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Organization development (OD) is a conceptual, organization-wide effort to increase an organization's effectiveness and viability. OD as a response to change, a complex educational strategy intended to change the beliefs, attitudes, values, and structure of an organization so that it can better adapt to new technologies, markets, challenges, and the dizzying rate of change itself. OD is neither "anything done to better an organization" nor is it "the training function of the organization"; it is a particular kind of change process designed to bring about a particular kind of end result. OD can involve interventions in the organization's "processes," using behavioural science knowledge organizational reflection, system improvement, planning and self-analysis. Organization development is an ongoing, systematic process to implement effective change in an organization.
Organization development is a "contractual relationship between a change agent and a sponsoring organization
entered into for the purpose of using applied behavioral science and or other organizational change perspectives in a systems context to improve organizational performance and the capacity of the organization to improve itself"
Assumptions of OD
1. Highest productivity can be achieved when the individual goals are integrated with the organizational goals. 2. Suppression of feelings adversely affects problem solving, personal growth and satisfaction with ones work. Accordingly, free expression of feelings is an important ingredient for commitment to work. 3. Growth of individuals is facilitated by relationships which are open, supportive, and trusting. According, the level of interpersonal trust, support and cooperation should be as high as possible. 4. The difference between commitment and agreement must be fully understood, agreeing to do something totally different from being committed to do something. Sense of commitment makes it easier when this commitment is based upon participation in the process. 5. Organization development must be reinforced by the organizations total human-resources system.
OD techniques
1. Sensitivity training -Sensitivity training is supplemented with self-administered instruments. It involves growth in effective membership. It helps to developing ability to learn. 2. Grid Training - Grid training is an outgrowth of the managerial grid approach to leadership .It is an instrumental approach to laboratory training. This technique is widely used and has proved effective. 3. Survey Feedback - Survey feedback is based on the study (survey) of the unit of analysis (such as work group, a department or a whole organization) by using questionnaires The resulting data are then used to identify and analyses problems and propose a suitable action plan to overcome them.
Approaches to OD
1. Group Dynamics - This is a historical and traditional method of OD based on the assumption. In this approach, an expert works at a small-group level, using group methods, sensitivity training and other related approaches. 2. The Behaviour Modification School Its attempts to rearrange the reward system in the organization so as to strengthen selected 'target' behaviour on the part of employees. 3. The Systems Approach - The system can some components and function that processes to perform relationship among components that make them a system. This approach aims at enhancing the overall effectiveness of the organization.
This approach is based on the assumption: Technical system, Social system, administrative system, strategic system The systems approach has four sequential stages: assessment, problem solving, implementation and evaluation. 4. The Socio-Technical Approach - The social system uses tools, techniques, and knowledge. The technical system produces goods and services which are valued by customers in the external environment. 5. The Environment Approach - The environment is an agent of change. Environmental changes are the primary incitement and stimulus for organizational betterment. The environment can change in both predictable and unpredictable ways. The external environment can be relatively stable or rapidly changing.
The OD process
1. Process Analysis Activities, referring to applications of behaviourial science perspectives to fathom complete and dynamic situations 2. Skill-building Activities, involving various designs for eliciting behaviours in congruence with OD values. This includes giving and receiving feedback, listening, and settling conflicts 3. Diagnostic Activities, including process analysis to generate data through interviews, psychological instruments or opinion surveys 4. Coaching or Counseling Activities to help in resolving conflicts through third-party consultation 5. Team Building Activities, enhancing the efficiency and effectiveness of task groups 6. Inter-group Activities, attempting to create effective and satisfying linkages between two or more task groups or departments in the organization 7. Techno-Structural Activities, aiming at building need-fulfilling roles, jobs and structures 8. System-Building or System-Renewal Activities, seeking exhaustive changes in a large organization's climate and values using combinations of the various OD interventions listed above.
Benefits of OD
1. Provides opportunities for people to function as human beings rather than mere resources in the productive process. 2. Gives each member of the organisation opportunities to develop to his full potential. 3. Seeks to make the organization more effective in meeting all its goals. 4. Tries to create an environment in which exciting and challenging work can be found. 5. Gives people in organization the chance to influence how they relate to work, the organization, and the work environment. 6. Treats each human being as a person with a complex set of needs, all of which are important in his or her work and life.
