Organisational Behaviour and Corporate Development 9789350432693, 9788184884623

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ORGANISATIONAL BEHAVIOUR AND CORPORATE DEVELOPMENT Prof. M.N. MISHRA Faculty of Commerce B.H. U, Varanasi

~lI GJlimalaya Gpublishing GJlouse • Mumbai • Delhi • Bangalore • Hyd(:rabad • Chennai • Ernakulam • Nagpur • Pune • A.hmedabad • Lucknow

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Revised Edition· 2010

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CONTENTS PART I CHAPTER

CHAPTER

ORAFTER

1.

ORGANISATION

1. 2. 3. 4. 5. 6. 7.

Concept Features Types Forms Significance Approaches Theories of Organisation

2.

BEHAVIOUR IN ORGANISATION

1. 2. 3. 4. 5. 6. 7.

Concepts and Meaning Features Foundations Role Behavioural Process Models of Organisational Behaviour Taxonomy of Organisational Research

3.

PERCEPTION

3 - 29

30-49

50-63

1. Perception Defined 2. Factors Affecting Perception 3. Perception Models

64 - 87

CHAPTER

1. 2. 3. 4. 5. 6. 7.

Learning Defined Models of Learning Reinforcement Techniques of Reinforcement Values Attitudes Behaviour Modification

5.

PERSONALITY

1. Meaning 2. Determinants 3. Development 4. Measurement 5. Theories

88 - 106

CHAPTER

CHAPTER

6.

JOB DESIGN ANn JOB SATISFACTION

1. 2. 3. 4. 5. 6. 7.

Job Design Job Enrichment Job Rotation Job Reengineering Job Design Strategy Job Design Models Job Satisfaction

7

MOTIVATION -

107 - 131

BASICS

132 - 160

APPLICATION

161 - 170

1. Meaning 2. Type 3. Theories: (i) Classical (ii) Contemporary (iii) Integrating CHAPTER

CHAPTER

CHAPTER

8

MOTIVATION -

1. 2. 3. 4.

Economic Consideration Management by Objectives Employee Involvement Programme Performance Appraisal

9

GROUP BEHAVIOUR FOUNDATIONS

1. 2. 3. 4. 5.

Nature of Group Group Formation Group Development Stages Types of Groups Foundations of Group Behaviour

10

INTER-GROUP BEHAVIOUR

1. 2. 3. 4. 5. CHAPTER

11 1. 2. 3. 4. 5. 6. 7.

171- 190

191 - 201

Framework of Intergroup Strategies for Managing Intergroup Performance Intergroup Power Relationships Team Work in Group and Intergroup Intergroup Conflict CONFLICT IN ORGANISATION

Intergroup Conflict Intra-individual Conflicts Interpersonal Conflict Organisational Conflict Conflict Process Negotiation Resolutions

202 - 219

PART II CHAPTER

12 1. 2. 3. 4. 5. 6. 7.

CHAPTER

13 1. 2. 3. 4. 5. 6. 7.

CHAPTER

14 1. 2. 3. 4. 5. 6. 7.

CHAPTER

15 1. 2. 3. 4. 5.

CHAPTER

16 1. 2. 3. 4.

223·230

POWER AND POLITICS Definition Bases of Power Dependency Power Tactics Power Coalitions Power Perception Profile Politics

231· 245

COMMUNICATION Fundamentals of Communication Functions of Communication Communication Process Barriers of Communication Forms of Communication Improving Organisation Communication Environment and Communication

246·255·

STRESS MANAGEMENT Meaning of Stress Forms of Stress Stages of Stress Causes of Stress Effects of Stress Coping Strategies for Stress Stress Management by Indian Philosophy

DELEGATION OF AUTHORITY

& CENTRALISATION

256·268

Meaning of Authority Meaning of Delegation Delegation of Authority Centralisation Decentralisation

LEADERSHIP Meaning Foundation of Leadership Leadership style Leadership Model: (i) Trait Theories (ii) Behavioural Theories

269·292

(iii) Path Goal Model (iv) Contingency Theories 5. Emerging Approaches to Leadership (i) Leader Member Exchange Theory (ii) leader Participation Model (iii) Attribution Theory of Leadership (iv) Three Dimensional Model (vi) Normative Leadership Model (vii) Transactional Leadership CHAPTER

CHAPTER

17

GROUP DYNAMICS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Meaning Origin and Development of Group Type of Groups Physical Environment Personal Environment Social Environment Task Environment Group Discussions Strength and Weakness Team Work

18

ORGANISATIONAL STRUCTURE

1. 2. 3. 4. 5. CHAPTER

19 1. 2. 3. 4. 5.

CHAPTER

20 1. 2. 3. 4. 5.

293 - 314

315 - 339

Meaning and Characteristics Organisational Designs Factors Influencing Structure Classical Model of Organisation Structure Modern Model of Organisation Structure ORGANISATIONAL CHANGES

840 - 35Q

Goals of Organisational Change Approaches to Organisational Change Perspectives on Change Planned Changed for Development Intervention Depth TECHNOLOGICAL CHANGES AND BEHAVIOUR Technological Features Technological and Occupation Computerisation Total Quality Management Reengineering and Flexible System

a60 - 365

CHAPTER

CHAPTER

21

ORGANISATIONAL CULTURE

1. 2. 3. 4. 5. 6. 7. 8.

Concept of Organisational Culture Characteristics of Culture Types of Culture Functions of Culture Creating and Sustaining Culture Learning Culture Measuring Culture Communicating Culture

22

CORPORATE DEVELOPMENT

366·375

376·385

1. 2. 3. 4.

Corporate Development - A Perspective Corporate Development Process Corporate Intervention Traditional Approach: (i) Laboratory Training (ii) Grid Training (iii) Survey Feedback 5. Modern Approach: (i) Process Consultation (ii) Third Party Peacemaking (iii) Team Building (iv) Transactional Analysis

CHAPTER

23 1. 2. 3. 4. 5.

CHAPTER

24 1. 2. 3. 4. 5.

CHAPTER

25 1. 2. 3. 4. 5. 6. 7.

CORPORATE BEHAVIOUR

386·395

Emphasis on Behaviour System Approach Contingency Approach Social Approach Steps of Corporate Behaviour Modification and Behavioural Self Management CORPORATE DESIGN AND DECISION-MA!UNG

396 - 403

Concept of Corporate Design Approaches to Corporate DeSign Decision-Making Process Models of Decision-Making Quantitative and Behavioural Techniques PERFORMANCE EVALUATION AND REWARD SYSTEMS

Purpose of Performance Evaluation Developing Performance Measures Methods of Performance Evaluation Purpose of Reward Bases of Reward System Model of Reward System Careers and Corporate Development

404·410

"This page is Intentionally Left Blank"

PART-I

"This page is Intentionally Left Blank"

Chapter 1

ORGANISATION 1. 2. 3. 4. 5. 6. 7.

CONCEPT FEATURES TYPES FORMS SIGNIFICANCE APPROACHES THEORIES OF ORGANISATION

Corporate development depends on the speed of organisational behaviour and the organisational behaviour is affected with the behaviours of individual employees, their groups and structure. The foremost question that arises herewith is what is organisation. Initially, one can state that organisation is an association of persons for achieving certain objectives. Organisation is a social system wherein its members try to achieve their private goals while achieving the organisational goals. The seemingly contradictory goals are resolved by effective organisational behaviour. The organisation, namely, a unit, a business house, a government, an army, a charitable institution or any association of persons have some objectives which are attained by organising the activities of their members. Organisation for business purpose is commonly known as corporate body or corporation or company or formally established business unit. Organisation is a foundation upon which the corporate management is built and developed. Organisation is a structure, a process and a relationship to achieve corporate objectives under the given environment. Organisation is not static. It is dynamic and changing as per needs of the society, its members, corporate. objectives and changing of environments. Men form and developed organisations because individually they are unable to achieve the desired goals. They evolve different forms of organisation according to their needs. Organisation is a composition of people having different authorities and responsibilities to utilise the existing resources for achieving organisational objectives. Mooney and Reiley pointed out "organisation as the form of human association for attaining common objectives."l The authority, responsibilities and the relationships between and amongst the persons of the organisation as also a part of organisational functions. The definition of an 1. James D. Mooney and Alan C. Reiley: The Principle of Organisation. Harper and Brothers, New York, pp. 1-4.

4

Organisational Behaviour and Corporate Development

organisation cannot include all the nature and functions of the organisation. However, attempts are made to define "organisation as the process of identifYing and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives."2 An organisation is established for achieving certain well defined objectives. Once the objectives have been formed, suitable plans or courses of action are prepared, appropriate structure and arrangement are decided and the behaviour of individuals and groups of people are moulded to achieve the objectives.

FEATURES OF ORGANISATION Organisation isjust like a human body. It has some essential features e.g. structure, process, relationship, authority and responsibility, performance and behaviour of individuals and group.

Structure Organisation is a structure which is used to man people with specific relations and authority. Within the structure, people work to achieve the objectives. It is spelton in which organisation is built. Structure has formal character. It is an arrangement of relationships , power, roles, functions and objectives. The structure is well defined and formulated for grouping tasks, grouping job, delegating authorities, allocating responsibility and accountability along with the number of persons involved at the managerial hierarchy and shop floor level. The organisational structure helps the management task done easily and smoothly through identification of different tasks, grouping together the similar activities, assigning the tasks to individuals. The allocation, supervision, coordination of the management, functions are essentially designed under organisational structure. The formal relationship among persons working at different levels, well defined authority and responsibility and individual actions and interactions are the bases of structure of an organisation. The structure concentrates on division of work, specialisation, departmental delegation, formal relations, authority and responsibility, coordination of work, job design, grouping of jobs and work allocation. The structure is formally designed and work is performed strictly according to the role of structure. It is observed in practice that flexible type of organisational framework is formulated so that at the time of need for development and growth, the basic structure may not be changed. The mechanical system of organisation structure is not preferred to organic system of structure. The structure or frame work of an organisation should be adaptable, flexible, problem solving and professional. The different leyel or form of structure be interlinked to perform the jobs effectively and efficiently. Structure; in itself is not a solution. It requires people and their related activities. The structure should be framed on the nature ofjob and the characteristics of people who will use it. Structure is developed for people to work and not to fit individual personalities. Process Organisation is an operation within the structure. It is just like a body structure wherein the functions of each organ of the body are defined and specifically performed. Organisation like a body is an ongoing process of structure. It is a process of managerial function. It aims at organising work, arranging people and system, developing technology, designing communication and providing organisational climate. The organisation is concerned with the organising process including the decision of the course of action, division of various activities, assignment of the 2. Louis A. Allen: Management and Organisation. McGraw Hill, p. 57.

Organisation

5

task to proper persons, delegation of authority and responsibility, coordination of the various tasks and decision of control mechanism. It is a means to an end and is a dynamic and adaptive process to innovate the suitable process of management functions with the changing environment. Organisation process includes breaking up the entire work in different segments assigning definite role to each person, coordinating and integrating the different functions to achieve corporate objective with minimum effort and resources. Many authors have therefore defined "organisation as a process of division of labour and function, co-ordination through authority and responsibility and putting people at place to work."3

Relationship The organisation sets up certain forms of relationship to enable its workers to perform their jobs harmoniously. The relationship is defined and designed as per the need of the organisation. Functional relations are developed to perform the activities ofthe organisation. The established relationship is useful for training and development of the human resources. The organisational relationship is established on the bases of process, geography, department and product. The relationship is developed in such a form as there is scope of adaptability to the changing environment to avoid complacency, stagnation, and inefficiency. Organisation is a group wherein people work. Therefore, person to person relationship needs to be defined clearly. The superior subordinate relations, the superior-superior relations and subordinate-subordinate relations are established for smooth functioning of the organisational activities. The group interaction model has direct impact on motivation and productivity. The organisational structure presents different types of relationship with a unified whole for achieving the common goal of the organisation. The hierarchical relationship finds persons operating at different levels of the organisation for achieving the common goals of the organisation. Authority and Responsibility The structural relationship becomes effective with the allocation of authority and responsibility. Each cadre is specifically assigned the authority and responsibility to be performed. Each member ofthe cadre must know the rights and power to be exercised to perform their duties. The authority and responsibility is ultimately vested with the top management. Since he cannot perform all the jobs; he has to delegate some of this authorities 'and responsibilities to the lower cadre. He has to decide what part of his work will be entrusted to his subordinates and what part of the job will be retained by himself. Organisational structure has well defined authority and responsibility, explicit or implicit. Organisational ranks and cadres are developed to delegate authority and responsibility. These should be sufficient rank based on seniority, title, status and so on to provide adequate administrative leverage. It requires clear delineation of authority and responsibility, internal conflicts develop. Moreover, there should be enough scope of human relationships while delegating authority and responsibility. The organisational authority and responsibility have been exercised in different forms from 'herd' concept to group concept from time to time. Herd concept placed exclusive power with the leader and enforced unquestioning obedience in his subordinates. Organisational evolution took the shape of person-to-person concept thereafter, under this concept, the subordinates perform their functions in terms of a direct relationship with their superior. It involves delegation of 3. Scheir, Edgar H.: Organisational Psychology and Dale Ernest: Organisation,

6

Organisational Behaviour and Corporate Development

authority and responsibility from superior to subordinates. The modern concept of organisation believes in development of mutual and harmonial relationships between subordinates and subordinates as well as with the superiors.

Performance The organisation, by its performance, tries to achieve synergistic results which refers that the whole organisation is greater than the sum of its parts. The organisational structure and process are designed to achieve the goals and objectives through effective performance which is possible with human resource development. Organisational development programme maximises work motivations and creativity. Job enrichment, job enlargement and job satisfaction are basically considered under organisational performance. Specialisation is the hard core of organisation. It helps effective performance of the job. Discipline, unity of command, ministry of direction, scalar chain, decentralisation and coordination are properly exercised in the job performance of an organisation. Behaviour of Group Organisation is a composition of people. The success of organisation depends upon the behaviour of the people and group. Individual group and structure are the bases of group behaviour. Relationship with person to person, and subordinate to subordinate as well as with the superior are established in a group. Formal and informal organisations are developed for proper behaviour of a group. Group behaviour has given birth to team work which has been accepted as most effective form of organisation. Team spirit, team performance, team rewards and team motivation have achieved new dimensions in big organisations in the beginning of the twenty-first century. The concept of family ha:s been implanted into organisation. Group of an organisation have more effective behaviour. They can achieve something more what individually they cannot achieve. TYPES OF ORGANISATION The types of organisational structure and process depend on the social set up of the country and the objectives of the business. Various jobs of the enterprise are integrated into an effective operational system. The enterprise defines the duties and responsibilities of people at each cadre. The functional and the divisionalised types of company organisation are generally prevalent in company organisation. Line, line and staff, staff and committee types of organisation are well known in public administration and military organisation. Business organisation maintains some flexibilities so that the upward and downward movements may be possible at the time of development and declineofthe business. This type of organisation facilitates decentralisation and choice between product and geographical structure. The types of organisation are line, line and staff, staff, functional, project and committee organisations. Organisation: Line and Staff The line and staff organisation is a mixed form of line as well as staff organisation. Line organisation points out direct vertical relationships i.e. superior-subordinate relationship connecting the positions at each level. It forms a chain of command or hierarchy of authority on scalar principles. The line relationship is simply known as authority relationship between the superior and subordinates at hierarchical arrlUlgement. The direct line superior has control over the immediate subordinates. In this case authority flows downward and accountability goes upward in a straight line. The work also flows in direct line. The line officers are responsible for accomplishing basic objectives, for that they can issue orders and implement plans and policies

Organisation

7

with the help of their subordinates. They are authorised to maintain discipline. The line organisation maintains direct communication from the higher to lower levels and vice versa. If it is useful for maintaining discipline, it is totally useless for flexibilities and specialisation. It becomes autocratic and dictatorial. It is not used in business organisation. Staff organisation is a specialised organisation. It is purely advisory having no authority of functions. It helps the line organisation for effective and efficient performance of business. Staff organisation have authority of investigation, research and advise to persons at the command of the functions. They provide technical or special advice to line organisation. They may be personal assistant, personal secretary and so on. There may be staff organisation pertaining to law, accounting, research and development, quality control and so on. Line and staff organisation is composed if line as well staff organisation and is useful for business operation. The advantages of specialisation and of functional activities are available under this organisation. The line feature maintain discipline and stability whereas staff brings expert knowledge. Legal Accounting Public Relation

-

Economist Specialised Policies

I

1-

Line

-

I

Staff 1

Fig. 1.1 Line and Staff Organisation

Line organisation takes help of staff organisation with reference to law, economy, accounting and specialised policies. Line organisation has grown up because of ever increasing role of staff people. The need for staff organisation is felt because of emergence of large scale enterprises growing knowledge and technology, specialised services and so on. The socio-economic conditions in the country have been fastly changing. The enterprises operate amid complexities and dynamic environments. There is need to secure advices from different fields such as science, technology, mathematics, operations research, systems analysis, psychology, sociology, computer applications for the effective functioning ofline activities. The help and advices rendered by the staff people are very useful to the line managers who are always busy with routine functions. The line as well as staff organisation are workingjointly and without friction as the line men usually perform physical function whereas the staff people perform mental exercises. When t!lese two functions are segregated and are looked upon from the angles of lower or higher tenets; the problem of frictions arise. The joint motto of the two organisations are shattered. Both the types of organisations work in cooperation as line specialises in action and staff specialises in contemplation. The knowledge and expertise of staff organisation supplement as well as

8

Organisational Behaviour and Corporate Development

complement the line organisation. The cohesiveness between line and staff has to continue because both the organisations llave certain advantages. Staff organisation has capacities to think, advice analyse, research, recommend and supplement knowledge whereas line organisation is authorised to perform, command, execute policies and plans, establish superiorsubordinate relationships and all operational duties and responsibilities. The line organisation has authority and is responsible for production, marketing and finance, whereas staff has no authority over the line. Staff organisation is unable to cope with the problems of business, the staff organisation comes to their rescue. It helps reduce costs of production, distribution, advertising etc. The line and staff organisation develops conflict on certain grounds. The staff is viewed as too much technical and theoretical by the line while the latter is known as authoritarian and rigid. The staff has a feeling of being neglected by line managers. The staff is highly knowledgeable while the line is less known but having more authority. These is a need of complete cohesiveness and confidence between staff and line organisations. It has been observed that the companies having staff recognition are growing satisfactorily. In many cases, staff performs as personal assistant or personal secretary to the line managers. They represent the organisation and have more informal authorities. Staff is well regarded by line people. The success of an enterprise depends on how the line and staff organisations work with close cooperation and confidence.

Functional Organisations Functional organisation is technically called functional foremanship because functions itself becomes as a supervisor and the employees are automatically performing their respective functions. The emphasis is on operations rather than on management,. The functional organisation is commonly used in business. The spirit of organisation, that is, the grouping work together and allocating them to genuine employees is observed in functional organisation. The functional sets like marketing, finance, production and personnel are grouped systematically. Departments and subdepartments are developed according to requirements of the business activities. Functional organisation is the basic building block or module from which other forms of organisation are built.

Fig. 1.2 Functional Organisation

The functional organisation is characterised by functions, sub-goal emphasis, division of work, functional relationship, centralisation and decentralisation, span of control, divisionalisation of product and regionalisation. All employees are not equal; they have distinctive and special interests to different activities but some of them have similar interests and qualities, who are to be grouped together to form a set of similar activities. Their performance and control become easy. Effectiveness of the organisation is increased with the development of functional organisation which may be horizontal or vertical. Horizon t 3.1 functions include those activities which are performed with the same amount of authority and responsibilities at the same level. In the figure 1.1 the finance, production and other activities are at the same level in the hierarchy

Organisation

9

of organisation whereas the relationship between general manager and other functional managers is vertical. The higher level has influence on the lower level individuals. People who are connected with formulation of policy having high degree of authority and responsibility are termed as general manager, top manager or top executive. The persons at lower level are responsible to carry out the functions to achieve the goals set by the top executives. Persons having innovative thinking, entrepreneurial skills and initiatives are placed at the ~op and other persons having skills of performances, supervision, grouping and driving spirit are put out at the lower level of management. Similarly work can be subdivided according to each point of the total activity and suitable people are entrust~d the jobs of performance. Functional organisation is developed for exploring the specialities of people who concentrate on their specialisation and preference. Sub-unit goals are achieved effectively with the specialised functioning. Growth is possible with the use of horizontal and vertical organisation. The advantages of line and staff organisation can be fully achieved only with the development of functional organisation within them. The performance and achievements are operating goals of organisation, which can be attained if the functions, sub-functions and other lower functions are diversified and well defined and the suitable persons are entrusted to these diversified functions for which they are personally responsible for operations and achievements. Although multiple supervisors come into operation, the main functions of organisation are not diluted as the functional authority is next to line authority which exists in every type of organisation. Functional specialists are endowed with !!ommand of functions and their effective performance. The c00rdination of different functions is done by the line organisation. The centralised authority and decentralised functioning are visible in such cases. With suitable span of management, control of different functions become easy under functional organisation. The advantages of functional organisation are available in th6 form of specialisation, coordination, suitability, skill development, economics of scale and flexibilities. When some similar activities are grouped together and developed for meeting the challenges of organisation, specialisation comes into picture. Each manager is concerned with only one kind ofjob. It develops the hierarchy of skills and retention of functional organisation. The specialisation helps economic uses of physical and human resources, increase quantity with quality and diversify product functions. If the basic nature offunctional organisation is retained, specialisation can meet new challenges of markets. Innovation and modernisation will be feasible when some specialised persons are performing selected jobs, coordination of all the functions becomes essential. Individual functions are linked and brought under the umbrella of corporate objectives. If the segregated functions are not properly aggregated, the advantages of specialisation will not be achieved by the company. The top executives control the activities of all the departments which are allowed to function on specialisation. The coordination helps uniformity, unity of command and standardised functioning. The functional organisation is suitable for all sizes of business and production units as their efficiency, quality products and automatic operations becqme easy. Standardisation has become an essential function of management. It helps skill development of employees who are exposed to a range offunctional activities in their respective departments. Discipline is maintained by the experts not on abstract basis but at operational level. The functional structure is economical as only one function is given to an employee who performs the job quickly and qualitatively. All the factory plants, machinery, raw materials and money are utilised effectively and efficiently. The cost of production and distribution per unit is minimised as more production is possible with the existing .resources. The functional organisation is not rigid, it can increase or decrease along with the life of business operation. Divisionalisation

Organisational Behaviour and Corporate Development

10

may cover all the expansion whereas the closure of one division will facilitate the sprinkling of the business activities. The lower level staff may be promoted to higher level in case of expansion and the higher staff may be given lower job in case of contraction of business functions. Centralised leadership is made flexible to incorporate any sort of expansion and contraction is functional organisation.

Product Functional Organisation Product functional organisation establishes each product or group of related products as autonomous unit in the framework of the organisation.

Chief Finance Manager

Chief Marketing Manager

Product B

Chief Production Manager

Product C

Chief Personnel Manager

Product D

Fig. 1.3 Product Functional Organisation

Fig. 1.3 reveals that each product has separate identity although they are functioning under the control of the chief coordinating executive. Each product department has several functions broadly divided into finance, marketing, personnel and production which has also coordinated with the chief of the respective functions. The main advantage of the product functional organisation is the qualitative production under the supervision of the expert personnel to produce a particular product. A company may be producing steel almirah, soap, refrigerator, typewriter, computer etc. which are managed by the respective engineer experts in the areas of their product. The overall control and supervision of the higher executives are essential for maximum utilisation of the existing resources without incurring wastage. It means rationalisation is exercised with the use of product functional organisation. The example of Fig. 1.3 is a guideline. There may be changes in the structure as per needs of the company. The authority-responsibility relationship is also established according to the structure. Chain of command is developed as per each product based on vertical and horizontal structural relations. Delegation of authority is exercised for effective functioning at different levels of management.

OrganisatJon

11

The product functional organisation necessitates to find out the economic viability of each product. Some of these products are required for image building. For example, Tata is famous for steel although it has entered into consumer markets. There is need of constant watch and evaluation of the performance of each product. If the company is producing a large number of products, all the products will not form the product organisation because that will be very uneconomical organisation structure. The related products are grouped together and are managed under the main product organisation. Innovation, interdependence, economy of scale and divergent production are feasible under product functionalisation.

Process Functional Organisation Functional organisation becomes effective if each process of a production is given autonomy and independence. The nature of the production helps decide process organisation. For example, a textile company has several departments based on process e.g. spinning, weaving, materials managements, and so on. Each department is looked after by the expert of the area. Taylor has given functional foremanship based on process functional organisation. The office work is separated from shop or plant functions and each ofthese process forms a base of the organisation.

Fig. 1.4 Proc~s Functional Organisation

Fig. 1.4 has demonstrated the process functional organisation of a spinning mill. Similarly, the weaving, inventory and other areas of process will have their respective organisation. The chief production manager will coordinate and control their activities to maintain uniformity. The line authority is also maintained in this organisation.

Geographical Functional Organisation Geographical functional organisation involves grouping of the activities according to regions or geographical locations. The territorial divisions become complete administrative units to cater to the needs ofthe localities.

Organisational Behaviour and Corporate Development

12

.

Managing Director

I

t

t

Regional Manager North zone

Regional Manager West zone

~

~

Divisional Managers

Divisional Managers

t

+

Regional Manager South zone

Regional Manager Central zone

Regional Manager East zone

1

!

!

Divisional Managers

Divisional Managers

t

Divisional Managers

Fig. 1.5 Geographical Functional Organisation

Regional manager will be practically chief controller of his region. He is given full power of managing his own region or zone. His office functions as a head office for all practical purposes. The functions pertaining to finance, marketing, personnel, production development of class III employees are completely vested in the zone office which have separate departments of these functions to guide and control their respective activities of the zone. The zone office may have several divisional offices for executive functions. The area population and size of business in a zone will decide the number of cn.visional offices, their functional activities and the amount of authority and responsibility to be vested in the divisional managers. The divisional managers may have several branch managers to manage the affairs of each branch in the division. The branch managers will be the real managers to manage the affairs ofthe company. The production and business are performed by the branch offices which understand the local requirements and sensitiveness of people. They can utilise the local conditions and can capitalise on the local situations, raw materials and market. Most effective and useful form of divisional functional organisation can be observed in case of Life Insurance Corporation of India.

North zone

North Central zone

Fig. 1.6 Divisionalisation of LIe

18

Organisation

The decentralisation of LIC has given very useful results as the efficiencies, effectiveness and economy of the LIC functioning has increased. There is enough scope of utilisation of existing resources of the corporation as well as market potentials in the field. The Indian Railways, Indian Oil Corporation and other public and private sector organisations have been benefited with the divisionalisation. Coordination and control are exercised by the Central Office. Each unit of branch is effectively managed as per the local conditions. The Human Resource Development is possible at company level. The management are feasible under the divisional functional organisation.

Project Organisation Project organisation is used to complete a project or task. The project manager has people from several functional departments such as production, finance, marketing and so on. The specialists are drawn to perform their respective roles in the total projects. The structure is derived not from some principles but from the job requirements. Project organisation brings people of different expertise for the completion ofthe project. As soon as the project is completed, the experts are returned back to their original depart~ents in the head office. For example, in a bridge construction project, the engineers, financial manager, human resources people and other related people are brought to the site of the project where project organisation, the structure and process, is developed. The people are organised and allocated specialisedjobs by the Project manager who will be the top person to manage the project by utilising all the resources. As soon as the project is completed, the employees are returned back to the head office or transferred to another project.

,

Project Managers

Managing Director

Marketing Engineering

+ Finance

I

,

Production

+

General administrative

Fig. 1.7 Project Organisation

The specialists in each project will differ from project to project. Fig. 1. 7 reveals that project B does not require marketing and research and development. It is performed with the help of other specialists. The project organisation is also called as grid or matrix organisation as the project and functional organisations are going simultaneously. The functional departments are getting authority on vertical flows whereas the people are governed by the project manager. The responsibility flows vertically. The project manager has to coordinate the functions of all the personnel working under him. The project manager also returns back to the head office or shifts to other project after completion of the project in hand. The project organisation is an effective way of pooling of quality and experienced people to perform a specific project within given time and money. This type of organisation reduces the burden of the main organisation

14

Organisational Behaviour and Corporate Development

while concentrating on new projects. The project organisation like product functional organisation concentrates on quality product. The project organisation is useful for meeting buyer's specific requirements of building, factors, structure, plant and machinery etc. The product innovation, research and development and other specific requirements are easily possible with project organisation. Since the project organisation is a one time task, it is definable in terms of time, quality, cost, scope, agreement, job, contract and so on. It helps achieve economy of scale, quality projects, and timely performance and completion of jobs although much of the success depends on the attitude and experience of the project manager who has to evolve team spirit amongst the employees engaged in the project. The conflict between horizontal and vertical authorities should be properly resolved by the proj6ct managers to get the benefits of project organisation. However, the project manager has no authority of punishing erring employees or awarding efficient employees. He may inform the top executives about their performances, who can take nec6ssary action for and against the employees. The success and failure of project organisation depends upon the relationship of authority and responsibility between project manager and the top executives while managing the expert employees ofthe organisation. The project management has given facilities to contact project managers of different projects to highlight the needs of the organisation and for succ~ss of its management. If the relationship between the functional members are unclear, many problems may crop up and the project organisation will be unable to achieve its objectives. The responsibility of project manager cannot be understood. He has to coordinate and control th~ activities of project organisation sincerely and systematically.

Committee Organisation Committee organisation is an association of people for deciding a common problem's solution. The line people are given opportunities to discuss their problems in the committee. This organisation is not like line or functional organisation, but is similar to staff organisation. Its decisions are implemented whereas staff's decisions are not necessarily to implement. It is the formal part of the organisation structure wherein the members are specifically mentioned. For example, Finance Committee will include all the functional managers viz. marketing manager, production manager, personnel manager etc. as members and the managing director as the chairman,. It will decide the financial requirements of each and every department. The decision taken by committees are followed by the line people as the committees are representatives of various functional departments. Committee organisation provides integrated ideas of various related people ofthe company. Participative management in true form is visible under committee organisation. It is an incentive to volunteer to form an integrated idea generation and willingly following them. New ideas and solutions of various problems are feasible with the committee organisation. It is a very good example of democratic management wherein every member has equal opportunity to raise their voice and come to a common solution. Flexibility and technical excellence are possible under this organisation. The top management is relieved from certain problems. The company can encounter the changing and uncertain environment in a better way. It facilitates high quality and innovative solutions to technical problems. Coordination and control become easy because open discussion is invited in the committee. The ideas and specialised functions are feasible under committee organisation. However, committee organisation may prove ineffective in some cases because oftime consuming and inefficient devices, aggressive attitudes of some persons and inactive role of a particular group. The committee organisation should not be used to supplement or support inefficient managers. An able and competent top manager having capacity to handle the proceeding of a

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committee and manage the disgruntled employees in the meetings can get maximum benefits out of committee organisation. On the contrary, a weak and submissive manager or chairman may invite a number of problems in committee organisation.

FORMS OF ORGANISATION Organisation can be formed with certain properties and specific characteristics. Since it is ar. association of persons, the manner of forming and objectives of the association decide the form of organisation. Individuals form organisation because they are unable to achieve their goals individually. Organisation provides opportunities to exploit the existing potential of men and materials. It explores the future possibility of exploiting the human and physical resources. The individuals interested to get benefits out ofthe present and potential resources form some association, well known as organisation to attain the group goals. The dynamics of individuals and the organisation are used to gain maximum benefits. They work in a particular manner to obtain the objectives. They for'll certain formal and informal organisations. Formal Organisation Formal organisation is developed in a w~n defined system having specific properties. It bears definite measures of authority, responsibility, obligation and accountability for attaining the specific objectives of the organisation i.e., company. Although there is no uniform structure of formal organisation, but the structures formed are well defined and their functions are well known to individuals attached, who will carry out their responsibilities for the organisation as a whole. The formal organisation has certain special features such as definite objectives, specialised function, unified command and other specific properties. Objectives Formal organisation has well-defined objectives. The organisational objectives are laid down for the individuals to achieve systematically. These objectives will facilitate policy formulation and planning process. The objectives are established after predicting the future needs of the consumers and potential technology. The objectives are broken in small part which are known as goals to be achieved within a specified time by a set number of individuals. Their attitudes, capacities and character will determine the form of objectives. The individuals are working with rationality to perform their jobs. Specialised Functions The individuals of an organisation have specialised functions. They are assigned the jobs, duties and responsibilities so that their attached objectives are achieved within a specified period of time for which they will be responsible and accountable. Their achievements and failures are individually known. The specific jobs are performed by specialised and expert people. These responsibilities and authorities are well-defined there is high a degree of work specialisation. Formal Structure The structure of organisation is specifically laid down for adopting people to work. The specialists will perform their jobs within the structure already laid down by management. The superior and subordinates as well as superior and superior relationships are specifically given in the structure. There is no place of arbitrary structure. The management clearly lays down the form and body of organisation within which individuals will perform their respective jobs. Chain of command, formal structure and other methods are used for developing formal structure.

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Organisational Behaviour and Corporate Development

Perpetual Functions The functions of an organisation continue where individuals are constantly involved. A person may come and go but individuals as whole perform the function perpetually. Coordination Since individuals are performing their respective jobs, their activities are required to be coordinated to attain the corporate objective of the organisation. Committee or some other definite form of organisational set up is developed for coordinating the activities of individuals and departments. The coordination and control are essential in formal organisation to lead the performance in a right direction. Unity of Direction Formal organisation with specific structure and activities are managed under unity of direction. Rules and regulations are extensively used in the formal organisation. Jobs become routine and mechanised. One-man command helps unity of direction. Individuals have to work within the structure and framework of the organisation. They do not have specified time. Informal Organisation Informal organisation is an association of persons without any formality and complying rules. Persons having common characteristics and motives form such an organisation. The common characteristics are based on liking, disliking, religion, caste, creed, race, language, regions, education, cadre etc. They become a strong force in the company and out of company because their ties are based on some concrete understanding and sentiments. They form natural association. The informal organisation should not be confused with the organisation having no legal sanctity. The informal organisation mayor may not have legal identity but their force is much more useful. It the leader belongs to their sect or religion or region, employees regard him and develop allegiance to him. It becomes easy for the company to manage such employees because managing employees with formal authority sometimes becomes ineffective. Therefore, many Indian corporations have appointed leaders of the some sect and region to which the employees belong. The informal organisation is spontaneous and people need no formalities and well-defined activities for organising such an association. The spontaneous and natural support of employees of a particular region at every level of management form their association to impress upon the employees who can use them effectively by honouring their sentiments. It has been observed that formal organisations have been more useful than the informal organisations in many cases. Many subordinates in private enterprises perform extra work out of sheer respect to the superior and not by way of compulsion offormal relations. The organisation heads and other managers in the hierarchy, generally, use informal relations with their subordinates. They informally discuss the problems and find suitable solutions thereof. Formal organisations without use of informal relations cannot effectively perform their duties. It has been accepted even by bureaucrats that informal relations make job more easy and effective because the informal communication satisfies the attitude, impulses and ego ofthe subordinates. SIGNIFICANCE OF ORGANISATION Organisation is essential for the continuity of the mission and objective for which it is formed. The organisation as structure and process guides, coordinates and controls the business activities. Organisation if structured on sound principles will help achieve management objectives. The ill-designed and makeshift organisation make the management functions difficult

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and inefficient. Organised man is a source of creativity, synergy and coordinated activity. Organisation helps management to perform its activities effectively, optimum use of technological improvement, growth and diversification, creativity, effective use of physical resources and development of human resources.

Management Functions The management functions, viz., planning, organisIng, activating and controlling are performed effectively and efficiently. Sound organisation helps perform all the activities smoothly, inadequate organisation may discourage managerial activities, coordination and control. Therefore, there is need to develop a sound organisation for effective administration with certainty and continuity. Different activities are clearly divided and defined for performance whereas most suitable persons are appointed to manage their respective activities. Research and development, production transportation, marketing and finance etc. are the distinctive functions of management which are performed separately with coordinated efforts. Sound organisation helps proper delegation of authority and responsibility. Division of work helps the employees to perform their activities easily and satisfactorily. Optimum use of Technological Improvement Organisation helps optimum use of technology. Since it is flexible and structured to accommodate improvements, extension and so on. Automatic controls and data processing becomes feasible under a sound organisation. The scope of decentralisation makes it possible to incorporate several technological developments and increase efficiency. Centralised management group takes decision immediately to augment the effectiveness and economy because it uses new methods, new knowledge and new materials. Automation and the widespread use of computers are important facets of the technological factors. Organisation solves the corporate's problems by creative and intelligent application of technology. Growth and Diversification Organisation is the base on which the company grows and diversifies its activities. The organisation structure is developed in such a form so that expansion and diversification can be feasible without wastage. The organisation while facilitating day to day functions and effective management of all the activities, anticipate the need of changes and helps growth of the corporate body. The branch offices, divisional offices and regional sub-head offices have immense scope of incorporating the growth and diversification activities. Departmentation has further increased the scope of inclusion of management activities and met the local demands and exploit and existing resources. The divisionalisation develops inter-competitive zeal for excellence. The Life Insurance Corporation has successfully used the organisational set up for increasing its business and provide expansion of its functions. Many private organisations have developed on the bases of expansion and growth. Human Resource Development The enterprises are working in a knowledgeable society and have to function by well regarding the labour force. Human resources have demonstrated outstanding ingenuity and adaptability for survival and growth of a company. Specialisation has increased speed of production although giving monotony and frustration to employees. Therefore, there is a need for well regarding and developing human resources. Improvements of morale and capacity of employees will enhance productivity.

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Organisational Behaviour and Corporate Development

APPROACHES TO ORGANISATION The approaches to organisation have developed from time to time in different forms. There have been different approaches to organisation but they are broadly classified into three categories viz., classical, neo-classical and modern approaches.

Classical Approach The classical means traditional or established approach. It does not mean that the classical approach is old and obsolete. Some of the approaches are very useful even today. Theories developed at the early stage were included under classical approach. Bureaucracy, administrative and scientific approaches are well known under classical approach. They emphasise on the structural or functional factors. The classical approach stresses on four Ss. i.e. structure, specialisation, scalar principle and span of control. It has emphasised on organisation as structure. The classical approach is well known as theory. It treats employees as economic beings like machine and money. Their maximum exploitation is suggested by applying bureaucratic and coercive approach. Hire and fire is the basic approach of classical thinking. It leads to dehumanised organisation structure without considering the flexibility and adaptability. The rules and regulations become the governing factors. Specialisation based on division oflabour, scalar chain hierarchical organisation, discipline etc. are the advantages of classical approach. This approach has ignored the significance of human beings in organisational growth. There is an absence of flexibility, adaptability, intrinsic rewards and personal attachment. Ignoring initiatives, innovation and changes is not beneficial for the health of the organisation. Neo-classical Approach Neo-classical approach emphasises that the organisation is a social system in which individuals are important elements of management. It is people oriented approach although the basic tenants of classical approach i.e. specialisation, unity of command, hierarchical organisation are preserved under this approach with modified forms. It is behavioural science approach and gives importance to human relations in the organisation. It is very well known as Theory Y, that is people oriented approach. It believes in informal organisation and relation along with the formal system. The motives, needs, desires, morale etc. are considered important factors of organisational success. Men if properly managed and motivated, can contribute more by utilising physical resources. Unlike classical approach, it gives more importance on human behaviour rather than on economic well being of people. The organisational structure developed by classical protagonists can gainfully be used if the human beings attached to the structure are willing and enthusiastically performing their assigned jobs. Coordination and control which were forced and extremely imposed upon the employees under classical approach are self generated and practised under neo-classical approach. Democratic participation is suggested by developing the human beings. It is humanised approach. The social factors are given more importance while organising the people. If classical approach emphasises on structure and framework of organisation, the neo-classical approach suggests on functions by willing cooperation of employees. Neo-classical approach has defined activities of group wherein inter and intra-group activities are perpetuated. Need of proper communication, human satisfaction, social values, environment and other socio-psychological approaches are well regarded under neo-classical approach. Modern Approach The disadvantages of the classical approach were modified under neo-classical approach. However, neo-classical approach cannot give the final shape to an organisation because of diverse

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problems of individuals, group and social units. Therefore the modern approach is developed wherein the process is to be performed under a set structure and system. Within the structure or system, the individual acts, reacts and interacts as per change in individuals, groups and society. The environmental and technological changes are well evaluated and the management functions are adapted accordingly. It believes in changes and organisational adaptability to increase efficiency of the organisation. Organisation should provide scope for including the changes. The organisation should not be rigid, ruthless and rules dominated, but it should be adaptive, open and creative. The role of leader is much important in the organisation because he can rightly monitor the functions with the changing situations and environment. The system formulates sub-systems which will work with certain intel,'- and intra-relationships. The environment oriented approach is also known as contingency approach wherein situational and transactional solutions are deciding factors of an organisation. It requires appropriate organisational structure and effective leadership style. .

.

mEORIES OF ORGANISATION Based on approaches of organisation, some authors developed theories of organisation. They are well known as classical theories, neo-classical theories and modern organisational theories. Classical Theories Classical theories are based on traditional thinking. These theories began at about 1900 and incorporated original and initial ideas of management. The classical theories devoted mainly on superior's authority, objectives, rules and economic activities. The theories are broadly divided into (1) bureaucracy, (2) scientific management and (3) process management. Bureaucracy The bureaucratic model developed because some people tried to dominate others in business and other activities. They organised men and materials for getting the objectives achieved for their personal benefits. This theory got formal shape by a German sociologist, Max Weber, who believed that bureaucracy was' an ideal weapon to harness the human and physical resources. It is a formative model of organisation characterised by large and complex atmosphere with impersonal detachment from human resources. Rules, regulations, rigid hierarchy and specialised functions are important features of bureaucracy. It.is an epitome of structural relationship to control. Features The hierarchy of authority involving superior-subordinates relationship is the main feattH-e of bureaucracy. The superior has more authority to control the subordinates. TP.ere is a chain of superior-subordinate relations. There is clear cut division of work where upon the structural organisation is based upon for getting the benefits of specialisation and functionalisation. Rules, regulations and procedures are considered important functional guidance of management. The importance of routine, objectivity, uniformity and consistency are used under bureaucracy. Behaviour is controlled by rules and regulations. The disciple is judged from the angles of following rules and regulations. Impersonal attachment is observed always in this organisation. Personal, interpersonal and mutual relations have no place in the bureaucracy. Organisational forms, speed, use of files , strict subordination are observed in this type of organisation. Rigidity and uniformity are basic principles of bureaucracy. Authority and power rest with the office. Persons occupying an office have all the legal power and authority of the office. The person is secondary and the methods are primary.

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Organisational Behaviour and Corporate Development

Assessment of Bureaucracy Bureaucracy model is unsuitable to the present requirements of the management. It is just a machine model wherein people have to follow the method and modes ofthe organisation. It J,Jlay be preferred where change is not needed. Government and military organisations are adopting this principle because their main purposes are discipline and complete follow up of the rules. It is not suitable in business organisation because of rigidity, impersonal, too much and mechanical methods of control. There is difficulty of coordination and control. It does not give satisfaction to employees because it does not give importance to their needs and motives. The bureaucracy is present is military organisation, technical management red tape, officialdom and so on. Its disadvantages are being realised these days in public administration also. Scientific Management Scientific management theory was propounded by F.W. Taylor and was carried out by Frank and Lillian Gilbreth, Henry L. Gantt and Emerson. Taylor thought that management was haphazard and inefficient at that time. The management was based purely on individual's capacity. The personal talent of a manager guided the workers who were motivated by bonus and monetary benefits. So, F.W. Taylor tried to find out the basic principles of management by using time and environment study, detailed analysis, investigation and planning of work allocation. It is known as scientific management because systematised knowledge is used for work allocation and assignment of specific job. The salary, wage etc. are to be decided as per the work performance of individuals. It revolutionised the entire shop or plant management. Industrial engineering and management was promoted by Taylor. The scientific management tries to perform the job in a best way. Features The essential features of scientific management are given below: (i) Scientific Selection of Personnel

F.W. Taylor places great emphasis on scientific selection and training of workers. It stresses on selecting suitable persons for the job. All persons cannot perform a particular job. Persons have different capacities and attitudes. So they are selected for best suited job.

Incentives Workers are inspired to perform the job if they are paid according to their contributions. So, Taylor has suggested differential piece rate system for wage determination. It requires planning, analysing, preparing and inspecting work performance and determination of standard production in a specific time. If a worker performs better than the standard, he is paid wages at a higher rate. (ii)

(iii) Functional Foremanship Work itself becomes a supervisor because the worker performing the function is interested to get more wages by producing more and more units. The supervisor has functional authority. He guides and directs the way of performing the job. Many supervisors based on different motives of jobs are guiding persons to perform the job effectively and efficiently. (iv) Specialisation Specialisation is developed in scientific management. It points out the managerial and nonmanagerial functions. Persons capable of managing the functions are given the jobs ofplanning

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and control while workers having capacity of work performance are placed for production and performance.

(v) Coordination Since the jobs are performed by different specialised persons, coordination of their activities becomes essential. Management should organise the activities in such a way as it can perform its activities effectively. Coordination between workers and managers as well as amongst themselves is essentially performed in scientific management. (vi) Economic Performance Workers are considered economic beings. They utilise the physical resources in the best manner to get maximum production out of the human and physical resources. (vii) Work Order Workers perform their jobs in a systematic order. The raw materials, machine and time are used in a systematic way. This puts the workers in maximum utilisation of their capacities and resources available to them. The materialistic approach is always visible in the work order. Frank and Lillian Gilbreth experimented the motion study propounded by F.W. Taylor. They studied time and fatigue involved in the 'work and concluded the needs ofjob simplification, meaningful work standards, incentive wage plans. He became known as the father of motion study. Henry L. Gantt made some important contributions to scientific management such as comparing plans with performance, task and bonus remuneration, teach and train workers and emphasis on services given by workers. H. Emerson contributed to efficiency engineering development at work. He emphasised on educating workers for increasing their efficiency in production, which will benefit the employees as well as the management in the long run.

