Organizational Behaviour

UNIT 1
ORGANIZATIONAL BEHAVIOUR
MEANING
OB is nothing more than developing our understanding and development of people skill. A
multidisciplinary field devoted to understanding individual and group behavior, interpersonal
processes, and organizational dynamics.
OB is Study of human behavior in organizations. There are two words1- Organization
2- Behaviour
An organization is a collection of people working together in a division of labor to achieve
a common purpose.
The study of Organizational Behaviour (OB) is very interesting and challenging too. It is
related to individuals, group of people working together in teams. The study of organizational
behaviour relates to the expected behaviour of an individual in the organization. No two
individuals are likely to behave in the same manner in a particular work situation. It is the
predictability of a manager about the expected behaviour of an individual.
OB is concerned with the study of what people do in an organization (social system) and
how that behavior affects the performance of the organization
Individual Behavior
Individual and group behavior
Organizational structure
DEFINITIONS
According to Luthans
OB is directly concerned with the understanding, predicting and controlling of human
behavior in organizations.
According to LM Prasad
The study and application of knowledge about human behaviour related to other
elements of an organization such as structure, technology and social systems
Stephen P Robins
Organizational behaviour as a systematic study of the actions and attitudes that people
exhibit within organizations.
Roman J. Alday
O.B as a branch of the social science that seeks to build theories that can be applied to
predicting understanding and controlling behavior in work organizations
Organizational behaviour is a field of study that investigates the impact that individuals,
groups and organizational structure have on behaviour within the organization, for the
purpose of applying such knowledge towards improving an organizational effectiveness.
[Type the document title]
Nature of OB
1 A separate field of study and not a discipline only
It has assumed the status of a distinct field of study. It is a part of general
management. It represents behavioral approach to management.
2 An inter-disciplinary approach
The OB is heavily influenced by several other behavioral sciences and social
sciences like psychology, Sociology and anthropology. O.B. has psychological
foundations. The concept like learning, perception, attitude, motivation etc is
borrowed from psychology, sociology and anthropology.
3 A Normative Science
Organizational behaviour is a normative science. A normative science prescribes how
the various findings of researches can be applied to get organizational results, which
are acceptable to the society. Thus, what is acceptable by the society or individuals
engaged in an organization is a matter of values of the society and people
concerned.
4 A Science and Art

Organization behavior is both art and science. It is considered as art because it
contains knowledge about behavior of individuals. It is considered as science
because it involves application of science.
5 Humanistic and Optimistic Approach

Organizational behaviour focuses the attention on people from humanistic point of
view. It is based on the belief that needs and motivation of people are of high'
concern. Further, there is optimism about the innate potential of man to be
independent, creative, predictive and capable of contributing positively to the
objectives of the organization.
6 Oriented towards Organizational Objectives

Organizational behaviour is oriented towards organizational objectives. In fact,
organizational behaviour tries to integrate both individual and organizational
objectives so that both are achieved simultaneously.
7 A Total System Approach

An individual's behaviour can be analyzed keeping in view his psychological
framework, interpersonal-orientation, group influence and social and cultural factors;
Thus, individual's nature is quite complex and organizational behaviour by applying
systems approach tries to find solutions for this complexity.
Characteristics of OB
1 Large Size
It employ Hundreds and thousands of employees.
2 Human Resources
3 Complexity

It involves huge investment and complicated technology, their management and
operation is a complex affair.
4 Co-ordination
5 Pattern Behavior
There is a system of working in all organization like hierarchical levels, a chain of
command, rules and procedures.
6 Discipline
7 Dynamic
Organization behavior is dynamic rather than static. It essence is reflected in change
in behavior of individuals in organization
ELEMENTS OF ORGANIZATION BEHAVIOUR:
People
living and thinking being

Make up the external and social system of organization.
Structure
formal relationship of use of the people in the org.
Role and function
Technology physical and dynamic condition of the people.
Environment - the surrounding of the human behavior.
NEED OF OB:
Understanding of self and others
Motivation of human resources
Effective communication
Effective organizational climate
Good human relations
Introduction of challenge in the organization.
IMPORTANCE OF OB:
Organizational behavior provides a useful set of tools at five levels of analysis.
It helps managers to look at the behavior of individuals within an organization.
It aids their understanding of the complexities involved in interpersonal
relations, when two people (two coworkers or a superior-subordinate pair)

interact.
Organizational Behaviour is valuable for examining the dynamics of
relationships within small groups, both formal teams and informal groups.
When two or more groups need to coordinate their efforts, managers become
interested in the intergroup relations that emerge.
Organizations can also be viewed and managed as whole systems that have
inter organizational relationships.
Basic Approaches of Organisational Behavior
The four basic approaches of OB are:
Human Resources ( supportive) approach-

Employee growth and development toward higher levels of
competency, creativity and fulfillment are encouraged and supported because
people are the central resource in any organization and society.
Contingency approach
-Different managerial behaviours are required by different
environments for effectiveness.
Results-oriented approachOutcomes of organizational behavior programs are assessed in terms

of their efficiency.
Systems approachAll parts of an organization interact in a complex relationship.

Systems approach takes an across- the board view of people in organizations and
analyses issues in terms of total situations and as many factors as possible that
may affect peoples behaviour.
Goals of ob:
The first objective is to describe, systematically, how people behave under

a variety of conditions.
A second goal is to understand why people behave as they do
Predicting future employee behavior is another goal of organizational
behavior.
The final goal of Organisational behavior is to control.
VARIOUS DISCIPLINES IN OB FIELD

Organizational behavior is an applied behavioral science that is built on
contributions from a number of behavioral disciplines such as psychology,
sociology, social psychology, anthropology and economics.
Psychology:
Psychology is the study of human behavior which tries to identify the
characteristics of individuals and provides an understanding why an individual
behaves in a particular way. This thus provides us with useful insight into areas
such as human motivation, perceptual processes or personality characteristics.
Sociology
Sociology is the study of social behavior, relationships among social groups and
societies, and the maintenance of social order.The main focus of attention is on
the
social
system.
This helps us to appreciate the functioning of individuals within the organization
which is essentially a socio-technical entity.
Social psychology:
Social psychology is the study of human behavior in the context of social
situations. This essentially addresses the problem of understanding the typical
behavioral patterns to be expected from an individual when he takes part in a
group.
Anthropology

Anthropology is the science of mankind and the study of human behavior as a
whole. The main focus of attention is on the cultural system, beliefs, customs,
ideas and values within a group or society and the comparison of behavior
among different cultures. In the context of todays organizational scenario. It is
very important to appreciate the differences that exist among people coming
from different cultural backgrounds as people are often found to work with others
from the other side of the globe.
Economics:
Any organization to survive and sustain must be aware of the economic viability
of their effort. This applies even to the non-profit and voluntary organizations as
well.
Political science;
Although frequently overlooked, the contributions of political scientists are
significant to the understand arrangement in organizations. It studies individuals
and groups within specific conditions concerning the power dynamics. Important
topics under here include structuring of conflict, allocation of power and how
people manipulate power for individual self-interest etc.
MODELS OF OB:
There are five model of organizational behavior, such as1. Autocratic Model,
2. Custodial Model,
3. Collegial Model,
4. Supportive Model, and
5. System Model.
Autocratic Model: The basis of this model is power with a managerial orientation of
authority. The employees in turn are oriented towards obedience and dependence on the
boss. The employee need that is met is subsistence. The performance result is minimal.
Custodial Model: The basis of this model is economic resource with a managerial
orientation of money. The employees in turn are oriented towards security and benefits and
dependence on the organization. The employee need that is met is security. The
performance result is passive co-operation.
Collegial Model: The basis of this model is partnership with a managerial orientation of
teamwork. The employees in turn are oriented towards responsible behavior and selfdiscipline. The employee need that is met is self-actualization. The performance result is
moderate enthusiasm.

Supportive Model: The basis of this model is leadership with a managerial orientation of
support. The employees is turn are oriented towards job performance and participation. The
employee need that is met is recognition. The performance result is awakened drives.
System Model: An emerging model of organizational behavior is the system model. It is the
result of a storng search for higher meaning at work by many of today employees. They want
more than a pay-check and job security from their job. In this model helps for gowning sense
of community among co-worker. Under the system model manager try to convey to each
other that you are an important part of your whole system. We sincerely care about of you.
We want to join together to achieve a better product or service local community and society
at large. Make friendly environment, self motivation of the employee. They take responsibility
to achieve their own goals. Trust to the employee psychology co-operative explain the best
model of organizational model.
Challenges and Opportunities of Organizational Behavior:Responding to Globalization

Managing Workforce Diversity
Improving Quality and Productivity
Improving Customer Service
Improving People Skills
Stimulating Innovation and Change
Coping with Temporariness
Working in Networked Organizations
Helping Employees Balance Work-Life Conflicts
Creating a Positive Work Environment
Improving Ethical Behavior
Organizational Behavior Modification (OB-Mod):

A corrective behavior strategy
INTRODUCTION
It is the application of the techniques of experimental psychology to applied
problems.
One of the roles of a manager is managing people's behaviour.
Positive reinforcement -more effective technique.
Definition
Organisational Behaviour Modification (OBMod) referers to the "systematic
application of behavior technologies to improve performance of individuals and
groups in organisations. The model involves application of principles of
behavior derived from basic research in the field of behavior analysis" (Welsh
et al., 1993
The effectiveness of OB-MOD

This relatively simple and straight forward approach has been used in a
variety of organizations with varying rates of success. For example, B.F.
Goodrich has used OB-Mod to increase productivity by more than
300%, and Weyerhauser increased productivity in three different
groups by 8%. However, a program initiated by Standard Oil of Ohio
was discontinued due to failure to meet objectives, and A Michigan Bell
program was considered only modestly successful.
BEHAVIOUR MODIFICATION IN ORG:
Behaviour is a function of its consequences.
Relationship between the act and the results is the heart of behaviour
management
Industrial behaviour modification is based on
The work of B.F. Skinner (1938, 1958) and
The broad area of psychology called learning theory.
For a Manager Behaviour change techniques may be Incentive plans,
Wages,
Bonuses,
Disciplinary procedures, and
At last resort the threat of termination.
Some Behaviour Modification Theories Maslows Need Hierarchy theory.
Herzbergs Motivation-hygiene Theory
Expectancy Theories of Motivation
Maslows Need Hierarchy theory.
Its most widely discussed and researched motivational theory.
Individuals are motivated to act by
internal forces, which Maslow labels as needs.
Needs when Activated
Produce tension within individual
Individual act to reduce the tension or satisfy the need

Herzbergs Motivation Hygiene Theory
Herzberg tailor Maslow's approach to the work environment by
identifying organisational factors that corresponded to Maslow's
need.
Expectancy theories of motivation
Vroom (1964), porter and lawler (1968) specified How organisational factors interact with individual
variables to influence a worker to behave in a creating
manner.
The force a person to perform an act is a functions of the
algebraic sum of the products of the valences of all
outcomes and the strength of his expectancies.
Expectancy * instrumentality * valence = motivation
Porter and lawler's performance model
Refutes that satisfaction causes good performance.
Good performanceThe attainment of equitable and
desired rewardsSatisfaction.
The key variable for both good performance and satisfaction is
the receipt of desired rewards.
Guidelines for Implementing Behaviour Management Programme
Step 1: Observe
Try to identify the crucial productivity behaviours.
Step 2: Pinpoint
Identify those behaviours that may require change.
Step 3: Record
Record not only the actively itself but also
The stimulus conditions under which it occurs,
As well as the consequences that follow it for the employee.
Step 4: Change the Consequences
Correct the feedback deficiencies discovered if any.

-
The lack of rewards etc
Scope of ob:
Impact of personality on performance
Employee motivation
Leadership
How to create effective teams and groups
Study of different organizational structures
Individual behavior, attitude and learning

Perception
Design and development of effective organization
Job design
Impact of culture on organizational behavior
Management of change
Management of conflict and stress
Organizational development
Organizational culture
Transactional analysis
Group behavior, power and politics
Job design
Study of emotion
QUESTIONS $ 8 m # 15m
$Discuss the importance of studying organisational behaviour in managerial context.
Give examples.
#Explain the basic models of organisational behaviour in the Global perspective.

$ What are the approaches to organisational behaviour?
# State the importance of studying organisational behaviour.
$ What is organisational behaviour? Explain the elements of organisational behaviour.
# Explain the different models of organisational behaviour.
$ List and explain the reasons for the study of Organisation Behaviour.
$ Explain organisational behaviour modification.

# Nature and scope of ob

$ how the study of ob is relevant to management fns.
# discuss inter relationships btn various disciplines with ob
$ meaning and scope of ob
$ explain the disciplines which contribute the ob field
# nature and scope of ob with eg, substantiate some of the recent changes tat
have influenced the study of ob.
QUESTIONS
$ What do you know about personality? How is it importance in an organisation?
$What are the differences between individuals?
#Explain the various factors that influence individual behaviour.
# Examine the relevance of OB with learning attitude, perception and personality.
$What are the factors which affect attitude formation?
# Discuss Freud's psycho analytic theory of personality.
$ personality trait theory
# explain the major personality attribute tat influence ob
$ meaning of personality and its relevance to ob
# factors determining personality
$ five traits tat determine personality
# importance of studying personality by you
#methods of personality assessment
$ brief note on locus of control and Machiavellianism
# define personality and examine the major factors which shape the personality
of an individual.
INDIVIDUAL BEHAVIOUR
What is behaviour?
Behaviour is the pattern of how a person responds to a stimulus.
Responses can be influenced by
Culture: the shared patterns of behaviors and interactions, cognitive constructs, and
affective understanding that are learned through a process of socialization. These shared
patterns identify the members of a culture group while also distinguishing those of another
group.
Attitude: a hypothetical construct that represents an individual's like or dislike for an item;
mental position relative to a way of thinking or being. The current popular usage of attitude
implies a negative mindset, a "chip on the shoulder" behavior, and an inner anger toward the
prevailing majority of thought.Emotion: a feeling that is private and subjective; a state of
psychological arousal an expression or display of distinctive somatic and autonomic
responses.
Values: beliefs of a person or social group in which they have an emotional investment
(either for or against something)Ethics: response based on what is right; the process of
determining how one should hold the interests of various stakeholders, taking into account
moral values/principles
Authority: the power or right to give orders or make decisionsCoercion: obtaining a
response by use force; compelling a person to behave in an involuntary way (whether
through action or inaction) by use of threats/intimidationPersuasion: obtaining a response
by convincing a person; the process of guiding people toward the adoption of an idea,
attitude, or action by rational and symbolic (though not always logical) means. It is strategy
of problem-solving relying on "appeals" rather than force.
Genetics: inherited from parents; pertaining to genes or any of their effects.
Why to study Individual Behaviour?
Learn ones own behaviour pattern

Interpret ones own behaviour pattern
Take corrective measures to develop appropriate behaviour pattern for personal
effectiveness
Develop Self Competency
Self Competency
Understanding ones own personality
Taking responsibility for managing oneself
Assessing and establishing ones own developmental, personal and work related goals
Factors affecting individual behavior:
1. Personal Factors
2. Environmental Factors
3. Organizational Behaviour
Personal factor:
a) Biographical characteristics
I.
Physical characteristics
II.
Age
III.
Gender
IV.
Religion
V.
Marital status
VI.
Experience
VII.
Intelligence
VIII.
Ability
b) Learned characteristics
i.
Personality
ii.
Perception
iii.
Attitude
iv.
values
Learned characteristics:
1. Personality:- Personality is dynamic concept describing the growth and
development of a persons whole psychological system.
2. Perception:- Perception is the viewpoint of one person interprets situation.
3. Attitude:- Attitude expresses an individuals positive or negative feeling about some
object.
4. Values:- Values carries an individuals ideas as to what is right and what is wrong.
Values are global beliefs that guide actions and judgments across a variety of
situations. Values represents basic convictions that a specific mode of conduct is
personally or socially preferable to an opposite mode of conduct.
2) Environmental factors:
The external environment is known to have a considerable impact on a persons

behaviour. A brief description of the external factors follows:-
1. Economic factors.
a) Employment level:-The employment opportunities available to individuals,
the wages payable to them, the general economic environment and the

technological development affect the individual behaviour to a large extent,
either directly or indirectly.
b) Wage rates:- The major considerations of every employee working in any
organization is his wages. Monetary factor is the major factor affecting the job
satisfaction of the worker.
c) Technological development:- Technological development is having the
impact on the job opportunities.
2. socio-culture factor :- the social environment of an individual includes his
relationship with family members, friends, colleagues, supervisors and subordinates.
The behaviour of other people not with the individual, but in general, is also a part of
his social environment.
3. Political factors :- political environment of the country will affect the individual
behaviour not directly, but through several other factors. Like stable political
situation means better employment and high level of capital investment.
4. Legal environment:- Rules and laws are formalized and written standards of
behavior
3) Organizational factor:
Individual behaviour is largely affected by a variety of organizational system and

resources.
1. Physical facilities:- the physical environment at a work place is the
arrangement of people and things so that it has a positive influence on people.
Some of the individual behaviour which affect the individual behaviour are
noise level, heat , light, ventilation, nature of job, office furnishing, number of
people.
2. Organizational structure and design:- these are concerned with the way
in which different departments in the organizations are set up, what is the
reporting system, how are the line of communications are set among different
level of organizations.
3. Leadership:- the system of leadership is established is established by the
management to
provide direction, assistance, advice and coaching to individuals.
4. Reward system:- the behaviour and performance of the individuals is also
influenced by the reward system established by the organization to compensate their
employees.
factors that influence individual behaviour and performance.

