Prafulla Vaman Jadhav

Roll no. 1308005410

SIKKIM MANIPAL UNIVERSITY

BBA 1ST SEMESTER ASSIGNMENT

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: FALL 2013
: BBA
:I
: BBA 102
: ORGANISATIONAL BEHAVIOUR
: B1498
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: PRAFULLA VAMAN JADHAV

ROLL NO. : 1308005410

Prafulla Vaman Jadhav

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1. Define the term Organisational Behaviour. Describe the importance of

Organisational behaviour.
Ans : Definition of Organisational behaviour Organizational Behaviour (OB) is the study and
application of knowledge about how people, individually and groups behave as individuals as well as
in groups in the organizations. Its main purpose is to build better relationships by achieving individual
objectives, group objectives, and organizational objectives and at last, social objectives.
Talcott Parsons defines organization as, a social unit which is deliberately constructed and
reconstructed to seek specific goals.
Importance of Organisational behaviour - Organizations comprise people who show differentiated
behaviours. Dealing with such varied behaviours is an essential activity of managers. Therefore,
organizational behaviour helps managers to understand and manage human behaviour at their work
place. Let us now have a look at how the study of OB is useful to managers:

Understanding of self and others OB is a useful tool for understanding human

behaviour that can be studied at the individual, group or organizational level. The
organizational behaviour help an individual to understand himself as well as others better.
This also improves interpersonal relations among all levels of employees. The most
significant topics covered under this aspect are: values and attitudes, perception,
communication, leadership, transactional analysis, power and conflict. We will discuss
these themes under units 3, 8, 10,12,13 and 14. An understanding of these aspects will
definitely help the managers in grooming their personality and managing others
effectively.
Motivation of human resources the task of a manager is to get the work done through
subordinates by inspiring them to achieve organizational goals. But, this can only be
practised by a manager if he is aware of the different patterns of individuals needs and
desires. Hence, OB helps the manager to understand these differing need patterns and
suitable methods of rewarding employees by fulfilling their needs. You will learn this
after going through unit 7 of this book.
Effective communication communication is very vital for all managers. It is only
through communication that two people are able to exchange their views and opinions.
Good communication can lead to wonders in the organization, whereas poor
communication can create blunders. Therefore, to run the organization effectively,
managers need to learn first how to communicate formally and informally with
individuals and groups. Unit 10 will deal with the communication aspect.
Effective organizational climate this covers a broader view rather than focusing on
narrow aspects. OB stresses upon creating a healthy climate comprising harmonious interpersonal relations, hygienic working conditions, fair and adequate compensation, better
and safe equipment for performing the job, effective leadership, employees participation,
etc.
Good human relations OB strives to maintain harmonious interpersonal relationships.
The study of OB revolves around the people at work and their relations with each other.
Thus, it provides directions to managers as to how to deal with employee problems in
different situations. For example, a worker remains absent for a number of days and
even when he turns up, he keeps himself away from the work. The reason might not
always be less compensation/family problems/strict supervision etc.; it might so happen
that the employee needs recognition for his work. Thus, OB helps managers to understand
the different motives of different individuals and the ways to control them. You will
Study this in unit 3 and 6 of this book.
Introduction of change in the organization change is the law of nature and is
inevitable. This is the result of social, technological, political, economic or other
environmental factors. Dealing with human resistance is the toughest and the most
challenging task of a manager. Therefore, OB guides managers on how to cope with
human resistance by adopting different techniques for timely and smooth introduction of
change.

2. List the types of organisation structure? Mention the basic elements of

Organization Structure. Explain any three elements.

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Ans : Listing the types of organisation structure - The authority and responsibility patterns give
rise to three types of organization structure i.e. (a) line organization (b) staff organization and (c)
functional organization. Let us now discuss these three structures in
brief.
(a) Line organization line organizations are the simplest and conventional forms of organization.
According to J. M. Lundy, it is characterized by direct lines of authority flowing from the top to the
bottom of the organizational hierarchy and lines of responsibility flowing in an opposite but equally
direct manner. The characteristic feature of this type of organization is the superior-subordinate
relationship. The superior delegates some amount of authority to his junior and likewise it gets
delegated from the very top to the very bottom level, forming a line. This established line of authority
is known as line organization. In such a type of organization, authority moves upward and
responsibility moves down in a straight line. This organization is also referred to as military
organization. Example of line organization in case of military is shown in below Figure :