Assessment Scientific management contributed at production level. It created revolution in the fields of engineering, production and work performance. It contributed to efficiency, standardisation, specialisation and simplification. Centralised control mechanism was developed to harness the maximum opportunities with the existing human and material resources. The basic tasks were given prime importance on the basis of analysis, planning and control functions. It aims to increase the efficiencies of human beings by giving them ample opportunities of using materials and machines in invention of scientific management, faster and better methods of production as well as efficient use of organisation and management were developed. Management can get success through the use of science and technology; the industrial efficiency increased on account of scientific management. Man was equated with machine. It was revealed that those workers who are working as ." machines are well awarded. The man's motives and desires had no place in scientific management. It was more people oriented rather, it was work oriented. Mechanical performance and management worked satisfactorily but on human relations it has become totally obsolete. Man was considered as rational and not emotional being. It treats that man wants money only and provides maximum opportunity to exploit employees. Scientific management fragments the whole work in small units which are allotted to individual employees who are controlled mechanically. The fragmented jobs dehumanise the employees and reduce them to the level of machines. It provides a sort pressure in the minds of workers to get more wages by over exertion. It pays no attention to the health and desire of the people. Even the managers are subject to rules and regulations. They have to follow them at their own cost. The scientific management

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Organisational Behaviour and Corporate Development

has become in effect the shop management. With the advance of technological development, the need for human relations become a dire necessity. Scientific management instead of its relegated importance by self-centred managers have become origin of scientific thinking in the field of management. The person's practice of management has been replaced by well recognised, clearly defined and accurately controlled technical aspect of management.

Process Management Process management was propounded by Henry Fayol, wherein technical, commercial, financial security, accounting and managerial activities are well defined. Henry Fayol in his book, General and Industrial Management published in 1916 described administration as the main component of management having special features of deductive theory, closed system, hierarchy, formal organisation, organised group, universal principle of management. He said that the manager has right to disseminate managerial functions and can exercise his discretion for getting things done through his discretion and with the help of people. The employees are directed and controlled by managers. Process management was propagated by H. Simon, L.F. Luwick, L. Gulick, G. Terry and so on and by many authors who pointed out that planning, organising, motivating, coordinating and controlling are important functions of management. Principles of Management Fayol has given the following principles of management. (i) Authority and Responsibility

Management has authority to issue orders. Supervisors are given more authority to carry out the work effectively. Subordinates will have to follow the orders of the supervisors who carry out the responsibility of getting things done through the subordinates.

(ii) Division of work The whole process is divided into small fragments which are performed by specialised persons. The division of work helps perform all the activities effectively and efficiently. Discipline Obedience and following rules arid regulations are considered discipline which are seen as process management. The leader has maximum power to lead the employees as per established practices of the organisation.

(iii)

(iv) Unity of Command The supervision is made by one man. There is unity of command because the employees have to obey only one man. Multiple supervisors lead to confusion and complex problems. (v) Unity of Order The employees are directed towards a single objective. All the activities in a particular segment of a department are channelised to achieve that single objective. (vi) Scalar chain The superior-subordinates are lined in a single vertical order. The top management controls middle management who command the lower management. The chain continues to the level of workers. The competence of each chain decides the future of the organisation. There is unbroken hierarchy of command.

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(vii) Centralisation Centralisation of power is preferred but it does not leave much scope for completely centralised power. Decentralisation is also practised to get the work done by people at different places. (viii) Order The human activities are arranged in an orderly form. People and materials are working at a right place at the right time. They are on the jobs most suited to them. Proper Remuneration system The employees are issued proper remuneration according to their contribution to the work. The payment is remunerative and not exploitative. . (ix)

(x) Equity and Fairness There is enough scope of equity and fairness. Employees are given justice and kind treatment. The employees are assured of continuing ofjob and promotion. Efficiency is increased by proper treatment of employees. (xi) Initiative Managers offer sufficient opportunities for the development of employees. Initiatives to exert energy and enthusiasm are provided by the management. (xii) Team work The espirit de corps is exercised for getting the objectives fulfilled efficiently and effectively.

Neo-classical Theories The classical theories concentrated on discipline and economic well being of people. They ignore their morale and desires. Neo-classical theories while accepting the merits of classical theories have given more importance on human relations and behavioural science. The neoclassical theories modified, added and extended the classical theories by realising the facts that management is a social system wherein human factors have cognisant role to perform. Employees can play crucial role in decision making process. Human relations and behavioural science have become two important approaches of neo-classical theories. Human Relations Human relations theory was developed by Elton Mayo and his associates from 1924 to 1932 at Hawthorne plant of Western Electric Company. They experimented in four phases: Illumination experiments, relay assembly test, interviewing programmes and the bank wiring observation room experiments. Illumination experiments revealed that this has no impact of light. The intensity of light did not influence productivity of telephone relays. Relay assembly test provided several facilities to telephone relay assemblers wherein, it was observed that special attention and treatment caused employees to increase their productivities. It was termed as "Hawthorne effect" people feel pride of group belongingness. Interviewing programme was a test on human relations rather than on favourable physical conditions. It revealed that employees are unwilling to answer direct qmistions. They gave important clues towards the management style when asked indirectly. The bank wiring room experiment gave sufficient freedom to informal group. It revealed that employees were not only economic beings but social and psychological beings as well. The productivity is influenced by sentiments, beliefs and group behaviour of employees.

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Organisational Behaviour and Corporate Development

The Hawthorne experiments brought to conclusions that the business organisation also includes social and psychological factors. It has considered organisation as a social process wherein feelings, sentiments and attitudes have been given due importance. Mayo and Roethlisberger of Harvard Business School expressed that efficiency and productivity can increase if the attitudes ofthe employees are well regarded.

Behavioural Science Behavioural science believes in inter-personal relations. While human relations concentrate on morale and productivity, behavioural science emphasises on inter personal roles and relationships. F. Heryberg and V. Vroom suggested motivational models after Maslow who developed need hierarchy. Sociologists and psychologists contributed significantly to the areas of behavioural science for treating human element as a social system. Group behaviour has been given more importance. McGregor, Argyris and Likert believed that self-actualised men would contribute in the development of management. They emphasised on democratic values and human motivation. Task itself is the primary source of satisfaction and self-motivation. Unlike the belief of classical theory, behavioural science believes that human beings like work but it should not be superimposed, it should be self realised. They enjoy work and believe in self discretion, self control. They are interested in their own jobs and creativity in a healthy, safe, comfortable and congenial environment. People are considering themselves as important persons and they like to be treated as important by their superiors. Behavioural science tries to develop new insights and congenial environment in the factory whereby new thinking and new techniques are welcomed by the employees.

CONTRIBUTION OF NEO-CLASSICAL THEORIES The neo-classical theories have contributed significantly to the organisational behaviour in the following fields. Individual Behaviour Behaviour of individual employees has been considered important in the field of management. Individual work behaviour is influenced by their respective feelings, perception, learning and personality. People view their jobs as per their attitudes, beliefs, social set-up, technical and managerial skills. The inner feelings, craze and sentiments have more influence on the work behaviour which shapes the efficiency and productivity. Human relations based on individual behaviour, economic and social factors are considered important factors for the success of management. Group Behaviour It was rightly pointed out by the sociologists and psychologists that the cultural and social backgrounds of employees have a significant role to play in management. People work together to accomplish the corporate objective i.e. group objectives. There is need of cooperative and purposeful group interrelationship. The influence of informal organisation has been well regarded in this context because the workers are not isolated and unrelated individuals. Workers are social beings and should be regarded accordingly. The socio-cultural organisations have great influence on the behaviour of individual employees. The group has systematic approach to the work. Group dynamics and industrial psychology developed on the basis of informal organisation. Task The neo-classical theorists have not ignored the task to be performed. The classical and neo-classical people are alike for design and performances of job. The neo-classical theories

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emphasised on coordinated activities while division of work was preferred for getting specialisation. They have developed process of identifying and grouping the work. Technological development has also given due importance for effective performance of task. While giving due importance to coordinated efforts and achievement.

Participative Management The theory has given birth to participative management wherein employees have rights to take part in management decision. Giving opportunities to labour in management process will help increase productivity and efficiency. The recognition of human values and human behaviour is for increasing productivity. If they are separated, they are meaningless. So, productivity and satisfaction have to be achieved by behavioural approach. The techno-economic system mix with social system has developed people and production. Motivation Neo-classical theories propagated for self-motivation and job satisfaction. Management should learn the development of cooperative attitude. While democratic set-up is more useful, the authoritarian approach may not be totally discarded because when people have developed some attitudes against the management while management have been honest and helpful to them, the authoritarian approach would be more effective for the success of management. The authoritarian approach as developed by classical theorists need to be modified and remoulded to have their selective use. Monetary and non-monetary incentives should be used for motivating people. Employees' development and workers' satisfaction contribute significantly in the production. Communication The neo-classical theories have given more importance on effective communication. Twoway communication is essential to establish common flow of understanding in any organisation. Formal and informal communication are exercised for managing people although informal communication have more impact on the management success. Group communication, team spirit, man to man relations and group harmony have been realised by neo classical theorists. Coordination, coefforts coworkmanship and communication have been considered key factors of organisational behaviour. Modern Theories Modern organisational behaviour has become complex. It synthesises the classical and neoclassical theories while incorporating the technological development. Modern organisation theories are classified into quantitative, system and contingency. Quantitative Theory Quantitative Theory includes operations research and quantification of the problem. It analyses the problems from quantifiable angle and provides solution of the complex problems only with the help of statistical and mathematical models such as linear and non-linear programming, game theory, decision tree, simulation and probability. Computers are being used to solve the management problems whereby mathematical models are commonly used for the purpose. A large number of problems are solved with the use of simulation equations and computers. The development of equations requires specialised skills and advance knowledge of mathematics, statistics, economics, behavioural sciences. Models are tested with the context of real world and use of operations research.

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Organisational Behaviour and Corporate Development

The operations research is conducted by diverse specialists and management experts. It is useful from the level of planning to organising, actuating and control. It is known that the mathematical models are not the ultimate solution. If they are used in a given environment with the real assumptions, they can suggest appropriate measures which can be used for solving the problems. Quantitative approach is merely a tool for finding suitable solution. It is not a solution in itself. It has become a valuable supplement to rather than substitute of management and organisation. The role of human skills and behaviour cannot be ignored for the purpose of management. Even in the highly computerised system, the human elements cannot be ignored. The use of computer has economised and facilitated the solution of many problems. Management has not to resort to the dilatory and cumbersome processes. It can easily and swiftly find out the real problems or can diagnose the problems with real solutions. Computer has helped management people to arrive at correct decisions which could not be possible without the use quantitative techniques. The precise and prompt approach has also prevented other problems, cost of communication and maintaining of huge files has been considerably reduced by the computerised management technique.

System Theory System is a set of interconnected and inter-related elements of management activities. It is an arrangement of components of activities performed for achieving certain objectives. Thus, a system has three components: arrangement, objectives and plan. The arrangement is designed and planned in an effective manner t{) achieve the objectives. Men, materials and money are planned to achieve the objectives of the organisation. Recently it has been agreed that the organisation is a system wherein operation, market, finance etc. are subsystems. So, modem organisation theory believes in General Systems Theory (GST) which is applicable to all scientific phenomena. Kenneth and Boulding have contributed to system theory to establish a single, selfcontained and generalised theory for particular discipline. System approach believes in static structure, dynamic and cybernetic system. It has increased mobility, technological behaviour, self awareness and goal directed approach. It is characterised with animal, plant and universe behaviour. The cell present in plant, universe and animals are components of the system which are managed by concerned authority. System is an organisation wherein the components are subsystems which are managed and mobilised for attaining the organisational goals. It is interconnected, interdependent and interacting arrangement of men and materials. For example, business is a social technical system, plant is a botanical system, car is mechanical system and so on. Characteristics of System Theory Business or industrial organisation has system approach of individuals, formal and informal organisation, status and role, process, resources and goals which are interlinkerl to attain objectives through synergistic effect. The system approach is divided into closed and open systems. The open system consists of input transformation process, output, feedback and environment. Organisation is considered open system because it continuously interacts with the external environment for survival. The closed system believes in internal management. It is like a closed loop, which is autonomous and independent. It believes that environment will not pose problem. Management of internal factor is basically useful for organisation. But the closed system is not perpetual. It breaks down when environment influences the working conditions. Modern Open Theory (MOT) discounts the envirunment effect. Open system is ready to expose to spectrum of complex changes and challenges of the environment. It is very well

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known as Modern Open Theory (MOT) which is dynamic, adaptive, multilevel, multidimensional and multidisciplinary. It incorporates the elements of motivation which are important moving force in an organisation. Open system is multidisciplinary because it incorporates different disciplines in the 'lrganisation. It depends on sociology, psychology, engineering, anthropology and so on for managing different activities of corporate unit. It is the base of formulating organisation structure and has capacity for adaptation to change. The informal organisation and environmental conditions are given due weight age under open system. The Modern Open Theory (MOT) is empirical, analytical and systematic. It is an integrating theory having the characteristics of subsystem, dynamic, multivariate, adaptive, probabilistic multimotivational, multidisciplinary and process setting. The theory has got its prominence because it has given due importance to interdependence. Synergism, wholism, boundaries, feedback and cybernetics. The open theory commonly used as system approach believes in analytical checking the dualism from the normal behaviour and taking the necessary and corrective action to eliminate the error. It is management by objective. The system is developed, self-regulatory and self-corrective through reception, controlling and effecting process. USE OF SYSTEM THEORY IN ORGANISATION An crganisation is considered dynamic system which evaluates, acts and interacts, with the environment. It is open and incorporates all the changes and challenges of the social set-up. The organisation consists of interacting and interdependent subsystems. Each subsystem is defined with its objectives, structure, processes and premises. The interdependence of subsystems is so close that success or failure of subsystem will certainly influence other systems. The success ofthe organisation depends on the process of each subsystem and proper evaluation of elements of environment namely men, materials, money and other factors. Technical subsystem, social subsystem, psychological subsystem and structural subsystem are considered in the organisation.

Technical Subsystem Technical subsystem is related with production functions. Job design, job description and job classification are involved in technical subsystem. The technological development, mechanisation, scientific management and rationalisation are considered for the effective management of the organisation. Technical subsystem is highly related with the social and psychological subsystem. If the employees' behaviour are satisfactory, the technical subsystem will work satisfactorily. The communication, decision making and other factors are important factors under technical subsystem. Technical subsystem includes all functional areas viz., marketing, production, finance and personnel which are properly structured and employees are assigned jobs. Social and Psychological Subsystem The employees' behaviour is influenced by their social background, education and work environment. Human relations and group dynamics are developed in the organisation. The informal organisation plays significant role in the development of organisation. Satisfaction of human needs and motivation are essentially decided under social and psychological subsystems. The sentiments, interest and attitudes of employees are the important factors to influence the productivity and efficiency of the organisation. While performing the jobs, the employees try to get satisfaction. The informal and formal organisation work together with great success. Man plays their function according to the sentiment, beliefs and interests. They are social creatures and expect social recognition.

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Structural Subsystem The structural set-up of an organisation is the backbone of the management. The structure provides power which may be formal and informal. The authority hierarchy is decided based on structural system. Authority gives power which is used for transforming decision into action. The structural subsystem is very important for the development and proper functioning of an organisation. Contingency Theory Contingency theory is the extension of open system. It has adaptable approach which is applicable in all the situations. Organising the business on changing situations and environment has its own quality and advantages. It is ready to cope with the increasing needs ofthe company and society. Contingency theory is situational theory which changes its approach according to requirements ofthe situation. It is an array from the gingle of different theories of management although it cannot claim that the valuable theories of management are not applied for solving the problem. It is an attempt to provide something more contributory for the help of practising managers. The basic tenets of the theory are the relationship between various organisational subsystems. Suprasystems are established after focusing on the external and internal factors of environment. There is no prescribed managerial action or organisational design for management action. The best organisation depends on situation. It deals with a variety of organisational and environmental variables with empirical support. Organisation-Environment Relationship Environment plays a significant role in management decisions. It decides the interrelationship within and among subsystems and suprasystem. Since external environment is a major causal variable influencing the management decisions, the organisation structure, operation and behaviour are moulded according to that. It is essential to study empirically the impacts of environmental factors on human behaviour and institutional activities to develop appropriate causal relationship between organisation and environment variables. Man and environment are closely related. Man is a p~rt ofthe subsystem in a system of organisation. He may influence the system and environment which have also direct impact on the behaviour of human beings. Man is a social being. He is influenced by the social set-up which are visible in pollution, employee dissatisfaction" and consumer disappointment. The social costs are not included in the balance sheet and profit loss account although they influence significantly the business activities. Social accounting and social auditing are developed to the impacts of social system on organisation. Contingency approach considers the management activities as flexible and adaptable to meet the situational requirements. It integrates the diverse specialists and management experts for management functions. Innovation and creativity are recognised for management functions. Innovation and creativity are reorganised for management development. Management was considered universal and everlasting truth, but it is now realised that management is not rigid. It has to be changed as per requirements of the situations. All managerial actions depend upon the prevailing circumstances and situational factors. It has to be adapted for meeting the changing conditions. The functions of planning, organising, directing and controlling are moulded for meeting the changing requirements. Organisation-Technology Relationship The technology development has wide influence on organisation. Many authors have empirically tested the organisation-technology relationship. Burns and Stalker have pointed

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out that the slow rate of technological change is considered stable and higher rate of technological changes are used for adaptable policies and procedures. The dynamic and flexible organisation are sensitive to technology. They immediately accept the technology for the improvement of management activities. Mechanical structure is routine and highly centralised. It emphasises on formal authority and communication. The organic structure believes in decentralisation and flexibi1it~es for innovation and technological development. Woodwand has pointed out technological complexities with controllable and predictable process. He has established relationship between technology and structure as well as structure and success of organisation. Contingency theory developed in the present environment of unpredictable and uncertainties. Now each and every business or industrial unit is victim of circumstances and risk. No one can develop unless they know how to manage the units within uncertainties. It has become certain that the organisations have to face complexities and risk contingency theory comes to their rescue. It is comprehensive theory because it can be used for understanding the entire organisation. Management is situational analysis and decision making process. It is useful because problem solving puzzles are unique transactional management process. But it requires expert and experienced managers to handle the situation with contingency theory. Competent managers can guide and direct employees effectively and efficiently. QQQ

Chapter 2

BEHAVIOUR IN ORGANISATION 1. 2. 3. 4. 5. 6. 7.

CONCEPTS AND MEANING FEATURES FOUNDATIONS ROLE BEHAVIOUR PROCESS MODELS OF ORGANISATIONAL BEHAVIOUR TAXONOMY OF ORGANISATION RESEARCH

Behaviour in organisation has become a special subject of study. It is a body of knowledge of human behaviour at work. Traditionally, the behaviour of employees was simple and predictable; but, now it has taken complicated and diversified shapes within the organisation. Human relations approach is no longer applicable in management of human resources, understanding and moulding employees' behaviour at work is not only of academic interest but also of practical importance. It has become necessary to learn about human behaviour within organisation for improving its performance. An organisation is not a successful unit unless it understands, predicts and controls human behaviour. Organisational behaviour is a part of total management but its crucial role in every area of management has been accepted by all the concerned people. It is accepted fact that an organisation can develop only when its people are developed. Study of their behaviour becomes inevitable for development of people. Since organisational behaviour is a science; its concept, features, foundations, role, behaviour, process, models and taxonomy are clarified in the very beginning to decipher and develop the subject in a full-fledged discipline of study.

CONCEPT AND MEANING Organisational behaviour has been defined as the knowledge of people's behaviour at work. It is a meaningful solution to the complex human problems. "Organisational behavioural is the study and application of knowledge about how people act within an organisation. It is a human tool for human benefit. It applies broadly to the behaviour of people in all types of organisation."l The behaviour of people at work depends on numerous factors such as technology, structure, 1. Keith Davis and Johan W. Newstrom: Human Behaviour at Work: Organisational Behaviour, McGraw Hill, p.5.

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group, social set-up and so on. The organisational structure has significant place to shape the behaviour of people. Technology helps performance of the job in a successful and systematic manner. Fred Luthans has rightly emphasised on behaviour. "Organisational behaviour is directly concerned with the understanding, prediction and control of human behaviour in organisations."21t is a study of behaviour of people to improve the efficiency of the organisation. The understanding and analysis of behaviour of people help motivation for achieving organisational goal. Study of behaviour is essential because of different nature of people. Besides individual differences, a people are whole person and total human beings. People behaviour is changed as a result of motivation. Human dignity and ethics are observed in their behaviour. Organisation's internal environment, social environment, individual perception and learning, group affiliati9ns, technological development are instrumental to shape the behaviour. People's behaviour is' required to be modified and developed to achieve organisational goal. "Orgariisational behaviour is concerned with the study of the behavioural attitudes and performances of workers in an orgar.is~tional setting, the organisation's and informal group's effect on the worker's perceptions, feelings and actions; the environment's effect on the organisation and its human resources and goals, and the effect ofthe workers on the organisation and its effectiveness."3 This definition emphasises on the individual attributes, group's effects, organisational structure and environment for shaping the people at work. These fa:ctors are interdependent and interrelated. Organisational behaviour is considered as a branch of science wherein human behaviour is studied, researched, concluded and channelised for the organisational effectiveness. Not only individual behaviour but the role of group and organisational structure is studied. The interrelated and influencing environment are appraised for deciding the typical behaviour of people at work and their impact on organisation's effectiveness and goal accomplishment. Behavioural science studies the variables associated with the behaviour of people and their performance. Stephen P. Robbins has said, "organisational behaviour (frequently abbreviated as OB) is a field of study that investigates the impact that individuals, groups and structure have no behaviour within organisations, for the purpose of applying such knowledge toward improving an organisation's effectiveness."4 Organisational behaviour has become a field of study to understand the behaviour of individuals, groups and structure. The purpose of the study is to modify and mould their behaviour for increasing effectiveness and efficiency of the organisation. It is a systematic study of behaviour to improve the performance of the people and organisation. Many important activities of people's development are included under organisational behaviour. For example, motivation, learning, personality development, conflict resolution, stress management, interpersonal communication are thoroughly discussed under this discipline. Behaviour depends on how people listen, observe, sense, ask and interact. Behaviour is a dynamic process depending on the experiences of others related with the individuals. Human behaviour is developed not in vacuum but it is being shaped every time by the behaviours of others and environmental factors. The behaviour of a worker depends on the behaviour of his boss. If the supervisor is more friendly, trusting, informal, approachable and competent; the productivity of workers will increase and they will undertake more challenging jobs. The systematic and scientific evaluation of the factors influencing the behaviour of employees provides the basis for the effective performance of their jobs. Behaviour is caused 2. Fred Luthans: Organisational Behaviour, McGraw Hill, 1987, p. 7. 3. Andrew D. Szilegyi; Jr. & Marc. J. Wallanc, JI;: Organisation Behavt?ur and Performance, 1980, p. 3. 4. Stephen P. Robbins: Organisational Behaviour, Prentice Hall, 1996, p. 8.

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and directed toward some specific goals. Behaviour is predictable by understanding the people and situation. Different behaviour is perceived in different situations. This is the reason that different behaviours are exercised by different people. Beneath these differences, there are some common behaviour which may ordinarily be exercised by people. So, it is possible to predict behaviour. A systematic study of behaviour may help predict behaviour accurately. The cause and effect analysis, quantification of two variables of behaviours and experimental research provide important information about behaviour and its influencing factors. The common sense observation of behaviour mayor may not be correct as revealed by rigorous analysis and scientific research. Organisation behaviour is generally confused with organisational theory, organisational psychology and human resources management. Organisational theory is the study of structure, system, sequences and process of organisation. Organisation behaviour while studying all these subjects delves into behaviours of individuals and groups. The organisational theory is based on macro study whereas the organisational behaviour is a micro study of people's behaviour. Organisational psychology restricts its activities on psychological factors. Organisational behaviour considers and combines all the branches of study, for example, science, technology, psychology, terminology, anthropology and other behavioural subjects. Organisational behaviour has become basis of human resources management and development. The former is concept oriented whereas the latter concerns with the technology of human development. The variables influencing human development, are scientifically studied under organisational behaviour. The human resources development is successful with the use of knowledge of organisational behaviour. There is need of study of performance-oriented dependent variables, search for cause and effect for human resources dependent; which is possible through the use of concepts of organisational behaviour which helps people's personal growth, self-actualisation, modification and organisational development. The human relations, human activities and human resources management are activated, directed and channelised by the application of knowledge of organisational behaviour which has become a field of study, research and application for the development of human resources and organisation as a whole.

FEATURES OF ORGANISATIONAL BEHAVIOUR Organisational behaviour is a study and use of information relating to behaviour of people at work. Majority of work is taking place within the structured organisation wherein groups of individuals work into unified common effort in the environment. People use technology to get work done for achieving common objectives of the organisation. So, organisational behavioural concentrates on individual, group structure, technology and environment.

Individual The individual employees are focal points of an organisation. They work in the organisation to satisfy their needs, egos and experiences. Each employee has his own physical, psychological and social needs for which he uses his own traits and experiences. His work-behaviour is influenced not only by his biological inheritance but is also affected by interactive environment viz, family relationships, racial background, social set-up, religious beliefs, technological innovations and so on. Individuals are made up of all these factors although they have their own perception, learning and personality to shape their behaviour. Their desires, needs, wants, attitudes, drives, goals and experiences have specific work behaviour. Individual behaviour can be unfolded by studying and understanding the individuals in the above context. It requires knowledge of psychology and sociology. There may be a number of psycho-social and economic

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factors to shape the human behaviour at work. Study, research and use of these factors help management mould and modify the behaviour of employees for achieving the organisational objectives through increasing their efficiency and effectiveness.

Group People at work consist of individuals and groups. Individual behaviour and group behaviour are distinctively observed in an organisation. Group performance is more effective than the individual performance. This synergy is observed in group behaviour. The organisation consists of formal and informal groups, large and small groups, official and unofficial groups. Groups are dynamic, changing, forming and disbanding. The knowledge of sociology, anthropology, political science, philosophy are helpful to study group behaviour. Group dynamics have become a useful force for leadership, moral building, personal relations. The group is a separate entity that needs to be studied and researched. It is an accepted fact that group sets goals, behaves, thinks and acts. Group have synergy and syntality as compared to energy and mentality of individuals. If group power is channelhed towards goal achievement, it can perform something more outstanding. Structure The formal relationships of people is the structure of an organisation. Different jobs and their constituents, the employees assigned to these jobs are formally related. The methods of establishing the relationship shape the behaviour of employees either individually or in group. For example, the managers, the office staff, the workers and other people in the organisation have to be related in some structural way so that their work can be effectively coordinated and controlled. The structural relations are instrumental to behaviour of employees at work. The structured relationship is the basis of formalised policies, procedures, organisational culture, hierarchical authority and responsibilities. The structure of the organisation is not always formal. Informal organisations many times have more fruitful effects on effectiveness and efficiency of the organisation. The organisational objectives are reduced to different goals of structural points for their prompt achievement. The structural behaviour like individuals and groups have its own identity and entity. Technology Technology has its own behaviour and functions. It has significant influence on work. Work environment and working relationships. Better work is a source of satisfaction to the employees. Technology helps better work because it incorporates technical skills which encompass the ability to apply specialised knowledge. When people develop their technical skills, they get satisfaction at work. Interpersonal role, informational role and managerial functions are improved with the use of technology. Consequently human skills as well as conceptual skills are developed. The use of scientific method and research techniques are helpful for understanding technological behaviour. Environment The internal and external environment of the organisation creates some behaviour at work. It may be favourable and non-favourable for efficient performance of the organisational activities. The environment has its own behaviour which encircles the people's behaviour at work. Government policies, social systems, religious beliefs, family and economic conditions, national philosophies, employees' psychology and other factors in and outside an organisation have mutual influence on each other's behaviour. The behaviour of an organisation cannot be segregated from

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the behaviour of environment. They influence perception and personality of people, working conditions, productivity and proficiency of individuals in and outside of the organisation. The environmental factors influence work behaviour, use of authority and responsibility, relationship, perceptual framework of employees and other related factors of behaviour. Organisational behaviour is an interdisciplinary approach as it has borrowed concepts, theories, models and practices of physical sciences as well as social sciences. The main features of organisational behaviour are primarily based on behavioural sciences. The behaviour of individuals, groups structure, technology and environment are thoroughly studied in relation to psychology, sociology, political science, anthropology, economics, science, technology and environmental sciences.

FOUNDATIONS Organisational behaviour is a unique combination of knowledge of different disciplines. It is based on behavioural sciences like psychology, sociology, anthropology, political science and economics. Similarly, the role of physical sciences developing scientific model, scientific researches and environmental analysis is equally recognised in behaviour analysis of people at work. The use of scientific methods is appreciated as they are applied to draw conclusions from the practical behaviour of people. The deductive knowledge is evaluated in the field to arrive at some generalised sets of behaviour. Organisational behaviour has become an applied science. It is micro as well as macro concept and conceptualised practice. The scientific methods are freely used to deduce theories for behavioural sciences. These theories are examined with the use of scientific research methodology. The foundations of organisational behaviour are psychology, sociology, anthropology, political science and economics, science, technology and research methodology.

Psychology Organisational behaviour studies the human behaviour which is governed mainly with the psychology of the people. Psychology is concerned with individual behaviour. Group psychology generally based on sociology and other behavioural sciences deals with group behaviour. Psychology is a science to measure, explain and suggest behaviour of human beings. The individual behavioural is governed by his perception, learning and personality. Recently individual and organisational psychology has been developed to understand people's behaviour at work particularly with the working conditions, stress, conflicts and other related behaviours of employees. Job satisfaction, performance, appraisals and other activities are measured and directed with the use of psychological theories and models. The group psychology and industrial psychology are within the scope of social psychology which is a blend of sociology and psychology. The group behaviour is studied, researched and moulded with the use of theories of social psychology. Communication system in an organisation, attitudes of employees, their needs, motives etc, as a subject of social psychology and have great influence on behaviour. Psychology in several forms viz., structuralism, functionalism, behaviourism, Gestalt psychology, psycho-analysis have studied human behaviour at micro and macro levels. Structuralism as propounded by Wilhelm Wunt studies the conscious experience and mind into various structural units. It is a mental state of sensations, memory, imagery, feelings etc. Introspection and self-analysis have been basic tenets of structuralism or structural psychology. Structuralism gave birth to functionalism i.e.} how the structure of mind functions. Functionalism is more pragmatic and encompassing. It is perception-oriented psychology. William James and

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John Dewey have developed functionalism wherein, the behaviour pattern is observed and adapted. Behaviourism propounded by Ivan Pavlov have been developed through functionalism. Structuralism emphasises on mind, functionalism stresses on mind and its behaviour and behaviourism studies stimulus, response relations. Behaviourism, thus, observes, measures, analyses stimuli and response connection. It is developed in the form of techniques oflearning. It is a well known science of behaviour. Max Wertheimer discarded structuralism and emphasised on pattern of behaviour. Gestalt is a German word, meaning thereby: "pattern" or "form". It believes that whole is greater than sum of its parts. The group-power is equated with magnetic force wherein the group force is always more than the sum of individual forces of its parts. It is applicable in group behaviour. Sigmund Freud has propounded psychoanalysis. It is present base of modern psychology. It is a treatment technique and a form of therapy. Cause and effect relationship is established to treat patients. The unconscious mental process is instrumental to reach to the basic reasons of behaviour. The id, ego and superego processes have been used by Freud. Id is the raw and instinctual drive for gratification and pleasure. Ego is logical and conscious process. Superego provides the basis to determine the right or wrong behaviours. It is clinical observation. Freud has expressed that personality is the main instrument of human behaviour is affected primarily by three states of mind, i.e., the id, the ego and the superego. The id is inherited since birth and is the basis for personality development. It is inner force acquired by people since childhood. The ego and superego are based on the id, the psychic energy which is for seeking pleasure by avoiding tension: on the basis of id, people try to get satisfaction. For example, if people have got in their mind that honesty is the best policy, they will always try to be honest because it will give them mental satisfaction, and energy for action even if they are suffering from shortage of funds on account of honesty. They will try to be honest because they do not believe that honesty has created any problem. Thus the id helps primary process and reflex actions. The primary process tries to discharge tension. It is a mental process to reduce tension by creating some alternative actions in reality or in creating mental image of reducing the tension. Since many tensions are not practically removed, the mental image building for getting satisfaction is the reflex action. People try to use ego for getting satisfaction in reality. It distinguishes between mental image satisfaction and practical satisfaction. Ego is for getting real satisfaction in life through action and performances. It is real source of tension reduction unlike id, it does not believe in mental satisfaction or imaginary satisfaction of life. It believes in reality and activities. Ego tries to get physical satisfaction, reality and does not believe in mental imaginary satisfaction. It induces to work to reduce the satisfaction. Unlike the id, it is reality principle and not imaginary principle. Ifid helps spiritual and mental satisfaction, the ego tries to get worldly and physical satisfaction. It inspires people to work for getting needs fulfilled. It is a source of energy for action. Employees are motivated by helping them realise their ego. Problem arises when ego is not satisfied. Inspite of best efforts; the person is unable to achieve all the worldly satisfaction. It causes dissatisfaction and frustration. The superego comes to the rescue of the person by reminding him of the moralistic approach. It helps them to understand the morality and spiritual satisfaction. Superego comes from parents, who are teachers who interpret the values of people and society. The childhood teaching of morality and spirituality continues throughout his life. They reemerge in favourable situations. Superego combines the morality and reality to get mental and physical satisfaction. The socially accepted principles and functions are practised by superego

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of a person. If the action is approved by conscience and reality, people get maximum satisfaction. On the contrary, if the real action is against conscience, it discourages people to work. Conscience action without reality will create dissatisfaction. So, people use their superego to get mental as well as physical satisfaction. Earning based on honest function will be a source of great satisfaction but earnings received by cheating and unethical means will be discouraging factors causing mental dilemma and disturbances. Thus people's behaviour is guided and controlled by the id, the ego and the superego.

Sociology Sociologists pave the way for study of social system which is instrumental in shaping the individual and group behaviour. Psychology devotes on individual behaviour and sociology delves into group behaviour. Sociological theories have helped understand, formulate and channelise behaviour in groups which may be formal and informal. The role offormal and informal groups have been recognised recently for moulding and modifying the employees' behaviour. Group dynamics, organisational development, organisational culture, organisational technology, communication, power, conflict, stress management inter and intra-group behaviours are subject matter of sociology. Sociology is a branch of study that accumulates and deciphers the knowledge of social behaviour. It is a discipline to demonstrate how society acts, interacts, counteracts and inter-relates the different organs of society. The investigation and use of laws of action and reaction of different components of society are scope of sociology. Social dynamics are being developed for moulding and modifying group behaviour in an organisation. The social norms and roles, social institutions, organisations and groups are the main components of sociology which are influencing the organisational behaviour. Social norms and social systems are interchangeable. They are complex set of human behaviours in a society. The social system includes several subsystems. Their actions and interactions have been influencing each other. Social norms are used to provide satisfaction to the members of the society. The social norms are not static. They are changing but people try to achieve equilibrium within the changing situations. Social norms and culture are human created beliefs, customs, traditions and practices. Some societies are more venturesome, enterprising and action-oriented. The caste, creed and culture ofa society have great influence on behaviour. Social responsibility and obligation are realised by people. Socio-economic factors have paved the way of behaviour in an organisation. The influences of social factors can be vividly observed in any organisation. Role of society in business organisation is observed in different manifestations. People's role in society and society's role in people's development is a continuous process since the beginning of civilisation. They acquire rights and obligations, power and authority. People's role with each other is reforming and performing the social functions. Every person in the society plays dual role such as he is a buyer as well as a seller, supervisor and subordinate, helper and being helped. His activities are depending on role preceptions. He behaves as per his role in the society. The people in society expect others to perform their roles in effective and sincere manner. Therefore, many organisations have developed mentor i.e., role models to be followed by others. Roles models, the mentors, are guide for successful performances. They are considered additional support to employees' behaviour. Mentors are considered role models for proteges also. The role models are beneficial for the development of people at work; but are not always self-supporters. Employees' have to act on their own capabilities for their development. Role conflict is also observed in such cases. Behaviour is adversely affected by role ambiguity.

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Society has certain institutions known as guide of social activities. The activities of individuals are influenced by these institutions. Composition of family, religious beliefs, educational pattern and economic network have become important instruments of people's behaviour. The unions and their activities are mirrored .with the social behaviour. The role of government in organisational behaviour is mainly influenced by social systems and social values. Socialisation is accepted for moulding behaviour of people whereas the capacity of individuals to learn and respond to the social systems, social values, social norms and social roles are accelerated and appreciated. The attitudes and behaviour patterns of individuals and groups are greatly influenced by socialisation. People try to get social status and social recognition for which they mould their behaviour and activities. Social status has become a symbol of honour, recognition and acceptance of social mentor. Status conscious people behave positively and try to participate more in organisational functions. The social activities, perceptions, communication roles etc. have been subject matter of sociology which has become important foundation of organisational behaviour.

Anthropology Organisational behaviour as a subject of study borrows the findings of anthropology wherein deductive and inductive knowledge of human behaviour are stored. The differences in behaviour, values, attitudes of people are studied in anthropology. The differences are mainly on account of different characteristics of countries, organisations, environment and cultures. Anthropology is a science of man,' Anthropo' is a Greek word which means 'man' and 'logy' is science. Aristotle used anthropology as 'talking about himself as a science of man's self-understanding. Anthropology as a science of man studies physical and cultural activities of man. The values and attitudes of man have great influence on the behaviour. Quality oflife has been emphasised by anthropologists. Organisational behaviour is shaped and modified by the existing cultural values of society and mentality of people. The cultural values are learned behaviour i.e., man's cultural values, evolution and development. Culture is acquired knowledge and interpretative experiences for social behaviour. Culture is a pattern of modified behaviour with the evolution and revolution of different fields of knowledge, culture is not static pattern of behaviour. It goes on modification and ramification. Anthropologists seek the history of development of human behaviour. They are basically concerned with the origins, evolution and continuous development of human behaviour in different fields of activities. Individuals influence culture but separately they are not part of culture. It is cumulative and shared behaviour transferring from generation to generation. It is adaptive and patternised. Different organisations have separate culture. They have their patternised culture values and work cultures. The social cultures have great influence on organisational culture. Kunt Lewin has pointed out that employee behaviour (B) is a function of interaction between personal characteristics (P) and the environment (E) i.e., B = f (P,E). organisational culture is also known as organisational climate or environment. It provides environment in which employees perform their duties and responsibilities. Organisational culture is a combination of pattern of communication systems and procedures, statements of policy, philosophy and myths of organisation; organisational culture may be warm and friendly, cold and sterile, fast and tied, slow and slack. Like individuals, it has its own values, attitudes and missions. Organisational culture is seldom communicated to employees. It is felt and understood. But if the tenets of organisational culture are told to the employes, they try to embibe the culture. Many times, they feel satisfied with the new environment which is congenial &nd cooperatIve.

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Socialisation is emitting values and missions of organisation, goal setting, decision-making, coordinating and controlling are forming components of organisation amongst the employees. Leadership, motivation, interaction, behaviour which influences the employee's behaviour and performance. The above segments are highlights in anthropology.

Political Science The role of political science in organisational behaviour is recently observed in glaring form as the political parties and government are directly intervening in many activities of organisation. Specific principles of political science are observed in organisational behavioural for delegation of authority and responsibility, conflict resolution and stress management. Man in any organisation strives for power and getting leadership recognition. Political science dealing in such knowledge helps management of man in effective and efficient manner. Political perspective and government policies are thoroughly analysed for moulding and modifying the behaviour of people because they greatly influence the organisation. The pattern of administration in general and government philosophy in particular have great influence on behaviour of people whether in organisation or outside organisation. Strict administration exercising their power and force may provide adequate security to the people. The attitude and objectives of government and political system widely influence the pattern of laws and regulations, their enforcement, resolving conflicts and disputes, promoting general welfare of people through infrastructural development, educational programmes, health services and so on. The law and order of the country influences the people at work. The participative, welfare and promoting role of government helps the industry and people grow. Economics The economic conditions of a country have long lasting impact on the behaviour. The wage rate, working hours and working conditions are decided as per the prevailing economic situations. The demand for pay depends on the inflationary trend. Rising prices necessitate higher pay. If the industry is unable to cope with the problems, industrial relations is disturbed. The productivity is reversely affected. Higher pay provides incentives to work and job satisfaction. If the psychological and economic expectations are met, employees are satisfied and become higher performers. Economics as a subject of study has developed important laws of consumption, production, exchanges and public finance; which are used from time to time by organisations and their people. The functional and dysfunct ~onal actions are shaping the behaviour of people. Functional actions are positive to organisational development. Dysfunctional actions are negative to productivity. Socio-economic models are developed to manage people at work. Social responsibility and environment conservation have required organisation to behave in a right perspective. Economic systems include financial, commercial and industrial activities which have greater influences on the behaviour of the people. The consumption pattern in the society monitors the behaviour of employees. Consumption oriented society have different employees' behaviour than that of production-oriented society. The economic system of the country provides and guides the production, processing, distribution and consumption of goods and services; determines the monetary and fiscal policies; decides the labour policy and security measures and helps people to lead a satiated life. Knowledge of economic systems is helpful to understand and mould the behaviour of people in an organisation.

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Sciences Scientific method is the backbone of organisational behaviour. Traditionally, behaviour was studied with intuition, guess, trial and error. But these techniques have not served the purpose of study of organisational behaviour. Now scientific method viz. observation of facts and behaviour, explanation offacts and relationship and getting conclusions thereon has become important base of study of organisational behaviour. The cause and effect relationship is established in organisational behavioural like that of science. The verification of the relationship and their quantification have added the importance of organisational behaviour. Now, it becomes easy to predict and mould the behaviour of people at work. Job performance causes job satisfaction. Many such other factors are verified and statistically established to understand and predict the behaviour of people. Science is a systematised knowledge. So, the organisational behaviour is also based on systematised study of facts, behaviour; their relationships and predictions. The researcher in the field of organisational behaviour investigates new facts, test theories, hypotheses and models. The personal bias, superfluous conclusions and whimsical approaches are avoided in the study of organisational behaviour. Systematised form of inquiry as a tool of science is used for the purpose viz., recognition of the problem, review of theories, development of hypotheses, observation, experimentation and interpretation. Technology Behaviour of employees differs from time to time as per technological development. Technology has built the base of advancement. The human behaviour in general and employees' behaviour in particular evolve innovation from the age of handicrafts to nuclear uses. Computerisation is rapidly changing the work behaviour. It has come within the framework of model of organisational behaviour. People have been influenced by technological development. Human behaviour, human relations and environments are developed as a result oftechnological innovation. The economic activities are changed and modified. Technology has changed consumer behaviour and production activities. It has reduced costs of production and increased varieties of products. The distribution and storage have gone through drastic changes. New markets and new consumption patterns are developed; which necessitates further innovation. People try to develop skills because unskilled employees have no place in the technologically developing countries. Management-labour relation is slightly disturbed; the labour wants to participate in management and protect the people at work against retrenchment and termination of their services at the behest of technological development. However, with increasing education and technical skills, people at work are becoming more responsibility conscious and development oriented. It encourages and facilitates effective work behaviour. Organisational culture is improved. Work environment becomes essential for proper understanding of organisational behaviour. Research Organisational behaviour has become the subject matter of research. It is realised that the study of behaviour of workers and managers has become cumbersome, complex and critical. The predictable behaviour is remote now. It is more difficult subject than science and technology because in organisational behaviour the study and research of human behaviour are very difficult and non-adaptable easily. People cannot be effectively controlled or manipulated as chemical or physical elements are controlled. However, attempts are made to study the behaviour of people in an organisation with the help of research and scientific study.

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Research in organisational behaviour is an ongoing process to support some relevant theories while discarding obsolete theories and creating new theories. Researches in organisational behaviour measure variables to arrive at some concrete conclusions. Variables are the important factors related to behaviour of people in organisation. Their job satisfaction, productivity, stress, ability and behaviour are measured in the light of various factors influencing them. The amplitude and intensity of variables are scientifically investigated and measured. Dependent and independent variables are tested with the help of correlation coefficient. The value of coefficient of correlation and regression co-efficient suggest the rate and direction of changes in variables. While testing the variables, hypotheses and theories; it becomes essential to examine their validity, reliability and general acceptability. Validity is the test to examine whether it really demonstrates what it is claiming. In other words whether the claims of the theory's contribution in organisational behaviour is really applicable in business or it is purely academic presentation. If the theory finds its phase in practice, it is valid. In caw theories of organisational behaviour are practically feasible, they have validity. The extent of feasibility decides the degree of validity. Sometimes, the theories and experiments lack validity on account of time lag, instrumentation, selection and mortality. The reliability reveals the consistency of measurement. The measuring instruments should be reliable to avoid any error in measurement. For example, parametric tools are useful to measure findings of sample. Correlation between two related variables will give reliable results but correlation between two non-related variables will not culminate in reliable conclusions. The research should provide general acceptability i.e., external validity. Research Design: The organisational behaviour as a subject depends on researches which use appropriate design for the purpose. The research designs are laboratory experiment, field achievement, survey design and case study. Laboratory experiments have a high degree of control. The effect oftraining on efficiency may be measured by laboratory experiments whereby the behaviour of new trained employees is closely observed and evaluated. Other things are assumed constant. The experiments are exercised to evaluate the impact of dependent factors on the dependent variables. Internal validity is observed in laboratory experiments. The interactivity and reactivity of variables are correctly measured in laboratory experiments because external factors are controlled and are assumed unchanged. The cause and effect, relationship, its magnitude and direction are revealed by laboratory experiments. Field experiment is generally used in organisational behaviour. It examines the changes in the behaviour of people. The hypotheses or effectiveness of the behaviour are tested with the help of field experiments. The problem of absenteeism is examined by observing two or more examples in field. For example, to study the impact of working hours on absenteeism two or more experiments are taken into account. The number of absentees when working hours are seven hours, eight hours and nine hours per day are noted down as per six days, five days and four days in a week. Consequently the results are received. The experiments conducted in real life and open environment are more valid, reliable and acceptable. The case studies make complete and clear examinations of behaviour of people at work. Case study is examination and analysis of one or more behavioural entities over a period of time. The investigator sincerely and accurately investigates the variables influencing the behaviour of people. It is a simple stud) of behaviour of people at work. Survey design prepares questionnaire to find out facts about thE problems. Interview and telephone enquiry are commonly used under survey design. ThE interview technique is used to assess the attitude, pelception, learning and personality 0 employees to assess their behaviour. Not only questionnaire; but personal interview and facia

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study are also used to explore the attitudes and behaviour of people. Research is a dynamic technique to explore, examine and suggest behaviour.

ROLE OF ORGANISATIONAL BEHAVIOUR Organisational behaviour has three important roles in any organisation: human resources . approach, contingency approach, system approach and productivity approach.