There are several internal as well as external factors affecting employee behaviour.
Let us go through them in detail:
Leadership
Managers and leaders play an important role in influencing the behaviour of individuals at
workplace. It is the responsibility of leaders to set a direction for team members. In majority
of the cases, it has been observed that employees do not feel like going to work when they
have strict bosses. You need to stand by your team always. Guide them and help them in
their day to day operations and help them acquire new skills and upgrade their knowledge.
Make them feel important. As a leader, you need to be a strong source of inspiration for your
subordinates. If you do not reach office on time, how can you expect your team members to
adhere to the rules and regulations of organization?
Work Culture
Employees need to feel comfortable at workplace for them to stay positive and happy. Rules
and regulations should be same for everyone. Employees ought to be encouraged to
respect their reporting bosses and follow the code of ethics. Do not have complicated
reporting systems. Transparency at all levels is essential. You must know what your team
member is up to and vice-a-versa. Job security is one of the most crucial factors affecting
employee behaviour. Stand by your team at the times of crisis. Do not throw them out during
bad times. Believe me, they will never leave you.
Job Responsibilities
Employees should be asked to do what best they can perform. Do not overburden
employees. Encourage them to upgrade their skills from time to time.
Effective Communication
Managers need to communicate effectively with team members. The moment, employees
feel left out, they lose interest in work. They need to have a say in organizations major
decisions. Let them express their views and come out with their problems. Grievances need
to be addressed immediately.
Family and Personal Life

Trust me, if you fight with your family members or relatives in the morning, you feel restless
the whole day. It has been observed that individuals with a troubled background or
problematic family life tend to behave irrationally at workplace. Employees who have
strained relationships with family members like to sit till late at work and spoil the entire work
culture. Individuals from very poor families also have a habit of stealing office stationery and
taking things to home. Conflicts in personal life lead to stress and irrational behaviour. Also,
individuals should try not to bring their personal problems to work. Try to keep your personal
and professional life separate.
Relationship at Work
It is necessary to have friends at the workplace. You need people around to talk to, discuss
and share experiences. It is really not possible to work in isolation. Not allowing employees
to interact with fellow workers leads to frustration and stress at workplace. Avoid arguing with
team members.
NATURE OF INDIVIDUAL DIFFERENCES
Individual differences are personal attributes that vary from one person to another. Individual
differences may be physical and psychological. The figure 5.2 shows the attributes of physical and
psychological differences.
Physical Differences
Height
Weight
Body Shape
Appearance
Complexion
Psychological Differences
Personality
Attitudes
Perception
Motivation
Learning
Whenever an organization attempts to assess the individual differences among its

employees, it must consider the situation in which that particular behavior occurs. Individuals who are
satisfied in one context may prove to be dissatisfied in another context. Assessing both individual
differences and contributions in relation to incentives and contexts, then, is a major challenge for
organizations as they attempt to establish effective psychological contracts with their employees and
achieve optimal fits between people and jobs.
Individual differences make the manager's job extremely challenging. In fact, according to a
recent research, "variability among workers is substantial at all levels but increases dramatically with
job complexity. Due to these reasons, growing work force diversity compel managers to view
individual differences in a fresh way. Leaders now talk frequently about "valuing differences" and learn
to "manage diversity". So rather than limiting diversity, as in the past, today's managers need to better
understand and accommodate employee diversity and individual differences.
IMPORTANT DIMENSIONS OF INDIVIDUAL DIFFERENCES
Self-concept
Personality dimensions
Abilities, and
Personal values and ethics.
Self-concept
Self is the core of one's conscious existence. Awareness of self is referred to as one's self-concept.
Sociologists Viktor Gecas defines self-concept as "the concept the individual has of himself as a
physical, social and spiritual or moral being". In other words, every individual recognizes himself as a
distinct individual. A self-concept would be impossible without the capacity to think. This brings us to
the role of cognitions. Cognitions represent, "any knowledge, opinion, or belief about the environment
about oneself, or about one's behavior". Among many different types of cognitions, those involving
expectation, planning, goal setting, evaluating and setting personal standards are particularly relevant
to organizational, behavior.
Self-esteem
Self-esteem is a belief over one's own worth based on an overall self-evaluation. Those with low selfesteem tend to view themselves in negative terms. They do not feel good about themselves, tend to
have trouble in dealing effectively with others, and are hampered by self-doubts. High self-esteem
individuals, in contrast, see themselves as worthwhile, capable and acceptable. Although, high selfesteem is generally considered a positive trait because it is associated with better performance and
greater satisfaction, recent research uncovered flaws among those having high self-esteem.
Specifically, high self-esteem subjects tended to become self-centered and boastful when faced with
situations under pressure Hence moderate self-esteem is desirable.
Managers can build employee self-esteem in four ways:
1.
2.
Be supportive by showing concern for personal problems, interests, status and

contribution.
Offer work involving variety, autonomy and challenges that suit the individual's values,
skills and abilities.

3.
4.
Strive for management-employee cohesiveness and trust building.

Have faith in each employee's self-management ability, reward successes.
Self-efficacy
Self-efficacy is a person's belief about his' or her chances of successfully accomplishing a specific
task. According to one organizational behavior writer, "Self-efficacy arises from the gradual acquisition
of complex, cognitive, social, linguistic, and/or physical skills through experience",
There is strong linkage between high self-efficacy expectations and success in terms of
physical and mental tasks, anxiety reduction, addiction control, pain tolerance and illness recovery.
Oppositely, those with low self-efficacy expectations tend to have low success rates.
Self-efficacy Implications for Managers
Managers need to nurture self-efficacy in them and in their employees. Self-efficacy requires
constructive action in each of the following managerial areas:
To design recruitment selection procedure.

To design interview questions to probe applicant's general self-efficacy for determining
orientation and training needs.
For designing job.
For systematic self-management training.
For goal-setting and quality improvement.
To evolve suitable leadership.
To design suitable regards.
Personality Dimensions
The big, five personality dimensions are: extroversion, agreeableness, thoroughness, emotional
stability and openness to experience. Ideally, these personality dimensions that correlate positively
and strongly with job performance would be helpful in the selection, training and appraisal of
employees. The individuals who exhibit; traits associated with a strong sense of responsibility and
determination generally perform better than those who do not.
PHYSICAL AND INTELLECTUAL QUALITIES
Physical differences among individuals are the most visible of all differences. They are also relatively
easy to assess. Intellectual differences are somewhat more difficult to discern, but they too can be
assessed by fairly objective means. The abilities/skills and competencies of employees are both
physical and intellectual qualities.
Ability refers to an individual's skill to perform effectively in one or more areas of activity, such
as physical, mental or interpersonal work.
Individuals with numerical ability, for example, can be trained to apply their ability in the field
of engineering, accounting and computer science. Abilities develop from an individual's
natural aptitudes and subsequent learning opportunities. Aptitudes are relatively stable
capacities for performing some activity effectively. Learning opportunities translate aptitude
into abilities through practice, experience and formal training. Organizations have to ensure
that people possess the necessary abilities to engage in the behaviors required for effective
performance. This can 6e accomplished either by careful selection of people or by a
combination of selection and training.
Skills are generally thought of as being more task-specific capabilities than abilities. For
example, an individual with numerical ability who goes to school to learn accounting develops
a numerical skill specific to that field'. Thus, when a particular ability is applied to a specialized
area, (for example accounting), it becomes a skill.
Competencies are skills associated with specialization. Competencies are skills that have
been refined by practice and experience and that enable, the-individual to specialize in some
field. For example, an accountant with numerical "ability and accounting skill takes a position
in the Taxation Department and as time passes, he develops more competency as a tax
expert.
Physical abilities such as strength, flexibility, endurance and stamina can be developed with exercise
and training. Mental abilities such as reasoning, memory visualization, comprehension and interpersonal abilities can also be developed through practice and education. Even in the absence of such
formal programs, many individuals manage their own careers in such a way as to continually upgrade
their abilities, skills and competencies in order to remain valuable to their organizations.
PERSONAL VALUES AND ETHICS

According to Milton Rokeach, a value is "an enduring belief that a specific mode of conduct or
end-stated of existence is personally or socially preferable to an opposite or converse mode of
conduct are end-state of existence".
Ethics involve the study of moral issues and choices. It is concerned with right versus wrong
and good versus bad. Relative to the workplace, the terms business ethics and management ethics
are often heard.
Moral Principles for Managers
Judge actions by their consequences; achieve the greatest good for the greatest number of
people.
Basic human rights should be respected.
Rules and rewards should be administered impartially, fairly and equitably.
Improving Organization's Ethical Climate
Managers are powerful role models whose habits and actual behavior send clear signals
about the importance of ethical conduct. Ethical behavior is a 1 top to bottom proposition.
Screen potential employees by checking references, credentials, and other information for
ascertaining their ethical behavior.
PERSONALITY
DEFINITION
The term personality has been derived from latin Persona
which means to speak through. Thus, personality is used in
terms of influencing others through external appearance. The
sum total of ways in which and individual reacts and interacts
with others.
Personality is the dynamic organisation within the individual of
those psycho-physical systems that determine his unique,
adjustments to his environment.-Allport.
A relatively enduring pattern of thinking, feeling and acting
that characterizes a persons response to her or his
environment Bratton (2010)
DETERMINANTS OF PERSONALITY
People are very Complex. They are different abilities and
interests. Personality is an important factor influencing
and employees behavior.
Determinants of Personality
(1) Biological Factors:
(i)
Heredity: It means the transmission of the qualities such as physical stature, facial
attractiveness, sex, temperament, muscle composition, reflexes etc, from the
ancestors and parents to the descendants. Heredity is generally more important in
determining a persons temperament than his values and ideals.
(ii)
Brain: There is a general feeling that brain plays an important role in the
development of ones personality. However, no conclusive proof is available so far
about the nature of relationship between the brain and personality.
(iii)
Physical features: An individuals external appearance may have a tremendous
effect on his personality. Such factors include height, weight, colour, facial features,
etc. of the individual.
(2) Family and Social factors: The development of individuals personality is also influenced by his
family and other social groups. The infant acquires those behaviour patterns that are customary and
acceptable to the standards of the family and the community where the family lives. The status of the
family in the society influences individuals perception about self, others, work, money, etc.,

(3) Situational factors: An individuals personality may change in different situations. The demands
of different situations may call for different aspects of ones personality. Therefore, we should not
look at the personality factor in isolation.
Group and culture are the early environmental factors that influence later behaviour. Family and the
social setting during early stages of education are the important factors which influence the initial
formation of personality. Whatever the child learns lasts for life time. Later in life, it is the peer
groups of primary affiliations at work, social activities etc. which shape the personality of an
individual.
(4) Other factors:
a) Temperament: Temperament is the degree to which one responds emotionally.
b) Interest: An Individual normally has many interests in various areas. The successful persons in
the same occupation have to a large extent, the same interests.
c) Character: Character primarily means honesty. It is resistance to stealing and cheating others.
d) Schema: It is an individuals belief, frame of reference, perception and attitude which the
individual possesses towardss the management, the job, working conditions, pay, fringe benefits,
incentive system, and development programmes in the organization.
e) Motives: Motives are the inner drives of an individual. They represent goal directed behaviour of
individual.
Personality type:
Type A Profile
Is always moving
Walks rapidly
Talks rapidly
Eats rapidly
Is impatient
Des two things at once
Cant cope with leisure time
Is obsessed with numbers
Measures success by quantity
Is aggressive
Is competitive
Constantly feels under time pressure
Type B Profile
Is not concerned about time
Is Patient
Doesnt brag
Plays for fun, not to win
Relaxes without guilt
Has not pressing deadlines
Is mild-mannered
Is never in a hurry
Theories of Personality:
1. Psychoanalytic theory: Sigmund Freud propounded psychoanalytic theory of personality
which is based on the notion that man is motivated more by unseen forces than by conscious
and rational thought. Freud noted that his clients behaviour could not always be consciously
explained. This clinical finding led him to conclude that major motivating force in man is
unconscious framework. This framework contains three aspects, though inter-related but often
conflicting. These are Id, Ego and Superego. Their brief description is as follows:
(i)
The Id: The id is the source o psychic energy and seeks immediate gratification for biological
or instinctual needs such as hunger, thirst and sex. The id would proceed unchecked to satisfy
motives, particularly the sexual relations and pleasures, were it not for the channeling activity
into acceptable ways by the ego. As an individual matures, he learns to control the id. But
even then, it remains a driving force throughtout life and an important source of thinking and
behaving.
(ii)
The Ego: The ego is the conscious and logical part of human personality and is associated
with the reality principle. While id represents the unconscious part, ego is conscious about the
realities of the external environment. The ego keeps the id in check through intellect and
reason.

(iii)
The Super ego: The super ego represents societal and personal norms and serves as an ethical
constraint on behaviour. It can best be described as the conscience. The superego provides
norms to ego to determine what is wrong or right. However, a person is not aware of the
working of the super ego, and conscience is developed by absorption of cultural values and
norms of the society.
2. Big Five Model: Five personality traits (the so called big five) have recently emerged from
research as being especially related to job performance. Characteristics of these traits can be
summarized briefly as follows:
(1) Extraversion
(2) Agreeableness
Sociable, talkative and assertive

Good natured, co-operative, and trusting
(3) Conscientiousness
Responsible, dependable,
persistent and achievement-oriented
(4) Emotional Stability
-- Viewed from a negative
stand point:
tense, insecure and nervous
(5) Openness to experience Imaginative, artistically
sensitive and
intellectual
3. Trait Theory: Traits are characteristics of a person in which he/she differs

from others.
-Based on 3 assumptions
Traits are common to many individual but vary in absolute amount.
Traits are relatively stable.
Ones trait can be inferred by measuring his/her behaviour.
Personality Theories
There are several theories but the more prominent among them are: (i) type, (ii)
trait, (iii) psychoanalytic, (iv) social learning and (v) humanistic.
Type Theories
Type theories place personalities into clearly identifiable categories.

Kretschmer and Sheldon are credited with this classification. In type theories
relationship was sought to be established between features of face or body and
personality. Thus, a short, plumb person (endomorph) was said to be sociable,
relaxed, and even tempered; a tall, thin person (ectomorph) was characterized
as restrained, self conscious, and fond of solitude; a heavy set muscular
individual (mesomorph) was described as noisy, callous, and found of physical
activity. Although a persons physique may have some influence on personality,
the relationship is much more subtle than this sort of classification implies.
Thus classification of personalities on body basis is subjective.
The second basis to type personalities is psychological factors. Carl Jung,
divided all personalities into introverts and extroverts. These terms are
normally associated with an individuals sociability and interpersonal
orientation.
Extroverts are gregarious, sociable individuals, while introverts
are shy, quiet and retiring.

Trait Theories
Trait theorists assume that a personality can be described by its position on a

number of continuous dimensions or scales, each of which represents a trait.
Thus, we could rate an individual on a scale of intelligence, emotional stability,
aggressiveness, creativeness, or any of a number of other dimensions.
Psychologists working in a area of trait theory are concerned with (a)

determining the basic traits that provide a meaningful description of
personality, and (b) finding some way to measure them. Psychoanalytic theory
is based on the in-depth study of individual personalities.
Social Learning Theory
There are two ways of learning : Learning through reinforcement direct

experience and learning by observing others, also called vicarious learning. For
social learning theorists reinforcement is not always necessary for learning.
They believe that since an individual can make use of complex symbolic
processes to code and store his observations in memory, he can learn by
observing the actions of others and by noting the consequences of those
actions.
Some of the person variables that determine what an individual will do in a
particular situation include the following :
Competencies
Cognitive strategies
Outcome expectations
Subjective value outcome
Self regulatory systems and plans
The Humanistic Approach
The humanistic approach to the study of personality includes number of

theories, although different in some respects, share a common emphasis on
mans potential for self direction and freedom of choice. Carl Rogers and
Abraham Maslow are credited with the humanistic theory of personality.
Rogers Self Theory
Rogers approach to personality is described as phenomenological. For Rogers,

behaviour is utterly dependent upon how one perceives the world that is,
behaviour is the result of immediate events as they are actually perceived and
interpreted by the individual. Such an approach to personality emphasizes the
self and its characteristics. Indeed, this theory is often, referred to as self
theory of personality because the best vantage point for understanding
behaviour is from the internal frame of reference of the individual himself.

Maslows Self-Actualisation Theory
Abraham Maslow is regarded as the spiritual father of humanism in American

psychology.
Humanistic psychology of Maslow radically differs from
psychoanalytic and learning or behaviouristic theories. Humanistic psychology
of Maslow, on the other hand, postulates man as self actualiser. By selfactualisation Maslow meant the development of full individually, with all parts
of the personality in harmony.
Existential philosophy is concerned with man as an individual and each person
alone is responsible for his own existence. This drive of man which is inherent
in him, is called self-actualisation.
PERSONALITY FACTORS IN ORGANISATIQN5
Some of the important personality factors that determine what kind of behaviors are exhibited at work
include the following:
Need Pattern
Steers and Braunstein in 1976 ^developed a scale for the four needs of personality that became
apparent in the 'work environment. They are as follows:
The need for achievement: Those with a high achievement need engage themselves
proactively in work behaviors in order to feel proud of their achievements and successes.
The need for affiliation: Those in greater need for affiliation like to work cooperatively with
others.
The need for autonomy: Those in need for autonomy function in the best way when not
closely supervised.
The need for dominance: Those high in need for dominance are very effective while
operating in environments where they can actively enforce their legitimate authority.
Locus of Control
Locus of control is the degree to which an individual believes that his or her behavior has direct
impact on the consequences of that behavior. Some people, for example, believe that if they work
hard they will certainly succeed. They, strongly believe that each individual is in control of his or her
life. They are said to have an internal locus of control. By contrast, some people think that what
happens to them is a result of fate, chance, luck or the behavior of other people, rather than the lack
of skills or poor performance on their part. Because- these individuals think that forces beyond their
control dictate the happenings around them, they are said to have an external locus of control.
As a personality attribute, locus of control has clear implications for organizations. For
example, certain individuals have an internal locus of control, which means they have a relatively
strong desire to participate in the management of their organizations and have a' freedom to do their
jobs. Thus, they may prefer a decentralized organization where they have a right of decision-making
and work with a leader who provides them freedom and autonomy. They may like a reward system
that recognizes individual performance and contributions.
Conversely, people with an external locus of control, are likely to prefer a more centralized
organization where they need not take any decisions. They may incline to structured jobs where
standard procedures are defined for them. They may prefer a leader who makes most of the decisions
and a reward system that considers seniority rather than merit.
Introversion and Extroversion

Introversion is the tendency of individuals, which directs them to be inward and process feelings,
thoughts and ideas within themselves. Extroversion, on the contrary, refers to the tendency in
individuals to look outside themselves, searching for external stimuli with which they can interact.
While there is some element of introversion as well as extroversion in all of us, people tend to be
dominant as either extroverts or introverts. Extroverts are sociable, lively and gregarious and seek
outward stimuli or external exchanges. Such individuals are likely to be most successful while working
in the sales department, publicity office, personal relations unit, and so on, where they can interact
face to face with others. Introverts, on the other Hand, are quiet, 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 such as R&D work, in a relatively
quiet atmosphere. Since managers have to constantly interact with individuals both in and out of the
organization and influence people to achieve the organization's goals, it is believed that extroverts are
likely to be more successful as managers.
Tolerance for Ambiguity
This personality characteristic indicates the level of uncertainty that people can tolerate to work
efficiently without experiencing undue stress. Managers have to work well under conditions of extreme
uncertainty and insufficient information, especially when things are rapidly changing in the
organization's external environment. Managers who have a high tolerance for ambiguity can cope up
well under these conditions. Managers, who have a low tolerance for ambiguity may be effective in
structured work settings but find it almost impossible to operate effectively when things are rapidly
changing and much information about the future events is not available. Thus, tolerance for ambiguity
is a personality dimension necessary for managerial success.
Self-Esteem and Self-Concept
Self-esteem denotes the extent to which individuals consistently regard themselves as capable,
successful, important and worthy individuals. Self-esteem is an important personality factor that
determines how managers perceive themselves and their role in the organization. Self-esteem is
important to self-concept, i.e., the way individuals, define themselves as to who they are and derive
their sense of identity. High self-esteem provides a high sense of self-concept, which, in turn,
reinforces high self-esteem. Thus, the two are mutually reinforcing. Individuals with a high self-esteem
will try to take on more challenging assignments and be successful. Thus, they will be enhancing their
self-concept i.e., they would tend to define themselves as highly valued individuals in the
organizational system. The higher the self-concept and self-esteem, the greater will be their
contributions to the goals of the organization, especially when the system rewards them for their
contributions.
Authoritarianism and Dogmatism
Authoritarianism is the extent to which an individual believes that power and status differences are
important within' hierarchical social systems like organizations. For example, an employee who is
highly authoritarian may accept directives or orders from his superior without much questioning. A
person who is not highly authoritarian might agree to carry out appropriate and reasonable directives
from his boss. But he may also raise questions, express disagreement and even refuse to carry out
requests if they arc for some reason objectionable.
Dogmatism is the rigidity of a person's beliefs and his or her openness to other viewpoints.
The popular terms 'close-minded' and 'open-minded' describe people who are more and less
.dogmatic in their beliefs respectively. For example, a manager may be unwilling to listen to a new
idea related to doing something more efficiently. He is said to be a person who is close-minded or
highly dogmatic. A manager who is very receptive to hearing about and trying out new ideas in the
same circumstances might be seen as more open-minded or less dogmatic. Dogmatism can be either
beneficial or detrimental to organizations, but given the degree of change in the nature of

organizations and their environments, individuals who are, not dogmatic are most likely to be useful
and productive organizational members.
Risk Propensity
Risk-propensity is the decree to which an individual is willing to take chances and make risky
decisions. A manager with a high-risk propensity might be expected to experiment with new ideas and
to lead the organization in new directions. In contrast, a manager with low risk propensity might lead
to a stagnant and overly conservative organization.
Machiavellianism
Machiavellianism is manipulating or influencing other people as a primary way of achieving one's
goal. An individual tends to be Machiavellian, if he tends to be logical in assessing the system around,
willing to twist and turn facts to influence others, and try to gain control of people, events and
situations by manipulating the system to his advantage.
Type A and B Personalities
Type A persons feel 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 easy-going individuals who do not feel the time urgency, and who do not experience the
competitive drive. Type A individuals are significantly more prone to heart attacks than Type B
individuals. While Type A persons help the organization to move ahead in a relatively short period of
time they may also suffer health problems, which might be detrimental to both themselves and the
organization in the long run.
Work-Ethic Orientation
Some individuals are highly work-oriented while others try to do the minimum Work that is necessary
to get by without being fired on-the-job. The extremely work oriented person gets greatly involved in
the job. Extreme work ethic values could lead to traits of "workahollism" where work is considered as
the only primary motive for living with very little outside interests. For a workaholic turning to work can
sometimes become a viable alternative to facing non-work related problems. A high level of work ethic
orientation of members is good for the organization to achieve its goals. Too much "workahollism",
however, might lead to premature physical and mental exhaustion and health problems, which is
dysfunctional for both organization and the workaholic members.
The above ten different personality predispositions
managerial and organizational effectiveness.
are
important for individual,
Overview
The big five personality traits can be summarized as follows:
I.
Neuroticism - A tendency to easily experience unpleasant emotions such as anxiety,

anger, or depression.
II.
Extroversion - Energy, surgency, and the tendency to seek stimulation and the
company of others.
III.
Agreeableness - A tendency to be compassionate and cooperative rather than

suspicious and antagonistic towards others.

