job descriptions and tend to follow the rules rather than to
work in a creative way. It is often stereotyped as a bureaucracy and works by logic and
rationality. Role culture rests on the strengths of strong organizational ‘pillars’ - the
functions of specialists in, for example, finance, purchasing and production. The work
of, and interaction between, the pillars is controlled by procedures and rules, and
coordinated by a small band of senior managers.
Task Culture: Task cultures exist when teams are formed to complete particular tasks.
In terms of structure the task culture can be likened to a net, some strands of which are
stronger than others, and with much of the power and influence at the interstices. An
example is the matrix organization. Task culture seeks to bring together the right
resources and people, and utilizes the power of the group. Influence is widely spread
and based more on expert power than on position or personal power.
Person Culture: is where the individual is the central focus and any structure exists to
serve the individual within it. When a group of people decide that it is in their own
interests to band together to do their own thing and share office space, equipment or
clerical assistance then the resulting organization would have a person culture. Example
is group of barristers, architects, doctors or consultants. Although it is found in only a
few organizations many individuals have a preference for person culture, for example
university professors and specialists. Management hierarchies and control mechanisms
are possible only by mutual consent. Individuals have almost complete autonomy and
any influence over them is likely to be on the basis of personal power.
Functions of Organization Culture

An awareness of one’s organization culture is important for managers since one of their
tasks is to ensure that values and assumptions underlying the culture are passed on to all
staff. Managers therefore should have an accurate understanding of organisational in
order to direct activities in a productive way and to avoid the destructive influence of

having employees who are not committed to the organisation or company’s goals. For
the employees organisational culture serves a number of important functions, such as;
 It defines boundaries, that is, it creates distinctions between one organization

and others and as such it conveys a sense of identity for organization
members.
 It generates commitment to higher order goals.
 It enhances stability of the social system stability.
 Culture also serves as a regulatory mechanism for employees’ attitudes and
behaviour.
 Has the potential to enhance performance, satisfaction, and expectations,
attitudes, and behaviour in organizations.
How New Employees Learn about organizational Culture
All new employees have to learn and understand their organizational culture if they have
to fit and be accepted into the organization. This means they have to be socialized into
that culture. Culture is transmitted to employees through a number of forms, the most
potent being:
 Orientation/induction programmes
 Story telling
 Organisation rituals
 Material symbols
 Language
Culture may also be transmitted and maintained through a number of ways, such as:
 What managers and teams pay attention to, for example the events that get
noticed and commented on.
 Reactions to incidents in the organizations.
 Managerial role modeling, teaching and coaching i.e. culture can change
through the actions and behaviours of leaders.
 Criteria used in the organisation for rewarding, selecting and promoting
employees.
 Organization rites, ceremonies and stories.
1.4 ORGANISATIONAL BEHAVIOUR CONCEPTS
What is Organisational Behaviour?
Organisational behaviour is concerned with the study of the behaviour of people within
an organisational setting. It involves the understanding, prediction and control of

human behaviour (Mullins2001). Most definitions of organisational behaviour (OB) are
generally along the lines of: the study and understanding of individual and group behaviour,
and patterns of structure in order to help improve organisational performance
and effectiveness.
Robbins and Judge(2008 )define organizational behavior as a field of study that investigates the
impact that individuals, groups and structure have on behavior within organization. It is the study
and application of knowledge about how people act within organizations. It is a human tool for
human benefit. It applies broadly to the behavior of people in all types of organizations, such as
business, government, schools and services organizations. It covers three determinants of
behavior in organizations: individuals, groups, and structure. OB is an applied field; it applies the
knowledge gained about individuals, and the effect of structure on behavior in order to make
organizations work more effectively. The main three goals of OB are to:
i) Understand behaviour of people
ii) Predict behaviour
iii) Control behaviour
Contributing Disciplines to Organisational Behavior
These include; psychology, sociology and anthropology. Each discipline applies its own
methodology to the prediction of behavioural problem, and each provides managers with insight
into such important areas as individual differences, cultural influences, motivation and
organizational design.
Psychology
Psychology has perhaps the most influence on the field of organizational behavior because it is a
science of behavior. Almost all aspects of behavior are studied by psychologists. Psychology
deals with studying human behavior that seeks to measure explain and sometimes change the
behavior of humans and other animals. Psychologists primarily are interested to predict the
behavior of individuals to great extent by observing the dynamics of personal factors,
environmental and situational factors.
Sociology
The major focus of sociologists is on studying the social systems in which individuals fulfill their
roles. The focus of attention is centered on group dynamics. They have made their greatest
contribution to OB through their study of group behavior in organizations, particularly formal
and complex organizations. Sociological concepts, theories, models and techniques help
significantly to understand better the group dynamics, organizational culture, formal organization
theory and structure, organizational technology, bureaucracy, communications, power, conflict
and inter-group behavior. Psychologists are primarily interested to focus their attention on the
individual behavior.
Social Psychology
This refers to the scientific investigation of how the thoughts, feelings and behavior of
individuals are influenced by the actual, imagined or implied presence of others. What makes
social psychology social is that it deals with how people are affected by other people who are
actually physically present or who are imagined to be present or even whose presence is implied.
Among them the most important topics relevant to organizational behavior field are behavioral
change, attitude change, communication, group process and group decision making. Social
psychologists have made significant contributions in measuring, understanding and changing
attitudes, communication patterns, they ways in which groups can satisfy individual needs and
group decision making process.
Anthropology
The main aim of anthropology is to acquire a better understanding of the relationship between
the human being and the environment. Adaptations to surroundings constitute culture. The
manner in which people view their environment is a part of culture. Culture includes those ideas
shared by groups of individuals and languages by which these ideas are communicated. In
essence, culture is a system of learned behavior. Their work on culture and environment has
helped us to understand differences in fundamental values, attitudes and behavior among people
in different countries and within different organizations.
Political Science:
Contributions of political scientists are significant to the understanding of behavior in
organizations. Political scientists study the behavior of individuals and groups within a political
environment. They contribute to understanding the dynamics of power centers, structuring of
conflict and conflict resolutions tactics, allocation of power and how people manipulate power
for individual self interest. The knowledge of political science can be utilized to the study the
behavior of employees, executives at micro as well as macro level.
Economics
Economists have contributed to organizational behaviour to a great extent in designing the
organizational structure. Transaction cost economics influence the organization and its structure.
Transaction costs economics implies costs components to make an exchange on the market. This
transaction cost economics examines the extent to which the organization structure and size of an
organisation varies in response to attempts to avoid market failures through minimising
production and transaction costs within the constraints of human and environmental factors.
Costs of transactions include both costs of market transactions and internal co-ordination. A
transaction occurs when a good or service is transferred across a technologically separable
barrier.
Unitsummary ssummary
This unit has explored the nature of organizations. An organization is defined as a deliberate
arrangement of people to accomplish some specific purpose. Organizations share three common
characteristics which are:
 Firstly, each organization has a distinct purpose. This purpose is typically expressed in terms of a
goal or a set of goals that the organization hopes to accomplish. Secondly, each organization is
composed of people. One person working alone is not an organization, and it takes people to
perform the work that is necessary for the organization to achieve its goals.
 Thirdly, all organizations develop some deliberate structure so that their members can do
their work. That structure may be open and flexible; with no clear and precise delineation
Organizational structure may be defined as the way in which the interrelated groups of an
organization are constructed.
The unit has also provided for definition of organisational behaviour which is the study and
application of knowledge about how people as individuals and groups act in organizations. The
main objective of organizational behaviour is to make managers more accurate and effective at
describing, understanding, predicting and controlling human behaviour at work. Organisational
behaviour, being an interdisciplinary subject, draws heavily from other behavioural sciences
such as psychology, sociology and anthropology.
Activity 1.0
1. What is an organization?
2. What are goals and what purpose do they serve in an organisation?
3. Define an organisational structure and state its purposes.
4. Describe the four types of organisation culture according to

Handy(1993).
4. Define OB and explain the three objectives that OB attempts to

achieve?
5. Explain the disciplines which contribute to organisational

behaviour?

UNITB11. 2: THEORIES OF ORGANISATION AND MANAGEMENT
1.0 Introduction
A theory is a coherent group of assumptions put forth to explain the relationship between two or
more observable facts and to provide a sound basis for predicting future events.
Learning Outcomes
 Explain the classical school of management and organisation theories.

 Describe Bureaucracy
 Explain the Human Relations School.
 Describe the Systems and Contingency theories.
2.1 Classical School of Management and Organisation
One of the first schools of management thought, the classical management theory, developed
during the Industrial Revolution when new problems related to the factory system began to
appear. Managers were unsure of how to train employees (many of them non-English speaking
immigrants) or deal with increased labor dissatisfaction, so they began to test solutions. As a
result, the classical management theory developed from efforts to find the “one best way” to
perform and manage tasks. This school of thought is made up of two branches: classical
scientific and classical administrative, described in the following sections.
2.1.1 Scientific Management Theory
The classical scientific management arose because of the need to increase productivity and
efficiency. The emphasis was on trying to find the best way to get the most work done by
examining how the work process was actually accomplished and by scrutinizing the skills of the
workforce. The classical scientific school owes its roots to several major contributors, including
Frederick Taylor, Henry Gantt, and Frank and Lillian Gilbreth.
Frederick Taylor is often called the “father of scientific management.” Taylor believed that
organizations should study tasks and develop precise procedures. As an example, in 1898, Taylor
calculated how much iron from rail cars Bethlehem Steel plant workers could be unloading if
they were using the correct movements, tools, and steps. The result was an amazing 47.5 tons per
day instead of the mere 12.5 tons each worker had been averaging. In addition, by redesigning
the shovels the workers used, Taylor was able to increase the length of work time and therefore
decrease the number of people shoveling from 500 to 140. Lastly, he developed an incentive
system that paid workers more money for meeting the new standard. Productivity at Bethlehem
Steel shot up overnight. As a result, many theorists followed Taylor's philosophy when
developing their own principles of management.

Taylor’s Scientific management principles include the following:
 Developing new standard methods for doing each job

 Selecting, training, and developing workers instead of allowing them to choose their own
tasks and train themselves
 Developing a spirit of cooperation between workers and management to ensure that work is
carried out in accordance with devised procedures
 Dividing work between workers and management in almost equal shares, with each group
taking over the work for which it is best fitted.
2.2 Bureaucracy
In the late 1800s, Max Weber disliked that many European organizations were managed on a
“personal” family-like basis and that employees were loyal to individual supervisors rather than
to the organization. He believed that organizations should be managed impersonally and that a
formal organizational structure, where specific rules were followed, was important. In other
words, he didn't think that authority should be based on a person's personality. He thought
authority should be something that was part of a person's job and passed from individual to
individual as one person left and another took over. This non personal, objective form of
organization was called a bureaucracy.
Weber believed that all bureaucracies have the following characteristics:
 A well-defined hierarchy. All positions within a bureaucracy are structured in a way that
permits the higher positions to supervise and control the lower positions. This clear chain of
command facilitates control and order throughout the organization.
 Division of labor and specialization. All responsibilities in an organization are specialized
so that each employee has the necessary expertise to do a particular task.
 Rules and regulations. Standard operating procedures govern all organizational activities to
provide certainty and facilitate coordination.
 Impersonal relationships between managers and employees. Managers should maintain
an impersonal relationship with employees so that favoritism and personal prejudice do not
influence decisions.
 Competence. Competence, not “who you know,” should be the basis for all decisions made
in hiring, job assignments, and promotions in order to foster ability and merit as the primary
characteristics of a bureaucratic organization.
 Records. A bureaucracy needs to maintain complete files regarding all its activities.
2.2.3 Human Relations School: Elton Mayo
The human relations movement grew from the Hawthorne studies which were conducted by a
group of researchers led by Elton Mayo and Fritz Roethlisberger of the Harvard Business School
who were invited to join in the studies at the Hawthorne Works of Western Electric Company,
Chicago. The experiments lasted up to 1932. The Hawthorne Experiments brought out that the
productivity of the employees is not the function of only physical conditions of work and money
wages paid to them. Productivity of employees depends heavily upon the satisfaction of the
employees in their work situation. Mayo’s idea was that logical factors were far less important
than emotional factors in determining productivity efficiency. Furthermore, of all the human
factors influencing employee behaviour, the most powerful were those emanating from the
worker’s participation in social groups. Thus, Mayo concluded that work arrangements in
addition to meeting the objective requirements of production must at the same time satisfy the
employee’s subjective requirement of social satisfaction at his work place. The Hawthorne
experiment consists of four parts. These parts are briefly described below:-
1. Illumination Experiment.
2. Relay Assembly Test Room Experiment.
3. Interviewing Programme.
4. Bank Wiring Test Room Experiment.
Stage 1. Illumination Experiment:
This experiment was conducted to establish relationship between output and illumination. When
the intensity of light was increased, the output also increased. The output showed an upward
trend even when the illumination was gradually brought down to the normal level. Therefore, it
was concluded that there is no consistent relationship between output of workers and
illumination in the factory. There must be some other factor which affected productivity.
Stage 2. Relay Assembly Test Room Experiment:
This phase was aimed at knowing not only the impact of illumination on production but also
other factors like length of the working day, rest hours, and other physical conditions. In this
experiment, a small homogeneous work-group of six girls was constituted. These girls were
friendly to each other and were asked to work in a very informal atmosphere under the
supervision of a researcher. Productivity and morale increased considerably during the period of
the experiment. Productivity went on increasing and stabilized at a high level even when all the
improvements were taken away and the pre-test conditions were reintroduced. The researchers
concluded that socio-psychological factors such as feeling of being important, recognition,
attention, participation, cohesive work-group, and non-directive supervision held the key for
higher productivity.
After stage 2, it was realized that the women were responding to the changes in conditions but
were responding to the fact that they were the centre of attention in organization. They felt they
were being treated as a special group. It was at this stage of experiments that the researchers
realized that they had not just been studying physical conditions at the work place, but also
employee attitudes and values. This unintended result is called the Hawthorne Effect.
Stage 3. Interview Programme:
The objective of this programme was to make a systematic study of the employees’ attitudes
which would reveal the meaning which their “working situation” has for them. The researchers
interviewed a large number of workers with regard to their opinions on work, working conditions
and supervision. Initially, a direct approach was used whereby interviews asked questions
considered important by managers and researchers. The researchers observed that the replies of
the workmen were guarded. Therefore, this approach was replaced by an indirect technique,
where the interviewer simply listened to what the workmen had to say. The findings confirmed
the importance of social factors at work in the total work environment.
Stage 4. Bank Wiring Test Room Experiment:
This experiment was conducted by Roethlisberger and Dickson with a view to develop a new
method of observation and obtaining more exact information about social groups within a
company and also finding out the causes which restrict output. The experiment was conducted to
study a group of workers under conditions which were as close as possible to normal. This group
comprised of 14 workers. After the experiment, the production records of this group were
compared with their earlier production records. It was observed that the group evolved its own
production norms for each individual worker, which was made lower than those set by the
management. Because of this, workers would produce only that much, thereby defeating the
incentive system. Those workers who tried to produce more than the group norms were isolated,
harassed or punished by the group. The findings of the study are:-
 Each individual was restricting output.