Human Resources Approach Organisational behaviour is mainly interested in human resources development. The employees' growth and development in an organisation are basic requirements for its continuous growth and survival. The success of any organisation depends on competency and creativity of its employees because they are central points of every functioning of management. Traditionally managers were important organs for getting task performance decided and done successfully with their direction and control. Employees cannot be treated merely as order followers; they are supportive and are made more responsible. Organisation has to develop suitable climate wherein employees can improve their behaviour with job satisfaction for getting organisational goals achieved with efficiency and economy. The developed employees improve their performance effectiveness. Satisfied employees utilise their fullest capacities for task performance. Developed employees contribute to the development of organisation with much zeal and spirit without creating conflicts and facing stress. If monetary incentives are given, it is a move to work only up to the time of monetary benefits. But if employees are developed, their capacities become prime mover for better work performance throughout life. The role of a manager has changed from controlled approach to supportive approach to employees. Contingency Approach The behavioural science has been accepted for solving problems which may come unabetted at any time. The behavioural knowledge is being applied to solve these problems. One or few accepted principles cannot solve all the problems. Employees are therefore developed sufficiently to face any sort of problems. They should have the capacities to meet the challenges of the environment. Employee-oriented leadership is better suited than the task-oriented leadership for solving any problem. Situations are much more complex. The employees are to be developed to handle the situations with the use of their capacities and capabilities rather than with the use of abstract principles. Different situations require different functions and behavioural approach. It is known as contingency approach because it believes that there is no one best way to handle the problems. Solutions as per situation is more effective and useful. It encourages analysis of each situation before and after occurring of the problems. The contingency approach is interdisciplinary and system-oriented approach of management. There is no perfect style of management. At some occasions, participative approach may be useful while in some situations, autocratic decisions will be more useful. The effectiveness of task performance is contingent upon the situation. Organisational behaviour deals with these contingents to arrive at appropriate decision in a particular situation. System Approach System includes several subsystems which are working in an organisation. These subsystems affect each other. Managers have to look beyond the immediate situations to foresee the future situations. There is need for a systematic and fruitful framework of describing general relationships. The purpose is to improve organisational behaviour for effective management. System is built wherein people work in congenial atmosphere. The theories of organisational

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behaviour are applied in the system for achieving organisational goals. Better organisational behaviour provides more success of system approach. The developed employees perform all the subsystems in an effective manner. Organisation and society are benefitted with the organisational behaviour. Better people have better organisational relationship wherein the objectives of individuals, organisation and society are subserved. General System Theory (GST) is developed for the success of system approach.

Productivity Approach The ultimate objective of organisational behaviour is to increase productivity. With the given amount of inputs, if production is improved, it is a symbol of productivity improvement. In other words, the productivity is the production volume per unit of input. It is measured in terms of economic inputs and outputs. Better organisational behaviour increases the output in relation to inputs. The human behaviour is developed for performing the jobs in an effective manner. If people's knowledge and skill are developed, their abilities to perform the task also increases. If proper motivation is provided, people use best of their abilities. The motivation depends on the situation and attitudes of the employees. The ability and motivation determine people's potential performance. If the human performance is supported with adequate resources; the organisational productivity is increased. Organisational behaviour influences people's knowledge, skill, attitude, ability and performance potential.

BEHAVIOURAL PROCESS Behavioural process involves analysis of environmental factors, individual dimensions of behaviour, organisational design and processes,job designing, group and inter-group dimensions, leadership, motivation, reward systems, organisational change and development, performance and appraisal of performance. Environmental Factors The environmental factors are assessed and evaluated for designing organisational processes andjobs. Social and cultural factors influence the behaviour of employees in progressive and retrogressive ways. If the people are progressive, their behaviour will be reflecting progressive attitude and they may take more interest in the development of organisation. The adverse attitude of employees may create problems for the organisation. The economic and religious factors have their impacts on the behaviour of people. The internal environment of the organisation i.e., working conditions, work relations, managers' attitude etc. have been shaping the behaviour of people. The environment may be predictable and complex. The behaviour process in an organisation have strong base on environmental factors which are properly assessed and evaluated to design a suitable behaviour in an organisation. Individual Dimensions The individual behaviour dimensions of employees are influenced by their respective attitude, perception, values, learning and personality. Since the behavioural factors are different in the employees, the organisation faces cross and conflicting behaviour several times. The organisational role to bring parity in their behaviour becomes crucial and critical; organisational behaviour process has to consider these factors, for designing effective and suitable behaviour of employees. Motives, capacities, familial factors have great impact on the perception, learning and personalities ofthe employees. Making decisions in an org,1nisation without proper analysis of these behavioural variables can cause irreversible reductions in performance.

Behaviour in Organisation

Environmental Factors

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Individual Dimensions

Organisational Design and Process

Organisational Change and Development

I-----------~

Fig. 2.1 Behaviour process

Organisational Design and Process The organisational process is designed to have maximum achievements. Keeping in view of the environments, technological development and functional process; the organisation plans for designing the behaviour of people. Environment and technology are considered for forming the goals and objectives of an organisation. Organisational process is the structure that enables the employees to perform their tasks. The sequence of activities, functional relations, product design and many other points are taken into account when designing the organisational process. Job Design Job design is the operational plan of individual employee's task. It is prepared to match the content and requirements of the task. The skills, abilities and the needs of the individual employees are decided to perform individual task. The nature and content of the job are guiding factors to assign jobs to an individual according to his capacity for achieving organisational goals and individual satisfaction. Employees' morals are achieved when they are satisfied at work. Sometimes, tasks need to be changed as per change in technological and managerial requirements. Group and Intergroup Dimensions The group behaviour has synergic impact on the performance. Group formation, group behaviour and group interactions are studied for the organisation process. Intra-and inter-group interactions are taken into consideration at the same time. The cooperation, coodination and conflicts influence the performances. Leadership Organisation must have effective leadership for its survival and growth. The leadership theories are perpetually accepted by organisation for smooth performance of the activities. There have been trait, situational and goal approaches for development ofleadership. An organisation

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gets success only because of its leadership style. A competent leader can use all the human and physical resources at the maximum for attaining the organisational goals. Leadership serves as the link among the individuals, groups and various other aspects of the organisation.

Motivation Motivation is essential for making the work going on in an organisation. People work not only for money but for getting job satisfaction. The motivation is provided individually andjointly by organisation, leader, group development process and reward system because they influence an individual's skills, efforts and attitudes towards work. The motivation theories viz., needs based, satisfiers, perceived equity and expectancies are used as per situation and objectives of organisation. Organisation should inculcate better motivation for the employees' full involvement in task and performance. Reward Systems Organisation has to develop suitable reward systems which may motivate the employees to attain corporate goals and provide them satisfaction at their work. The monetary and nonmonetary rewards have their respective advantages and disadvantages. Similarly intrinsic and extrinsic values of rewards should be properly understood to make them useful. Intrinsic rewards are to satisfy the internal desire and needs of employees. Their attitudes, values and preferences are not by intrinsic rewards. Internal satisfaction is prime mover of people's action. Employees take more interest in performing their jobs to get job satisfaction. Recognition of services, publication of photographs , personal appreciation by higher authorities make people feel highly satisfied. Extrinsic rewards are not less important as they fulfil the basic needs oflife. Monetary rewards and compensation are to maintain the capacity of employees. They are developed if they are given salaries according to their contribution. Organisation Change and Development Organisation development is needed for the change and development of individuals. Stagnation in organisation creating dissatisfaction because employees are not getting opportunities of development. The ultimate effect is that inability to survive is visible and organisation suffers consequently. The people in an organisation are interested in development of the organisation. They establish certain goals and try to formulate suitable plans and strategies to achieve the targets. The research and development functions are used for an organisation's development. The behaviour of individuals and groups are motivated accordingly. Performance Performance of organisation depends on the performances of individuals, groups and structure. Their performances are directed and guided towards objectives of the organisation. Individual and group behaviour have direct influence on the performance. Their behaviour are modified and developed to assure effective performances. Organisation has to provide essential facilities and opportunities for the development and maintenance of suitable behaviour at performance. Appraisal of Performance The last and most important process of organisation is appraisal of performance. The effectiveness of performance is measured by several criteria such as morale, productivity, goal achievement, personal judgement etc. They have their attributes and limitations. Absenteeism has been a very glaring symbol of dissatisfied behaviour of employees. The growth of an

Behaviour in Organisation

45

organisation is measured by goal achievement and productivity. The performance appraisal is done at individual, group and organisational levels. Performance indicates the success of an organisation. It reveals the weaknesses and strengths of the organisation, groups and individuals. The punishment and rewards are attached on the basis of the evaluation of individual's performance. The organisation aims to achieve its growth and development through behavioural development of individuals, groups and structure. MODELS OF ORGANISATIONAL BEHAVIOUR The basic purpose of model development is to understand the human behaviour in an organisation. Prediction and control of human behaviour are also taken into models of organisational behaviour. Behaviouristic approach is used for controlling and modifying the behaviour of individuals and groups for effective performance. The models of organisational behaviour are studied on development of organisational behaviour model and types of models of organisational behaviour. Developing Model of Organisational Behaviour Model illustrates the goals, parameters and factors of organisational behaviour. Model describes the abstraction of reality, simplifies the representation of real world phenomena. Model of organisational b(i!haviour explains the behaviour at individual, group and organisational levels. The models are developed on dependent and independent variables. Dependent Variables: The dependent variables of organisational behaviour are explored to find out the impact of behavioural factors on them. The skills and efficiencies of individuals are developed. Innovation and professionalisation take place. The organisation develops subsequently. In brief, the productivity, turnover and job satisfaction are increased as a result of improved organisational behaviour. (i) Productivity: The refined and improved behaviour of employees do have direct reflection on productivity. The effectiveness, efficiency and economy are observed in organisation at individual and group levels. Organisation achieves effectiveness when it achieves goals. Efficiency relates to qualitative performance of the activities. Economy is attained when work is performed at low cost. The output per unit of production tells about productivity which is attained as a result of realising efficiency, effectivenes~ and economy caused by improved behaviour of individuals, groups and organisation. Model framing requires anticipation and stipulation of the impact of certain behaviour on productivity, effectiveness, efficiency and economy. (ii) Turnover: The turnover is increased as a result of satisfied employees and modified behaviour. Employees are properly recruited, trained and motivated for achieving the organisational goals. They like position, power and influence, congenial atmosphere help them to achieve the organisational goals. They like position, power and influence. Congenial atmosphere help them to achieve the organisational goals and personal satisfaction. Increased opportunities of promotion, innovation and satisfaction also have indirect impacts on behaviour which helps to increase turnover of the organisation. The superior-subordinate relations are also helpful for enhancing the achievement and performance level of organisation. (iii) Job Satisfaction: Improved situation and group behaviour increase the satisfaction of individuals. The expectation of the employees are met. The differences between the amount of rewards and its expectation is the level of satisfaction. Organisational behaviour provides job satisfaction to employees. The quality of performance depends on satisfaction of employees.

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Individual satisfaction is legitimate result of organisational behaviour. It is observed that satisfied employees prefer to work hard and attend the work without being absent. But dissatisfied employees are prone to absenteeism which may result in disruption of performance and quality. The satisfied employees as a result of proper behaviour and congenial atmosphere avoid the negative approach. They like to work hard and get job satisfaction. Independent Variables: The independent variables influencing organisational model of behaviour are individual, group and structure of the organisation. (i) Individual Variables: The individuals having their own personalities, preferences, values, attitudes and learnings; influence the work environment differently. The management cannot control these variables. Rather they have to use these factors for effective performance. The degree of influences of these are studied under perception, learning and personality. Although these factors cannot be changed totally. It can be modified to meet the requirements of an organisation. (ii) Group Variables: The group variables are important factors to influence organisational behaviour. Group has more impact than sum ofindividual contribution. Synergy, i.e., contribution of people in groups is more than the sum total of contribution of each individual is obtained through group variables. Group behaviohrs have more impact on an organisation. However, if group behaviour is not controlled; it may damage more than the individual employees. The group behaviour is studied under several heads such as group dynamics, pattern of behaviour, degree of group functions, communication pattern, group decision, leadership, power and politics, interand intra-group, conflict effects and resolutions. The group variables are studied and directed for effective performance, goals achievements and individual satisfaction. (iii) Structural Variables: The structures of an organisation have their own functional relations. Sophisticated structure have sophisticated behaviour. Straight line communication and unity of command have disciplined behaviour. Multiple command may create conflicts. Formal relations have definite behaviour whereas informal organisation have more positive impact on organisational behaviour, selection, training, motivation, level of work stress, conflict, coordination and control are considered points of structural variables.

Types of Models of Organisational Behaviour The models of organisational behaviour are developed with the assumptions of dependent and independent variables as discussed already. The models of organisational behaviour are developed through the historical development of management thought. In India, the behaviour models differ from organisation to organisation and industry to industry. Varying degrees of these models are used even in one organisation. For examples, finance department uses supportive models while production department concentrates on autocratic model. There may be different types of organisational models viz., feudal model, autocratic model, custodial model, supportive model, collegial model, human value model and contingency model. Feudal Model: The feudal model treated employees as inferior elements in an organisation. The employees should be treated sternly. Hire and fire principle was applicable in the organisation, Leniency in work and performance was liable for stern punishment. Fear psychosis was prevailing in the minds of employees. People's desires and values were not considered for management purposes. It was very well known as Theory X wherein actions, policies and procedures were considered superior to human beings. Carrot (money) and stick (threat of retrenchment) approach was used for motivation. It concentrated on formal organisation and ignored human and social values.

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Autocratic Model: The autocratic model believes in power and authority of manager. Employees have to obey the manager's orders. Only minimum needs of employees are met. It believes that higher salary given to employees is wasted as they do use them for unproductive purposes. Managers have position and official authority which is used to control employees' activities to get atleast the minimum work done by them. Managers are considered superiors and their orders are final. Employees are driven to work as this model assumes that nobody wants to work unless he is forced to work. Managers are given maximum power to hire, fire and perspire the employees. Managers are considered natural born leaders who are obeyed and respected in all the areas. Autocratic model proved a successful management practice in developed countries like U.S.A., England, Canada, etc. Even today, this model is used to manage trouble-ridden organisations. During organisational crisis, it becomes the only resort of management. The autocratic model has proved ineffective in many cases because of increasing education and realising of human values by the sociologists and philanthropists. When human rights commission have been established in almost all the countries, the autocratic model is reduced to the level of following the rules, regulations and instructions of organisation. Custodial Model: The custodial model as given by Trusteeship Model of Mahatma Gandhi acquired popularity in recent years. Here the owners and managers are considered custodians of resources and are bound to look after the welfare of employees to a certain possible extent. It considers that the capital and capacity are not the monopoly of managers and industrialists only; they belong to employees also. The employees are given opportunities to redress their problems. They can bring the insecurity, frustrations and other problems to the notice of managers who are obliged to solve their problems. Employees are entitled for security and benefits. They depend on organisation for their security and welfare. Trade unions developed the custodial approach depends on economic resources. The organisation plans for pensions, adequate wages and bonus for increasing productivity. The employees get the fair wages rather than subsistence wages. They depend on organisation rather than on boss. They devote their energy for the development of organisation because organisation is looking after the employees' welfare while in service and also after retirement. Employees are interested in economic rewards and benefits. They contribute passively because money is the motivating factor for employees. The direct cooperation is not sought. Employees get satisfaction and security. The psychological motivation is not used. Employees' values, preferences and attitudes are not given due consideration for motivation. Money is considered the most effective motivator although in many cases, they are not influenced with money. However, custodial model is more useful model for the development of an organisation. Supportive Model: Supportive model believes in supportive relationship, organisation develops leadership to ensure maximum use of resources for getting organisation goals achieved. The leaders are responsible for the success and failure of the organisation because money and power have no such impact on the performance as discussed already in the custodial and autocratic model. Employees are considered active workers who have their own desires and preferences. Leaders use the attitude and values of the employees for motivating them. It is assumed that the employees are not passive by nature but they do not get favourable atmosphere to demonstrate their worth. It is for the leaders to support them and utilise their capacities for better performance. If the employees are given opportunities they would like to develop their capacities. Management has to provide and support developmental activities of employees. It is not only the benefits to employees, but supportive activities for the development of employees which can increase productivity of the organisation as a whole. The psychological treatment of the employees, the sense ofbelongingness with the organisation and the feelings of participation

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help the development of employees. An employee if developed contributes significantly to the growth of the organisation. Supportive model does not believe in monetary support but it emphasises on the work support. It has been observed that the supportive model has developed employees and managers. It is an accepted fact that supportive approach is essential for organisational behaviour. Many organisations have developed as a result of supportive model. Supportive model of organisational theory helps development ofindividuals, groups and structure. Supportive mouel is more effective in developed countries because of developed attitudes of management and employees. However, the supportive model is not very useful in developing nations because of restricting social and cultural environment. Many big houses have successfully adopted supportive model because of their affordable capacities to develop individuals and groups. Employees get opportunities of status recognition. They have awakened drives and positive attitudes. The managers and the employees participate together in the development of the organisation while developing their individual capacities and efficiencies. Job performance is the real job satisfaction. Collegial Model: The basis of collegial model is partnership of employees and owners of an organisation. The management performs with employees as team worker. Employees are given responsible jobs. They are trusted for work. They are self-disciplined and self-motivated. Team spirit is observed in management. Collegial means body of persons having the same objective. Employees working in factory, field and office are collegial. They have similar activities, work environment and understanding. Managers are co-workers and are not considered superior or masters of employees. They contribute jointly rather than as leaders or bosses. They have to develop team with employees and stress upon quality and complete performance. Their combined functions contribute to the success of the organisation like sportsmen in a team. Human Value Model: Organisation should appreciate human values of employees rather economic values. People work in organisation not only for fulfilling the economic needs but they devote time there for getting satisfaction and fulfilling their social and psychological needs. They bother for human dignity. Economic value refers to economic well-being of people. It is allocative i.e., self-generating and developing. The natural process of behaviour is stimulus organism. Behaviour and consequences are observed under human values model. It is briefly known as SOBC model. The organisation should provide appropriate stimuli for their change into consequence. The environment of organisation, inter and intra personal relations, cognitive behaviour, monetary and supportive stimuli are exercised for influencing the organisation of employees. The need identification, prediction of behaviour and person's cognition are used to influence the individual behaviour. The stimuli may be either overt (external) or covert (internal). They may be physical, social, cultural and technological operants. It identifies the best variables causing positive consequences. Organisms influenced by stimuli may be physiologically and mentally able to express overt and covert responses. Contingency Model: Contingency model of organisational behaviour assumes complex variables influencing the behaviour ofindividuals , groups and structure. So contingent solutions are designed to meet the challenges of growth. Conflict, complexities and structural changes, human attitudes and organisational process are interviewed through communication, power and goal setting. Theory Z is developed by Abraham Maslow to demonstrate contingent model. It is also known as hybrid model wherein long-term employment and promotion are guaranteed. Individual responsibility and nonspecialised careers are prevalent. Control systems are less formal. It fosters close cooperation, trusting relationships between managers and employees and team work. This theory creates humanistic philosophy and tries to meet multiple employee needs.

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TAXONOMY OF ORGANISATION RESEARCH Organisational behaviour uses research findings for its development apart from using the findings of journals, documents, conferences, discussions and discoveries of science and technology. Taxonomy relates to breadth of application, level of research, degree of research control, selecting a strategy and application of findings.

Breadth of Application The research is widened from pure research to action research. Pure research is concerned with advancing of knowledge. It tries to understand some phenomena and cause and effect relationship theories. It does not bother whether the findings are used in practice or not. On the other hand, applied research is related with practice and practical problems. It tells us about the observations ofthe reality and suggests the measures which can be used in practise without much problems. Service research is used for analysing the behaviour and problems related to that. It diagnoses the real problem an~ suggests practical measures. Action research relates to the investigation, analysis and recommendations of behavioural science. It helps minimisation of problems. The change in behaviour is analysed; which may occur in structure individuals, groups, technology and environment. The research findings are used in behaviour. Level of Research The descriptive, conclusive and experimental research designs are used to study organisational behaviour. Descriptive design illustrates how structure will be useful for resorting to a particular behaviour. Conclusive research design establishes cause and effect relationships. It predicts individual behaviour, performance and goal attainment. Experimental research designs tell the level or degree of relationships between dependent and independent variables. It helps to find out the pattern and direction of variables of behaviour. The employees' satisfaction with performance can be easily measured with the use of experimental research. Degree of Control The degree of control on research process influences the validity and reliability of research findings. Case study, field study, laboratory study and other forms of studies have different levels of degree of control. Case study describes what had happened in the past. The researcher has no control over the happenings. It is merely a guide to predict the future. In field study, the researcher has some control over selection of research units, observations, interviews, data analysis and interpretation. Laboratory research has some higher degree of control over research units and analysis. Selecting of Strategy The strategy of research may be fact finding and causal study. The control, manipulation, realism, scope and precision are considered for selecting a strategy. The researcher can study job satisfaction, leadership, performance level, morale level etc. with certain precision and accuracy. The validity, reliability and precision of research findings of action research are deciding factors for selecting an appropriate strategy. Application of Research Methodology The scientific methods used in research involve observation, deduction and verification. The research methodology, i.e., the formation of objectives, developing hypotheses, collection of data, analysis and interpretation of data and information is used to find out suggestions for diagnosing behavioural problems. 000

Chapter 3

PERCEPTION 1. 2. 3.

PERCEPTION DEFINED FACTORS AFFECTING PERCEPTION PERCEPTION - MODELS

The psychological processes that allow an individual to adjust his behaviour are perception. The individual behaviour is influenced by his personality, motives and efforts. The behaviour and performance provide satisfaction to the employee who gets stimuli to work more and more through developing his personality and work quality.

Satisfaction

Performance Fig. 3.1 Behaviour Process

The behaviour is victim of environment which is observed in the form of stimuli. The sensory organs perceive the stimuli as per their learning and personality. The reverse functions are also correct. The perception if modified through adequate and qualitative stimuli help develop learning and personality. Improved behaviour has better performance and rewards which provide more satisfaction to the employees. A satisfied employee tries to learn and work effectively. Organisation develops as the developed employees. Perception is therefore an important and initial step for developing organisational behaviour.

Perception Perception is a cognitive process which selects, organises and interprets the stimuli. It paves the base for behaviour. Although perception may not be real world presentation. It is an imaginary understanding of the situation. The behaviour of an individual is guided by perception. People perceive differently as per their learning and personality. Perceptual world of a manager is different from the perceptual world of employees. Social factors also influence perception

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process. Employees coming from poor family have different perception about the organisation than those coming from rich family. The level of education, family background and political situation have direct impact on the perception level.

Definition Perception may be defined as a cognitive process by which people attend to incoming stimuli, organise and interpret such stimuli into behaviour. "Perception can be defined as a process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment."l Environment is stimulus to influence behaviour because the stimuli are attended, organised and interpreted to arrive at certain form of behaviour. The sensory organs i.e., eye, nose, ear, skin and tongue are used to change the stimuli into behaviour through their attention, recognition and interpretation process. The raw information or stimuli are not accepted by individuals unless they are evaluated and interpreted by the mental processing system. Individuals are attending to the stimuli, recognising and translating them into meaningful information which may inspire to act and perform the job. These processes are known as perceptual processes. When employees get satisfaction at the performance either through meeting the physical or mental needs, they perceive the organisation in a right perspective. It helps them better understand the functions and satisfaction. Components of Perception Perception is a process of sensory organism. Mind gets information through the five sense organs viz., eyes, ear, nose, mouth and skin. The stimulation coming to these organs may be of colour action, written messages, oral communication, odour, taste, touch of the product and people. The perception starts with the awareness of stimuli. Recognising the stimuli takes place only after paying attention to these stimuli. These messages are translated into action and behaviour. Recognition Performance ...- - - - - - - - - - / Fig. 3.2 Components of Perception

Stimuli The stimulation of information is stimulus which helps sensation in the pf>Gple. Knowledge and behaviour depend on senses and their stimulation. The physical senses used by people to be awarded by them are vision, hearing, touch, smell and taste. The intuition and hunches are known as sixth sense. These senses are influenced by a larger number of stimuli which may be action, information, consideration and feeling etc. The stimuli may be objects or physical commodity to be accepted by sensory organs. The human body itself is developed through the accepting of the stimuli. Mind and soul are victims of these stimuli occurring in the surrounding of the people. Family, social and economic environment are developing important stimuli for the people. The physiological and psychological functions are the result of stimuli. The inteI).sive and extensive form of stimuli have greater impact on the sensory organs. The physical work 1. Stephen P. Robbins: Organisational Behaviour: Prentice Hall of India. p. 125.

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Organisational Behaviour and Corporate Development

environment, socio-cultural environment and other factors have certain stimuli to influence the employees' perception. As given in Fig. 3.1, the perception begins only when people confront stimuli i.e., stimulating factors, situation and information.

Attention Stimuli are selectively attended by people. Some of the stimuli are attended and others are left out without paying any attention. What stimuli are paid attention depend purely on the people's selection capacity and intensity of stimuli. The educated employees pay more attention to any stimuli viz. announcement of bonus, appeal for increasing productivity, training and motivation. Management has to find out suitable stimuli which can appeal to the employees at the maximum. If attention of employees is not drawn, the organisation cannot expect proper behaviour from the employees. Organisation should know all those factors which affect the attention of the employees. During the attention process, sensory and neural mechanisms are affected and the message receiver becomes attuned to understand the stimuli. Taking the employees to the attention stage is essential in an organisation for making them behave in a systematic and required order. Recognition Mter paying attention to the stimuli: The employees try to recognise the stimuli whether, they are worth realising. The message or incoming stimuli are recognised before they are transmitted into behaviour. Perception is a two-phase activity i.e. receiving stimuli and translating the stimuli into action. But before the stage of translation, the stimuli must be recognised by the individual. The recognition process is mental acceptability. For example if a car driver suddenly gets a child in front of his running car, he stops the car. He recognises the stimuli i.e., the life of the child is in danger. His mental process recognises the danger after paying attention to the stimuli. Suppose he does not pay attention to the stimuli, he cannot recognise the danger. Mter recognising the stimuli, he translates the message into behaviour. Translation The stimuli are evaluated before being converted into action or behaviour. The evaluation process is translation. In the above example, the car driver after recognising the stimuli uses the clutch and brakes to stop the car. He has immediately translated the stimulus into an appropriate action. The perception process is purely mental before it is converted into action. The conversion is translation. Management in organisation have to consider various processes of translating the message into action. The employees should be assisted to translate the stimuli into action. For example, announcement of bonus should be recognised as stimulus for increasing production. The employees should translate it into their behaviour. In other words, they should be motivated by the management to increase the productivity. During translation period, physiological mechanisms commonly known as sensory and mental organs are affected. They influence perception. The incoming stimuli are interpreted and perception is developed. Behaviour Behaviour is the outcome of cognitive process. It is a response to change in senSQry inputs i.e., stimuli. It is overt"and covert response. The perceptual behaviour is not influenced by reality but it has occurred as a result of perception process of individual, his learning and personality, environmental factors and other internal and external factors of the work place. The psychological feedback that may influence perception of an employee may be superior behaviour, his eye movement, raising of eyebrow and ton~ of voice etc. The behaviour of employees depends on

Perception

53

perception which is visible in the fonn of action, reaction or other behaviour. The behavioural termination of perception may be overt or covert. The overt behaviour of perception is witnessed in the form of physical activities of the employees and covert behaviour is observed in the form of mental evaluation and self esteem. The perception behaviour is result of cognitive process of stimuli which may be message, action, situation of management function. Perception is reflected in behaviour which is visible in different forms of employees' action and motivation.

Performance Proper behaviour leads to higher perfonnance. The high performers become a source of stimuli and motivation to other employees. Performance-reward relationship is established to motivate people. Satisfaction High perfonnance gives more satisfaction. The level of satisfaction is calculated with the difference of perfonnance and expectation. If the perfonnance is more than the expectation, people are delighted, but when perfonnance is first equal to expectation, it is satisfaction. On the reverse, if perfonnance is less than the expectation, people are frustrated which requires a more appealing form of stimuli for developing the employees to have proper work behaviour and high performance. It is essential to understand the factors influencing perception process to mould employees' behaviour towards the corporate objectives and self satisfaction. Stimuli: A. Overt: (External environment) 1. Physical 2. Socio-cultural 3. Work relation B. Covert: (Internal environment) 1. Sensor 2. Self

~

Satisfaction: Expectation acd Performance Evaluation

Attention: Sensory and Neural Mechanism

f-4-

Recognition: ~

Mediators and ~ Physical Organisms

Performance: Action Satisfaction Reaction Retrospection

r---

Translation: Response Organism Decisions

Behaviour Overt Physical action 14----' Covert Mental state

I

Fig. 3.3 Behavioural Terminals of Perception

Several stimuli are being observed everyday by the individuals. They confront these stimuli, notice them, register in their mind, interpret and behave as per their background and understandings. Employees confronted with the stimuli select only few stimuli of their choice and leave other stimuli unattended and unrecognised. Factors influencing the selectivity process may be external factors, internal factors, organisational structure, social systems and characteristics of the perceivers.

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Organisational Behaviour and Corporate Development

FACTORS INFLUENCING PERCEPTION PROCESS No doubt stimuli plays a significant role in perception process. Various factors relating to perception process have been noticed by behaviourists. The factors influencing perceptions are perceiver's characteristics, object and situations. However, they can be analysed under specific heads such as perceiver's characteristics, external factors, internal factors, organisational structure and social conditions. Perceiver's Characteristics Perception depends on how an individual views the object and situation. Some employees may perceive work place as a favourable working condition while others perceive it as a place of good pay. The perception is not actual reality but it is viewing of the reality which differs from person to person according to their respective characteristics. Perceptions of the object are influenced by not only own characteristics but also by the characteristics of other employees. The manager's personality and employees' views form the perception of the work place. The characteristics of employees viz., attitudes, motives, interests, habits, experience, expectation, learning and personality have greater influence on perceptional foundation. Attitude The attitude and aptitude of employees influence the perception formation. If they have positive attitudes towards the management, they directly perceive the stimuli given by management. In case of negative attitude, the employees have suspicion about the management's approach. Employees of high aptitude have desire for attitude and growth. They behave positively in the management of organisation. Motives The motives and desires of employees view the stimuli differently as per their level and angle. Helpful motives ofthe employees will assist management always. Ifthey desire to develop themselves and the organisation they would perceive the objects and situations positively. Employees having low motives will not work sincerely. The perception is differently observed in different types of motives. An indecisive manager perceives his supervisors differently. Personal insecurity of manager has doubtful perception about supervisors irrespective of their intention. People who are dubious are prone to see others as dubious persons. Motives reflect into action based on perception. Interest Interest of individuals pays more attention and recognition to the stimuli. Less attention and recognition have less impact of stimuli or object on behaviour. If employees lack interest, the behaviour pattern will be less effective, perception will be weak. Managers cannot influence the employees for work, culture since individual interests vary from person to person, the perception is different in different persons. However, management tries to create interest amongst the employees to have higher perception of the organisation. Habits Habits die hard. So, individuals perceive the objects, situations and conditions differently according to their habits. Many employees learn quickly. Others are slow in perceiving a stimulus. Some employees are not bothered about the management. They do not perceive the objects correctly. Some people are working at the force of smoking or pan chewing. Thus, the habits of people have different perception level.

55

Perception

.

Stimuli or Reception

i View

L

Attention, Recognition and Translation or Interpretation

Personal Characteristics

~

..

Behaviour or Response

t

Performance I

Attitude Motives Interests Habits Experience Expectation Learning Personality Fig. 3.5 Personal Factors Influencing Perception

Experience The experience of employees has different level of perception. A young employee takes time to understand the object and situation. Experienced employees generally understand the objects quickly and correctly. However, in contradictory situations, it is difficult to amend the aged persons whereas the young persons are easily amended towards the objectives of the organisation. Expectation Expectation distorts the perception. People see what they expect to see. If they see the object and situation differently from expectation, they get frustration. They are unable to modify the behaviour. The employees may expect more pay. So they perceive the management from that angle. The real stimuli are not properly perceived if expectations are loaded thereon. The management has to evolve the expectations for proper perception.

Learning Learning level of employees have a great impact on the perception. It is more important factor to influence the perception formation. Educated persons perceive highly than the less educated persons. The attitude is developed as per learning level. Personality Personality has different levels of perception. Personality of a perceiving person affects considerably the stimuli transformation behaviour process. Young people perceive the objects and situation in the original form. The experienced persons perceive the objects as per personality level. Perception influences learning which is a developing factor of personality. The personality has wider impact on perception process too. Person can view the objects and situations as per their personality level. The age, sex, motivation learning level etc. influence the perception. External Factors . \ The perception process is influenced with the external factors which may be objects anc situation. The external points related to objects and situations have great influence on tht perception process. The external faction may be size, interest, contrast, repetition, motior familiarity, novelty and other factors.

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Organisational Behaviour and Corporate Development

Size The size ofthe object or stimulus has greater impact on the perception process because the size influences the attention and recognition in a more effective manner. Employees are greatly influenced by the strong, dark and tall manager as compared to normal size of individuals. The engineering department pays more attention to th~ big and attractive machines. Big size ofthe object has natural attraction and attention.

Intensity The researchers on human behaviour have revealed that the more intense the stimuli are, the higher attention and recognition are the perception process. A strong voice of manager has more impact on the supervisors and employees. It is observed that managers use voice modulation to get attention of employees. Bright letters and strong appeal have more impact on the people than the normal letters and low appeal. More attention have more recognition and behaviour pattern. The intensity varies as per need of the organisation. One type of intensity may not be useful for all the situations and objects. Contrast Contrast objects have more impact on behaviour. Employees pay more attention and recognition to the contrast objects and situations. Machines making noises are hardly attended. But a machine coming to halt is immediately noticed because of contrast stimuli. Normal communication and performance have least impact than the abnormal and contrast communication. The purpose of contrast stimuli is to attract more attention and recognition. But, if the contrast is not helping more attention, it should be avoided and more attentiondrawing stimuli should be exercised for having real perception of work behaviour. Reception Repeated stimuli have more impact on performance than single statement. Repetition has more change of attention-catching as well as recognition. When the stimuli are waning, repetition makes them afresh for attention and recognition. Supervisors repeat the orders several times to make them followed by the employees. Motion People pay more attention to the moving objects than to the stationary objects. It is just an impact of eyes on the mind. Workers are more attentive towards working machines than the stationary machines. The video films of some training programmes have more impact on the employees. Familiarity An employee will like to hear and see easily to those programmes to which they are familiar. The training programmes demonstrated in the language of the employees are highly attended and recognised. The examples known and easily understood are used for motivating the employees. Novelty Novel actions are getting more attention. New ideas and model preaching will draw more attention of the perceiver. Changing jobs reduces the monotony. Noble objects and situations are recognised clearly by the perceivers.

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57

Situation The situations have great influence on the people's perception. Favourable work environment develops positive attitude and work culture because the perception process is easily channelised and rightly directed. The management style and function of the organisation influence the employee's mental state through attention and recognition. The work relations have also some impact on the perception forces. Objects The objects have been external factors to influence the perceiver because he has no control over the objects. The physical and internal attributes of objects are influencing factors of perception. The physical and time proximity, complex motive of objects, presentation of message and territorial approach of the management have great impact on the perception. Internal Factors The internal factors are within the personal control of the perceivers. They use these factors when they desire. They are based on individual's psychological set-up, economic and social background, learning, personality and motivation. Psychological Set-up The attitude, interest, preferences, linking and other psychological bent of mind distorts the perception process. People perceive what they like to perceive because of their attitudinal and mental approaches. These factors are the outcome of not only selffactors of individuals but action and interaction with other people. People working with the employees help foundation of psychological set-up. One person's problem may be another person's satisfaction. For example giving higher bonus is a state of satisfaction to employees but has become a problem for managers. Economic and Social Background The employees' perceptions are based on economic and social background. The employees' level of understanding depends upon their economic and social background. Socially and economically developed employees have more positive attitude towards development than the less developed employees. However, the developed employees are prone to decision oriented functions. The conflict between managers and employees are increasing in this case. The problems are resolved only through proper perception process. Learning The state of learning influences perception process. Highly educated persons can easily and rightly perceive the management's problem. They cooperate in problem solution. On the contrary less educated employees are least concerned with the management. They perceive management as a separate and superior part, who tend to exploit the labour irrespective of the reality. People perceive as per their level oflearning. It is therefore essential for the organisation to make its employees well learnt and educated for effective performance and behaviour. The learning of managers and workers are twin requirements. Personality Personality of perceiver as well as ofthe stimulator have impact on the perception process. The age, sex, race, dress, facial expression, body postures of both the persons have direct influence on the perception process. If the perceiver is female and stimulator is a male, the perceiver gets some influence only if she is male preferring. Otherwise the perception process is distorted. The

Organisational Behaviour and Corporate Development

58

ethnic personality, have some influence on perception. Physical and mental characteristics, work pattern, the age group people either uptight or titillate the perception process.

Motivation The pattern of motivation in an organisation helps develop perception building. Motivated people have right perception about the stimuli whereas the low-profiled workers are doubtful about the message given by management for development. The female approach to problem have given more attention and recognition. Employees are more attentive to female managers for motivation. The motivational theories have revealed how a particular category of employees' reference perception process works. Attention is drawn toward their need, satisfaction and achievement of desires. The mental state of motivational desire influences the perception process.

I Stimuli J

.1 Attention, Recognition 1 and Translation

External Factors Size Intensity L......,. Contrast Repetition Motion Novelties Situations Objects

I

LBehaviour

J

f

Internal Factors Psychological Set-up Socio-Economic Background Learning Personalities Motivation of perceivers and stimulators

r

---i Performance I

Fig. 3.6 External and Internal Factors of ~erception Process

The stimuli based on external factors are having various degrees of attention and recognition. Internal factors i.e., factors related to employees and managers have different degrees of impact on attention and recognition process while being translated into behaviour which gives a set of performance. Organisational Structure The perceptual process is influenced by organisational structure and process. The perception structure, perceptual grouping, perceptual constancy, perceptual context, perceptual defence, perceptual work place and process have been recognised as important factors influencing the perceptual process. Perceptual Structure The organisational structure influences the perception of employees and other people related with the organisation. The departmentation, decentralisation delegation of authority and other structural framework have important bearings in the mind of employees. Adequate amount of decentralisation makes employees feel that the organisation is welfare oriented. Similarly, too much centralisation gives the feeling of suspicion in the minds of employees. Structure itself becomes a flow chart of perception. The work relations and decision making authority provide important understandings of the organIsational perception. If the structure is viewed positively by the employees, they would willingly contribute in the development of the organisation.

Perception

59

Perceptual Grouping The manager generally groups all the stimuli together to influence the employees. The grouping is done based on closure, continuity, similarity and proximity, Closure doctrine of grouping is based on gestalt principle of psychology wherein the individuals perceive the whole object although the whole unit does not exist. For example, the manager perceives that all the members cooperate with him for computerisation nevertheless some members really oppose the mechanisation. The manager tries to close the disagreement and maintains unity in agreement for mechanisation. On the other hand, if the members do not shun their disagreement, they observe their individual perception. The continuity principle emphasises that the stimuli should continue to make impact on the perceiver. The discrete stimuli may distort perception process, continuity principle is different from the closure principle as missing stimuli are supplied in the latter case whereas continuous link is maintained in the former case. It is observed that only continuous and related stimuli are easily attended and recognised. The obvious and continuous flow of stimuli may produce the desired behaviour. The similarity principle assumes that similar stimuli are easily attended, recognised and perceived. The similarity has its own impact on the employees. For example, employees wearing special clothes at work place automatically carry the message of the organisation. Similarity age, sex, education and other characteristics have direct impact on the employees' perception. The proximity principle refers to the union of the segments into one unit. Nearness of stimuli will be perceived as wholesome group. All the stimuli are considered one because of physical proximity. For example, all the employees in one cadre will be considered as one group which are stimulated by prox;imate stimuli. Departmental employees are considered single group employees because of proximity. They are motivated on proximity stimuli. Perceptual Constancy The perceptual constancy plays an important role in the perception process. The stability and unchangeability of objects help constant perception process by the people. The constancy of stimuli makes perception easy because people become accustomed with the stimuli. The size, shape, place and colour of objects and situation are easily observed if they are constant. The constant stimuli make the perception process easy and effective. Perceptual Context The context of the stimuli with reference to the objects and situations have meaningful impact on the perceiver. Ifthe perceiver has confidence that the stimuli are relevant to his work and award, he might pay more attention to the perception process. The policy and objectives relevant to employees' welfare are paid more attention to verbal communication in the relevant context are given more perceptual consideration. Perceptual Defence The defensive role of management is well recognised by the employees. There are many points when employees develop conflicts which are resolved by the management. Such functions which are providing defence to conflicting views are given more importance by the employees. People like to defined their professions, work and work relations if they are satisfied. On the contrary, they criticise their own work and work place. Many workers perceive the conflicts as not very serious. They only take the conflicts as casual and usual without any significant features. Some employees find the conflicts as alarming. They get warning signs and perceive the situation

60

Organisational Behaviour and Corporate Development

differently. Managers can find different perceptions for their addition because they view the situation from defence angle.

Perceptual Work place Perceptual process is affected by the work place too; the climate, temperature, noise, smoke and other factors have direct bearing on the perceptual and psychological organisms of the employees. Consequently, the perceptual process is different for different employees. Some employees develop positive perception and others develop negative perception about the work place. All the employees perceive the same situation and object differently because of varied nature of work place. PERCEPTUAL PROCESS The relationship between employees and managers playa crucial role in the perceptual process. Employees may perceive low output with pleasure to influence their supervisor. The management may perceive differently about performance evolution. Some may perceive self fulfilling prophecy or Pygmalion complex. Effective management is expecting too high or too low from the employees to perform the jobs. High expectation inspires managers to motivate their employees positively. Managers develop subjective attitudes many times about he performance and process. Besides, the employees efforts are also considered for performance and process evaluation. During work process, some employees are trouble makers and some are loyal. The perceptual process is important factor for perception process of management and employees. Social Factors Social conditions have much influence on the perception process. The perceivers and the perceived objects have complex characteristics. They are perceived differently in different situations. The attributes of object have been important considerations to influence selectivity process of perception. Attributes of objects, subject, and situation of the perceiver have become so important that a separate theory known as attribution theory has been developed under perception theory. Social factors considers how one person behaves with others and other people behave with him. The interaction between manager and subordinates is taken under social factors which include stereotyping effect, halo effect, contrast effect and projection. Stereotyping Effect The perception process is taking shortest method in some cases and consider only routine effect. Stereotype judgement is based on ideal or type of impression formed about the group. It is consideration ofindividual characteristics as representative ofthe whole group. If an employee is found well-behaved, the whole group of employees is considered to be good. Ifin an organisation, a manager is helpful, it is generalised that the organisation is very helpful and sympathetic towards employees. It is inductive method wherein conclusions are aggregated from individual's performance. i.e., it accumulates particular cases to arrive at general conclusions. Stereotyping is generalisation which has several advantages of time saving, accurate decisions and common consideration. For example, if the management has experienced that sportsmen and athletes have been very successful workers in the factory. They are found ambitions, hardworking and can easily encounter the adverse situation. In future selection process, the management may appoint such sportsmen and athletes without undergoing many selection procedures. Similarly many decisions are taken on stereotyping effect. The generalisation may prove disastrous if it is too much relied upon without proper scrutiny and examination of individual characteristics.

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61

The most important stereotyping effects are observed in the form of age, sex, nationality and social status. The stereotyping effects under social perception, consider the attributes, traits and other qualities of members of social organisation. These qualities are generalised as the qualities of the social organisation or group. However, there may be perceptual errors because the generalised attributes and qualities may not be found in all the cases. Therefore, the perception process takes into consideration the amount of perceptual errors when deriving conclusions based on stereotyping effects. The favourable and unfavourable traits are always calculated and evaluated to find out their impact on the behaviour or decision. Stereotyping has become important factor of social perception which is based on ethnic group, socio-economic group, demographic group and so on. The individual differences in the group are recorded to evaluate the perceptual errors in arriving at stereotyping effects. The belief factor in stereotyping effects has become important tool to arrive at certain decisions. One can conclude that an organisation has democratic or teamster manager. The common characteristics are the basis of belief. If a manager belongs to the said democratic organisation, one can believe Cat he will also have the same characteristics. The errors may be there in belief because of ignoring the variations in characteristics and holding mistaken beliefs. The beliefs or stereotyping effects are modified from time to time to arrive at correct perception behaviour and decisions.

Halo Effect The halo effect occurs when only a single factor is taken for performance evaluation or perception process ignoring all important considerations. For example, if an employee is considered good on one account, he is treated good on all accounts. But in reality, he may not be good on every account. Halo effect is related with the total personality assessment based only on a single trait. If a manager is found intelligent, he is considered good for cooperation, dependability and for other purposes. The halo effect arises on account of nuclear expressions of traits, traits not frequently encountered and having moral implications. Perception process becomes deceptive if only one factor is given more importance. Suppose an employee possesses all the qualities except personal loyalty to manager, he is not put in the same perceptual set up as the personally loyal employees having no profession attributes and work devotion. The halo effect is an attribution. Error or perceptual error which should be avoided in perception process. The communicating authority should be well aware of the halo effect for proper motivation. Contrast Effect Like stereotyping and halo effects, contrast effect is another factor of social perception, perception in a group. People perceive differently in many cases. What a manager emphasises, the employees take different picture of the stimuli. For example, a manager asks the employees to increase productivity for getting extra bonus. Employees may view this stimulus or message as the manager is bothered for his promotion. If employees develop this perception and translate into practice, the stimulus works against the purpose. The contrast effect is an error of social perception. Politicians are generally producing contrast effect amongst the audience. The contrast effect occurs because of doubtful relations, swift conclusions, unfavourable attitude and so on. Projection Generalisation leads to projection. People have developed habits of projection although it may not be correct. People may project the future events differently from the reality in many

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Organisational Behaviour and Corporate Development

cases. The personal attribute, objects and situational conditions are helpful criteria for projection. Projection may not always be incorrect. If it is properly evaluated and placed, projection may give correct perception. For example, if a manager is trustworthy, he may treat employees also as trustworthy. Contrary to this, many employees may not be trustworthy. Similarly if a manager although is good may not consider employees good in that sense. Thus the projection process differs from person to person, place to place and object to object which will ultimately have an impact on the perception process.