IV.
Conscientiousness - A tendency to show self-discipline, act dutifully, and aim for

achievement.
V.
Openness to experience - Appreciation for art, emotion, adventure, and unusual

ideas; imaginative and curious.
These traits are usually measured as percentile scores, with the average mark at 50%; so for
example, a Conscientiousness rating in the 80th percentile indicates a greater than average sense of
responsibility and orderliness, while an Extroversion rating in the 5th percentile indicates an
exceptional need for solitude and quiet.
The Big Five:
In 1981 in a symposium in Honolulu, four prominent researchers (Lewis Goldberg, Naomi TakamotoChock, Andrew Comrey, and John M. Digman) reviewed the available personality tests of the day, and
decided that most of the tests which held any promise seemed to measure a subset of five common
factors, just as Norman had discovered in 1963.
Emergence of the current model:
Following the discovery of the convergence of the Lexical Hypothesis with the findings of theoretical
research, a model was developed which states that personality can be described in terms of five
aggregate-level trait descriptors.
Although many personality researchers have built their own models, when they talk to each other they
usually translate their model into the one proposed by Norman in 1963.
The Factors
(The following descriptions of the five factors were adapted from the writings of Dr. John A.
Johnson.)
Extroversion
Extroversion is marked by pronounced engagement with the external world. Extroverts enjoy being
with people, are full of energy, and often experience positive emotions. They tend to be enthusiastic,
action-oriented, individuals who are likely to say "Yes!" or "Let's go!" to opportunities for excitement. In
groups they like to talk, assert themselves, and draw attention to themselves.
Introverts lack the exuberance, energy, and activity levels of extroverts. They tend to be quiet, lowkey, deliberate, and disengaged from the social world. Their lack of social involvement should not be
interpreted as shyness or depression; the introvert simply needs less stimulation than an extrovert
and prefers to be alone.
Agreeableness
Agreeableness reflects individual differences in concern with cooperation and social harmony.
Agreeable individuals value getting along with others. They are therefore considerate, friendly,
generous, helpful, and willing to compromise their interests with others'. Agreeable people also have
an optimistic view of human nature. They believe people are basically honest, decent, and
trustworthy.
Disagreeable individuals place self-interest above getting along with others. They are generally
unconcerned with others' well-being, and therefore are unlikely to extend themselves for other people.

Sometimes their skepticism about others' motives causes them to be suspicious, unfriendly, and
uncooperative.
Agreeableness is obviously advantageous for attaining and maintaining popularity. Agreeable people
are better liked than disagreeable people. On the other hand, agreeableness is not useful in situations
that require tough or absolute objective decisions. Disagreeable people can make excellent scientists,
critics, or soldiers.
Conscientiousness
Conscientiousness concerns the way in which we control, regulate, and direct our impulses. Impulses
are not inherently bad; occasionally time constraints require a snap decision, and acting on our first
impulse can be an effective response. Also, in times of play rather than work, acting spontaneously
and impulsively can be fun. Impulsive individuals can be seen by others as colorful, fun-to-be-with,
and zany. Conscientiousness includes the factor known as Need for Achievement (N Ach).
The benefits of high conscientiousness are obvious. Conscientious individuals avoid trouble and
achieve high levels of success through purposeful planning and persistence. They are also positively
regarded by others as intelligent and reliable. On the negative side, they can be compulsive
perfectionists and workaholics. Furthermore, extremely conscientious individuals might be regarded
as stuffy and boring. Unconscientiously people may be criticized for their unreliability, lack of ambition,
and failure to stay within the lines, but they will experience many short-lived pleasures and they will
never be called stuffy.
Neuroticism or (inversely) Emotional Stability

Neuroticism refers to the tendency to experience negative feelings. Those who score high on
Neuroticism may experience primarily one specific negative feeling such as anxiety, anger, or
depression, but are likely to experience several of these emotions. People high in Neuroticism are
emotionally reactive. They respond emotionally to events that would not affect most people, and their
reactions tend to be more intense than normal. They are more likely to interpret ordinary situations as
threatening, and minor frustrations as hopelessly difficult. Their negative emotional reactions tend to
persist for unusually long periods of time, which means they are often in a bad mood. These problems
in emotional regulation can diminish a neurotic's ability to think clearly, make decisions, and cope
effectively with stress.
At the other end of the scale, individuals who score low in Neuroticism are less easily upset and are
less emotionally reactive. They tend to be calm, emotionally stable, and free from persistent negative
feelings. Freedom from negative feelings does not mean that low scorers experience a lot of positive
feelings; frequency of positive emotions is a component of the Extroversion domain.
Openness to Experience
Openness to Experience describes a dimension of cognitive style that distinguishes imaginative,
creative people from down-to-earth, conventional people. Open people are intellectually curious,
appreciative of art, and sensitive to beauty. They tend to be, compared to closed people, more aware
of their feelings. They tend to think and act in individualistic and nonconforming ways. People with low
scores on openness to experience tend to have narrow, common interests. They prefer the plain,
straightforward, and obvious over the complex, ambiguous, and subtle. They may regard the arts and
sciences with suspicion, regarding these endeavors as abstruse or of no practical use. Closed people
prefer familiarity over novelty; they are conservative and resistant to change.

Openness is often presented as healthier or more mature by psychologists, who are often themselves
open to experience. However, open and closed styles of thinking are useful in different environments.
The intellectual style of the open person may serve a professor well, but research has shown that
closed thinking is related to superior job performance in police work, sales, and a number of service
occupations.
Significance
One of the most significant advances of the five factor model was the establishment of a taxonomy
that demonstrates order in a previously scattered and disorganized field. For example, as an
extremely heterogeneous collection of traits, research had found that "personality" (i.e., any of a large
number of hypothesized personality traits) was not predictive of important criteria. However, using the
five-factor model as a taxonomy to group the vast numbers of unlike personality traits, psychologists
Barrick and Mount used meta-analysis of previous research to show that in fact there were many
significant correlations between the personality traits of the five-factor model and job performance in
many jobs. Their strongest finding was that psychometric Conscientiousness was predictive of
performance in all the job families studied. This makes perfect sense, insofar as it is very difficult to
imagine any job where, all other things equal, being high in Conscientiousness is not an advantage.
Importance of personality:
Following are the benefits I have received from a study of personality.

Each of these items will be discussed in detail further on.
1) Increasing personal integrity: The greater self-awareness that comes
from self study has lead me to greater personal integrity by discarding
what was false in me and revealing what is true. This should be the first
step of any psychotherapy or spiritual path to find out who we really
are in personal terms. Then we look for who we are in "transpersonal"
terms.
2) Increasing personal freedom: This is due to conscious control of my life
resulting from release from subconscious controls and external influences.
3) Objectification of self and other: With an overall personality system in
mind, I can see that myself and others are all pieces of a pattern. I would
like to have an accurate view of the world and of other people. I don't. My
perceptions are distorted, as determined by my personality traits. When I
compare my traits with other's and with the entire personality chart, I see
the ways we are different and I do not worry about it.
4) Increasing tolerance and understanding of others: When I have a
personality chart on someone, it helps me get to know them quicker and I
can relate to them easier. It helps me understand their motives and
perceptions and values. With their traits known, I can cut through the
garbage and begin to see people for who they really are. I can think, feel
and act more appropriately and lovingly toward them. If we become

friends, knowing the chart becomes less important of course, but it is a
place to start. It helps me to have a system.
Personality assessment:
Projective Test - elicits an individuals response to abstract stimuli
Behavioral Measures - personality assessments that involve observing an
individuals behavior in a controlled situation
Self-Report Questionnaire - assessment involving an individuals responses to
questions
Myers-Briggs Type Indicator (MBTI) - instrument measuring Jungs theory of
individual differences.
Interview method
Case history method
Observation method
ATTITUDE
INTRODCTION
Attitude are learned Feelings and beliefs of an Individual or groups of

people
Attitude is mental state of readiness,learned and organised through

experience,exerting a specific influence on persons response to people,
object and situations with which it is related.
DEFINITION
Attitudes
Persistent tendency to feel and behave in a particular way towards

some object
, A complex mental state involving beliefs and feelings and

values and dispositions to act in certain ways.
Attitude is defined as a learned predisposition to respond

in a consistently favorable or unfavorable manner with
respect to a given object.
Attitude is very complex cognitive process just like

personality of an individual.
POSITIVE ATTITUDE :- Positive mental attitude is a psychological
term which describes a mental phenomenon in which the central

idea is that one can increase achievement through optimistic
thought processes.
NEGATIVE ATTITUDE :-A negative attitude is characterized by a
great disdain for everything. Someone who constantly points out
the negative in everything.
Feature of Attitudes
Changes with time & situation
Related to feelings & beliefs of people
Effects ones behaviour positively or negatively
Affect perception
Learned through experiences
May be unconsciously held
Nature of attitude
ASPECTS OF VALENCE-the degree of favourableness or

unfavourableness toward the event
ASPECTS OF MULTIPLEXITY-number of element constituting the
attitude
RELATION TO NEED ASPECT-vary in relation to needs they serve
CENTRALITY ASPECT-importance of attitude object to someone
Types of attitude
Job Satisfaction
A collection of positive and or negative feelings that an individual
holds toward his or her job.
Job Involvement
Identifying with the job, actively participating in it, and
considering performance important to self-worth.
Organizational Commitment
Identifying with a particular organization and its goals, and
wishing to maintain membership in the organization.
Components of attitude
Attitudes structure can be described in terms of three components.
Affective component: this involves a persons feelings / emotions about

the attitude object. For example: I am scared of spiders.
Behavioral (or cognitive) component: the way the attitude we have

influences how we act or behave. For example: I will avoid spiders and
scream if I see one.
Cognitive component: this involves a persons belief / knowledge about

an attitude object. For example: I believe spiders are dangerous.
ABC MODEL OF ATTITUDE
ABC,the three letters stands for affect, behaviour & cognition.
Emphasizes the inter relationship among knowing, feeling &

doing.
Relative importance of component depends upon level of

motivation.
ATTITUDE MODEL:
FUNCTIONS OF ATTITUDE
The Adjustment Function : Attitudes often help people to adjust to their work environment.
Ego-Defensive Function : Attitudes help people to retain their dignity and self- image.
The Value-Expressive Function : Attitudes provide individuals with a basis for expressing
their values.
The Knowledge Function : Attitudes provide standards and frames of reference that allow
people to understand and perceive the world around him.
FORMATION OF ATTITUDE
Experience with Object : Attitude can develop from a personally rewarding or punishing
experience with a object.
Classical Conditioning :It involves involuntary responses and is acquired through the
pairing of two stimuli.
Operant Conditioning : It is based on the Law of Effect and involves voluntary
responses ,Behaviors.
Vicarious Learning : Formation of attitude by observing behaviour of others and
consequences of that behaviour.
Family and Peer Groups : A person may learn attitudes through imitation of parents.
Neighbourhood : Involves being told what attitudes to have by parents, schools,
community organizations, religious doctrine, friends, etc.
Economic Status : Our Economical and occupational positions also contribute to attitude
formation.
Mass Communication : Television,Radio,Newspaper and magazine feed their audiences
large quantities of information.
THEORIES OF ATTITUDE FORMATION
Coginitive Consistency Theories

Balance Theory
Congruity Theory
Social Judgement Theory
Balance theory
BALANCE THEORY- BY HEIDER
The theory is concerned with consistency in the judgement of people & issues that are
linked by some form of relationship
People seek balance in their cognitive structure & attitude change comes when system
is not balanced
BALANCED STATE- in which everything fits together harmoniously
Congruity theory
Congruity is a stable state & incongruity is unstable one.
Focus on changes in the evaluation of source & concept linked by associative or

dissociative assertion
Change in attitude to resolve incongruity
Social judgement theory
Person initial attitude is point of reference on which he evaluates other opinions
Attitude of acceptance- favourable opinions encompasses objectionable opinions
Attitude of rejection- objectionable opinion encompasses acceptable opinion
METHODS TO BRING ATTITUDE CHANGE
Providing Information
Use of Fear
Resolving Discrepancies
Influence of Friends and Peers
Communication
Society
BARRIERS TO ATTITUDE CHANGE
PRIOR COMMITMENTS
STRONG COMMITMENT
PUBLICLY EXPRESSED ATTITUDES
LOW CREDIBILITY
INSUFFICIENT INFORMATION
DEGREE OF FEAR
WAYS TO OVERCOME BARRIER
PROVIDING NEW INFORMATION
USE OF FEAR
RESOLVING DISCREPANCIES
INFLUENCE OF FRIENDS AND PEERS
THE CO-OPTING APPROACH
ORGANIZATIONAL COMMITMENT
DEFINITION
commitment is a force that binds an individual to a course of action of
relevance to one or more targets. Cohen (2003)
a state in which an employee identifies with a particular organisation and its
goals, and wishes to maintain membership in the organisation. Miller (2003
ORGANIZATIONAL COMMITMENT MODEL:
Meyer and Allen (1997, p 106) use the tri-dimensional model to conceptualise
organisational commitment in three dimensions namely, affective, continuance
and normative commitments. These dimensions describe the different ways of
organisational commitment development and the implications for employees
behaviour.A prominent theory in organizational commitment is the three-
component model (TCM). The model argues that organizational commitment

has three distinctive components:
1. Affective commitment is your emotional attachment to an organization. If
you have a high level of affective commitment, you enjoy your relationship
with the organization and are likely to stay. You stay because you want to
stay.
2. Continuance commitment is the degree with which you believe that
leaving the organization would be costly. If you have a high level of
continuance commitment, you will stay with an organization because you
feel that you must stay. For example, you may feel quitting your job may
lead to an unacceptable length of unemployment. On the other hand, you
may feel you will lose a certain degree of status if you leave a wellrespected organization such as a top law firm or research company.
3. Normative commitment is degree you feel obligated to the organization or
believe that staying is the right thing to do. Here, you believe you ought to
stay.

GUIDELINES TO ENHANCE OC:
STAGES TO DEVELOP OC:
O'Reilly then suggests three stages for development

commitments as follows:
of organizational
1. Compliance Stage: Compliance stage refers to employees admitting to the

influence of others and the benefit they can take from others in the form
of remuneration or promotion.
It complies
with the continuance
dimension
of organizational commitment.
2. Identification Stage: Through the identification stage, the
employees admit the influence to preserve a satisfying self-defining
relationship with the organization as it gives them identity. It complies with
the normative dimension of organizational commitment.
3. Internalization Stage: This last stage in developing organizational
commitment is established when the employees find that the values of the
organization is in line with their values. It complies with the affective dimension
of organizational commitment.
Dessler (1980) explains eight steps for creating and
organizational commitment in employees. They include:
developing

People-first values: It means the organization, from beginning, must hire
those people who have the organizations desired values. This selection can be
implemented through conducting different interviews.
Two-way communication: It insists that managers and employees should enjoy
a close communication which provides the employees with the opportunity
to freely express their opinions, and inspires non-biased and fair behavior;
though these measures are not enough and final, they are necessary to start
with.
3. Communion: It refers to the homogenization of employees based on the
values, goals, skills, and sifting those who are not homogeneous; it can be done
through forming small working teams; motivating employees by job rotation;
and applying a religious or ritual incentive.
4. Safety or security: Safety and security are in close relationship with
organizational commitment of the employees. Security has different
economic, social, affective, and psychological dimensions.
5. Transcendental meditation: It points that employees need some values to
believe in, and a sense of mission to be committed to.
6. Value-based hiring: It means not sheer emphasis on skills, but also
consideration of personal values in the process of hiring as the values and
experiences of the individual being consistent with the needs of the
organization.
7. Hard-side reward practicing: It means giving rewards such as gifts,
loans, and providing some facilities in due occasions, beside other soft types,
which motivate the employees.
8. Actualizing: Actualizing is the final step which is built on the above
seven steps that facilitate employees actualizing what they can be.
LEVELS OF COMITMENT
1. Higher level of commitment:
According
to Reichers (1985), high
level of organizational commitment implies a strong acceptance of the
organizations goals and values and the tendency to attempt to stay with the
organization.
2. Moderate level of commitment:

The moderate or partial level of
organizational commitment implies a rather reasonable acceptance of
organizational goals and values and the tendency to attempt to stay with the
organization.
3. Lower level of commitment: The low level of organizational commitment
implies the lack of acceptance of organizational goals and values, and the
reluctance to attempt to stay with the organization.
LEARNING
INTRODUCTION
Learning is the one of the important psychological process determine the human
behavior.
learning is the process of accumulation of knowledge, skills and attitudes. (KSA)
Learning may be through training, experience, reading, observation, discussions,

electronic media including internet, experimentation, facing the new challenges, travel
and exploration etc. hence training and development is more tools for learning.
Learning is not a one time activity or an annual, half yearly, quarterly or monthly
activity. Learning is a continues process
Learning is also an important source of motivation, Stimulation and job satisfaction
DEFINITION
Measurable and relatively permanent change in behavior through experience, instruction,
or study.
Chris Argyris, learning is "detection and correction of error" where an error means "any
mismatch between our intentions and what actually happens."
Morgan provides a definition of learning is a relatively settled Any change in behavior that
occur as a result of training or experience.
PRINCIPLES OF LEARNING
The principles of learning provide additional insight into what makes people learn
most effectively. The principles have been discovered, tested, and used in practical
situations.
Edward Thorndike has developed the first three laws and three more had been added
ever since.
Thorndikes First Three Laws
Law of readiness implies the degree of preparedness and eagerness to learn.
Law of exercise things that are most often repeated are best remembered.
Law of effect based on the emotional reaction and motivation of the student.
Learning is strengthened with pleasant or satisfying feeling while unpleasant feelings
tend to do otherwise.
The additional three laws