 The group had its own “unofficial” standards of performance.
 Individual output remained fairly constant over a period of time.
 Informal groups play an important role in the working of an organization.
The main findings of Hawthorne studies were as follows:

1. Physical environment at work place (i.e., working conditions) do not have any material effect
on the efficiency of work.
2. Social or human relationship influenced productivity more directly than changes in working
conditions.
3. Favorable attitudes of workers and work-teams towards their work were more important
factors determining efficiency.
4. Fulfillment of workers social and psychological needs have a beneficial effect on the morale
and efficiency of workers.
5. Employee groups formed on the basis of social interactions and common interest exercised a
strong influence on workers, performance. In other words, informal organization controlled the
norms established by the groups in respect of each member's output.
6. Workers cannot be motivated solely by economic reward. More important motivators are job
security, recognition by superiors and freedom to take initiative and to express their individual
opinions as matters of their own concern.
The Harvard researchers concluded that the way people were treated had an important impact on
performance; individual and social processes played a major role in shaping worker attitudes and
behavior. Therefore, management must recognize the importance worker's needs for recognition
and social satisfaction. Mayo termed this concept of the social man: individuals are motivated
by social needs and good on-the-job relationships and respond better to work-group pressure that
to management control activities.
2.4 Systems Theory
The systems theory approach to management is based on the assumptions and ideas of a biologist
named Ludwig von Bertalanffy. Von Bertalanffy approached the field of science from the
perspective that each discipline studies forms of systems that are composed of interrelated
subsystems. Basically, a system is an interrelated set of elements functioning as a whole.
Examples of systems would be plant cells, a clock, a hospital, or the human body.
The business organisation is an open system. An open system is one that must continually seek
resources from the environment in order to survive. An open system obtains information,
financial, material, and human resources from the environment. The transformed resources must
then be’ exported to the environment. Organizations characterize an open system in that
resources must be purchased from outside suppliers, and customers must be willing to purchase
the goods or services transformed by the production process of the organization in order for the
organization to survive. There is continual interaction with the broader external environment of
which it is part. The systems approach views the organisation within its total environment and
emphasises the importance of multiple channels of interaction. The systems approach views the
organisation as a whole and involves the study of the organisation in terms of the relationship
between technical and social variables within the system. Changes in one part, technical or
social, will affect other parts and thus the whole system.
Von Bertalanffy emphasized that the survival or failure of the system was dependent on the
interrelation of subsystems 'and their contribution to the overall purpose of the system. For
example, activities in a production department will be determined largely by the sales
department, which in turn will be dependent on budget allocations from the accounting
department, which in turn is dependent on the cost efficiency of the production department, and
so forth. The implication is that no department is fully independent of another; it cannot act
independently or make decisions without considering their effect on other departments.
The implication of systems theory for managers is that understanding the nature of the
organization begins with knowledge of the various factors that impinge on organizational life.
Workers, technology, leaders, values, goals, and motivations do not exist in a vacuum; all these
factors are integrated and affect each other, and actions taken to correct a malfunction in one
subsystem must be carefully analyzed to avoid disrupting other subsystems.
Systems theory has had a major influence on the study and practice of management. Viewing an
organization as a system of interdependent subsystems enables managers to comprehend more
fully the implications of their actions.
2.5 Contingency Theory
Early management thinkers such as Taylor, Fayol and Weber presented principles of
management that they generally assumed to be universally applicable. Later research found
exceptions to many of their principles. Contingency theory argues that management is not and
cannot be based on simplistic principles to be applied in all situations, different and changing
situations require managers to use different approaches and techniques. The contingency
approach sometimes called the situational approach states that organizations are different, face
different situations or contingencies, and require different ways of managing the situations.
Proponents of this theory recognize that differences exist between and within organizations.
According to the theory situational contingencies influence the strategies, structures and
processes that result in high performance and there is more than one way to reach a goal.
Managers must therefore adapt their organizations to the situation or change the situation to fit
the organization. A contingency is an uncertain event, one that happens by chance.
Contingencies are also called variables and these include the following:
Organisation Size – As size increases, the problems of coordination arises. For instance, the
type of organization structure appropriate for an organization of 50,000 employees is likely to be
inefficient for an organization of 50 employees.
Routineness of Task Technology – to achieve its purpose an organization uses technology.

Routine technologies require organizational structures, leadership styles and control systems that
offer from those required by customized or non-routine technologies.
Environmental Uncertainty - the degree of uncertainty caused by environmental changes

influence the management process. What works best in a stable and predictable environment may
be totally inappropriate in a rapidly changing and unpredictable environment.
Individual differences – individuals differ in terms of their desire for growth, autonomy
tolerance of ambiguity and expectations. These and other differences are particularly important
when managers select motivation techniques, leadership styles and job designs.
According to the theory, depending on these contingencies, a manager may be able to categories
the situation and based on training, research and experience, use the proper strategy, organization
structure, or management process to achieve organizational goals. The primary value of the
contingency approach is that it stresses that there are no simplistic or universal rules for
managers to follow.
The theory is useful in today’s organisation, however it is limited in that it has not identified all
the contingencies that can affect the running of an organization. Studies have shown that there
are numerous contingencies and not knowing all of them may affect organizational performance
negatively. The theory may not be applicable to all managerial issues – especially those that
require proven methods of solving e.g. those that occur all the time need permanent ways of
solving and not adhoc solutions which may change according to managers and situations. It also
Depends too much on individual managers to find their own solutions to organizational
problems. This may not be good as they will be no uniformity in the decision making process
and managers who are not very innovative may find it difficult to make effective decisions.
Unit
The Unit has highlighted a number
summary
The Unit has highlighted a number of organisation and management theories such as the classical
theories which is made up of scientific management theory and administrative management
theory, Human relations, and contemporary theories such as systems and contingency. It has
been discovered that each of these theories has both merits and demerits and despite a few short
comings, they are being practiced up to this day.

Activity 2.0
1. Explain the principles of scientific management.
2. What are the contributions of Bureaucracy by Max Weber?
3. Discuss the relevancy of Human Relations theory.
4. Explain the Systems theory and contingency theoryof management

UNIT B11.3: THE INDIVIDUAL AND THE ORGANISATION
1.0 Introduction
Individuals have different abilities, personalities, learning experiences and attitudes. It is not
surprising that they perceive work in different ways. Differences between individuals can be a
source of developing creativity or the root of conflict and frustration. The skill of management is
to be able to match the needs of the individual with the needs of the organisation so goals can be
met and satisfaction achieved. Emphasizing individual differences and valuing diversity is a key
driver in the search for equality at work. This unit discusses individual differences or
characteristics that shape employee behaviours in the organisation. These include; personality,
perception and learning.
2.0: Personality
This sub unit focuses on the concept of personality. Personality is a distinctive and stable pattern
of behaviors, thoughts, motives and emotions that characterize an individual over time.
if managers are able to understand certain dimensions of personality traits exhibited by
individuals, they can predict confidently to a great extent the daily behavior of employees.
Learning Outcomes
After studying the sub unit, you will be able to:
 Explain the factors that determine an individual’s personality.

 Realize the importance of key personality traits relevant to work behavior.
 Understand the Big Five Personality traits and MBTI Personality types and its
implications in selection, training, formation of teams etc.
2.1 Definition of Personality
Personality can be defined as the consistent psychological patterns within an individual that
affect the way they interact with others and the situations they encounter.
Personality is also defined as relatively stable and enduring characteristics that determine our
thoughts, feelings and behavior.
2.2Personality Determinants
There are several factors that determine the formation or shaping of our personality. Among
them the three major factors are: Heredity, Environment and Situation.
i) Heredity
The genetic components inherited from our parents at the time of conception determine strongly
the personality characteristics of an individual. The color, height, physical statutory, facial

attractiveness, gender, temperament, muscle composition, inheritable diseases etc are considered
to be inherited from our parents.
ii) Environment
The culture in which people are brought up in their lives and the type of socialization process
such as family’s child rearing practices, socio economic status of the family, number of children
in a family, birth order, education of the parents, friends and peer group pressures, religious
practices, the type of schooling and recreational activities, pastime behavior etc play a critical
role in shaping our personalities.
iii) Situation
The type of specific situation which a person encounters also equally shapes the type of
personality characteristics. For example, an individual’s exposure to a job interview and the type
of experiences encountered during that time will shape certain personality characteristics.
Similarly, going for a picnic with friends and encountering the type of experiences whether
pleasant and unpleasant will shape the personality characteristics of individuals.
2.3 Personality Traits
i) Big Five Personality Traits

There are five Big Personality Traits which have a significant impact in individual’s life. They
are as follows:
a) Extroversion: Extroverts are sociable, lively, and gregarious and seek outward
interaction. Such individuals are likely to be most successful working in marketing division,
public relations etc. where they can interact face to face with others. Introverts are quite,
reflective, introspective and intellectual people, preferring to interact with a small intimate
circle of friends. Introverts are more likely to be successful when they can work on highly
abstract ideas (accountant, R&D work etc) in a relatively quite atmosphere.
b) Agreeableness: This refers to the extent to which individuals agreeing and cooperating
with others. Highly agreeable people are cooperative, warm and trusting. People who score
low on agreeableness are cold, disagreeable and antagonistic. This characteristic is very
important and critical in attaining a successful achievement in their life.
c) Conscientiousness: This refers to the extent to which people are responsible and
dependable in their work and life. A highly conscientiousness person is responsible,
organized, dependable and persistent. They are likely to move upward direction very quickly
and attain remarkable achievement in their life. Those who score low on this dimension are
easily distracted, disorganized and unreliable.
d) Emotional Stability: This refers to the extent to which people have the ability to
withstand stress. People with positive emotional stability tend to be calm, self confident and
secure. Those with highly low level of emotional stability tend to be nervous, anxious,
depressed and insecure.
e) Openness to experience: This refers to the extent to which people are more imaginative,
artistic sensitivity and intellectualism. Individuals tend to vary widely ranging from
conservative to creative or artistic. Extremely open people are creative, and artistically
sensitive. Whereas not so open category personnel are very conservative and find comfort in
the familiar or routine activities.
ii) The Myer Briggs Type Indicator
MBTI describes four dimensions of Personality Types:
a) Extroversion versus Introversion

This deals with whether the focus of attention is directed towards outwardly or inwardly.
Extroversion
Extroverted attention flows outward to the world of objects and people or external ideas.
They are interacting more with people. Extroverts are usually active, sociable, like variety
and stimulation, and are often good speakers, sales people or public relations professionals.
Introversion
Introverted attention focused on the subjective, inner world of thoughts, feelings and ideas.
Introverts like quit reflection, can concentrate on one idea or thought for longer than an
extrovert, and are less active and prone to change.
b) Sensing Versus Intuition:

This aspect deals with the ways of collecting information and ideas.
Sensing
A person with a sensing preferences focuses on the specific, practical and tangible. The
sensing person relies more on the physical or material reality of the world of the five senses:
touch, sight, sound, taste or smell. Sensing managers take in information through their
senses and attend to the details of the problem. They like to solve problems in standard
ways. They are patient with routine details and are precise in their work. They distrust
creative inspirations and usually work all the way through to reach conclusions. They
emphasize action, urgency and bottom-line results.
Intuition
This person relies more on their insights and based on that they guess, assume and draw the
inferences. Ideas, associations or creative process often accompany the presence of intuition.
They focus on the relationships and connections between facts. Intuition manager like
solving new problems and are impatient with routine details. They perceive the problem in
its totality and consider several alternatives simultaneously. They are imaginative and
futuristic, enjoying mind testing games..
c) Thinking versus Feeling:

These deal with the way people make decisions.
Thinking
The person with a preference for thinking tends to be objective, analytical and impersonal in
decision and judgments. Thinking managers are logical and analytical in their problem
solving and search for additional information in a logical manner.
Feeling
People who use feelings to make decision are more likely to be empathetic, loyal, and
appreciative and tactful. Feeling types consider the person and are likely to bend the rules if
the situation warrants. Feeling managers heavily emphasize the human aspects in dealing
with organizational problems and is more process oriented. They enjoy pleasing people and
avoid conflicts.
d) Judgment versus Perception

This aspect deals with the amount of control a person has over events and organizing things.
Judgment
The strong Judgment oriented people tend to live in a planned, decided and orderly way,
wanting to regulate their life and control events. They are given more responsibility and
authority because their operating mode is stable and predictable.
Perception
Perceptive people tend to live in a flexible, spontaneous way, wanting to understand life and
adapt to it. They often appear to be more relaxed and less organized than judging types and
is less attracted to schedules and routines.
iii) Personality Traits Relevant To Work Place
Some of the important personality factors that determine what kinds of behaviors are exhibited at
work include need patterns, locus of control, introversion and extroversion, tolerance of
ambiguity, self-esteem and self-concept, authoritarianism and dogmatism, Machiavellianism,
Type A or B Personality and work ethic. Some of these are briefly discussed below:
Self Esteem: It refers to the individuals’ self worthiness and the extent to which they regard
themselves as capable, successful, important and worthwhile. People who feel good about
themselves will always produce good results. Studies of self-esteem show that it is closely related
to mental health. People with low self-esteem are more likely to suffer depression and greater
stress. People with positive self-esteem adjust to life better and deal everyday problems more
effectively. Individuals’ with high self esteem will try to take up more challenging assignments
and be successful, which in turn, enhance their overall self-concept. People with high self esteem
would tend to classify themselves as highly valuable in the organization.
Locus of Control: This refers to the extent to which people tend to have control over their own
fate and life. There are two type of locus of control. The Internal Locus of Control refers to those
who believe that they control what happens to them and shape the course of their evens in their
lives, whereas the External Locus of Control believe that what happens to them is controlled by
outside forces such as luck or chance. Internals always believe in putting more effort and seek
more job related information, rely more on their own abilities and judgment at work, and more
actively seek opportunities for advancement.
Self Efficacy: This refers to the belief that a person has in his/her capability to perform a specific
task. People with high self-efficacy will prefer to have moderate level of task difficulty, strong
self confidence and conviction in the chosen tasks and possess high expectation in completing the
assignment across the entire situation. Employees with high self-efficacy respond to specific
negative feedback about their performance with increased motivation and effort, while those with
low self-efficacy are more likely to give up and reduce their motivation.
Self-Monitoring: This is the extent to which a person has the ability to adjust his or her behavior
to external or situational factors. Those with high self-monitoring will be more sensitive and
notice the significant changes occurring in the environment and able to adapt them by adjusting
their behavior. High self-monitors are capable of exhibiting a striking contrast between their
public persona and their private self. Low self-monitors cannot disguise their behavior and tend to
exhibit the same behavior all the time.
Emotional Intelligence: It is also called as Emotional Quotient, which refers to individual’s

ability to be aware of feelings and emotions and the extent to which they can manage them more
effectively in dealing with others and challenging events. It consists of five main abilities:
o Knowing one’s emotions: Self-awareness and recognizing ones feelings as it occurs.

o Managing emotions: Handling feelings and emotions appropriately to the relevant
situations.
o Motivating oneself: Directing the feelings and emotions in such a way to fulfilling the
desired goals.
o Recognizing emotions in others: Empathizing and understanding the feelings and
emotions for others.
o Handling Relationships: Being able to interrelate, communicate and work with others.
Authoritarianism and Dogmatism: People who are likely to have authoritarian orientation tend
to use their power more aggressively towards their subordinates and create a very defensive
climate in the department, while at the same time they are being very submissive or docile
towards their supervisors. Dogmatism refers to the extent to which people are flexible or rigid in
dealing others. Managers who are exhibiting these traits are likely to be detached from other
people and show much of hatred in them.
Machiavellianism: This refers to the extent to which people are manipulative and tactic in
achieving one’s own goals. These people strongly believe that ends can justify means. People
who are high Machiavellian tend to be cool, willing to twist and turn facts to influence others and
try to gain control of people, events, and situations by manipulating the system to their
advantage. High Machiavellians may be successful only for a short period but in long run they
tend to be distrusted and disliked by many in the department and finally they may be ineffective.
Risk Taking: This refers to the extent to which people are willing to take chances. This
propensity to assume or to avoid risk has been shown to have an effect on their decision making
capabilities and information gathering process. High risk taking managers made more rapid
decision and used less information in making their choices than did the low risk taking managers.
Type A and Type B Personality: This refers to the extent to which people tend exhibit certain
characteristics. Type A person feels a chronic sense of time urgency, are highly achievement
oriented, exhibit a competitive drive and are impatient when their work is slowed down for any
reason. Type B persons are easygoing individuals who do not have sense of time urgency, and
who do not experience the competitive drive.
Tolerance for Ambiguity: This dimension refers to the extent to which individuals are
threatened by or have difficulty coping with situations that are ambiguous, where change occurs
rapidly or predictably, where information is inadequate or unclear or where complexity exists.
This personality characteristic indicates the level of uncertainty that people can tolerate without
experiencing undue stress and can still function effectively.
Work Ethic Orientation: This refers to the extent to which people are committed to work and
involved in their activities. Extreme work ethic values could lead to traits of workaholic and
workaholic people tend to give predominant interest to work which might lead to premature
burnout and health problems such as hypertension, anxiety etc. Some individuals are highly work
oriented while others try to do the minimum that is necessary go get by without being fired on
the job. The extremely work ethic oriented person gets greatly involved in the job and lives up to
being described as ‘living, eating and breathing the job’. Extreme work ethic values could lead to
traits of ‘workaholic’ when work becomes to be considered as the only primary motive for living
with very little outside interests.
2.4 Unit Summary

In this sub - unit, we have learnt about the various personality determinants and personality
traits. We have learnt that the three major factors that determine the formation of personality are
Heredity, Environment and situation. We have also discussed some important personality factors
that determine what kinds of behaviours are exhibited at work.
Activity 3.1
1. What are the key determinants of personality?
2. Explain the components of Big Five Personality factors.
3. Describe MBTI Personality types and its key characteristics with

suitable examples.
4. Explain the key personality traits relevant to work behavior.
5. What relevance does the concept of personality have for

understanding and predicting employee performance?
6. What are the advantage and disadvantage of employing Type A

Personality and Type B personality in organizations?