Perception Models Perception models relate with the perception objectives and perceptual set-up to achieve the objectives. Broadly speaking, the perception models may not be one of the decision making model, satisfying model, implicit favourite model and initiative model. They have their respective advantages and disadvantages. Decision Making Models There may be different types of decision making models but optimising model, individual decision making model and ethical decision making model are some of the important perception models based on decision making process. Optimising Model Optimising decision making model assumes the rationality, goal and preferences for arriving at final choice of maximising the outcome. Rationality refers to the concept people prefer consistency and value maximising. People are logical and objective oriented. They are goal oriented. Clear goals and steps of optimising help select best alternatives. People are clear about the preference and choice methods. They know about the need for a decision, can identify the decision criteria, assign proper weights and values to the criteria, can develop the alternatives, can evaluate the alternatives and can select the best alternative. The decision makers list the needs which are more thrusting and which are less thrusting. The criteria deciding the steps are weighted and evaluated to find out various alternative solutions of a problem. Firstly alternatives are developed in different forms. Secondly, the alternatives are evaluated as per weighted criteria. Different alternatives are rated and ranks are assigned to them. Alternative having maximum weights is rated best and given first rank. It is considered the best alternative. The decision thus arrived at gives maximum value or optimises the use of resources. Individual Decision Making Model Individuals think before they act in their own manner and method. They follow the simple process of decision making. They consider their decision the best because the decision is taken as per individual outlook. Some individuals prefer satisfying decisions as best; others take maximisation of uses as the best decisions. Still there are persons who do not bother for decision process. They take swift decisions at the behest oftheir personal whims and discretions. Simple decision-making process is used by majority of the people. Neatness, promptness, enthusiasm, attitudes, preferences and education have great influence on individual decision making process. Ethical Decision Making Model: Decision making process involves ethical considerations which are utilitarian, consistency and justice. Utilitarianism refers greatest good for greatest number of people. Goals like productivity, profitability, economy and efficiency are considered under ethical decision making process. Consistency with the existing rules and regulations are important for making ethical decisions. Right decisions are preferred as they do not antagonise any person. Equitable distribution of benefits and costs is basic point ofjustice. Ethics are based

Perception

68

on cultures and social set up. The ethical decisions have moral support and long lasting features. Ethics and culture influence the decision making process at every stage i.e., ascertaining needs for decisions, identify the decision criteria, allocate weight to the criteria, develop the alternatives, evaluate the alternatives and select the best alternatives. The needs and attitudes are developed as per the ethics and culture of the society.

Satisficing Model Satisficing or bounded rationality model is used to arrive at suitable decisions. When people face complex problems, they require atleast that solutions which may satisfy them to a minimum level. Simple and satisfying model is constructed within the limits of rationality. All the problems are analysed, their complexities are understood and solutions are put for conspicuous choices. The difference between optimising and satisficing model is that all alternatives are not evaluated under satisficing model as is done in the former case. Instead only those alternatives are evaluated, which are satisfactory anf'. sufficient. Only good enough alternatives are selected for getting satisfaction. If satisficing attnbutes exist in alternatives, further search of good enough attributes continues till the best alternative is arrived at. Satisficing model considers only a simple and limited model. Only those alternatives are considered which are commonly known and are within the limits ofthe decision makers. Remote and non-feasible alternatives are not attended; only useful and approachable decisions are used for solving the problems. Implicit Favourite Model Like satisficing model, implicit favourite model solves complex problems by simplifying the process. An alternative will be considered and evaluated only when it is identified as favourite which is implicitly known to the decision maker. In this case, the decision maker is neither rational nor objective. He implicitly selects a preferred alternative. The implicit favourite is the right choice. It has been revealed by researches that people prefer implicit favourite decision which mayor may not be optimising alternative. In the implicit favourite model, the problem is firstly identified. Thereafter, implicitly favourite alternatives are developed to find out the solutions. Evaluation criteria to judge each and every alternative as favourite are developed. Using the criteria, the alternatives are reduced to a lower number viz., one or two. If these alternatives do not fulfil the requirements ofthe decisions, new implicit favourite alternatives are developed, evaluated and selected as discussed already. Intuitive Model Implicit favourite model gives birth to intuitive model which believes in one's own decision as favourable. Implicit favourite model requires evaluation of the alternatives. Intuition is considered the best criterion to select an alternative as the best alternative solution of the problem. Intuition is one's own inner feeling or sixth sense. It depends on one's own experience and knowledge. Many decisions taken at unconscious level of mind are very useful. Intuitive and rational decisions are not opposite to each other, but they are complementary to each other. Intuitive decision is quick decision making process although it is not always dependable. Management should evaluate rationally the intuitive decisions. QQQ

Chapter 4

LEARNING 1.

2. 3. 4. 5. 6. 7.

LEARNING DEFINED MODELS OF LEARNING REINFORCEMENT TECHNIQUES OF REINFORCEMENT VALUES ATTITUDES BEHAVIOUR MODIFICATION

Learning has become an important tool of individual behaviour in organisation. It depends upon a person's personality, perception and situation how to learn a particular phenomenon. Learning process and outcomes are motivating factors in an organisation. It is the process by which individuals acquire the knowledge and experience to be applied in future behaviour. Learning process may be intentional and incidental. It encompasses the total learning process from the beginning of life to its end going through reflexive responses to knowing abstract concepts and complex problem solving. Learning process involves motivation, cues, response and reinforcement. Motivation acts as a spur to learning. Motivation decides the degree of involvement for search of knowledge. The learning starts with motivation which is given direction by cues. Motives are stimuli, cues are attention and recognition ofthe stimuli for learning. Cues guide the employees to behave in right direction. If behaviour are shaped through learning process, response is visible. Response accepted for behaviour becomes reinforcement which moulds the behaviour of employees. If an employee is motivated to learn computer; he tries to find out the cues of its uses in employment. Getting favourable cues, he responds to learning. With constant reinforcement of computer operation he acquires the changed behaviour of computer handling.

Learning Defined Learning has been defined by several authors in different ways. All the them have accepted that learning shapes human behaviour. Employees may be learning knowingly or unknowingly in the organisation. Tim R. V. Davis and Fred Luthas have defined learning as cognitive and modelling process for acquiring knowledge and experience. They have analysed different theories of learning for explaining learning process. S.P. Robbins has stressed upon learning as a

65

Learning

"relatively permanent change in behaviour that occurs as a result of experience."1 He has opined on experience only although an employee might be changing his behaviour as a result of social process. Learning is a process of observation, action, reaction and response to some stimuli. Learning is a process of change in behaviour. So, learning is a permanent change in behaviour as a result of cognitive process. Temporary change in behaviour is not learning because it is purely reflexive. Change in behaviour is the necessary outcome of learning. If it is purely theoretical or attitudinal; it would not be learning. Cognitive change process in the mind of employee resulting in behaviour is learning. "Learning is the process by which an activity originates or is changed through reacting to an encountered situation provided that the characteristics of the change in activity cannot be explained on the basis of native response tendencies, maturation or temporary states of the organism."2 This definition includes almost all the attributes of learning. It reveals that learning is the inferred process which influences behaviour. The learning is original activity for the employee. He gets new things or may change his process as a result of observat.wn and cognitive process. The learning can take place only when employees reacts to the stimuli, evaluates and accepts the stimuli for changing his behaviour. Learning must be deliberately accepted. It does not include maturity, temporary change in behaviour and natural process of behaviour. Behaviour is learned through cognitive process of behaviour. It is not spontaneous and natural process. A child knowing language of his mother is not learning because it is natural process. Children learning good habits and sports are on account of environment which is a stimulus oflearning. The learning process starts with motives and concludes with cues, responses and reinforcement until the learner acquires the required changes in behaviour permanently. Learning driving a car is a good example oflearning process.

f---....,

Recognition

I------l

Habit Fig. 4.1 Learning Process

Learning process is a mental and habit formation process. Attention is paid to certain stimuli used for learning which are recognised and translated into reinforcement and behaviour. If the learner gets reward ofthe improved behaviour, he forms it into behaviour. Proper habit motivates the employee who makes an effort in the right direction. The effort it gets satisfaction and becomes stimulus for further learning. The employee further pays attention, recognises and translates to strengthen the habits. This process continues and employee learns and gets permanent change in his behaviour which becomes a part of his habit. The habit helps recognition 1. S.P. Robbins: Organisation Behaviour, Prentice Hall of India, 1996, p. 105. 2. Earnest R. Hilgard and Gordon Power: Theories of Learning: Prentice Hall, 1966, p. 2.

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Organisational Behaviour and Corporate Development

of the good behaviour. Habit motivates employee to perform better. It helps him pay proper attention. He learns constantly and gets permanent change in behaviour. Learning improves behaviour. This process continues and employees learns in the process.

Stimuli Stimuli are any objects and language which draw the attention of people. Employees get stimuli from the actions of their superiors. Superiors tell and advise the employees who pay attention to these stimuli. All the stimuli may not be fully attended. Literary works are also stimuli which are attended by educated employees. The stimuli are provided at jobs by pens and scores. University and colleges are also imparting stimuli for learning. Stimuli provides quality performance. Practical training and vocational teaching are forceful stimuli. The stimuli are numerous which are available at work. Social, political, cultural and geographical factors are providing varieties of stimuli for learning. Attention: The degree of attention depends upon the nature of stimuli. All the stimuli are not paid attention to. Technical and interesting stimuli are highly attended. Career oriented stimuli are generally accepted by employees. The personality level of employees influence the desires to learn, motives for need fulfilment and tension reduction. Employees having more value of life pay more attention to the stimuli for acquiring more knowledge and experience. The people's creating attitude are favourable factor for learning and paying more attention to the available stimuli. Recognition: Attention paid stimuli are recognised as acceptable factor of improvement and new life style. Employees paying attention to the stimuli are recognising the stimuli for learning purposes. The level of recognition depends upon the level of values, preferences, needs and desires ofthe employees, when objectives are unclear; the employees do not pay attention and do not recognise the training as fruitful process of improvement. In learning process. unambiguous activities must be observed for the recognition by the employees as useful factor for their well-being and satisfaction. Translation: The recognised stimuli are evaluated at the mental level to screen out the irrevalent points for accepting a part of the stimulus for changing behaviour. The evaluation and appraisal ofthe recognised stimuli helps reinforcement. An activity will not take place unless it is found useful by the employees. The translation and evaluation process is a crucial point for implementing the stimuli into behaviour through reinforcement. Employees behave properly through attitude change, objectivity, mental and physical development. It is observed in better performance. Reinforcement: Reinforced perception is learning. Perception process includes stimuli, attention, recognition, translation and behaviour. Perception leads to learning but perception itself is not learning unless it is reinforced. The repeated action is reinforcement. Reinforcement may be positive, negative, punishment and extinction. The learner prefer as per their perception level. Generally positive reinforcement is more effective for making permanent change in behaviour. Behaviour: Learning changes behaviour through reinforcement of perceived knowledge. It makes permanent change in behaviour. Temporary change in behaviour is not learning. Behaviour leads to reward. Position behaviour gives reward to employees. Reward: The employees, expect reward of the learning. If the translated behaviour provides reward, it is accepted otherwise it is not accepted. Employees develop the behaviour into habits. Reward may be monetary or non-monetary. Non-monetary reward includes job satisfaction,

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status recognition and task achievement, Professional satisfaction is attached with the behaviour which has become much influencing form of reward. The level of employees decides the level and form of reward. The reward reinforcement makes employee learn more than the positively reinforcement behaviour. Habits: Permanent changp in behaviour become habit which helps continuous improvement in behaviour and performancp. Employees develop the habits of self-appraisal and development. It helps creative personality and confidence in employees who are encouraged to behave properly again and again. Right behaviour i·s reinforced repeatedly. Habit helps development of capability and capacity of employees. Habit translates the theoretical knowledge into practice. Skill development requires habitual performances. Motives: Motives depend on the level of satisfaction. Employees getting more satisfaction through learning develop high motives. Less satisfied learners have low motives. Learning is complete only when motives are fully realised and translated into efforts. Efforts: Habits help good efforts and performance which are continuous process. Efforts are automatic outcome of good habits which are acquired through learning process. Selfdevelopment is possible through self efforts. Employees willing to develop themselves are selfmotivated and effort oriented. Efforts become stimuli for learning after development of the standard of the employees. Self-learning has been observed when employees have developed good habits and right motives. Learning process itself provides all these opportunities. Table 4.2 Biological Presentation of Learning Process

-'~+---1~-----1 Recognition

Ji--t--JL-+-____,I Translation and Retention ~----_I

Reinforcement

Habit

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Organisational Behaviour and Corporate Development

Learning process is totally associated with mental process and heart's inspiration and action. Stimuli reach only at the unconscious mind. Ifit pays attention to stimuli; it goes to the inner-level of mind at subconscious level. Attention is paid by the subconscious mind which analyses the stimuli and screens out irrelevant stimuli from employee's angle. The relevant stimuli are attented but a smaller portion of the stimuli attented are recognised by clear mind. The clarity level accepts the stimuli. Recognition of stimuli is done by clear mind only. The stimuli recognised go to further inner part ofthe mind only when clear mind has received them and the feeling cell of mind evaluates their utilities. Felt mind has capacity to evaluate and appraise the recognised stimuli. The evaluated stimuli iffound correct are stored at the level offeeling cell of the mind. The stored stimuli or retention works for mobilising the function through reinforcement. Repeat and recall are mobilising factors for action. Similarly, tense mind gets reinforcement; it compels and forces the heart to activate the body for action and behaviour. Intensity at mentallevel.activates heart to function. The level, quality and direction of intensity give the behavioural function a real shape. Behaviour is the outcome of intensified stimuli and heart's activitisation. Behaviour producing reward helps the mental process to think and rethink again and again at all the five levels of the mind. The reward itself becomes stimuli which is attented, recognised, translated and reinforced respectively by unconscious, subconscious, clear, felt and intense mind. It reaches to heart level and consequently this process develops a habit. Permanent change in behaviour converges in the form of habit. Employees learn to behave properly. The process will be more effective if each and every process is given due importance and placed at the respective level.

MODEL OF LEARNING Theories oflearning have been developed as models oflearning which explain the learning process by which employees acquire a pattern of behaviour, inborn ability and aptitude to learn new skills and the degree to which the learner participates in the process are considered under models of learning. Some models believe that individuals cannot learn independently. They require help of some experts and personal involvement in the learning process. Other theories believe that employees can learn by observations. The drives and motives are helpful for learning process. No one can learn unless they are willing to learn. Employers have to provide adequate opportunities and incentives to employees so that they can get drives for learning purpose. It is also believed by some theorists that learning is stimulus-response process. The stimuli are essential for learning purpose. The stimuli provide understanding and insights in the employees. Learning process helps further learning. Previous learning helps further learning. For example, learning oflanguage and mathematics helps learning of higher education. Learning is a constant process to provide employee's reinforcement to avoid forgetfulness and advise to learned behaviour. The basic purpose of any theory is to explain a phenomenon in a better manner so that the learner can acquire it easily and permanently. A perfect theory explains how, when, why and other aspects oflearning. Although there is no perfect and universal model oflearning, theorists have devised models of learning under classical, operant and social. Classical Model of Learning Classical model oflearning developed with the experience of material process accompanied with learning stimuli. It was said that Pavlov designed this process. In Indian mythology, some examples are observed wjlen the learner took the assistance of natural phenomena to make pupil learn new process of ful'lctions. Ivan Pavlov, a Russian physiologist observed that dog started secreting saliva with the ringing of bell as the ringing of bell was accompanied with showing of

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meat to the dog. It is a natural phenomenon that dog secrets saliva when meat is put before the mouth of a dog. If the natural phenomenon known as unconditioned stimulus is accompanied with artificial phenomenon known as conditioned stimulus; the dog has given conditioned response ultimately as the process was repeated constantly. The unconditioned response i.e., secreting response becomes conditioned response after sometime as the dog learnt that ringing of bell means availability of meat. Unconditioned Stimulus

Unconditioned Response

~ Unconditioned + Conditioned Stimuli

~ Conditioned Stimulus

Unconditioned + Conditioned Response Conditioned Response

Fig. 4.3 Classical Model of Learning

The classical model of learning believes that the unconditioned and conditioned stimuli would be repeated several times to get net result of conditioned stimulus which will be conditionf'o response. In the Pavlov,theory, the dog learns to secrete saliva (conditioned response) at tl1l' ringing of bell (conditioned stimulus) after repeatedly performing the functions of unconditioned stimulus (showing meat) and conditioned stimulus (ringing bell) simultaneously. Later on, the unconditioned response. The employees can be conditioned accordingly. The conditioned stimulus may be changed to get result of second or third conditioned stimulus. Employees can learn the new conditioned stimuli if they are repeatedly given new stimuli along with the old unconditioned stimulus. The monetary incentives are generally accepted as the unconditioned stimuli for motivating employees. If these stimuli are accompanied with non-monetary incentives for some period; the employees learn to work hard with non-monetary incentives. People have natural liking of dance, drama, exhibition etc. which can be used for getting conditioned response from them. Learn while you work in the factory provide conditioned response to the employees. Reinforcement of the unconditioned stimulus and conditioned stimulus is needed to get conditioned response. Conditioned stimulus having reinforcement help learning. Reinforcement makes the conditioned stimuli behave as unconditioned stimuli to get its nutural response. Classical conditioning is passive and creates reflexive behaviour. It is elicited. It is a natural process which may be useful in the primitive stage of emploYl es' knowledge. An advanced employee may not get benefits of classical conditioning which is purely a formation of a stimulusresponse link habit. The repeated pair of conditioned stimulus with unconditioned stimulus would result conditioned response. Learning to drive a car is very much based on stimuli-response (8R) behaviour whereas the driver is immediately alerted is response as he confronts a boy in front of his running car i.e., conditioned stimulus. Initially he starts with unconditioned (natural) stimuli and later on he develops conditioned (artificial) stimuli. In Indian industries, classical conditioning is an important method of learning when employees start with certain natural phenomena along with artificial work style to arrive at new methods of working.

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Operant Model of Learning The operant or instrumental model of learning is a developed form of classical learning i.e. S-R link habit. The employees behave in a particular manner because they would like to get a reward (response). Reward or desired results acquire certain behaviour. The reward creates drives and motives to acquire certain behaviour of employees. B.F. Skinner, a Harvard psychologist propagated operant learning. He argued that behaviour increases and develops to acquire certain benefits. The desired behaviour is the outcome of acquired benefits or reward. The behaviour which is not rewarded is not accepted by employees. The reinforcement of behaviour is contingent upon reward. The employees work hard to get additional benefits. The learning process starts with the reward or response. Corporate functions are improved by learned employees for the sake of customer satisfaction, employee productivity and shareholder wealth. The learning takes place for the said responses. The classical conditioning has stimulus as beginning oflearning whereas the operant learning starts with response which becomes stimulus for learning process as has been explained in the Fig. 4.1 Learning Process. The reward develops habits, motives and efforts for providing them stimuli for learning. The employees pay more attention, recognise properly and translate them into behaviour. It is a clear fact that learning starts with reward and performance-satisfaction. People do not like to learn the process which is not rewarded. Behaviour is improved through learning for reward and benefits. In absence of reward and response, behaviour is not shaped and learning process does not take place or does not continue in future. The environment ofthe factory becomes stimulus for learning. It is reverse of classical learning whereat stimulus provides response. Stimulus - - - - - - - - - + Classical Learning

Response - - - - - - - - - +

------~

Stimulus - - - - - - - - - +

Response Operant Learning Reward (Response)

t----~ '---------'

Translation and Reinforcement

Recognition

Fig. 4.4 Operant Learning

The reward or response itself becomes a source of drives and motivating factors. The drives can be developed by a variety of responses or events. The drives help to develop habit oflearning to get an achievement. The habit is developed or learned through motives which pull up the efforts of employees. Efforts provides satisfaction, because they feel happy while performing a job. Efforts encourages and become stimuli for learning. More attention is paid to job content and context because it has been recognised as a source of getting reward. The translation and reinforcement helps behaviour which assures reward. A particular behaviour is learnt to get a given reward. Reinforcement strengthens the behaviour which is aimed at acquiring the reward which drives habit and motivates efforts for proper performance. Motives lead to behaviour which is satisfying. It is known as Law of Effect: reward strengthens habits through drives. Similarily unrewarded behaviour weakens habits because oflessening drives. It is R-S link behaviour which

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becomes habit if rewarded. Reinforcement have become important factor to shape the stimuli into behaviour. Reinforcement may be positive or negative. Positive reinforcement assures reward whereas negative reinforcement avoids unpleasing conditions. Employees are alerted to avoid unpleasant happening through learning i.e., reinforcement of certain stimuli. Proper operation of machine is needed to avoid accidents or casualties. The negative reinforcement. i.e., avoidance of unpleasant event is useful for learning proper handling of electric appliances and machines. The positive and negative reinforcement change the behaviour which if rewarded become habit. Punishment and extinction are not processes oflearning. They are used to avoid unpleasant behaviour. Modern theorists do not believe in punishment and extinction because they may be averse to learning process. On the contrary reward and response are taken for learning. Larger the reward, the larger will be the reinforcement and stimuli to learn. To change the desired behaviour into habit; reward is inevitable point and conversing factor. Classical learning process emphasises on changing the unconditioned stimuli to conditioned stimuli. If the conditioned stimulus has been acquired through the process of pouring unconditioned stimulus; learning is acquired as it will give conditioned response. Operant learning emphasises on response which stimulates learning by changing the present behaviour into required behaviours. The S-R connection in classical learning is changed to R-S connections in operant learning. The reward or response need nl-t be financial. It may be non-financial and psychological to satisfy the employees. The classical theory believes that employees will fulfil their basic and other needs ifthey work hard or in a learned manner. On the contrary, the operant learning theory emphasises that the required learning and behaviour is adopted for getting basic and other needs. Manager works for getting social recognition. He learns to manage efficiently for recognition of his name and fame. The scientific researches and technological development are related with operant learning.

Social Learning Model Employees learn from their surroundings, seer and peer, parents, teachers and other people, they learn socially by observation and importance of perception process have been recognised under social learning model. The stimuli - attention - retention - reproduction and reinforcement have been accepted as basic components of social learning. Attention

.....- - - i

Reinforcement

Recognition

Reproduction " , - - - f

Fig. 4.5 Social Learning Process

Employees pay attention to several social stimuli which occur to their surroundings. They are not paying attention to all stimuli but pay attention to only those stimuli which are attractive, easy, important and useful. The attended stimuli are recognised and translated by employees. The learning level depends upon how much recognised stimuli are retained in the mind of employees; retention process is helpful for storing the information. The stimuli which are translated as useful and satisfactory must be retained for reproduction and recall purposes. The recall provides reinforcement and behaviour. Ifrewards are provided, the behaviour will become habit. The learning process is completed when employees get changed in behaviour which becomes a habit i.e., permanent change in behaviour.

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Social learning has become more useful process of learning because it goes beyond the processes of classical operant learning by recognising the facts that there are more points and subjects of learning than the antecedent stimuli of classical and contingent consequences of operant learning. Social learning refers to learning process through vicarious; modelling and self-control. Vicarious Process: Social learning includes vicarious process as useful for learning which involves observational learning. Miller and Bollard has propagated vicarious process wherein they believe that learning can take place through imitating process. Social learning includes socialisation process. It refers to learning through social action, reaction and interaction. The language, customs, functions, performances are outcome of social, cultural and political phenomena. Culture and religions are accepted for teaching the new generations about the life style and behavioural pattern in the society. People observe others and acquire a mental picture of the act and its consequences which may be reward and punishment. If the consequences are positive and satisfactory to the social norms, people like to imitate and perform with repetition. If people find that the consequences are negative and full of problems; the imitated acts are rejected: It is not discrete performance having discrete response-consequences. The operant learning is discrete response-stimuli whereas the social learning is continuous response-stimuli connection. Modelling Process: Modelling is effectively applied for shaping behaviours. It is used for improvement of human behaviour. The behaviour leads to performance improvement. It is capable of meeting the technical skills requirements. Favourable environment increases the probability of attention and retention. Role playing, demonstration modelled the target behaviour. The behaviour is acquired as a result of modelled process of existing behaviour. Continuous intermittent factors help develop the behaviour. Modelling procedures have favourable impact on behaviour and habits. Self Control: Learning is a self-development process. People like to develop selfdevelopment. Self analysis, appraisal and improvement help learning and acquire the required behaviour. Reinforcement has a major role in learning process.

REINFORCEMENT Reinforcement is the crucial factor in learning process. This is also known as the method of shaping employees' behaviour. Perception becomes learning only through reinforcement. Perception = Stimuli - Attention - Recognition - Translation - Behaviour Learning Stimuli - Attention - Recognition - Translation - Reinforcement Behaviour -Habit. Reinforcement is repeated use of the translated stimuli to make them a new behaviour. It increases the strength of response and induces repetition ofthe response which is the outcome of the translated and evaluated stimuli, when reward is attached with the behaviour it becomes habit. Reinforcement increases the possibility of specific response to occur in future as a result of evaluated stimuli or uses. Learning = Input - Process - Output = Stimuli - Reinforcement - Behaviour Reinforcement is instrument or process oflearning in all the models discussed already. No stimuli can take the shape of behaviour unless reinforcement that is, repetition is done during

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the learning process. A learner of car driving reinforces the theory and practice of driving till the time it becomes a part of total habit of the learner. The behaviour i.e. learning car driving becomes habit because the learner gets reward of the behaviour that is satisfaction of car driving. Reinforcement is repeated exposure of the knowledge for translating them into practice and habit. New behaviour or change in behaviour is the output oflearning which is the outcome of stimuli-input through reinforcement. Classical, operant and social learning models have emphasised on reinforcement. Reinforcement is another term of conditioning. The Stimuli, Response and Social activities are conditioned to arrive at new behaviour or change in behaviours. Behaviourists have propagated conditioning of employees for proper behaviour. Repetition, adherence, stimulus generation or discrimination converting theory into practice are various forms of reinforcement. Habit is formed through repeated rewards attached with behaviour. While conditioning explains how employees learn from cues or stimuli, operant (instrumental) conditioning refers to response or goal directed activities. Social conditioning is concerned with social recognition and acceptability. Employees learn, in this case, through modelling, vicarious (observation) or self-understanding. Reinforcement is cognitive process. The stimuli are translated into habit through affective, and cognitive behaviour process. Reinforcement being cognitive in nature is environmentally based. The law of effect is used for reinforcement for getting the reward. Goal oriented reinforcement is long-lasting and increases the strength of response.

Types of Reinforcement Reinforcement may be positive and negative, extrinsic and intrinsic, primary and secondary, and punishm~nt and extinction. They are used to shape the behaviour of employees. Systematically reinforcement of successive steps to move the employees closer to desired response. They reinforce improvement in their behaviour. Positive and Negative Reinforcement: Positive reinforcement consists of events that assures achievement of specific response or desired behaviour. Getting technical skills assures desired result of reward and changing of behaviour into a permanent habit of technical performance, when response is pleasant as a result of repetitive efforts of employees, reinforcement is called positive. It means, positive reinforcement assures desired consequences and pleasant achievement through strengthening the behaviour or presenting new behaviou"r. Positive reinforcement strengthens behaviour for pleasant performance and reward. It is presentation of attractive results. Negative reinforcement is not giving unpleasant response but it avoids unpleasant response. Negative reinforcement is termination or withdrawal of unpleasant and undesirable result. It helps employees to escape from an aversive or disagreeable conditions. Negative reinforcement is termination of unattractive results. It is not punishment because punishment discourages behaviour and negative reinforcement avoids the unpleasant or unarguable behaviour. Appreciation of an employee who is successful in performing a task if constantly repeated will be positive reinforcement. Repeatedly warning the employees against careless handling of electrical machines would be negative reinforcement as it asserts to avoid accidents. Negative reinforcement strengthens and increase~ a particular type of behaviour as the employees learn how to avoid and prevent accidents while operating an electric machine and so on. The withdrawal or avoidance will result in a specific behaviour. Negative reinforcement avoids undesirable and aversive events. Positive reinforcement assures desirable and favourable results. Negative reinforcement is not punishment because the latter decreases and discourages behaviour while the former increases and strengthens the behaviour to avoid something undesirable. If employees do not bother for the undesirable results and handle the electric

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machine carelessly; he will face punishment by his supervisor or he himself may meet with an accident. In both the cases, behaviour decreases. Negative reinforcement avoids the unpleasant performance and undesirable results. If the employees do not follow the negative reinforcement, they are punished. Employees learn to escape and avoid unpleasant jobs. They may avoid punishment by being alert to avoid the undesirable events. For example, employees are not very active and good performers when supervisor is not present in the factory. If supervisor comes at a particular time, the employees become active and good performers before his entry to the factory. It is negative reinforcement that employees have learnt avoidance of unpleasant reward at the presence of supervisor in case of non-working and being non-active. If employees do not bother the supervisor and do not exercise negative reinforcement i.e., avoiding inaction, they will be punished by supervisor as he has caught them for non-working and laxness. The negative reinforcement simply avoids the unpleasant tasks but it does not assure pleasant performance for which positive reinforcement is essential in the organisation. Extrinsic and Intrinsic Reinforcement: Extrinsic reinforcement is externally used by the employee to learn a particular behaviour. The environment in the factory helps exercise extrinsic reinforcement. He is influenced by the external cues and stimuli. The relationship between supervisor and employees, monetary incentives, favourable work conditions are several examples of external reinforcement. The behaviour and instructions by peC'nl and seers are used for moulding the behaviour. Extrinsic reinforcement is outwardly and others' activities influencing the learning process as reinforcement. Intrinsic reinforcement is internal and self-reinforcement. The employee develops his own understanding of the problems. It is self-reinforcement. Intrinsic reinforcement is self-realisation and improvement of behaviour. The feelings and motives become intrinsically reinforces. Intrinsic reinforcement is considered more forceful process oflearning. Extrinsic reinforcement will not be effective unless intrinsic reinforcement is applied for learning. It is self-appraisal and development. The extrinsic reinforcement is evaluated by the employees and if accepted as useful will be converted into intrinsic reinforcement. Extrinsic and intrinsic reinforcements are used for learning purposes. Intrinsic reinforcements are personal and related to satisfaction, recognition, challenges, growth and responsibilities. Extrinsic reinforcement is ultimately evaluated at the level of intrinsic reinforcement. The success of reinforcement depends upon how much it influences the internal drives of the employees' behaviour. Extrinsic reinforcement for example, monetary incentives would be ineffective ifit is not internally accepted as the drive for learning and improvement in behaviour. Primary and Secondary Reinforcement: Primary reinforcement directly influences the primary motivational drives. It is primary needs of people. The employees are reinforced to learn by adopting primary functions or basic needs. Children are learning language and mathematics through primary reinforcement. For example, they are told that A is for apple, B is for banana because they are used to apple and banana. So the first letter of these fruits will help them understand the letters. The example of fruits are the primary reinforcement. Primary reinforcement is mainly observed in classical learning wherein the artificial reinforcement is accompanied with the natural or ptimary reinforcement to have long lasting impacts of artificial reinforcement. The secondary reinforcement is closely related with the operant learning wherein the rewards are taken as the drives and motives for learning. Secondary reinforcements are artificial and new in their characters. They are first introduced to the learner for its adoption in their learning process. The technical education firstly introduces the machine and its components before telling its operation. Secondary reinforcements have become significant for understanding

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complex human behaviour. This reinforcement is used for motivation and modifying the behaviour. Punishment and Extinction: Punishment is also a method of learning although it is very crude and undesirable. It is generally used to make the employees learn a particular behaviour. However, it is least accepted and badly resulting aspect oflearning. Supervisors use punishment to modify the behaviour of employees. Punishment is not well thought reinforcement. It is reverse of reinforcement for altering behaviour. Punishment is used in illiterate society to learn a behaviour. Indians in work place, generally use punishment for mending behaviour of employees although it is reverse of reinforcement and learning. There is no dearth of examples when employees learn to attend work in time and perform correctly because of fear of punishment. Fear psychosis is helping learning process. It is a complex and cumbersome method oflearning and cannot be used as an effective reinforcement. On the contrary, punishment decreases reinforcement and consequently learning process and results. It weakens behaviour and decreases productivity ultimately. Punishment is appreciation of undesirable process or facing noxious consequences. It is designed to discourage a particular type of behaviour. It means it is causing unpleasant conditions to eliminate an undesirable behaviour. Negative reinforcement is presenting pleasant condition to avoid unpleasant consequences. Punishment is an unpleasant condition to prevent undesirable behaviour. Punishment focuses on unpleasant reinforcement and undesirable behaviour. Punishment does not contribute to learning desired response. On the reverse, it creates undesirable atmosphere and discourages learning for favourable results. Only positive and negative reinforcements help learning and getting favourable output out of its outcome. Extinction is withdrawal of desirable consequences and contingent upon employees' behaviour. The withdrawal of desirable consequences occurs after behaviour has taken place. In this process neither reward nor punishment follows as undesirable behaviour. Ignoring the undesirable behaviour is extinction. For example if an employee mishaves with his colleagues, the supervisor ignores his behaviour. Supervisor does not award or punish this behaviour. Ignoring of this behaviour will extinguish the undesirable behaviour. When learned response is not reinforced, it is extinction. The behaviour fades with the neglect of response. Eliminating any reinforcement maintaining behaviour is called extinction. Table 4.1 Explanation of Reinforcement Types of Learning

Contingent

Consequences

and

desirable

Positive Reinforcement

Favourable and Pleasant

Favourable behaviour

Negative Reinforcement

Favourable and Pleasant Stimuli

Unfavourable and non-desirable Behaviour are avoided

Punishment

Use of Undesirable Stimuli

Avoid unfavourable behaviour

Extinction

Stimuli Avoided (No reinforcement)

Unfavourable behaviour is avoided

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Punishment and extinction are not true learning because there is no effective reinforcement for learning process. Learning is expected through undesirable stimuli and reinforcement or avoiding stimuli and reinforcement to check undesirable behaviour. Positive and negative reinforcement help learning because they provide favourable behaviour and avoid non-favourable behaviour.

TECHNIQUES OF REINFORCEMENT Reinforcement plays a crucial role in human resources management such as learning, training, improvements, development and modification. It increases the strength of desired behaviour. Employees are psychologically therapied through reinforcement for delivering good results. If rewards are attached with the behaviour, employees develop the reinforcement in habits. The pattern and timing of reinforcement are important factors to determine the results of reinforcement. Some type of reinforcement is essential to produce change in behaviour and have effective performance of the organisation. But the speed, place and timing of reinforcement have much bearings on behaviour change.

Schedule of Reinforcement Schedule of reinforcement should be properly decided for getting full results of learning. Schedule of reinforcement may be continuous or intermittent. Intermittent is further classified on interval and ratio basis into fixed and variable only. Continuous Schedule: Continuous schedule incorporates each and very item of learning in a systematic order. It reinforces the accepted stimuli to get desired behaviour. Learners get the stimuli and cues repeatedly till they learn the particular behaviour. Continuous reinforcement assures a specific habit. The machine operators are continuously told to operate the machine. They are first given theoretical perception before putting them for practical conception. They operate the machine in the presence of supervisor who constantly tells the use of each and every part of the machine till they learn how to operate the machine effectively. Intermittent Schedule: Intermittent schedule does not include demonstration of each and every item oflearning just as in the case of continuous schedule. Reinforcement is given after a gap of some time to make the learner repeat himself during the learning process. Intermittent reinforcement provide more opportunities to learner because the learner applies his mind during the gap of not getting instructions. It promotes more resistance to extinction. Desired behaviour is observed easily through reinforcement repeated after a gap and not every time. It is clarified with a simple example of a machine operator in the factory. When a foreman attends continuously the learning of operation to make the learners clear of each and every point by his demonstration. In the continuous reinforcement the learners are dependent on the trainer and may not apply their mind for performance. But in the case of intermittent reinforcement foreman comes after a certain time and tells whatever is not clear to the employees. He is not present continuously. In this case learner applys his mind and trys to clearly learn when trainer is present because the trainer will not be present always to solve all his problems continuously. The trainer comes after a gap of time. How much time interval will be there depends on the number of employees engaged in learning and nature oflearning. Within the time interval employees repeat the reinforcement given by the trainer when he has left after instructions. The gap between first instruction and second instruction make the employees learn the behaviour demonstrated in the first instruction. Intermittent schedule help modification of behaviour and extinction of unfavourable behaviour. The discontinued and

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discrete schedule help understand the work profoundly. Reinforcement after a gap recalls the previous good behaviour and avoids non-desirable behaviour. Behaviour becomes resistant to extinction. Intermittent reinforcement may be based on time interval and fixed ratio. Interval Schedule: Reinforcement is done at uniform time interval. The critical variable is time which may be fixed or variable. Fixed Interval Schedule: Fixed interval schedule has constant variable. The learner attends process at fixed interval of a week, fortnight, month or year as the case may be for the purpose oflearning. Reinforcement is given after a specified period of time. The time interval is fixed for a particular learning process. Since there are different learning processes, the fixed interval varies from one job to another job. In the beginning oflearning short interval is desirable which may extend at later stage of learning. Monetary reinforcement is generally not fixed interval. The time interval is fixed after research to make the interval effective and useful to the learning process. Too long or too short interval may hamper the learning process and consequently the results or response to reinforcement. Variable Interval: The time schedule is not fixed. It is unknown to,the learner when he will get the reinforcement. The supervisor has told the employees to work seriously. If anyone is found inactive at any time, he may be punished. The supervisor reinforces his decision at random or at any time not known to the employees. Reinforcement is given in an irregular or unsystematic manner. Unlike constant and regular time known in fixed interval intermittent reinforcement, time reinforcement is not known or certain in case of variable interval. It makes employees aware of the function and disciple every time to avoid any punishment by random visit of the supervisor. In case offixed interval, the employees are aware oftime of supervisor's visit and so try to be alert only at that time. At other times, they are inactive and careless. Variable interval having uncertainty of reinforcement becomes more effective and useful. Fixed Ratio Schedule: The difference between interval and ratio is that the critical value is time in former case and number of responses in the later case. The reinforcement is initiated after getting a fixed number of responses. For example, reinforcement is fixed after 20 responses. Rewards attached with output is also a case of fixed ratio schedule. The response of wage is linked with the reinforcement of output. Reinforcement is given after a certain number of response. If the reward is paid with the response, employees try to have a larger number of response to get the reward. Bonus linked with productivity is a very good example of fixed ratio reinforcement. Variable Ratio Schedule: Reinforcement varies with the response not in fixed ratio. Reward varies from individual to individual in case of variable ratio schedule. Reinforcement is not fixed with number of stimuli. It varies from individual to individual depending upon their level of personality. The fixed ratio reinforcement may produce different responses because of different level of understanding of employees. Variable reinforcement based on different levels of personality are expected to produce almost similar response. The fixed interval and variable interval as well as fixed ratio and variable ratio provide opportunities for modification and development of behaviour. Any schedule of reinforcement is not foolproof. Each reinforcement has its advantage and disadvantage. So, considering the environment and level of employees, reinforcement scheduled will be selected. Continuous reinforcement is useful to newly appointed employees, unstable and low frequency responses. It provides early satisfaction but fades with the withdrawal of reinforcement. Intermittent reinforcement is effective in stable and high frequency responses. Variable schedule gives more

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results of high performances than the fixed schedules. Variable interval schedule provide opportunities of high responses, more stable and consistent behaviour because of uncertainty involved. Employees tend to show good behaviour sincerely because the element of surprise is involved in variable schedule.

VALUES Employees have certain values of life. They view the life from different angles which are reflected in work performance. Learning helps develop high values towards job and organisation. Values refer to the basic convictions which lead to formation of conduct or social preferences. Values are a combination of different attitudes and attributes of individuals. It provides employees to decide what is right, good, desirable, favourable and so on. One value may be useful for a person which may not be effective for others. The intensity attribute or value system has relative importance. Values are a code of conduct developed by individuals and the social system. Honesty, self-respect, equality, sincerity, obedience, truthfulness etc. are the various examples of values. Values are significant in organisational behaviour. Employees behave properly when they give importance to values. Learning may help provide opportunities for development of values. Employees would be aware of the facts what ought to be done or what ought not to be done which can be understood by giving importance to values. Behaviour is modified only if people are aware of right or wrong things which are deciding components of values. Learning aims to develop values so that employees can perform and behave properly. Values influence the objectives, too, because values shape the attitude and behaviour of employees. For example, obedient employees perform efficiently without creating any problem to the management. Disciplined employees are felt directed towards objectives. Learning helps employees develop high values and favourable behaviour. Sources of Values People develop values from different sources e.g., parents, friends, teachers, society, religion, work place and national characteristics. Parents are the initiators of values. Mother and father always tell what is right or what is wrong. They ask their children to do right things and avoid wrong things. Every family has certain values which are inculcated amongst the children. Brothers and sisters play significant role in developing values. The parental treatment paves the way for value system on which children develop their attitude and behaviour. That is why, it is said that children of a good family will be good and hard workers. Parents tell about society, friends, nations and work values which are incorporated by the children in their attitudes and behaviour. Friends have been influencing each other to resort to a particular behaviour. Friends of good company will develop good values and friends ofterrorists will learn gun-totting. Gamblers and drunkards will establish functions that are for enjoying while pious and god-fearing people will develop favourable values for work performance. Teachers tell several good values to be adopted by the students. Teachers are real instructors of values to the learner. The society has great impact on shaping the inner behaviour of people which provide value formation. Club members tell different values depending upon their respective characters. Values are learnt and developed through religious linking factors. God, universe, fortune and sufferings are attached with value-based applications in behaviour. Performing right behaviour pleases god and vice versa. Pleased god showers fortune and unpleased god gives suffering which is one of

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the several examples of religious and cultural beliefs. Indian society believes that good values are related with godly pleasure which help give satisfaction to people. Work place teaches honesty, responsibility, diligence, endurance and so on. People should be honest and responsible during job performance. Good values have become strong force for good behaviour whereas bad values destroy the social and economic ties. Miseries, sufferings and dissatisfaction are associated with bad values. Good values give satisfaction as they help perform better. National characters have great impact on the values exercised by its people. Warring nations have been developing warring and fighting values as real factors for satisfaction. Peace loving nations develop peaceful values in people. Based on different sources of value formation, values are different. Learning strengthens good values and avoids bad values through positive and negative reinforcements respectively. Social learning process help develop varied values.

Types of Values Values may be of different typ'_s depending upon their source offormation, namely family values, economic values, social values, religious values, national values. Family values, preach the methods of living in family. The behaviour of family members with each other depends on the values developed. For example, relationship between parents and children, brother and sister, brother and in-laws and so on have certain behavioural values. The father will treat his children affectionately. Similarly the children are expected to honour and give regards to their parents. There are different family values which are the bases of satisfaction and happiness in the family. Economic values give importance to money, financial resources and property formation. If an employee is unable to develop himself and his family, he has not given due importance to economic values. In the modern age, people recognise economic values more than other values. Economic well-being is considered a symbol of status and satisfaction. Social values refer to the methods of behaviour in society. Social recognition and social satisfaction are related with social values. If a friend is helping other friends, he has friendly values and selfless performance. Religious values are often observed in India whereas a large section of the people are governed by religious values and acceptances. Religious leaders are shaping lives of reo pIe through preaching of religious values such as faith in god, non-interference in others' affa ...s, do your job dutifully, active non-attachment etc. The aim oflife is told to them which incorporates several relevant values to shape behaviour of people. It is also referred as terminal values. People practice instrumental values for development of family and society. Values at work place are covered under economic values, whereas a set of behaviours accepted in the organisation are known as instrumental values for achieving satisfaction. National values are preached by national leaders. Mahatma Gandhi preached some significant values for the people and our nation. Truth and non-violence were the two important values preached by him. Values are attached with particular period of a generation. Modern generation below age 30 are more free, leisure-minded, flexible, end use values are changing and so on. The learning programme should be designed in such a way so that the employees can develop high values for corporate development and their satisfaction as well. Instrumental values of honesty, responsibility, ambitiousness, courageousness and independence may achieve terminal values of self-respect, security, accomplishment, happiness and self-satisfaction. People of old age are conservative, loyal, quality-oriented whereas young generation is flexible, leisureliking and building up relations. Good values are to be explored, initiated and developed for modification of performance behaviour in an organisation. Learning has great role to play in achieving this objective.

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ATTITUDES Attitude is a bent of mind towards an object or subject. It involves liking or disliking of people, work and objectives. The desire when submissive is attitude which directs people to adopt a certain behaviour. Attitude is developed through learning although family, society and nation have great influence in attitude formation of people. Attitude is a combination of popular belief and interest. For example, the attitude of male worker is that female worker cannot perform hard work. Attitude is learned and expressed apart from being primarily acquired by the people as interaction with members of family and society. Attitude formation is related with cognitive aspects of behaviour. Stimuli are used for developing attitudes of employees , which are attended recognised, evaluated and behaved. So attitude have three different formation stages i.e., cognitive, affective and conative. Cognitive is recognising the stimuli after paying attention to them. Affective is evaluative process and conative attitude is behaviour based process. This selection discusses the nature of attitude, attitude formation and change.

Nature of Attitude Attitude is unexpressed evaluative statements. It is driven by behaviour and recognising a fact. Attitude is expression of inner feelings towards an object or subject. People may have favourable or unfavourable attitude to an organisation. Favourable attitude refers to liking and unfavourable attitude indicates to unliking of the organisation. Attitudes are generally hidden in the mind and heart of people, which may be expressed or inferred in some situations. Behaviour is the real outcome of attitude. Thus, learned behaviour is the outcome oflearned attitude. Predisposition to behave in a way with respect to given object is primarily attitude which can be developed through learning. Employees behave with the object or subject which may be organisation, employees, relationship, monetary compensation, rewards, experience, manager's attitude and behaviour. The first characteristics of attitude is that it is an expression towards some object or subject matter of behaviour . The hidden feelings are always referring to something visible or non-visible. The feeling when comes to the light, become attitude which if expressed takes the form of behaviour. The attitude may take any form of forming stage, namely, cognitive, affective and conative. Cognitive is primary stage of opinion or belief formation. Cognitive attitude is secondary part of stage formation which critically examines the attitude. It may be expressed as sentiment, emotion or feeling. Conative is behaviour aspect. The second characteristic of attitude is that it is learned behaviour through cognitive process. The stimuli provided by parents, friends, teachers, seers and peers are attended, recognised and evaluated to form attitudes based on these stimuli. Peopl~ initiate attitudes of the said people. The right attitudes are solemnised by the source group. They work as reinforcers of attitude. The attitude is classically learned or instrumentally accepted. The Stimuli-Response model helps understand the attitude. It becomes motivational based on reward (Response)Stimuli (R-S) relationship. The predisposed attitudes are modified to get reward and satisfaction. Attitude is learned for getting reward and satisfaction. All the three methods of learning: classical, operant and social are used in formation of attitude. The characteristics of attitude is that it is relatively consistent. It does not mean that they cannot be changed and modified but basically they have firm foundation of liking or disliking of objects. If employees believe that honesty is the best policy, they will adhere to it always in all the situations. Some, small modification may take place as per environment and situation. Behaviour is true reflection or expression of attitude. Behaviour may be polished and modified

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more rapidly than the attitude, that is, the formation of behaviour. Researches have revealed that attitudes are consistent. Employees seek, reconcile divergent attitudes and rationalise the discrepancy. The fourth feature of attitude is that it occurs in a particular situation, event, circumstances and environment. A particular situation may cause employees to behave in a certain fashion. Even a simple and obedient employee can be arrogant if the manager is uncordial and antifunctional. Manager emphasising for self-work, may irritate sincere workers who are devoted to work for the development of organisation. Situation may cause adverse as well as positive attitude towards object. The learning process being an event may change negative attitude to positive attitude. Situations also include time and place which are instrumental in shaping behaviour. Attitudes are influenced by different factors such as people, salary, work place, relationship, object, reward, performance and so on.