Law of primacy learning should be done correctly for the first time since it is
difficult to unlearn or change an incorrectly learned material.
Law of recency things that are most recently learned are often best remembered.
Law of intensity the more intense something is taught, the more likely it will be
retained.
NATURE AND IMPORTANCE OF LEARNING
Learning is the basic objective of all the training and development activities.
Learning may be defined as
the process of acquiring, assimilating, and internalizing cognitive, motor or

behavioral inputs for their effective and varied use when required, leading to
an enhanced capability for further self-monitored learning.
Learning can and should be a lifelong process.
We can learn from everything the mind perceives at any age.
Our brains build and strengthen neural pathways no matter where we are, and what
the subject or the context is.
LEARNING CYCLE
The learning cycle requires four kinds of abilities or learning contexts:
concrete experience learners are enabled and encouraged to become involved in

new experiences
reflective observation gives learners time to reflect on their learning
abstract conceptualisation learners must be able to form and process ideas and
integrate them into logical theories
active experimentation learners need to be able to use theories to solve problems

and test theories in new situations.
CLASSIFICATION OF LEARNED CAPABILITIES
The capabilities that human beings can learn are classified into five types:
Verbal information
Intellectual skills
Motor skills
Attitudes
Cognitive strategies
Verbal information refers to knowing the facts about a subject matter.
An important feature of verbal information is that it is reproduced by the learner in

the same way it was originally received by him
Intellectual skills are also known as procedural knowledge which is aimed at

addressing how aspects of learning of a phenomenon.
In this category, the capabilities of an individual can be customized to suit the

requirement of the situation.
Motor skills are the capabilities which necessitate the physical movement of
individuals or their body parts for learning and performance.
They may also involve co-ordination with the sensory organs and other limbs.
Attitudes are evaluative judgments by individuals about particular objects, people or

events, favorable or unfavorable, formed fundamentally on the basis of ones own
feelings, beliefs and practices.
Attitudes are learned and not innate, it is necessary to have a positive attitude to be
successful.
Attitudes are not visible unless they are expressed in the form of behavior.
Cognitive strategies can also be termed as strategic knowledge.
Cognitive strategies play a supervisory or coordinative role for the effective

development and use of other capabilities in the individual.
Cognitive strategies may involve creativity and algorithm to find solutions in an

unstructured situation for which readymade solutions are not known.
Learning behaviors Blooms Taxonomy
The cognitive domain:
The Cognitive Learning Domain is exhibited by a persons intellectual abilities.
Cognitive learning behaviors are characterized by observable and

unobservable skills such as comprehending information, organizing ideas, and
evaluation information and actions.
The affective domain
The Affective Learning Domain addresses a learners emotions towards

learning experiences.
A learners attitudes, interest, attention, awareness, and values are

demonstrated by affective behaviors.
The psychomotor domain
The psychomotor domain refers to the use of basic motor skills, coordination
and physical movement.
This domain was not developed by Blooms research group but it was
developed by Simpson to support Blooms domain
THEORIES OF LEARNING
David Kolbs learning styles model and experiential learning theory (ELT)
Having developed the model over many years prior, David Kolb published his
learning styles model in 1984. The model gave rise to related terms such as
Kolbs experiential learning theory (ELT) and Kolbs learning styles inventory
(LSI).
ELT are today acknowledged by academics, teachers, managers and trainers

as fundamental concepts which help in understanding and explaining human
learning behavior, and towards helping others to learn.
The development stages that Kolb identified are:
1. Acquisition - birth to adolescence - development of basic abilities

and cognitive structures
2. Specialization - schooling, early work and personal experiences of

adulthood - the development of a particular specialized learning style
shaped by social, educational, and organizational socialization
3. Integration-mid-career through to later life - expression of nondominant learning style in work and personal life.
Whatever influences the choice of style, the learning style preference itself is
actually the product of two pairs of variables, or two separate choices that we
make, which Kolb presented as lines of axis, each with conflicting modes at
either end:
Concrete Experience - CE (feeling) ----- V ----- Abstract

Conceptualization - AC (thinking)
Active Experimentation - AE (doing) ----- V ----- Reflective

Observation - RO (watching)
David Kolbs learning styles model and experiential learning theory (ELT)
Our learning style is a product of these two choice decisions:
1. How to approach a task - i.e.., grasping experience - preferring to

(a) watch or (b) do, and
2. Our emotional response to the experience - i.e., transforming

experience - preferring to (a) think or (b) feel.
Its often easier to see the construction of Kolbs Learning styles in terms of a two-by-two
matrix. The diagram also highlights Kolbs technology for the four learning styles; diverging,
assimilating, converging and accommodating:
Below are brief descriptions of the four Kolb learning styles:
Diverging (Feeling And Watching - CE/RO)
Assimilating (Watching And Thinking - AC/RO)
This is for a concise, logical approach. Ideas and concepts are more
important than people. These people require good clear explanation
rather than practical opportunity. They excel at understanding wideranging information and organizing it a clear logical format.
Converging (Doing And Thinking - AC/AE)
These people are able to look at things from different perspectives,

sensitive, prefer to watch rather than do, tending to gather information
and use imagination to solve problems, best at viewing concrete
situations several different viewpoints.
People with a converging learning style can solve problems and will use
their learning to find solutions to practical issues. They prefer technical
tasks, and are less concerned with people and interpersonal aspects.
Accommodating (Doing And Feeling - CE/AE)
The Accommodating learning style is hands-on, and relies on intuition

rather than logic. These people use other peoples analysis, and prefer
to take a practical, experiential approach. They are attracted to new
challenges and experiences, and to carrying out plans.
Andragogy for adult learning
Andragogy, meaning adults teaching other adults, provides a different role for
the trainers.
Here the trainer serves more as a facilitator or catalyst for the learners
activities.
An advantage of andragogy is that learners motivation is enhanced through

greater responsibility for, and involvement in learning.
But andragogy methods are often situation-dependent and cannot be applied

to codify or standardize information for mass use.
Becoming an effective trainer involves understanding how adults learn best.
Adults have many responsibilities that they must balance against the
demands of learning.
Because of these responsibilities. adults have harriers against participating in

learning.
Some of these barriers include lack of time, money, confidence, interest,

information about opportunities to learn, scheduling problems, mid problems
with child care and transportation.
According to Malcolm Knowles, referred to as the father of adult education,

andragogy is an emerging technology for adult learning.
Facilitation Theory
Facilitation theory or humanistic theory was advocated by Carl Rogers.
Carl Rogers is best known as an American psychologist and has made

significant contributions to the field of adult education.
Rogers maintained that all human beings have a natural desire to learn.
He defined two categories of learning:
Meaningless or cognitive learning.
Experiential applied knowledge which addresses the needs and wants

of the learner
According to Rogers, the role of the teacher is to facilitate experiential learning

by
Setting a positive climate for learning.
Clarifying the purposes to the learner.
Organizing and making available learning resources
Balancing intellectual & emotional components of learning
According to this theory, facilitative teachers are:
Less protective of their constructs and beliefs than other teachers.
More able to listen to learners, especially to their feelings.
Inclined to pay as much attention to their relationship with learners as

to the content of the course.
Apt to accept feedback, both positive and negative, and to use it as

constructive insight into themselves and their behavior.
Synergogy For Team Learning
Synergogy is a systematic approach to learning in which the members of small

teams learn from one another through structured interactions and nondirective intervention.
Challenge and stimulation are created through social situation under which
real as well as felt needs for learning can be satisfied.
The instructor or learning administrator provides educational materials from

which knowledge or insights can be acquired and create designs-instruction for
team action-that stimulate learning.
Synergogy differs from other learner-centered methodologies in three basic

principles that promote educational success.
First, synergogy offers meaningful direction to learners in the form of

learning designs and learning instruments.
Secondly, synergogy relies on teamwork rather than individual or

group work to enhance learners involvement and participation.
The third principle essential to synergogic method is that of synergythe concept that under certain conditions the whole can be more than
the sum of its parts.
Transformative Learning
Transformative learning is basically the kind of learning a person engages in as

he/she makes meaning of his/her life.
It has become a very popular topic in adult education because it does not just
involve classroom learning it involves learning about ones lite.
One of the best-known experts in this area is a scholar named Jack Mezirow,
who began researching on this topic in the 1970s.
He came up with a set of phases that people go through when they experience
transformation and those steps are:
Experiencing a disorienting dilemma
Self examination and critical assessment of assumptions
Recognizing that others have gone through a similar process
Exploring options
Formulating a plan of action
Reintegration.
PERCEPTION
Perception is process through which short-run changes are made in behavior in response to
inputs from work environment. 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 ii) characteristics of the perceiving person. The last category is extremely
important in determining the way incoming stimuli will be interpreted and subsequent
response. An individuals
motives, previous learning and personality will
influence perception. Managers must take such consideration into account in predicting the
way their actions and order will be perceived by others.
Stephen P. Robins has defined perception as Perception may be defined as a process

by which individuals organize and interpret their sensory impressions in order to give
meaning to their environment.
B. Von Haller Gilmer defined,
Perception is the process of becoming aware of situations, of adding meaningful

associations to sensations.
Five Stages in Perceptual Process:

Stage I: Observation Phase It depicts the environmental stimuli being
observed
by the fives senses of the perceived
Stage II: 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 III: Organizing 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
perceivers
IV:
Interpretation
Stage: This
stage
is governed
by
the

assumptions of people and events and attributions about causes of behavior
and feelings.
Stage V: 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.
Factors influencing perception:
The perceivers personal characteristicsinterests, biases and expectations
The targets characteristicsdistinctiveness, contrast, and similarity)
The situation (context) factorsplace, time, locationdraw attention or

distract from the target
Nature of Perception:
1.
2.
3.
4.
5.
6.
Sensory experience.
Subjective
Filter
Unique interpretation.
Seeing things differently
Basis of human behaviour.
Perception is a psychological process the way one perceives the

environment affecting his behaviour.
Perception being an intellectual process becomes subjective.
Different people perceive the same situation and environment differently.
Reality perceived by different people will be different.
Peoples actions, thoughts, emotions are triggered by the perception of
their surroundings.
Importance of perception:
Through perception a person select the data from the environment and
organise it and interpret it.
It is a psychological process that manner in which a person perceive the
environment which effect his or her behaviour.
Perception is a subjective process and different people may perceive the
same thing in different way.
BEHAVIOUR (e.g) over such as rushing off or covert such as an attitude)
PERCEPTUAL SELECTIVITY
External Attention Factors: Various external and internal attention factors affect
perceptual selectivity. The external factors consist of outside environmental influences
such as intensity, size, contrast, repetition, motion and novelty and familiarity.
External Environment
Sensual
Stimulation
CONFRONTATION
of specific
stimulus (eg supervisor or new procedure)
Physical environment
FEED BACK for clarification (eg. Kinesthetic or psychological) Office
Factory floor
INTERPRETATION
Research laboratory
REGISTRATION
Of the stimulus (eg.
Motivation, learning & productivity)
Storemechanisms)
Of stimulus (eg. Sensory and newral
Climate etc.
Sociocultural
Environment
Management styles
Values
Discrimination etc
Fig. 10 The Sub-Processes of perception

Sub-processes of perception

1. Intensity: The intensity principle of attention states that the more intense the external
stimulus, the more likely it is to be perceived. A loud noise, or bright light will be noticed more
than a soft sound or dim light.
Advertisers use intensity to gain the consumers attention. Examples include bright
packaging and television commercials that are slightly louder than the regular programme.
2. Size: Closely related to intensity is the principle of size. It says that the larger the
object, the more likely it will be perceived. The maintenance engineering staff may pay more
attention to a big machine than to a smaller one, even though the smaller one costs as much
and is as important to the operation. In advertising, a full page spread is more attentiongetting than a few lines in the classified section.
3.Contrast: The contrast principle states that external stimuli which stand out against
background or which are not what people are expecting will receive their attention. The
following figure 11 demonstrates this perceptual principle.
4. Repetition: The repetition principle states that a repeated external stimulus is more
attention-getting than a single one. Thus, a worker will generally hear better when
directions for a dull task are given more than once. Advertisers trying to create a unique
image for a product which is undifferentiated from its competitors such medicine, soap and
deodorant rely heavily on repetitious advertising.
5. Motion: The motion principle says that people will pay more attention to moving
objects in their field of vision than they will to stationary objects. Workers will notice materials
moving by them on a conveyor belt, but they may fail to give proper attention to the
maintenance needs of the stationary machine next to them.
6. Novelty and Familiarity: The novelty and familiarity principle states that either a
novel or a familiar external situation can serve as an attention getter. New objects or events
in a familiar setting or familiar objects or events in a new setting will draw the attention of the
perceiver. Job rotation is an example of this principle. Changing workers jobs from time to
time will tend to increase the attention they give to the task.
Internal set factors:
The concept of set is an important cognition in selectivity. It can be thought of as an internal form of
attention-getting and is based largely on the individuals complex psychological make up. People will select out
stimuli or situations from the environment that appeal to and are compatible with their learning, motivation, and
personality. A brief discussion of these factors will help in the understanding of perception.
1. Learning and Perception: Although inter-related with motivation and personality,

learning may play the single biggest role in developing perceptual set. Read the sentence
in the triangle below. (Fig.12)
TURN OFF THE THE ENGINE
It may take several seconds to realise there is something wrong. Because of familiarity with the sentence from
prior learning, the person is perceptually set to read Turn off the engine. This illustration shows that learning
affects set by creating an expectancy to perceive in a certain manner. Such expectancies are a vital element in the
cognitive explanations of behaviour. This view states simply that people see and hear what they expect to see and
hear. This can be further demonstrated by pronouncing the following words very slowly.
M-A-C-T-A-V-I-S-H
M-A-C-D-O-N-A-L-D
M-A-C-B-E-R-T-H
M-A-C-H-I-N-E-R-Y
If the last word was pronounced Mac-Hinery instead of Machinery, the reader was
caught in a verbal response set.
2. Perceptual set in the workplace: Perceptual set has many direct implications for organizational behaviour. In
organizational life, some employees have learned to perceive the world around them in the same way. For
example, the single sentence I cannot recommend this young man too highly was reproduced and distributed to
several managers in the same organization. Although this statement is ambiguous and unclear, without exception
all the managers interpreted this to be a positive recommendation. They had all learned to perceive this statement
the same way positive and favourable.
3. Motivation and Perception:
Besides the learned aspects of perceptual set,
motivation also has a vital impact on perceptual selectivity. The primary motives of sex
and hunger could be used to demonstrate the role that motivation plays in perception. In
traditional Amercian culture, the sex drive has been largely suppressed, with the result being an
unfulfilled need for sex. Accordingly, any mention of sex or a visual stimulus dealing with sex is very
attention-getting to the average American. The secondary motives also play an important role
in developing perceptual set. A person who has a relatively high need for power, affiliation
or achievement will be more attentive to the relevant situational variables.
4. Personality and Perception: Closely related to learning and motivation is the
personality of the perceiving person, which affects what is attended to in the confronting
situation. For example,. Senior-level executives often complain that the new young hot
shots have trouble making the tough personnel decisions concerning terminating or
reassigning people and paying attention to details and paperwork. The young managers,
in turn, complain about the old guard resisting change and using rules and paper works
as ends in themselves. The Senior and Junior-level executives personalities largely
explain these perceptions. There is also a generation gap that may contribute to differing
perceptions. An example can be found in the perceptions of modern movies. Older people
tend either to be disgusted by or to not understand some of the popular movies of recent

years. Those in the 35-45 age group tend to perceive these movies as naughty but neat.
Young, college-age people tend to perceive them as Where its at.
PERCEPTUAL PROCESS
Process of Perception
1. Stimuli: perception process cannot commence in the absence of stimuli. Stimuli is in the
form of people, objects, events, etc. events in a given situation can be termed as inputs or
stimuli.
2. Receiving stimuli: perception starts with the receipt of stimuli. Stimuli is received
through the experience such as hearing, smelling, touching, tasting. Thus receiving stimuli
is a psychological aspect of perception process.

3. Selection: an individual confronts with several things, in a situation. But everything is not
necessary. Hence selectivity occurs. Individual then prefer to select the stimuli that are
relevant to him. Thus the process of choosing certain stimuli for further processing is
known as selection.
Selection depends on the
Nature of the stimulus

Expectations
Motives
Selection process involves
Selective Exposure: Individual seek out messages which:
-Are pleasant
-They can sympathize

-Reassure them of good purchases
Selective Attention: -Heightened awareness when stimuli meet their needs
-Consumers prefer different messages and medium
Perceptual Defense: -Screening out of stimuli which are threatening
Perceptual Blocking: Consumers avoid being bombarded by:
-Tuning out
-TiVo
4. Organization: it means putting the inputs to form into a meaningful whole. This process
is also called as gestalt process. There are many ways the people organize inputs.
Figure and ground: -People tend to organize perceptions into figure-and-ground
relationships.
-The ground is usually hazy.
-Marketers usually design so the figure is the noticed stimuli.

Grouping: -People group stimuli to form a unified impression or concept.
-Grouping helps memory and recall.