3.0: Perception
3.1 Introduction
This subunit focuses on Perception, complex process by which an individual selectively absorbs
or assimilates the stimuli in the environment, cognitively organizes the perceived information in
a specific fashion and then interprets the information to make an assessment about people or
objects or attach meaning to events happening in the environment. Since perception is a
subjective process, different people may perceive the same environment differently based on
what particular aspects of the situation they choose. Managers should sharpen their perceptual
skills so that they are as close to perceiving people, events, and objects as they truly are. When
“misperception” occurs due to perceptual errors and distortion, managers are bound to make poor
or improper decisions.
Learning Outcomes
 Understand the dynamics of perceptual process

 Describe the possible influences of various environmental, personal, target
characteristics on the perceptual process
 Understand various causes for a given behavior when making judgment of others
 Explain the possible errors in attribution and perception and the methods to
overcome such errors.
3.2 Definition of Perception
Perception can be defined as a process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment. Perception is process through which
short-run changes are made in behavior in response to inputs from work environment.
3.3The Perceptual Process
The process itself consists of two major actions – i) attention to incoming stimuli and ii)
translation of such stimuli into a message that leads to a meaningful behavioral response.
Perception is form of behavior and, therefore, influenced by at least the following factors: i)
characteristics of the object or source of incoming stimuli (such as a supervisor issuing work
request); ii) the situation or conditions under which the stimuli occur (such as timing of a
message) and iii) characteristics of the perceiving person. The last category is extremely
important in determining the way incoming stimuli will be interpreted and subsequent response.
An individual’s motives, previous learning and personality will influence perception. Managers
must take such consideration into account in predicting the way their actions and orders will be
perceived by others.

Stages of the Perceptual Process
Environment Stimuli
For example, objects and Receipt of Stimuli through

people in the immediate the senses:
environment
 Taste Smell
 Hearing
 Sight
 Touch
Perceptual Selection
External Factors Internal
 Size Factors
 Intensity
 Contrast  Personality
 Motion  Learning
Perceptual organization
 Repetition  Motivation
 Novelty  Perceptual Grouping
 Familiarity  Continuity
 Closure
 Proximity
 Similarity
Perceptual Attributions
Errors
 Internal versus
 Perceptual external causes Response
defense  Causes for success
Covert
 Stereotyping and failure
 Hallo Effect  Attitudes
 Projection  Motivations
 Feelings
 Behaviour

Stage I: Environmental stimuli –Different stimuli manifest itself in the environment.
Stage II: Receipt of environmental stimuli – It depicts the environmental stimuli being
recognized or received by the five senses of the perceiver.
Stage III: Perceptual Selection of the Stimuli: This is governed both by factors external to
the perceived, such as the characteristics of the stimulus, and internal to the
individual, such as the personality disposition and motivations of the perceiver.
Stage IV: Perceptual organization Stage – In this stage, the perceiver is influenced by
figure and ground, grouping, and several perceptual errors such as stereotyping
halo effects, projection and perceptual defense.
Stage V: Interpretation Stage: This stage is governed by the perceiver’s assumptions of

people and events and attributions about causes of behavior and feelings.
Stage VI: Behavior Response: In this stage the response of the perceiver takes on both
covert and overt characteristics. Covert response will be reflected in the attitudes,
motives, and feelings of the perceiver and overt responses will be reflected in the
actions of the individual.
3.4 Factors Influencing Perception
Several factors influence how we process the perceptual inputs and transform them into outputs.
There are three broad categories: Characteristics of the Perceiver, Characteristics of the Target,
and Characteristics of the Situation. Each of these is elaborated below:
Characteristics of Perceiver
A person’s needs and motives, self-concept, past experience, emotional state, and personality
aspects strongly influence the perceptual process.
 Needs and Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong
influence on their perception.
 Self Concept: This refers to how a person perceives himself/herself which in turn influences his
or her perception of the world around them. If a person perceives himself as incompetent, then he
perceives the world as threatening. On the other hand, if he feels himself as confident and
capable, he will perceive everything around as friendly.
 Attitudes: The preferences and likeliness affects ones perception.
 Interests: Individual’s focus of attention is also influenced by the interests of people. A plastic
surgeon will more likely to notice an imperfect nose than a plumber. Because our individual
interests differ considerably, what one person notices in a situation, can differ from what another
person perceives in the similar situation.
 Past experiences: Individuals past experiences also influence in molding ones perception.
 Psychological or Emotional State: If an individual is depressed, he or she is likely to perceive the
same situation differently from the other person who is at the extreme level of excitement or
happiness.
 Expectations: Expectations can also distort the perceptual process. If a person expects police
officers to be more authoritative and dictatorial, he or she may perceive them as if they are rough
and tough regardless of the Police Officers actual traits.
 New Experience
If a person experiences something new, this is more likely to attract their attention than the
objects or events that have been experienced before.
 Personality Characteristics: There is a strong relationship between personality factors and

perception. For example, secure people tend to perceive others as warm supportive than those,
who are more cold and indifferent.
Characteristics of the Target
The ways things are organized around us are greatly influencing the perceptual process. Some of
the typical characteristics include bright color, noise; novel objects, bigger unusual size, moving
objects, status, appearance, contrast, intensity, repetition etc, catch people attention.
 Organization of Target: People tend to organize the various parts of elements in the environment
as a meaningful whole. Such organizing activity is a cognitive process and those are based on
Gestalt Principles. The following are the four Gestalt Principles – Figure and Ground, Proximity,
Similarity, Closure, Continuation.
 Figure and Ground: What a person observes is dependent on how a central figure is being
separated from its background. This implies that the perceived object or person or event stands
out distinct from its background and occupies the cognitive space of the individual.
 Proximity: People tend to perceive things, which are nearer to each other, or as a group rather
than separately. If four or five members are standing together, we tend to assume that they
belong to same group rather than separately. As a result of physical proximity, we often put
together objects or events or people as one group even though they are unrelated.
 Similarity: Persons, objects or events that are similar to each other also tend to be grouped
together. This organizing mechanism helps us to deal with information in an efficient way rather
than getting bogged down and confused with too many details.
 Closure: In many situation, the information that we intend to get may be in bits and pieces and
not fully complete in all respects. However, we tend to fill up the gaps in the missing parts and
making it as meaningful whole. Such mental process of filling up the missing element is called
as closure.

Characteristics of the Situation
The context in which the incident is occurring can influence the perceptual process. The
physical, social, organizational settings, time etc can influence how we interpret the stimuli.
3.5 Perceptual Errors / Shortcuts in Judging Others
While observing others in our day-to-day life, people tend to commit errors due to faulty
perceptual process and make a wrong decision. The need for managers to accurately perceive the
environment and how managers can sharpen their perceptual skill are vital in enhancing
perceptual skills. There are five types of errors that people make in perceiving other people and
these include; selective Perception, projection, stereotyping, halo effect, contrast effect etc.
i) Selective Perception: It is a tendency to observe people selectively and accordingly interpret

based on their interest, background, experience and attitudes. For example, a production manager
is always likely to identify the need to strengthen the production system; the marketing manager
will focus only on the marketing research and sales promotions activities.
ii) Projection: It is a tendency to assign one’s own personal attributes to others. For instance, a
manager who is corrupt will tend to project that all others are also corrupt like him. Similarly, a
manager who loves challenging work might project that all others like challenging work.
iii) Stereotyping: It is a tendency to judge people based on the perception of the group to which
he belongs. We tend to attribute favorable or unfavorable characteristics to the individual based
on upon widely held generalization about the group.
iv) Halo Effect: It is tendency to draw a general overall impression about an individual based on
single striking characteristics.
v) Contrast Effect: It is tendency to evaluate a person’s characteristics by just comparing with

other people who happened to acquire higher or lower position on the same characteristics.
3.6 Methods to overcome such biases in perception

The pitfalls listed above can be minimized by enhancing perceptual skills by consciously
putting effort in the following activities:
i) Knowing and perceiving oneself accurately:

One of the ways in judging others and situations more accurately is by knowing, perceiving
and understanding ourselves accurately. The best way of achieving this objective is to obtain
information on how others perceive us from as many sources as possible – supervisors, peers,
subordinates and other colleagues. By consciously putting effort in getting feedback from
others as much as possible about yourself regarding all the activities will help widen your
open self. Similarly, by exposing yourself to others regarding your opinions, suggestions,
beliefs, values, attitudes life styles etc, others may be able to understand you better and come
forward to share their views more frequently.
There are two critical things relevant to widening ones open self – i) soliciting feedback
from others and ii) exposing or disclosing yourself to others.
ii) Being empathetic
Empathy means being able to see a situation as it is experienced by others. If a manager is
able to view the problems of his employees from the employees’ point of view instead of
looking things from his own perspective, he may be able to understand the real problems
experienced by them very clearly.
iii) Having positive attitude

There is a high level of relationships among attitudes, perceptions, beliefs and values. Unless
managers can take positive attitudes to whatever situations they find themselves in and see
things from a positive angle, their perceptions are likely to be distorted. By being aware of
personal biases, and making a concerted effort to be as unbiased as possible,, manages can
consciously try to get rid of any negative feelings they may have of others.
iv) Enhancing one’s self-concept

Positive evaluation of oneself by accomplishing a commendable performance or remarkable
things will boost good self image. When people handle roles where they can exhibit and
enhance their competence and be successful, they will develop a basic sense of self-esteem
and have a positive self regard. When our self-concept is enhanced and we have acquired a
positive self-regard, we are apt to respect others more and perceive them more accurately.
v) Avoiding common biases in perception

By checking and cross checking the events and spending adequate time and resources to
monitor the various things around, one can consciously raise the overall level of awareness
and this will help considerably minimize our perceptual biases. Self correction and self
renewal process must be continuous within oneself as we interact with situation on a daily
basis and based on that one must change and adapt to the current situations.
vi) Open communication

Even though managers may watch out for their own perceptual errors, it is a fact that
employees at the workplace act in accordance with their own perceptions. Effective managers
not only have to remember that employees tend to misperceive situations but they should also
be able to effectively communicate to employees the happenings in the work setting such that
any misperceptions are dispelled.
vii) Avoiding inappropriate attributions

Inappropriate attributions are frequently made by all of us when we try to make sense of what
is happening in our environment. Due to this, our judgment will be wrong and will end up
with poor results. By observing keenly certain behavioral principles as laid down in
attributions model, people can sharpen their judgment to check whether the causes of
particular behavioral act is due to personality or situational factors. Based on this, one can
enhance their perceptual skills.

3.7 Sub Unit Summary
In this sub unit, we have learnt about perception which is a process by which individuals
organize and interpret their sensory impressions to give meaning to their environment. We have
also discussed the five stages in perceptual process and the factors influencing perception. The
unit has also discussed strategies for overcoming perceptual biases.
Unit 3.1 Activity
1. What is meant by perception and why is it important for managers to

understand it?
2. Discuss the elements of the perceptual process model.
3. How might perceptual factors be involved when an employee

receives a poor performance appraisal?
4. How do the characteristics of the perceived affect the perceptual

process?
5. Explain the effect of the characteristics of the target on perceptual

process.

4.0: Learning
4.1 Introduction
This sub unit focuses on how individuals learn particularly in the workplace. Most people have
been close to formal learning situations for a significant part of their lives. They are very curious
to know about its dynamics and seek to clarify the following questions. To what extent can we
attribute a person’s behavior to learning? Will people learn things in spite of their environment?
What is the difference between learning a behavior and acquiring it naturally? Can a skill be
acquired or must an individual be born with such a talent as part their personality. These kinds of
questions demand that managers have a thorough understanding of what learning is and in what
ways learning influences behavior.
Learning Outcomes
 Understand the principles of learning process

 Appreciate the classical conditioning principles and its application in work life
situation
 Implement behavior modification techniques by learning the operant
conditioning principles and its application in work life situation
 Understanding the dynamics of social learning theory and relevance in work life
situation.
4.2 Definition of Learning
Learning is part of every one’s life. In our life, all complex behavior is learned.
Learning is defined as any relatively permanent change in behavior that occurs as a result of
experience. Whenever any change occurs learning has taken place in the individual. If an
individual behaves, reacts, responds as a result of experience which is different from others, a
person has encountered some new learning experience in his life. This definition consists of the
following four key elements:
i) Change process: Learning involves some change in oneself in terms of observable actions
explicitly shown to others or change in ones attitude or thought process occurs with oneself
implicitly. Change may be good or bad or positive or negative from an organization point of
view. If a person happens to experience some negative incidents, that person will hold prejudices
or bias or to restrict their output. On the contrary, if a person is encountering some good incident,
that person is likely to hold positive attitude.
ii) Permanent change: Due to whatever exposure a person encounters, the impact that it
generates may be long lasting and permanent. Hence, the change must be relatively permanent. If
change occurs due to fatigue or alcohol consumption or temporary adaptation, it may be
vanished once the goal is achieved.

iii) Setting behavioral actions: Explicit changes occurring in behavior is the main goal of
learning process. A change in an individual’s thought process or attitudes without any changes in
any explicit behavior will not be considered as learning process.
iv) Need for meaningful experiences: Some form of experiences is necessary for learning.
Experience may be acquired directly through observation or practice. If experience results in a
relatively permanent change in behavior, one can confidently say that learning has taken place.
4.5. Learning Theories
Three types of learning theories will be discussed. These theories are classical conditioning,
operant conditioning and social learning.
i) Classical Conditioning Theory:

Russian physiologist Ivan Pavlov developed classical conditioning theory. When he was doing a
research on the chemical properties of saliva of dog, he noticed accidentally that the dog started
salivating on hearing the sound of a door of cupboard clinging. Based on his observation, he
wanted to do some experiment on whether the dog can be conditioned to respond to any neutral
stimuli. He used a simple surgical procedure to operate the salivary glands of a dog to measure
accurately the amount of saliva. Pavlov’s Experiment: Pavlov conducted his experiment in three
stages:
Stage I: When Pavlov presented the dog with a piece of meat, the dog exhibited a noticeable
increase in salivation. The meat is unconditional stimulus and salivation is unconditional
response.
Stage II: In this stage, the dog was not given a piece of meat but only exposed to a sound of
ringing bell; the dog did not salivate to the mere sound of a ringing bell.
Stage III: Pavlov decided to link both the presentation of meat and the ringing of a bell one after
the other with an interval of 5 minutes. After repeatedly hearing the bell before getting the meat,
the dog began to salivate as soon the bell rang. There was an association or link between meat
and ringing a bell. After repeating the association between meat and ringing a bell, the dog
started salivating merely at the sound of the bell, even if no food was offered. The dog was now
conditioned to respond to a sound of a bell and started salivating. This is called classical
conditioning process.
Thus, classical condition is defined as the formation of S-R link (Stimulus-Response) or habit
between a conditioned stimulus and a conditioned response through the repeated pairing of
conditioned stimulus with an unconditioned stimulus.
In this experiment, the meat is unconditioned stimulus, and the expected response that is,
salivating to the meat is called a unconditioned response. The sound of a bell is a neutral
stimulus which does not have any property to elicit salivation, is called as conditioned stimulus.
Although it was originally neutral, if the bell was paired with meat (unconditioned stimulus) it
acquired the same property as meat eliciting the salivation. The sound of a bell produced
salivation when presented alone. This is called conditioned response, that is, now the dog is
conditioned to respond to the sound of a bell. Learning a conditioned response involves building
up an association between a conditioned stimulus and unconditioned stimulus. When the natural
stimuli, neutral are paired, the neutral one becomes a conditioned stimulus and hence takes on
the properties of the unconditioned stimulus.
ii) Social Learning Theory