Models of Attitude Models of attitude reveal the relationship between attitude and behaviour which may be cognitive, object, behaviour and performance. The foundation models are discussed in the next section. Cognitive Model The cues and stimuli are recognised, evaluated and enacted under cognitive model. The behaviour is the result of cognitive process. The employees develop cognition, effectiveness and behaviour. The attitude based on recognition of stimuli become common beliefs and knowledge. Affective component refers to evaluation of the cues, stimuli or object for forming attitude for behaviour. Emotions, feelings and sentiments are observed under this stage. The employees limit happiness, anger, distress, surprise etc. under emotional attitude. Conative attitude is behaviour wherein the attitude is reflective in behaviour. Many attitude and behaviour relationships follow cognitive model. Attitude results in behaviour through cognitive, affective and conative process. Object Model Object model of attitude is designed to relate behaviour with an object for which achieving attitude is converted into behaviour. The object of being rich is visible in hard work behaviour which is result of hidden attitude of being rich. Attitude is goal oriented. Negative and positive attitudes are observed about the object. Many employees have object of social recognition and distinctive performance which are conceived in their attitudes to direct the work behaviour. Behaviour Model Behaviour model aims to achieve satisfaction at particular behaviour. Attitude is conscious to the behaviour. Achievement is not so much satisfacting as the behaviour is. Employees develop the attitude of measuring behaviours for getting specific result. They have rational attitude which is reflected in their behaviour. Employees are unconscious about behaviour and subjects. Attitude is reflective of subjects. Performance Model: Performance model help to emphasise on action and performance of employees. Attitude-performance model emphasise on work and not result. The result is consequence of work. Good work and performance will result in good result. Better performance provides job satisfaction: Employees having performance model are more contributory to the organisation than the employees having object attitude model i.e., money as reward. Normative attitudes are attached with performance model.

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Attitude Formation Attitude formation is related to attitude learning and behaviour development. Attitude formed through the three methods oflearning. Classical learning, operant learning and cognitive learning theory. Classical Attitude Formation: Some stimuli are accompanied with natural stimuli to form a habit. Unconditioned and conditioned stimuli are simultaneously demonstrated to arrive at conditioned response. After sometime the unconditioned stimuli are withdrawn to establish Stimuli-Response connection. Repetition of conditioned stimuli and response provide an opportunity to form the desirable attitude. Conditioned stimuli through repetition and reinforcement result in favourable attitude. This is known as stimulus generation and attitude formation. It has already been fully described in the sections of learning. Instrument of Operant Attitude Formation: The attitude is developed to achieve certain reward or response. Employees work hard to get more money. The attitude ofhar~ work and sincerity are developed to get some rewards and responses. Similarly managers are fully utilising their time for getting distinctive recognition in the organisation. Ifthe reward are not attached; the conditioned attitude may not take the form of habit. Positive and negative reinforcements help to form attitude. The way of administering of stimuli creates positive or negative attitude. Therefore, organisation has to be very careful in administering the stimuli and response or reward in such a way as to create positive attitude. Once negative attitude is developed, it would be very difficult to change the negative attitude into positive attitude. Cognitive Attitude Formation: Employees have a tendency of information search and their cognitions. If they find their problems solved by certain behaviour; they develop positive attitude. On the contrary they would develop negative attitude. Cognitive attitude is based on observation and self realisation of an object whether satisfying or not satisfying. The more information are available about the object, the more strong attitude is developed. The society and past experience provide an opportunity for cognition of knowledge or beliefs. The direct and indirect experience ofthe employees about the organisation, management, working conditions, pay roll etc. have influenced attitude formation. The family members and friends are observed always which stimulate attitude information. They provide basic values which are a source of attitude. Attitudes are a reflection or expression of general values. People tend to know and understand the persons who come in contact. This cognitive need help attitude formation. Self-image and inner feelings are strengthened to give birth of attitude. Employees have changing behaviour and conflicting attitudes which may produce new attitude. Personality factors and components are greater deciding factors of attitude. Employees having different personality traits have differe :1t attitudes. Attitude Change Change of employees' attitude is required to modify their behaviour. The goal of attitude change are converting negative attitude to positive attitude, fortifying the existing positive attitudes. The attitude change involves changing the employees' basic motives admiring the employees, comparing conflicting attitudes, and changing their beliefs. Changing Motives ofEmployees: Motives are pushing force of attitude. Employees' attitude can be changed if the motives attached to the attitudes are changed and modified. The motives many be utilitarian, ego, defensive, value-expressive and knowledge. Motives are developed for utility purposes. Employees are motivated for high wage and bonus. Motives behind the work is to get maximum monetary and non-monetary achievement. Many employees have motives of

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defending self, ego etc. The attitudes of employees are preserved by such motives. Valueexpression of the object will change the negative attitude into positive attitude. Ifthe importance and role of higher responsible work is made clear to the employees; change of negative attitude becomes easy as well as preserving of the positive attitude. The thirst for knowledge is another significant motive which can be achieved through providing favourable condition to develop and understand the people. There should be enough scope of knowledge exposure to employees for change of motives and consequently change of attitude. Admiring Employees: Employees are motivated to change the negative attitude or modifY the existing attitude if they are admired for hard work, sincere performance and so on. People are always willing to accept their appreciation which may induce them in a particular direction and change of attitude. The wide range of public spirited activities related to the employees help attitude change. Even a slightest favour to employees may change their minds ana negative beliefs. The non-monetary incentives are always helpful for changing attitudes of employees. Comparing Conflicting Attitudes: Conflicting attitudes may help to arrive at a particular decision. The less forceful attitudes are ignored and rejected where the strong and favourable attitudes are given more importance. The conflicting attitudes are resolved to arrive at favourable attitude. Object oriented attitudes are adhered to. The relative importance of each conflicting attitudes ar£! put before the employees to select the best attitude. The attributes and uses of the conflicting attitudes are also evaluated for the purpose. More attributes can be highlighted to emphasise a particular attitude. Changing the Beliefs: Attitude is expression of belief. Employees' beliefs have to be changed through overall assessment of the attitude. The drawbacks of negative beliefs are exposed to them and good qualities of positive beliefs are emphasised for changing the wrong beliefs. Persuasion, dissuasion help change of negative attitude to arrive at correct attitude. Learning process is helpful for changing the wrong beliefs.

Theories of Attitude Formation and Change Many authors have developed models and theories of attitude formation and change. They have emphasised on rational approach rather the dogmatic approaches of attitude formation and change. The important theories are cognitive dissonance theory, attribution theory and manager-employees relationship. Cognitive Dissonance Theory: Cognitive Dissonance Theory believes that dissonance or discomfort occurs when conflicting thought persist. Cognitive dissonance indicates incompatibility recognised. Dissonance is recognised by the employees. It shows many feelings about the prior beliefs or actions. A feeling that tends to resolve by changing the attitude to conform the behaviour. Attitude change is the outcome of behaviour. Employees try to change the behaviour as a result of certain behaviour instead of behaviour is changed as a result of attitude. Dissonance encourages second thought on attitude and behaviour relationship. Dissonance arising from conflict is reduced through evaluation of conflicting thoughts to arrive at consonance and adoption of new beliefs. Employees may re-evaluate the dissonant attitude and reject them. Unpleasant feelings are reduced by rival attitudes. Dissatisfied employees are made satisfied by creating more favourable attitude and conditions. Recognition of discomfort by employees help understand the attitude and behaviour. Employees are always uncomfortable to inconsistency. They try to reduce the dissonance or inconsistency by adopting certain behaviour or change in attitude. The desire to reduce dissonance depends on the severity and importance of the dissonance. On the contrary, they ignore the dissonance and change the previous attitude.

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If the manager is found corrupt and dishonest, employees feel dissatisfied with him. On the reverse, the employees are rewarded by the manager for hard work and sincerity, they will ignore the attitude about the manager. The pressure to reduce dissonance is more important than the dissonance itself. Dissonance pressuring the attitude is accepted and equilibrium is achieved through behaviour change. This is well-known as cognitive dissonance which is a factor of behaviour change. But if the dissonance or discomfort or disequilibrium is not very much disturbing the employees, they would change their attitude. In this case dissonance is more useful than the consonant behaviour. The dissonance's degree of influence on employees' activities to reduce the dissonance either through change in behaviour or through change in attitude. Ifthe dissonance is not disturbing or creating trouble to employees; it is rationalised and justified. High rewards attached to dissonance do not compel feeling of dissatisfaction on account of dissonance. High rewards and satisfaction try to reduce the tension of dissonance; which are minimised by its more satisfying attributes. The propensity of dissonance helps change of behaviour or attitude. High propensity tends to change the behaviour while low propensity tend to change the attitude about the dissonance. Employees ignore low propensity of dissonance. In br'ief highly important, more rewarding, wider choice and high propensity of dissonance pressurise reduction of dissonance.

Attribution Theory Attitude formation and change depends on its attributes. People assign certain attributes to their respective attitude. An employee drinks giving explanation that it activitises him to work and concentrate. So, people assign some benefits and uses of their attributes. Attribute theory describes the people's inclination of assigning some attributes and benefits to their attitude. They assign such attributes to their attitudes based on self-perception, others' attribution, attributions to object and correctness of the attribution. Self Perception: People assign attributes to their attitudes based on self-perception. Individual's judgements and inferences are deciding factors to adhere to their behaviour and attitude. Self-perception may be internal and external. When the employees have inner feelings and conviction, the self-perception is known as inner perception. If the employees decide on their surroundings and environment, the perception is external self-perception. Employees carry the credit of success on their own shoulders, when failure is attributed to manager. The former case is internal and the latter is external attribution. The internal perception is person's self attribution while external perception is person's attribution. Employees favouring internal self perception are approached directly to motivate them giving their own contribution. Employees blaming their failure to others are externally attributed. People internalise their attitude as the most useful and externalise others' attitude as the least useful. Self-perception theory is used to motivate employees in their own manner. Others' Attributions: The employees are following others attitude as accepted and useful. Manager's intelligence and sincerity are adopted by the employees. The attitudes of seers and peers are also accepted as guiding factors of attitude formation and change. Good deeds of others have influence on employees. Therefore, the manager must act in positive and sincere manner to demonstrate positive performance by the employees. Object Attributions: The attributes of objects or things have direct influence on attitude formation and change. The object has been guiding factor for attitude formation through operant learning, Response, reward or objects are taken as guiding factors to influence the employees to learn a particular behaviour through attitude formation and change. Higher bonus and wages attached to the production induce employees to work hard for achieving them.

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Correct Attributes: Attributes attached to attitude are accepted as correct by a large number of persons. The attributes of honesty and sincerity have been accepted as favourable factors of development. No one can openly deny this statement. Employees are expected to imbibe these attributes. They practice such attributes for achieving distinctiveness, consistency and consciousness. Many employees perform honest and good activities because their consciousness does not permit them to perform dishonest and anti-social activities.

Manager-Employees Relationship Theory The role of manager-employees relationship has become very significant for attitude formation and change. Cordial relations help develop employees' attitude. Ifthe relationship is helpful and hygienic, employees will imbibe positive attitude. They work for the development of the organisation. On the contrary, employees do not bother for the development of the organisation if the manager-employee relationship is not good. Employees avoid even simple task under unhealthy relation and perform even hard and complex jobs in cordial relations. Relationship depends on specific attitude and behaviour toward each other. But manager's attitude and behaviour toward employees have significant role in shaping relationship. Consistency in manager's attitude and behaviour make the employees feel about their cordial behaviour. Cultural and religious factors play an important role in shaping the employees relationship. Participation in sorrow and joy of employees has positive impact on creating favourable work relationship. BEHAVIOUR MODIFICATION Learning is essential for hU:qlan resource development. Their technical skills, motivational values and behavioural conduct are developed through learning process. Organisational behaviour is instrumental for increasing productivity and effectiveness. Reflexive behaviour, operant behaviour and social learning behaviour are developed for modification or organisational behaviour. Technically speaking, modification of organisational behaviour involves identification, measurement, analysis, intervention and evaluation behaviours. Identification of Behaviours The first step in modifications of employee's behaviour is to identify the favourable behaviour as distinctive from the unfavourable behaviour. Since a large number of behaviours are occurring every time; it is essential to select the favourable behaviour for strengthening the positive behaviour in the organisation and weed out unfavourable and undesirable behaviours from the lot. The managers or supervisors who are closer to the behaviours of employees can easily find out the behaviour and its characteristics. The unfavourable behaviour critical to organisation should be examined for avoidance or prevention. Behavioural Audit is used for notifying the critical behaviour in the organisation. The critical behaviour may be internal and external. The mixed feelings and bad attitudes are ignored in the beginning to concentrate mainly on the critical behaviour which are directly affecting the performance for example, absenteeism, tardiness, disruption, flirting etc. Those behaviours are firstly recognised, which can be measured and influencing the performance. The unfavourable behaviours are to be avoided while favourable behaviours are to be strengthened. Thus both the behaviours are identified for the purpose. The poor performance or lesser productivity may be accounted to non-skilled labour and use of old technology. Once the impact are measured - they are easily avoided. Similarly high skilled labour and modem technological behaviour enhance production and productivity. So they are motivated. The desirable behaviours are strengthened and accelerated in frequency. The

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manager, therefore must identify the behaviours which are favourable for increasing productivity and which cause destruction and are detrimental to performance and productivity. Measurement of Behaviour: The behaviours which are identified must be measured to find out their impact on behaviour. The acuteness of problems is associated with unfavourable behaviour. Small problems may be due to slightly unfavourable behaviour, but they are looked in perspective because small problems caused by a behaviour may hamper productivity in future. The baseline measure is essential to find out the frequency on the critical behaviour. Baseline measure is operational measure of frequency of problem. Tally sheets are prepared for measuring the impacts of each measurable behaviour. With the tally sheet, baseline impacts and intervention impacts of unfavourable behaviour can be used for knowing the frequency of impacts on productivity and performance. The manager and supervisor who are closely associated with the employees should honestly record the behaviour and its impacts on performance. It is essential that observational data should be recorded as unobstrusively as possible. Unnoticed observation does not influence the employees' behaviour for the time being and their real behaviours are correctly recorded to avoid biases of employees. Many unfavourable behaviours are openly recorded to amend the employees' behaviour and give them realisational values of wrong behaviour. If sincere and diligent employees are told about their mistakes and they are given opportunities, they will certainly like to amend their behaviour. Self-reporting and selfappraisal systems are adopted in many organisations to give employees a sense of responsibility and importance of proper behaviour. Analysis of Behaviour: After identifying and measuring the behaviour, the functional analys~s of behaviour helps to find out the critical point of modification. The behaviours are classified according to their uses and misuses. Their frequencies are noted. Each of them is ranked to reveal the most compelling behaviour for modification. Behaviour analysis is done on the basis of cause-consequences relationship and cognitive process. The cause or antecedent cues have certain behavioural con;;equences. For example, the motivated employees are interested in better performance. Some favourable behaviour controls the undesired results. Therefore, the relationship between behaviour and performance, performance and results should be clearly established. The functional analysis will reveal the impacts of unfavourable behaviour on performance. The behaviour is to be modified as revealed by the analysis. There may be several contingent causes to a consequence. The research is conducted to find out the real cause of the consequence. The contingent consequences are identified after analysis of the impacts and several causes of the behaviour. Intervention: Modification of behaviour is possible through intervention i.e., reinforcement which may be positive or negative reinforcements. Punishment and extinction are also used for modification of behaviour. Intervention is used to strengthen desirable behaviour and weaken the undesirable behaviour. Positive reinforcement assumes that the employees are willing to use favourable behaviour. Useful contingents are used for getting desirable consequences. Negative reinforcement is used to avoid unfavourable and non-desirable behaviour. Positive reinforcement is for getting favourable results. Positive reinforcement is more effective intervention for modifying the behaviour of employees. It has positive control on behaviour unlike the expected negative control by punishment and negative reinforcement. Employees expect positive treatment by the manager and organisation. Positive reinforcement helps selfdevelopment. Positive reinforcement has more effect on long-lasting behaviour of employees. But in reality, punishment is generally used to decelerate undesirable behaviour. Supervisor

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reprimands employees for curtailing undesirable behaviour. Punishment may temporarily suppress the undesirable behaviour but it is not desirable for modifying the behaviour because it creates stress and dissatisfaction. It is not permanent solution of a problem. If punishment becomes inevitable; it should accompany some positive reinforcement. Punishment is to create atmosphere that undesirable behaviour is to be disliked and avoided. Punishment is not to create an atmosphere that it is used for harming employees. Punishment must accompany positive reinforcement otherwise it will create distress and dissatisfaction. Thus, the main solution is positive reinforcement for modifying behaviour. Extinction is used for modification of employees. It does not act as positive or negative as the positive reinforcement and punishment although the negative impacts of punishment are avoided. Extinction is avoidance of noxious or aversive consequences. Extinction decreases the negative consequences because the supervisor does not pay more importance to negative behaviour. It is avoiding the problems. Positive reinforcement should accompany the extinction. Undesirable behaviour of an employee is not punished but is ignored with the expectation that the employee should amend himself. Supervisor makes constructive comments on the undesirable behaviour and does not complain or punishes the employees. The avoidance of negative behaviour provides an opportunity to the erring employees for self-amendment and modification of behaviour. The positive reinforcement is ultimately observed in extinction. The intervention in the existing behaviour for modification is possible only through positive reinforcement either with punishment or extinction. Positive reinforcement either with punishment or extinction. Positive reinforcement in its original from have long-lasting impacts on modification of behaviour. Evaluation of Behaviour: The learning process or modification of behaviour must be evaluated for getting positive impacts. Learning process is used for modification. So the learning, behaviour and results are appraised for getting long-lasting effects. Evaluation will help termination of negative performance and behaviour and accelerate positive behaviour. Systematic evaluation of behaviour help modification and improvement for getting favourable behaviour and performance. It involves reaction, learning, change and improvement of behaviour. Reaction of employees are noted as cues for the direction and mode of modification. Positive reactions help easy and correct behaviour. Negative reaction is viewed as discontentment which is to be explored and remedied. Learning process helps change in behaviour. Modified behaviour will give positive response and performances. Modification of behaviour has emphasised on self management. Employees are motivated to manage their own behaviour. They are given positive reinforcement and favourable atmosphere to pay attention to positive stimuli, internal processes and responses to achieve favourable response. They are given opportunities for self-learning, self-monitoring and adopting favourable behaviour. The incentives to self-learning help self-modification. The responsibility oriented employees are accustomed of self-learning and self-modification.

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Chapter 5

PERSONALITY 1. 2. 3. 4. 5.

MEANING DETERMINANTS DEVELOPMENT MEASUREMENT THEORIES

Personality is an important factor to influence employees' behaviour. Individual traits and attributes tells about his personality. The relationship between supervisor and employees is reflected with their personality. Some employees are known as ambitious, others are silent, anxious, amusing and so on. These qualities are known as personalities. The personal quality is well known as personality. The type of person is decided on their physical, mental attitudes and inner feelings. Personality explains the types of persons, which predict their behaviour. Personality varies from person to person depending upon their physical and psychological attributes. Personality is a significant variable of behaviour. Personality includes a large number of qualities which cannot be changed easily. Personality is composed of several characteristics which are comparatively permanent and influence human behaviour. Different variables and characteristics form different personality that are reflected in behaviour. Personality is influenced by several factors such as family, characteristics, learning, social influences, psychological features etc. Personality has become subject matter of study of psychologists and behavioural scientists. G.W. Allport has defined personality as the dynamic organisation within the individual of those psychological systems that determine his unique adjustments to his environment. The psychological attitudes of personality have been emphasised by several psychologists. The environment, personal traits, action and reactions are given variables of personality. S. P. Robbins has defined personality as the sum total of ways in which an individual reacts and interacts with others.! Personality is derived from the Latin word persona which means speak through. Person may take the form many peoples' face. He may display many personalities, that is he can act as employee, father or mother, friend, teacher and so on. Personality refers therefore the quality of a person, the role played, appearance and behaviour, inner awareness and force. Personality may vary from situation to situation. It can be learnt and developed. It is person1. S. P. Robins: Organisation Behaviour, PHI 1996, p. 90.

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situation interaction. Personality traits are measured in the given situation. Many trait& are unchanged in different situations. It becomes consistent in people's behaviour. Personality reflects how people behave in a situation and with other people. Personality influences the person's behaviour as well as other people who are coming in contact with him. A courteous manager is self satisfied as well as he makes his employees satisfied and contented. Ramification of person is reflected in personality. Personality has many dimensions depending upon the angles such as self-concept personality, influencing personality, pleasing personality and so on. The traits of a person decides his personality. Traits are generally two directional i.e., positive traits and negative traits. Personality is viewed by himself as well as by others. Positive behaviour is reflected by positive personality. Personality is the result and means of cognitive process. Perception helps learning which mould personality to reflect in behaviour. Behaviour 'is the outcome of personality which is influenced by personal quality situations and interaction process. The situation or stimuli so developed are viewed or perceived in a particular way which leads to learning and personality development. It has been summarised in the Figure 5.1. Perception =

Learning

Recognition

Perception

~----I"~I

Reinforcement

t-I----I..~I

1--4"'~

Behaviour

t - - - - -...... ~

Behaviour

Translation

Habits

Personality = Acquired Attributes and Quality through Learning. Fig. 5.1 Personality and Learning.

A particular personality has the specific attention recognition and translation of stimuli, that is, perception depends on personality.

Personality Fig. 5.2 Personality Circle

Personality influences perception process. Perception is not only born quality but is also adopted quality through learning.

Nature of Personality Personality has some basic characteristics which are observed in behaviour of employees. They are distinctive traits of personality . Individual differences, consistent traits and attributes, perceptual process and modification. Personality Traits: Personality is the sum of different traits of a person. Personality is not known by a single trait. It is a composition of physical appearance, emotional attributes, sociability, objectivity, friendliness, thoughtfulness and so on. Each trait is two dimensional i.e., positive and negative. For example, self-centered vis-a-vis social personality, tolerance and intolerance, submissive and offensive and so on. Personality is characterised with major traits

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dimensions such as restraint, emotional stability, objectivity, friendliness, personal relations, masculinity vs. feminity, thoughtfulness, sociability, general activity, ascendance, authoritarian, growth-oriented, mathematical, critical, satisficing and so on. Individual Differences: Personality differs from person to person as each person has his separate attributes. Two persons of the same personality are rarely found because personality traits are not equal in persons. The combination and permutation of different traits have given persons varied personality. Since physical features, inner drives, social and religious dimensions, situations, action and interaction, repulses are innumerable; their combination in personality form is bound to be unlimited. However, many authors have tried to put them in broader personality traits as discussed in the previous section. Consistent Traits: Persons develop consistency in their traits. They do not like to change the developed attributes since childhood. Child is a father of a man. He continues to practice whatever attributes he had acquired since birth. Personality development continues till death. It is an unending and enduring process. The stable nature of personality suggests the predictable behaviour of employees. The traits, situations and interaction help understand the employees' behaviour, which are modified by developing their personalities through learning and development programme. Perceptual process and Modification: The personality traits of a person are consistent and enduring but they can be modified through learning process. The stimuli and mobilisers are used to modify the personality of employees. Situational factors are used to mobilise employees for development. A person's personality is changed due to severe and serious influencing factors. A death in the family makes the offensive manager a changed man and he starts behaving sympathetically with employees. Motivation, history and learning play vital roles in changing and modifying the personality. The perceptual process has great impact on modification of personality. It is possible through classical, instrumental and social conditioning.

DETERMINANTS OF PERSONALITY Personality is the outcome of continuous personal quality development process. The role of personality becomes clear in a particular situation. Man is born with certain physical and mental qualities which are developed in the environment of family, society, education etc. Personality is recognised in a situation. Personality is a result of personal quality interaction ill a particular condition. The determinants of personality can be classified into three main factors: heredity, environment and situation. Heredity Heredity has great influence on biological and mental features. Heredity refers transference of personal characteristics from father and mother to children. Based on the definition of personality that it includes external appearance and behaviour or social stimulus, inner awareness of self as a permanent organising force, the particular pattern or organisation of measurable traits both inner and outer as defined by Floyd L. Ruch in his book "Psychology and Life"; the contribution of heredity in personality development is vividly clear for developing external appearance, behaviour, social stimuli, inner awareness of self, organising traits etc. Heredity is influencing by biological features, brain stimulation and biofeedback. Biological Features: Biological features are developed as per the genetics of father and mother. A person is tall or short, thick or thin, handsome, ugly, self confident or perplex, high blood pressure or low blood pressure are the numerous examples of heredity. The endomorphic,

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mesomorphic and ectomorphic are the results of genetic transferences. Physical and psychological characteristics are transmitted through heredity. Personality traits are built into the parental or forefathers' genetic code. Biological features get transferred from one generation to another generation because of molecular structure ofthe genes located in the chromosomes. Researches have revealed that heredity plays a vital role in shaping biological features. Genetic engineering has revealed that the personality traits such as aggressiveness, sensibility, drug addiction, intelligence, sociability and likelihood are determined by genetic endowment. Brain Stimulation: Heredity has great impact on brain stimulation. Intelligence and emotions are usually transmitted from one generation to another generation. Father and children are generally adopting the same type of brain stimulation. The differences are caused by environment. Electrical Stimulation of Brain (ESB) and Split Brain Psychology (SBP) are the outcome of genetic transmission. They are helpful for moulding employees' behaviour. ESB is used for motivating employees for better performance. Managers are trained to use SBP for mobilising the employees for proper behaviour. Split brain psychology has been supported by Inqian mythology wherein persons of heavy and low brain, broader and smaller forehead, big and small ear-skin, big and small eyes, right and left hemisphere of brain have certain personal characteristics and behaviour. Persons having broader right hemisphere of brain are prone to truth, welfare, beauty, justice and kindness. Similarly persons having broader left hemisphere of brain are cruel, strong, bureaucrats and criminal careers. In Kathopanishad it is stated that persons having right part of body broader and stronger are kind, sympathetic, emotional, spiritual, holistic, artistic, creative and helpful as right is considered the place of moon. Similarly, the left is considered the abode of sun. Consequently persons having broader and stronger left part of body are strong, cruel, logical, practical, dominant, intellectual, active, ordering, dominating and complex. Ancient Indian books have described the functions of Electrical Stimulations of Brain as telepathy, emotion, godly, appealing and justice loving. Biofeedback: Heredity helps development of a specific biofeedback. Biofeedback training (EFT) is also influenced by environment. It causes brain wave patterns, fluctuations in blood pressure, skin temperature and gastric and saliva secretions. Electronic devices are used to measure heart functioning on BFT. Thumb-impression and blood-pressure are outcome of the biofeedback which is influenced by heredity. BFT tells how to control the body process. It is preached by Indian philosophers that meditation and self-concentration develops the BFT. The developed brain has become an asset for human behaviour. Heredity has distinctive impacts on biofeedback training because of genes transmission.

Environment The environment wherein a person interacts have great impact on personality development. Environment components are culture, religious, familial, school and work place. Culture: The accepted norms of social behaviour are known as culture. How people behave with others and what are the driving force of such functions are considered significant components of culture. Culture is based on tradition. Cultural factors shape the personality. Children brought up in a traditional culture imbibe the qualities oftraditional norms, attitudes and values. Modern culture has inspired children to become independent, free-thinkers and selfdeveloping. The ideology of the culture imbibe the qualities oftraditional norms, attitudes and values. Modern culture has inspired children to become independent, free-thinkers and selfdeveloping. The ideology of the culture is imitated by the coming generations. The personality attributes independence, aggression, competition and co-operation are the outcome of cultural

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interaction. Western and oriental culture has distinctive role in shaping the personality of peoples. These are subcultures in a particular type of culture which are also determining factors of personality. Religion: Religion plays a significant role in shaping the personality. Hindus are having different personalities than those of Muslims and Christians. Children in Hindu society learn from very beginning hard work and god-fearing attitudes. They develop frugality and family closeness. Protestants are prone to ethics, family system, friendship and co-operativeness. The western Christians are open, independent, aggressive, industrious and competitive. Muslims are ready to undertake any job and profession and have acquired varying personalities. They have dogmatic, superstitious and have closed personality. Family: Children learn from their parents, sisters and brothers. Family is the first factor of personality development after heredity characteristics endowment. Mother is the first teacher to help personality development. Father motivates and modifies the behaviour. The socioeconomic class of the family has favourable impact on personality. Rich class has different personalities than those of poor class. Caste has differentiated personality features in India. Higher caste people are more active and enterprising than the lower caste. Children develop themselves on the basis of some models. The social interaction help personality modification. Children nurtured under warm, loving and stimulating environment are positive and active persons as compared to the children left to luck by the parents. Neglect of children creates negative and aggressive personalities. Similarly over attention and over-indulgence develop destructive personalities. The role of family can be better understood in the light of parental ~nd siblings' influences. Parental influences: The positive and negative personalities ofthe children are dependent upon their parents' characteristics and mutual behaviour. Children develop negative personalities if the parents (mother and father) have no cordial relations. The fighting couple cannot make their children positive and developing. Maladjusted children have destructive personalities. They have separation trauma with their parents. Children of divorcees, estranged parents and un attentive parents have been found inept, hostile and inefficient. Motherly and fatherly treatment to children make them active and efficient. They develop lifelong pattern of achievement and upward movement. Siblings' influence: Siblings of the family have personality impacts on each other. The first child of the family is found more responsible and active than the last child of the family. The order of birth in the family has been influencing personality development. If first child in the family is a daughter, the subsequent male child will be carefree and comfortable. The male child is more dependent than other siblings. Similarly, the first male child is more serious and efficient. School: The school inmates influence each other on personality development. The learning process helps development of a person. Personality is the result of cognitive and reinforcement process. The content oflearning has great influence on personality. In India, the primary books includes the stories of great men. The behaviour and success of great persons become the reference groups for personality development. The school atmosphere, teachers' behaviour and social well being are influencing factors of development. Work Place: Employees learn at the work place and develop personality consequently. Ambitious and industriousness are observed along with others. Career and professions have great impacts on personality development. Heredity sets the personality within the limits. Work place helps development of persons who adjust themselves to the demand and requirements of environment.

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The personality development is socialisation process. Organisation is a place of socialisation wherein employees learn from each other, get inspiration and try to modifY their personalities. The seers and peers, friends, working inmates, father, mother, brother, sister, relatives, government ideologies, national characters, religious and cultural institutions are the several places of socialisation. The attitudes, values, behaviour, and work style are changed as a result of socialisation because people get training and feed back. Situation: Personality is known as personal quality and interaction in a situation. Therefore, situation plays a vital role in personality development. Situation is an antecedent to behaviour. A person having pleasant personality may develop anger in confronting situation. People placed in bureaucratic situation become apathetic, aggressive and non-personal. Persons are changed as per situation. One cannot be rigid and strong ill this personality. Situation influences one's personality. Interaction in a particular bent ofp(>r~onality. It has been observed that many people are arrogant and indisciplined in a particular situation. Persons having criminal history become powerful and strong administrators. Simple teachers have converted themselves into aggressive and dominant political leaders as a result of countered situations.

DEVELOPMENT OF PERSONALITIES Personality development is natural as well as perceptual process. Children learn from their parents. Since personality includes physiological and psychological components, their development starts since childhood. Heredity characteristics, family and social environment influences personality development. There are different theories of personality development which are discussed later on in this chapter. Personality development is a continuous process whereas personal quality is inter-actively developed in different situations. Although personality traits are basically consistent, modification ofthe traits takes place from situation to situation. Socialisation process helps development of personality. Heredity endowment influences behaviour and personality development through body characteristics, genes transmission, musculature, nervous systems, brain and heart functioning and so on. Intelligence, industriousness, venturesome and other human qualities are generally related to heredity transmission. The tall and handsome body is a result of genes of the family. The family environment helps development of personality. The education and behaviour of parents, sisters and brothers have great impact on personality development of a child. Similarly personality characteristics are developed through self-learning and socialisation process. The values, superstitions and attitudes of parents are observed in the children who can modifY them through social learning. The associated groups i.e., friends, relatives, class inmates, colleagues and other acquainted persons influence personality development. Family and social culture have great impact on personality development. Persons living in a social set up acquire the characteristics of the group. A child of a bureaucrat gets the bureaucratic environment and develops its characteristics. Socialisation inspires complex behaviour in the persons. It stimulates, organises, influences behaviour and consequently personality development. Fred Luthans has emphasised the socialisation process as SOBC i.e., stimuli, organisms behaviour and consequences. People acquire enormously from their social system which helps change the deveJopment of attitudes, adjustment of work habits, mutual trust and confidence and physiological as well as psychological development. Situational factors help development of understanding, directing and controlling.

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PERSONALITY MEASUREMENT The objective of personality study is to take the employees for proper behaviour in an organisation. Different employees have varied characteristics. A particular type of personality is needed for a particular job performance. It is therefore essential to measure personality characteristics for proper placement of employees to suitable job as per his personality features. The measurement of personality is done by dividing the variables into two: First is dependent variable and second is independent variable. The dependent variables are behaviour and performance whereas the independent variables are personality characteristics. With the help of paramative devices, it can be measured how and how much personality characteristics can influence the behaviour and performance. Test of significance reliability and validity of the personality characteristics are possible through use of statistical tools and techniques. Chi-square (X2) test, z test, t test and other analytical tools are used to measure the impact of personality on behaviour, performance and achievement, Likert test, seven pointvariables and other methods are commonly used for measuring the impacts of personality characteristics. Many authors have developed useful techniques of personality measurements. For example, Minnesota Multiphasic Personality Inventory (MMPI) and the California Personality Inventory (CPI) are developed to measure people personality and suitability of a particular personality to the job. Projective tests are used for personality measurement. Thematic Appreciation Test (TAT) and other measures are used for the purpose. Observation of personality also reveals the essential features. One can closely watch the behaviour of employees and the impacts of personality on performance. Group behaviour, role of employees, interpersonal skills, physical and psychological characteristics are important segments to understand the role of personality performance and achievement. Questionnaire personal interview and observations are used for assessing the personality features of the employees. It helps designing the job content and job context for performance satisfaction and achievement situation, satisfied employees perform better and corporate objectives are achieved easily. The purpose of personality measurement is to develop and modify people's personality for better performance and goal achievements. Behaviourists have developed several theories of personality development.

THEORIES OF PERSONALITY Theories of personality have emphasised on the ways and means of personality development, personality is the combination of several traits and situations. No one theory can be isolated as the best one. All the theories include some features of other theories. Whole person's conceptualisation is personality. The personality theories are broadly classified as psychoanalytic theories, type theories, trait theories, self theories and social theories.

Psychoanalytic Theories J:>sychoanalytic theories have emphasised on the psychoanalytic factors for personality development. They are related with psychological features. Some important authors have contributed to psychological theories. Freudian theory, Neo-Freudian theory, Levinson theory and Argyris theories are important theories under psychoanalytic theories.

Freudian Theory Sigmund Freud formulated meaningful personality development stages. He discovered that persons have unconscious needs, drives, motives and desires for personality development. People develop their personality under physical and mental problems under some specific systems. He

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has given three interacting systems. id, ego and super ego. Id is mind's instinctive energy. It is a store of primitive and impulsive drives. It is desire for thirst, hunger, shelter, sex, etc. This storage value of'Id' requires immediate and prompt satisfaction. Id is a pure instinct and reservoir of desire. It is immediate discharge oflibidoi.e., psychic energy and is original in nature. Whatever personality traits are learned in childhood are preserved throughout life because of id factor. It is natural desire of a child which continues to develop as age increases. Id is unconscious drive. It is like animalism which have no rationality. Id is emotional, original and reflexive. The desires and wishes are lying at unconscious state which is known as the Id. It is interesting and satisfying. A child desires to be an engineer when he gets the job of engineering. He is extremely satisfied. On the reverse ifhe does not get the job; he is put in tension which is to be ceased by forming mental image. This tension release is purely theoretical. It is id which consoles the person in non-achievement, although real satisfaction is only at the achievement. Id provides artificial mental satisfaction to reduce tension. It is reflexive and becomes a natural process to satisfy employees. Parents teaching that one should feel happy even in great distress and frustration becomes id for comfort and consolation. Such types offeelings, desires and actions are stored in the mind of people; which is known as Id. It is instinctive and unconscious natural urges and feelings which provide mental force to face problems of life. Ego realises the reality of life. If Id is unreal and theoretical conception, Ego is real and practical experience. The reality oriented part of thinking is ego. It is conscious control. It is internal real monitor to achieve the satisfaction. It believes in real satisfaction unlike the mental satisfaction ofId. The impulsive and unconscious demand ofId are practically satisfied by Ego - the real thinking and practical approach. Ego is rational and logical. It is conscious motivator to achieve the reality oflife. The ego is drive to get real world satisfaction. It keeps psychological balance between reality and theoretical conceptions. Ego is executive personality whereas Id is childish and unreal personality. It guides to balance within the diverse situations. It develops tolerance, awareness, associations and capacity to reduce tension. The perception and learning process is feasible because of ego. It is conflict avoidance through approach. It is translating the energy of id into action. The internal force acquired under id is discharged to get real achievements. Superego refers to highest order of morality. It tells about real satisfaction through mental and physical achievements. It is acceptable state of performance and thinking. It evaluates whether ego is right or wrong. Superego endorses values and standards of society. People are classified good or bad on the basis of superego - the social norms, morality and values. If the Id is mentor, the ego is physical force; the superego is sensor of actions before performance. Id is unconscious, ego is conscious and superego is super conscious ofthe facts and information. Id is pressing force for development, ego is real work and superego is moral evaluation. Id is blind desire. Superego prevents the blind desire. Id may be thirst, hunger, sex, lust and lure which are being controlled by superego. It is a kind of check that restrains or inhibits the impulsive forces of id.

Stages of Personal Development under Freudian Theory Personality develops as age increases. Freud has given five names to these stages, viz. oral, anal, phallic, latent and genital. Freud has given his theory in the context of sex. These stages are well defined in the table inter reference to Freudian sex as well as with modified forms of senses feelings.

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Table 5.1 Freudian Stages of Personality Development Stage No. Name of Stage

Success of Stage

Crisis of the Stage

I.

Oral Stage

The infant first experiences social contact with the outside world through mouth. (i) Weeping, sucking (ii) drinking (iii) Laughing; and (iv) Eating.

Crisis develops if child weans from mother's breast.

II.

Anal Stage

Primary source of pleasure is the process of elimination.

Crisis starts when child starts toilet training.

III.

Phallic Stage

Child discovers himself. He realises all his important organs viz. role of eyes, role of hand, sex organs.

Crisis starts when child experiences sensual and sexual desires.

IV.

Latency Stage

Freud opined that sex instincts lie dormant from the age five to the beginning of adolescence i.e. thirteenth year of a child. The modified version of his theory refers to sensual development.

No significant impact of parents. The social process influences personality development.

V.

Genital stage

Adolescent child starts feelings of all senses seriously. He is particular about sex.

Attachment with parents is reduced.

Freud has said that if the child is not satisfied with the needs of the stage, he tries to satisfy his needs at a later stage. Smoking, gum chewing etc. are observed in those children who have got parental affection at the initial stage. Critics have rightly criticised Freud for his sex-based personality development. Many authors have branded Freud as silly and bizarre as he did not realise the development of other organs, i.e., physical and sense organs. During fourth stage, child is not developing personality according to Freud, but children learn maximum during preadolescence and adolescence stage from parents, class inmates and family friends. The Freudian connotation are correct that many human drives and motives are lying hidden in the mind of people which can be brought to the personality, surface through socialisation process. The role of the id, the ego and the superego have great role in personality development. Freudian stage theory cannot be considered as the first and final. In Indian philosophy, stage development are often quoted at several places. During first oral stage, child learns everything by his mouth and mother. This is the reason that breast-feeding is given maximum importance in Indian culture as it makes the child learn the feelings sentiments, happiness and so on. In absence of adequate oral treatments, child develops deformity and incapacity. He forms the habit nail biting, kissing, overacting, drug-taking at the stage of adulthood. These actions become libido, the energy force. Persons who have got active oral treatment at childhood get manifestations of positive personality development.

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During the second stage, Freud pointed that children develop their organs. It means anal becomes the body zone for sexual satisfaction and personality development. But, it is not correct always. Children develop other organs. Actually at this age i.e. two to three years of age, children start realising the uses of all the organs of body. If the parents are affectionate and educated, they actively participate in the anal age for the physical realisation by the child. Apathy of parents develop anal-retentive personality which are observed in anal aggressive form at later age. Such children at adulthood shows obstinacy, cruelty, destructiveness and hostility. In phallic stage, Freud has emphasised on interaction with others for sex gratification. It is a reflection of interacting personality of children. They prefer development through interaction with situations, self and others, Oedipus Complex is developed at the stage. They develop strongest feelings towards parents and friends. The Oedipus Complex should be resolved at this stage, otherwise people develop abnormal habits at later stage like criminality, frigidity and neurotic patterns are developed if phallic stage is not properly developed and attended by parents and other related persons. Latency period occurs betwe~n seven to thirteen years when the child seeks gratification through external world and knowledge. This is schooling period of children when they learn from their teachers, inmates and social relatives. Genital stages occur during adolescence to adulthood. Children evolve the exertion of mind, sense and body. They try to collect a lot of materials for satisfaction. They learn to work and interact with others. Freudian theory may be used as guidelines to understand human personality but cannot be treated as complete theory of development. The id, the ego and the superego are the driving factors of performances and reflection of personality. These three components are not new but have already been well defined in ancient Indian books. Id is very much related with I feeling. Ego is relations of! and you and superego is based on eternal relations. Sloka 17 in chapter 18 of Bhagavadgita has described the role of mind, senses and intellect for personality development. Sloka 22 in that chapter has stated that person comes to regard the body as an evaluate of matter, clinging to his belief and attachment. He identifies himself with its joys and sorrows. He develops defence mechanism, aggression, repression, rationalisation, inteIjection, perversion and so on. Desire and attachment are driving forces for personality development. Freud has used crude words to denote the stages. He was more sexual than psychologist. Therefore, he used the words, oral, anal, phallic, latency and genital which can be rightly accepted as dependent, compulsive, primitive, undeveloped and mature. Personality development may be related with the sexual desires and gratification but sex and bodily relations are not important factors of personality development. The preconscious, unconscious and conscious levels of mind as narrated by Freud are guidelines for considering the theories of personality development. Their refinement, modification and extension help personality development.

Neo-Freudian Theory . Criticism of Freudian theory led to the development ofNeo-Freudian theory by Erik Erikson who emphasised on social and biological factors rather than sexual adaptations for personality development. Erik Erikson has classified eight psycho-social stages of personality wherein some crises are attached which are resolved for development. The crisis if identified should be immediately attended from being complex and cumulative to retardation. The eight-stages of personality development are infancy, early-childhood, play age, school age, puberty and adolescence, young adulthood, middle adulthood and maturity. During infancy i.e. before one year of age, a child interacts with mouth. He pursues affection, recognition of stimuli, needs awareness, hunger and happiness. It requires proper care and attention by parents and family

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members. The attention and loving affection of parents make the child confident, happy and growing organs. Proper mental and physical growth is associated with love and affection of elders. Absence of care and consistent abuse make the child irritative and detrimental growth. The age between one to three years is known as childhood. Musculature are developed under this stage. A child starts thinking about himself and his parents. He recognises his organs and their uses. He gets enjoyment with other members of family when his basic needs are fulfilled. He does not care much for his comfort as his self-satisfaction. He expects appreciation from others. The appreciation helps his total development of body, mind and heart feelings. The feelings if appreciated become a factor of personality development. In the absence of appreciation and uses of undue behaviour by parents, the child develops deformity. He feels insecure and distrust is developed which !ire detrimental for personality development. During four to six years of a child's age, initiative plays an important role for the development of personality as it is a playful age. If the child is provided playful opportunities he learns himself with his joys and playmates. He imitates his parents and elders. Creative and imaginative capacities are originated at this stage. Similarly, if a child is prone to some adverse qualities such as doubts, inhibition, jealousy, noncooperation which should be channelised in the right direction by the parents. Seven to twelve years of a child's age belong to primary school age when child is getting interaction with unfamiliar friends. He develops the habits of mixing with them. Sense of duty along with playfulness originates at this stage. He originates social touches and new tasks which he likes to be accepted by others. Working habits are developed through competitive spirit. Sense of inferiorities and slavish behaviour are also developed which should be modified by the teacher and parents. Age between thirteen to twenty is very delicate as it reaches to puberty and adolescence. The self-respect and self-recognition are observed during this age. Person feels himself as superior, beautiful, strong and cheerful. Temporal character, ideological commitment, challenging spirit and sexual feelings are developed for paving the base for personality development. Role and duty awareness are also realised, confusion between old values and modern life-styles pervades the person. The sixth stage of young adulthood is commitment to self and loving once. Attitude of care, respect and responsibility develops at this stage. Person likes to develop few friends and avoids mixing with intruders. Personality development takes place as p~r situation and quality interaction. Age between twenty-five to fifty-five are working age. People believe in productivity. Creativity, pride, pleasure, distinction and honour. The early neglect in childhood are compensated at this stage. High hopes, frustrations, egocentric and other drawbacks are also observed during this stage. The eighth stage starting from fifty-six year of age to death is known as maturity whereat people like to guide and direct others; satisfaction and wisdom are visualised. Many people are energetic and helpful depending on situation and success of life while others who are unsuccessful feel fragile, senile, depressed, paranoid and distressing. People interact in the society since childhood. They develop their personality according to social norms, family, friends, personal quality. The qualities of each stage should be developed and crises of the stage should be avoided for full personality development. The crisis should not be considered as detrimental but should be taken as challenges for strong bases for development. Like Erik Erikson, many Indian teachers had been cautious about the adolescence. He asked for precautions against crises of each stages and emplicised on the positive attributes of development because their strength and weaknesses are pertinent for personality development. Adolescent age is a very delicate age and is the maximum learning period. Teenage is the root of personality development. The feelings, sentiments and actions at this stage make the

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man perfect and imperfect as per positive and negative attitudes respectively. The middle class family has been very careful for their children during adolescence and teenage. Parents are careful about the future of their children and try to give maximum of qualitative education during this stage. Ego identity is recognised. Apprenticeship is exercised. Children during adolescence if they are careful and productive they develop positive and constructive personality. The carefulness and cautious approach during adolescence makes the person's personality worth contributory during adulthood and maturity.