The change agent may be in the form of a consultant who helps the client find solutions to the organisational problems. It could also be in the form a trainer who trains the client to achieve a set of skills that could be used in bringing about the change for optimum outcomes. This change agent must have certain characteristics which would identify it to be more effective than others. Effective change agent is, an extrovert, has considerable interpersonal skills, is creative and takes risks, and is good in organizing activities.
1. Provide specialized perspectives, skills, and knowledge that the organisation does not have available or is limited in use as a formal role. 2. Help the organization with the problem solving procedures: identify, define and clarify the problem; generate alternatives; anticipate consequences; and plan evaluation. 3. Provide training and skill building to people. 4. Assist groups to build team learning skills in order to facilitate team building and development. 5. Develop and conduct surveys of other assessments to gather data on important organisational processes. 6. Impart skills to the organisation so that it can carry on with the task after the consultant has left. 7. They generally do not do, implement plans, take responsibility for decision mailing (which the organisation can and should do for itself), or remain permanently with the organization
It has been defined as "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 with stakeholders outside the organization."
Organizational climate (sometimes known as Corporate Climate) is the process of quantifying the culture of an organization. It is a set of properties of the work environment, perceived directly or indirectly by the employees, that is assumed to be a major force in influencing employee behavior. How your employees feel about their jobs, their supervisors, their peers, top management, and many other factors affects their individual productivity, and collectively the ability of the organization to achieve its objectives. Organizational climate is a relatively ending quality of the internal environment that is experienced by the members, influences their behavior and can described in terms of values of a particular set of characteristics of the organization . Organizational climate is the set of characteristics that describe an organization and that (a) distinguish one organization from other organizations; (b) are relatively enduring over time and (c) influence the behavior of the people in the organization.
8. Risk-taking - How members respond to risks and whose help is sought in situations involving risk are important in any organisation. If individuals feel free to try out new ideas without any fear, they will not hesitate in taking risks. Such an atmosphere will be conducive to innovative ideas. 9. Conflict Management - Differences among people and groups in organisations are not uncommon. If they are managed effectively, there will be an atmosphere of cooperation in the organisation. If they are suppressed or not handled properly, people will be unhappy and there will be an atmosphere of distrust and non-cooperation. 10. Degree of Trust - The degree of trust or lack of trust among various members and groups in the organisation affects the climate. If there is Mutual trust between different individuals, groups and also between management and workers, there will be peace in the organisation. The members will cooperate with one another for the attainment of organisation objectives.
POWER
Power is the ability that a person may use to get others to do what he/she wants to be done. The nature of power is control over other people. In the organization, power of a person can be derived from interpersonal, structural and situational bases. Basically, interpersonal power is vested in a person as prescribed by the organization (ie; legitimate, reward and coercive) and by the persons qualities (ie; expert and referent). While structural and situational powers (ie; resource, decision making and information powers) normally go by the hierarchy of the organizations structure, that is, the higher the position of a person as structured by the organization, the greater is his/her power in accessing to resources, making decisions and having access to important information. power in the organization is that people are having the need for it. The differences are in the degree and intention; whether someone is having a high or low need for power, and whether the need for power is directed towards personal or organizational purposes. Power is important
to many people as it can be meant for status and prestige, and also for promotion, leading and ruling. Anyhow, such intentions if not properly associated with the organizational purposes and directed goals, will not benefit the organization. Thus, the reality of power should be wisely accepted that it is important to enable someone to contribute effectively to his/her organization. Wrongly application of power such as corruptions and other unethical actions are simply the problems generated by the attitude of people in using their power. Most of the problems of effectiveness faced by the organizations are created by improperly use of power by the managers. There are cases where the managers made in charge of businesses are lack in the required knowledge and skills. Without sufficient capabilities, these managers would not be able to utilize their powers professionally, thus contribute towards reducing the performance of the organization.for example power refers to As ability to influence B not As right to do so, no right Is implplied in the concept of power.A related concept is auhority. The manager has authority the right to request that the sawyer cut lumber to certain specification. One the other hand the manager would not have right to request that the sawyer to wash her car.