People learn through both observation and direct experience, which is called as social learning
theory. Individuals learn by observing what happens to other people and just by being told about
something, as well as by direct experiences. By observing people around us, mostly from
parents, teachers, peers, films and television actors, bosses, etc we learn new behavior patterns.
Albert Bandura, who has most vigorously studied observational learning in humans, has
emphasized that people observe others to learn not just specific motor skills (such as driving a
car and performing surgery) but also more general modes or styles of behaving. Bandura
demonstrated both of these functions of observational learning – acquiring specific actions and
learning general styles of behavior – in experiments with children. He proposed that people
actively observe the behavior of other people to gain knowledge about the kinds of things that
people do, and use that knowledge in situations where it is useful.
Social learning theory gives much importance to perceptual process. People respond to how they
perceive and defy consequences, not to the objective consequence themselves. The influence of
models is key to the social learning process. The following four processes are vital to determine
the influence that a model will have on an individual:
Attention Process: People learn from a model only when they recognize and pay attention to its
critical features. People tend to be most influenced by models that are attractive and repeatedly
available similar to us in our estimation.
Retention Process: A model’s influence will depend on how well the individual remembers the
model’s action after the model is no longer readily available.
Motor Reproduction Process: After a person has seen a new behavior by observing the model,
the watching must be converted to doing. This process then demonstrates that the individual can
perform the modeled activities.
Reinforcement Process: Individuals will be motivated to exhibit the modeled behavior if

positive incentives or rewards are provided. Behavior that is positively reinforced will be given
more attention, learned better and performed more often.
iii) Reinforcement theory
Reinforcement theory is broadly based on learning theory and the works of B.F.Skinner. The
foundation of this approach is on three fundamental factors. Firstly, it is believed that an
individual is basically passive and merely mediates the relationship between the forces acting on
him and their output. Secondly, reinforcement also rejects the explanation that behavior is based
on an individual’s needs, drives, or goals because they believe that such aspects are unobservable
and hard to measure. The focus of attention is on behavior itself, which can be observed and
measured. Finally, reinforcement theorists state that a relatively permanent change in behavior of
an individual results from reinforced behavior or experience. By giving a proper reinforcement,
the likely hood that desired behavior will be exhibited can be increased and the likelihood that
the undesired behaviors will be exhibited can be reduced or both.
Types of reinforcement
In operant conditioning, the consequences of behavior (rewards or punishment) are made to
occur contingent on the individual’s response or failure to respond. There are three basic
components of operant conditioning: i) stimulus, ii) response or performance and iii)
consequences or contingencies of reinforcement or rewards. The consequences or types of
reinforcement determine the likelihood that a given behavior or response, will be performed in
the future. Thus, to change the behavior of an individual, the consequences or reinforcement of
the behavior must be changed. There are four types of reinforcement available to manage or
modify an individual’s behavior:
i) Positive Reinforcement
The application of this type of reinforcement to a given response or behavior increases the
likelihood that the particular behavior by the individual will be repeated. For example, an
engineer is given the task of designing a new piece of equipment (stimulus). The engineer exerts
a high level of effort and completes the project in time (response). The supervisor reviews the
work and not only praises the engineer for his or her work, but recommends, for example, a pay
increase for the excellent work (positive reinforcement). Negative reinforcement increases the
frequency and strength of a desired behavior by making it contingent upon the avoidance of
undesirable consequences for the employees.
ii) Punishment
The application of punishment is used to decrease the likelihood that the undesirable behavior or
response by the individual will be repeated. Just as positive reinforcement strengthens a
particular behavior, punishment weakens it. For example hourly workers in a plastics plant are
given one hour for lunch (stimulus). When a particular worker continually takes an hour and
thirty minutes for lunch (response), the supervisor will call the particular worker in his or her
office and impose an half-a-day salary cut for their prolonged absent from work (punishment).
The use of this punishment will hopefully change this worker’s response back to acceptable
behavior. The difference between punishment and negative reinforcement is that in the former
case, noxious consequences is applied to decrease the frequency or strength of an undesired
behavior, where as in the latter, a noxious consequences is withheld when a desired behavior is
exhibited.
iii) Avoidance
Just as with positive reinforcement, this type of reinforcement is a method used by managers to
strengthen desired behavior. When a particular reinforcement can prevent the occurrence of an
undesired stimulus, it is termed avoidance learning. As the same example cited above, in order to
avoid reprimand and criticism, the worker makes a special effort to take only an hour for lunch.
With the avoidance learning, the individual works hard to avoid the undesired consequences of
the stimulus.
iv)Extinction
Extinction is the withholding of positive reinforcement for a previously acceptable response.
With continued non-reinforcement over time, the response or behavior will eventually disappear
or be eliminated. Extinction involves three steps: i) identifying the behavior that needs to
eliminated ii) identifying the reinforcers which encourage the behavior that is desired to be
eliminated and iii) stopping the reinforcers.
Shaping Behavior
Shaping behavior is a process of changing an undesirable behavior to a desirable behavior by
following a successive approximation of desirable targeted behavior with proper reinforcement.
There are four ways in which shaping of desirable behavior can be achieved: They are Positive
Reinforcement, Negative reinforcement, punishment and extinction. The objective of each of the
four reinforcement types is to modify an individual’s behavior so that it will benefit the
organization. Reinforcement will either increase the strength of desired behavior or decrease the
strength of undesired behavior depending on the organization’s needs and the individual’s
current behavior.
Types of Reinforcement Methods
Types of Stimulus Response Consequences or

Reinforcement reward
Positive High performance is rewarded Individual performance at Pay increase,
Reinforcement in the organization a high level (desired recognition, praise.
behavior)
Punishment Only one hour is given for Individual continually Reprimand by
lunch each day takes more than one hour supervisor
for lunch
Avoidance Individuals who take more than Individuals take only one No reprimand
one hour for lunch will be hour for lunch
reprimanded by
supervisor
Extinction Bonus given to sales person Sales persons worked Bonus

for each new customer order hard to get new orders
Bonus removed for each new
customer Sales persons exert only No bonus
minimal effort to get new
orders
The impact of reinforcement on organizational behavior can be summarized as follows:
 Some type of reinforcement is necessary to reproduce a change in behavior.

 Some types or categories of rewards are more effective for use in organization than are others.
 The speed with which learning takes place and how lasting its effects will be is determined by
the timing of the reinforcement.
Behavior Modification
This is an approach to motivation in organization that uses operant conditioning as its
foundation. The approach recommended by proponents of behavior modification is that of

positive reinforcement. It is reported that positive reinforcers are more effective than negative
reinforcers in achieving lasting changes in behavior.
Unit summary
sssummary summary
In this sub unit, we have discussed about learning process which is a part of every one’s
life. We have also learnt about the types of learning theories.
Activity3.2
1. Explain classical conditioning

2. Describe four process in successful social learning
3. Describe Skinner’s Operant Conditioning principles and its

application in work life situation.
4. Explain four types of reinforcement. Is punishment useful as

reinforcement techniques?
5. What is meant by Shaping? Give an example of shaping by

giving some work life examples.
6. Describe the four types of schedules of reinforcement and its

application in work life situation.

UNIT B11.4: LEADERSHIP THEORIES
1.0 Introduction
This unit analyses the various theories or approaches to leadership. A successful leader is one
who is able to get the work done, irrespective of the leadership style he follows. In simple words,
leadership can be defined as an art of motivating and inspiring others so that they believe in a
particular cause and give their best to achieve the goal.
There have been different leadership theories, with each of them making one assumption or the
other to define what constitutes effective leadership. Presented below are the main theories of
leadership.
 Define the term leadership.

 Describe leadership styles.
 Discuss situational leadership theories.
1.1 Definitions of Leadership
Leadership is the process of motivating people to act in particular ways to achieve specific goals.
It is an essential attribute for all managers to develop in order to make and implement decisions.
‘Leadership is a dynamic process in a group where one influences the other to contribute
voluntarily to the achievement of group tasks in a given situation’
‘Leadership is the art of influencing and directing people to achieve organizational goals.’
‘A process of social influence in which one can enlist the aid and support of others in the
accomplishment of a task.’
‘Leadership is organizing a group of people to achieve a common goal.’
2.0 Leadership Theories

I. “Great Man” Theories
The theories assume that the capacity for leadership is inherent meaning that great leaders are
born, not made and great leaders will arise when there is a great need .These theories often
portray great leaders as heroic, mythic, and destined to rise to leadership when needed. The term
“Great Man” was used because, at the time, leadership was thought of primarily as a male
quality, especially in terms of military leadership.
II Trait Theories.

Similar in some ways to “Great Man” theories, trait theories assume that people inherit certain
qualities and traits that make them better suited to leadership. Trait theories often identify
particular personality or behavioral characteristics shared by leaders. But if particular traits are
key features of leadership, how do we explain people who possess those qualities but are not
leaders. Early research on leadership was based on the psychological focus of the day, which was
of people having inherited characteristics or traits.
Attention was thus put on discovering these traits, often by studying successful leaders, but with
the underlying assumption that if other people could also be found with these traits, then they,
too, could also become great leaders.
Stogdill (1974) identified the following traits and skills as critical to leaders:
Traits
 Adaptable to situations
 Alert to social environment
 Ambitious and achievement-orientated
 Assertive
 Cooperative
 Decisive
 Dependable
 Dominant (desire to influence others)
 Energetic (high activity level)
 Persistent
 Self-confident
 Tolerant of stress
 Willing to assume responsibility
Skills
 Clever (intelligent)
 Conceptually skilled
 Creative
 Diplomatic and tactful
 Fluent in speaking
 Knowledgeable about group task

 Organized (administrative ability)
 Persuasive
 Socially skilled
McCall and Lombardo (1983) researched both success and failure and identified four primary
traits by which leaders could succeed or 'derail':
 Emotional stability and composure: Calm, confident and predictable, particularly when
under stress.
 Admitting error: Owning up to mistakes, rather than putting energy into covering up.
 Good interpersonal skills: able to communicate and persuade others without resort to
negative or coercive tactics.
 Intellectual breadth: Able to understand a wide range of areas, rather than having a
narrow (and narrow-minded) area of expertise.
III Behavioral Theories

Behavioral theories of leadership are based upon the belief that great leaders are made, not born.
Rooted in behaviorism, this leadership theory focuses on the actions of leaders, not on mental
qualities or internal states. According to this theory, people can learn to become leaders through
teaching and observation.
Behavioral theories of leadership do not seek inborn traits or capabilities; rather, they look at
what leaders actually do. A behavioral theory is relatively easy to develop, as you simply assess
both leadership success and the actions of leaders. With a large enough study, you can then
correlate statistically significant behaviors with success. You can also identify behaviors which
contribute to failure, thus adding a second layer of understanding.
University of Michigan and University of Ohio studies have outlined the various leadership
behaviour as well as Blake and Mouton in their managerial grid.
IV Situational Theories
Assumptions: Situational theories propose that leaders choose the best course of action based
upon situational variables. Different styles of leadership may be more appropriate for certain
types of decision-making.
Factors that affect situational decisions include motivation and capability of followers. This, in
turn, is affected by factors within the particular situation. The relationship between followers and
the leader may be another factor that affects leader behavior as much as it does follower
behavior.
The leaders' perception of the follower and the situation will affect what they do rather than the
truth of the situation. The leader's perception of themselves and other factors such as stress and
mood will also modify the leaders' behavior.
According to Yukl (1989) identifies other approaches which include the following variables:
 Subordinate effort: the motivation and actual effort expended.

 Subordinate ability and role clarity: followers knowing what to do and how to do it.
 Organization of the work: the structure of the work and utilization of resources.
 Cooperation and cohesiveness: of the group in working together
 Resources and support: the availability of tools, materials, people, etc.
 External coordination: the need to collaborate with other groups.

Leaders therefore work on such factors as external relationships, acquisition of resources,
managing demands on the group and managing the structures and culture of the group.
3.0 Leadership Styles
A good leader should be able to assess the requirements of the team members and adopt a style
that befits the team. What is are leadership styles? Leadership styles generally refer to various kinds of
strategies and methods used by managers, in order to produce the best results for the organization. There
are many different leadership styles that are employed in the corporate setting. Four of the most basic
leadership styles are:
-Autocratic
-Bureaucratic
-Laissez-faire
-Democratic
A brief summary of each style is presented and including a description of the situations in which
each one might be used.
Autocratic Leadership Style
This is often considered the classical approach. It is one in which the manager retains as much
power and decision-making authority as possible. The manager does not consult employees, nor
are they allowed to give any input. Employees are expected to obey orders without receiving any
explanations. The motivation environment is produced by creating a structured set of rewards
and punishments.
This leadership style has been greatly criticized during the past 30 years. Some studies say that
organizations with many autocratic leaders have higher turnover and absenteeism than other
organizations. These studies say that autocratic leaders:
-Rely on threats and punishment to influence employees
-Do not trust employees
-Do not allow for employee input

Autocratic leadership is the most effective style to use in situations which may include:
-New, untrained employees who do not know which tasks to perform or which procedures to
follow
-Effective supervision can be provided only through detailed orders and instructions
-Employees do not respond to any other leadership style
-There are high-volume production needs on a daily basis
-There is limited time in which to make a decision
-A manager's power is challenged by an employee
The autocratic leadership style should not be used when:
-Employees become tense, fearful, or resentful
-Employees begin depending on their manager to make all their decisions
-There is low employee morale, high turnover and absenteeism and work stoppage.
Bureaucratic Leadership Style
Bureaucratic leadership is where the manager manages "by the book¨ everything must be done
according to procedure or policy. If it isn't covered by the book, the manager refers to the next
level above him or her. This manager is really more of a police officer than a leader. He or she
enforces the rules.
This style can be effective when:
-Employees are performing routine tasks over and over.
-Employees need to understand certain standards or procedures.
-Employees are working with dangerous or delicate equipment that requires a definite set of
procedures to operate.
-Safety or security training is being conducted.
-Employees are performing tasks that require handling cash.
This style is ineffective when:
-Work habits form that are hard to break, especially if they are no longer useful.
-Employees lose their interest in their jobs and in their fellow workers.
-Employees do only what is expected of them and no more.
Democratic Leadership Style
The democratic leadership style is also called the participative style as it encourages employees
to be a part of the decision making. The democratic manager keeps his or her employees
informed about everything that affects their work and shares decision making and problem
solving responsibilities. This style requires the leader to be a coach who has the final say, but
gathers information from staff members before making a decision.
Democratic leadership can produce high quality and high quantity work for long periods of time.
Many employees like the trust they receive and respond with cooperation, team spirit, and high
morale. Typically the democratic leader:
-Develops plans to help employees evaluate their own performance
-Allows employees to establish goals
-Encourages employees to grow on the job and be promoted
-Recognizes and encourages achievement.
Like the other styles, the democratic style is not always appropriate. It is most successful when
used with highly skilled or experienced employees or when implementing operational changes or
resolving individual or group problems.
The democratic leadership style is most effective when:
-The leader wants to keep employees informed about matters that affect them.
-The leader wants employees to share in decision-making and problem-solving duties.
-The leader wants to provide opportunities for employees to develop a high sense of personal
growth and job satisfaction.
-There is a large or complex problem that requires lots of input to solve.
-Changes must be made or problems solved that affect employees or groups of employees.
-You want to encourage team building and participation.
Democratic leadership should not be used when:
-There is not enough time to get everyone's input.
-It's easier and more cost-effective for the manager to make the decision.
-The business can't afford mistakes.

-The manager feels threatened by this type of leadership.
-Employee safety is a critical concern.
Laissez-Faire Leadership Style
The laissez-faire leadership style is also known as the "hands-off¨ style. It is one in which the
manager provides little or no direction and gives employees as much freedom as possible. All
authority or power is given to the employees and they must determine goals, make decisions, and
resolve problems on their own.
This is an effective style to use when:
-Employees are highly skilled, experienced, and educated.
-Employees have pride in their work and the drive to do it successfully on their own.
-Outside experts, such as staff specialists or consultants are being used
-Employees are trustworthy and experienced.
This style should not be used when:
-It makes employees feel insecure at the unavailability of a manager.
-The manager cannot provide regular feedback to let employees know how well they are doing. .
-The manager doesn't understand his or her responsibilities and is hoping the employees can
cover for him or her.
The types of leadership styles used in a workplace usually depend on the personal choice of the
manager. Many experienced business managers have a preferred leadership strategy that they
incorporate into their work. Others may use a combination of different strategies, generally
refining their approach over time, in order to see which method is the most effective. Some
leadership styles will also vary according to the precise task at hand, as the manager attempts to
determine the most effective business solution.
V Transformational leadership theory

The assumption of this theory is that People will follow a person who inspires them. A person
with vision and passion can achieve great things. The way to get things done is by injecting
enthusiasm and energy.
Working for a Transformational Leader can be a wonderful and uplifting experience. They put
passion and energy into everything and they care about you and want you to succeed. They start
by developing a vision which is sold by taking every opportunity and using whatever works to

convince others to climb on board the bandwagon of created vision. In order to create followers,
there is need to create trust, and personal integrity is a critical part of the package that the leader
is selling. In effect, they are selling themselves as well as the vision. In selling the vision, there is
finding the way forward by getting others to follow them through exploring possible ways .Thus
finding the way forward can be an ongoing process of course correction, and accepting that
there will be failures and blind spots along the way.
The final stage is to remain up-front and central during the action; and leading the
charge. Transformational Leaders are always visible and stand up to be counted rather than hide
behind their troops; show by their attitudes and actions how everyone else should behave. They
also make continued efforts to motivate and rally their followers, constantly doing the rounds,
listening, soothing and enthusing.
The unswerving commitment keeps people going, particularly through the darker times when
some may question whether the vision can ever be achieved. If the people do not believe that
they can succeed, then their efforts will flag. The Transformational Leader seeks to infect and re-
infect their followers with a high level of commitment to the vision.
 Whilst the Transformational Leader seeks overtly to transform the organization, there is also
a promise to followers that they also will be transformed in some way.
 Transformational Leaders are often charismatic, but are not as pure Charismatic Leaders.
 One of the traps of Transformational Leadership is that passion and confidence can easily be
mistaken for truth and reality but, it is also true that many passionate people have led others
right over the cliff and into a bottomless chasm. Just because someone believes they are
right, it does not mean they are right.
 The energy that gets people going can also cause them to give up. Transformational Leaders
often have large amounts of enthusiasm which, if relentlessly applied, can wear out their
followers.
 Transformational Leaders also tend to see the big picture, but not the details, If they do not
have people to take care of this level of information, then they are usually doomed to fail.
 Transformational Leaders, by definition, seek to transform. When the organization does not
need transforming and people are happy as they are, then such a leader will be frustrated.
Unit summary
In this lesson, we have learnt about leadership as a process of influencing others to get the
job done effectively. We have also discussed about the theories of leadership. The unit has
also covered the basic leadership styles.