Closure: -People have a need for closure and organize perceptions to form a
complete picture.
-Will often fill in missing pieces
-Incomplete messages remembered more than complete

5. Interpretation: the perceiver has to interpret the inputs. Without interpretation
information the situation will be confusing. Manager interprets the situation in terms of his
assumptions.
Factor influencing perception:
Laws of Perception:
There are five laws of perception which are as follows:
1. Law of proximity: Items that are located close together are usually perceived as a single
group. The items in that group are considered to be distinct and different from items
located further away.
2.
Law
of
similarity:
Gestalt
theory states that things which share visual characteristics such as shape, size, color,
texture, or value will be seen as belonging together in the viewers mind
3. Law of closure: Closure describes our tendency to look for unity in objects and to see
lines as a single unit. Therefore, given the mere suggestion of an object, we will tend to fill
in the details. For example, it is likely that you perceive the series of disconnected lines

represented below as a square, and the series of disconnected dots as forming a single
circle
4. Law of continuation: Describes our tendency to perceive objects that seem to have a
relationship to each other as being continuous.
5. Law of simplicity: This law states that when a pattern is viewed it is broken down and
perceived as the simplest form of an object. For example the picture on the left is
perceived as a triangle and a square instead of a compilation of complex shapes
IMPRESSION MANAGEMENT
People in organizations are always judging each other. An Impression towards a work
shows the attitude and behaviour of a person. Managers must appraise their
subordinates performance. These judgements have important consequences for the
organizations. The applications of perceptions in organizations:
1. Employee Interview:- A major input into who is hired and who is rejected in any
organization is the employment interview. Interviewers generally draw early impressions
that become very quickly entrenched. The employment interview is an important input
into the hiring decision and a manager must recognize that perceptual factors influence
who is hired.
2. Performance Evaluation:- An employees performance appraisal very much depends on
the perceptual process. The performance appraisal represents an assessment of an
employees work. The evaluator forms a general impression of an employees work. What
the evaluator perceives to be good or bad employee characteristics will significantly
influence the appraisal outcome.
3. Perception Expectations:- A managers expectations of an individual affect both the
managers behaviour towards the individual and the individuals response. This is
particularly relevant when we consider performance expectations on the job.
4. Employee Loyality:- Another important judgement that managers make about
employees is wheather they are loyal to the organization. The assessment of an
employees loyality or commitment is highly judgemental. What is perceived as loyality by
one may be seen as excessive by another.
COMMON PERCEPTUAL DISTORTIONS

Common perceptual distortions include:
Stereotypes or prototypes.
Halo effects.
Selective perception.
Projection.
Contrast effects.
Self-fulfilling prophecy.
Stereotypes or prototypes.
Combines information based on the category or class to which a person,
situation, or object belongs.
Strong impact at the organization stage.
Individual differences are obscured.
Halo effects.
Occur when one attribute of a person or situation is used to develop an
overall impression of the individual or situation.
Likely to occur in the organization stage.
Individual differences are obscured.
Important in the performance appraisal process.
Selective perception.
The tendency to single out those aspects of a situation, person, or object
that are consistent with ones needs, values, or attitudes.
Strongest impact is at the attention stage.
Perception checking with other persons can help counter the adverse
impact of selective perception.
Projection.
The assignment of ones personal attributes to other individuals.
Especially likely to occur in interpretation stage.
Projection can be controlled through a high degree of self-awareness and
empathy.
Contrast effects.
Occur when an individual is compared to other people on the same
characteristics on which the others rank higher or lower.
Self-fulfilling prophecy.
The tendency to create or find in another situation or individual that which
one expected to find.
Also called the Pygmalion effect.
Can have either positive or negative outcomes.
Managers should adopt positive and optimistic approaches to people at
work.
Impression management.
A persons systematic attempt to behave in ways that create and maintain

desired impressions in others eyes.
Successful managers:
Use impression management to enhance their own images.
Are sensitive to other peoples use of impression management.
Distortion management.

Managers should:
Balance automatic and controlled information processing at the
attention and selection stage.
Broaden their schemas at the organizing stage.
Be attuned to attributions at the interpretation stage.
ATTRIBUTION THEORY
Attribution theory aids in perceptual interpretation by focusing on how people
attempt to:
Understand the causes of a certain event.
Assess responsibility for the outcomes of the event.
Evaluate the personal qualities of the people involved in the event.
Internal versus external attributions of causes of behavior.
Internal causes are under the individuals control.
External causes are within the persons environment.
Factors influencing internal and external attributions.
Distinctiveness consistency of a persons behavior across situations.
Consensus likelihood of others responding in a similar way.
Consistency whether an individual responds the same way across time.
Fundamental attribution error.
Applies to the evaluation of someones else behavior.
Attributing success to the influence of situational factors.
Attributing failure to the influence of personal factors.
Self-serving bias.
Applies to the evaluation of our own behavior.
Attributing success to the influence of personal factors.
Attributing failure to the influence of situational factors.
Attributions across cultures.
The fundamental attribution error and self-serving bias operate differently
in different cultures.
ELEMENTS OF ATTRIBUTION THEORY
MOTIVATION
Meaning : Motivation is a basic psychological process, Technically, the term motivation
can be traced to the Latin word movere, which means to move. This meaning is
evident in the following comprehensive definition: A motive is an inner state that
energizes, activates or moves (hence) motivation and that directs or channels behaviour
towards goals. The key to understanding motivation lies in the meaning of, and
relationship between, needs, drives, and goals.
THE BASIC MOTIVATION PROCESS
NEEDS ------------------------ DRIVES -------------------------------- GOALS (Deprivation)

(Deprivation with
(Reduction of
Direction)
drives
1. Needs:
The best one-ward definition of a need is deficiency. For example, a need
exists when a cell in the body is deprived of food and water.
2. Drives:
Drives or motives are set up to alleviate needs. A drive can simply be
defined as a deficiency with direction. The examples of the needs for food and water are
translated into the hunger and thirst drives, and the need for friends becomes a drive for
affiliation.
3. Goals:
At the end of the motivation cycle is the goal. A goal in the motivation cycle
can be defined as anything which will alleviate a need and reduce a drive. Food, Water
and Friends are the goals in our examples.
TYPES OF MOTIVES

Primary Motives: Hunger, thirst, sleep, avoidance of pain, sex etc, are classified as
primary motives.
General Motives: The motives of competence, curiosity, manipulation activity, and
affection are called general motives.
Secondary Motives:
Power,
important secondary motives.
achievement,
affiliation,
security
and
status
are
FINANCIAL AND NON FINANCIAL REWARDS
FINANCIAL REWARDS:
1. Basic pay
2. Dearness Allowance (DA)
3. House Rent Allowance (HRA)
4. City Compensatory Allowance (CCA)
5. Overtime Allowance (OT)
6. Leave Travel Concession (LTC)
7. Incentive Plans (Piece rates, Bonus or Profit sharing)
NON FINANCIAL REWARDS:
The following table summaries some of the major categories of non financial rewards.
Even though these are considered non financial, they may still cost the organization.
THEORIES OF MOTIVATION
I. THE CONTENT THEORIES OF WORK MOTIVATION
The content theories of work motivation attempt to determine what it is that motivates
people at work. They are concerned with the types of incentives or goals that people
strive to attain in order to be satisfied and perform well. Now, let us discuss four
important content theories of motivation in the following section.
1. Maslows Hierarchy of Needs: Abraham Maslow thought that a persons

motivational needs can be arranged in a hierarchical manner. In essence, he believed that
once a given level of need is satisfied, it no longer serves to motivate. The next higher
- actualization
level of need has to be Self
activated
in order to motivate the individual Maslow identified five
levels in his need hierarchy.
Esteem Needs
Love Needs
Safety Needs
Physiological Needs
1. Physiological needs: The needs of hunger, thirst, sleep and sex are physiological
needs. According to the theory, once these basic needs are satisfied, they no longer
motivate.
2. Safety needs: Maslow stressed emotional as well as physical safety. The whole
organization may become a safety seeking mechanism. For example, membership in a
trade union is a safety need. Once these safety needs are satisfied, they no longer
motivate.
3. Love needs:
Maslows use of the word love has many misleading connotations, such
as sex, which is actually a physiological need. Perhaps a more appropriate word
describing this level would be belongingness or affiliation. Membership in formal and
informal work groups is a belongingness need.
4. Esteem needs: The esteem level represents the higher needs of humans. The needs
for power, achievement, and status can be considered to be part of this level.
5. Needs for self actualization: This level represents the culmination of all the
lower, intermediate, and higher needs of humans. People, who have become self
actualized, are self fulfilled and have realized all their potential. Self actualization is the
persons motivation to transform perception of self into reality.
2.Herzbergs Two Factor Theory

According to Herzberg, there are satisfiers and dis-satisfiers in a job for the individuals. Herzberg labeled
satisfiers motivators, and he called the dissatisfiers hygiene factors. Taken together, they became known as
Herzbergs two factor theory of motivation.
Herzbergs theory is closely related to Maslows need hierarchy. The hygiene factors are preventive and
environmental in nature, and they are roughly equivalent to Maslows lower level needs.
Hygiene Factors
Motivators

Company
policy
Administration
and
Achievement
Recognition
Technical supervision
Work itself
Salary
Responsibility
Inter-personal relations
Advancement
Working conditions
These hygiene factors prevent dissatisfaction, but they do not lead to satisfaction. By
themselves, the hygiene factors do not motivate. Only the motivators motivate humans
on the job. They are roughly equivalent to Maslows higher level needs. According to the
Herzberg theory, an individual must have a job with a challenging content in order to be
truly motivated.
3.Alderfers ERG Theory

The most recent extension of the Herzberg and, especially, the Maslow content theories of
work motivation come from the work of Clayton Alderfer. He formulated a need category
model that was more in line with the existing empirical evidence. Similar to Maslow and
Herzberg, he does feel that there is value in categorizing needs and that here is basic
distinction between lower order needs and higher order needs. Alderfer identified three
groups of core needs; Existence, Relatedness, and Growth (hence ERG theory). The
existence needs are concerned with survival (physiological Well-being). The relatedness
needs stress the importance of interpersonal, social relationships. The growth needs are
concerned with the individuals intrinsic desire for personal development.
Fig 16. Shows how these groups of needs are related to the Maslow and Herzberg
categories. Obviously, they are very close but the ERG needs do not have strict lines of
democration.
Herzbergs
Two factors
MOTIVATORS
SELF ACTUALIZATION
Maslows
ESTEEM
Hierarchy of Needs
LOVE
GROWTH
Alderfers
ERG Needs
RELATEDNESS
HYGIENE FACTORS
SAFETY
PHYSIOLOGICAL
EXISTENCE
Alderfer is suggesting more of a continuous of needs than hierarchical levels or two factors
of prepotency needs. Unlike Maslow and Herzberg, he does not contend that a lower level
need has to be fulfilled before a higher level need is motivating. For example, under ERG
theory the persons background or cultural environment may dictate that the relatedness
needs will take precedence cover unfulfilled existence needs and that the more the growth
needs are satisfied, the more they will increase in intensity.
4. McGregors Theory X and Theory Y
Douglas McGregor propounded two contrasting theories of human behavior which he
called theory X and theory Y.
Theory X: Theory X indicates the traditional approach to managerial motivation and
control. It represents old stereotyped and authoritarian management style of motivation.
It suggests that threats of punishment and strict control are the ways to manage people.
Theory Y: Theory Y indicates that if people are properly motivated, they could really be
creative. The main task of management is to unleash the potential in the employees. An
employee who is properly motivated can achieve his goals by directing his own efforts
and, thus, he can help in accomplishing the organizational goals. This theory emphasizes
the satisfaction of need of the workers. It does not rely heavily on the use of authority as
an instrument of command and control. It suggests that decentralization and delegation,
job enlargement, participation and consultative management style are the ways to
motivate people.
Fig. 17 Comparison of Theory X and Theory Y
Theory X
Based on the assumption that

people are basically lazy and
so shirk work
Theory Y
Based on the assumption that
people like work as children
like play

People do not take initiative.
They like to be directed.
People like to take initiative.

They seek self direction.
People avoid responsibility

whenever possible
People assume responsibility

gladly
if
conditions
are
favourable.
For getting things done,

people must be supervised
strictly.
People do not require close

and strict supervision for
properly
performing
their
jobs.
Autocratic style of leadership

is likely to be more effective
Democratic or participative
style of leadership is likely to
be more effective.
Applicable
to
illiterate,
unskilled and lower level
workers
Applicable to educated and

skilled
employees
who
occupy high positions in the
organizations.
Believes in mental sickness

and so negative motivation of
employees
Believes in mental health and

so positive and intrinsic
motivation of employees
Appraisal of McGregors contribution

Douglas McGregors Theory X and Theory Y represent extremes to draw the fencing within
which the organizational man is seen to behave. No man would belong completely to
either Theory X or Theory Y. He possesses the traits of both in varying degrees under
different situations. Thus, these theories are important tools in understanding the
behaviour of human beings and in designing the incentive schemes to motivate the
employees. Neither of the two theories is fully applicable in all the situations and to all
types of human beings. Therefore, the management should use an amalgamation of both
the theories to motivate the different kinds of employees at different levels in the
organization.
II.
THE PROCESS THEORIES OF WORK MOTIVATION
The content models attempted to identify what motivates people at work (for example,
self actualization, responsibility, and growth); they tried to specify correlates of
motivated behaviour. The process theories on the other hand, are more concerned with
the cognitive concepts that go into motivation or effort and, more important, with the way
they relate to one another. Now, let us discuss two important process theories of
motivation.

1. Vrooms Expectancy theory of Motivation:
The following Fig. 18 briefly summarises the vroom model. As shown, the model is built around the concepts of
Valence, Instrumentality and Expectancy and is commonly called the VIE theory.
Expectancy
INSTRUMENTALITIES
First level Outcome
Outcome 1
Outcome 1a
MOTIVATIONAL
Force
F = Valence X Expectancy
Outcome 1b
Outcome 2
Outcome 2a
Outcome 2b
Outcome 2c
Fig.18:The Vroom Expectancy, or VIE theory of work motivation
By Valence, Vroom means the strength of an individuals preference for a particular

outcome. In order for the valence to be positive, the person must prefer attaining the
outcome to not attaining it. A Valence of Zero occurs when the individual is indifferent
towards the outcome; the valence is negative when the individual prefers not attaining the
outcome to attaining it.
According to Vroom, there are tow levels of outcome namely first level outcome and
second level outcome. The first level outcome is instrumental in obtaining the second
level outcome. Therefore, the first level outcome is called instrumentality input in
valence. For ex, assume past performance is the first level outcome and promotion is
the second level outcome. Past performance is instrumental in obtaining promotion.
Therefore, past performance (first level outcome) is known as instrumentality input in
our example.
Another major variable in the Vroom motivational process is expectancy. Expectancy is
the probability that a particular action or effort will lead to a particular first level
outcome. Expectancy is different from instrumentality input in valence. Expectancy
relates efforts to first level outcome whereas instrumentality relates first level outcome
to second level outcome.

2.The Porter Lawler Model:
Porter and Lawler start with the premise that motivation (effort or force) does not equal
satisfaction and/or performance.
Motivation, satisfaction, and performance are all
separate variables and relate in ways different from what was traditionally assumed. The
following Figure 19 depicts the porter and Lawler model.
Intrinsic Rewards
Efforts
Satisfaction
Performance
Extrinsic Rewards
Effort:
task.
Effort is defined as the amount of energy exerted by an employee on a given
Performance:
Effort leads to performance. But both may not be equal.
Rewards and Satisfaction:

According to Vroom, there are two types of rewards, viz.,
intrinsic rewards and extrinsic rewards. Intrinsic rewards refer to a sense of self
accomplishment and self actualization. Extrinsic rewards include working conditions and
status. Both intrinsic and extrinsic rewards lead to satisfaction.
III. CONTEMPORARY THEORIES OF MOTIVATION
1. THEORY Z
International attention is being focused on the outstanding performance of the Japanese

economy and the success of management practices being adopted by Japanese firms.
Interest in Japanese management has rapidly increased in America and other countries.
William Ouchi made a comparative study of American and Japanese management
practices. He came to the conclusion that many of the Japanese management practices
can be adapted in American context. He suggested the adoption of Theory Z which
represents an integration of American and Japanese management practices.
Japanese Management:
principles.
Japanese Management is characterized by the following
1. Emphasis on the group rather than the individual

2. Emphasis on human relations rather than functional relationships.
3. Role of top management as generalists and facilitators rather than as decision
makers.

Table 6 : Comparison of Japanese and American Management styles
Japanese Organizations
American Organizations
Lifetime Employment
Short term Employment
Slow Advancement
Rapid Advancement
Collective Decision Making
Personal Decision Making
Group Responsibilities
Individual Responsibilities
Holistic concern for Employees
Segmented
Employees
General career
Specialization in Career
concern
for
Features of Theory Z
1.
2.
3.
4.
5.
Strong bond between the company and the employees

Employees participation
Mutual trust
Integrated organization Team work
Human Resources Development
Appraisal of theory Z
Theory Z may suffer from the following drawbacks:
1. Provision of life time employment to employees to develop a strong bond between the
organizations and its employees seems to be misplaced. An entrepreneur may not like to
keep a less productive employee. Moreover, an employee may leave the organization, if he
gets higher emoluments and other benefits somewhere else. Thus, theory Z fails to motivate
those having higher level needs.
2. Theory Z emphasizes a common culture in the organization. But people have different
backgrounds; they differ in attitudes, values, habits, languages, religion, etc. Thus, it may not
be possible to develop a common culture in the organization.
3. Involvement of workers through participation in decision making is very difficult. The

management may dislike this idea because of Theory X assumptions about people, or the
workers may be reluctant to participate in decision making because of fear of criticism and
lack of proper motivation.

4. Theory Z emphasizes organization without any structure. But in a large organization,the
absence of any structure may bring about chaos in the organization as nobody will know who
is responsible to whom.
2. EQUITY THEORY
Many employees are concerned not only with satisfying their own needs but also compare
what others receive. They feel satisfied or dissatisfied with comparative observations of
their friends, neighbours and colleagues. The equity theory was developed on this
hypothesis. Employees feel they are lacking with the comparison of others possessions.
This lacking tension motivates people to work hard to reach the levels of others. J. Stacy
Adams has propounded that this negative tension provides motivation to employees to
exert themselves. People are motivated by the inequity they note with others.
1.
Persons Outcomes
<
Persons Inputs
Others Outcomes
Others Inputs
Inequity due to being under rewarded
2.
Persons Outcomes
Persons Inputs
Others Outcomes
Others Inputs
Equity
3.
Persons Outcomes
>
Persons Inputs
Others Outcomes
Others Inputs
Inequity due to being over rewarded
Inputs refer to education, seniority, work experience, capacity to contribute, commitment, efforts and job
performance. Outcomes refer to direct pay, bonus, awards, rewards, fringe benefits, recognition and socio
psychological satisfaction. The equity theory is a cognitive based motivation theory. Perception plays a great role
in motivating a person.
If a person is getting less than another, inequity exists because of being under rewarded.
He tries to improve himself so that he can reach the level of others. In case both the
ratios are equal, equity exists and the person is at a constant level. He is not motivated
on this ground. On the other hand, if a persons outcome as compared to his input is more
than others in terms of his inputs, the person is over rewarded and tries hard to remain
higher than those of others.
3. THE ACHIEVEMENT MOTIVATION
Characteristics of high achievers

David C McClelland, a Harvard psychologist is most closely associated with study of the
achievement motive. Beginning in 1947, McClelland thoroughly investigated and wrote

about all aspects of n Ach (achievement). Out of this extensive research has emerged a
clear profile of the characteristics of the high achiever. Very simply, the achievement
motive can be expressed as a desire to perform in terms of a standard of excellence or to
be successful in competitive situations. The specific characteristics of a high achiever can
be summarized as follows:
1. Moderate risk taking:
Low achievers take either a high or low risk, and high
achievers take a moderate risk.
2. Need for immediate feedback: People with high n Ach prefer activities which
provide immediate and precise feedback information on how they are progressing towards
a goal. High achievers tend to be more satisfied in jobs or careers, such as sales or certain
managerial positions, in which they are frequently evaluated by specific performance
criteria. On the other end of the scale, high achievers tend to be frustrated in research
and development or teaching, where feedback on performance is very imprecise, vague.
3. Satisfaction with accomplishment perse: High achievers find accomplishing a task
intrinsically satisfying in and of itself or they do not expect or necessarily want the
accompanying material rewards. A good illustration of this characteristic involves money,
but not for the usual reasons of wanting money for its own sake or for the material
benefits that it can buy. Rather, high n Ach people look at money as a form of feedback or
measurement of how they are doing. Given the choice between a simple task with a good
payoff for accomplishment, and a more difficult task with a lesser payoff, other things
being equal, high achievers generally choose the latter.
4. Preoccupation with the tasks: Once high achievers select a goal, they tend to be
totally preoccupied with the task until it is successfully completed. They cannot stand to
leave a job half finished and are not satisfied with themselves until they have given their
maximum efforts. High achievers often strike others as being unfriendly and as loners.
They tend to be very realistic about their abilities and do not allow other people to get in
the way of their goal accomplishments. Obviously, with this type of approach, high
achievers do not always get along well with other people.
The four characteristics noted above have evolved out of McClellands basic research over
the years. More recently, Jay Hall and his colleagues have reported the results of a
comprehensive study that compared the managerial styles and methods of 16,000 high
medium low achieving managers. The following are some of their major finding.
1. Low n Ach mangers are pessimistic and have a basic distrust of the intent and competence
of their subordinates. High n Ach managers are optimistic and view their subordinates
favourably.
2. High n ach managers are concerned with aspects of the job that provide personal
fulfillment; they talk to their subordinates about these things and attempt to structure the
job so that their subordinates can receive such fulfillment. On the other hand, moderate
achievers are concerned mainly with status symbols, and low achievers with job security,
and both try to motivate their subordinates the same way.