(b) Functional organization F. W. Taylor, who is known as the father of scientific management
developed the concept of functional organization. Functional organization entails that the organization
should be based on various functions. This approach is based on the principle of specialization. The
whole work in the organization is divided into various departments depending upon the type of work
being performed. Similar type of work is put under one department/unit/division that is controlled
by a departmental head or manager. Various departments like purchase, production, sales, human
resource, finance etc. are formed and respective managers are responsible for conducting the activities
of their departments. E.g., production manager is responsible for carrying out activities related to
production of goods, HR managers are supposed to look after all personnel matters of all the
departments and so on.

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(c) Line and staff organization the line and staff organization is a combination of line and
functional organization. Line organization stresses more on command and control whereas, functional
system emphasizes upon decentralization of authority. Hence, a need was felt to strike a balance
between the two and thus, line and staff organization came into existence. In this type of structure the
line managers (those who perform the actual work in the organization) are assisted by the staff for
carrying out the task in an efficient manner (as shown in below figure). The staffs role out here is
advisory in nature. They assist the line managers who have to perform the primary duties of the
organization.

Listing of the basic elements of organisation structure

a) Hierarchy
b) Division of work or Specialization
c) Unity of command
d) Authority and Responsibility
e) Span of control
f) Centralization and Decentralization
g) Departmentation
Explanation of three elements as below
a) Hierarchy - it is an important concept as it depicts the creation and linkage between other
components of the organization. It is also known as the chain of command. As we know, an
organization is sliced into three levels viz, top, middle and bottom level. Across these levels
are many positions that are held by people. Depending upon these positions people enjoy their
authority and responsibilities. People placed at the top in the pyramid enjoy a large amount of
authority. The moment we climb down the pyramid, employees start having more of
obligations to be fulfilled towards their seniors and enjoy minimum amount of authority. This
unbroken line of authority and responsibility establishes the pattern of hierarchy in every
organization. It is helpful in establishing the relationship between a senior and his
subordinates.
b) Division of work or Specialization being human beings we have our own physical as well
as mental limitations. Due to this, a person needs to perform the task where he is well
qualified/skilled/experienced. F.W.Taylor has introduced the concept of specialization in his
scientific management theories. Since then companies have universally practiced this system.
Division of work is also required to bring about efficiency in performing a task. By repeating
the task again and again, the person becomes specialized in it. Thus, to increase productivity,
to reduce complexities and confusions at work, division of work is very essential It not only
trains a person at work, also provides satisfaction to him. By specializing a task, segregation
of activities becomes easier and it becomes simple to form a structure.
c) Authority and Responsibility authority refers to the right to give orders and the power to
receive obedience. Authority comes to an individual by virtue of his position and role played.
Responsibility is the obligation of a subordinate towards his seniors to fulfil their orders.
There has to be parity between authority and responsibility. Because on having authority and
no responsibility, people will start showing dictatorship and might become autocratic, and on

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having all responsibilities and no authority, the person might not be able to carry out his task
properly and will become frustrated. Hence, some amount of authority should always be
delegated to every subordinate, so that they can discharge their duties effectively by taking
timely decisions.