Activity 3.3
1. What does the term leadership mean?
2. Describe the assumptions of situational leadership theories.
3. Explain the different styles of leadership.
UNIT B11:5 MOTIVATION THEORIES
1.0 Introduction
This unit examines motivation theories. The word motivation is coined from the Latin word
"movere", which means to move. Motivation is defined as an internal drive that activates
behavior and gives it direction. The term motivation theory is concerned with the processes that
describe why and how human behavior is activated and directed. It is regarded as one of the most
important areas of study in the field of organizational behavior. There are two different
categories of motivation theories such as content theories, and process theories. The content
theory of motivation mainly focuses on the internal factors that energize and direct human
behavior. Maslow's hierarchy of needs, Alderfer’s ERG theory, Herzeberg’s motivator-hygiene
theory and McClelland’s learned needs or three-need theory are some of the major content
theories. Even though there are different motivation theories, none of them are universally
accepted. Process theories of motivation describe the processes through which needs are
translated into behaviour. Each of these categories of theories is discussed in greater detail.
Learning Outcomes
 Explain the various motivation theories and their application in

Organizations.
2.1 Maslow’s Hierarchy of Needs
Abraham Maslow formulated one of the most popular theories of human motivation.
Maslow’s framework is based on three fundamental assumptions;

o Individuals are goals oriented beings whose needs can influence their behavior. Only
unsatisfied needs can influence behavior; satisfied needs do not act as motivators.
o A person’s needs are arranged in an order of importance, or hierarchy, from the basic
(e.g. Food and shelter) the complex (e.g. Ego and achievement).
o The person advances to the next level of the hierarchy, or from basic to complex needs,
only when the lower need is at least minimally satisfied. That is, the individual worker
will first focus on satisfying a need for safe working conditions before motivated
behavior is directed toward satisfying a need for achieving the successful
accomplishment of a task.
Maslow classified these five needs into two broad categories as higher order needs and lower
order needs. The basic needs such as physiological needs, safety needs and love and belonging
needs were classified as lower order needs, where as self esteem, self actualization needs were
described as higher order needs. These are summarized in the diagram below.
Physiological Needs
The need for food, water, shelter, air and others, which are basic to human survival, are called
physiological needs. At work level, this need can be met by providing good working conditions,
attractive wage or salary, subsidized housing, free catering etc.
Safety Needs
The safety needs include the need for freedom from threat caused by the environment, animals
and people. It also includes the need for shelter, security and peace. At work level, this need can

be met by providing health insurance cover, attractive pension provisions, safe working
conditions etc.
Love and Belonging Needs

These needs cover the need of relationships, affection, giving and receiving love and sense of
belonging. The manager can provide the following facilities to take care of these needs: company
sports and social clubs, office parties, permission for informal activities, and encouraging open
communication.
Self Esteem Needs

This is also known as ego needs, which fulfill the need for status, achievement, recognition,
appreciation, respect and prestige. The managers can provide regular positive feedback,
prestigious job titles, promotions etc.
Self-actualization Needs
These are the need for full development of one’s potential. Challenging job assignments,
discretion over work activities, promotion opportunities and encouraging creativity can fulfill
these needs. In terms of motivation, Maslow argued that each level in the hierarchy must be
substantially satisfied before the next level is activated, and that once a need is fully satisfied, it
may not motivate people. The next level in the hierarchy will be dominant only after the
fulfillment satisfaction level. This theory has a lot of implication for managers. As a manager if
you want to motivate an employee, first try to understand what level that person is on in the
hierarchy and focus on satisfying those needs at or just above the level.
Implications of Maslow’s Hierarchy of Needs Theory
This model helps the managers to understand and deal with issues of employee motivation at the
workplace. This model can be applied to motivate people at all levels in the organization.
Managers who understand the need patterns of their staff can help the employees to engage in the
kinds of work activities and provide the types of work environment that will satisfy their needs at
work. For instance, the employees love and belonging needs can be fully satisfied by organizing
yearly dinner and dance program, office week end parties, creating recreation clubs or social
clubs etc. Fortunately, the workplace has the potential to offer need gratification for several
different types of needs, and mangers can motivate employees by giving appropriate
organizational support which will gratify individual’s needs. Thus, despite its drawbacks,
Maslow’s theory offers managers a good technique on understanding the motives or needs of
individuals and how to motivate organizational members.
2.2 Herzberg’s Motivation- Hygiene Theory
Frederick Herzberg’s Two factor theory (also known as Motivator Hygiene Theory) attempts to
explain job satisfaction and motivation in the workplace. This theory states that satisfaction and
job dissatisfaction are driven by different factors – motivation and hygiene factors, respectively.
Motivating factors are those aspects of the job that make people want to perform, and provide
people with satisfaction, for example achievement in work, recognition, promotion opportunities.
These motivating factors are considered to be intrinsic to the job, or the work carried out.

Hygiene factors include aspects of the working environment such as pay, company policies,
supervisory practices, and other working conditions.
Herzberg had done research by collecting data from 200 accountants and engineers asking a
simple question such as “can you describe in detail situations when you felt exceptionally good
about your job” and can you also describe situations when you felt exceptionally bad about your
job? Good feelings about the job were reflected in comments concerning the content and
experiences of the job (e.g., doing good work or a feeling of accomplishment and challenge), bad
feelings about the job were associated with context factors, that is, those surrounding but not
direct involving in the work itself (e.g., salary and working condition) This study revealed two
distinct types of motivational factors: satisfiers and dissatisfiers.
Hygiene factors/Dissatisfiers
This is a set of extrinsic job conditions that, when not present, result in dissatisfaction among
employees. If these conditions are present, this does not necessarily motivate employees. These
conditions are referred to as the dissatisfiers or hygiene factors because they are needed to
maintain at least a level of no dissatisfaction. These factors are related to the context of the job
and include:
o Job security
o Salary
o Working condition
o Status
o Company policies
o Supervision
o Interpersonal supervision
o Fringe benefits.
Motivators/Satisfiers
This is a set of intrinsic job conditions that help to build levels of motivation, which can result in
good job performance. If these conditions are not present, they do not result in dissatisfaction.
These set of aspects are related to the content of the job and are also called motivators. These
include:
o Achievement
o Recognition
o Work itself
o Responsibility
o Advancement
o Personal growth and development.
Implications for Managers:

In order to motivate employees, the managers must ensure to provide the hygiene factors and
then follow the motivating factors. Hertzberg’s motivation-hygiene theory proposes that intrinsic
factors are related to job satisfaction and motivation, whereas extrinsic factors are associated
with job dissatisfaction. Herzberg model sensitizes that merely treating the employees well
through the good company policies is not sufficient to them motivated. Managers should utilize
the skills, abilities, and talents of the people at work through effective job designing. In other
words, the work given to employees should be challenging and exciting and offer them a sense
of achievement, recognition, and growth. Unless these characteristics are present in the job,
employees will not be motivated.
3.0 Process Theories of Motivation
Process theories explain how workers select behavioral actions to meet their needs and determine
their choices. The following theories offer advice and insight on how people actually make
choices to work hard or not work hard based on their individual preferences, the available
rewards, and the possible work outcomes.
3.1 Equity Theory

Adams proposes equity theory of motivation based on the proposition that every one tend to
compare the ratio of his/her input and out come with input-outcome ratio of other person. The
comparison process is highly inevitable. The reference person or comparison person will always
be in the same group, class, age, category etc. For example, a manager will always compare
himself/herself with other fellow manages. A worker will always compare with other workers in
the same organization. In the comparison process, if a person feels that his ratio of input-
outcome is more or less equal to that of his comparison person’s ratio of input-outcome, a state
of equity exists. Then he perceives the situation as just and fair. If a person perceives the ratio as
unequal, he will experience inequity that will lead to tension and stress.
Inequity exists under two conditions: 1. the person feels a negative inequity, when he has been
rewarded less for his efforts than another and 2. The person experiences a positive inequity,
when he finds himself rewarded more than another for a similar degree of effort. Both kinds’ of
inequities produce cognitive dissonance or internal tensions and propel people to action in order
to reduce the dissonance.
Employees might compare themselves with other friends, neighbors, co-workers, colleagues in
other organizations. The type of reference person or comparison person an employee chooses
will be influenced by the information the employee holds about referents, as well as by the
attractiveness of the referent. There are many factors which moderate the selection of reference
person such as age, sex, education, tenure, nature of job etc.
Employees who feel they are being treated inequitably may exhibit the following behaviors:
 Put less effort into their jobs

 Ask for better treatment and/or rewards
 Find ways to make their work seem better by comparison
 Transfer or quit their jobs
Implications of Equity Theory
The equity theory makes a good point: People behave according to their perceptions. What a manager
thinks is irrelevant to an employee because the real issue is the way an employee perceives his or her
situation. Rewards perceived as equitable should have positive results on job satisfaction and

performance; those rewards perceived as inequitable may create job dissatisfaction and cause
performance problems.
Every manager needs to ensure that any negative consequences from equity comparisons are
avoided, or at least minimized, when rewards are allocated. Informed managers anticipate
perceived negative inequities when especially visible rewards, such as pay increases or
promotions, are allocated. Instead of letting equity concerns get out of hand, these managers
carefully communicate the intended values of rewards being given, clarify the performance
appraisals upon which these rewards are based, and suggest appropriate comparison points.
3.2. Vroom Expectancy Model
Victor Vroom introduced one of the most widely accepted explanations of motivation. Very
simply, the expectancy theory says that an employee will be motivated to exert a high level of
effort when he or she believes that:
1. Effort will lead to a good performance appraisal.

2. A good appraisal will lead to organizational rewards.
3. The organizational rewards will satisfy his or her personal goals.
The key to the expectancy theory is an understanding of an individual's goals and the
relationships between effort and performance, between performance and rewards, and finally,
between the rewards and individual goal satisfaction. When an employee has a high level of
expectancy and the reward is attractive, motivation is usually high.
Therefore, to motivate workers, managers must strengthen workers' perceptions of their efforts
as both possible and worthwhile, clarify expectations of performances, tie rewards to
performances, and make sure that rewards are desirable.
Porter and Lawler Expectancy Model
Porter and Lawler improved on Vroom’s model and proposed a comprehensive model of
motivation encompassing the moderating effects of abilities and traits and role perception and
accelerating roles of perceived equitable rewards and perceived Effort-Reward probability.
The model highlights two important factors which facilitate or influence to put more effort in
work. They are the valence and perceived Effort - Reward probability.
Expectancy
Perception that effort will
Lead to effective Personal characteristics
performance
(abilities, skills and traits etc)
Instrumentality
Perception that Performance Rewards
Performance will lead to Effort
rewards
Valence
Belief that attractive
Role Perception Opportunities to
Rewards are available
Perform
Fig. Expectancy Theory: Porter and Lawler Model
(i) Valence: The first factor concerns the extent to which the value of reward (valence) that is
likely to be received from their job influences the amount of effort. For instance, if a person is
showing more interest towards the reward or expected outcome, the chances of putting more
effort in his or her work will be very high. If the expected reward is not attractive enough, he will
lower his effort.
(ii) Perceived Effort - Reward probability: The second factor states the influence of perceived
effort - reward probability. If a person feels that the probability of getting reward is very high for
given level of effort, he will more likely to put high level of effort in his work. There are other
two significant factors which facilitate to maximize the amount of performance. (i) They are
individual’s abilities and role perception.
(iii) Abilities and Traits: If an individual has requisite abilities, skills and traits to perform the
assigned job, he will produce more results than others who do not have such skills to such type
of tasks. Traits include endurance, perseverance and goal-directedness which are relevant for
doing any tasks. These abilities and traits will moderate the effort - performance relationships.
(iv) Role Perception: If an individual has very clear role perception, that is, very clear job
descriptions of what he is supposed to do in his tasks without any ambiguity or confusion, the
person will deliver more output. The accuracy of role perception is another variable that
moderate the effort – Performance relationship. That is, only those who perceived their role as it
is defined by the organization will be able to perform when they put forth the required effort in
their job.
Types of rewards: Performance will result in getting various rewards. This can be classified into
intrinsic and extrinsic rewards. Intrinsic rewards are those which are derived within oneself by
getting the feelings of job satisfaction, self-esteem, sense of competence and realizing one’s own
potentialities. Extrinsic rewards are those external rewards that are given by others in the work
environment such as money, promotion, security, incentives etc. Both these types of rewards will
result in satisfaction. Once again, the Reward - Satisfaction relationships is moderated by the
perceived equitable rewards, that is, satisfaction will be experienced only when the person feels
fairly and rewarded for his efforts.
Implications of Porter and Lawler Model:

Porter and Lawler’s model is of great significance to managers since it sensitizes them to focus
attention on the following to keep their employees motivated.

i) Assigning right type of jobs to right types of person, ensuring perfect match between person
and job.
ii) Providing a clear job descriptions and highlighting what a person is expected of in his work
(role perception)
iii) Assigning the proper performance levels such s quantity, waste control number of customer
attended etc.
iv) Ensuring that the rewards given to their employees are very attractive to them. If high levels
of motivation are to be induced, managers should ensure that the employees perceive a direct
link between performance and desired rewards. If significant changes in performance levels are
desired, the rewards given must also be significant and valued enough by the employees to
change their effort levels. The Porter and Lawler model is useful in understanding by the
dynamic of motivation at the work place.
3.3 Reinforcement theory
The reinforcement theory, based on E. L. Thorndike's law of effect, simply looks at the
relationship between behavior and its consequences. This theory focuses on modifying an
employee's on-the-job behavior through the appropriate use of one of the following four
techniques:
 Positive reinforcement rewards desirable behavior. Positive reinforcement, such as a pay raise
or promotion, is provided as a reward for positive behavior with the intention of increasing the
probability that the desired behavior will be repeated.
 Avoidance is an attempt to show an employee what the consequences of improper behavior will
be. If an employee does not engage in improper behavior, he or she will not experience the
consequence.
 Extinction is basically ignoring the behavior of a subordinate and not providing either positive
or negative reinforcement. Classroom teachers often use this technique when they ignore
students who are “acting out” to get attention. This technique should only be used when the
supervisor perceives the behavior as temporary, not typical, and not serious.
 Punishment (threats, docking pay, suspension) is an attempt to decrease the likelihood of a
behavior recurring by applying negative consequences.
The reinforcement theory has the following implications for management:
 Learning what is acceptable to the organization influences motivated behavior.

 Managers who are trying to motivate their employees should be sure to tell individuals what they
are doing wrong and be careful not to reward all individuals at the same time.
 Managers must tell individuals what they can do to receive positive reinforcement.
 Managers must be sure to administer the reinforcement as closely as possible to the occurrence
of the behavior.
 Managers must recognize that failure to reward can also modify behavior. Employees who
believe that they deserve a reward and do not receive it will often become disenchanted with
both their manager and company.

3.4 Goal-setting theory
The goal-setting theory, introduced in the late 1960s by Edwin Locke, proposed that intentions to
work toward a goal are a major source of work motivation. Goals, in essence, tell employees
what needs to be done and how much effort should be expanded. In general, the more difficult
the goal, the higher the level of performance expected.
Managers can set the goals for their employees, or employees and managers can develop goals
together. One advantage of employees participating in goal setting is that they may be more
likely to work toward a goal they helped develop.
No matter who sets the goal, however, employees do better when they get feedback on their
progress. In addition to feedback, four other factors influence the goals-performance
relationship:
 The employee must be committed to the goal.

 The employee must believe that he is capable of performing the task.
 Tasks involved in achieving the goal should be simple, familiar, and independent.
 The goal-setting theory is culture bound and is popular in North American cultures.
If the goal-setting theory is followed, managers need to work with their employees in
determining goal objectives in order to provide targets for motivation. In addition, the goals that
are established should be specific rather than general in nature, and managers must provide
feedback on performance.
Unit summary
In this unit, we have discussed about the content and process theories of motivation. These
theories help to understand the dynamics of what motivates people.
Activity 5.
1. What are the similarities and differences between Maslow’s

hierarchy?
2. Describe Herzberg’s motivation- hygiene theory.
3. Explain the expectancy theory by Porter and Lawler.
4. Discuss the managerial implications of underpaying and over

payment of employees from the view point of equity theory.
6. Explain the Adam’s Equity model and its implications for managers.