Levinson Theory Under psychoanalytic theories, Levinson theory has received due attention recently. Daniel Levinson has advocated orderly behaviour throughout life e.g., career, marriage, parenthood, family responsibilities and retirement. Daniel Levinson has identified stable adult period and adult transitional period. Stable adult period has four stages viz., entering the adult age, settling down, middle adulthood and last adult stage. During twenty to twenty-eight, persons try to enter into life career. They adopt some profession and change themselves from childhood to adulthood. Age between thirty-three to forty is known settling down age. People try to adjust themselves .in the family with the available resources derived from profession andjob for career. Age where they like to use their maximum capacities for career development. The late adulthood is between fifty-five to sixty when people prepare for retirement and old age settlement. The gap between these periods are known as transitional period. Levinson has divideu the transitional period into four parts, viz., age thirty transition, mid-life transition, fifty transition and adult transition. The gap between entering and settling down reveal the gap between twenty-eight to thirty years. Persons adjust themselves from one period to another period. Middle transition period is from age forty to forty five. Similarly age fifty transition period is between fifty to fifty-five and late adult transition is between sixty to sixty-five. During the transitional period, people try to adjust themselves from one period to another period. The behaviour, personality, attitude and value are changed from one period to another stable period of adult age group. In practice, the totality of the behaviour supports the theory ofLevinson. The group behaviour of a particular adult stage vary from one adult to another adult groups; but individually the differences are not glaring and distinctive. The age difference behaviour is clearly observed in the same type of profession. The career planning and job assignment are based on adult stage group. People from age group between twenty-five to forty-five are more active growth oriented. Levinson theory and Erik Erikson theory has been synthesised by Hull who has given four life periods; exploration up to twenty-five, establishment stage from twenty-five to forty-five years of age, maintenance stage from forty-five to sixty-five and delive stage after sixty-five. During exploration, persons search their jobs, shift from one job to another job ill search of better jobs. Students during this period try to explore their own careers. They decide on the basis of their capacities and prevailing situations, considerable developmental processes are taking place during exploration period. During settlement period, people try to settle down to a particular job. They develop the permanent career. It is the stage of more work and increasing work capacity. During maintenance period, people like to maintain and provide support to their family. They are particular about their children's establishment. This is parentalistic stage. Employees become guide and controller of the subordinates. People, if they get support from their seers and peers, acquire more strength to develop the organisation; otherwise, they become stagnant and neutral towards development. The final stage of delive has adverse impact on productivity. People retire from their careers and lead isolated life in many cases. Therefore, it is suggested that persons should try to explore, develop and maintain himself to the possible extent for contribution to

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the society. Personality development is a continuous process which should be adopted throughout life. Chris Argyris Theory of Maturity Chris Argyris has identified human personality through development process which is not necessarily linked with age. People develop personality according to their needs and urges. Even a child may be more cautious of personality development than the adult. He has distinguished maturity from immature personality. He has characterised seven dimensions of immaturity which are directed to maturity through person and situation interactions. As given by him, immaturity characteristics are passivity, dependence, few ways of behaving, shallow interests, short time perspective, subordinate position and lack of self awareness which are converted into respective maturity characteristics of activity, independence, aware behaviour, deep interests, long-time perspective, subordinate position and self-awareness and control. The seven dimension characteristics are correct in total personality. These are purely examples which may not necessarily take the same dimension because of differences of persons' perceptions, self concept, adaptation and development capacities. The safe factor is also significant forgetting maturity. The organisational situation is important factor for personality development. Incongruity between mature personality and formal organisation is vividly clear. Person-organisation situation-interaction help personality development.

TYPES OF THEORIES Type of theories have been developed by different authors in significant manner. It establishes relationship between body, mind and behaviour. Human nature depends on his body structures. It is a scientific theory which believes that a type of person having a specific formal structure behaves differently than other persons having different structures. Short person is considered societal, relaxed and well-behaved. Similarly different types of persons have different types of personality. Such personality development techniques have been explored by Sheldon, Jung Myers-Briggs, Freedman and Holland. Sheldon's Physiognomy Theory William Sheldon has explored unique body-type temperament. The body type has direct impact on behaviour. Relationship between anatomy or physiology of a person and his behaviour are clear and projectable. Sheldon has identified the relationship between physique and behaviour. Has explained this relationship under three body type: Endomorphic body, Mesomophic body and Ectomorphic body.

Endomorphic Body: Endomorphic body is thick and bulky. These persons bodies are unproportionally developed. People are fat and obscene. Such types of persons are comfort seekers and less active. They are less productive but submissive andjubiliant. Although they contribute less in organisational function, they try to maintain healthy atmosphere by their humanistic behaviour. People love to work with them. They tolerate others. They like to be lead. Endomorphy has spherical appearance, highly developed abdominal area and flow movement. Consequently, they are slow thinkers and decision-avoiders. Mesomorphic Body: Mesomorphic body is tough, strong, and athletic. The physic is wellbuilt and pleasant. Other persons like to develop such type of mesomorphy. Such people are work-oriented. They like physical work more than the mental work. They are active, smart and always challenging. They devote much time in work. Being self-assertive and active; they do

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not like personal interaction on useless talk. They unite amicably but work atmosphere is spoiled ifthey are assaulted by anyone on any front. Ectomorphic Body: Ectomorphic body is slim, thin and long. They are physically weak and like to work on table. Mental work is more liked. They are'&elf-satisfiers and do not believe in others. They are shy, absent-minded and isolated. They are-Qfilliant, restrained and critical. Sheldon's body-type theory has been widely recognised irt«ganisational behaviour. It is highly supported theory but it is not permanent. Personality based.On body can be modified and changed through learning and situational interaction.

Jungian Theory Jung was contemporary of Sigmund Freud. He has modified the Freduian theory and develop personality theory on type of body. Jung has classified psychological dimensions into four: (i) sensing, (ii) intuiting, (iii) thinking, (iv) feeling. Employees develop their personalities based on these four dimensions. The combinations and permutations of these dimensions lead to different types of personality. For example, if sensing and intuiting are taken as base of dividing the personality type, there will be of sixteen types. Based on these four types of personality, persons are classified as extrovert or introvert. Extrovert has feeling-sensing and thinking insular personalities. Similarly introvert has thinking, sensing and feeling intuitive type of personalities. Table 5.2 Jungian Personality Type Sensing (S)

Intuiting (N)

Thinking (T)

Rational, logical empirical objectivity. Money-oriented efforts, Risk avoider, short sighted.

Broad viewer, imaginative, wider options, risk-takers, long-sighted.

Feeling (F)

Empirical, personal values, subjectivity, considering other views, Risk takers, Status conscious

Broad-view of personal situation, peopleoriented, subjective, venturesome

Jung believes that relationship is important for personality development. The extrovert and introvert personalities are combined to give several types of personalities. Sociability, interpersonal orientation, shyness, intelligent etc. fall between these two extremes of extrovert and introvert types of personality. Jung believes the past personality as indication of future performance. Many other authors based on Jungian theory have developed personality types. Horney has given compliant, aggressive and detached type of personality.

Myers-Briggs Type Personality Myers and Briggs have developed four types of personalities based on their researches. They are: (i) Extrovert (E) - Introvert (I), (ii) Sensing (S) - Intuitive (N), (iii) Thinking (T) - Feeling (F) and (iv) Perceiving (P) - Judging (J) These types are amplified into sixteen personality types with two dimensions. Some of the combinations will reveal personality types. ESTPi.e., Extrovert, Sensing, Thinking and Perceiving are practical, realistic, ingenious. They are fit for starting new ventures. ESTJs are known as organisers because they are realistic, practical have natural liking to business. INTZs are visionaries and missionaries as they have original thinking, great drives, independence and critical minds. NTs are more intuitive business minded. Myers-Briggs Type Personality (MBTP) is very well recognised in organisational behaviour. It foresees

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personality types based on combinations and permutations of the four - two dimensional type personalities. Other authors have supported his type personality with some modifications and have given. "The Big 5 Model" which includes extraversion, agreeableness, conscientiousness, emotional stability and openers to experience.

Fredman's Type Theory This type personality has been extended by M. Freudian and R.H.Rosenman who have given Type A Personality. It means people oftype A are aggressive, excessively competitive, chronic involvement, incessant struggler, time-conscious, critics and success oriented. They have assigned Type A personality to those who are always moving and eating; feel impatient with encouraging events strive to think and work simultaneously, cannot cope with leisure time and are obsessed with measuring success. Type B personality is exactly opposite of Type A personality. Type B are rarely disturbed with others' achievement. They want smooth performance. They never bother for time, feel no need of display and are carefree. They relax without guilt, play for fun and enjoy the time rather than invest the time in productive channel. Type B persons are confident of success. They are tactful, creative and quality oriented. They are fit persons for management, teaching and other such professions. Type A persons are always under stress, strain and time constraint. They are fast workers and thus try to achieve more quantity than the quality. They rely on past experience and prefer to compete with others. They are ambitious and always hard workers. In case they do not achieve the desired results, they are frustrated and fainted. Type A are technocrats and hard workers. They get favourable environment in western countries.

Holland's Typology of Personality J.L.Holland has identified six personality types and fitness to occupations. The personality types are realistic, investigative, social, conventional, enterprising and artistic. Realistic Personalities: Realistic personalities are shy, genuine persistent and conforming. Persons having such personalities are mechanics, line operators, farmers. Investigative Personalities: Persons having investigative personalities are analytical, original, independent and ambitious. They organising, thinking understanding. They are general~y mathematicians, economics professors and reporters. Social Personalities: Sociability, friendliness, cooperativeness and helpful are the personality characteristics. They like to develop others. They are leaders, social workers, teachers, doctors and professionals. Conventional Personalities: Conventional personalities are conforming, efficient, practical, inflexible and realistics. They prefer rules and regulations. They obey orders and follow the seniors. Such people are accountants, bankers, supervisors and cler.ks. Enterprising Personalities: Persons possessing enterprising personalities are self confide;lJ, ambitious, domineering and active. They like dominating activities and holding power. Such persons are lawyers, agents, managers and specialists. Artistic Personalities: Persons having artistic personalities, imaginative, disorderly, emotional and impractical. They prefer ambiguous and unsystematic activities. Such people are painters, writers, dancers and musicians.

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These are differences in personalities and be fit for separate professions. People having profession and careers suitable to their personalities are satisfied. They contribute more to the profession and career. Persons who resort career not suitable to their personalities face many problems. Management are particular about the personality of employees and job assignments.

TRAIT THEORY Trait theory is quantitative and empirical as contrast to the type theory which is qualitative. Freudian and other theories have emphasised on qualitative aspects of personality. Trait theory refers to quantitative or measurement of psychological characteristics called traits. It pinpoints the individual differences in terms of specific traits. Trait is defined as " ... any distinguishing, relatively enduring way in which one individual differs from another."! It emphasises on enduring attribute of people. Traits of persons are abstracted from their behaviour, which serve as unit of analysis. Traits theory believes in measurement. It has continuous dimensions or scales which are used to rate a person on the scales of emotional stability, intelligence, aggressiveness and other dimensions. For example, excitement, shyness, intelligent, submissing friendly and so on. These characteristics are called traits by which people are known having a specific personality. There are a large number of traits which are combinedly used for deciding personality. G.D. Allport and H.S. Odbert have revealed 17,953 individual traits while R.B. Cattell has mentioned 171 traits. He reduced them to sixteen personality traits which are known as source traits or primary traits. The sixteen personality traits have two dimensions which are noted in Table 5.3. These traits are constant and enduring allowing prediction of human behaviours. Table 5.3 Sixteen Primary Traits Main l. Reserved

2. 3. 4. 5. 6.

7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Less Intelligent Affected by Feelings Submissive Serious Expedient Timid Tough Minded Trusting Practical Forthright Self-assured Conservative Group-dependent Uncontrolled Relaxed

Opposite Outgoing More intelligent Emotionally stable Dominant Happy-go-lucky Conscientious Venturesome Sensitive S).lspicious Imaginative Shrewd Apprehensive Experimenting Self-sufficient Controlled Tense

Source: R.B. Cattell; "Personality Pinned Down." 1. Guilford, J.P.: Personality: McGraw Hill, New York, 1959, p. 6.

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Personality tests and factor analysis techniques have been used under trait theory to measure personality of an individual. Trait is a characteristic by which one individual differs from another in relatively permanent and consistent way. Abstract of manner, way of behaviour is reduced to trait. W.T. Norman has given some trait dimensions to depict descriptive-objective pairs. For example, extrovert persons are talkative, open and adventurous. Agreeableness ·includes good-natured, gentle and cooperativeness. Consciousness is tidy, responsible and perceiving. Emotional stability has calm and poised. There are a large number of trait-dimensions which describe the objectivities of personality. These traits are described as personal dispositions or personal characteristics. Comments: Trait theories are useful for personality development. Personality ratings and factor analysis are important contribution of personality, which is possible under trait theory. While type theory has discrete and discontinuous characteristics, trait theory refers to continuous features. Type theory, for example, indicates sociability. Endomorph body has relaxed and tempered personality. Ectomorph has restrained and self conscious personality. Trait theory includes continuous characteristics. However, trait theory is suffering from several limitations. It is very descriptive. It does not have adequate description of personality. Traits may be derived from behaviour but behaviour is not derived from traits. It is not specified how traits are organised within the personality. It does not tell which trait is more important and which traits are essential for personality development like type theory.

SELF THEORIES Selftheories of personality development have achieved prominent place in recent thinking of personality. These theories are based on humanistic approach. They are self-concept, selfimage and Locus of control theories. Self Concept: Carl R. Rogers and Henry P. are closely related with the approach of self concept Carl R. Rogers has defined the self or self concept as an organised, consistent, conceptual gestalt composed of perceptions of 'I' .or "Me". The relationship of 'I' or "Me" with others and to various aspects oflife has been analysed by Carl R. Rogers. He described I as the personal self or one's belief to oneself. It is a psychological process which helps understand or strive for the self. Indiana mythology has already pointed out, "Realise yourself'. If an individual has to explore his self and soul; he can develop enough strength. 'I' is known as most powerful as it is related with God. The more one realises oneself, the more powerful he will become. Sloka 13, in Chapter II of Bhagavad-Gita has described 'I' or "Self' or "Soul" which has been eternal and immutable. Carl R. Rogers has defined 'Me" as social self. It is the way, an individual appears to others or others appear to him. The "Me" is explained in more explicit term. He has explained that people try to integrate with social situation. The behaviour is the outcome of and the realisation of ,Me' or reflection of inner self. "Me" is the mirror image of what '1' believes others expect from me. This role of expectations is also revealed by Ancient Indian books wherein 'I' and ''You'' have been specifically analysed and pointed to develop one's personality and social personality. The relationship between 'I' and "Me or You" develops one personality. He who performs his duties without attachment gets maximum strength and the persons who are too much attached to the 'I' are unable to perform efficiently as has been described in Sloka 13 in Chapter III ofBhagavadGita. Without engaging in work, one is harming the social development. Wiseman tries to maintain world-order with their unattached actions. If one realises the "I" and "Me" he duly performs all his duties.

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Since people have different levels of understanding and relationship between I and Me; the application of various reinforcement, learning, motivation have diverse impacts on different people. The human nature is purposive, constructive, forward moving, realistic, trustworthy and self satisfying. In normal conditions, people perform their duties as per basic human nature. But, when they have developed some abnormality, they go against the basic nature. The more abnormal a men will be; the more negative functions will be visualised in his action. When man is fully humane, he performs in positive and rational manner. They live in harmony with others. The self concept theory was also explained by Saul W. Gellerman in his book 'Motivation and Productivity.' He pointed out, "The self concept (both "I" and "Me") gives the individual a sense of meaningfulness and consistency." People are unable to perform effectively because they are not accurate to their self and have no consistent belief. The self concept has direct effect on behaviour. Self concept is unique and diverse. People have, therefore, different motivation and performance-satisfaction. The same monetary incentive has no equal impact on the performances. It refers to contingency management depending upon self theories of people.

Self Image Theory Self image theory has been expressed by Calvin S. Hall and Gardner Lindzey whereat they have emphasised on organism and phenomenal field. The organism is locus of all activities organism assumes frame of reference. A person is influenced mostly by his inner self image. If he has developed some factors as satisfying, he will develop his image according to the factor. The external factors, ultimately influence the inner factor mobilise the people to work. The selfactualisation is the point for developing self image. Many people like to demonstrate ideal image. Some prefer to be realistic. The self-image theory incorporates actual self-image, ideal self-image, social self-image, ideal social self-image and expected self-image. The expected self-image is motivating factor for personality development. People require extended self-image by allowing to do things, by making the person feel better, by conferring status or rank, by conferring magical powers. People try to behave differently by extending their self-image. Locus of Control Personality is developed on the basis how a person has his controlling system. Selfimprovement is the outcome oflocus of control which is how one perceives the locus of control in one's life. Some believe charity and kindness are helping development. Other control their activities in a rational and practical forms. The self controlling mechanism shapes the future activities and personalities of people. J .B. Rotter has described locus of control in very systematic form. People who believe that they control their destinies are known as internals and people who believe that destinies are controlled by outside forces are called externals. The internals have internal-control perceptions whereas externals have external 'control perceptions. Researches have revealed that internals are more co-operative and satisfied,and they devote more time on their jobs. On the reverse externals have less job satisfaction and less involvement on their jobs. The externals are generally dissatisfied because they perceive that performances are not complete because of organisational deficiencies. Internals adjust themselves within the given situation. They attribute the cause of failure to themselves. Internals do not blame others for their non-performance whereas externals blame others for the fault. Dissatisfied externals create problems. Dissatisfied internals prefer to leave the jobs rather than creating any problem in the organisation. Internals believe that health is controllable factor, getting satisfaction is internal factor. Internals are willing to undertake responsibilities. They perform their duties in

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effectively. Externals are unwilling to take responsible job. They prefer directive style of management. The locus of control is observed in other forms too: Authoritarianism, risk propensity, dogmatism, Machiavellianism.

Authoritarianism Persons having authoritarian personality believe in status and power differences. They use their high status and power to induce the subordinates. Creating of authoritarian class is locus of control of their mind. Exercising of power for effective organisational functioning as well as for personal satisfaction is observed under authoritarianism. They tend to emerge leaders and follow rules and regulations of the organisation. Situations require autocratic and demanding style. Authoritarians are rigid in their positions, place high moral value and prefer stable and structured work environments. Risk Propensity: People like or dislike risk taking, that is, people have different risk propensity for assuming on avoiding risk. High risk taking people prefer rapid decisions. Risk conscious managers avoid risk by calculating the risk probability. High risk propensity is attached with stock trading where brokers demonstrate effective performance. Low-risk propensity people are more suitable for routine jobs. Dogmatism: Dogmatism is traditional view. People are traditional and take routine decision. They do not require much time and information for taking decisions. They are confident oftheir decisions although they are not based on information and data. Machiavellianism: Machiavellianism is achievement oriented locus of mind. It has been developed in the name of Niccolo Machiavelli who discovered the method of how to gain and manipulate power. People who are Machiavellist prefer logical and action-oriented attitude. They are pragmatic rather than dogmatic and maintain themselves from emotions. High Mach people manipulate power for self, work hard and win more. They are moderated with situational factors and flourish themselves indirectly. They believe less in rules and regulations and allow latitude for improvisation. Low Mach people are emotional and have centred ideas. They are logical and slow workers. SOCIAL THEORIES Social theories refers to acquired personality level through social learning. The personality is developed through direct experience. Human learning is direct, vicarious and self administered. Social learning as discussed in learning chapter is the main factor for personality development. Person-situation-quality development is involved in social theories. Socialisation is an important factor of personality development. Employees view the behaviour of senior managers and supervisors and combine them in their personal quality. The personality development is outcome of observation and perceptions. Learned cognitions through social observation enable results in learned behaviour. The tact, right-wrong attitude, social character and observations of members of society are important factors of social learning. The social environment, social recognition and social approval are used under social learning and personality development. QQQ

Chapter 6

JOB DESIGN AND JOB SATISFACTION 1. 2. 3. 4. 5. 6. 7. 8.

JOB DESIGN JOB ENRICHMENT JOB ENLARGEMENT JOB ROTATION JOB RE-ENGINEERING JOB DESIGN STRATEGIES JOB DESIGN MODELS JOB SATISFACTION

Management had been unconscious with job structuring and designing for a long period when it was realised that the organisational behaviour is also influenced by job design. Employees if dissatisfied with the job content are unable to maintain congenial atmosphere. Similarly employees satisfied with the job-content are devoting more time and energies for the development of organisation. Researches have revealed that appropriately designed jobs have positive impact on employees' satisfaction and corporate performances. Job design and assignment help effective utilisation of human resources. The basic structure ofjob, relationship and co-ordination of people have direct influence on employees' behaviour. The job and its assignments are scientifically designed to meet the company's requirements are scientifically designed to meet the company's requirement while designing a job, company's objectives, external and internal environments, strengths and weaknesses, opportunities and threats; competitive positions, social set-up and other important factors are adequately assessed to arrive at proper design and its restructuring. The required skills, training, authority, responsibilities, supervisory status,job expectation and other related factors are considered for designing ajob. The ultimate objectives of job design is employees' satisfaction and corporate objectives' achievement. The job design is studied under its important steps. Job design, job enrichment, job enlargement, job relation and job reengineering.

JOB DESIGN Job design is basically concerned with the individual's job, work motivation and developing proper behaviour in organisation. Quality of work life (QWL) has taken broader perspective recently and is being widely applied to the management technique. Job design is basically

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associated with QWL. Job design is the outcome of scientific manage~ent as sponsored by Frederick W. Taylor. The Time and Motion study, Fatigue and Leisure study are primary steps of job design which specifies what is to be done, how it is to be done and the exact time allowed for doing it. Scientific management has given birth to job engineering and reengineering. Job design as a total quality work life is concerned with product, process, tool and technique design, plant layout, work measurement, standard operating procedures, human process machine interaction and other activities related to job performances. It is associated with cybernation and sophistication. Cybernation refers to automatic feedback control mechanisms and sophistication is related with sophisticated computerisation. Specialisation is fastly increasing with the invention of new technology. Sophisticated techniques are confined not only to bluecollar production jobs but have started to include white-collar jobs as welL Sophisticated but standardised job functions have been the important considerations of job design. An employee is unable to describe all the components of his job because oftoo much specialisation. The fitting of all the components in a systematic and sequential order has become essential to arrive at total performance ofthe jobs. The high level of specialisation in field, factory and office has created problems of p.onfusion and overlapping. It requires specific designing of each and every component as well as sub-component of the job to put the specialised persons on the parts of the job. It necessitates designing the job scientifically and usefully so that proper control over work performance and results can be exercised by management. The existing job design is redesigned to arrive at specialised cybernation. Job designers have observed certain drawbacks in specialisation and work allocation. They have explored job enlargement, job enrichment and relation for providing job satisfaction and work performance.

Characteristics of Job Design Job design has been concerned with several aspects of an individual's job which may be goal setting, job content, job functions, job relationships, task accomplishment, employee response, job specialisation and related job techniques. Goal Setting Goal setting is the primary functions in job designing. It is essential for job performance and controL Goal setting leads the organisation for effective performance and development. Practical and logical framework of goal helps develop the human resources and organisational behaviour. Management by objectives has taken the present form of management approa~h starting from goal setting. Framing of Goals Framing of goals is a technique which is scientifically used in management. Edwin A. Locks and T.A. Rajan have developed theory of goal setting although they have accredited this pioneer work to Frederick W. Taylor who used goal setting as motivation theory. It is now an accepted fact that goal setting plays a crucial role in human behaviour. Employee's performance and satisfaction depend on how the goals are formulated and how they are to be achieved WIthin a specified time by using minimum of resources. The goal is viewed by employees from value, valence and consequences angles. The individual employees get upon as per the value and value judgements ofthe goaL Employees develop not only abstract thinking but also attach sentiments and feelings to the goal which becomes cognitive determinant of their behaviour in an organisation. Employees prefer to achieve goals for their self satisfaction. Similarly, if goals to be achieved are against their intentions and desires, they get dissatisfaction causing malfunctioning of performances. The management has to consider the emotions, desires and

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FEEDBACK

1

I

I

Goal Setting Framing Goals MBOs

Task Accomplishment

Job Content Task Variety Task Identity Task Significance Task Autonomy Task Complexity

Productivity Effectiveness Economy Efficiency

Job Functions Responsibility Authority Information Flow Work Methods Co-ordination

Employee Responses Satisfaction Turnover Absenteeism

Job Relations Relations with Seers Relations with Peers Team Work Job Techniques Job Enrichment Job Relation Job

I

Feedback Fig. 6.1

merits of the employees while framing the goals of the organisation. In other words, employees who are most suited to a particular goal should be assigned the job. Framing of goal is related with employees' satisfaction and organisational performance. Goal setting theory of Edwin A. Locks has considered values and value judgement, emotions and desires, intentions or goals, responses, actions, performance, consequences, feedback and reinforcement. This theory is based on expectancy theory of motivation. Achieved goals provide satisfaction. It is an effective motivational approach. Researchers have revealed that there are close links between goal setting and performance. Therefore, goals must be specific in terms of time, place, person, units and quality so that employees are specifically assured of correct performances. Goal must be approachable free from cumbersome process. Many time challenging goals are more satisfying then the simple goals. Goals should be framed through the free consent of employees and management. The participative theory becomes effective for goals achievement because employees prefer to perform goals framed with their consent rather than imposed from top and superiors, while preparing goals, the past feedback of the employees in context on the task accomplishment and satisfaction should be given due consideration. Review and assessment of the goals are essential for arriving at final decisions which are used for directing employees to perform better for improving corporate performance besides giving job satisfaction to them.

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Management By Objectives (M.B.O.) Management by objectives has developed as a technique. Peter Drucker for the first time explored the management by objectives for getting improved organisational performance and employee satisfaction. As management principles are widely accepted, the MBO is spreading to cover even non-business organisations to manage their performance as systematic setting of objectives and goals lead to better results. The setting of overall objectives are done by management after considering the strengths, weaknesses, opportunities and threats. The key functional areas are identified first to formulate overall objectives. Key functional areas are those which have maximum impact on the overall performance. The key functional areas' performance are to be evaluated to understand their contribution in the organisation. The objectives are generally used as measuring scales of performances. The inputs required for achieving the objectives are also appraised. Time and money factors are crucial items to have results-oriented performance. The department goals are guiding factors for deciding branch goals. Readjustment of department and sectional objectives is essential to arrive at practical and feasible objectives. The individual supervisor's objectives are developed based on sectional objectives. The employees-supervisor relationship is also discussed while formulating their objectives. The supervisor's objectives usually known as targets are quantifiable, feasible and are time and cost oriented. Their performance are judged on these bases. The corporate objectives are achieved through corporate plans and strategies. Similarly departmental, sectional and individual objectives are achieved through departmental plans, sectional plans and action plans respectively. The performance achieved are compared with the objectives to find out the position, causes and constraints of achievements in the areas of organisational performance and employee's satisfaction. The appraisal system is diagnostic rather than purely evaluative. The suggestions are brought forward through mutual discussion and personal considerations. This is perpetual functions e.g., deciding objectives, plan formations, actions, evaluation, diagnosis and reformulation of objectives, plans, actions and suggestions. Goals setting is the first and final step in job-designing. The jobs are framed, described and allocated as per the goals set by organisation which are achieved by the employees. The deviations between performance and goals are diagnosed and improved goals are set for further improvement of organisational performance and employees' satisfaction. Job Content Job content defines the general nature ofthe task which includes task variety, task identity, task significance, task autonomy and task complexity. Task Variety: Ajob involves a number of varieties for which different skills are used for effective performance. It allows employees to perform different operations using different skills. Tasks variety requires different skills and abilities. High variety tasks are challenging because of larger range of skills involved in them. Repetitive task does not require variety of skills and it becomes monotonous. Variety provides satisfaction; a sense of competence and chance to demonstrate the skills. Task Identity: The second component of job content is task identity. Small part is assigned to employees who are unable to identify the total product developed with their efforts. They get satisfaction when they see the product as their own creation. Since they perform only a part of the total job; they do not get sense of satisfaction. Completion of the job does not bear any responsibility when the whole product or an identifiable part of the product is produced by

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employees; task identity is established. If employees can identify the task or product completed; they get satisfaction. Task identity provides satisfaction because employees feel proud of - "II We have performed the task." For example, if a mason has built a house, he feels proud and satisfied that he has built a very good house which is appreciated by people. Task identification is essential because it gives a feeling of completion and sense of satisfaction. Task identity will be high if employees perceive more satisfaction at the completion of the task. Task Significance: Task significance refers to the impact on others as perceived by the employees. For example, employees producing life saving medicines feel satisfied that they are contributing to the cause of social health. They are proud ofthe job because it has social, human and economic significance. If the task is not perceived as significant; employees do not get satisfaction and do not behave properly. In an organisation if the employees are asked to go from one machine to another machine during the job performance while they can complete the task only on one machine, they find '·his moving task insignificant. They may revolt against the supervisor. If employees find their ~a.:;k significant from social, organisational and other angles, they devote their full abilities and time. Task significance is perceived by employees in many cases; but if employees are not fully aware of the significance of the task, they should be made to realise such significances through demonstration and practical observation. Task Autonomy: Employees feel satisfied ifthey are given certain freedom to perform the task in their own manneY·. If they have discretion and control over task decisions and performances they build a sense of responsibility at performance. Employees are not willing to work beyond the constraints of the organisation, but they want some sort of autonomy of the task wherein they can demonstrate their abilities and importance. Goal setting with the consultation of employees provides task autonomy because here employees get the opportunities to participate in the decisions. Task Complexities: Employees perceive some jobs as very complex which are beyond performance although in practice these jobs are not so difficult. Similarly some tasks are considered very simple. Many employees get satisfaction while completing complex tasks. They feel boredom in performing simple and routine jobs. Facilities of feedback help understand employees' inclination towards job. Feedback provision is essential for improving employees' satisfaction and corporate performances.

Job Functions Job content helps employees perform their jobs. Job context is similarly important to understand the relationship with other tasks. Job functions include job responsibility, authority, information flow, work method and co-ordination. As organisation has some obligations to the employees, the employees have certain obligations and responsibilities to the organisation. An employee becomes a member of the organisation at the moment he enters and joins the organisation. The organisation has certain responsibilities towards employee's upkeep and development because in return it gets their contributions. Both parties invest in each other and expects certain returns in exchange. If employees fail to discharge their responsibilities, the organisation exercises its authority to control them. The authority and responsibilities are interwoven and are discharged with each other's compliances. Information flow, work method and co-ordination help efficient and sufficient performances of jobs. If employees are provided necessary economic quantity, quality, operational and managerial information; they perform their jobs better than those who have scant information.

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Job Relations The nature of relationship with superior and subordinates influences the performances and satisfaction. It strengthens team work. While designing a job, adequate attention is paid onjob relations. It is the interpersonal relationship which shapes the future of the organisation. If the relationship is congenial and helpful, organisation will develop. The corporate performance and employees' satisfaction depend mainly upon the friendship relationship in the organisation, teamwork initiations and type of interacti(;m of employees with other employees and also with the supervisor and higher level managers. Job Techniques Job design includes the job techniques viz., job enrichm-ent, job enlargement, job rotation andjob reengineering which are discussed in detail under separate sections in this chapter. These points help develop quality of work life CQWL). Job scope has two dimensions: breath and depth. Job breath is the number of different tasks while job depth is related with more power, responsibilities and control. Job techniques are developed to benefit employees, organisation and society. Task Accomplishment The job designed are prepared to accomplish the tasks which are mainly related to productivity, effectiveness, economy and efficiencies. The production per unit of input should constantly increase for the development of organisation. Effectiveness is related to the achievement of objectives. Economy and efficiency are respectively concerned with financial and human resources management. The job should be designed in such a way as to achieve these tasks. Employee Responses Employee responses have been discussed under job satisfaction, turnover and absenteeism. Job design has direct impact on these points. Poor design causes low satisfaction, high absenteeism and low turnover. Feedback Feedback provides improvement information by employees to the management and also to employees by the management. It is essential to know how employees are working in the organisation. The feedback helps understand the suitability ofjob content andjob context. Daily and weekly reports are prepared to assess the work process. Job designs is primarily concerned with job content and job context. It decides the tools and techniques, mechanical pacing, repetitiveness, low skill requirements and social interaction. JOB ENRICHMENT Job enrichment is enriching the jobs, adding more qualitative aspects. It is vertical expansion of jobs. The qualitative expansion such as increased responsibilities, more powers and autonomy are special features of job enrichment Individual employee gets an opportunity to modify his performance and increase merit. Management has to provide opportunities which enrich jobs. Employees should feel enrichment of their jobs. Enrichment should become motivator as pointed by Herzberg. Job enrichment i.e., performance pattern is designed to provide opportunities for achievement, advancement, recognition, power, responsibilities and growth potentials. Job enrichment increases the variety of work content and higher level of knowledge , provides more autonomy and responsibility and expands opportunities for personal growth. Job

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enrichment is intensive improvement of job. For example, employee is confined to few jobs wherein he is given more power and authority to perform effectively. Computer-operator is given training of maintaining and repairing, too after job enrichment. He is given authority to replace old parts with new and modified parts. Quality is the main objective of job enrichment. Job enrichment increases employees' satisfaction, quantity production and control mechanism. The purpose of job enrichment is to make employees responsive to the enrichment programme. Since enrichment is viewed differently by different employees; all employees may not be wholly responsive to the programme. The gain theory to the employees will be an effective factor ofjob enrichment. Ifjob enrichment is helping cost reduction and the employees are given benefits of that in the form of profit sharing, the employees are motivated by suchjob enrichment. Benefits of Job Enrichment

•

Employees Self-Actualisation Growth Job Satisfaction

Organisation Better Performance Quality Output Cost Saving

•

Society Quality Product Employment

Fig. 6.2

The enrichment encourages self actualisation, growth and job satisfaction to employees. Intrinsic motivation is increased to arrive at higher performance and more productive human resources. Negative effects, such as absenteeism, less turnover, grievances are reduced by enrichment. Organisation is benefited consequently which is observed in the form of cost saving and quality output. Society is benefited because of cheap and quality products and increased employment opportunities. Job enrichment seeks to add depth to the job by giving more workopportunities, advanced techniques, responsibilities, discretion and power. It satisfies the higher order of needs viz. social and self-actualisation needs. Job enrichment is further discussed from the angles of Herzberg theory. Process of job enrichment and analysis of job enrichment.

Herzberg Theory Herzberg theory of motivation has incorporated job enrichment as a motivating factor out of his two factors viz. hygiene factors and motivators. Hygiene factors creates healthy atmosphere for work. If this is not present; the employees have dissatisfaction. But it does not create a state of satisfaction. Hygiene factors neutralise the state of dissatisfaction and pave the base for motivation with the use of motivators. Employees are motivated with the intrinsic aspects of jobs e.g. autonomy, responsibility, challenges, achievements and so on. These are known as motivators which are the essential features of job enrichment. Responsibility: The feeling of responsibility is developed through making the task independent and significant. If employees get responsibility, they would like to demonstrate their experiences and merits. Task identity, variety and autonomy create responsibility. Decision-Making Power: Employees feel satisfied and motivated when decision-making power is entrusted to them with the increased authority and autonomy, the employees get decision making power which motivates them to perform better. They get opportunities to set production standards, control the operation and human resources and participate with the supervisory task.

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Accountability: Employees get sense of pride and recognition while being entrusted with accountability as it is attach,.d with reward, too. If the performance goal is achieved, the employees feel satisfied and are further motivated if rewarded accordingly. Personal Growth and Development: Autonomy, variety and significance of task help employees grow and develop. The employees are feeling a sense of pride and satisfaction when performing task which is properly identified. The task identity and variety provide an opportunity for the development of the concerned employees. Achievement: Task significance and identity provide a sense of achievement. When employees are performing for the social benefits, then they feel happy over such tasks. They perform maximum without caring for time and money. Feedback: Job enrichment includes feedback facilities. Employees inform frankly and fearlessly about the job and performance. Task feed back help development of employees and better performance of jobs. Process of Job Enrichment Job enrichment involves enriching the planning, organising, executing and evaluating functions ofthe jobs. "An enriched job organises tasks so as to allow the worker to do a complete activity, increases the employee's freedom and independence, increases responsibility and provides feedback so as individual will be able to assess and correct his or her own performance."! Process of job enrichment includes combining tasks, creating natural work units, establishing relationship, expanding jobs vertically and opening feedback channel. Combining Tasks: Ajob having different tasks should be combined in fewer tasks to make it easier for the employees to get satisfaction oftasks variety, identity and significance. Isolated task does not provide satisfaction to employees as it does not give them the sense of satisfaction and performance achievement. Creating Natural Work Units: While combining different tasks, efforts should be made to arrive at natural work units because it helps them to identify the jobs. Employees prefer identifiable tasks because it gives them sense of satisfaction of performing a specified, known and significant unit. Natural work units are enjoyable, meaningful and relevant. Establishing Relationship: Job enrichment process includes relationship establishment between employees and management, between employees and outside organisation, and also between employees and social institutions. If the employees' tasks are socially recognised; they feel proud of performing it. Feedback strengthens the relationship which is the cementing factor of the base of performance and satisfaction. Expanding Job Vertically: The depth and quality expansion of job is known as job enrichment. It increases employee's avenues, performance, recognition and growth, opportunities are hidden under vertical expansion of job. Opening Feedback Channels: Job enrichment opens feedback channels whereat employees can express their views. The management is made aware of uses of their policies and decisions. Similarly employees are constantly informed about the weakness of work and possible solutions thereof. Employees get the chance to know whether their performances are improving. They are motivated through job enrichment to improve their performances. 1. S.P. Robbins: Organisational Behaviour; PHI, 1996, p. 603.

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Comments on Job Enrichment Job enrichment has been benefiting the organisation because of increased specialised function and chances of personal satisfaction. First Chicago Corporation, Texas Instruments and Bell Telephone in USA, Tata Steel in India and Mitshubishi in Japan have accorded successful performance and satisfaction ofjob enrichment. Ford Motors have also shown positive impacts of enrichment. Many disadvantages and limitations are attached to job enrichment. Enriched jobs require training costs, expansion programmes; skilled workers and revamping the job. Workers may resist change and job enrichment. Managers in the name of enrichment may take biased decisions against the benefits of employees. Time and resource problems are linked with job enrichment. Development programmes for job enrichment are lacking. It has been revealed from the researches that job satisfaction comes from job security, pay, workable climate and mutual trust. The responsibilities, job variety, identity and task significance are least affecting factors onjob satisfaction. The basic and safety needs of employees have been found most satisfying factors rather than social recognition because social recognition without adequate financial support become negative motivator. Job enrichment may cause dissatisfaction to employees because they have to learn may things afresh. Many low performers and poor workers have fearful attitudes toward job enrichment. It is an established fact that job enrichment is not a panacea. It is a valuable motivation technique which should be used selectively and cautiously increasing employees' satisfaction. JOB ENLARGEMENT Job enlargement is the horizontal expansion of jobs to include more tasks to the job unlike job enrichment which is vertical expansion of job to reduce the variety of task. Horizontal expansion includes increasing the number and variety of activities performed by an individual employee. For example, if a worker is asked to perform five tasks of a job instead of four tasks. The addition of one more task is job enlargement. Enlargement decreases monotony and expansion leisure. It is required when number of employees is reduced so that the same amount of job can be performed by a lesser number of employees. Enlargement asks the employees to do more work than they were performing before enlargement. Redundant workers are retrenched after job enlargement. Job enlargement is job breath whereas job enrichment is job depth. Jobbreath is the number of different tasks an individual is responsible for completion. Employees are given wider variety of duties. It ranges from very narrow to wide tasks, from small place to wider place to provide movement of employees, and from routine to meaningful work modules. Enlargement provides more meaningful feedback. JOB ROTATION Job rotation is shifting of an employee from one job to another job. Employees feel boredom while performing the same job constantly. It requires shifting the employees from their existing jobs to other jobs. It helps development of wider range of skills, more flexibility, adaptability and filling of the vacancies. Employees usually prefer challenging jobs. When the jobs are not challenging; job rotation becomes essential to retain the interest of the employees on the jobs. Job rotation motivates people from time to time. It diversifies their activities making them more competent. They get knowledge of different types of activities. Job rotation becomes essential for new entrants and trainees. It is interchangeable without any major disruption. Task rotation within ajob makes the employees competent to perform the whole job. Ajob has several tasks.

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.\1' emplolee can perform a few tasks at a time. Ifhe is transferred from one task to other tasks;

;. e learns to perform all the tasks ofthe job. It makes him competent and satisfied that he knows ',he whole of the job although it involves extra cost, time and supervisory function. In spite of its certain drawbacks; job rotation is accepted as motivational and developing process for human _'esource development.

JOB REENGlNEERING After designing a job, activities are performed and some discrepancies are noted because of tseveral reasons which may be wide variations in the reactions to the job. Employees have different satisfaction levels. Specific goals of the organisation may not be achieved. Management has to reveal the causes of variations injob objectives, job designs and job performances. There is need ofreengineering of job to achieve corporate objectives and employees' satisfaction, which are dependent on reengineering of job, individual experience and performance,job satisfaction and their combined functions. Reengineering of job considering job nature, individual features and experiences of employees, job performances and satisfaction. The form of reengineering depends on different levels and nature of job. Achievement and autonomy are needed for the proper performances. Job reengineering varies from person to person, job to job and company to company. For example, high performers and enthusiastic persons are needed for salesmanship. Technically trained and one-place service workers are required for production purposes. Job reengineering is needed to suit different requirements of employees. Different levels of employees are to be satisfied with the job reengineering. Maslow's need hierarchy has been used for satisfying different cadres of employees. Basic and safety needs for class III and lower employees; security and social needs for middle level managers and status and self-actualisation for higher level managers are used for satisfying them separately through reengineering and redesigning the jobs. Edward E. Lawler III has expressed about the reengineering of job. " .... organisation that recognise the importance of treating people differently and placing them in environments and work situations that fit their unique needs, skills and abilities." This statement suggests for redesigning the jobs to fit the differences of individual employees for higher motivation and better performance. Reengineering should satisfy individual and organisational objectives through proper reallocation of jobs and satisficing individual needs. Many employees prefer out ofjob work. They should be assigned jobs according to their interest. Reengineering ofjob enriches Jobs as employees preferring latent jobs are given routine jobs. Low skilled employees are given low skilledjobs. The preference to jobs depends on numerous factors such as nature ofjobs, pay, complexities, working conditions, attitudes of management, nearness to home, job security, physical functions and so on. Nearness to home has been very much an .influencing fact.qr in case of bank employees in India who' prefer to be class III employees as promotion to officers' rank needs transfer to other places. While reengineering the jobs all these factors are thoroughly considered for the purpose. Scientific management for specialised workers, job enrichment for vertical movement andjob enlargement for horizontal expansion have also been considered under job reengineering. Under job reengineering h~gher order of needs are to be fulfilled as many employees prefer higher standard of living. The redesigned jobs should be worthwhile and meaningful to the employees. A job is meaningful when an employee considers that the accomplishment is the result of his personal effort. He is assigned responsibility for the success and failure of the performance. It is a case of job autonomy wherein employees have sort of freedom to perform the jobs for accomplishment demonstration. Higher need oriented people fte preferring job

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autonomy rather than job routineness. Apart from this internal worthiness of job is essential. It is well known as task identity whereat employees should be well aware of all the relevant components of jobs so that the job accomplishment is easily achieved. Too much specialisation and limiting of job designs hamper the performance satisfaction of workers having knowledge of machine operation, maintenance and repair feel satisfied as they are recognised on their jobs. This is task variety to provide satisfaction to the employees. The employees should also perceive that the task is socially and organisationally significant. The task significance makes employees feel satisfied about the worthwhileness of the job. The employees assign meaningfu~ness to the job when the job provide feedback about the accomplishment. Satisfaction will not be obtained unless some form of feedback is provided to the management through self co-worker, supervisor or customers. Thus task identity task variety, task significance, task autonomy, task feedback and job autonomy have significant role injob reengineering. While redesigning the jobs, all these factors are used for the purposes. Michael Hamner has defined reengineering as, "the fundamental rethinking and radical redesign of business processes by application of variety of tools and techniques focusing on related customer oriented core business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed." The concept ofreengineering can be applied to any level of management but Michael Hammer has considered customer oriented designing and reengineering as more important for the survival and growth of the company. Customer services in banks have drawn prominent consideration these days. Many banks in India have started reengineering ofjobs. Reengineering is not restructuring as reengineering aims at redesigning the process and finding out radically different ways of doing the existing process. Restructuring aims at organisation structure. Reengineering is a series of activities whereas restructuring is reframing of organisational structure. Reengineering has improved customer services with the use of computers in different areas of service industry. Reengineering involves new technology and change in process of working. It helps increasing growth opportunities, quick decision, learning of skills, early accomplishment of tasks, effective interaction and inter-communication. The drawbacks of reengineering i.e., retrenchment and layoff, personal discomfort and other mechanical problems can be reduced by proper and adequate training. Motivation based on performances help achieve the objectives of reengineering. The wide changes and internationalisation have necessitated reengineering of jobs as the successful redesigning of the' managerial practices as well as consequential restructuring of organisation add value to the product, services and money. Reengineering dispenses with the traditional forms of work process.

Process of Reengineering Reengineering involves redesigning the process with the objectives of employees' satisfaction and attaining corporate goals which may be customer satisfaction, profit maximisation, growth and image building. When the process is redesigned, new processes are implemented. Process matrices are used for measuring managerial efficiencies as whole while evaluating individual task efficiencies recently, computer is used to measure the effectiveness of reengineering. Many traditional bureaucratic controls are loosened because of their ineffectiveness. The process of reengineering is decided considering several relevant factors influencing productivity and efficiency of employees. They are policy, technology, competition information system, cost benefit and future challenges.