3. High n Ach managers readily use participative methods with their subordinates, while
moderate and low n Ach managers do not tend to involve their subordinates in the
decision making process.
4. High n Ach managers tend to be very open in their interactions and communications with
others (both bosses and subordinates), while moderate achievers are preoccupied with
their own ideas and feelings and low achievers tend to avoid interacting and
communicating altogether.
5. High achievers show concern for both people and production, whereas moderate achievers
show high concern for production and low concern for people, and low achievers are
concerned mainly with self-preservation and do not seem to care about people or
production.
ABILITY
Ability
Ability is an individuals capacity to perform the various tasks in a job.
An individuals overall abilities are essentially made up of two sets of
factors: Intellectual and Physical
TYPES
Intellectual ability
Intellectual abilities is the capacity to do mental activities- thinking, reasoning, and

problem solving. It has seven dimensions.
Physical ability
Physical abilities is the capacity to do tasks demanding stamina, dexterity, strength and
similar characteristics. There are nine basic factors.
INTELECTUAL ABILITY
Intellectual abilities are abilities needed to perform mental activities like,

thinking, reasoning, problem solving etc.
Smart people generally earn more money & attain higher levels of education.
Tests such as SAT,CAT, GMAT etc. are designed to ascertain a persons general
intellectual abilities.
DIMENSIONS OF INTELECTUAL ABILITY
Number Aptitude: Ability to do speedy and accurate arithmetic.
Verbal Comprehension Ability to understand what is read or heard and the relationship of
words to each other.
Perceptual Speed : Ability to identify visual similarities & differences, quickly & accurately.
Inductive Reasoning: Ability to identify a logical sequence in a problem & then solve a
problem.
Deductive Reasoning: Ability to use logic & assess the implications of an argument.
Spatial Visualization: Ability to imagine how an object would look if its position in space
would change.
Memory: Ability to retain and recall past experiences.
General mental ability
Intelligence Dimensions are positively related.
For eg. If you score high on Verbal Comprehension you are more likely to score high on
Spatial Visualization.
WONDERLIC PERSONNEL TEST
The test was developed by Eldon Wonderlic.
It is a popular group intelligence test used to assess the aptitude of prospective

employees for learning and problem-solving in a range of occupations.
While intelligence is a big help in performing a job well, it doesnt make people happier or
more satisfied with their jobs.
The correlation between intelligence & job satisfaction is about Zero.
Employee Aptitude Survey Fact Sheet
The Employee Aptitude Survey (EAS) consists of 10 tests specifically designed to measure
cognitive, perceptual, and psychomotor abilities required for successful performance in a
wide variety of occupations. The tests are published separately and can be selected to
form custom batteries.
PHYSICAL ABILITY
The capacity to do tasks that demand stamina, dexterity, strength, and similar
characteristics.
BASIC PHYSICAL ABILITIES

Strength Factors:
Dynamic Strength: Ability to exert muscular force repeatedly or continuously over time.
Trunk Strength: Ability to exert muscular strength using the trunk muscle.
Static Strength: Ability to exert force against external objects.
Explosive Strength: Ability to expend a maximum amount of energy in one or a series of

explosive acts.
Flexibility factors:
Extent Flexibility: Ability to move the trunk and back muscles as far as possible.
Dynamic Flexibility: Ability to make rapid, repeated flexing movements.
Other Factors
Body Coordination: Ability to coordinate the simultaneous actions of different parts of the
body
Balance: Ability to maintain equilibrium despite forces pulling off balance.
Stamina: Ability to continue maximum effort requiring prolonged effort over time.
THE ABILITY JOB FIT
A high ability-job fit necessary for improved job performance
Lack of fit leads to performance problems
If, Ability < Job Requirements
basic cause of poor performance
Ability > Job Requirements
organizational inefficiency and job dissatisfaction
Jobs make differing demands on people and that people differ in their abilities
MANAGERIAL IMPLICATIONS
Ability directly influences employees level of performance.
An effective selection process & job analysis should be done.
Managers need to focus on ability in selection, promotion, and transfer.
Fine-tune job to fit incumbents abilities.
UNIT 2
GROUP BEHAVIOUR
Group: - A group is defined as two or more individual, interacting and interdependent,

who have come together to achieve particular objectives.
According to Smith, a group is the set of two or more individual who are jointly
characterized by a network of communication with a shared sense of collective identity
and one or more shared dispositions with associated normative strength.
A group is collection of people having common interest, interaction, and awareness of one
other.
Features of Group:1. More Persons: a group consists of two or more persons. There is no maximum limit of
members.
2. Shared Interest: the members subscribe for group objectives. It is not necessary that
each member agrees with all the objectives. But each subscribes to at least one objective.
The shared objectives bind them together.
3. Aware of Group: in a group, members know personally each other more closely. They are
aware their membership, each member that he is a participant in some specific group.
4. Interaction: members of the group interact with each other. They have the opportunity to
communicate with others face to face, in writing or through telephone or network.

5. Enduring relationship: the members endure tighter social relationships. They are less
organized.
6. Rules and regulations: group starts with mutual awareness and establishes rule for
comfortable coexistence.
7. Interdependence: the members are often dependent on each other to serve common
purpose.
8. Social interaction.
9. Stability
10.
Recognition as being a group.
Types of Groups:
Groups can be either formal or informal.
1. Formal Groups:- A designated work group defined by organizations structure. In
formal groups, the behaviours that one should engage in are stipulated by and directed
towards organizational goals. Examples:- A book-keeping department, an executive
committee. Formal groups can be divided into command groups, task groups and
committee.
Command Group:- A command group consists of a manager and the employee who
report to him or her. Membership in the group arises from each employees position on the
organizational chart.
Task Group:- A task group is made up of employees who work together to complete a
particular task or project. It may be temporary with an established life span ot they may
be open ended.
Committee:- A group of people officially delegated to perform a function, such as
investing, considering or reporting on a matter.
2. Informal Group:- An organizations informal groups are groups that evolve to meet
social or affiliation needs by bringing people together based on shared interest or
friendship. These groups are natural formations in the work environment. It can be divided
into various types.
Friendship group:- Groups often develop because individual members have one or more
common characteristics and it is meant for friendship.
Interest group:- People who may or may not be aligned into common command or task
groups may affiliate to attain a specific objective with which each is concerned. This is an
interest group.
Reference group:- When a group is used as a basis for comparison in making decisions
or forming opinions, then it is called as a reference group.
Membership group:- When a person does belong to a group, then the group is called a
membership group for that person.
Cliques:- A relatively permanent informal groups that involves friendship. Most of the
relationships came down to two cliques, each with a hanger-on and some isolates. The
cliques served as a system for sense making about organizational events.
Stages for group development:

Group generally pass through a standardized sequence in their evolution. This sequence is
called the five-stage model of group development characterizes as : Forming, storming,
norming, performing and adjourning.
Five-Stage Model
Forming is the initial stage of group development when the group members first come in
contact with others and get acquainted with each other. This stage is characterized
predominantly by a feeling of uncertainty among the group members as they now try to
establish ground rules and pattern of relationship among themselves.
Storming is the next stage that is characterized by a high degree of conflict among the
members. Members often show hostility towards each other and resist the leaders control.
If these conflicts are not adequately resolved, the group may even be disbanded. But,
usually the group eventually comes in terms with each other and accepts the leadership
role at the end of this stage.
Norming is the third stage of the group development process during which the group
members become closer to each other and the group starts functioning as a cohesive unit.
The group members now identify themselves with the group and share responsibility for
achieving the desired level of performance of the group. Norming stage is complete when
the group members can set a common target and agree on the way of achieving this.
Performing is the fourth stage when the group is finally ready to start working. As the
group is now fully formed after resolving their internal conflicts of acceptance and sharing
responsibility, they can now devote energy to achieve its objectives.
Adjourning is the final stage when the group, after achieving the objectives for which it
was created, starts to gradually dissolve itself.
FACTORS OF GROUP FORMATION

There are various factors, which influence the formation of groups in organisations. Let us learn
following important factors of group formation:
Psychological Factors : After joining the organisation, individual joins a particular group in which
he/she finds him/her interest, attitude, personality, perception etc. matching with other individuals within
the department or the organisation. As a result, group is formed.
Social Factors : Individuals also form or join the group based upon their social class, caste, and
religion to satisfy their social needs. They do it primarily for satisfying their love, affection and care
needs, which initially they feel deprived after leaving their families.
Security Factors : As an individual, sometimes one can feel insecure over unexpected developments
such as sudden health problem, termination, suspension, local problems etc., therefore, everyone likes
to be in a group to feel secured to work. Especially in a new place, for a new employee, the security
need could be one of the major factors for joining a group.

Economic Factors : When an individual works in an organisation, he/she gets all types of economic
incentives and benefits available within the rules and regulations. Sometimes organisations cannot
meet an individuals accidental or obligatory needs like money for marriage, house construction,
medical care and other proposes. So he/she gets associated with those people who help him/her at the
time of need.
Cultural Factors : Individuals come to work from different society and culture. In case the place at
which they work are far away from their place of origin , region and culture; they feel like a fish out of
water. It may be due to the absence of cultural celebrations. This is one of the reasons for which people
coming from same culture, tradition and speaking similar language usually form the group.
Proximity, Interaction, Interest and Influence : This is one of the common and logical reason for
which people form the group in the organisation. Some people have to work together. Due to the
similarity of nature of job, they have to interact with each other for this purpose. In course of interaction,
interest develops which ultimately influences each other to sit, eat, discuss and share besides working
together.
GROUP BEHAVIOUR MODEL
Purpose of a Group:
The most popular reason are:

1. Security: by forming into groups one can reduce the feeling of insecurity. Being part of a
group individuals get reassurance from interacting with others.
2. Status: inclusion in a group viewed as important by others. Group provides recognition
and status for its members.
3. Self esteem: membership provides people feeling of self worth. Self esteem of an
individual is bolstered.
4. Affiliation: group feeling provides workers a feeling of job satisfaction and fulfill their
needs of friendship and social relations.
5. Power: by the formation of groups employees can increase their bargaining power with
management. Informal groups provide additional power to influence others.
6. Good achievement: group helps in achieving a goal that would be difficult if pursued by
a single person.
7. Economic benefits: individual believe that they can derive greater economic benefits if
they form into groups.
8. Relieves boredom: mutual interaction relieves people from boredom and monotony on
the job.
9. Mutual interaction: groups help people to interact with each other.
10.
Opportunity to learn: group provides opportunity to members for exchange of
ideas, thoughts.
11.
Source of information: groups helps others to know about others and give
information when they are sick.
Theories of group Formation
There are four theories explaining why people interact and form groups. These are:
PROXIMITY THEORY: Individuals tend to affiliate with one another because of spatial or geographical
proximity or nearness. For instance, peasants in a village or students next to each other in class
interact more and thus will eventually form a group.
ACTIVITY THEORY: When people are involved in similar activities, they tend to generate spontaneous
interaction and sentimentality leading to cooperation and problem solving. Commonness in
occupational interests makes it possible for people to socialize on a wide range of issues related to the
particular activity.
EXCHANGE/BENEFIT THEORY: It holds that some groups are formed purely on business-like
relations. Members will only decide to form, join or continue together on the basis of the gains
thereafter. Rewards in this context, will yield gratification while the costs involved include material loss,
privileges, anxiety, frustrations or fatigue. The rewards could be tangible or non-tangible e.g power,
leadership and prestige.
BALANCE THEORY: It borders closely with the activity theory except that it would draw on emotional
cum-intellectual dimension of the interaction. People are attracted together on the basis of similar
attitudes towards life e.g likes and dislikes, beliefs, political ideologies etc.
FUNCTIONS OF THE GROUPS:

1. Formal organizational functions: These relates to basic mission attainment by the organization.
The group completes the work, creates ideas and embraces all activities for which they are
accountable.
2. Psychological Personal functions: The group formation facilitates psychological functioning,
satisfaction of the needs, outlet for affiliation and helps in getting stability and enhancing the
achievements.
3. Mixed or Multiple functions: The formal as well as informal both kinds of roles are taken up by the
members of the group. The formal group can try to fulfill various psychological roles and leading to
increased loyalty, commitment and energy for effective attainment of the administrative and
organizational goals
GROUP COHESIVENESS
Group cohesiveness is nothing but it is the attractiveness of a group to its members. A highly cohesive
group very much appeals to their members. The cohesiveness of a group affects its performance and
effectiveness. There are a large number of factors, which influence the level of cohesiveness of a
group. Those factors can be broadly categorized into five types.
They are : size of the group, homogeneous character of group members, success of the group,
competition with other groups, and the exclusiveness of the group. Let us learn them in detail.
Size of the Group : Just like small family is more cohesive, similar is the case with a group. In case the
size of the group is large, their members tend to be less satisfied and do not tend to be cohesive.
Normally in a large group, only a few members of the group try to dominate every thing such as
suggestion, opinion, its day to day functioning without giving opportunities for participation to the other
members in the group.
Therefore, the large groups are more prone to conflict, and members find it difficult to form close ties
with each other, than a small or medium size group in which there exists cohesiveness.
Homogeneous Character of Group Members : More similarity the member feel with each other,
better the chances that they will well get along with, and feel comfortable to communicate with each
other. The most cohesive group is one where members are more homogeneous in terms of age, sex,
education, marital status etc. and they share certain attitudes, values, experiences, and other
characteristics, which are common to
each other.
Success of Group : It is the success of the group which can make it cohesive. A realisation develops
among its members to avoid differences for achieving group goals. When groups are successful in
achieving their goals, they become especially attractive to their members, and group cohesiveness
enhances.
Competition with Other Groups : Competition between groups in an organisation increases group
cohesiveness when it motivates members of each group to band together to achieve group goals. For
this reason, organisations often promote group cohesiveness by having work groups competition in the

organisation between /among groups over sales target, zero defect production, minimization of
wastages; etc. A group of production workers may compete to see which group can maintain the
highest quality
standards, and groups of maintenance workers may compete to have the best attendance record.
Giving groups names and publicizing also encourage healthy competition, which groups are doing
extraordinarily well.
Exclusiveness : A groups exclusiveness is indicated by how is it difficult to become a member of the
group, the extent to which outsider look up to group members. The exclusiveness of a group gives
status in the organisation. It also provides special rights and privileges to its group members.
Thus, in cohesive group members become more active participants in the group activities and the level
of communication within the group increases. They share a common goal, develop high group loyalty
and get united to perceive threat. Moreover, in a cohesive group information flows through the group
very fast.
GROUP COHESIVENESS Cohesion in a group develops if the needs , hopes and expectations of
members are realized . Group Cohesiveness is an important indicator of how influence the group as a
whole exerts over the individual members.
FEATURES OF COHESIVE GROUPS : Groups in high cohesion are likely to exhibit the following
characteristics :
They have relatively few members .
Members have similar interests and backgrounds .
They enjoy a high degree of status within the organization .
Leader of such groups rewards co-operative behavior .

They are pressured or threatened by some common outside force .
They enjoy a history of past success .
GROUP NORMS
When there are more than one individual in a group, there is every possibility of tension, confusion and
conflict over the rights, duties and status of the group among its members. For the smooth functioning
of the group, every group, develops its role norms, and rules irrespective of its type. Roles and rules
help the group members as well as managers not only to control the members behaviour in group but
also specify what behaviours should group members engage in, so that the group will be effective,
perform at a high level, and achieve its goals. Roles and rules are formal requirements to facilitate the
smooth functioning of group.
Norms on the other hand are unwritten rules and regulations, which govern the behaviour and actions
of its members. It is the acceptable standards of behaviour of a group which is commonly shared by its
members. We can only call a group effective groups, which control the behaviour of its members
through its norms and channelize their effort for the attainment of group as well as the organisational
goals. Group rewards its members who conform to the norm in a specified manner through verbal
praise and they also get help from other members. Group also punishes its members when somebody
in the group deviates from the norm.
Norms develop when members in a group share a common idea of acceptable behaviour, which,
monitor each others behaviour in the group. Many norms develop because several members bring
their past experiences from other groups and from other organisations. Sometimes some critical
incidents in the life of the organisation may also set the norm for the group.
The first and the most commonly used criteria for conformity of the group norms is compliance. It is
assenting to a norm in order to attain rewards or avoid punishment. A realisation is developed among
them that the compliance of norm will bring certain benefits and ignoring it will bring certain costs.
Groups put tremendous pressure on the members to change their attitude and behaviour for the
conformity of group norms.
Following are the advantages of norms for a group:
Norms enables a group to accomplish its goals.
Norms help the group to control and regulate the behaviour of its members without external influence.
Norms enable a group to survive in the face of threat and competition from other groups. They protect
the group and its members from outside pressure and interference.
Norms help the group and its member to express groups value and give the group a unique identity of
its own.

Norms of the group enhance the predictability of group members in terms of performance,
appearance etc.
Group Dynamics
The group dynamics refers to changes which take place within groups and is concerned with the
interaction and forces obtained between group members in social settings .It is a study of forces
operating within a group. A group doesnt simply mean individuals possessing same identical features.
For instance, A collection of students or beggars doesnt form a group. These are class. A group is
formed when the Two or More individuals, interacting and interdependent, who have come together to
achieve particular objectives
The social process by which people interact face-to-face in a group environment is called Group
Dynamics.
The word Dynamics comes from the Greek word meaning force ;hence group dynamics refers to the
study of forces operating within a group. Suppose we say one plus one equals eleven. In the world of
Mathematics that is a logical error, but in the world of Group Dynamics it is entirely rational to say one
plus one equals eleven.
Importance of Group Dynamism:

1. The group can influence the thinking of its members. The members are always influenced by the
interactions of other members in the group.