3. Define the term Learning. Explain the theories of learning.

Ans : Definition of the term learning - Learning is defined as a relatively permanent change in
behaviour (Akin 1987). In the context of organisation, one of the managerial challenges is to instill
productive work behaviours in his employees.
Learning is also defined as the process of acquiring, assimilating, and internalizing cognitive, motor,
or behavioural inputs for their effective and varied use when required, leading to an enhanced
capability for further selfmonitored learning. This definition implies:
Learning begins with acquiring new inputs in the form of information, knowledge,
behaviour or motor activity. Learning however does not end here. This step is followed
by assimilation. Assimilation helps in retaining the acquired inputs in our memory for a
longer period of time. From your learning experiences you know how important
assimilation is. Imagine if you have to acquire the names of your boss, teachers, friends
and relatives every day!
Internalisation of assimilated knowledge is another step in learning. In the context of
behaviour it is often found that people know how they should or should not behave in a
particular manner during a specific situation(such as an interview). Yet they indulge in
such behaviour contrary to their knowledge. This is because they have not internalised the
right behaviour. One cannot learn how to ride a bicycle just by going through instruction
manuals. To successfully ride a bicycle one has to practise intensively till the riding skills
have been internalised. In organisations we are continuously exposed to new inputs which
we acquire and assimilate. We put in efforts so that they become a part of our personality,
lifestyle and psychological world.
With internalisation learning is complete but is this learning effective? If what we have
learnt is not put to effective use in a real life situation then our learning is merely
ornamental. Learning if not effective, it begins to rust and decay and maybe lost in time to
come. We come across many professionals who do not use much of what they have learnt
and hence are not as effective as they are expected to be.
Effective learning also fosters creativity and innovation. Sachin Tendulkar, Sehwag and
other great players of the game have created new strokes to score runs even in difficult
and impossible situations. Very often what is learnt in one area is applied in entirely
different arena, often successfully. Thus, principles such as value engineering learnt
during the Second World War have become an integral part of the corporate world.
Advertising techniques have given rise to new political campaigns. Creativity is our
contribution to the learning. Thus, learning becomes a never-ending process.
And, finally it must be appreciated that learning should become a self-sustained venture.
In other words, the more we learn the more should be our ability to learn without any
support such as teachers, facilitators, books etc. Without this ability of learning to learn,
individual and organizational growth will come to a standstill, which you will agree is not
a very healthy state of affairs.
Theories of learning - As learning became important for human civilization, it invited the attention
of many researchers. They identified several approaches to learning. Theyare as follows:
I. Classical conditioning
II. Operant conditioning
III. Social learning
IV. Cognitive learning
V. Programmed learning
I. Classical Conditioning: This approach explains the learning of reflex behaviour. An example of a
reflex behaviour is when stuck with a pin we flinch without thinking. Pavlov a Russian scientist
conducted a remarkable experiment on his dog. Pavlov observed that his dog began to salivate as soon
as food was offered to it. It did not salivate when a bell was rung. Thereafter he trained his dog by
ringing a bell and then offering food to the dog. After sometime he noticed that dog would salivate as

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soon as the bell was rung. Thus the dog had learnt to associate ringing of the bell with food. In other
words Pavlov paired a ringing bell (conditioned stimulus) with food (unconditioned stimulus).

Is classical conditioning relevant for human learning? It is. We are filled with pride and patriotism
when we hear our national anthem. This is the result of learning through classical conditioning. But is
classical conditioning important in organizations? Most mission and vision statements have
components that employees learn through classical conditioning. Since in organisations managers are
interested in instilling voluntary behaviours, classical conditioning has a very limited role in
organizational learning.
II. Operant conditioning: B. F Skinner is closely associated with this learning theory. Operant
conditioning is based on the fact that voluntary behaviours are learnt. As human beings we learn
behaviour because we find it rewarding. In the same way we can unlearn behaviour if its consequence
becomes unrewarding or punishing. Thus a child learns to become obedient because he is rewarded
with parental love and appreciation. Similarly a child stops bad behaviour when punished. In
organisations also Operant conditioning is found frequently. When an individual works hard he or she
is paid accordingly. When an individual takes the initiative he or she is appreciated. Similarly, if a
person remains absent he may lose his pay. If he is late he may not be allowed to enter the
organisation. Operant conditioning therefore is an important tool for managers, who want the
employees to learn productive voluntary behaviours and give up voluntary unproductive behaviours.
III. Social learning: This theory of learning is an extension of operant conditioning. Albert Bandura
demonstrated that people learn or unlearn behaviours even by watching others being rewarded or
punished for a particular behaviour. We decide on our behaviour by watching others. In other words
we keenly watch others around us then develop a mental picture of a behaviour and its result and
finally we try the behaviour ourselves. Managers use rewards and punishments to set an example also.
When we see others being rewarded we are motivated to pick up that behaviour. When we see others
being punished we are discouraged to acquire that behaviour. Researchers such as M.L Bigge have
suggested the following steps for applying social learning theory in organisations:
Identify the behaviour that enhances performance/productivity.
Select a suitable model for others in the organisation to observe.
Ensure that employees possess the required skills.
Provide positive feedback to the model and other employees who learn the behaviour.
Maintain such beneficial behaviours by developing appropriate practices in the
organisation.
IV. Cognitive learning: So far in the theories we have discussed that the learner plays merely a
passive role. But do we learn only passively? Cognitive learning is built around what happens within
the individual while learning and it investigates the motives, feelings, attitudes, memory and cognition
of the learner. In cognitive learning analysis and interpretation of data helps us to learn new patterns
of thoughts and relationships. As human beings we are capable of rearranging thought patterns into
new shapes or patterns. This emergence of new patterns can happen suddenly or may evolve
gradually. The following processes of cognitive learning have been identified:
Insight: This is best demonstrated by Eureka (I have found it!)-the exclamation of
Archimedes. Very often a wonderful solution comes to our mind like lightning. This concept
of insight is associated with W Kohler. While experimenting on a chimpanzee called Sultan,
he placed a short stick within the reach of Sultan and a long stick and bananas beyond its
reach. Sultan made several unsuccessful attempts to get bananas using the short stick. Later
he gave up and sat down looking tired and disappointed. Then he suddenly got up, pulled the