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Policies: The corporate policies are moulded to suit the reengineering requirements. Similarly, reengineering is done as per the existing corporate policies which ensure efficiency and higher growth rate. The government policies are also influencing factors for reengineering. For example, the present economic policies have facilitated reengineering ofjobs. Rationalisation of tax structure, reduction oftariffs, inviting foreign investments, freeing capital issues and policy of new issues have helped industrial development and modernisation of industries. Technology: Technological development has necessitated reengineering of jobs. Only those industries can survive which opt for the latest technology. Innovation and technological advancement have helped manage the industry effectively. The redesigning of job process becomes essential. Production function, marketing extraction, human resource development and information system are being redesigned by modern techniques. Environment consciousness has added a new dimension to the technologically based reengineering. Competition: Competition has compelled industry to reengineer its functions for survival and growth. Unless the resources are effectively utilised, a business unit cannot compete with other units. Total quality management is considered one of the effective tools to beat the competition. Total quality management is based on redesigning the jobs as per present needs and future perspective. Information System: Information system has become a very important subsystem of management system. Price policies, market techniques, production function etc. have to depend on the information available. Adequate and correct information are needed for managing the organisation effectively. The success of reengineering depends on the information volume and value. Inadequate information leads to poor reengineering. Recently, industrial units have developed a wide network of information technology. Internal information technology and satellite communication have helped acquire adequate and latest information. Cost-Benefit: While redesigning the jobs, the cost-benefit analysis is exercised. If the reengineering process involves higher costs than the benefits expected; it would be futile to resort re-engineering. The cost-benefit analysis is done on the risk, uncertainty and discounting factors. Future Challenges: The prospects in future decide the reengineering process. Expectancy theory is applied for the purpose. Success of reengineering depends on the appraisal of future events. Low growth need employees may be motivated for high redesign in the anticipation of development to be placed by the corporate sector

JOB DESIGN STRATEGIES Job design strategies discusses the relationship between job design dimensions and employees' need strength. The interpretation concepts, job characteristics dimensions, critical psychological states, personal and work outcomes and employee growth need, strength and original implementation concept. Implementation concepts includes varied tasks, their combinations, forming natural work units, establishing client relationships, vertical loading and opening feedback channels. The various tasks of organisation are identified and recognised for properly designing the job strategies. Thereafter task combining process is exercised. The highly specialised tasks are segregated and put together. Scientific management approach is exercised by combining higher specialised tasks mto one work module. The combming tasks is based on task variety and task identity. This faCIlitates understanding of job and designing thereof. Combining task is not only a step m design strategIes. lt is the first and foremost step whIch IS adopted before forming natural work umts. Thf' effiCIencv and effectiveness of the job design

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depends on the natural work group formation. Natural group process helps smooth continuity of the job. The marketing, production and human behaviour will smoothly move forward. Task identity and task significance is realised easily which help establishment of client relationship. Employees get new perspective at the establishment of direct relationship with clients if employees get opportunitv to interact directly with the clIents, they feel a sense of satisfaction. Customers ifthey get facilities to meet the employees to express their grievances and satisfaction, the mutual trust is enhanced which help develop quality production. The meaningfulness of job and organisation's performance are developed. This procedure helps job enrichment. The attitude and latitude ofthe employees are expanded along with job enrichment functions. Verlicalloading becomes instrumental for better performance of organisation and job satisfaction to the employees. Many improvement-oriented activities such as quality checking, work setting, schedule deciding, deciding work methods etc. are developed. Employees feel happy with the autonomy varieties, task identity and sigpjficance. Employees get adequate platform to provide feedbacks to management for improvement and development. Feedback is essential for improvement. It helps learning through performance. Self assessment and customers' feedback help understand better about the job and job designs. Redesigning is suggested accordingly. Core Characteristics Dimensions: Core dimensions injob design to those factors which directly affect attainment of individual satisfaction while the employees are at work. They are mainly characterised as task variety, task identity, task significance, task autonomy and feedback. Individual satisfaction differs because of different perceptions of these factors by employees. A supervisor may feel highly contented. It indicates that core dimension characteristics are influenced with the psychological states of individuals for employees satisfaction and growth. Psychological States Perception Learning Personality Experience (i) Meaningfulness (ii) Responsibility Knowledge of work

-

Core Characteristics Work Dimensions Outcomes Task Variety Internal Work Motivation Task Identity Quality and Performance ...----j Task Significance High Satisfaction Task Autonomy • High Turnover ----j Task Feedback Growth Need

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Implementation Concepts Combining Task Forming Natural Work Unit Different Relations Vertical Loading Feedback Channel Fig. 6.3 Job Reengineering and Employees' Satisfaction

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Job characteristics viz., job variety, autonomy, identity, significance and feedback are being supported by high growth need of employees. In other words, individual job dimensions are reengineered or combinedly redp-signed to help high profile to continue in the organisation. They should develop other people and low profile employees. Employees' education, cultural values and past family records are helpful to contribute for job reengineering - highly qualified employees prefer sophisticated jobs and challenging atmosphere. Intrinsic work values, job content factors, achievement orientation, extrinsic values and other related factors help develop redesigning the jobs and adopting them with success. Employees with intrinsic values i.e., job .oriented achievement, skills and challenges are more satisfied than employees with extrinsic values i.e., friendship, affiliation etc. High growth need people react highly to the job characteristics i.e., job identity etc. Growth oriented employees are more satisfied with the job reengineering than the value attached employees. Individual characteristics such as desires, wants, learning, work outcomes, design structure, response etc. have been observed as influencing factors for success ofreengineering. The job characteristics are influenced by work outcome, job expectancy and extrinsic and intrinsic values of employees. Psychological States: The workers' psychology has direct impact on the personal needs and work performance. Their perception, learning, personality, experience and knowledge are helpful for maintaining a stable psychological balance. If the psychological states are at lower level: the employees are satisfied with the lower level of performance. Expectation of performance decides the satisfaction level. Expectation is the determinant of psychological tenets. Similarly higher order psychological needs suggest employees' growth need and strength. Many employees have strong growth needs, have desires, knowledge and abilities. Accountant seeks new design offunctions for self satisfaction and higher performance. Some employees have developed liking of challenging tasks. They prefer to adopt tough and strong jobs, where employees are growth oriented, they prefer new redesign on the contrary if employees are satisfied with their present job, they do not like transfer and change in their work designs. Many Indian employees prefer no change although it may bring them many growth opportunities, employees believing in low profile, are unwilling to develop themselves. The dimensions of job are governed by psychological states of mind. People of high growth need strength are positively motivated with their jobs whereas people not interested in growth may not like job dimensions as satisfiers. Employees not growth oriented react adversely with jobs that are high in core job dimensions viz., tasks variety, task identity, task autonomy and task significance. People's feeling of stretching ability and skills, encourage them to perform job effectively, job enrichment,job favourable atmosphere at people's growth need strength. High growth need employees react favourably and low growth need employees react adversely to job reengineering. However, there is no hard rule of such categorisation. High growth need strength may be negatively influenced at some unfavourable trust, whereas the low growth need employees may be motivated to work hard at some favourable time and place. Therefore, the job reengineering should be taken as accepted by high profile people and negated by low need employees. Work Outcomes: The growth oriented employees perform their job for better performance and satisfaction provided they get internal work motivation and high quality performance. If they find favourable atmosphere, they are discouraged to exercise their psychological state. Similarly low need employees may be encouraged for willing adoption of job reengineering if they are assured high satisfaction and award for higher turnover. Management should adopt flexible attitudes toward employees because rigid attitudf's and influenciable categories may cause problems to the corporation. At a particular place or time employees may react favourably

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although they may have low need profile. High profile employees may work negatively if the) are not treated properly at a point of time and not given due importance at some place: In spitp ofthese categorisation of high need and low need growth along with flexibilities, employees are plain and high desire people who should be given opportunities to understandjob reengineering and adopt them happily. Employees may develop higher growth needs achieving favourable time. They may develop higher growth needs during a number of years. Making employees satisfied help them understand job reengineering experts. They prefer job changes and better redesigning. Once employees are . developed, they prefer growth, changes and reengineering. Meanwhile employees who are not getting chances of development may return back to their original low growth need. Corporate units are responsible for developing favourable atmosphere for getting success in reengineering. Low growth need employees if converted to high growth need employees by the corporate sector, will like to develop the organisation. On the contrary, the high growth need employee who is not getting new challenging position and reengineered job will prefer to shift to some other organisation. The employee's behaviour is dependent on the employee's perception, work outcomes and job characteristics. Attempts are being made for accurate and some reliablE" diagnosis. Job characteristics model has become the core factor of success of job reengineering. Giving significant place to task variety, task identity, task autonomy, task significance and task feedback have helped success of job reengineering.

JOB DESIGN MODELS Various authors have designed useful job design models. Some of them are HackmanOldham Model, Motivating Potential Score Model, Contingency Model, Social Information Processing Model, Socio-Technical Design Model, Employees Development Programme Model

Integrative Model Hackman-Oldham Model Job design strategies as discussed earlier have become the basis of the Hackman-Oldham model. J. Richard Hackman and Greg R. Oldham have developed job characteristics model of work motivation through the design of work. They have revealed that certainjob characteristics and the psychological tasks of employees have an impact on work. Hackman-Oldham model has confined on core job characteristics critical psychological state and personal work outcomes for designing the jobs so that corporate performance may be achieved along with employee's satisfaction. Job design has in its turn objectives of corporate performance and individual employee's satisfaction for which several models have been developed by experts. J. Richard Hackman and Greg R. Oldham have developed one important model as depicted by them in Fig. 6.4. They have explained each of the three factors; Core job characteristics, critical psychological states and personal work outcome and have established work relationships between them to achieve job design objectives. Core Job Characteristics: Core job characteristics are specifically laid down by these two authors: skill variety, task identity, task significance, task autonomy and feedback. Skill variety refers to the degree of variations of work, the employees may perform as per their preferences It provides adequate opportunity to employees to demonstrate their skills, abilities, experienct and intelligence. Thus, the job design based on variety will lead to better performance an":' satisfaction. Jobs which are high in variety are more challenging because of the ranged skilled involved. It gives employees greater sense of competence because they perform the jobs in

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Core Job Characteristics

Task Variety Task Identity Task Significance

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Critical Psychological States

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Personal and Work Outcomes

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Autonomy

Experienced Responsibility of work outcome

Feedback

Knowledge of Result from Work activities

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High Internal Work Motivation

Experienced Meaningfulness ~~ of work

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High Quality Work Performance

High Satisfaction with the work

Low Turnover and absenteeism Moderated by Employee growth need Strength

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Fig. 6.4 Hackman-Oldhman Model

Source: Adopted from the figure given by J. Richard Hackman and Greg R. Oldham.

different ways to their liking. Task identity allows the employees to perform complete piece of work. It involves a complete module of work. An employee can visibly understand and perform the jobs from beginning to end. Employees become monotonous when they perform too many specialised jobs repeatedly. They are unable to identify any product and do not feel any responsibility for the performance ofthe whole work. Task significance refers to the amount of impact that is perceived by others. If a worker is making life saving medicines; he is satisfied with the work as it has social significance. Man is satisfied with his work as it has significance to internal and external people. Task variety, task identity and task significance lead to meaningful satisfaction to employees. Employees given the jobs based on these three basic characteristics are more satisfied rather than the jobs designed without these features. The fourth core characteristics of job design must be job autonomy which gives employees some discretion and control over job related decisions. Employees insist on degree of freedom. It is an additional step of satisfYing people. Employees get opportunities for setting their own goals. Amount of freedom, independence, discretion and autonomous features help employees understand the work and feel satisfied with the work. It provides experienced responsibility and accountability features. Team members had the authority to decide the work process and work resources. Management by objectives is one way of eSkblishing more autonomy as it helps employees for setting their goals - and feel responsible thereof. Feedback involves the degree

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to which the job provides the employees with clear and direct information about performance and satisfaction. Feedback refers to the information given by employees how they are performing. Employees can give this information to their employer who may amend them. They feel good about themselves when they perform well. It increases their knowledge of work. Psychological States and Work Outcome: The psychological states i.e., experienced meaningfulness of work, experienced responsibility of work, outcome and knowledge of results are influenced by the five core job characteristics. Task variety, task identity and task significance provide meaningful experience to the employees. Task autonomy leads to experienced responsibility and feedback gives know ledge of results. The more psychological states are present, the more satisfied are employees who perform the job effectively and suitably. If psychological states or internal states are felt positively employees perform better. The interval state of satisfaction helps more performance which helps them to feel more satisfied. This state of affairs is to be developed by job design wherein all the core job characteristics should be effectively developed. Hackman and Oldham have concluded that the five core characteristics of jobs have positive impacts on high internal work motivation, high quality performance, high satisfaction with the work and high turnover because these characteristics developed experienced meaningfulness of work, experienced responsibility for work outcomes, and knowledge of results from work activities. The vicious circle of job characteristics, high performance and satisfaction continues under job design as per Hackman and Oldham model. The growth need psyche influences the degree of success under this model.

Motivation Potential Score Model Job characteristics may be low or high to employees as per their experience, skill and learning. Management has to find out how high an employee is on job characteristics viz., job variety, task identity, task significance and feedback. Scales are created for each dimension and then each job is rated according to where it fits on each scale. Variety may be given on a scale from one to 6 and autonomy may be from 7 to 10 and so on. Employees are assessed on this scale. An overall data are collected and indices are prepared accordingly. This is known as Motivating Potential Score (MPS). It is calculated to measure how the jobs are meaningful, responsibility and knowledge of results. The Motivating Potential Score Model or MPS MPS= MxRxKR where: M = Meaningfulness based on average of skill variety, task identity and task significance. R= Autonomy KR = Knowledge of Result. If jobs create high MFS, it creates the probability of high motivation. Jobs are enriched to create MPS helping high motivation through job knowledge and skills; desire to learn, grow and develop and are satisfied with their work environment. The scores of each employee are placed on profile chart. The graphical presentation reveals high or low of each dimension. It provides platform to compare whether a job is more rich or low rich in their profile. In other words, qualitative score is used to me.tsurejob enrichment which is popularly known as job scope. It is very specifically given for Motivating Potential Score (MPS) as:

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MPS = ~kill Variety + Task Identity + Task Si:Uificance x Autonomy x Feedback

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The score of skill variety, task identity and task significance are combined and divided by 3 to get average score. The skill variety, task identity and task significance are additive. Any one or two of these characteristics, may be missing but employees may be getting meaningful experience of the job. Therefore, the skill variety, task identity and task significance are averaged to get meaningful result. Job autonomy is indicating responsibility and feedback referring to knowledge of result. If any of these two viz., autonomy and feedback is zero or absent, the cumulative effect will be MPS = 0, but if any of the three skills variety + task identity or significance is missing; it would not be zero because of averaging factor. People on enriched jobs are more motivated and satisfied which may give them performance effectiveness. This MPS is also known as Job Diagnostic Survey (JDS) to measure the role of core job characteristics on psychological state and work outcome. Employees' satisfaction is improved also by dysfunctional and functional behaviours. 10 9

8

7 6 5 4

3 2 1

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Skill Variety

Task Identity

Task Autonomy Significance

Feedback

Diagram 6.1 Motivating Potential Score

The profile chart of each employee helps understand their job meaningfulness, responsibility and knowledge. CONTINGENCY MODEL Contingency model describes several factors of job scope, individual need strengths and overall organisational design. Contingency model has emphasised on eight combination of the factors. [ Simp], Job Scope

Performance Complex

Individual Need Strength

[ High Low

Overall Organisational Design

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Mechanic Fig. 6.5 Contingency Model

Satisfaction

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The simple or complex job, high or low need strength and organic or mechanical design lead to different levels of performance and satisfaction. Multiple combination and permutation may give frustration, satisfaction, turnover and absenteeism. Based on contingency theory, social information approach has been developed. Employee's perception of task characteristics and the above moderating variables decide the satisfaction and performance of job design. The individual perception relating to job scope, need strength and organisational design influence to achieve satisfaction. The learning and personality relating to job design have similar varying impacts. Quality of Work Life (QWL) has been a significant factor under contingency model as it describes the impact of work on people and organisational effectiveness, participation in organisational problem solving and decision-making. The techniques and knowledge are given more emphasis under QWL for job design.

Social Information Processing Model Social Information Processing Approach (SIPA) uses the social cues provided by their peers and others to arrive at their own perception of jobs. All the job characteristics, psychological states and work outcomes are not always providing correct information about job design. The presence of social cues which are received from the social surroundings help understand the job design and performance. Social cues are available from co-workers, leaders, organisational members, customers, family members and others. Social Information Processing Approach employees on three elements: peers, relatives and judgement dimensions. Peers opine which of these job characteristics really count for the objectives of job design. The freedom given by peers decide the degree of job satisfaction. Relative weighing each other, dimensions about job skills and feedback amount to job understanding. Employee's own judgement of dimension decide the job design satisfaction. The management while planning the job design must focus on managing the social cues in the social context. They can understand which of these social cues are important for job changes. Managers may influence expectation and satisfaction. Gerald Salanick and Jeffrey Pfeiffer have given basic premises of Social Information Processing Approach (SIPA) as organisms, attitude, behaviour, beliefs, reality of their own past and present behaviour and situation. Employees visualise them as per their cognitive evaluation process, real task environment, past actions, reinforcement history and learning and immediate social context. They suggested that social information or social cues are much more dominant in evaluating the job design than the task environment and past action. Social environment must be recognised while framing job designs, as per the various studies of Social Information Processing Approach. Socio-Technical Model Socio-technical model inclines technical factors how inputs are transformed into outputs as well as social factor which consider interpersonal and social relationship for mutual gain of employees and organisation. Under this model, technical and social systems receive high priority for achieving high quality of work life. Quality of work life is desirable for human and performance needs. Employees are the important organs that should be developed for organisational development. Self control and self regulations are required for employees' sensitivity. Organisational level and status differences are essential. Tasks should be grouped and individuals should be given task variety -and responsibilities. Employees are given more importance. They are invited, expected and reinforced. However, employees are not free to misuse their positions and power as they are subject to continual evaluation and change. The technological factors are similarly arranged to adopt suitable job design for the development of

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the organisation. It should be "the best fit job design" in the context of employees, jobs, technology and environment. Since there are constant changes in these factors; current situations, sociotechnical systems must be adjusted constantly. The socio-technical model ofjob design specifically includes building natural work teams, flexible work schedules, socio-technical impacts.

Natural Work Teams Socio-technical model considers redesign of technological work process, foundation of autonomous, selfwork groups or teams. Natural work team is an important factor for developing work design. Job design is developed to perform an entire sequence oftasks with the team spirit. Natural work module is developed through developing the employees wherein individuals with, skill variety, task identity, task significance and feedback are exercised. Employees are performing natural work team with considerable autonomy. Employees are performing natural work team with considerable autonomy. Employees learn to develop team work. Natural work team allows performing even routine work with greater feeling of task significance. The specialisation should not come in between team work and separation of jobs. All the specialised jobs should be grouped together to develop team spirit. Considering the technical factor, the natural work team develops work systems in which the whole system is balanced on technical and human basis. The existing system is reviewed and reengineered in order to integrate human needs and work system in a natural functional order. Flexible Work Schedule Socio-technical model is fixed system for all times to come. It is flexible and is changing from place to place, time to time and person to person in groups. With the flexibilities, employees enjoy some habitude which gives them favourable attitude. Employees are cultured to work as per organisation's needs. The preferences and desires of employees are given due consideration while designing the jobs. One employee may prefer complex jobs others may prefer simple jobs and so on. It gives the organisation the scope of accommodating different employees. Within the scope of organisation; greater autonomy and job satisfaction are feasible. Natural work modules and enriched job content are scheduled to help the employees perform better. Socio-Technical Impacts The impacts ofsocio-technical models are favourably observed in many organisations such as Volvo, General Motors and General Foods. Volvo, a car assembly plant in Kabuai, Sweden attempted the practice of social, managerial and technical innovations which were designed injobs for employees' satisfaction. Although the innovation involves additional cost, the company tried the innovation for the satisfaction of employees and productivity of the organisation. Teams of fifteen to twenty five workers were developed for performing separate specialised jobs wherein employees were given more autonomy. The rhythm of work functioned well as members of each group (work team) were enjoying the work design. Each team was given task significance and autonomy and varieties. They were permitted to handle their own materials and handle inventory. The traditional job design was replaced with these innovative work design involving task identity, skill varieties, task significance and feedback with adequate team autonomy. Employees got satisfaction with the innovative ideas as each of them got the chance at demonstrating task significance and varieties. Volvo employees felt proud of more production and corporate image. Many new factories developed and Volvo developed an outstanding image in car industry. This encouraged members of each group for self management and control. They, themselves, decided the job designs, time

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schedule, work process, technical order, social satisfaction, quality control etc. Employees tried to redesign even the car models wherein different new advantages were added. New brakes, comfortable seats, stress reduction, accident free, fuel economy etc. were used for the benefits of customers. The socio-technical model was propounded by Volvo, the world car industry leader which were followed by other industries too at a later stage.

General Motors General Motors with joint venture with Toyota followed socio-technical model for the improvement of labour, management conflict, poor quality etc. which were achieved and the companies got world recognition, quality and improvement. They designed the job for providing adequate room for workers' attitude and performance. They eliminated some monotonous and boring jobs. A high degree of communication and interaction between employees and management were developed for better performance. Top management developed commitment with task and responsibilities. Job assignments,job mobility, rewards for learning, information availability, self management and control, status, status learning and evaluation were the main characteristics of socio-technical models adopted in General Motors. General Foods The socio-techmcal model was also practiced by General Foods in Topeka, Kansas. This company technologically designed the social aspects of employees who were given responsibility and status symbols. It resulted in cost reduction, increased turnover, quality of work life, more efficient working methods, better product and service quality. Many other organisations in USA such as Tennessee Valley Authority practiced socio-technical models and got benefits thereof. Successful employees' programmes were adopted to improve the behaviour of employees while they were at work. Employees Development Programme Model Job design should consider not only the job process, technological and social enrichment but it should be framed to develop the employees which is very well known as Employees Development Programme (EDP). It ensures that employees should be developed as competent, responsible and satisfied employees. It has specifically incorporated alcoholism treatment, genetic monitoring, non-discrimination action, discipline, responsibilities consciousness and direction. Alcoholism Treatment Employees can be developed ifthey are free from alcoholism because it induces treatment and unsatisfactory behaviour. Management should provide chances to improve the employees against alcoholism and drug use. Many employees use excessive stImulants, barbiturates, tranquilisers which can be disastrous to the action and functions ofthe organisatIOn. Accidents, absenteeism, conflicts and many inactions may lead to low productivity al1d dissatisfaction. Many companies have adopted drug testing at regular intervals, randomly or at given work time. However, exceSSIve relIance on drug testing and keeping employees away may lead to nonavailabilitIes of competent employees. Therefore, sound organisation uses employee's assistance programme (EAPs) for treatment of employees. Treatment of ill-abused employees, alternative medicine, education, awarding non-addicted employees and other preventive and curative methods will favour development of employees while retaining merited people on the job.

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Genetic Monitoring Genetic monitoring is used to reveal the favourable health of employees to a work place. Some harmful genetic substances are undesirable at the place of work. It suggests transfer of the susceptible employees to other areas where they may not be exposed to the genetic substances. Health warning, prevention activities and health development programmes are used for motivating employees for maintaining their health. Recreation, medical facilities, medical reimbursement etc. are essential for employees' development. Non-Discrimination Discrimination against caste, creed, colour etc. is adverse to employees' development. Nondiscrimination policy provides sense of security, safety and satisfaction. Sometimes female employees' complaints of harassment which should be favourably looked into and to their satisfaction and judicious decisions may be made in their favour. Many employees are discriminated on some grounds such as employees suffering from Acquired Immune Deficiency Syndrome (AIDS) and other infectious diseases. In any case employees desire sympathetic treatment for their satisfaction. Discipline Maintaining discipline in organisation is essential for effective performances. Opportunities should be developed for inculcating self-discipline. Climate of preventive discipline is helpful to the organisation. Corrective discipline tries to amend the employees behaviour. It is well known as disciplinary action. It is to reform the offender, to deter similar actions, to maintain consistent and effective group behaviour. Such actions are needed to improve the employees. Progressive discipline refers to stronger penalties for repeated offenses. There may be verbal, written and recorded reprimand. Too much reprimand leads to stress of employees. There is a need for the due process of correction, hot shot guidelines and counselling. The corrective actions should be impersonal and effective. Responsibilities Consciousness Employment is a mutual transaction. Employees must make responsible contribution to the orga.nisation - which may be organisational citizenship, ethical leadership and whistle blowing. Organisational citizens engage in positive social acts, volunteering their efforts on special projects, sharing time and resources and co-operating with others for increasing efficiency and effectiveness. Ethical leadership leads to ethical path and ethical behaviour. Whistle blowing is disclosing alleged misconduct to internal or external source. It does not support illegal activities. Employees blow the whistle against wrong doing of the organisation. They want to protect the public interest while blowers bring pressure on organisation to correct the problem. Direction Direction leads employees to amend their behaviour and develop their merit. Employees are directed by managers, organisation and the public. The direction by management has already been discussed already. INTEGRATIVE JOB DESIGN MODEL It appears from the various studies of job design models that there are proofs of model of job design. It appears that many job design models may be successful on contingency basis combining tenets of many job models. The application of ajob design has been successful in some cases whereas they are total failure in other cases. The cultural, social and technological factors

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are important as the job design process such as job relation, job enlargement, job enrichment and other job characteristics. The situational factors are similarly important to influence job design. Therefore, integrative model of job design has been developed combining all the factors i.e., core design factors, environment factors, internal organisation factors and individual factors.

Core Design Factors Core design factors are Job Content, Job Functions, Relationship Task Accomplishment, Employee Responses and their interaction. Job content includes task identity, task variety, task autonomy, task significance and feedback. The feedback has complex, routines, difficult and simple ways of understanding the job. Job functions involve job responsibility, authority, information flow work methods, co-operation and co-ordination. Job relationship includes interpersonal component, interaction, opportunities and team work. Task accomplishment is composed on productivity, effectivene'3s and efficiency. Employee responses include satisfaction, absenteeism and turnover. The job d0Sign factor and outcome factors are considered essential for the integrative job design model.

Environment Factors Environment factors are essentially considered for designing the jobs because they are dominant factors to assign importance to job content, function and relationship. The environmental factors are social, economic, political and geographical. The socio-cultural factors provide internal satisfaction to the employees. Thejob content,job functions andjob relationship provide satisfaction only in the context of socio-cultural environment. Economic conditions of the country influence the job design, satisfaction and performance. The monetary policy, fiscal policy and industrial policy have greater impacts on the job designs and outcomes. Similarly political situations influence the people, industry and employees which are important components of job design decisions. Capitalism is favourable for technological upliftment and designing the jobs accordingly. Socialism has much more consideration for employment than technological development. The science and technology help develop a particular type of job.

Organisational Factors The job design is greatly influenced by organisational factors. Managerial competence, scale of economy, scientific attitude and attitude of the managers are deciding factors of jobs. All of them are equally considered for the purpose of designing the jobs. Employees' satisfaction, unionism, bureaucratic and autocratic functioning etc. are the important factors to consider for the effectiveness of the job design. All these factors are described in the relevant chapters in detail.

Individual Characteristics Individual differences should be considered for designing the jobs and assigning them to employees. The need hierarchy, value orientation perception and personality are decided for job designs. If these factors are ignored, job designs would not be successful. The integrated model is contingency model to design the job as per need and situations that have arisen during organisational restructuring. Situational variables deeply considered for effective designing of the jobs. The factors influencing the job design must be weighed and reviewed before considering them for designing the jobs.

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JOB SATISFACTION Job satisfaction is individual employee's general attitude towards the jobs. How he feels about the job are considered in the job satisfaction. Job provides monetary benefits as well as satisfaction. Employees while working on the jobs or after completing the jobs feel satisfied, contented and happy. They develop some general attitude while they interact with each other, with general public, with customers, with manager, with public, administration and also with the members oftheir societies. Employees may be feel satisfied, moderately satisfied and highly satisfied. Similarly they may also develop negative attitude at the satisfaction scale. Task varieties, task significance and other characteristics are the important factors for providing satisfaction to the employees. Many employees are satisfied with complete jobs, others are satisfied with simple jobs. Employees perceive thejobs as satisfying or dissatisfying. Sometimes the employees' perception may not be in consonance with the reality. However, the cognitive satisfaction is the important factor to understand employees' satisfaction. Factors Determining Job Satisfaction Factors affecting the jobs are the main factors of determining the job satisfaction, which may be challenging work, reward systems, working conditions, colleagues, learning and personality. Many employees prefer challenging jobs. They acquire mental satisfaction. Skill variety, autonomy and significances are challenging tasks which provide maximum satisfaction to the employees. Many times, people feel boredom ifthe job is too simple and routine, but many employees enjoy the simple and routine jobs. The job characteristics are important factors for providing satisfaction. Reward systems are influencing people. Equitable rewards, equal pay for equal work, promotion avenues etc. are satisfying factors. Money is important for the employees having basic and safety needs unfulfilled; but the attitude towards rewards changed once employees are satisfied with their basic needs. They require more awards and recognition. Fairness in promotion, unbiased attitude of management; responsibilities and social status are considered factors for providing satisfaction to employees. Working conditions are influencing employees' level of satisfaction. In a conducive working condition people prefer to work hard while in an adverse atmosphere people avoid work, working conditions do not include only physical conditions of the work place but also working relationship in the organisation. The light, temperature and work relation have greater impact on people's working capacity and willingness. For example, the same clerk who was working in a routine condition, if given air conditioned atmosphere with the facilities of computer, likes to work hard. He gets satisfaction while working in the office. It increases working capacities ofthe employee. The relationship between employees and manager, amongst the employees and managers have important bearings onjob satisfaction. The social interaction is also recognised for the purpose. Job satisfaction is immensely observed in case the higher authority is sympathetic, friendly and willing to help the employees. Employees feel satisfied when their views are listened to and regarded by the higher authorities. The perception and personalities of employees are the deciding factors of job satisfaction. Personal attitudes and perceptions are the emplcyees' angles of satisfaction; which should be taken into consideration while motivating people to arrive at job satisfaction. Impact of Job Satisfaction Job satisfaction has positive impacts on productivity, presence and performance. Satisfied workers like to perform more willingly and happily which increases the productivity. Job satisfaction induces employees' presence in the organisation. Behaviour of employees is improved when he is working with satisfaction. Job satisfaction is more influential to productivity and

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performances with the higher level of employees. Presence is visible in the lower cadre of employees. The turnover is increased with the satisfied employees and sales force. Market conditions, job opportunities, length of work tenure and promotion policies along with satisfied sales force will increase sale. Dissatisfied employees prefer exit and neutral productivity. They do not like to work hard and demonstrate their capacities. They continue to work as routine and uninterested persons. If they are pressurised they resort to unhealthy and disinterested jobs. They prefer to leave the job. Loyalty declines and criticism of the organisation increases. Ultimately the image of the organisation suffers a lot. Job design is created to help employees get satisfaction and perform better. The job content, functions and relationships are well designed to motivate employees for better results and achievement of organisational goals. QQQ

Chapter 7

MOTIVATION ~ BASICS 1. 2. 3.

MEANING TYPE THEORIES (i) Classical (ii) Contemporary (iii)

Inte~ratin~

Motivation is related to motives of the people by which they are moved and activated to achieve the goal. Motivation may be understood differently by different people as incentives to work, motives to achieve goals, desire to possess something useful, drives to come forward for outstanding performance and so on. The Latin word movere is the basis of motivation. Movere means to move. Motivation is the spirit of the people which is ignited by something, message, appeal and the like. Since the level of realising the self, spirit and power is different in different people, motivational factors have varying degrees of impact upon them. People are motivated under certain situations and actions. Many situations and actions are more interesting and highly inspiring. They are used for motivational purposes. In an organisation, the job design, managerial relationship, reward system, performance appraisal and interaction with employees are important components of motivation. Motivational factors may be viewed from individual characteristics, supervisory factors, organisational factors, external factors and so on. Meaning, type and theories of motivation are discussed in the chapter.

MEANING OF MOTIVATION Meaning of motivation has been give~ by different authorities in different manner. Bernard Berelson and Gary A. Steiner have defined, it as: "A motive is an inner state that energises, activates or moves and that directs or channels behaviours toward goals." It reveals that motivation is an inner condition of people, which energises people to work hard. Motivation arouses or incites activities. Motivation is used to direct the employees to achieve goals in the right perspectives. As a process of motivation, the management watches how the employees start, stop and sustain the work spirit so that they are properly directed and channelised towards the achievement of goals. S.P. Robbins has defined, "motivation as the willingness to exert high levels of effort toward organisational goals, conditioned by the effort; ability to satisfy some

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individual need." Motivation exercises to achieve goals of employees and organisation. Employees are interested in satisfaction and organisation aims to achieve the organisational goals. Motivation while achieving organisational goals tries to provide maximum satisfaction to employees through fulfilling their desires, needs and wishes. It takes place within a culture, reflects an organisational behaviour model and requires communication skills. Motivation is successful on communication method. It should understand the employees' drives and needs as well as consistence with organisational goals. Motivation is always directed towards achievement of high level of work, favourable job and high performance. The quality of work, employees' level of performance and their qualifications are considered for motivation. BASIC MODEL OF MOTIVATION Motivation is based on need which is feeling of lacking something. Feeling of need or unsatisfied need creates tension that stimulates drives within the individuals. These drives generate search behaviour to find out the ways of satisfying the needs. It will try to achieve the goals. Satisfied needs reduce the tension and provides satisfaction. Environment

Unsatisfied Need

Opportunity

rJ;Re:w=ar:d~o:r:-~-L~

Satisfaction Fig. 7.1 Motivation Model

Need is a feeling of deficiency. It creates physiological and psychological imbalances which create tension in the mind of employees. The employees' drives are energised and activated to find out the satisfaction through its achievement. Drives are strong feelings of the deprivation which thrust upon certain goals. It leads to action and provides energy to achieve them. Drives lead to search for the proper action which will provide satisfaction. Goals achievement is reduction of tension. It restores physiological and psychological balance. Motivation. is a natural process wherein the felt needs are recognised. Need creates a state of disequilibrium i.e. 'tension which is to be reduced through behaviour. Individuals will search the behaviour for getting satisfaction. He will select suitable strategies for the purpose if he is qualified adequately. Motivation, therefore, depends on ability, experience, education, background and skiils of individuals. The satisfying tools may be financial and 'non-financial rewards and punishment. The motivation cycle leads to satisfaction. If the needs are unsatisfied, during the process, unsatisfied employees may create some problems which should be solved immediately to satisfy the employees. Otherwise a vicious circle is created which will mar the motivational process. Motivation has drives which are based on cultural environment in which the person lives-. Cultural environment and drives affect the people's desire to work and approach to the probieJits. Besides, national characteristics and desires of achievement influenc~ motivationievel.

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TYPES OF MOTIVATION Motivation has been observed in different forms and types depending upon various environments, opportunities, goals, ability and so on many other things. These motivational factors are mainly divided into primary motivation and secondary motivation. Primary Motivation Many motivation drives and motives are unknown to the individuals although they exist in them and motivate indirectly. Since these drives and motives are physically attached with the people, they are known as primary motivation or motivation. They are biological and unlearned. Primary does not mean that these motives are having precedence over other motives. Primary motivation is basically related with human needs for physiological satisfaction. Primary motivation is unlearnt and natural relating to physiological needs. The primary motivation may be of general type which are naturally felt by the individual. They are competence motives, curiosity, manipulation, activity and affection. Competence Motives: Natural motivation depends on several unknown factors such as competence, curiosity etc. Many others have tried to explore the competence and others to find out their impacts on primary motivation. For example, human and other organisms have capacity to interact with the situation. They have the capacity, very well known as competence, to understand the situation, its exploration, "manipulation· and different functions. The capacity to interact with the environment has been termed 'Competence Motives' by Robert W. White who explained that competence motives receive substantial contributions from activities. They direct, select and persist with environment. Competence to act, interact and counteract the environment is the basic foundation of primary motivation. People try to have control over the environment or behave sensitively within the given environment. The competence motives vary with age, sex and education. The competence drives help children to learn may things automatically e.g. riding a cycle, crossing road, reading habit, learning mother's language, homely culture and so on. These basic factors or natural competence is explored, developed and sustained by the children which are preserved in them till old age. The intensity ofthe competence motives shape his adulthood motivation drives. Based on these competence motives, some employees prefer rough and tough jobs, others like to work on sophisticated machines while someone may feel happy at table work, while designing the jobs and assigning the job, competence motives are deeply considered to make the employees highly motivated to achieve goals. Curiosity Motives: The primary motives have unlearned drives to explore and manipulate objectives. Curioility is one ofthem, which inspire people to adopt a significant activity. Without curiosity, one cannot desire to learn and direct his activities. Many times, students express their curiosity to perform a particular function. During curiosity, they learn many new schemes. Employees are motivated because they have curiosity for development. In absence of curiosity, employees become dormant and sleepy. They would not take any interest in the organisational activities. Affection Motives: Primary motivation includes affection motives. Love and affection are a part of human enjoyment which is aimed to be achieved by the employees. People work because they want to support their families. If the family needs are fulfilled, they are inspired to work hard. Love and affection have become prime movers of people's activities. Human Needs: The primary motivation includes satisfying human needs. People work for satisfying the individual and family needs of hunger, clothing, housing, education, etc. The present and future needs are to be satisfied by the working people. No one would like to work if

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the basic needs are not satisfied. Social and psychological needs are secondary motivation. Primary needs such as needs for food, water, air, comfort, shelter, and safety are prime motivators. These human needs are to be satisfied for making the individual active and working.

Secondary Motivation Secondary motivation is learned and consequential. Primary drives are unlearned and natural as feeling ofthirst, hunger etc. Secondary motives are learned and realised as a result of development. Ai; human beings develop and learn many new ways of satisfaction and comfort, secondary motives crop in, which prevails in the cultured and educated society. Secondary motives do not remain secondary in the developed organisation, rather, it becomes essential for moving the activities of educated people. It becomes prime mover .of developed people because it becomes natural to feel the needs. Many authors have emphasised to separate secondary motivation from primary motivation to retain each other's identity. Secondary motives are always learned. They are Achievement Motivation, Affiliation Motivation and Power Motivation. Achievement Motivation: People are achievement oriented. Apperception test has revealed that many employees work for achievement of satisfaction while working in organisation and getting satisfaction thereof. Knowledge and learning have become helpful for developing achievement motivation. Many psychological tests have revealed the level of achievement motivation. McClelland has devised techniques to measure Need for Achievement (NAch). He has revealed high achievers' and low achievers' qualities. High achievers are not necessarily risk takers. They are cautious and careful persons. They 'are moderators. People believing in high achievement need immediate feedback. They find achievement as intrinsic satisfiers. The material rewards and other results are not necessarily attached with the high achievers. They believe in work and work only, caring little about the results and reward. They are preoccupied with work until work is completed. They do not want to leave work unfinished. However, high achievers are divided and live alone. They like peace and solitude. They are realistic, excellencepreferential and having good behaviour. Low achievement oriented people do not bother above the goal. They like to work for reward and result and not for individual job satisfaction. They are pessimistic. They do not like their subordinates to enjoy the fruits of achievement. They do not care about people and production. High achievers are assets to the organisation as they feel personally responsible for reaction and results. Affiliation Motivation: Affiliation motivation is related to social motives. People like to be recognised by the society. Employees feel happy when they are complimented for their services rendered. They get inner satisfaction while being with friends and in a group oflarge number of people. They like job freedom for mixing with other colleagues. If an employee is associated with some social organisation, he is being liked by his friends. Thus, the affiliation motives help the people to develop. Persons having affiliation attitudes are in a better position to manage their employees. The employees also like to work with affiliation oriented manager because the latter can easily assign the task. He gets an opportunity to monitor work and direct work activities. Affiliation motives are useful for group dynamics. Power Motivation: Many people desire power to influence others. Power-oriented people are management-oriented. Institutional power is better than individual power because former is used to influence the behaviour of the employees to make them more productive. Qualified people prefer to seek power through legitimate means. They want leadership through successful performance.

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THEORIES OF MOTIVATION Theories of motivation are classified into early theories, contemporary theories and integrating theories. Early Theories Motivation theories can be searched in the early history of civilisation, when people started living in groups and society, they searched methods of helping and inspiring each other. The group performed better. They co-operated with each other in joy and sorrow. Group behaviour was seen in developed form at that time. However, individualism started and group form disintegrated. Individual behaviour was mobilised to achieve group goal for which several theories developed in the early part of twentieth century. Theory X; Taylor's theory of Scientific Management; Human Relation Movement, Theory Y and Maslow's need hierarchy were developed in the early history of management. Theory X Theory X is the old theory of motivation wherein people are considered as unwilling part of work. Even today, less educated and traditionally labour dominated industrial houses have to depend upon theory X for driving the worker for more action. Employees are unwilling to work because they are lazy and non-ambitious. They work only when they are forced to work. This theory predicts that employees avoid work to the maximum possible extent. They do not like to share responsibilities and power. These characteristics are observed in undeveloped societies. The theory suggests that work be done through coerced, controlled and threatened method. McGregor suggested two distinctive views of human beings: one negative known as Theory X and second positive known as Theory Y. The Theory X states, "Since employees dislike work, are Jazy, dislike responsibility and are less ambitious; they must be coerced, controlled, directed or threatened with punishment to get them to put forth adequate effort toward the achievement of organisational objectives."! Inspite of all the development and education; many industrial houses are functioning under traditional and negative attitude as mentioned above. They use theory X to get work done. Indian industries, particularly small scale industries are applying theory X for solving their problems. Scientific Management F.W. Taylor has explored that coercion cannot work long for the permanent solution of the problem. Industry can survive and grow if employees are satisfied. He explained that the basic factor of satisfaction is monetary incentive. But monetary award should be linked with productivity. He propounded differential piece rate for motivating employees. Differential piece rates are suggested for. different level of work. Taylor assumes that there are problems of insufficiency, workers devote less than their capacities, workers are afraid of retrenchment and workers are passive partners of industrial activities. He emphasised that managers can solve fill these problems. It is a manager's responsibility to recruit suitable person for a particular job. The workers should be adequately trained to perform the job efficiently. Employees' wages should be linked directly to the performance. For the first time, only Taylor has assumed that employees can be motivated with positive actions. Employt:es' efficiency would improve as a result of motivation for which he has suggested piece rate wage system. Work design was also suggested to motivate employees. Money has been considered imr:ortant instrument for motivating as workers have several needs to satisfy. If pay is linked with productivity; the employees work 1. Adapted from Szillagi and Wallace's Organisation Behaviour and Performance. p. 104.

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hard for getting more money. Managers have to review their functions from time to time to find out the most suitable job design and people thereon. This experiment continues and improvement has become a way oflife. Employees are working in an environment which should be developed congenially and cordially with the help of managers. Scientific management has placed more responsibilities on the managers who are responsible to get work done through monetary motivation, work design and worker environment.

Human Relation Movement Scientific management has given birth to human relations movement. While working with the employees at work place; management has to develop human relations. It was realised that human being should be treated humanely and should not be considered as a machine. Money is not the only factor of motivation. Humane treatment of employees makes them more productive. Many employees are ofthe nature who do not require any supervisor to impose work upon them. Such types of employees should be weeded out and given proper and humane treatment. These high performers will be the pace-setters to other lazy and dormant employees. Employees should be given opportunities of recognition, achievement, commandership and job satisfaction. Human relation theory believes that human beings are motivated on humanitarian and personal relations. It suggests encouraging workers to participate efficiently in work functions and also should be given opportunities of participation in managerial decisions. Workers should be given greater range of participation, Group behaviour, interaction, recognition, job satisfaction and other human relations are exercised for development of an o:r:ganisation. Flow of communication between management and employees is improved for developing better understanding between them. TheoryY Theory Y is a developed form of human relations theory. Motivation theories develop constantly through important channels such as scientifi,c management and human relations. It assumes that people are developed and educated. They exercise tact, genius thinking and rationality. They use self direction and self control for the achievement of organisational goals. They are committed to work performance and achievement. Since they prefer interaction and influence, they are responsibility oriented. People have high degree of imagination, ingenuity and creativity which are used to develop the organisation. Science and technology have positive impact on people who prefer to work hard to get all the modern amenities and recognition of lively living. Modern management theorists including McGregor has explored very important theory of organisation i.e. Theory Y which assumes the tenets of participation, morale building, and self development. The management practices such as delegaticn of authority, enriching the workers, increasing the variety of activities and responsibilities are exercised for the development of organisation. It is noted that similar to theory X, theory Y is not useful for all sorts of industrial undertakings. Theory X is effective for less developed and uneducated workers. Theory Y is feasible only for developed and educated workers. Theory Y is applicable to those employees who are responsible and ambitious. Individuals having creative thinking and high ambitions are more successful under theory Y. Maslow's Theory of Need Hierarchy People are motivated when their needs are fulfilled. There are different needs for different persons which require a large number of motivation. Abraham Maslow has synthesised these problems and given need hierarchy while suggesting that a need if fulfilled easily will not be motivation. There are five levels ofnee,ds wherein if the lower is satisfied, tpe next higher need

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will be the motivating factor. Abraham Maslow has published his classic paper in 1943 suggesting the need hierarchy. Maslow's need, is derived from general understanding of people's need, which can be instrumental to motivate employees at workplace. He has deduced his hypotheses based on three fundamental assumptions. Firstly, people's need influence their behaviour. Unsatisfied needs act a motivator if fulfilled by management. Satisfied needs or needs' satisfaction in routine form would not motivate employees. In an organisation, where employees get bonus as routine and regular feature, bonus does not become the point of motivation. Second assumption is that individual needs are arranged in order of importance i.e. hierarchy. Thirdly, people advance to next hierarchy of needs only when the lower needs are atleast minimally satisfied. A labourer likes to satisfy his basic needs rather than satisfying social needs. Similarly, a supervisor believes in safety rather esteem needs. Maslow has given five hierarchy i.e., level of needs, which are physiological needs, safety needs, social needs, esteem needs and self actualisation needs. Self Actualisation Esteem Needs Social Needs Safety Needs Physiological Needs Fig. 7.2 Maslow's Need Hierarchy

Physiological Needs: The basic needs of people are physiological needs. First people try to fulfil their needs of air, water, food, sleep, sex and other bodily needs. They are used as motivators till they are fulfilled. Once they are fulfilled, they do not remain important factors of motivation. Everybody is working for satisfying firstly the physiological needs. Management uses monetary motivation to actuate the employees to fulfil these needs. But once these needs are satisfied or satisfaction of these needs becomes a regular feature; no one i~ motivated. This is the reason that many supervisors and managers are not motivated by higher pay. If pay in linked with production; lower class employees or low paid employees are motivated. Higher class employees are not motivated with higher pays and perks because they have developed enough resources for constantly fulfilling their basic needs. Firstly, people like to fulfil their own physiological or basic needs. Ifhis own needs are fulfilled, he likes to fulfil basic needs of his family. Employees need salary and wages, healthy working conditions, canteen and other basic amenities at work place. Safety Needs: The second level of need is safety after fulfilling the physiological needs. Maslow emphasised on emotional and physical safety after basic needs are satisfied. People I equire protection against danger, threat and accidents. Then they require good houses to provide comfort to their families. Surroundings and atmosphere are also posing problems of threat. People are becoming cautious over the increasing problems of pollution of air, water, hygienic work and living conditions; they are motivated to work hard. Employees are also motivated if they are given permanent jobs. On the contrary, they are unable to use their full capacity. People prefer safety, security, competence and stability after satisfying their physiological needs.