2. A group with a good leader performs better as compared to a group with weak leader.
3. The group can give the effect of synergy, that is, if the group consists of positive thinkers then its
output is more than the double every time.
4. Group dynamism can give job satisfaction to the members.
5. The group can also bring team spirit among the members.
6. Even the attitude, perceptions, and ideas of members depend on group dynamism. For example, the
negative thinkers can be converted to positive thinkers with the help of the facilitator.
7. If the group works as a cohesive group, the cooperation and convergence can result in maximization
of productivity.
8. Lastly, group dynamism can reduce the labour unrest and labour turnover due to emotional attachment among the group members.
FEATURES OF GROUP DYNAMICS:

Concerned with group - Group dynamics is concerned with group .Wherever a group exists the
individuals interact and members are continuously changing and adjusting relationship with respect to
each other . The members of the group may interact , may be in state of tension , may be attracted or
repelled to each other , may seek the resolution of these tensions and return to equilibrium after the
resolution.
Changes - Changes go on occurring like introduction of the new members, changes in leadership ,
presence of old and new members and the rate of change fast or slow. The groups may dissolve if
the members are not enthusiastic about the goals, they have no faith in the ideology and donot identify
themselves with the group. This means that the cohesiveness in the group has decreased.
Rigidity or Flexibility - There may be rigidity or flexibility (cohesiveness or conflict) that influence a
group dynamics. If the members get along well there is smooth sailing for the group and if there is
conflict it leads to problems. A rigid group may not change and lacks adaptability to change. But the
members if are able to solves the problems, the equilibrium can be maintained. The conflict and tension
if increases within the group, this can cause an open flare up and strong measures are urgently.
Group organization - The group organization is essential. It leads to greater group effectiveness,
participation, cooperation and a constructive morale. The leader will be effective only if the group is
organized and stable. Some degree of organization is essential for effective functioning of the group
and depends on the proportion of the well-defined roles members have in the group. The organized
group, is one with every member having specific roles and acting towards other members in the
prescribed manner.

Continuous process of restructuring, adjusting andreadjusting members -Dynamic group
always is in continuous process of restructuring, adjusting and readjusting members to one another
for the purpose of reducing the tensions , eliminating the conflicts and solving the problems which its
members have in common. The changes may take within a group and it is interesting to study the way
the change do occur. The frequent changes indicate the capacity of the group to change and adapt.
PRINCIPLES OF THE GROUP DYNAMICS:
1- The members of the group must have a strong sense of belonging to the group .The barrier between
the leaders and to be led must be broken down.
2- The more attraction a group is to its members, the greater influence it would exercise on its members.
3- The grater the prestige of the group member in the eyes of the member in the eyes of the members, the
greater influence he would exercise on the theme.
4- The successful efforts to change individuals sub parts of the group would result in making them confirm
to the norms of the group.
5- The pressures for change when strong can be established in the group by creating a shared perception
by the members for the need for the change.
6- Information relating to the need for change, plans for change and the consequence of the changes
must be shared by the members of the group.
7- The changes in one part of the groups may produce stress in the other parts, which can be reduced
only by eliminating the change or by bringing about readjustments in the related parts.
8- The groups arise and function owing to common motives.
9- The groups survive by pacing the members into functional hierarchy and facilitating the action towards
the goal.
10- The intergroup relations, group organization, member participation is essential for effectiveness of a
group.
Teams in work places:

A team is relatively permanent work group whose Members must coordinate their
activities to achieve one or more common objectives. A work team generates positive
synergy Through coordinated effort.
Types of Teams:- Based on the objectives, teams may be classified as problem solving,
self- managed and cross-functional teams.
1. Problem-solving Teams:- It consists of groups of 5-10 employees from the same
department, who meet for a few hours each week to discuss ways of improving quality,
efficiency and the work environment.
2. Self-managed Teams:- A self-managed team includes collective control over the place of
work, determination of work assignments and collective choice of inspection procedures.

3. Cross-functional Teams:- Cross-functional teams are made up of employees from the
same hierarchical level, but from different work areas, who come together to accomplish a
task. Cross-functional teams are an effective way to allow people from diverse areas within
an organization
Reasons for using Teams:- Organizations use teamwork because it meets organizational
objectives better than individual efforts.
Many organizations have credited teamwork with improvements in quality, productivity
and profitability.
Employees on teams also tend to deliver high quality because their involvement and
authority make them highly committed.
When quality and productivity rises, profit rises. Team work also boosts profitability by
reducing costs.
Greater Flexibility:- Teams can improve flexibility because team members have the
skills, information and authority to direct their expertise and commitment towards
satisfying those needs.
Greater Responsiveness to change:- A logical way to create the necessary
involvement is to use teams.
Meets Social needs:- Teamwork offers a change to meet social needs and enjoy a sense
of involvement and achievement.
Eight Cs for Team Building:

To show business results and profitability, ways are explored by the executives to improve
their productivity.
Successful team building, that creates effective, focused work teams, requires
attention to each of the following:
1. Clear Expectations:
The managers must clearly tell the team members of the expected performance and the
team members must understand the reason for its creation. For it the organization must
support the team with resources of people, time and money.
2. Commitment:
Team members must participate in the team, feel that the team mission is important, and
show commitment to accomplishing the team mission and expected outcomes.
Commitment will come if team members perceive their service as valuable to the
organization and to their own careers.
3. Competence:
Team members must have the knowledge, skill and capabilities, the resources, strategies
and support needed to accomplish its mission to address the issues for which the team
was formed.
4. Control:
The team must have not only enough freedom and empowerment to feel the ownership
necessary to accomplish its charter, but also the accountability. There has to be a defined
review process.
5. Collaboration:
The team should understand group processes and work effectively and cooperatively with
other members of the team. For it they have to understand the roles and responsibilities of
team members, team leaders, and team recorders.
6. Communication:
To make team members clear about the priority of their tasks, and receive regular
feedback, team members must clearly and honestly with each other. Diverse opinions be
welcome and conflicts be taken up positively.
7. Creativity:
The team should value creative thinking, unique solutions, and new ideas; and reward
members who take reasonable risks to make improvements. If necessary, it should provide
the training, education, access to books and films, and field trips to stimulate new
thinking.
The creative development of new products, new technologies, new services, or new
organizational structures is possible because teams may have variety of skills needed for
successful innovation.
Team members can uncover each others flaws and balance each others strengths and
weaknesses. Managers should empower the team and make it accountable for the
innovation process.
8. Coordination:
Teams should understand the concept of internal customer to whom they provide a
product or a service. Team efforts need to be coordinated by a central leadership team
that assists the groups to obtain what they need for success.
The cross- functional and multi-department teams must work together effectively. The
organization should develop a customer-focused and process-focused orientation and
move away from traditional departmental thinking.
Spend time and attention on each of these eight tips to ensure your work teams contribute
most effectively to your business success. Your team members would love you, your
business will see new heights, and empowered people will own and be responsible to
their work processes
Characteristics of Effective Work Teams
1. Commitment and inspiring goals
2. Role Clarity
3. Self- disclosure (incl.confrontation)
4. Openness to feedback
5. Competence
6. Creativity with constructive confrontation
7. Collaboration /Support/Trust
8. Congruence between individual and group goals
9. Supportive leadership
10. Management of power
Team Functioning
1. a)Cohesion- amongst team members
2. b)Confrontation-solving problems
3. c)Collaboration-working together
Team Empowerment
1. a)Clarity of Roles
2. b)Autonomy
3. c)Resources provn.
4. d)Accountable-goals
TEAM EFFECTIVENESS MODEL

Context
Work Design
-Adequate resources
-Autonomy
-Leadership and structure

-Climate of trust
-Skill variety
-Task identity
-Performance evaluation &
-Task significance
Reward systems
TEAM EFFECTIVENESS
Composition
Process

-Abilities of members
-Common purpose
-Personality
-Specific goals
-Allocating roles
-Team efficacy
-Diversity
-Conflict levels
-Size of teams
-Social loafing
-Member flexibility
BENEFITS
a)
To the organization
1.
Increased productivity and quality
2.
Increased employee morale
3.
Reduced overhead
b)
To individuals
1.
Work become less stressful
2.
Responsibility is shared
3.
Greater feelings of self-worth
4.
Rewards and recognition are shared
TEAM FORMATION AND ASSESSMENT
TEAM RECRUITMENT CONSIDERATION
1.
The level of technical ability of potential team members
2.
The level of interpersonal skills of potential team members
TEAM SELECTION CRITERIA
1. Personal attributes
2. Interpersonal behaviors
3. Communication skills
4. Administrative skills
TEAM FORMATION AND ASSESSMENT
TEAM RECRUITMENT CONSIDERATION
1. The level of technical ability of potential team members
2. The level of interpersonal skills of potential team members
TEAM SELECTION CRITERIA
1. Personal attributes
2. Interpersonal behaviors
3. Communication skills
4. Administrative skills
TEAM DEVELOPMENT
STAGES OF TEAM DEVELOPMENT
Stage I: Orientation or forming
Stage II: Conflict or storming
Stage III: Collaboration or norming
Stage IV: Productivity or performing
Stage V: Changing or transforming
TEAM MEMBERS ROLES
DEFINITION OF TEAM -MEMBER ROLES
Interaction to carry out tasks where members settle into individual 'roles' by
mutual consent. Such roles include both task and processes aspects of the
team's interaction.
THE ROLES
1. Giving information
2. Seeking information
3. Initiating
4. Standard setting
5. Clarifying
6. Summarizing
7. Consensus testing
ORGANIZATION POWER AND POLITICS

UNIT III
POWER
Power is the ability to
Get someone to do something you want done.
Make things happen in the way you want
Power is the opportunity to build, to create, to nudge history in a different direction."

Richard
Nixon
Bases of Power(types, sources)
A. Formal Power
1. Coercive power
a. The coercive power base depends on fear of negative results.
2. Reward power
Compliance achieved based on the ability to distribute rewards that others

view as valuable. The opposite of coercive power is reward power.
3. Legitimate power
The power a person receive as a result of his/her position in the formal

hierarchy of an organization.It
represent the formal authority to control and use organisational resources. In formal
groups and organizations, the most common access power is through legitimate
power.
B. Personal Power
Power comes from an individuals unique characteristics.
1. Expert power
a. Influence based on special skills and knowledge. Expert power is influence wielded

as a result of expertise, special skill, or knowledge.
2. Referent power
a. Influence based on possession by an individual of desirable resources or personal
traits. Referent power is based on identification with a person who has desirable
resources or personal traits.
II. Dependency: The Key to Power

A. The General Dependency Postulate
1. The greater Bs dependency on A, the greater the power A has over B.
2. When you possess anything that others require but that you alone control, you make
them dependent upon you and, therefore, you gain power over them.
3. Dependence, then, is inversely proportional to the alternative sources of supply.
4. This is why most organizations develop multiple suppliers rather than using just one.
5. It also explains why so many of us aspire to financial independence.
B. What Creates Dependence?
1. Importance
a. To create dependency, the thing(s) you control must be perceived as being
important.
b. Organizations actively seek to avoid uncertainty.
c. Therefore, those individuals or groups who can absorb an organizations uncertainty
will be perceived as controlling an important resource.
2. Scarcity
a. A resource needs to be perceived as scarce to create dependency.
b. The scarcity-dependency relationship can further be seen in the power of
occupational categories.
i. Individuals in occupations in which the supply of personnel is low relative to
demand can negotiate compensation and benefit packages, which are far more
attractive than can those in occupations where there is an abundance of
candidates.
3. Nonsubstitutability
a. The more that a resource has no viable substitutes, the more power that control
over that resource provides.
III. Power Tactics

A. What power tactics do people use to translate power bases into specific action?
B. Research has identified nine distinct influence tactics.
1. Legitimacy. Relying on your authority position or saying a request accords with
organizational policies or rules.
2. Rational persuasion. Presenting logical arguments and factual evidence to
demonstrate a request is reasonable.
3. Inspirational appeals. Developing emotional commitment by appealing to a targets
values, needs, hopes, and aspirations.
4. Consultation. Increasing the targets support by involving him or her in deciding how
you will accomplish your plan.
5. Exchange. Rewarding the target with benefits or favors in exchange for following a
request.
6. Personal appeals. Asking for compliance based on friendship or loyalty.
7. Ingratiation. Using flattery, praise, or friendly behavior prior to making a request.
8. Pressure. Using warnings, repeated demands, and threats.
9. Coalitions. Enlisting the aid or support of others to persuade the target to agree.
IMPACT OF POWER
POWER
Positive
Negative
1. Positive motivation
primitive in nature
2. Social power
lose- win situation
3. Loyalty &commitments
negative consequence
EXCHANGE THEORY AND CONTROL
Motivation is outcome, when individual tries to bring about parity between the cost he
incurs and the
reward he gets.
1. Person possess expert /reference power that position determine and control profit
and loss of
an another person
2. Expert power- compliance with experts wishes lead to positive outcomes
3. Legitimate power- incurs profit by confirming to accepted std and procedures. Non
compliance with legitimate power
Lead to a loss in form of punishment or non-acceptance by colleagues.
POWER STRUCTURE
High ranking persons have more power.
Power relationship may be direct or indirect
Direct power a
b
Indirect power a b c
POWER PROCESS- ELEMENTS

Dependency
Balancing Power relationship
Reaction to imbalance
Power ploys
Note: Dependency we already discussed earlier.
Nature of powerr in organization:
Some individuals always seek power to influence benefits in favors for him. Some give
more
important and some not give important to get power. Individual Difference too.
POWER BALANCE
If Degree of dependency is equal to degree of power exercise.
Dependency = power exercise.
If the above is not equal that is called power imbalance.
Dependency =power exercise.
Managers Acquire the power needed for leadership by working towards

Power-oriented behavior
Position power and personal power
2Cs : Centrality and Criticality
Building expertise
Visibility of their job performance
Expanding contacts with senior people.
Seeking opportunities to increase name recognition.
EMPOWERMENT
The process by which managers help others to acquire and use the power needed to make decisions
affecting themselves and their work.
Empowerment, and the way managers empower others:
Power as an expanding pie.
With empowerment, employees must be trained to expand their power and their new influence
potential.
Empowerment changes the dynamics between supervisors and subordinates.

Sexual harassment and power
Harasser stereotypes the victim as subservient and powerless
Harasser threatens job security or safety through coercive or legitimate power

Hostile work environment harassment continues when the victim lacks power to stop the behaviour
Office romance and power
Co-workers believe that employees in relationships abuse their power to favour each other.
Higher risk of sexual harassment when relationship breaks off.
HOW POWER AFFECTS BEHAVIOUR
Like all resources, power is susceptible to misuse.
Power corrupts, and to quote Lord Acton: Power tends to corrupt and absolute power corrupts
absolutely.
Let us see, in the organisational scenario, what power does to people and discuss the process by which
managers may get corrupted by the acquisition of power.
This process of corruption due to power is a four-stage process and the sequence seems to be quite
consistent:
STAGE 1 SURPRISE
After you acquire power, especially position power, say after a promotion to a senior position like CEO,
first, there is surprise at how quickly erstwhile peers or equals change their behaviour towards you.
There is a distancing process. You can no longer be one of the boys. Your privileges increase after
all Rank has its Privileges. At this stage you begin to experience that power is like an aphrodisiac.
STAGE 2 EXCITEMENT
The second phase is a feeling of excitement, of recognition that when you, as the new leader, use
your power to make a decision, your decision is both sought after and gratefully received. This develops
into strong feelings of self-worth and you have a feeling of doing something worthwhile. You have a
feeling of importance owing to the satisfaction of the inner need for significance.
STAGE 3 POTENCY
The third phase is the one most likely to begin the process of corruption. It is feeling of potency. You,
as a powerbroker, start to understand how much power and concomitant resources you can employ in
order to amplify your own person, role and achievements. There is an accompanying feeling
of isolation. The leader, possessing power, becomes inexorably drawn away from the subject (follower
or victim) of his power and is tempted to feel bigger for it.
STAGE 4 EPIPHANY
In the final phase, there is a split. In this stage, persons possessing power behave in two distinct ways.
If you are a prudent manager or leader you will begin to realise the negative aspects of power. You will
sense the reactions of your subordinates and peers in the organisation to the power equations and
accordingly you will evaluate the situation and respond in a positive manner by appropriate delegation
of power in order toempower your subordinates, or at least generate a feeling of empowerment
among them.
ORGANIZATIONAL POLITICS
DEFINITION
Organizational politics involves those activities by organizations to acquire, develop, and use power and
other resources to obtain ones preferred outcomes in a situation in which there is uncertainty or dissent
about choices.
(Pfeffer, 1981)
TYPES OF POWER
Legitimate political behavior
- refers to normal everyday politics
Illegitimate political behavior
- extreme political behavior that violates the implied rules of the game
THE HIGH SELF MONITOR
More sensitive to social cues

Exhibits higher levels of social conformity, and
More likely to be skilled in political behavior
INDIVIDUALS WITH AN INTERNAL LOCUS OF CONTROL
More prone to take a proactive stance
Attempt to manipulate situations in their favor
HIGH MACHIAVELIAN PERSONALITY
Will to manipulate, and
Desire for power is comfortable using politics as a means to further his or her self-interest

ORGANIZATIONAL INVESTMENT
The more a person has invested in the organization in terms of expectations of increased future benefits,
the more that person has to lose if forced out and the less likely he or she is to use illegitimate means.
PERCEIVED JOB ALTERNATIVES
The more alternative job opportunities an individual has due to a favorable job market or the
possession of scarce skills or knowledge, a prominent reputation, or influential contacts outside the
organization the more likely that individual is to risk illegitimate political actions.
the more that person has to lose if forced out and the less likely he or she is to use illegitimate means.
ORGANIZATIONAL STRUCTURE
DECLINING RESOURCES
People may engage in political actions to safeguard what they have

Stimulate conflict and increase politicking
PROMOTION OPPORTUNITIES
Encourages people to compete for a limited resource
Try to positively influence the decision outcome
LOW TRUST
The higher the level of political behavior, and
The more likely that the political behavior will be of the illegitimate kind.
ROLE AMBIGUITY
Means that the prescribed behaviors of the employee are not clear.
UNCLEAR PERFORMANCE EVALUATION SYSTEM
Subjective performance criteria
Single outcome measure
The amount of time that elapses between an action and its appraisal
ZERO-SUM REWARD PRACTICES
Also called Win/Lose Approach
Treats the reward pie as fixed so that any gain one person or group achieves has to come at the
expense of another person or group.
DEMOCRATIC DECISION MAKING
Managers in these organizations are being asked to behave more democratically.
They are told that they should allow employees to advise them on decisions and that they should rely to
a greater extent on group input into the decision process
HIGH PERFORMANCE PRESSURES
The more pressure that employees feel to perform well, the more likely they are to engage in politicking.
SELF-SERVING SENIOR MANAGERS
When employees see the people on top engaging in political behavior, especially when they do so
successfully and are rewarded for it, a climate is created that supports politicking.
Effects of politics on organization and employees:
1. Decrease in overall productivity
Politics lowers the output of an individual and eventually affects the productivity of the organization.
Common observation says that individuals who play politics at the workplace pay less attention to their work.
They are more interested in leg pulling and back biting. They spend most of their times criticizing their fellow workers.
As a result of politics at the workplace, employees fail to achieve targets within the stipulated time frame. Work gets
delayed in such an organization.
2. Affects Concentration
Individuals find it difficult to concentrate on their work. They are more interested in spoiling the other persons image
in front of the superiors.
An individual involved in politics is bound to make more mistakes as his focus is somewhere else.
3. Spoils the Ambience
Politics leads to a negative environment at the workplace.
It spoils the relationships amongst individuals. An individual playing politics at the organization is disliked by all.
4. Changes the Attitude of employees
Politics changes the attitude of the employees.
Even the serious employees lose interest in work and attend office just for the sake of it.
Internal politics do not allow employees to give their hundred percent at work.
No matter how much hard work an employee puts in, it goes unnoticed in a politically driven organization.
5. Demotivated employees
A non performer can be the apple of his bosss eye simply due to politics, thus demotivating the performers.
Discussions are essential at the workplace to extract the best out of employees. Evaluating the pros and cons of an
idea always helps in the long run. Employees playing politics always look for an opportunity to tarnish the image of
the fellow workers.
Employees feel demotivated when they are not rewarded suitably or someone who has not worked hard gets the
benefits due to mere politics.
6. Increases Stress
It is rightly said that problems evaporate if discussed. Individuals find it difficult to confide in any of their fellow
workers due to the fear of secrets getting leaked.
Politics increases the stress level of the employees. Individuals are not machines who can work continuously for 8-9
hours without talking to others. It is important to have friends at the workplace who help you when needed.
Individuals fail to trust each other.
7. Wrong Information
Employees indulged in politics manipulate information and it is never passed on in its desired form.
Superiors get a wrong picture of what is actually happening in the organization.
A wrong person walks away with the credit in an organization where employees are indulged in politics.
Political Tactics
Attacking or blaming others.
Creating a favorable image.
Developing a base of support.
Inspirational appeal
Consultation
Exchange
Coalition
Pressure
ORGANIZATIONAL STRESS AND CONFLICT MANAGEMENT