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long stick with the help of the short stick and then, using that long stick, he could get to the
bananas. Insight involves two processes - discrimination and generalisation. Discrimination
is a process in which previously structured elements are placed into new structures. For
example a child initially is familiar with cars but later he begins to discriminate (distinguish)
between Maruti-800, Indica, Zen, Alto and other cars. Generalisation is when we transfer our
learning to a new situation. Insight and generalisation are therefore opposite to each other.
Discrimination divides general into specific; generalisation on the other hand unites
previously unrelated elements into a meaningful cluster. Managers in organisations utilize
both these approaches. Discrimination is used to distinguish between two similar looking
situations, people, position, policies or power. Generalisation on the other hand can be used to
relate certain organisational problems with poor communication, team work or interpersonal
skills. It is also useful in tackling problems such as conflict or poor leadership. The capacity
to develop insight using discrimination and generalisation is vital for mastering conceptual
skills. Successful scientists, managers, economic analysts use these learning approaches very
often.
V. Programmed learning: We are most familiar with this kind of learning approach. Ever since you
entered school and then college you have undergone a very structured learning process in which you
played a very active role. This learning also involves successive steps and immediate feedback.
Hefzallah defined programmed learning as a planned sequence of experiences leading to the students
mastery of a topic. Modern technology, particularly information and communication technologies
(ICT) have made programmed learning possible through a distant mode also. You are undergoing this
course in BBA precisely through programmed learning assisted by ICT.

4. Describe Conflict management approaches.

Ans : Meaning of conflict management - It is said that conflict is harmful for any organization, but
at times conflict can be very useful in the organization. A manager should have the ability to identify
the constructive conflict and he should use it for organizational effectiveness. Optimum level of
conflict can stimulate competition which can have a positive impact on the organization. It helps in
minimizing group think, people can be more innovative and creative. It results in better decision
making.
Description of conflict management approaches - The following approaches can be used to
stimulate moderate level of conflict in the organization:
Encouraging individualistic thinking
Increasing individual competition by rewarding individual performance.
Providing all good and bad news to the employees
Creating role conflict between perceived and actual role.
Bringing change in the organizational structure.
Restructuring the work unit.
Adopting the role of devils advocate in group discussion.
Bringing outsiders into the organization.
According to Thompson there are five different styles of conflict management. In below figure we can
see that it is a two dimensional model: i) concern for self ii) concern for others.

The conflict handling strategies are chosen according to the requirement of the situation and person.
Suppose we have a conflict with our friend, then we will not adopt the same strategy which we will
adopt with strangers. Lets discuss the strategies which can be adopted:

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a) Competing: This style is highly assertive and uncooperative. This style is power oriented and
includes dominance. Those who believe in this style of conflict resolution rely heavily on
punishment to have control over others. People use fight, argument even physical aggression
to achieve their goal. Here one party wins and another loses. This style is popular in a few
situations only such as during emergencies, or when there is a need to protect yourself and
stop others from taking undue advantage.
b) Avoiding: In this style people try to ignore arguments and disagreements. They stay neutral,
which sometimes emerges as a cause of frustration and tension, because ignoring important
issues can be disastrous for the organization. This method can be very useful in certain
situations such as when a person has incomplete or no information, when there is no power to
take decision or an individual feels that this conflict can be solved by others in a better way.
c) Accommodating: This style is less assertive and highly cooperative. People try to be
generous and sacrificing. This style can be very useful for temporary solution of conflict in
the short run. People using this style may be perceived as submissive and weak persons. This
style is used in a situation when an issue is important for the other person, and you want the
other person to learn from his mistakes.
d) Compromising: This style uses compromise and bargaining. This is a traditional method of
conflict handling where both the parties are losing. It believes in give and take strategy. This
style helps in maintaining good relationships in the future. It provides partial satisfaction to
both the parties. It is a widely used means of conflict handling.
e) Collaborating: It is a win-win position for both the parties, where people share information,
tries to listen to others and show cooperation. In a very constructive environment, extensive
problem solving approach is adopted which is assumed to be beneficial for both the parties. A
person adopting this style of conflict handling is considered to be dynamic and helpful. He
becomes the favourite of everybody. Even the researches show that collaboration is the best
method of handling interpersonal conflict.
Thus, we can say that there are various methods of handling conflicts in the organization. As we
know, conflicts can have positive as well as negative impact on the organization, so it is very
important that such steps or approaches should be adopted, which can eliminate the adverse and
disastrous impact of conflict in the long run. These approaches are as follows:
Ignore: If the conflict is not very serious then the manager should try to ignore it. This is a
strategy which can make the situation worse in the long run.
Withdrawal: It is a situation when you withdraw from a conflict. It may be withdrawing
from a promotion, from a relationship with a group or from a fight for resources.
Physical separation: This approach can be useful in a situation when two parties can attain
their goal without interaction with each other.
Dominance: It is a method in which the manager uses his power and forces the trouble
maker to leave the company. He sometimes tries to separate the conflicting groups, so that a
more powerful solution can be obtained.
Compromise: In this method both the parties try to come to a decision which is accepted by
both the parties. This decision may not be ideal for both the parties. Temporary solutions can
be obtained.
Appeal: The higher authority can be asked to solve the dispute.
Liaison group: In modern organizations many disputes are handled through arbitration. They
are considered to be the neutral party so both the parties accept the decision.
Introducing change: By bringing change in a particular procedure or structure we can
resolve conflicts in the organization.
Integrated problem solving: It is a method which can come up with solutions which are
accepted by both the parties. Both the parties work for mutually accepted solutions.
Conflict resolution through negotiation: In our day to-day life we see people spending a lot of
time negotiating, even without realizing it. Negotiation involves continuous interaction and dialogue
between the groups in order to find a solution with maximum advantage to both. (Pareek) Through
negotiation we can get the most satisfactory solution. A manager can choose negotiation for conflict
handling, but he has to follow certain steps. They are as follows:
Unfreezing: people should be made free to express their expectations so that they mix and
understand each others perspectives.
Being Open: Members should open up to each other, because openness can help in solving
the conflict

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Empathy for Others: While sharing their goals and concerns they can gain empathy for
others which will give new insight.
Search for common goal: people involved in conflict can search for common goals.
Generating alternatives :After understanding each other, we can look for alternatives which
can provide solutions to the problem.
Responding to alternatives: People involved in conflict should respond to it in a very
positive manner.
Searching for solution: A consensus building activity can be done at this stage which can
come up with some innovative solutions.
Breaking the silence: A third party intervention can be done if both the parties are not
moving towards the solution.
Accepting the solution within a group: Group members should clarify all the doubts and
show their genuine commitment.
Accepting the solution jointly: At this stage negotiating groups jointly accept the solution
and make plans for implementation.
Thus, negotiation is used for solving conflicts, though it is not an easy process, but very useful in
handling conflicts.
Other than these methods, prevention of the conflict is also necessary. An action should be taken in
advance to avoid the potential causes of conflicts.