Classification of power
1. COERCIVE POWER : Involves forcing someone to comply with one's wishes. A prison would be an example of a coercive organization. 2. UTILITARIAN POWER: Is power based on a system of rewards or punishments. Businesses, which use pay raises, promotions, or threats of dismissal, are essentially utilitarian organizations. 3. NORMATIVE POWER : Is power which rests on the beliefs of the members that the organization has a right to govern their behavior. A religious order would be an example of a utilitarian organization.
ORGANIZATIONAL POLITICS
Politics is a means of recognizing and, ultimately, reconciling competing interests within the organization. Competing interests can be reconciled by any number of means. For example, resorting to "rule by the manager" might be seen as an example of totalitarian rule. If we accept that power relations exist in organizations, then politics and politicking are an essential part of organizational life. On the other hand, politics may be a means of creating a noncoercive, or a democratic work environment. Systems of rule each represent a political orientation with respect to how power isdistributed throughout the organization. To help us understand organizations, we might consider them as political systems. The political metaphor helps us understand power relationships in day-to-day organizational relationships. Systems of rule within organizations range from autocratic to democratic at the extremes. Between these extremes we find bureaucratic and technocratic systems. Whatever the system, each represents a political orientation with respect to how power is applied and distributed throughout the organization. Each type of organizational "rule" simply draws on different principles of legitimacy. politics stems from a diversity of interests. To fully understand the politics of the organization, it is necessary to explore the processes by which people engage in politics.within the organization, all employees bring their own interests, wants, desires, and needs to the workplace. Organizational decision-making and problem- solving, while seemingly a rational process, is also a political process. Organizational actors seek to satisfy not only organizational interests, but also their own wants and needs; driven by self-interest. the successful practice of
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organizational politics is perceived to lead to a higher level of power, and once a higher level of power is attained, there is more opportunity to engage in political behavior For purposes of understanding organizational political behavior, proposed a three-dimensional typology. The dimensions are: where the political activity takes place inside or outside the organization, the direction of the attempted influence vertically or laterally in the organization, and the legitimacy of the political action. 1) Functional Vs Dysfunctional Conflict, 2) Sources And Types Of Conflict: Individual, Group, And Organisational; 3)The Process And Approaches To Conflict Resolution
Importance of empowerment: 1. Positive environment: Employee empowerment leads to the creation of a positive environment in the workplace; this will lead to increased productivity and efficiency in the workplace. 2. Creativity: Empowerment involves letting employees make decision on their own and also solve problems, this increases their creativity and also improve the working environment.
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3. Productivity: Empowerment ensures that the employees perform their tasks in the most effective way that saves time and energy, as a result the employees become more productive. 4. Motivation: Employee empowerment will motivate workers which will in turn increase employee productivity, increase commitment by employees and As a result the employee will more satisfied with work. 5. Team work: Empowerment will encourage team work and as a result there will increase motivation to undertake tasks 6. Conflicts: It will reduce conflicts between managers and workers; also reducing the cost of production in the organisation resulting to increased competitive advantage of the organisation over its competitors. 7. More skilled workers: the employees become more skilled through education and training offered by the organisation, this will lead to increased employee productivity and increase competence as a result of training offered.
Disadvantages of empowerment:
1. Increased costs: an organisation has to invest in the training and education of its workers and as a result there will be increased costs. 2. Abuse of power: Some of the organisation workers may abuse the power given to them, this include making decisions that may not be in line with the objectives of the organisation and may use the power to meet their own needs. 3. Time wastage: organisation where time may be spent in groups and committees that are important in the process of empowerment and this will reduce the total time the employees spend undertaking their tasks. 4. Conflicts: every worker may tend to acquire power on what should be done and how it should be done, for this reason therefore empowerment may result to conflicts among workers. 5. Decisions: The employees may not have the ability to make appropriate decisions that are important in the organisation, therefore the decisions made by the employees may be biased.