UNIT IV
DEFINITION OF STRESS:
Stress is an adaptive response, mediated by individual characteristics and/or psychological

processes, that is consequence of any external action, situation,
special physical and /or psychological demands upon a person.
or
event
that
places
DEFINITION JOB STRESS:
Job stress is a condition arising from the interaction of people and their jobs and characterised by
changes within people that force them to deviate from their normal functioning.
MEANING OF STRESS
Stress is an adaptive response to an external situation that results in physical, psychological and/or
behavioral deviations for organizational participants.
Stress is not simply anxiety or nervous tension.
Stress need not always be damaging,
Stress is not always due to overwork
Stress cannot be avoided.
Body has limited capacity to respond.
SYMPTOMS OF STRESS
SOURCES OF STRESS
Occupational stress is stress involving work. According to the current World Health Organization's (WHO)
definition, occupational or work-related stress "is the response people may have when presented
with work demands and pressures that are not matched to their knowledge and abilities and
which challenge their ability to cope."
SOURCES OF STRESS
Individual Level Stressors
Personality
Role overload
Role Conflict
Role Ambiguity
Task Characteristics
Group Level
Managerial Behaviour
Lack of cohesiveness
Intragroup Conflict
Status Incongruence
Sexual Harassment
Workplace violence
Organizational Level
Climate
Management Style
Organizational Design
Organizational life Cycle

Extra-Organisational
Family
Economy
Lack of Mobility
Quality of life
TYPES OF STRESS
Eustress
Distress
Cumulative stress
General

Acute traumatic
CONSEQUENCE OF STRESS:
PHYSIOLOGICAL SYMPTOMS: Heart diseases, breathing rates, high BP, headache, heart attack.
PSYCHOLOGICAL SYMPTOMS: tension, anxiety, irritability, boredom.
BEHAVIOURAL SYMPTOMS: changes in productivity, absenteeism, turnover, eating habit, high
smoking and drinking, rapid speech, sleep disorders.
Manage Stress
1. Individual Approach
2.
Organisational Approach
Individual Approach:
Take personal responsibility for reduce stress level
Strategies include Time Management,
Techniques Physical exercise, relaxation training, expands social supports and network.
TIME MANAGEMENT-
Scheduling activities according to priorities.
Knowing daily cycle and handling most demand part it increases part of cycle.
Be alert and productive.
Making daily list of activity accomplished
Prioritizing activities, importance, and urgency.
PHYSICAL EXERCISE:
Cycling, swimming, jogging, riding bicycle.
RELAXATION TRAINING
Do meditation daily
physically relaxed.
15-20
minutes.
Deep
relaxation
it
keep
your
EXPAND SOCIAL SUPPORT AND NETWORK

Keep good relationship with family members, peers group, neighbourhood.
ORGANISATIONAL APPROACH
mind
relax
and
also

Task and role demand
change in organisation
can
be
controlled
by management
and it can
be
modify
and
Recruitment and personnel sections:

Organisation doesnt give importance to experience candidate. Some candidates will be external locus
of control.
Goal setting:
Get feedback from employees it will motivate to employees.
Redesigning job
Make less dependence, more responsibility to employees, more meaningful work. It reduces employee
stress related to managerial control and power.
CONFLICT
Conflict is a process in which an effort is made by one person to further his interest by
effecting others interest.
According to Robbins, a process that begins when one party perceives that another party
has negatively affected, or is about to negatively affects something that the first party
cares about.
It encompasses the wide range of conflicts that people experience in organizations,
incompatibility of goals, differences over interpretations of facts, disagreement based on
behavioral expectations etc.
Features of conflict:
1. It is a disagreement.
2. Conflicts occurs when two persons interest are different.
3. Conflict takes place when perception of two persons vary.
4. Conflict arises when one interferes in others activities willfully.
5. Conflict begins when one starts acquire resources before others start to act.
6. Conflict is not organizational abnormality.
7. Conflict is inevitable.
8. Conflict is the integral part of change.
9. Conflict is desired.
10.Optimum level of conflict is healthy.
Symptoms of Conflict:
1.
2.
3.
4.
5.
6.
Frustration
No desire to communicate.
Work not done properly.
Anger occurs equally and easily.
Falling productivity.
Slipping morale.

7. Absenteeism.
8. Accidents.
9. Escalating costs.
10.Shouting.
Types of Conflicts:
INTER
1. Individual conflict: at individual

two types of conflicts take place:
INDIVIDUAL
level
INTRA
a) Inter
individual
conflict:
interpersonal conflicts occur between
INTER
individual. Such conflicts results in
two persons who hold polarized point of
CONFLICT
GROUP
There may be several forms of
interpersonal conflicts such as hierarchy
INTRA
(between superior and subordinates),
functional
conflicts
(between
occupational
and
specialists)
and
INTER
professional
conflicts.
Interpersonal
ORGANIZATI
takes place at horizontal level i.e.,
ON
equals and at vertical level i.e., between
and subordinates.
INTRA
b) Intra individual conflict: it is difficult
analyze since it is internal to a person.
works at home or at workplace only to satisfy his individual needs. Organization
for individuals to satisfy his needs.
two
between
view.
conflicts
conflict
among
superior
to
Man
is a place
2. Group conflict: at group level conflicts may be of two types:

a) Inter Group Conflicts: inter group conflicts refers to conflict between an individual and a
group or between two groups. When the groups exist in an organization they should try to
coexist with harmony to each others. But due to various reasons they fail to live in
harmony with others.
b) Intra Group Conflicts: it is a conflict that occurs within the group or internally. It may
occur between two persons of the same group or between group leader and followers.
Thus when group interest is not compatible to members at a given time, conflicts arise.
3. Organization Conflicts: at group level conflicts may be of two types:
a) Inter organization conflicts: when conflict arises two organizations operating under
different ownerships, such conflict is called inter-organizational conflicts. Conflicts may
arise between an individual and organization also. Sometimes two different groups,
belonging to different organizations may develop clashes. At times conflict may happen
between a group and an organization having different ideas in their minds.
b) Intra organization conflicts: one such conflict is intra-organizational conflict. The
following are such intra-organizational conflicts:
Horizontal Conflicts: horizontal conflicts are called the conflict arising at the same
level of two group or departments which are interdependent and tend to act

independently. Here the department people develop the spirit of competition and try
to achieve their goals, at the cost of other groups or departments.
Vertical Conflicts: vertical conflicts occurs between people at two levels, possibly
between superior and subordinates. Normally these conflicts take place for the
following reasons: 1. Inadequate communication. 2. Perceptual variations etc.
Line and Staff Conflicts: in general line people are held responsible for failures as
they take decisions and responsible to solve problems of the organization. Staff
persons are expected to advise the line in solving problems.
Impacts of Conflicts:
1. Stimulant for change: conflicts draw attention of the authorities for finding better
solutions. It initiates a search for ways to derive objectives, methods and procedures.
2. Counteracts lethargy: conflict counteracts the lethargy that often overtakes
organization. Sometimes group thinking prevents from making rational decisions.
3. Fosters creativity and innovation: it stimulates curiosity and interest. It prevents
stagnation. In open confrontation people tend to put forward more practicable solutions. A
climate of challenge compels individuals to think productivity and creatively. It helps the
people to test their capacities to learn and develop.
4. Cohesion: conflict and competition drive groups of closer. Group membership and
association with members gives satisfaction. According to BOULDING organization are
creation of their enemies and it is through a common hatred of the enemy they establish
their internal unity.
5. Optimum level of conflict is desirable: conflict is inevitable and also necessary for
organizational life. It serves to balance power relationship between departments. It helps
individuals to get relief from the tensions and ill feelings among them.
6. Rational actions: it provides opportunities to people and groups to think and act
rationally.
7. Competition: conflict brings cohesiveness in groups and infuses spirit of competition.

Stage I: Potential Opposition or Incompatibility
Communication
Semantic difficulties, misunderstandings, and noise
Structure
Size and specialization of jobs
Jurisdictional clarity/ambiguity
Member/goal incompatibility
Leadership styles (close or participative)
Reward systems (win-lose)
Dependence/interdependence of groups
Personal Variables
Differing individual value systems
Personality
Stage II: Cognition and Personalization
Important stage for two reasons:
1. Conflict is defined
Perceived Conflict
Awareness by one or more parties of the existence of conditions that

create opportunities for conflict to arise
2. Emotions are expressed that have a strong impact on the eventual outcome
Felt Conflict
Emotional involvement in a conflict creating anxiety, tenseness,

frustration, or hostility
Stage III: Intentions

Intentions
Decisions to act in a given way
Note: behavior does not always accurate reflect intent
Dimensions of conflict-handling intentions:
Cooperativeness
Attempting to satisfy the other partys concerns
Assertiveness
Attempting to satisfy Ones own concerns
Stage IV: Behavior

Conflict Management
The use of resolution and stimulation techniques to achieve the desired level of
conflict
Conflict-Intensity Continuum
Stage V: Outcomes
Functional
Increased group performance
Improved quality of decisions
Stimulation of creativity and innovation
Encouragement of interest and curiosity
Provision of a medium for problem-solving
Creation of an environment for self-evaluation and change
Dysfunctional
Development of discontent
Reduced group effectiveness
Retarded communication
Reduced group cohesiveness
Infighting among group members overcomes group goals
Creating Functional Conflict
Reward dissent and punish conflict avoiders
Methods of resolving organizational conflicts:

Managers have a variety of conflict management styles. The way they handle conflict
depends on the degree to which they seek to satisfy their own concerns and the degree to
which they try to satisfy the other persons concerns.
1. Avoiding:- Avoiding include trying to just ignore a conflict and avoiding others with whom
the managerial views disagree. It is a style low on both assertiveness and
cooperativeness. Avoiding is a deliberate decision to take no action on a conflict or to stay
out of a conflict situation.
2. Accommodating:- When one party needs to be willing to be self-sacrificing; this intention
is referred as accommodating. Here one person attempts to satisfy another persons
objectives. Accommodating is cooperative but unassertive.
3. Competing:- A competing strategy involves attempting to win, with the presumption that
others will lose. Under this strategy, a person wants to satisfy his own interests and is
willing to do so at the other partys expense. It is a style that is very assertive and
uncooperative.
4. Compromising:- It refers bargaining for something acceptable, so each party wins and
loss a bit. In compromising, there is no clear winner or loser. There is a willingness to
ration the object of the conflict and accept a solution that provides incomplete satisfaction
of both parties concern. This style is intermediate in both assertiveness and
cooperativeness.

5. Collaborating:- In collaborating, the intention of the parties is to solve a problem by
clarifying differences rather than by accommodating various points of view. This strategy
seeks to make everyone a winner. Collaborating is a win-win style that is high on both
assertiveness and cooperativeness.
Empowerment:
is any process that provides greater autonomy to employees

through the sharing of relevant information and the provision of control over factors
affecting job performance.
Approaches to Empowerment:
1.
2.
3.
4.
5.
Helping employees to achieve job mastery.

Allowing more control.
Provide successful role models.
Using social reinforcement and persuasion.
Giving emotional support.
Process of Empowerment:
This model is called Randolphis model.

1.
2.
3.
4.
5.
6.
Share information
Create autonomy through structure.
Remove conditions of powerlessness.
Enhance job related self-efficiency.
Perception of empowerment.
Let teams became the hierarchy.
Participation:
it is the mental and emotional involvement of people in group

situation that encourages them to contribute to group goals and share responsibility for
them.

Features:
1.
2.
3.
Mental and emotional involvement.

Contribution to goals.
Share the responsibilities of organization.
Objectives:
Primary Objectives
Industrial Harmony
Sense of commitment
Sense of belongingness
Good communication
skills
Handles the resistance
Secondary Objectives
Economical
Social
Psychological
Benefits of Participation:
1. Increase productivity.
2. Increase efficiency of employees.
3. Establish industrial peace.
4. Establish industrial democracy.
5. Well being of individual.
6. Personality development.
7. Mutual understanding.
8. Social well being.
9. Welcomes changes.
10.
Rapid industrialization.
Demerits of Participation:
1. Inactive trade union.
2. Chances and suspicious.
3. Employee may lead a careless life.
Pre-requisites to Participation:
1.
2.
3.
4.
5.
6.
7.
Adequate time of participate.

Potential benefits greater than cost.
Relevant to employee interests.
Adequate employee ability to deal with the subject.
Mutual ability to communicate.
No feeling of threat.
Restriction to the area of job freedom.
Methods of participation:
1. Co-partnership / co ownership

2.
3.
4.
5.
Workers committee
Joint management council
Suggestions
Board representation
ORGANIZATIONAL DYNAMICS
ORGANIZATION
An organization is a group aggregated and combined under specific leadership to function as a single entity
for a particular purpose.
EFFECTIVENESS:
the extent to which the organization achieves its goals or goal.
EFFICIENCY:
Takes into account the amount of resources used to produce the desired output
EXCELLENCE
It is a measure of consistently superior performance that surpasses requirements and expectations without
demonstrating significant flaws or waste.
ORGANIZATIONAL EFFECTIVENESS
Organizational effectiveness is the concept of how effective an organization is in achieving the outcomes the
organization intends to produce. The idea of organizational effectiveness is especially important for nonprofit organizations as most people who donate money to non-profit organizations and charities are
interested in knowing whether the organization is effective in accomplishing its goals.
EFFECTIVENESS IS A FUNCTION OF CLEAR AUTHORITY AND DISCIPLINE WITHIN AND
ORGANIZATION
Henry fayol
Organizational effectiveness is the concept of how effective an organization is in achieving

the outcomes the organization intends to produce.
METHODS TO MEASURE THE EFFECTIVENESS OF THE ORGANIZATION

A. Goal Approach;
B. Internal Process Approach;
C. System Resource Approach;
D. Strategic Approach
Goal Approach: Effectiveness is the ability to excel at one or more output goals.
The Goal Attainment Approach states that an organizations effectiveness must be appraised in terms of the
accomplishment of ends rather than means
It is the bottom line that counts.
Based on the identification of goals and the achievement of those goals
Goals must be
Clearly identifiable
Consensual
Measurable
Time-bound
Barriers to goal approach theory
Failure to sell practitioners on goal setting to ensure commitment.
Setting goals that are not measurable and realistic.
Unwillingness to raise and lower goals to maintain optimal difficulty.
Setting too many goals.
Focusing too much on outcome goals.
Internal Process Approach: Effectiveness is the ability to excel at internal efficiency, coordination,
motivation, and employee satisfaction.
System Resource Approach: Effectiveness is the ability to acquire scarce and valued resources from the
environment.
Here end goals are not ignored; but they are only one element in a more complex set of criteria.
Systems models emphasize criteria that will increase the long term survival of the organization such as
Its ability to acquire resources, maintain itself internally as a social organism & interact successfully with its
external environment.
So, this approach focuses not so much on specific ends as on the means needed for the achievement of
those ends.
Assumptions
Organizations are made up of interrelated subparts.
If any one of these subparts performs poorly, it will negatively affect the performance of the whole system.
Effectiveness requires awareness & successful interactions with environmental constituencies.
Mgmt has to maintain good relations
Raw materials must be secured, vacancies created by employee resignations and retirements must be filled,
declining product lines must be replaced
Changes in the economy & the tastes of customers or clients need to be anticipated and reacted.
How managers can apply system approach
The system view looks at factors such as-
Relation with the environment
The efficiency with which the org. transforms inputs into outputs
The clarity of internal communications.
The level of conflict among the group
The degree of job satisfaction
Limitations
The two most telling shortcomings of the systems approach relate to MEASUREMENT & the issue of
whether MEANS REALLY MATTER?
In sports, it is frequently said its whether you win or lose that counts, not how u play the game!
Same holds true for orgns.
If ends are achieved, means are not important
But systems approach focus is on MEANS necessary to achieve effectiveness rather than on organizational
effectiveness itself.
Systems Approach uses means goals
The approach that is more meaningful and which is easy to quantify should be used
Strategic Approach: Effectiveness is the ability to satisfy multiple strategic constituencies both within and
outside the organization.
An effective organization is one that satisfies the demands of those constituencies in its environment from
whom it requires support for its continued existence.
It seeks to appease only those in the environment who can threaten the organization's survival.
For eg. Private universities and public universities
Assumptions
Organization should give importance to constituency then it can take this approach.
Each constituency has a unique set of values, so it is unlikely that they are preference will be in agreement.
How can manager apply this
3 major steps
Asking members to identify the constituents
Evaluate the list
Identifying the expectations
Problems
Distinguishing strategic constituencies from larger environment is not easy to practice
Identifying the expectations that the strategic constituencies hold for the organization

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UNIT 1

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4 A Science and Art

5 Humanistic and Optimistic Approach

6 Oriented towards Organizational Objectives

7 A Total System Approach

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living and thinking being

relations, when two people (two coworkers or a superior-subordinate pair)

Human Resources ( supportive) approach-

[Type the document title]

Results-oriented approachOutcomes of organizational behavior programs are assessed in terms

Systems approachAll parts of an organization interact in a complex relationship.

The first objective is to describe, systematically, how people behave under

VARIOUS DISCIPLINES IN OB FIELD

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[Type the document title]

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Challenges and Opportunities of Organizational Behavior:Responding to Globalization

Organizational Behavior Modification (OB-Mod):

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The effectiveness of OB-MOD

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Produce tension within individual

Individual act to reduce the tension or satisfy the need

The stimulus conditions under which it occurs,

As well as the consequences that follow it for the employee.

Step 4: Change the Consequences

[Type the document title]

Correct the feedback deficiencies discovered if any.

The lack of rewards etc

[Type the document title]

Study of different organizational structures

Individual behavior, attitude and learning

#Explain the basic models of organisational behaviour in the Global perspective.

$ Explain organisational behaviour modification.

[Type the document title]

[Type the document title]

[Type the document title]

The external environment is known to have a considerable impact on a persons

[Type the document title]

Individual behaviour is largely affected by a variety of organizational system and

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factors that influence individual behaviour and performance.

[Type the document title]

Family and Personal Life

[Type the document title]

Whenever an organization attempts to assess the individual differences among its

IMPORTANT DIMENSIONS OF INDIVIDUAL DIFFERENCES

Be supportive by showing concern for personal problems, interests, status and

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Strive for management-employee cohesiveness and trust building.

To design recruitment selection procedure.

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PERSONAL VALUES AND ETHICS

Improving Organization's Ethical Climate

[Type the document title]

[Type the document title]

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Sociable, talkative and assertive

3. Trait Theory: Traits are characteristics of a person in which he/she differs

Type theories place personalities into clearly identifiable categories.

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Trait theorists assume that a personality can be described by its position on a