UNIT B11.6: WORK STRESS
1.0 INTRODUCTION
This unit focuses on work stress. Stress is a prevalent and costly problem in today’s workplace. The
National Institute for Occupational Safety and Health (NIOSH) in America defines work stress as the
harmful physical and emotional responses that occur when requirements of the job do not match the
capabilities, resources, or needs of the worker. By definition stress is the adverse psychological and
physical reactions that occur in individuals as a result of their being unable to cope with the demands
being made on them. Stress is associated with constraints and demands. The former prevents one from
doing what they desire.
Learning Outcomes
 Explain how to recognize the causes and signs of work stress in employees.
 Identify various strategies that can be used in an organisation to manage
stress among employees.
2.0 Definition
Stress is defined in terms of its physical and physiological effects on a person, and can be a mental,
physical or emotional strain. It can also be a tension or a situation or factor that can cause stress.
Occupational stress can occur when there is a discrepancy between the demands of the
environment/workplace and an individual’s ability to carry out and complete these demands.
2.1 Types of Stress
There are two types of stress namely positive and negative stress. The positive stress is called eustress
which is pleasurable stress that accompanies positive events such as being promoted, getting married
etc. The negative stress is called distress and this is the stress that accompanies negative events such
death of a loved one, divorce etc.
2.2 Causes of Stress
Generally there are three sets of factors that may contribute to work stress; these may be seen at three
levels, i.e. environmental, organisational and individual.
2.2.1 External Environmental Factors
Economic situation for the industry – especially where the industry is in decline and redundancies are
commonplace.

Development of new technology – may lead to fewer jobs and /or Skill requirements; and pressure to
acquire new knowledge and skills.
Political changes may affect organisations vulnerable to political Influence – e.g. state owned
businesses, key industries in energy, military Equipment, etc.

2.2.2 Organisational Factors
Organisation structure – Especially where the pattern of jobs, roles, rules and regulations, constrain
the individual’s range of choices in how to do the job.
Communications channels – where these do not facilitate communication with colleagues.
Organisational culture – especially if the dominant ethos is one of internal Competition for resources,
rewards etc, or where a ‘hire and fire’ policy operates.
Management Style – especially where the individual finds it difficult to adapt to a superior’s
management style because it is too autocratic or too participative
Career development – especially where individuals’ efforts are unrecognised by promotion, or further
training, or where a flatter structure limits prospects.
2.2.3 Job Characteristics
Physical conditions – where the individual finds these uncomfortable and/or dangerous to health.
Job Demands – where the task is seen as boring, repetitious, or offering insufficient challenge; or even
simply too excessive for one person.
Degree of autonomy –where this is insufficient to meet either the demands of the job/or the
expectations of the job holder.
Role conflict – i.e. where the organisation’s expectations of the role either (1) lead to confusion with
related roles, or (2) do not meet the job-holder’s expectations
2.2.4 Work relationships
Superiors – especially where individuals fail to achieve a reasonable working relationship with their
immediate superior.
Colleagues - an inability to get on reasonable terms with fellow team-members or colleagues from other
sections can be source of considerable unhappiness; women, in particular, may suffer from male
patronage or sexual harassment.
Own staff – many people appointed to a leadership role in the organisation find it stressful to deal with
the demands of their own staff.
Customers/suppliers/other outside people – these stakeholders can be a source of stress, especially for
those dealing with customer services.
2.2.5 Personal Factors
Individual perception of role/job etc – as noted above, the individual’s perceptions of tasks etc and
their difficulty is a key factor in the stress formula.
Personality type – research suggests that certain types of personalities are much more vulnerable to
stress symptoms than others.
Inability to adapt to change – adaptable individuals are less prone to stress than those who are
inflexible.
Motivation – is where a person is deeply committed to his or her work they are more likely to find ways
of coping with potentially stressful situations than someone with a low commitment.
Tolerance for ambiguity – where an individual can tolerate uncertainty (e.g. role/task ambiguity),
stress is less likely.
Domestic situation/Home life – upheavals at home due to family illness, care of elderly parents,
unhappy marriage, etc.
3.0 SYMPTOMS OF STRESS
Symptoms of stress are typically analysed under three headings – physiological, psychological and
behavioural. Common symptoms as follows:
Physiological – addition to short term reactions such as increased heart beat, tensed muscles and extra
adrenalin secretion which are a human being’s instinctive reaction to danger, the chronic (i.e. longer
term) effects of stress are associated with such unhealthy conditions as coronary heart disease, high
blood pressure, indigestion, gastric ulcers, back pain and even cancer. Stress is also likely to be
manifested in less serious infections, allergies and physical disorders.
Psychological – in chronic situations the psychological symptoms of stress tend to become manifest in
anxiety states (phobias, obsessions etc) and depression. In less serious cases, stress emerges in the form
of tension, irritability, boredom and job dissatisfaction.
Behavioural – ultimately the physiological and psychological symptoms lead to generalized changes in
behaviour such as loss of appetite, increased cigarette smoking and alcohol consumption and
sleeplessness. In the workplace behaviour may take the form of increased absence (fight), aggression
towards colleagues (fight), committing more errors than normal and taking longer over tasks. In utterly
intolerable conditions individuals may leave the organisation and seek work elsewhere or sink into
despair at home. The loss to the community resulting from stress-related conditions is estimated to be
substantial.
4.0 Strategies of Coping with Stress
Employers can do a lot to prevent stress among employees and also deal with those who may be
suffering from stress. Firstly, and these apply only if the causes of the stress are work-related, they
can investigate the source and take appropriate action, such as:
 Change individual’s job responsibilities (give more or reduce)

 Provide greater opportunity for personal autonomy in job.
 Set agreed job targets for employees
 Provide appropriate training (e.g. in time management, assertiveness etc)
 Permit flexible hours; reduce time spent away from home etc.
 Put a stop to any bullying and sexual/racial harassment
 Improve physical working conditions
 Relocate employee to another office or work-base
 Provide counseling facilities
Unit summary
In this unit you have learnt about work stress. A number of cause of work stress have been
identified and how to deal with them effectively.
Activity 6.0
1. Define work stress.

2. State the causes of stress and strategies to deal with work stress.

UNIT B11.7: NATURE OF GROUP IN ORGANISATIONS
1.0 Introduction
Organizations are not just collections of individuals working alone; members are usually
clustered into groups or teams. Groups can accomplish that are difficult for individuals working
alone. For the manager in an organization, the behavior and performance of group provide the
primary mechanism for the attainment of organization goals, In order to provide for effective
goal accomplishment, the manager must be familiar with the process of influencing group
behaviour. This unit focuses on the nature and functioning of work groups, such as how work
groups develop and how group membership affects individual behaviour.
Learning Outcomes
 Define a group and identify group characteristics.

 Identify the functions of groups in organisations;
 Explain the Tuckman model of group development and its application in work
life situations;
 Understand the patterns of group interaction and communication.
 Utilise strategies for building effective teams
2. Definitions
A group is defined as a collection of two or more individuals who are interdependent and interact
with one another for the purpose of performing to attain a common goals or objective. The
principal characteristics presented in this definition – goals, interaction and performance are
crucial to the study of behavior in organizations. A group is a collection of individuals in which
the existence of all (in their given relationships) is necessary to the satisfaction of certain
individual needs to each. In order to satisfy certain needs relating to social interactions,
employees may informally (or formally) join together to form various social, civic, or
recreational groups within organizations.
Various methods are used to classify the types of groups that exist in our organizations. In
organizations, the predominant operating groups are the functional groups, task or project groups
and interest groups. In addition, groups are also classified as formal and informal groups.
Formal groups
Formal groups are collections of employees who are made to work together by the organization
to get the job done smoothly and efficiently. For example, if five members are put together in a
department to attend to customer complaints they would be a formal group. The formal groups
are those whose primary purpose is facilitating, through member interactions, the attainment of
the goals of the organization. ii) Informal groups: Informal groups are groups that emerge or
randomly get formed due to the formal group members’ interaction with each other, and thereby
develop common interest. For example, members who are showing interest in soccer will join
together and share and enjoy talking about the soccer games. Informal groups provide a very
important service by satisfying their members’ social needs. Because of interactions that result

from the close proximity of task interactions, group members play soccer together, spending
their tea breaks together etc.
Functional Groups
The functional group in an organization is a group generally specified by the structure of the
organization. It involves a superior-subordinate relationship and involves the accomplishment of
ongoing tasks and generally considered as formal group. Example is a Manager of accounting
department supported by staff accountants, financial analyst, and computer operators etc.
Task or Project Groups

When a number of employees are formally brought together for the purpose of accomplishing a
specific task – for a short-term or long term period, such a collection of individuals is called a
task or project group. For example, the plant manager of a chemical processing plant may be
interested in identifying potential safety problems in the plant. To provide a coordinated effort,
the manager creates a four-person task force consisting of the production superintendent,
maintenance superintendent, director of engineering and the safety engineer. The group members
will deliberate these issues, bring out suitable remediable measure for those safety problems
within a deadline period. If any problems are found, the plant manager may create other task
forces to work toward the elimination of the potential problems. These activities create a
situation that encourages the members of the task force to communicate, interact and to
coordinate activities, if the purpose of the group is to be accomplished.
Interest and Friendship Groups

The group members form relationships based on some common characteristics such as age,
political belief, or interests. Generally, it can be considered as formal or informal group.
Employees who joined together to have their fringe benefits continued to have its
implementation, to support a peer who has been fired, or to seek more festival holidays etc. they
tend to unite together to further their common interest. Groups often develop because the
individual members have one or more common characteristics. This is called friendship groups.
For example, recreation clubs, social groups etc.
3. Characteristics of a group
Norms: Every group has a set of norms: a code of conduct about what is acceptable behaviour.
They may apply to everyone in the group or to certain members only. Some norms will be
strictly adhered to while others permit a wide range of behaviour. The group usually has
sanctions (e.g., disapproval) which it may apply in the case of "deviation". Common norms in
groups include: taboo subjects, open expression of feelings, interrupting or challenging others,
volunteering one's services, avoiding conflict, length and frequency of contributions.
Interdependence: In order for an individual of the collective to accomplish their part in the
assigned task they depend, to some degree, on the outputs of other members of the collective.
Social interaction: In order to accomplish the goal some form of verbal or nonverbal
communication is required to take place amongst the members of the collective.

Perception of a group: All members of the collective must agree they are, in fact, part of a
group.
Commonality of purpose: All the members of the collective come together to serve or attain a
common goal.
Reasons For Joining Groups
The most popular reasons for joining a group are related to our needs for security, identity,
affiliation, power and engaging in common tasks.
Security: By joining a group, members can reduce the insecurity of being alone. The
membership will make them feel stronger, gaining resistant to threats, having fewer self-doubts
etc. New employees are particularly vulnerable to a sense of isolation and turn to the group for
guidance and support.
Status: Inclusion in a group that is viewed as important by others provides recognition and status
for its members. Being a member of Rotary Club, the members feel pride and gain status and
recognition.
Self-esteem: Groups can provide people with feelings of self-worth. That is, in addition to
conveying status to those outside the group, membership can also give increased feelings of
worth to the group members themselves. The self-esteem is bolstered when members are
accepted by a highly valued group. Being assigned to a task force whose purpose is to review
and make recommendations for the location of the company’s new corporate head quarters can
fulfill one’s intrinsic needs for competence and growth.
Affiliation: Groups can fulfill social needs. People enjoy the regular interaction that comes with
group membership. For many people, these on-the-job interactions at work are the primary
source for fulfilling their needs for affiliation.
Power: For individuals who desire to influence others, groups can offer power without a formal
position of authority in the organization. As a group leader he or she may be able to make
requests of group members and obtain compliance without any of the responsibilities that
traditionally go either formal managerial position.
Goal achievement: There are times when it takes more than one person to accomplish a
particular task; there is a need to pool talents, knowledge in order to complete a job. In such
instances, management will rely on the use of a formal group.
4. Group Development
There are different types of Group development Models however the Tuckman Five model is
commonly referred to and simpler to understand. The model characterizes groups as proceeding
through five distinct stages: forming, storming, norming, performing and adjourning.
i) Forming

At this stage, group members try to comprehend where they stand in the group and how they are
being perceived by others in the group. The members are very cautious in their interactions with
each other and the relationships among the group members are very superficial. Members’
seldom express their feelings in the group and the individual members who are trying to
understand who they are in the group have concerns about how they will fit in the group as
permanent group members. This is characterized by much uncertainty about group’s purpose,
structure and leadership. Members are ‘testing the waters’ to determine what types of behavior
are acceptable. This stage is complete when members have begun to think of themselves as part
of a group.
ii) Storming
At this stage, disagreement tends to get expressed among the group members, and feelings of
anxiety and resentment are also expressed. Some power struggle may ensure at this stage to
determine who should assume the informal leadership role in the group. This storming stage is
also known as the sub-grouping and confrontation. This group is characterized by intra-group
conflict. Members accept the existence of the group, but there is resistance to the control the
group imposes on individuality. There is sometimes conflict over who will control the group.
When this stage is complete, there will be a relatively clear hierarchy of leadership within the
group.
iii) Norming
This stage is characterized by close relationships and cohesiveness. The group sets norms, tries
to attain some degree of cohesiveness, understands the goals of the group, starts making good
decisions, expresses feelings openly and makes attempts to resolve problems and attain group
effectiveness. At this stage, members’ roles get defined, and task and maintenance roles are
assumed by group members. Group members’ also begin to express satisfaction and confidence
about being members of the group.
iv) Performing
This stage is characterized by collaboration and integration. The group members evaluate their
performance so that the members develop and grow. The group relationships and structures are
set and accepted. Group energy has moved from getting to know and understand each other, to
performing the task at hand. Feelings are expressed at this stage without fear, leadership roles
shared among the members, and the group members’ activities are highly co-coordinated. The
task and maintenance roles are played very effectively. The task performance levels are high and
member satisfaction, pride and commitment to the group are also high. Both performance and
members’ satisfaction are sustained indefinitely.
v) Adjourning
This stage is characterized by concern with wrapping up activities rather than task performance.
The group prepares for its disbandment. High task performance is no longer the group’s top
priority. Instead, attention is directed towards finalizing activities. As the group approaches the
terminal phase, members break off their bonds of affection and stop interaction with each other.
Responses of group members vary in this state. Some feel pride in what the group has
accomplished. Others may be negative and critical of the way the organization has treated the
group and others may be sad over the loss of friendship gained during the life of the work
groups. These five stages of group development are only a suggestive and not prescriptive.
Sometimes, groups do not always proceed clearly from one stage to the next. Sometimes, several
stages go on simultaneously as when groups are storming and performing at the same time.
Under some conditions, high levels of conflict are conducive to high group performance.
5 . Team building Team building refers to a wide range of activities, presented to businesses,
schools, sports teams, religious or nonprofit organizations designed for improving team
performance. Team building is pursued via a variety of practices, and can range from simple
bonding exercises to complex simulations and multi-day team building retreats designed to
develop a team. Team building is not to be confused with "team recreation" that consists of
activities for teams that are strictly recreational. Team building can also be seen in day-to-day
operations of an organization and team dynamics can be improved through successful leadership.
Team building is an important factor in any environment, its focus is to specialize in bringing out
the best in a team to ensure self development, positive communication, leadership skills and the
ability to work closely together as a team to problem solve.
The overall goals of team building are to increase the teams understanding of team dynamics and
improve how the team works together. Unlike working as a group, working as a team incorporates
group accountability rather than individual accountability and results in a collective work product.
Characteristics of Effective Teams
Clear Purpose: Members understand and are fully committed to the vision, mission, goals, and
objectives of the team. Ineffective teams lack clarity of purpose, a plan and specific goals. Members
wonder, wander and pull in different directions.
Open Communication: Effective teams pride themselves on open, participatory communication

and vigorous discussions. Ineffective teams are marked by gossip, hidden agendas and guarded
communication.
Constructive Conflict: In effective teams, there's disagreement, but members are comfortable with
this and deal with it openly. There are very few signs of avoiding or suppressing conflict. Ineffective
teams lack trust and are often undermined by personal disagreements and their inability to resolve
conflict constructively.
Effective Problem Solving and Decision-making: Approaches to problem solving and decision
making are well established in effective teams. Ineffective teams lack problem-solving strategies and
are stymied by inefficient decision-making processes and low quality decisions.
Defined Roles, Responsibilities and Accountability: Roles, responsibilities, expectations and

authorities are well defined, understood and accepted. Work is fairly distributed and skills are well
represented with team members' abilities recognized and fully utilised. Team members are fully
accountable for individual and collective team performance. Ineffective teams struggle with role
conflict, unclear boundaries, confused expectations and poor accountability.
Strong Relationships: Effective teams work on building and maintaining internal relationships.
Team members are supportive; trust one another and have a lot of fun together. Members also invest

in developing relationships and building credibility with important stakeholders in other parts of the
organization. Poor collaboration, low morale, cliques and silos characterize ineffective teams.
Systems and Procedures: Effective teams implement and support procedures to guide and regulate
team functioning. Ineffective teams rarely invest in developing their team systems or
Experimentation and Creativity: Well functioning teams encourage creativity and risk taking and
experiment with different ways of doing things. Ineffective teams often are bureaucratic, low risk
and rigid.
Measurement and Self-assessment.: Effective teams have clear shared measures. They schedule
time to regularly assess their progress and performance, identifying achievements and areas for
improvement. Ineffective teams tend focus on individual measurement and rarely review their
collective performance.
Shared Leadership: Effective teams share leadership roles depending upon the circumstances, needs
of the group, and expertise of members. The formal leader co-ordinates the integration of effective
team functions and models appropriate behaviour to help establish positive norms. Ineffective teams
often have one person dominating.
Strategies a leader should employ to enhance team building
1. Establish clear and inspiring team goals

2. Maintain a results-oriented team structure
3. Assemble competent team members
4. Strive for unified commitment
5. Provide a collaborative climate
6. Encourage standards of excellence
7. Furnish external support and recognition
8. Apply principled leadership

In this section, we have discussed about the different types of groups and the reasons for forming
groups. We have also learnt about group development model. We have discussed
Activity 3.0
1. Critically review the types of groups and its application in

organization.
2. What are reasons for joining groups?
3. Explain Tuckman five stage life cycle model and its implication in
developing groups.