Organizational Learning
Organization-wide continuous process that enhances its collective ability to accept, make sense of, and respond to internal and external change. Organizational learning and is more than the sum of the information held by employees. It requires systematic integration and collective interpretation of new knowledge that leads to collective action and involves risk taking as experimentation. The process through which managers seek to improve organisation members capacity to understand and manage the organisation and its environment so that they can make decisions that continuously raise organisational effectiveness. Organizational learning is an area of knowledge within organizational theory that studies models and theories about the way an organization learns and adapts. The concept of a learning organization has become popular since organizations want to be more adaptable to change. Two of the most noteworthy contributors to the field of organizational learning theory have been Chris Argrys and Donald Schon. It is a product of organizational inquiry. This means that whenever expected outcome differs from actual outcome, an individual (or group) will engage in inquiry to understand and, if necessary, solve this inconsistency. In the process of organizational inquiry, the individual will interact with other members of the organization and learning will take place. Learning is a dynamic concept and it emphasizes the continually changing nature of organizations. The focus is gradually shifting from individual learning to organizational learning. Learning is essential for the growth of individuals; it is equally important for organizations. Since individuals form the bulk of the organization, they must establish the necessary forms and processes to enable organizational learning in order to facilitate change.
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Generative Learning and Strategic Learning. In the above example, managers might rethink the entire marketing or sales process so that there will be no (or fewer) such fluctuations in the future. 3. Deuteron learning: Learning about improving the learning system itself. This is composed of structural and behavioral components which determine how learning takes place. Essentially deuteron learning is therefore "learning how to learn." The concept of the learning organization, particularly in regards to improving learning processes and understanding/modifying mental models Effective learning must therefore include all three; continuously improving the organization at all levels.
Organizational Innovation
The term innovation derives from the Latin innovatio, the noun of action from innovare.innovare "to renew or change," from in- "into" + novus "new" innovation generally refers to the creation or improvement of products, technologies, or ideas. Innovation is distinguished from renovation in that innovation generally signifies a substantial change or difference versus more incremental changes. The process by which organisations use their skills and resources to develop new goods and services or to develop new production and operating systems so that they can better respond to the needs of their customers. Organizational innovation refers to new ways work can be organized, and accomplished within an organization to encourage and promote competitive advantage. It encompasses how organizations, and individuals specifically, manage work processes in such areas as customer relationships, employee performance and retention, and knowledge management. At the core of organizational innovation is the need to improve or change a product, process or service. Organizational innovation encourages individuals to think independently and creatively in applying personal knowledge to organizational challenges. Therefore, organizational innovation requires a culture of innovation that supports new ideas, processes and generally new ways of "doing business". The road to organizational innovation lies in the ability to impart new knowledge to company employees and in the application of that knowledge. Knowledge should be used for new ways of thinking, and as a stepping stone to creativity and toward change and innovation.
Steps to Innovation
1. Is a climate of innovation supported by senior management? 2. Do managers routinely identify and bring together those individuals more oriented toward innovation those willing to think new ideas and act on them? 3. Is there a process in place monitoring innovation teams and identifying what has and hasn't worked as a result of them? 4. How can an organization be strategic and focused on it goals yet build and develop an innovative culture? 5. Is there a single most important variable or ingredient that fuels an organization toward an innovative culture?
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Creativity is defined as the tendency to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others. It is the application of a persons mental ability and curiosity to discover something new. It is also known as the generation of ideas that result in the improvement of the efficiency or effectiveness of a system. While a variety of methods have been used to stimulate group creativity, several methods are more useful in a business environment. The creative process begins with perceptual aspects instead of analytical. In the human aspects, creativity and present growth are interrelated and employees creativity is the result of planned management action. But creativity alone is not the kind of miraculous that leads to business growth. organizational effectiveness depends on the creativity of the workforce to a large extent. Creativity is any act, idea, or product that changes an existing domain, or that transforms an existing domain into a new one...What counts is whether the novelty he or she produces is accepted for inclusion in the domain
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Organizational conflict
Organizational conflict is a state of discord caused by the actual or perceived opposition of needs, values and interests between people working together. Conflict takes many forms in organizations. There is the inevitable clash between formal authority and power and those individuals and groups affected. There are disputes over how revenues should be divided, how the work should be done, and how long and hard people should work. There are jurisdictional disagreements among individuals, departments, and between unions and management. There are subtler forms of conflict involving rivalries, jealousies, personality clashes, role definitions, and struggles for power and favor. There is also conflict within individuals between competing needs and demands to which individuals respond in different ways. Conflict sometimes has a destructive effect on the individuals and groups involved. At other times, however, conflict can increase the capacity of those affected to deal with problems, and therefore it can be used as a motivating force toward innovation and change. Conflict is encountered in two general forms. Personal conflict refers to an individual's inner workings and personality problems.