5. Define the term power with respect to organisational behaviour. What are the
sources of power? Explain.
Ans : Definition of the term power - Power is defined (Salanick and Pfeffer, 1971) as the ability
of those who possess power to bring about the outcome they desire. Later in 1987 Pfeiffer defined
power as the capability of one social actor to overcome resistance in achieving a desired objective.
According to Robbins power is the capacity that A has to influence the behaviour of B.
Explanation of Sources of power - Power is the ability to influence others. This ability is derived
from different sources. Ability also varies from person to person. Some possess greater capability
whereas others possess less or little capacity. As a result of these, power is unequal in any and every
organization. Social scientists have identified the following sources of power:
Legitimate power: This power is derived from the socio legal rights of a manager. He
holds power by virtue of his position. Power in this case therefore is positional and not
personal. If a person is removed from that position he loses all the power. Dr. Manmohan
Singh has immense legitimate power by virtue of being the Prime Minister of India. He
decides the foreign policy; has control over allocation of funds to different sectors and
different states. The quantum of legitimate power depends upon:
A> Willingness of a manager to exercise power;
B> Nature of the task and;
C> Nature of the organization.
Thus, legitimate power is very high in armed forces because of the nature of the organization
and the criticality that its task demands. While exercising legitimate power it is expected
nowadays to have certain traits such as politeness while issuing orders, respect for age,
consideration for gender and age, maintaining one calm and confidence, and readiness to
justify an order to the subordinates. To make legitimate power effective, power should be
exercised discretely and sensitivities of subordinates should be kept in mind. In the movie
Chak de India Kabir Khan (Shahrukh Khan), the hockey coach is not keen to exercise formal
power. Legitimate power is respected a lot as any lack of respect for it leads to anarchy and
chaos. This was the prime reason why Bhishma Pitamaha in Mahabharata remained loyal to
the king (Dhritarashtra).
Charismatic power: Mother Teresa, Jawaharlal Nehru, Mahatma Gandhi are the best
examples of this power. People were ready to be influenced by them because of their
goodness, enthusiasm, personal charm and for their high levels of morality. When Mahatma
Gandhi began the Dandi march, he started it alone, but by the time he walked 240 miles to
reach Dandi, he was accompanied by thousands of followers! Charismatic power is linked to
the person and not to the position. Such leaders are very effective during a crisis or when a
transition is taking place.

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Expert power: Expert power is a result of specific skill, knowledge or expertise that a
person has. Others accept the recommendation of such a person because they trust his or her
expertise. In the Mahabharata, Arjun and Bhim derived their power from their expertise as
warriors. A physician holds a lot of power during a medical emergency or crisis. Very often
we find in organizations that a very junior employee has tremendous power because of his
technical or organizational skills. To gain expert power, therefore, one has to visibly
demonstrate his competence. Such persons can be powerful for a long time only if they
maintain their competency (by updating themselves). Those who pretend to have the expertise
can have power only for a short time.
Reward power: An individual who controls the reward or rewarding system also has lot of
influence on others. People are willing to follow him because they expect to be rewarded.
Rewards in organizations may include pay rise, bonuses, promotions etc., although an
appreciative smile from Mother Theresa would outdo any such rewards! Reward power is
linked to the number and quality of rewards under the control of an individual. Reward power
can be used effectively by making feasible, ethical and reasonable requests and also by
offering only credible rewards.
Information power: A manager having access to the most important information wields
immense power. In a marketing organization, the market research expert impacts the decision
most powerfully because he has information about future demand. When the USA decided to
attack Afghanistan, an expert on routes located on Afghanistan and the Pakistan border was
automatically put in-charge of the think tank. With the ICT revolution, those heading IT
sections are paid the highest salaries. In organizations, the personal secretary of a CEO
exercises a lot of power because of his or her access to important information.
Coercive power: This power is derived from the ability to punish others. Such a power is
legitimate and is needed by managers to deal with unproductive, disturbing and anti-social
elements in the organization. In the movie Chak de India, Kabir Khan (Shahrukh khan) uses
coercive power (sends the players out of the field) to deal with players indulging in petty
quarrels, Coercive power is effective when rules and penalties are known to subordinates and
punishment is administered uniformly and consistently.
Connection power: Very often a person is able to exercise power over others because of the
number and quality of connections he has. A person who carefully develops important
networks is able to enjoy substantial power. The network could be within the organization or
with people outside the organization. Several corporate houses quickly employ just retired
government officers to take advantage of their connections in the government. Connection
power is useful, as long as the connections one has remain intact and useful.