UNIT B11.8: THE NATURE OF AUTHORITY AND POWER IN ORGANISATIONS
1.0 INTRODUCTION
This unit focuses on authority and power in organisations. Organizational structure is a means of
facilitating the achievement of organizational objectives. Such structures are not static, but dynamic. They
reorganize in response to changing conditions that occur in the environment, new technology, or
organizational growth. Organization structures are dependent upon the employees whose activities they guide.
Managers rely upon power and authority to ensure that employees get things done.
Learning Outcomes
 Distinguish between authority and power

 Identify various power tactics that are used in an organisation.
2.0 Authority
The organizational structure provides the framework for the formal distribution of authority.
Formalization is the degree to which tasks are standardized and rules and regulations govern employee
behavior. It influences the amount of discretion an employee has over his or her job. In an organization
with high degrees of formalization, job descriptions and policies provide clear direction. Where
formalization is low, employees have a great deal of freedom in deciding how they conduct their work.
Within the same organization, different departments may have different degrees of formalization.
Authority is the legitimate power of a supervisor to direct subordinates to take action within
the scope of the supervisor's position. There are three forms of authority are line authority,
staff authority, and team authority.
Line authority is direct supervisory authority from superior to subordinate. Authority flows in a direct
chain of command from the top of the company to the bottom. Chain of command is an unbroken line
of reporting relationships that extends through the entire organization that defines the formal decision-
making structure. It helps employees know to whom they are accountable, and whom to go to with a
problem. Line departments are directly linked to the production and sales of specific products.
Supervisors in line departments, such as marketing and production give direct orders, evaluate
performance, and reward or punish those employees who work for them. Unity of command within the
chain states that each person in an organization should take orders from and reports to only one person.
This helps prevent conflicting demands being placed on employees by more than one boss. However,
the trend toward employee empowerment, fueled by advances in technology and changes in design
from downsizing and reengineering have tempered the importance of being accountable to only one
superior. Span of control refers to the number of employees that should be placed under the direction
of one manager. Spans within effective organizations vary greatly. The actual number depends on the

amount of complexity and the level of specialization. In general, a wide span of control is possible with
better-trained, more experienced, and committed employees.
Staff authority is more limited authority to advise. It is authority that is based on expertise and which
usually involves advising line managers. Staff members are advisers and counselors who aid line
departments in making decisions but do not have the authority to make final decisions. Staff
supervisors help line departments decide what to do and how to do it. They coordinate and provide
technical assistance or advice to all advisors, such as accounting, human resources, information
technology, research, advertising, public relations, and legal services.
Team authority is granted to committees or work teams involved in an organization's daily operations.
Work teams are groups of operating employees empowered to plan and organize their own work and to
perform that work with a minimum of supervision. Team-Based structures organize separate
functions into a group based on one overall objective.
2.0 Power
In addition to authority, supervisors have more personal sources of power to draw upon for getting
things done. Everyone has power in one form or another and it is by exercising this power that
organizations get things accomplished. Supervisors who are capable of achieving their objectives
independently of others are said to possess strength. When these "strong" supervisors involve and
incorporate others into their plans and activities they are making use of power, and in fact increasing the
total amount of power available to incorporate into a particular situation or problem. Involving
employees in setting objectives and making decisions as it relates to their jobs empowers everyone, and
results in greater job satisfaction and commitment, as well as increased productivity. Empowering
employees provides them with greater autonomy.
Power is the ability to exert influence in the organization beyond authority, which is derived from
position. The supervisor's personal power could include job knowledge, personal influence,
interpersonal skills, and ability to get results, empathetic ability, persuasive ability, and physical
strength. J.P. French and B. Raven ("The Bases of Social Power" in Studies in Social Power, edited by
D. Cartwright, Institute for Social Research, 1959, pp. 150-167) identify six sources of power:
legitimate, coercive, reward, expert, referent, and information. Legitimate power is a result of the
position a person holds in the organization hierarchy. This position power is broader than the ability to
reward and punish, as members need to accept the authority of the position. Coercive power is the
threat of sanctions. It is dependent on fear and includes, but is not limited to the ability to dismiss, assign
undesirable work, or restriction of movement. Reward power results in people doing what is asked
because they desire positive benefits or rewards. Rewards can be anything a person values (praise,
raises, and promotions). Expert power comes from expertise, skill, or knowledge. Referent power
refers to a person who has desirable resources or personal traits. It results in admiration and the desire to
emulate. Information power is based upon the persuasiveness or content of a communication and is
independent of the influencing individual.
3.1 Power Tactics/Strategies

This refers to ways in which individuals translate power bases into specific action or ways power holders get what
they want from those they influence or manage. Seven tactical dimensions or strategies have been identified and
they include:

 Reason: Use of facts and data to make logical or rational presentation of ideas.
 Friendliness: Use of flattery, creation of good will, acting humble and being friendly prior to
making a request.
 Building Coalition: Getting support of other people in the organization to back up the
request.
 Bargaining: Use of negotiation through exchange of benefits or

favours.
 Assertiveness: Use of directive and forceful approaches such as demanding compliance with
requests, repeating reminders, etc.
 Higher Authority: gaining the support of higher levels in the organization to support the
request.
 Sanctions: Use of organizationally derived rewards and punishments
 Making oneself irreplaceable
To effectively use power is a great challenge for managers and employees alike. The ultimate
goal is to influence the behaviour of others in ways that are consistent with both the needs of the
organisation and its employees. If the use of power is not carefully managed, powerful
individuals may exploit those with less power.
Unit summary
In this unit you have learnt about the nature of authority and power in organisations. In order to
manage and to be managed in the organization efficiently every individual starting from the top
to bottom needs to have knowledge of power and power and power sources in the organization.
Power structure of an organization is revealed from the organization chart. It shows only the
formal sources of power being possessed by the individuals, group and the departments in the
organization. It also reveals how decisions are made in the organization.
There are formal and informal sources. While formal sources of power are legitimate but people
do use informal sources of power to get advantages of the organization in their favour. As
positions are limited in the organization, so is the positional power.

Activity 6.0
1. What you understand by the terms authority and power?

2. Explain various power tactics that are used by managers in
organisations?

UNIT B11.9: MANAGING CONFLICTS IN ORGANISATIONS
1.0 Introduction
Conflicts are common in all organizations and are inevitable. They may arise as a result of a
disagreement over goals or on the means to be adopted to attain them. Conflict is also a
perceptual issue. Individuals or groups may have differences of opinion, but if either of the
parties is unaware of these differences, conflict will not arise. Once the parties involved
recognize the differences, conflict surfaces and the parties look for ways to resolve the
differences.
Learning Outcomes
 Understand the process of conflict and why conflicts arise in organizations;

 Appreciate conditions leading to conflict and the effects of conflicts;
 Develop strategies for managing conflict.
2.0 Nature of conflict
Conflict is inevitable whenever two or more people interact, whether in the workplace or at
home. Conflict can occur between two or more individuals, two or more groups, or an individual
and a group. When dealing with conflict in an organization, it is important to remember to
address the issue, not the people.
2.1 Sources of Conflict
Several factors may create organizational conflict. They are as follows:
 Scarce Resources. Resources may include money, supplies, people, or information. Often,
organizational units are in competition for scarce or declining resources. This creates a situation
where conflict is inevitable.
 Jurisdictional Ambiguities. Conflicts may also surface when job boundaries and task
responsibilities are unclear. Individuals may disagree about who has the responsibility for tasks
and resources.
 Personality Clashes. A personality conflict emerges when two people simply do not get along or
do not view things similarly. Personality tensions are caused by differences in personality,
attitudes, values, and beliefs.
 Power and Status Differences. Power and status conflict may occur when one individual has
questionable influence over another. People might engage in conflict to increase their power or
status in an organization.
 Goal Differences. Conflict may occur because people are pursuing different goals. Goal conflicts
in individual work units are a natural part of any organization.
 Communication Breakdown. Communication-based barriers may be derived from differences in
speaking styles, writing styles, and nonverbal communication styles. These stylistic differences
frequently distort the communication process. Faulty communication leads to misperceptions and
misunderstandings that can lead to long-standing conflict. Additional barriers to communication
may emerge from the cross-gender and cross-cultural differences of participants. Such
fundamental differences may affect both the ways in which the parties express themselves and
how they are likely to interpret the communication they receive. These distortions, in turn,
frequently result in mis-reading by the parties involved. Moreover, it is common for the parties
involved to be oblivious to these false impressions. The resultant misunderstandings
subsequently lead the parties involved to believe that a conflict based on misunderstood behavior
exists when, in fact, no conflict actually does exist. Miller and Steinberg call this misreading
"pseudo-conflict," that is, perceived conflict rather than actual conflict. Much of what managers
take to be an actual conflict is the product of such pseudo-conflict.
3.0 Strategies for Conflict Resolution
Conflict can be handled using behaviour styles such as competition, collaboration, compromise,
avoidance or accommodation, depending upon the situation.
1. Avoiding Conflict Resolution Style. The avoiding style is low on both assertiveness and
cooperativeness. In other words, the manager is not very cooperative in helping the other
individuals to achieve their goals, but neither is he/she aggressively pursuing his/her own
preferred outcomes in the situation. The original problem, conflict, or situation is never directly
addressed or resolved. However, avoiding behavior might be appropriate when the issue is
perceived by the manager to be trivial. It might also be an appropriate approach to use when
there is no chance of winning or when disruption would be very costly.
2. Competing Conflict Resolution Style. The competing style of resolving conflict is also known as
the win-lose approach. A manager using this style, characterized by high assertiveness and low
cooperativeness, seeks to reach his/her own preferred outcomes at the expense of other
individuals. This approach may be appropriate when quick, decisive action is needed, such as
during emergencies. It can also be used to confront unpopular actions, such as urgent cost
cutting.
3. Accommodating Conflict Resolution Style. This style reflects a high degree of cooperativeness.
It has also been labeled as obliging. A manager using this style subjugates his/her own goals,
objectives, and desired outcomes to allow other individuals to achieve their goals and outcomes.
This behavior is appropriate when people realize that they are in the wrong or when an issue is
more important to one side than the other. This conflict resolution style is important for
preserving future relations between the parties.
4. Compromising Conflict Resolution Style. This style is characterized by moderate levels of both
assertiveness and cooperativeness. Compromise can also be referred to as bargaining or trading.
It generally produces suboptimal results. This behavior can be used when the goals of both sides
are of equal importance, when both sides have equal power, or when it is necessary to find a
temporary, timely solution. It should not be used when there is a complex problem requiring a
problem-solving approach.

5. Collaborating Conflict Resolution Style. This approach, high on both assertiveness and
cooperativeness, is often described as the win-win scenario. Both sides creatively work towards
achieving the goals and desired outcomes of all parties involved. The collaboration style is
appropriate when the concerns are complex and a creative or novel synthesis of ideas is required.
The downside of this approach is that the process of collaborating mandates sincere effort by all
parties involved and it may require a lot of time to reach a consensus.
6. Improving organizational practices: Such as;
Establishing super ordinate goals,

Reducing vagueness,
Minimizing authority- and domain-related disputes,
Improving policies, procedures and rules,
Re-apportioning existing resources or adding new,
Altering communications,
Movement of personnel, and
Changing reward systems.
Unit summary
In this unit, we have discussed about the conflict and some of the causes of conflicts in
workplaces. We have also learnt about the types of conflict and the different strategies for
resolving conflicts.
Activity 9.0
1. State the different types of conflict

2. Explain the strategies for resolving conflicts.

UNIT B11.10: MANAGING CHANGE IN ORGANISATIONS
1 Introduction
1
Changes are constantly taking place in our environment. Changes occur outside organization that
requires internal adaptation. The manager has to ensure that individual and groups in
organizations, and structures, process and behaviors of sub-systems must adapt to the changing
external and internal environments. In effect, the manager is a change agent who facilities
changes to occur in the various subsystems of the organization needed. Changes at the individual
level can be facilitated by offering special training to particular employees to handle a new
assignment. At group level, team building efforts can be initiated to operate interactively in a
smooth and harmonious fashion so as to increase their effectiveness.
Learning Outcomes
 Understand the dynamics of change process and identify the various external and
internal forces for the change process.
 Describe the various individual and organizational factors which are resisting the
change process.
 Outline the strategies to overcome the resistance to the change process and its benefits
to the organization.
 Describe various approaches to managing organizational change process.
2.0 Definition of Change
Organisational change is the term used to describe the transformation that an organization goes
through in response to a strategic reorientation in response to various strategic changes taking
place inside or outside the organization.
Changes can be brought at the technological level through implementation of sophisticated and
more effective machines or by better ways of doing things. At the structural level, job can be
redesigned or new policies initiated which serve the needs of both employees and the
organization. Changes at the perceptual, attitudinal and behavioral levels can be brought about
by changing the organizational climate. By being able to scan the internal and external
environment of the organization and deciphering how changes in these environments are likely
to widen the gap between desired and actual state of affairs (performance, productivity, customer
satisfaction, employee satisfaction etc), the manager can become an effective change agent for
introducing planned changes.