Sources of conflict - We can establish three basic sources as semantic, role, and values.
1. Semantic sources are those stemming from some failure in communication.We use semantics to point out a major source of conflict as the failure of two individuals to share fully the meaning of a communicative attempt. 2. Role sources are those that rise out of the varying perceptions of people about the expected behaviors of themselves and others. Many of these come from the status and position levels in organizations. Others come from the structures and processes devised by management to organize work, channel effort, and coordinate activity. 3. Value sources have their foundations in the individualistic value sets of people. These value sets readily contribute to differences between people because they are different. They cause each of us at times to respond or behave in an unexpected manner because we are behaving as dictated by a value set not fully shared by our associates; hence, a sense on their part of a difference between us.
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Effects of conflict - Conflict has both positive and negative effects. It can be positive when it encourages creativity, new looks at o1d conditions, the clarification of points of view, and the development of human capabilities to handle interpersonal differences. Conflict can be negative when it creates resistance to change, establishes turmoil in organization or interpersonal relations, fosters distrust, builds a feeling of defeat, or widens the chasm of misunderstanding. Types of Organizational Conflict
1. Interpersonal Conflict - Interpersonal conflict is the conflict between individuals of the organization. 2. Intragroup Conflict - Intragroup conflict is the conflict within an internal group, team or department. These are conflicts that typically involve more than one person within a group. 3. Intergroup Conflict - Intergroup conflict is the conflict between different groups, teams and departments. When different groups are pitted against each other, this is an example of an intergroup conflict. 4. Interorganizational Conflict - Interorganizational conflict is the conflict that arises across different organizations. When different businesses are competing against one another, this is an example of interorganizational conflict. 5. Sources of Conflict - Jones and George say sources of conflict are different goals and deadlines, two or more managers that claim authority, group members being dependent on another group member who is not working up to par, different standards or reward systems, scarce resources and status differences.
Negotiation
Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two person/ parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise. Negotiation occurs in business, non-profit organizations, government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject is called negotiation theory. Professional negotiators are often specialized, such as union negotiators, leverage buyout negotiators, peace negotiators, hostage negotiators, or may work under other titles, such as diplomats, legislators or brokers.
Approaches to negotiation - There are two opposite types of negotiation: Integrative and Distributive.
1. Distributive Negotiation -The term distributive means; there is a giving out; or the scattering of things. A distributive negotiation usually involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future. 2. Integrative negotiation - The word integrative means to join several parts into a whole. Integrative negotiation process generally involves some form or combination of making value for value concessions, in conjunction with creative problem solving.
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1. Day-to-day / Managerial Negotiations - Such types of negotiations are done within the organization and are related to the internal problems in the organization. It is in regards to the working relationship between the groups of employees. Usually, the manager needs to interact with the members at different levels in the organization structure. For conducting the day-to-day business, internally, the superior needs to allot job responsibilities, maintain a flow of information, direct the record keeping and many more activities for smooth functioning. All this requires entering into negotiations with the parties internal to the organization. 2. Commercial Negotiations - Such types of negotiations are conducted with external parties. The driving forces behind such negotiations are usually financial gains. They are based on a give-and-take relationship. Commercial negotiations successfully end up into contracts. It relates to foregoing of one resource to get the other. 3. Legal Negotiations - These negotiations are usually formal and legally binding. Disputes over precedents can become as significant as the main issue. They are also contractual in nature and relate to gaining legal ground.
Group behaviour
Group behavior in sociology refers to the situations where people interact in large or small groups. The field of group dynamics deals with small groups that may reach consensus and act in a coordinated way. Groups of a large number of people in a given area may act simultaneously to achieve a goal that differs from what individuals would do acting alone (herd behaviour). A large group (a crowd or mob) is likely to show examples of group behaviour when people gathered in a given place and time act in a similar wayfor example, joining a protest or march, participating in a fight or acting patriotically. Group behaviour differs from mass actions which refers to people behaving similarly on a more global scale (for example, shoppers in different shops), while group behaviour refers usually to people in one place. If the group behaviour is coordinated, then it is called group action. Swarm intelligence is a special case of group behaviour, referring to the interaction between a group of agents in order to fulfil a given task. This type of group dynamics has received much attention by the soft computing community in the form of the particle swarm optimization family of algorithms.