A question that is often asked is regarding which type of power is better than others. People differ in
opinion but there are evidences to believe that personal power sources are better than formal power
sources. Expert and charismatic powers, therefore, are considered better than formal, reward and
coercive powers. This is so because personal powers are more effective and long lasting. They also
bring better satisfaction and commitment.

6. What do you mean by organisational change? Explain the need for change.
What are the reasons for resistance to change in organisation?
Ans : Meaning of organisational change - Organizational change is a process by which
organizations move from their present state to some desired future state to increase their effectiveness
There are certain characteristics of change:
It is constant but varies in degree and direction.
It produces uncertainty, yet it is not completely unpredictable.
It creates both threats and opportunities.
When change activities are intentional and goal oriented then it is known as planned change.
The main goal of a planned change in the organization is to improve the ability of the organization to
adapt to changes in the environment.
People who act as catalysts and assume the responsibility for managing change activities are called
change agents.
These change agents are of three types:
i) Managers who are also called internal entrepreneurs.

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ii) Non managers who are change specialists.

iii) Outside consultants They are the experts who implement change.
The role of a change agent is very important in the whole change process.He can be any internal or
external person, but he should possess certain qualities:
Eager for improvement.
Realistic approach
Effective communicator
Attentive listener
Person of ideas
Good collaborator
Restless.
Need for change - In the fast moving world any organization not ready to change, will find it difficult
to survive. Liberalization, privatization and globalization have changed the level of competition. A
need for change has been felt due to the changes in (A) external environment such as change inmarket place, governmental laws and regulations, technology, labour market and economical changes.
(B) Internal environment such as changes in organizational strategies, work force changes, new
equipments and change in employee attitudes.
Factors of change:
The factors which force organizations to bring in change are:
i) Competitive factors: Every organization must make changes to attempt to match or exceed its
competitors on at least one of the following dimensions:
Efficiency
Quality
Innovation
Customer responsiveness
Economic, political, and global forces affect organizations by forcing them to change the process they
adopt for producing goods and services. They also affect the choice of location for the production.
There is a need to change organizational structure due to the following causes:
a) To allow expansion in the foreign market.
b) To adapt to different types of national cultures.
c) To help expatriates in adapting to the cultural values of the place, where they are located.
i) Demographic and social factors: As we know, changes in the composition of the workforce and
the increasing diversity of employees have presented many challenges for organizations. Managing
diversity has become a challenge for the organization.
ii) Ethical factors: It is very important for an organization to take steps to promote ethical behaviour.
The organization should create position of office for managing ethical issues/dilemmas in the
organization. The employees should be encouraged to report unethical behaviour.
iii) Technology: Fast changing technology has created havoc in organizations. To avoid obsolesce; it
is very important for organizations to adapt change.
When change is introduced, it is very important that people should know why change is required.
They must understand the benefits of change. They should know how to change. There should be a
willingness to change. Certain opportunities should be provided so that behavioural change can occur.
For a planned change it is important that the benefits of change should be measurable and positive
changes should be recognized.
Reasons for resistance to change in organisation In any organization where change is introduced, people and groups can react in different ways. There
can be great support and active resistance too. If people do not have enough information regarding the
process and impact of change, people resist change. There can be various other reasons for resistance
to change. People resist change due to:
The ambiguity and uncertainty that change introduces
The comfort of old habits
A concern over personal loss of status, money, authority, friendships, and personal
convenience
The perception that change is incompatible with the goals and interest of the organization.

Prafulla Vaman Jadhav

Roll no. 1308005410

Lack of information.
Organizations also resist change in many cases. Many of the reasons are the same as those of
individuals. Some of the organizations believe in minimizing risks so they will not like to change if
the working process is satisfactory. Organizations can resist change due to environmental factors.
Sometimes they believe that change can bring about imbalance in power and can affect the
organizational stability by affecting the culture of the organization.
What are the symptoms of resistance? There are certain indicators such as:
Hostility or Aggression
An individual may develop apathy towards his work
Absenteeism and Tardiness
Development of Anxiety and Tension
Slowdown or Strikes