3.0 Factors Influencing Change
There are both external and internal forces that result in pressure for change:
External Forces: The external forces that create the need for change come from various sources.
Some of them are as follows:
Competitive Market Forces

Competition is changing. The global economy means that competitors are as likely to come from
across the ocean as from across town. Heightened competition also means the established
organizations need to defend themselves against both traditional competitors that develop new
products and services and small, entrepreneurial firms with innovative offers. Successful
organizations will be the ones that can change in response to the competitor.
Government laws and regulations

These are frequent impetus for change. Creation of special economic zones and foreign direct
investment in the country has sparked off major changes in the IT Industries, Insurance, and Car
manufacturing industries. More foreign investors are setting up manufacturing plants and
generating more employment opportunities in Zambia.
Technology
This creates the need for change. For example, technological developments in sophisticated and
extremely expensive diagnostic equipment have created significant economy of scale for
hospitals and medical centers.
Labor Markets
The fluctuation in labor markets forces managers to change. For instance, the demand for
webpage designers and website managers made it necessary for organizations that need those
kinds of employees to change their human resources management activities to attract and retain
skilled employees in the areas of greatest need.
Economic Changes
Economic changes affect almost all organization. The depreciation of Kwacha value against the
US dollar affects the export prospects of locally manufactured products from Zambia to other
countries in the region and internationally as these products cost more in those countries. But
even in strong economies, uncertainties about interest rates, government budgets deficits and
current exchange rates create conditions that may force organizations to change.
Internal Forces: Internal forces can also stimulate the need for change. These internal forces
tend to originate primarily from the internal operations of the organizations or from the impact of
external changes and they include:
Structural factors
A structural force would be the inability to transmit important information from the top of the
organization to the lower level cadre. Because of numerous layers in the hierarchy, information
moves slowly from one level to the next. This could be viewed as a process or a behavioral
problem involving a failure to communicate effectively.
Strategy
A redefinition or modification of an organization’s strategy often introduces a host of change.
The strategic move of Reliance Industries in getting into retail business in urban and rural
markets made them to introduce a change in the managerial approach as well as the human
relations approach to gain acceptance from the different cross section of the customers.
Organizations Workforce
In recent times, the work force composition is varied and is not very static. Its composition
changes in terms of age, education, sex and so forth. In a stable organization with a large pool of
seasoned executives, there might be a need to restructure jobs in order to retain younger
managers who occupy lower ranks. The compensation and benefit system might also need to be
adapted to reflect the needs of an older work force.
Technology
The introduction of new equipment represents another internal force for change. Employees may
have their jobs redesigned, they need to undergo training on how to operate the new equipment
or they may be required to establish new interactions patterns with their work group.
Employee Attitudes
Employee attitudes such as increased job satisfaction may lead to increased absenteeism, more
voluntary resignations, and even labor strikes. Such events will often lead t o changes in
management policies and practices.
6.1.2 Resistance to Change

In planning for change, the team leaders must take into consideration the various factors on which the
members exhibit their resistance to implement the change process. For example, the company wanted to
install a new software program in cash counter computer terminals to facilitate the fast movement. But
some employees may not respond favorably and display their refusal to cooperate by increasing
absenteeism, sub-standard work, joining of union increased labor turn over etc. Resistance to change can
also be a source of functional conflict. For example, resistance to a reorganization plan or a change in a
product line can stimulate a healthy debate over the merits of the idea and result in a better decision.
Resistance can be overt, implicit, immediate or deferred. It is the easiest for management to deal with
resistance when it is overt and immediate such as employees strike, work slowdown etc. The greater
challenge is managing resistance that is implicit or deferred. Such as loss of loyalty to the organization,
loss of motivation to work, increased errors or mistakes increased absenteeism etc.
Individual Resistance
Individual sources of resistance to change lie in basic human characteristics such as perceptions,
personalities and needs.
 Habit: The team members are habituated or conditioned to do their job or activity in a particular
way. When they are asked to do differently, they tend to respond to resist change. When
employees are asked to move to new office building across the town, they are likely to change
their routine habits like waking up ten minutes earlier, finding new parking place, adjusting to
new office layout, developing new lunch time routine etc.
 Security: The team members with a high need for security are likely to resist change because it
threatens their feelings of safety. When Indian Railway introduced new online booking for their
reservations, employees may have similar fears.
 Economic Factors: If the members feel that the new changes result in lower pay, they may
likely to resist change process. Changes in jobs or established work routine can also arouse
economic fears if people are concerned that they won’t be able to perform the new tasks or
routines to their previous standards, especially when the pay is closely tied to productivity.
 Fear of the Unknown: The cashiers or secretaries might fear the new activities due to lack of
knowledge in operating the new software program. They might develop a negative attitude
towards working with new programs or behave dysfunctionally if required to use them.
Employees in organizations hold the same dislike for uncertainty. For example, if an
organization introduced TQM, the production employees will have to learn statistical process
control techniques. Therefore, they may develop a negative attitude towards TQM or behavior
dysfunctional if required to use statistical techniques.
 Selective Information Processing: Once the team members shape their world through their own
way, they prefer to do their work based on their perceptions. If the change process demands to
follow the new method, the members tend to resist. So individuals are guilty of selectively
processing information in order to keep their perception intact. They hear what they want to hear.
They ignore information that challenges the world they have created.
Organizational Resistance
Some organizations prefer to follow their routine and reluctant to venture new things or follow any new
methods of doing. Government agencies want to continue doing what they have been doing for years,
whether the need for their service changes or remains the same. Six major sources of organizational
resistance have been identified. They are as follows:
 Structural Inertia: Organizations have built in mechanisms to produce stability. For instance,
the training and orientation programs reinforce specific role requirements and skills.
Formalization provides job descriptions, rules and procedures for employees to follow. Once the
routine has been established, organization is very reluctant to adapt to new changes. When an
organization is confronted with the change process, the team members tend to resist.
 Limited Focus of Change: The change process is interlinked. One activity cannot be changed
without affecting the others. If change is introduced in technology without considering the
structural changes, the change in technology is not likely to be accepted. Organizations are made
up of number of interdependent subsystems.
 Group Inertia: Sometimes the group norm or standards could act as a constraint. For example,
the union norms may dictate resistance to change process.
 Threat to Expertise: The change process could threaten the expertise of team members of the
groups. Once the members feel that they are forced to learn something new, they tend to resist.
The introduction of decentralized personal computers, which allow managers to gain access to
information directly from a company’s mainframe, is an example of a change that was strongly
resisted by many information system departments in the 1980s. Because of decentralized end-
user computing was a threat to the specialized skills held by those in the centralized information
system departments
 Threat to Established Power Relationship: The change process can threaten long established
power relationships within the organization. Due to this reason, the members can resist the
change.
 Threat to established resource allocation: The group, which enjoys sizable resources, may not
like to accept the change process that facilitates reduction in their budget.
6.1.3 Overcoming Resistance to Change
John Kotter and Leonard Schlesinger offered six ways of overcoming resistance to change, which are
highly situation dependent. More than one of these techniques may be used in any given situations.
 Education and Communication: If the logic and advantages of the change are explained early
to the team members, resistance can be reduced. This can be achieved through one-to-one
discussions, memos, group presentations, or reports. This tactics assumes that the source of
resistance lies in misinformed or poor communication. If the team members received the full
facts and have their misunderstanding cleared up, their resistance will subside. Once people have
bought into the idea, they will implement the change. The only problem is that this could be very
time consuming process, if too many people are to be communicated with.
 Participation and Involvement: Resistance to change can be reduced or eliminated by having

those involved participate in the decision of the change through meetings and induction. It is
difficult for individuals to resist a change decision in which they participated. Once people have
had an opportunity to contribute ideas and become a part of the change process, they will be less
inclined to see it fail. However, working in committees or task forces is a time consuming
activity, and hence it will take a longer time to bring about changes.
 Facilitation and Support: Easing the change process and providing support for those caught up
in it is another way managers can deal with resistance. Retraining programs, allowing time off
after a difficult period, and offering emotional support and understanding may help. This
emotional support can be given through empathic listening, offering training and other types of
help. Such facilitation and emotional support help individual to deal more effectively with their
adjustment problems. This process can be time consuming and there is no guarantee that it will
always work.
 Negotiation and Agreement: It is sometimes necessary for a team leader to negotiate with
potential resistance or exchange something of value for a lessening the resistance. For instance, if
the resistance is from a few powerful individuals in the team, a specific reward package can be
negotiated that will meet their individual needs. Though in some instances this may be the
relatively easy way to gain acceptance, it is possible that this could be an expensive way of
effecting changes as well. Also, if the use of this strategy becomes public knowledge, others
might also want to try to negotiate before they accept the change.
 Manipulation and Co-optation: The team leader seeks to ‘buy off’ the key members who are
resisting by giving them an important role in the change decision. The team leader’s advice is
sought, not to arrive at a better decision but to get their endorsement. Some of the co-opting
tactics include selectively sharing information and consciously structuring certain types of events

that would win support. This can be a quick and relatively easy and inexpensive strategy to gain
support. However, the purpose will be defeated if people feel they are being manipulated.
 Explicit and Implicit Coercion: The team leaders can force the members to go along with
changes by threats involving loss or transfers of jobs, lack of promotion, etc. Such methods,
though not uncommon, is more difficult to gain support for future change efforts. This strategy
can be particularly resorted to when changes have to be speedily enforced or when changes are
of a temporary nature. Though speedy and effective in the short run, it may make people angry
and resort to all kinds of mean behaviors in the long run.
vi) Reinforce /solidify the change

Management must offer adequate rewards and appreciation to their employees for successful
implementation of the changes and process and getting the expected results. These can also
involve solidifying the change by changing the procedure and process so that change becomes a
regular part of the operation.
vii) Evaluate and improve
The program must be evaluated thoroughly and improve the change program after it has been
under way for a time. Due to negligence of this process, the change programs are sloppy or
superficial. As result, programs are discontinued or abandoned based on the personal feelings or
lack of budget. Surveys and baseline measure should be gathered at the beginning of the program
and repeated once the program has been running for one to two years.
6.1.4 Approaches to Managing Organizational Change
Kurt Lewin argued that successful change in organizations should follow three steps, namely;
i) Unfreezing the status quo
ii) Movement to a new state
iii) Refreezing the new change to make it permanent.
Unfreezing the Status Quo

It is actually the process of preparing the system for change through disconfirmation of the old
practices, attitudes, tendencies, or behaviors. This is the initial phase where those involved in the
change experience a need for something different and a sense of restlessness with the status quo.
In essence, the feeling that the system is hurting itself badly now and desperately requires a
change to survive, is sensed by all. Initiative for changes efforts are taken to overcome the
pressures of both individual resistance and group conformity.
Movement to a new state

Changing or moving is the phase where the changes that have been planned are actually initiated
and carried out. Changes could relate to the mission, strategy, objectives, people, tasks, work
roles, technology, structure, corporate culture, or any other aspects of the organization. Well
thought out changes have to be carefully implemented with participation of the members who
will be affected by the change. Changes incorporated too quickly without adequate preparation
will result in resistance to change.
Refreezing the New Change

It is the last phase of the planned change process. Refreezing ensures that the planned changes
that have been introduced are working satisfactorily, that any modifications, extra considerations,
or support needed for making the changes operational are attended to, and that there is
reasonable guarantee that the changes will indeed fill the gap and bring the system to the new,
desired state of equilibrium. This necessarily implies that the results are monitored and
evaluated, and wherever necessary corrective measures are taken up to reach the new goal. If the
refreezing phase is neglected or temporarily attended to, the desired results will not ensure and
the change may even be total disaster.
6.1.5 ORGANIZATION DEVELOPMENT (OD)
Organization Development refers to all on-going developmental efforts which are oriented
towards making the organization and its members effective. Organization Development connotes
the continuous planned efforts that are made to enhance the structural, process and people
aspects of the system. Such systematic efforts ensure the organization’s survival and growth by
enhancing the quality of work life and the quality of life of the employees in general. In a sense,
OD makes the difference between being and becoming. Being aspect reflects a static state of
things as they currently are and the becoming aspect denotes a developmental aspect of
constantly experiencing a state of growing, developing and reaching new heights. Organizations
develop and grow and so do individuals, groups, and society itself.
Definition of OD
 Organization Development (OD) is a planned, organization wide effort to increase an

organisation’s effectiveness and liability. OD signifies a planned growth and developmental
strategy for organization, making use of knowledge. Currently more behavioral science
knowledge and techniques are used as intervention mechanisms, that is, techniques to bring
about the desired changes.
 Organization Development is a long effort to improve an organisation’s problem solving and
renewal processes, particularly through more effective and collaborative management of
organizational culture.
Organisation Development Values

The OD paradigm values human and organizational growth, collaborative and participative
process and a spirit of enquiry. The following are some of the key values in most OD efforts:
Respect for people: Individuals are perceived as being responsible, conscientious and caring.
They should be treated with dignity and respect.
Trust and support: The effective and healthy organization is characterized by trust,
authenticity, openness and supportive climate.
Power equalization: Effective organizations de-emphasize hierarchical authority and control.
Confrontation: Problems should not be swept under the carpet. They should be openly
confronted.

Participation: The more the people who will be affected by a change are involved in the
decisions surrounding that change, the more they will be committed to implementing those
decisions.
Steps/Sequence of an Organization Development Programme
i) Preliminary stage or first stage; this is the primarily stage for top management of the
organization to decide what kind and what level of changes are required. Such a discussion may
be prompted by any of the following:
o Threatening conditions in the external environment.

o New opportunities for expansion of markets or product ranges.
o Obvious weaknesses in the organisation’s internal situation e.g. employee knowledge and
skills.
o Structuring of jobs etc.
During this discussion some provisional goals will be set and a change agent appointed. The
change agent’s role is principally to guide and facilitate the change process once the initial
approval to proceed has been given.
ii) Analysis and diagnosis; the second stage of the OD programme is the analysis and diagnosis
of problems and issues. Facts, opinion and feelings are brought into the open. Documents are
also reviewed and analyzed (previous budgets, reports, memory etc). Interviews are also used to
collect information from the employees.
iii) Agreement of principal aims and goals for the OD is the third step is the in the programme.
iv) Action planning; an implementation plan is developed based on the assessment of data.
v) Evaluation and review; an evaluation procedure must be put in place to verify what has been
achieved.
vi) Programme revision: The OD programme may be revised in line with the attitudes
Organisation Development Interventions
OD efforts are useful wherever problems and tensions exist. Areas where OD interventions help
encompasses the people side of the organization, the technical and job related aspects and the
structural aspects. Certain OD techniques are also available to obtain information about how
effective the organization is perceived to be by significant others and how its effectiveness can be
increased. All these areas are interrelated. OD interventions can be at the i) individual or intra-
personal level, ii) dyadic level, iii) group level.
Some of the OD interventions to address “people concern” are sensitivity training, transactional
analysis, process consultation and third party peacemaking, team building, individual counseling,
life and career planning, role clarification. Areas for interventions in the technical and job related
aspects include the examination of workflow interdependencies, job evaluation job redesigning.
OD intervention aimed at socio-technical systems cover flexible work hours for better
productivity, offering job sharing, job evaluation and role analysis techniques.
Unit summary
In this sub unit, we have learnt about organisational change and the forces that make change
to happen. We have also touched on what causes resistance to change and identified various
strategies that managers should use to reduce resistance to change.
The session also focused on the importance of OD interventions .
Activity 7.0
1. What is organisational change?

2. Discuss the forces for change.
3. What is meant by resistance to change and
describe the strategies that can be used to manage
resistance to change?
4. Define OD and explain the values of OD.
5. Describe the steps of the OD process.
6. Explain any OD interventions you have studied
in this session.

Recommended Readings
1. Robbins S.P (1998) Organisation behaviour, concepts, controversies and

application practice hall
2. Dunford R. (1992) Organisation Behaviour; Adders
3. Brown D & Harvey D. (1992) An experimental approach to organization development;

Prentice Hall
4. Cole G. (2002) Organisational Behaviour
5. Mullins L.J. (2007) Management and Organisation Behaviour; Pitman London

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About this DBA 306 Organisational Behaviour (OB) Module

How this Organisational Behaviour (OB) Module is structured.

The Module overview

 What you can expect from the course.

The Module content

National Institute of Public Administration – Outreach Programmes Division 1

Welcome to this Organisational Behaviour Module

Identify the theories of organization and management

Relate individual to the organization

Apply leadership theories

Apply motivational theories

Manage morale and stress

Apply principles of the nature of groups in organizations

Apply principles of the nature of authority and power in an organization

Manage conflicts in organizations

Manage change in organizations

National Institute of Public Administration – Outreach Programmes Division 2

Expected duration of this Module is 6 months

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This module is divided in ten (10) units as outlined below:-

As an adult learner your approach to learning will be different to that from

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National Institute of Public Administration – Outreach Programmes Division 5

National Institute of Public Administration – Outreach Programmes Division 6

Activity Assessment Assignment Case study

Discussion Group Help Note it!

Outcomes Reading Reflection Study skills

Summary Terminology Time Tip

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After studying the unit, you will be able to:

 Define an organization and related concepts.

1.1 What is an Organisation?

An organisation has also been defined as a consciously coordinated social unit

There are a variety of legal types of organizations, including corporations, governments,

1.2 Organizational Goals

A goal is a future expectation. It is something the organization is striving to accomplish.

National Institute of Public Administration – Outreach Programmes Division 8

1.2.1 Functions of Goals

 Goals provide a standard of performance. They focus attention on the activities

1.3 Organisational Structure and culture

1.3.1 Organisational Structure

An organizational structure defines the scope of acceptable behavior within an

Hierarchy of Authority: This refers to the distribution of authority among

Specialization: This refers to the number of specialties performed within the

Standardization: Refers to the existence of procedures for regularly recurring events or

Formalization: This refers to the extent to which rules, procedures, and

Centralization: This refers to the concentration of authority to make decision.

Functions/purpose of an organisation structure

The structure of an organization serves the following purposes/functions:

 It enables an organisation to achieve economic and efficient performance of

Effects of a poorly designed organisation structure

A poorly designed Organisational Structure the can have negative effects in an

1.3.2 Organisational Culture

Types Of Organizational Culture

Role Culture: A role culture exists in large hierarchical organizations in which

Functions of Organization Culture

National Institute of Public Administration – Outreach Programmes Division 11

 It defines boundaries, that is, it creates distinctions between one organization

How New Employees Learn about organizational Culture

1.4 ORGANISATIONAL BEHAVIOUR CONCEPTS