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3. Affiliation and status membership into various groups can provide individuals with certain socials status or security. 4. Power and control with group membership comes the opportunity for leadership roles; individuals who feel they need to exert their power and opinions over others can have such experiences within group settings. 5. Achievement groups have the capability to achieve more than individuals acting alone.
Types of groups
1. Production groups consist of front line employees who produce some tangible output. Autonomous production groups are self-directed or self-managing while semi-autonomous production groups typically have a dedicated supervisor who oversees all operations. 2. Service groups consist of employees that work with customers on a repeated basis, such as airline teams, maintenance groups, sales groups, call centers, etc. 3. Management groups consist of an executive or senior manager along with managers that report directly to him/her. Management groups are often able to organize themselves towards goals such as policy making, budgeting, staffing, and planning. 4. Project groups are generally cross-function groups of individuals brought together for the duration of a specific, time-limited project. Project groups are usually disbanded once the project is complete. 5. Action and performing groups are groups that typically consist of expert specialists who conduct complex, timelimited performance events. Examples include musical bands, military crews, surgery teams, rescue units or professional music groups. 6. Advisory groups consist of employees that work outside of, but parallel with, production processes. Examples include quality circles, selection committees, or other advisory groups pulled together to make recommendations to an organization.
Collaboration
Collaboration in business can be found both inter- and intra-organization and ranges from the simplicity of a partnership and crowd funding to the complexity of a multinational corporation. Collaboration between team members allows for better communication within the organization and throughout the supply chains. It is a way of coordinating different ideas from numerous people to generate a wide variety of knowledge. The recent improvement in technology has provided the world with high speed internet, wireless connection, and web-based collaboration tools like blogs, and wikis, and has as such created a "mass collaboration." People from all over the world are efficiently able to communicate and share ideas through the internet, or even conferences, without any geographical barriers. Collaboration is working together to achieve a goal, but in its negative sense it is working as a traitor. It is a recursive process where two or more people or organizations work together to realize shared goals for example, an intriguing endeavor that is creative in natureby sharing knowledge, learning and building consensus. Most collaboration requires leadership, although the form of leadership can be social within a decentralized and egalitarian group. In particular, teams that work collaboratively can obtain greater resources, recognition and reward when facing competition for finite resources.
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The complex intergoup relationship and group dynamics leads to conflicting situations which depends upon the degree of goal compatibility and importance of the interaction to goal attainment. Goal compatibility is the extent to which the goals of more than one person or group can be achieved at the same time. In other words, the goals are compatible if one group can meet its goals without preventing the other from meeting its goals.
It is clear from the diagram that avoidance occurs when the interacting parties goals are incompatible and the interaction between groups is relatively unimportant to the attainment of the goals. Accommodation occurs when the parties goals compatible but the interaction between groups is relatively unimportant to the goals attainment competition occurs when the goals are incompatible and the interaction between groups are importance to meeting goals. Structured methods of collaboration encourage introspection of behavior and communication. These methods specifically aim to increase the success of teams as they engage in collaborative problem solving. Forms, rubrics, charts and graphs are useful in these situations to objectively document personal traits with the goal of improving performance in current and future projects.
Corporate governance
Corporate governance is a term that refers broadly to the rules, processes, or laws by which businesses are operated, regulated, and controlled. The term can refer to internal factors defined by the officers, stockholders or constitution of a corporation, as well as to external forces such as consumer groups, clients, and government regulations.In contemporary business corporations, the main external stakeholder groups are shareholders, debtholders, trade creditors, suppliers, customers and communities affected by the corporation's activities. Internal stakeholders are the board of directors, executives, and other employees. Corporate governance is a multi-faceted subject. An important theme of corporate governance is the nature and extent of accountability of particular individuals in the organization, and mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread of discussions focuses on the impact of a corporate governance system on economic efficiency, with a strong emphasis on shareholders' welfare; this aspect is particularly present in contemporary public debates and developments in regulatory policy. A well-defined and enforced corporate governance provides a structure that, at least in theory, works for the benefit of everyone concerned by ensuring that the enterprise adheres to accepted ethical standards and best practices as well as to formal laws. To that end, organizations have been formed at the regional, national, and global levels.In recent years, corporate governance has received increased attention because of high-profile scandals involving abuse of corporate power and, in some cases, alleged criminal activity by corporate officers. An integral part of an effective corporate governance regime includes provisions for civil or criminal prosecution of individuals who conduct unethical or illegal acts in the name of the enterprise.
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2. Interests of other stakeholders: Organizations should recognize that they have legal and other obligations to all legitimate stakeholders. 3. Role and responsibilities of the board: The board needs a range of skills and understanding to be able to deal with various business issues and have the ability to review and challenge management performance. 4. Integrity and ethical behavior: Organizations should develop a code of conduct for their directors and executives that promotes ethical and responsible decision making. It is important to understand, though, that reliance by a company on the integrity and ethics of individuals is bound to eventual failure. 5. Disclosure and transparency: Organizations should clarify and make publicly known the roles and responsibilities of board and management to provide shareholders with a level of accountability. They should also implement procedures to independently verify and safeguard the integrity of the company's financial reporting. Disclosure of material matters concerning the organization should be timely and balanced to ensure that all investors have access to clear, factual information.
Business ethics
Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their oneon-one dealings with a single customer.Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior. Good business ethics should be a part of every business. There are many factors to consider. When a company does business with another that is considered unethical, does this make the first company unethical by association? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses. Business ethics has both normative and descriptive dimensions. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business
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behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profitmaximizing behavior with non-economic concerns. Business ethics refer to the moral principles which should govern business activities Business ethics provide a code of conduct for the managers. The purpose of business ethics is to guide the managers and employees in performing their jobs. Ethics are concerned with what is right and what is wrong in human behaviour. They lay down norms of behaviour by the business. A few examples of ethics are: To charge fair prices from the customers To use fair weights for measurement of commodities. To pay taxes to the Government honestly. To earn reasonable Profits. To give fair treatment to the workers.
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Management means the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. Gender does neither mean 'women' nor 'feminine. Gender related issues are here to rock the world and its impacts are being felt in all organizations in terms of gender related biases, discrimination, sexual harassment, Organisational conflicts etc. These issues needs to be addressed properly otherwise can disturb the entire work culture smooth functioning of the organisation. Achieving gender equity needs restitution of employees towards gender differences through various workshops, lectures, conferences, role playing etc., so that these differences are perceived as strengths of organisation rather than an obstacle.
WORK AND GENDER - We cannot separate our social identify from our sex and gender. Gutex (1985) has identified
three significant influences of gender in the workplace. 1. Sex segregation of work: Most of the employed women in USA and elsewhere work in clinical work or less prestigious professions, and their work is less diverse than that of women 2. Differences in power, states and prestige: men typically hold jobs with more of these characteristics; 3. Work conditions wait person characteristics that emphasize the effect of gender: womens job usually have more pleasant working conditions and emphasize appearance more than mens.
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CROSS-CULTURAL DYNAMICS
Culture is the human made part of the environment. Collective programming of the mind which distinguishes the members of one group or category of people from another there is a diffuse range of elements involved in cultural programming. *language*economics *religion*politics*attitude*manners*customs* Nature of Friendship* Decisionmaking* Handling Emotions*Education*Status of Women*food e.tc WE SEE THEM AS WE ARE Perceptual thinking should be we dont see things the way they are... In essence, every aspect of management (planning, organizing, staffing, coordinating, and controlling), in one form or another, involves decision making. Decision making is thus the mangers most difficult task, and when managers cross National borders and cultures, the task becomes even more difficult. These are because people in different cultures view problems differently and apply unique decision-making processes. A decision or a decision-making process that works in one culture is often ineffective in another culture. Furthermore, different situations also require different decisionmaking styles Leadership and motivation are interrelated and interdependent. However the leadership style and the types of inducements to which individuals respond vary from one culture to another. Thus, the managerial behaviour that works welling one culture will not necessarily work welling another. For example, culturally, the French and the Swedish tend not to respond to the same leadership style.