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Employees need safe working conditions, fringe benefits, regular increments in pay, job security . and stability, under safety needs after getting basic needs fulfilled. Social Needs: Once physiological and safety needs are fulfilled, social needs arise. Social needs include need for love, affection and affiliation. Love is not related merely to sex; it is friendship and mostly desired by people for internal satisfaction without caring for bodily satisfaction. Need for social recognition, sharing joy and sorrow, affiliation and interaction of people are included under social needs. People when developed up to a certain level start feeling the needs of affection, affiliation, acquaintance and friendship. Employees therefore like comradeship, colleague's interaction, friendly boss, compatible work group, professional friendship and group enjoyment. A developed organisation has to provide all the requirement for motivating their employees because now, they are not much influenced by basic salary, fringe benefits and safe working place because they have already acquired them. Esteem Needs: After satisfying social needs, people like to satisfy esteem needs which include self respect, recognition, performance, satisfaction, prestige and self confidence. Esteem needs include self-esteem as well as esteem from others. Employees like autonomy, achievement, status, recognition and leadership. Generally, people are not much bothered about these factors because they have not reached to this level of needs being lower needs unfulfilled. But if the three lower needs are satisfied, people prefer to go higher in status, ego recognition, appreciation, followings, self-esteem, self-respect and other contributions. Developed employees work for more than allotted period because they needjob satisfaction, work achievement, and responsibility. Money is not a motivating factor for them; they need more appreciation and recognition by seers and peers. They want to develop self-confidence, prestige and performance achievement. Self-Actualisation: Self-actualisation is the highest level of need where people want selfsatisfaction. Since they have achieved all the four lower needs of life, nothing accept self satisfaction is left to them. They need self-realisation and self-recognition. Soul and universe become the topic of realisation of such people. They want to be outstanding persons and example setters. People prefer growth. achievement and outstanding performance. They like challenging jobs, creativity, advancement and achievement at work place. Since employees have satisfied all their four needs, they search for new needs to be satisfied; which may be learning new things and to work differently in a better manner, since they want to become innovative, creative and outstanding; they work harder and harder without caring about family and his own needs. Such types of persons become above the body and soul. They work for organisation and society. Such type of people are very rare in society. Abraham Maslow has suggested that if employees are to be motivated, their hierarchy of needs should be known and efforts should be made to satisfy that particular level of needs. Maslow, himself has separated these five needs into two needs: Lower order needs and higher order needs. Physiological and safety needs are known as Lower Order Needs whereas other three needs viz., social needs, esteem needs and self-actualisation are included under Higher Order Needs. He has stated that lower order needs are satisfied externally i.e. beyond his purview. Similarly, higher order needs are satisfied internally. It should be noted that these distinctions are not always applicable everywhere. According to situation, place and time; Maslow's theory of motivation is adaptable. The above five needs are again classified into Primary Needs and Secondary Needs. Primary needs are Lower Order Needs which include physiological and safety needs. These needs are basic requirement oflife and are essential for survival of the human body. They vary from person to person, age to age and sex to sex. Secondary Needs or Higher Order Needs are related to mind and spirit rather than physical body. They are social

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and physiological needs. Secondary Needs are more impetus oriented and sensitive. Therefore, ptanagement while motivating employees on the basis of secondary needs are very cautious. Maslow's need hierarchy is based on lower need satisfaction in ascending order from basic to motivational purposes. He has pointed out that unsatisfied needs if satisfied will be important point of motivation. Sirpilarly if unsatisfied needs remain unsatisfied for longer period will become a factor of frustration, conflict and stress. Employees' behaviour will be negatively enhanced which may go beyond repair. These needs, therefore, should be satisfied as soon as they are realised loosing their significance to motivation. Need realisation should not take the shape of need deficiencies; otherwise employees will develop defensive behaviours in the form of aggression, blaming others, movement and regression. Aggression is physical or verbal behaviour directed toward object, organisation and person. Physical aggression takes the shape of sabotage and stealing. Verbal aggression is emotional outburst against the behaviour and presence of boss. Blaming behaviour is also negative and dangerous for the organisation because employees blame others for non-performances. The unsatisfied employees leave the organisation in search of better opportunities. Consequently, the organisation suffers. Movement will be most harmful if higher level employees are prone to move for want of need satisfaction. Regression is developed in non-fulfilment of need hierarchy related to the employees. He becomes harsh, terse and antagonist. It is, therefore, suggested the need realisation be satisfied at the earliest possible time before being is converted into needdeficiencies. Needs are continuous and regular. They should not be looked upon from discrete and full angle. No need is fully satisfied. Many offshoots of needs have arisen within the same level. This is the reason that all the five needs are always the motivators. No one crosses other as stipulated by Maslow. A top manager is continuously feeling physiological needs. Therefore, the esteem or other needs cannot take place ahead of other needs. Safety needs will be motivating to him depending upon the level of satisfaction as needs are not fully satisfied. However, Maslow's theory is useful to determine the main and prime mover of motivation.

PART-II CONTEMPORARY THEORIES Contemporary theories developed after early theories pave the way of motivation. Contemporary theories are of recent origin. They explain the act of motivation. They consider the real and practical factors of motivating people. Some of the important contemporary theories are Hygien~ Theory, ERG Theory, McClelland Theory, Cognitive Theory, Attribution Theory, Goal Setting Theory, Vroom's Expectancy Theory, Equity Theory and Reinforcement Theory. Hygiene Theory Hygiene theory assumes healthy working conditions and congineal relationship. Hygiene factors help employees maintain a level of working order. They are not dissatisfied at the presence of hygiene factors. They do not go negative and look for high and favourable factors. At this point, motivational factors are more effective. This theory explains that motivations are effective only when the dissatisfiers are removed. In other words, hygiene factors should precede motivation factors. This theory was propounded by a psychologist, Frederick Herzberg who explored the attitudes of employees towards their jobs under exceptionally good and or bad pointing them as job satisfaction and job dissatisfaction.

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Job Dissatisfaction -2Absence

A. Hygiene Factors

No Job Dissatisfaction

No Job Dissatisfaction

Job Satisfaction

-1 Presence

Absence + 1

Presence + 2

------

B. Motivators

Fig. 7.3 Hygiene Theory

It is clear from Fig. 7.3 that hygiene theory has two main considerations i.e. hygiene factors and motivators. It is noted here that no job dissatisfaction does not mean satisfaction. In other words no satisfaction does not mean dissatisfaction. There are three levels: satisfaction, neutral and dissatisfaction. Absence of motivators does not lead to dissatisfaction. Employees are care free and neutral. Presence of motivators have motivating impact leading to employee's satisfaction. Similarly, presence of hygiene factors does not lead to satisfaction or dissatisfaction. It creates a mental state where employees are put in their original form to pave the way for motivation. Before providing motivation, employees should be brought to this level. Otherwise, motivation will not be effective to achieve the goal. Absence of hygiene factors creates job dissatisfaction wherein employees work against the interest of the organisation. Dissatisfied employees are liabilities to the organisation. They feel distress, frustration, stress and disorders in the job. On a scale offive, it may be put as - 2 to demonstrate dangerous feelings of employees. Thus, hygiene factors are set for making motivators effective to achieve the goals of an organisation. In the absence of hygiene factors, employees are dissatisfied. Management should know all those factors which create dissatisfaction because these factors are avoided for upkeeping employees in good position, peace and trust. Hygiene factors are avoiding these dissatisfiers. It means, there will be hygienic condition when the dissatisfiers are eliminated and prevented to recur. Hygiene factors which should be present are good working conditions, salary, interpersonal relations and policies for safeguarding the interests of the employees. If these factors are present and adequate, employees will be neither dissatisfied nor satisfied; they are put in a neutral state of peace and favourable thinking which are essential for motivating the employees.

Comparative Analysis of Herzbet

Other's inputs

'.

Motivation -

Basi{'.~

155

If a person is getting less than that of other, inequity exists because of being under rewarded. The person tries to improve himself so that he can reach to the level others are at. A person perceives job situations and outcome in relation to what he puts into it i.e., input with those of outcome and input of others. In case both the ratios are equal, equity exist and the person is at constant level. He is not motivated on this ground. On the other hand, if person's outcomes as compared to his inputs is more than other's outputs in terms of his inputs; the person is over rewarded and tries hard to remain higher than those of others. Equity theory is cognitive based motivation theory. Perception has great role in motivating the person. If a person is undeterred with the inequity; he is not motivated. In normal way, persons are envious with others, they are motivated accordingly. But, if persons do not bother about others' achievement they are not motivated at other's outcomes. Equity theory is backed with the cognitive dissonance theory, which is based upon the person's perceptions, age, education, sex, qualifications and other factors. The ratio of outcome to input is perceptual. This cognitive theory is motivation. The strength of motivation is direct outcome of the perceived inequity. The person may change the inputs or outcomes, cognitivity distorts the inputs or outcomes, leave the field, act on other or change other to restore equity. Over reward is not desirable as persons do not get incentive of getting more. The inputs and outcomes analysis has incorporated their real world meanings. Input means education, seniority, work experience, capacity to contribute commitment, effort and job performance. Outcomes refer to direct pes, bonuses, awards, rewards, fringe benefits, recognition and socio-psychological satisfaction. Perceptual Framework: The equity theory is based on perceptual framework. Person compares self-inside and other-outside. Self-inside refers to his different position inside the organisation and other inside indicates to other employees' position in the organisation: Outside refers to outside behaviour and outcome. Persons compare themselves to friends, colleagues and other related persons outside the organisation. It is observed that employees prefer same sex comparison. Women employees tolerate less pay than the pay given to males because other women employees, too, get the same payment. Managers make outside comparison because they have information pertaining to other organisations. Equity theory assumes that when employees perceive others better than their input outcome relations; they change their inputs and outcomes. They distort perceptions of self and others. They choose a different referent or leave the job. Employees are satisfied not only with his absolute amount of regards but get comparative satisfaction with what others receive. People exert hard to get more pay and comfort as compared to others. Equity theory focuses on distributive justice and the perceived fairness of the amount and allocation of rewards. Process-motivation is also observed under equity theory as it considers procedural justice i.e. perceived fairness of the process used for distribution of rewards. Distributionjustice has greater impact on the employees' motivation than the procedural justice. Inspite of certain empirical criticisms, equity theory has been found useful for managing and motivating people through equitable rewards. The comparison of employees within and outside the organisation is done to motivate employees. Inequity of under payment is used for motivating the less efficient employees. Overpayment is solved by distorted figures. The expectancy theory is path-goal theory i.e. effort-performance-reward, which has become more useful for motivation purpose.

REUWORCEMENrTHEORY Reinforcement theory has behavioural approach. Persons tend to repeat behaviour that is accompanied by favourable outcomes and tend not to repeat behaviour that is accompanied by unfavourable outcomes. It is the opposite of goal-setting theory which is cognitive approach

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proposing an effort for attaining purpose but reinforcement theory believes in behaviours. Reinforcement theory does not stress on perception or inner state of mind; it is directly related to what happens to a person at certain action. However, it is not concerned with what initiates behaviour but is concerned with behaviour motivating employees. One's behaviour is improved through conditioning which is a theory oflearning. Reinforcement theory ignores the attitude, feeling, expectations and other cognitive variables that influence behaviour. It is concerned with direction, arousal, maintain and alter behaviour. Repeated action is reinforcement which helps acquire a desired behaviour. Similarly repeatedly preventing unfavourable behaviour will lead to reduced unfavourable behaviour. Favourable behaviour is repeatedly reinforced to develop a good habit. Methods ofReinforcement: Reinforcement theory is based on learning process, particularly operant conditioning. It tries to develop behaviour of employees b~ause favourable behaviour is autcomatically motivating people to exert hard. Reinforcement assigns greater responsibility of employee's development and control. The behaviour is measurable in terms of achievement of objectives e.g. number of units produced, time and hp.dget economy, quality control and other achievements. Reinforcement is contingent upon stimuli, attention, recognition and translation. Classical, operant and social learning are used for reinforcement. Reinforcement shapes the behaviour. Stimulus-Response and Response-Stimulus relationships as discussed in the chapter oflearning are helpful for building and developing of behaviour. Many times, response or consequence is used to reinforce particular behaviour but stimuli are significant factors for motivating employees to attain a particular behaviour. It has been concluded that motivation is learned behaviour. Motivated behaviour help achieve the objectives. Motivated behaviour is built, developed and maintained through learning which becomes effective when perception is rightly developed by the organisation. The reinforcement period should be shorter to the possible extent for getting effective behaviour. The period of reinforcement starts at the performance and ends with the reward achievement. The stimuli and response should be narrower to the possible extent. The response and consequences are needed to be narrower to motivate employees .. Simply, it is said that the achievement or consequences should be appreciated by the manager at the earliest possible opportunity. The manager who is reinforcing, i.e., reinforcer should be prompt in action and observation of the stimuli-response relationship. He should be a person of integrity and faith. The competence and credibility of the reinforcer have greater impact of reinforcement on employees' behaviour.

Types of Reinforcements Reinforcement has been differently used for motivating employees as per circumstances and situation. There are four types of reinforcements viz., positive, negative, punishment and extinction. Positive Reinforcement: The positive reinforcement increases the favourable behaviour of employees. It provides favourable consequences that reinforces the behaviour. New computer is given (stimulus) to a clerk who uses it for getting the work done at the earliest possible and efficient manner (response). It creates favourable behaviour and the employee likes to repeat the work with enjoyment. Behaviour is reinforced and the employee wants high quality work again and again. Reinforcement is contingent upon the employee's favourable behaviour. Positive reinforcement is possible at the positive attitude of the supervisor who provide performance feedback, recognition and rewards to the employees. Regular feedback and recognition give the

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employes positive reinforcement. Positive reinforcement gradually shapes the behaviour. Training is considered as an effective method of shaping behaviour. Improved behaviour is reinforcement through recognition and appreciation. Negative Reinforcement: Negative reinforcement is removal of an unfavourable consequence. Unfavourable behaviour is repeatedly removed till it is avoided. A mechanic working on the machines, listens to some abnormal sound and tries to stop the machine to prevent unpredictable danger. The unfavourable consequence or response is avoided by non-performance. It is like putting two negatives to make positive reinforcement. It is used to strengthen the desired behaviour. The mechanic by negative reinforcement as mentioned becomes accustomed to stop the machine on hearing a certain type of noise to prevent a breakdown of the machine. Negative reinforcement is avoidance learning. It avoids undesired consequences through strengthening the behaviour unlike positive reinforcement is avoidance learning. It avoids undesired consequences through strengthening the behaviour unlike positive reinforcement which stimulates better performance. Avoidance of risk or unfavourable consequences are as essential as better performance. Negative reinforcement is avoidance of unfavourable situations. It is not punishment which discourages any type of behaviour. Punishment: Punishment is reprimand to prevent unfavourable consequences; It is used to influence employees not to resort to any undesirable behaviour. It is to decrease undesirable behaviour. Positive reinforcement strengthens favourable behaviour. Punishment retrogrades undesirable behaviour through reprimand known as unfavourable consequences. The responses i.e. unfavourable consequences are used to prevent stimuli i.e. unfavourable behaviour. The reprimand i.e. punishment is expected to improve the unfavourable behaviour of employees. Repeated reinforcement of reprimand may discourage employees' favourable behaviour. It is disciplinary action resorted by supervisor to prevent undesirable behaviour of employees. Punishment may discourage undesirable behaviour ifit is not grave and retaliatory. It does not encourage favourable behaviour. Punishers are disliked for their alleged unfavourable behaviour. Moreover, persons punished are unclear about the desired behaviour. Small dose of punishment may prevent unfavourable behaviour and undesired consequences but continuous and heavy doses of punishment ,creates unhealthy conditions and acrimony in the organisation. Table 7.6 Types of Reinforcement Positive

Negative

Stimuli (a) Favourable performance (a) Unfavourable or stop of performance

Response

~

~

Favourable & desired behaviour

Consequences

----.

Prevent unfavourable or undesired behaviour

Pu,nishment

(a) Favourable performance desired or expected

.--

Extinction

(a) Non-presence of favourable performance

Avoid unfavourable ----. behaviour

Prevent unfavourable behaviour

~

Increased results and rewards Prevention of unhealthy atmosphere

.--

Unfavourable reward or reprimand

..---

Withholding increased results

Organisational Behaviour and Corporate Development

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Extinction: Similar to punishment, extinction is the reinforcement to reduce or dominate undesirable behaviour. Extinction is withholding of positive reinforcement. It is the absence of reinforcement. With continuous non-reinforcement; the undesirable behaviour may disappear or may be totally eliminated. Extinction does not give any increased results but it avoids unfavourable behaviour. Punishment is unfavourable consequence or reprimand and is not avoidance of positive reinforcement. The basic purpose of any type of reinforcement is to motivate different types of employees under different circumstances. Reinforcement theory either increases the strength of desired behaviour or decreases the strEmgth of undesired behaviour. For example, supervisor gain the benefits of extinction simply ignoring undesirable behaviour. Management can achieve the goal of organisation by manipulating the favourable or unfavourable consequences. Schedule of Reinforcement The manner in which consequences or rewards are given contingent upon employees' behaviour is known as schedules of reinforcement. It is the frequency with which the chosen consequence accompanied the desired behaviour. Schedule of reinforcement may be continuous or intermittent. Continuous Reinforcement: Continuous reinforcement involves a situation in which behaviour is reinforced each time it occurs. Reinforcer accompanies each correct behaviour by an employee. Such type of scheduling is desirable to encourage quick learning. Every time the employee is rewarded; but it is feasible to award employee every time he performs correct behaviour. Therefore, reinforcement is not continuously administered. The example of continuous reinforcemer..t is piece rate system of wage payment. Intermittent Reinforcement: Intermittent reinforcement occurs when each behaviour is not awarded every time but is awarded after a time interval or with a ratio. This reinforcement is considered more effective and useful. It may be interval schedule or ratio schedule. Interval Schedule: Interval schedule is exercised when reinforcement is used after a passage of time. It may be fixed time or variable time. A fixed interval schedule involves a constant or fixed amount of time between two reinforcements. For example, monthly payment of salary is variable time when reinforcement time is not fixed. It is changing from person to person, place to place. Ratio Schedule: Ratio schedule is observed when reinforcement occurs after a number of occurrences of desired behaviour. It may be fixed rather or variable ratio. When reinforcement is administered after occurrence of a fixed number of desired behaviour. Variable ratio has no definite number of occurrence. It may occur at any time depending on needs of employees and organisation's policy. INTEGRATING MOTIVATION THEORIES We have analysed several theories for motivation. There is a need of integrating these. theories to understand their inter-relationships. All the theories have considered:

I

Effort

t-I--.·~I

Performance

11---II·.-jEr!8lt----t~~

Goals

I

which are influenced by several factors. The administration of reinforcement or reward increases the likelihood of behaviour of motivation. Positive reinforcement is more effective than any other reinforcement or reward.

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Motivation - Basics

Effort: Effort is the first outcome of motivation. Any motivation should lead to higher effort. The amount of energy a person exerts while performing a job is termed as effort. Motivated employee exerts some energy for performance within his capacity, ability, experience and willingness. Organisational environment also shapes the amount of effort. The search and choice of particular behaviour is also an, influencing factor. Need deficiencies become drive to exert effort. Expectancy theory expects the employee's effort. Individual Characteristics and Capacities

Organisation

H

ExperiencelLearning Reinforcementf Achiever

~

Effort.l

I Performance I

1

Variables Job Design Leaderships Rewards

Search and Choice decision

Need Deficiencies Drives

ERG Theory Equity Theory

~

I Rewards II I

'I Goals I

i Positive, Negative, Performance

Equity perceptions

Feedback Fig.7.8 Integrating Theories of Motivation

Performance: Performance is the outcome of effort. It is influenced by the individual ability of the employees and reward expectation. Performance is governed by search and choice decisions. The equity theory is influencing point of performance. Reinforcement, learning and experience have great role to shape the performance. Rewards: Reward depends on performance and organisational policies. Goal: The goal of motivation is to provide satisfaction to employees and achieve organisational objectives. Feedback helps understand the reward and goal achievement. Equity and ERG are used to provide feedback to employees to exert more or less effort. ~ Expectancy theory is applicable to shape the Effort-Performance-Reward-Goal relationship. Employees exert high effort if they perceive and anticipate strong relationship between effort and performance, performance and rewards, rewards and satisfaction of personal and organisational goals. The employees must have requisite ability to perform as desired by them. The performance appraisal system should be fair and correct. The performance-reward relationship is better if the reward is purely based on performance and not other factors such as experience or personal bias. Cognitive evaluation theory is valid if performance is rewarding. The reward-goal relationship should strengthened for effective motivation. Existence, Relatedness and Growth (ERG theory) is applicable for motivating employees. If reward is adequate and growth oriented, employees would exert hard, perform better for achieving

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excellence and growth through relatedness consideration. The reward received should be in consonance with the needs of the employees. Equity theory is applicable to influence the performance. Achiever believes in performance for getting satisfaction. Needs for Achievement (N Ach); Needs for Power (N Pow) and Needs for Affiliation (N Ail) are influencing the effort. Consequently performance is improved to award the employees. The role of an organisation in integrating motivation theories has been very vital for incorporating different theories in motivation framework. Assigning more autonomy and responsibility provides favourable conditions for motivational development. Organisational climate makes the motivational theories more effective. Manager's role, attitude, size, shape and credibility of organisation influence the motivation process. Integrating theories have become most effective motivation technique which is applied as per individual characteristics, organisational variables, search and choice behaviour and relevant theories of motivation.

000

Chapter 8

MOTIVATION - APPLICATION 1. 2. 3. 4.

ECONOMIC CONSIDERATION MANAGEMENT BY OBJECTIVES EMPLOYEE INVOLVEMENT PROGRAMMES PERFORMANCE APPRAISAL

Motivation theories are applied in different organisations differently. As discussed in Chapter 7, integrating theories have incorporated all the theories for managing an organisation. Many theories are theoretically sound and practically non-feasible. It becomes essential to evaluate the feasibility of these theories. For example, many authors have pointed out that money is not important factors of motivation. Researches and practical observations have revealed that economic considerations have been accepted as prime movers of motivation. In the age of economic well-being; social and esteem considerations are attached with the economic development of people. Cost-reward comparisons, monetary rewards and other considerations have been recognised as highly motivating points. Motivation theories which are commonly used in business and industrial organisations are economic considerations, management by objectives, employee involvement programmes and performance appraisal. ECONOMIC CONSIDERATIONS Economic considerations are accepted as social values. Money has become social status. People earn, save and spend it conspicuously. Position, power and prestige are associated with money. Persons having money and wealth are enjoying high social status and recognition. The comparative status is observed with the amount of money the person possesses. Being a status symbol, one's status, is relatively judged by the money possessed, spent and increased. An employee having higher salary, possessing luxurious cars, bungalow and other amenities is more happy as he is seeing other employees possessing lesser money and wealth. Economic incentive is used to induce individual, groups and organisations for better performance. It is used to recruit and retain good employees, stimulate desirable role behaviour, encourage the development of valued skills and enhance outcome of the organisation. Variable pay programme is used for motivating employees.

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Variable pay Programme and Complete Pay Programme Variable pay programme refers to a system ofpayment of some portion of total remuneration on the basis of individual's performance. Payment of salary on time basis will be complete pay programme when other incentive wage systems are included to get total wage payment. Complete pay programme is also essential to retain, experienced and skilled employees although they may not be given incentive wages. Variable pay programme is considered effective as it is contingent upon the performance. The reward is not fixed under Variable Pay Programme (VPP) because once it is made permanent and regular, incentives to perform better cease to exist. The pay fluctuates up and down with the performance to make people feel award of additional contributions and punishment for poor performances. Payment is recognisation of contribution rather than a form of entitlement Under variable pay programme, payment is linked with performance. It commensurates with employee's contribution. Low contributors get less payment or stagnated. High performers get higher rate of payment. Variable pay programme is compatible with expectancy theory as it predicts higher salary with high performance. Employees are motivated if they perceive strong relationship between their performance and reward. On the reverse, if reward is not linked with non-performance, it would reduce effort and performance. The organisational incentives reinforce and encourage employees to perform better. They supplement personal goals. Traditional time wage system has not been motivating. Researches have revealed that if employees are given pay commensurate with the performance, ifthey are given opportunities to share in the rights and rewards; they would contribute their might in the development of the organisation. The profit sharing, risk sharing, flexible benefits would continue to motivate people. Variable pay programme includes piece rate, wage incentives, profit sharing, gain sharing, skills based pay and flexible benefits.

PIECE RATE PAY PLANS Piece rate payment is based on the actual performance. The wage is linked with the production. It is wage per piece or unit of production. For example, if wage rate is Rs. 10 per unit produced, the employee will get Rs. 100 per day ifhe has produced 10 units in a day. The volume of wage increases as per increase in number of units produced. Employee gets no base salary as he is paid only for his production. Piece rate is used in case of selling. Sometimes, bonus at higher rate is paid for producing or selling produces more than maximum limit. A manager gets salary and bonus based on the performances of employees working under him. Recently, many Indian organisations have started paying wages and salaries with the combination of time and piece rate. A minimum salary is paid to all the employees irrespective of their outcome along with the wages earned above the minimum production at a certain rate of unit produced or sold. Piece rate pay provides direct connection between performance and reward. Employees producing more units are awarded more wages and salary. It is an incentive to perform better. The quality may not improve as employees are interested in quantity only. A minimum salary is assured to provide employees" satisfaction and maintain quality irrespective of quantities produced. Quantity-quality measure is used to ensure high quality along with more output. Many enterprises are rigorous to wage payment as they award wages only when a minimum quality is maintained. Linking wages with cost efficiency is a good proposition but practically difficult outcome. However, many organisations have started awarding employees if they incur less cost of production and sale.

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163

The expectancy theory is fully applicable in piece rate pay plans as the effort-performancereward relationships are highly feasible as per expectation of the employees. Valence is reward related effort is strengthened - Expectancy i.e. effort-performance relationship is high. Instrumentality viz., Performance-reward connection is firmly tied. Thus, valence x expectancy x instrumentality =motivation is certainly very high. The belief of instrumentality i. e., reward will automatically follow the performance. Valence of money motivates employees for higher work. The input-output valence puts many employees equitably. Employees having inequity or less wages will try hard to put themselves equitable to others. Equity theory is applicable as behaviour modification. Desirable consequence of more pay reinforce them for better performance. Undesirable behaviour is prevented on equity ground as no one likes to be blamed as less performer. Goal setting theory is also applicable as employees set achievable goals to be attained within a specified period: objectives tend to achieve higher performance. The limitation ofthe piece rate payment system is not accurately calculated. The favourable consequences may be accompanied with some unfavourable results. When hard work does not result in some outputs, employees are discouraged. Cost-reward analysis is not accurately calculable. Employees having reduced energy are unable to produce more and have to be satisfied with lower rewards. Economic consequences are not always effective and need additional social recognition and psychological satisfaction. However, more pay and reward have been accepted as symptoms of social achievement.

Wage Incentives More pay for more production give an incentive to employees for higher production. Normally, workers devote routine time and energy for perfomling their jobs; but, they exert hard when some incentives are given for higher production. Workers have potential to exert hard, which they do in special cases for getting extra benefits. It is different from piece rate wherein payment is linked with the production per unit. It is a routine method of payment of wages. If an employee does not perform or does not give any production, he is not paid at all. So, it becomes a routine and known matter. And employees are not thinking it exceptional. In wage incentives, the additional reward is given only to those employees who perform exceptionally high while other employees are getting nonnal wages. The instrumentality of expectancy theory is applicable as the employees have firm belief that reward will follow performance. Employees are feeling secured as all of them get base pay unlike the piece rate wherein base pay is not assured. Feeling sense of security helps emploYpfls develop themselves under wage incentives. Uncertainty of pay makes people restless and troublesome. Wage incentives provide safety and security ofjob besides giving additional wages to high performer. Low performer unlike in piece rate is not penalised in this system. All the employees get equal opportunities to get the additional benefits. Wage incentives reinforce desirable behaviour. It provides objective basis for rewards. Valence is strengthened as effort is directed as per reward expected. The strength of value motivates employees who achieve their targets and goals of organisation. Equity theory helps understand the benefits of wage incentives. Wage incentive is a complex process as evaluation of additional performance requires specialised techniques. Rate detennination may create confusion and distrees.

Profit Sharing Profit sharing is a practical motivation to monitor employees for a better performance. Organisation declares bonus on additional profitability at an agreed rate of sharing. It is because the profitability increased is not only the outcome of employees, organisational structure,

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machines, method and management also contribute to increased profitability. The additional profit so shared between employees and organisation are paid either in cash or as bonus shares. The cash bonus is immediate reward motivating employees for hard work while bonus shares are a deferred benefit. Bonus shares entitle employees to become owners of the company. Employees become partners of all the functions of the company. Responsibility, growth, attitude and mutual interest are developed if employees too become owners of the company. Employees take interest in the development ofthe organisation. Institutional spirit is developed. Employees develop high commitment for technological breakthrough and make efforts for outstanding performance. If the organisation gets success, employees are further motivated for exerting more efforts and higher performance. Profit sharing works better when there are opportunities of development. Government rules and regulations are favourable to award bonus because sometimes government has restricted the rate of bonus to curtail inflation in the economy. Organisation having immense opportunities of growth will get profit sharing, particularly bonus share as boon for development. The participative theory is correctly applicable here. Employees are developed and given opportunities of managing the organisation effectively and efficiently. Low profit is not a motivating factor because the organisation cannot distribute bonus for preserving funds for development. Profit may increase but employees' contribution may be negligible. It awards non-contributory factor. Similarly profit may not increase due to market slump although employees have worked hard. Therefore, profit sharing is not always a motivating factor. Many times, employees consider it their right to share in profit although there is low profit. It creates confusion and criticism. Inspite of the criticism, profit sharing has been a welcome step for motivating and retaining qualified employees. Many Indian business houses are experiencing satisfaction over issue of bonus shares as the organisation and employees are equally benefited and continue to get the increased rewards with strengthened efforts and performance. Gain Sharing Gain sharing is a formula based group incentive plan. Improvement in group productivity is aimed under gain sharing which is an incentive plan for allotment of total money. It is distribution of total amount of gain which may be 50:50 between employees and the company unlike profit sharing where a portion of profit is distributed amongst the employees and rest of the amount is preserved with the company. Employees under gain sharing receive the awards even though there is no profit. Gain sharing is based on productivity. Ifthere is improvement in productivity employees get the incentive award although there is no profit because profit is a result of external factors on which employees have no contro1. If employees have worked hard and additional productivity is gained, they would share the incentive. For example, if an employee has produced additional two units within the specified period, he is entitled to share on the gain (Total Reserve - Total Cost) of two units, specially in the ratio of 50:50. Gain sharing is historically based programme as it decides additional gain based on previous year's production. It is a measure of improvements and sharing the gain on specified formula. Gain sharing explores the specific areas of improvement by providing incentives at inventory level, labour hour per unit of product, usage of materials, quality of finished goods and methods of production. Management pinpoints the areas which are controllable and where improvement is possible. Gain sharing improves these areas by providing incentives to employees. For example, if the inventory management saves certain cost, the employees are awarded at the cost saving irrespective of profit.

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165

Gain sharing is instrumental for behaviour improvement. Employees are put in confidence and are told that the gains achieved will be shared in their respective areas. The valence of reward and performance is strong enough to encourage employees' behaviour for better and higher performance. It provides an incentive for co-ordination and team work. The employees' resistance to change is loosened as they find additional gains at the technological development. Gain sharing is an effective form of participation. The attitudes of employees are broadened as they find rewarding performance and developing atmosphere. The success of gain sharing depends upon possibilities of creation of standards, existence of controllable areas and receptiveness of employees' ideas. Management-employees relationship should be cordial and trustworthy for the success of gain sharing.

Skill-Based Plans Skill based plan refers to payment for knowledge and skill possessed by employees. It is totally different from profit sharing and wage incentives. Employees are paid for their skill, depth of knowledge, range of capabilities and experience based skills. For example, a university professor is getting higher pay although he is engaging lesser classes then the lecturer because former has achieved more skill, knowledge.:md experience of teaching : Employees in factories, too, are given initial start pay which incre~ses along with the knowledge. It is not automatic yearly increments which are given for working a certain period of time. Skill based pay is given only on acquiring a specified skill. If an employee acquires knowledge of computer, he is paid additionally. Many companies are awarding additional pay for getting the degrees of management. Public sector banks in India grant additional increments if the employees get banking diplomas. Fellows of actual science or of insurance institutes are given additional increments to employees of insurance although they might not directly be contributing to profits or gains. Many companies have started encouraging employees for getting technical and professional knowledge. The purpose behind skill based pay is that employees become competent to perform their duties efficiently which lead to higher profit and gain. Employees reinforce self-esteem and get satisfaction being highly skilled. Satisfied skilled employees perform better. Skilled employees use their skill in performance for getting performance satisfaction. They perceive their knowledge is being used for increasing results and reducing cost. Skill based pay is not always productive as the employees demand promotion after acquiring the skills. In absence of promotion avenues; the employees develop frustration which causes reduced productivity. Skill based pay is successful in those organisations which have work climate, trusted employees and congenial relationship between employees and management. Skill based pay should encourage employees to acquire a broader range of skills so that they can work effectively in the absence of some employees. Flexible Benefits Flexible benefits provide combinations of benefits from which the employees have to select the benefits of their respective choice. It is also called cafeteria benefit programs as employees are allowed to pick and choose benefits of their own from a menu of benefit options. The purpose is to allow each employee to choose a benefit package tailored to his own needs and requirements. It replaces traditional one benefit plan for all. Flexible benefits is the latest form of motivation which is contingent upon the needs of employees, type of work and organisational environment. Employees select their preferred combination of economic and social rewards. Employees are given adequate amount of autonomy and independence to select their fringe benefits. For example

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an employee with a large number offamily members would like monetary benefits, life insurance and expanded medical and education facilities. He is given such benefits at the additional performance. Another employee is interested in social recognition as he has already satisfied the family needs. Motivation package is open to employees who are free to select, anyone or some of them depending upon the environment. Flexible benefits meet the diverse needs of employees. Many organisations in India have started flexible benefits such as optional medical benefits, education facilities, encashment leave, travel benefits, vehicle allowances, disability benefits, pension plans and so on. These benefits are given to those who are entitled under the organisational situation. Key employees' insurance, tuition fee reimbursement, medical reimbursement etc. are the examples of flexible benefits which employees after fulfilling certain conditions enjoy them. These benefits are motivators because they are granted in only few organisations. Equity theory or inequitous status help motivate employees. Flexible benefits is deductible expenses for computation of income tax of the companies. The main defect of flexible benefits is that these are not always linked with performance and effort. An employee is getting medical, education and housing benefits although his contribution in production and profit is very small. Nevertheless, flexible benefits assure the employees' high satisfaction of being a member of a sound organisation which is providing all these benefits. MANAGEMENT BY OBJECTIVES Management by objectives refers to the set of goals that are: measurable, verifiable and tangible. Management by objectives (MBO) is used for planning, organising, actuating and controlling organisational activities. Objectives are determined after thorough analysis of internal and external environment relating to organisation. The SWOT, i. e., Strengths, Weaknesses, Opportunities and Threats analysis is used to formulate objectives. MBO was coined by Peter Drucker 45 years ago; who suggested that setting of objectives and appraIsing the results based thereon lead to improvement of performance. It is used to motivate people by providing satisfaction of achievement and rewards. The organisational objectives are translated into specific objectives of succeeding offices viz., division, branches and so on. Individual objectives are decided on the basis of the departmental objectives. Each employee's performance is compared with their respective objectives. If employees achieve the goals, they are satisfied. Moreover, they are awarded on the achievement of the objectives ifthe achievements are outstanding. The objective relation to organisation's total performance is determined through identification of various subobjectives of market, production, quality, service, employees' development and other activities. Objectives are developed in qUlmtitative terms so that they can be easily achieved and used for measurement. Employees are made aware ofMBO. They are prepared and motivated to achieve the objectives. They are developed accordingly to implement the objective plans. MBO is not fixed but it is flexible as per requirements. Individual objects are used for motivation. Superiorsubordinate relationship'is strengthened. The responsibility, power and duties are defined accordingly to achieve the objectives. The goal setting theory is fully applicable in MBO. Hard goal results in higher performance than the easy goals. MBO advocates specific goals i.e. quantifiable, measurable and having target goal. The difference between MBO and goal setting is that the former relates to participation of employees with management and the latter has subordinate's goal who are controlled by the superior to achieve the goal. In MBO, superior and subordinate jointly choose the goal to achieve by them co-operatively. Such objective has a specific time span within that the objectives are to ,be achieved with the joint efforts of subordinates

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and superiors. Objective is used as a guide to direct the functions at every stage. It is also used to provide feedback about how.the people are working. The superior and subordinate assess the reasons why objectives have not been achieved. The reasons of non-fulfilling objectives are used to make necessary changes in objectives and their performance procedures. Objectives make MBO a living system of management. MBO has become common practice in all types of organisations. Business and industrial houses as well as charitable and educational institutions have been using MBO for motivating employees. The degree of commitment to MBO decides the level of achievement. Highly committed organisation and employees get higher results because of better performances.

EMPLOYEE INVOLVEMENT PROGRAMME The employee involvement programme is participation of employees in the management functions. Employees and management mutually perform the activities. Employee involvement programme has other programmes than the participative management. For example, participative performance relationship representative participation and so on. Employee involvement aims to utilise the maximum capacity of employees by mutually encouraging them. Involving employees at decisions making level, giving them more autonomy and control and encouraging them for better performance help utilise the entire capacities of employees. It makes employees committed to the organisation and help them to be more productive. The employeeinvolvement programme includes participative management, representative participation, quality circle and employee stock ownership plans. The motivation theories such as hygiene theory, ERG theory, equity theory and reinforcement theory are applicable under employee's involvement programme.

Participative Management Participative management refers to sharing of declsi:m-making power by the employees with the immediate superior. The main theme of participative management is the employeesmanagement decision-making body. Since management has different ladder, the immediate superior and his subordinates relationship is strengthened at the decision-making platform. The participative management may take different forms in different organisations. The essential of participative management is that employees' interests are served. Their involvement is encouraged to develop work culture. The participative functions are also helpful to management because a manager cannot be fully aware of the technicalities of each and every function. The employees' activities are known by management in the round table discussions. Management can understood the problems of employees only at the latter place. Employees have to consult other employees for decision purposes. Participative management provides an opportunity of commitment development. It gives intensive rewards to employees as they have developed interesting and meaningful job satisfaction. Representative Participation Representative participation is practiced where all the employees cannot participate in the decision-making process. A small group of employees are given the power of participating in the management, who represent all the employees. Some selected employees participate in the management practices, who are specially qualified for the purpose. They know all the problems of employees as well as the technical problems of organisation. Groups of employees are given some specific name such as works council, work committees and so on. They are necessarily consulted by the management. The elected or nominated members of the work council

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are fully aware of their problems. In some organisations, these committees are only informed about the decisions. They are given due regards in other organisations while decision-making process is going on. Many organisations in India have developed a very effective form of representative participation wherein they are asked to sit with the board of directors for making some decisions of the organisation. They are well known as board representatives, shareholders' representative and employees' representative as well as government nominees are given due regard in board meeting. Inspite of best efforts, participating representatives are unable to perform the motivational activities. These employees may get the feeling of recognition while other employees are not recognised in management. Motivation is least possible in representative participation.

Quality Circle Quality circle is the group of employees who, discusses their quality problems, cost-control and problem-solution propositions. It includes employees as well as supervisor. The solution;;; are studied and analysed to make them more effective. Employees seek feedback from the persons concerned about the quality and its acceptability. It is research like technique to understand the problem, problem formulation, diagnose the problem, collecting information and data. analysis and interpretation, finding the solutions and reviewing the solution before implementation. The impact of solutions on the quality control is reviewed from time to time. The employees suggest whether the productivity can increase at the given quality standard. Quality circle is formed in big organisations in India wherein expert engineers have been assigned the jobs of deciding a particular level of quality. Quality management has become specialised jobs these days in India. It is spreading to new firms also. Employees' Ownership Employees are allotted shares in lieu of cash bonus in many industrial houses. The employees' ownership plan is company benefit plans. The employees get ownership and right to appoint their directors. The sense ofbelongingness is developed. They have job satisfaction and work motivation. Employees are made to realise that they are owners of the company. Many business houses in India have started issuing bonus shares to their employees who are given the authority and power of a shareholder. The confidence and credibility of employees have increased. They feel proud of being associated with the company. Organisational image, employees' satisfaction and performance have increased on account of employees' ownership programme. Performance Appraisal Performance appraisal is an important tool for rewarding awards. It has become common practice to use performance appraisal to maintain fair relationship, develop employees and accept feedback from employees. It helps understand the employees' merits and deficiencies as well as the present performance and formulation of future objectives. Mutual goal setting is feasible with performance appraisal. It provides an opportunity to perform worthwhile task. Employees are motivated to achieve mutually set goals. Employees accept the appraisal results as they are aware of the goals and performance. Their productivity, capacities, attendance and initiatives, attitudes and behaviours are assessed by the supervisor. There are several techniques of appraisal of performance. The results of appraisal are informed to the employees for their improvements, rewards and motivation. The accumulatec. performance appraisal of each employee decides his performance standard Similarly average performance standards of all

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the employees for last five years is considered the performance standards of the company which is used for motivating employees who perform better than the performance standard. This standard can be used to compare other organisation's standard. Employees' actions and reactions to the appraisal systems and appraisal outcomes are invited to provide them adequate opportunities for motivation and development. Self-appraisal techniques are encouraged for employees' motivation. and avoidance of distrust between appraiser and the appraised. Self appraisal has poor outcomes because people attribute their deficiencies to situational factors. The strengths and weaknesses of employees are told to them to be realised for development. The performance appraisal is not free from defects. It has deficiencies of confrontational, emotional, judgmental complex and inaccuracies in some situations. Employees generally do not agree with the performance appraisal of their supervisor. It creates confusion and conflict between them. Emotional attitudes are attached with the performance appraisal as managers . are generally critical and employees are face savers. Nobody wants to accept his fault. So, the judgmental aspect is not very effective. Non-performance is attributed to employees while the real cause of deficiencies may be non-availability of materials, methods and machines. Biased attitudes of employees retard the real appraisal process as supervisor or manager considers himself as fortune maker of the employees. The attitude creates several problems in performance appraisal. Moreover, appraisal system is not simple. It is full of complexities. Many difficulties crop up while appraising the performances. Ifboth the persons viz., superior and subordinate are rational and unbiased; the appraisal has positive effect. The success of performance appraisal depends on the employees' abilities, interest and motivation. Greater participation is feasible if the employees are educated and knowledgeable. Manager should exercise his power of appraisal with great care so that mutual trust and confidence is not distorted. The management has to disclose the purpose of performance appraisal, judgement-based rating techniques, procedurebased job behaviours and assessment centres to the employees for the effective use ofperformance appraisal. Purpose of Performance Appraisal Employees are usually scared of the purpose of appraisal as they view it as an instrument of transfers , promotion and layoffs. So, the performance appraisal is looked upon as dangerous tool to punish employees. But, modern management has avoided all these confusions by specifically disclosing the purposes of performance appraisal which are motivation, reward and developing inter and intra relationship for better performance and employees' satisfaction. The measurement is used for objective achievement, result orientation and conducive behaviours. It is used as standard for future performance and reward purposes. Performance appraisal is for development of technical, professional and managerial capabilities. It is used as a part of MBO, formulating performance-standards and employees' suggestions. It increases the personal qualities, initiatives, adaptabilities and communication skills of employees. Judgement Techniques Explaining the purpose of perfornlance appraisal creates mutual confidence and tru~t between employees and management. The judgemental technique is used to measure the performance on employees' personal traits which are drives, initiatives, quality of work, attitudes and job knowledge. The judgement technique assumes that there is no leniency or strictness. The average performance is used as standard to measure the achievement of employees. The halo effect stereotyping and generalised measurements are avoided to make judgement technique more effective The primacy and recency error should be avoided to have correct assessment.

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Primacy error is based on previous rating and recency error is based on recent performance. The supervisor must be intelligent, knowledgeable, unbiased and have correct approach to assessment. The judgement techniques include multirating and not single rating. Critical incident method is used to assess employees without any bias.

Job Behaviour Behaviour oriented appraisal is more recent in origin than the traditional judgement procedures. Behaviour expectancy scales were used to measure behaviour of the employees. Recently behaviourally anchored rating scales (BARS) is becoming more common to appraise the behaviour of employees. It is specific measurement of ajob specialities' behaviour. It is aimed at measurement of job performance along with job, traits. BARS includes identification of performance measures and critical behaviours, retranslation of critical behaviour and development of measurement scales. The performance dimensions are explored by the expert people of the areas. The critical behaviour required for job dimensions are explored by different people; which are used for scaling the behaviour of employees.

Assessment Centres Assessment centres are those techniques of performance appraisal which place importance on specific and multiple techniques. It has specific dimensions, attributes, characteristics, qualities and relevant job behaviour. It uses panel interviews, group discussions, role playing, case analysis and presentations. It helps employees' development and career planning.

Chapter 9

GROUP BEHAVIOUR - FOUNDATIONS 1. 2. 3. 4. 5.

NATURE OF GROUP GROUP FORMATION GROUP DEVELOPMENT STAGES TYPES OF GROUPS FOUNDATIONS OF GROUP BEHAVIOUR

Group has syntality which is developed in an organisation to have group synergy. The foundations of group have interesting history. Group is defined as two or more individuals, interacting and interdependent who have come together to achieve particular objectives. 1 Group is formed to achieve certain objectives. The group members must be interacting and interdependent. An individual is unable to perform all the activities. Group formation has become inevitable to achieve organisational objectives. Groups may be found and accepted by the organisation. It may also be informal which is not recognised but functioning in the organisation. Sometimes, informal groups are more effective in organisation. Group dynamics are essentially used to increase productivity and profitability of an organisation. The group behaviour is different from individual behaviours. The group behaviour helps achieve higher productivity than the sum of individual performance because of group personality which is known as syntality. Groups have separate identity. They are given more importance in organisation behaviour because groups' personality, syntality, has synergy i.e. more outcome than that of sum of individual member's outcome, group thinks, decides, sets goals and tries to act upon to achieve the group goals. Group behaviour has three dimensional studies viz., basis offoundation of group, intragroup behaviour and inter-group behaviour. Foundation of group behaviour is discussed in this chapter and intra-group behaviour and intergroup behaviour will be discussed in subsequent chapters. Foundations of group behaviour have been analysed under group foundation, stages of group development, types of groups and foundations of group behaviour ..

GROUP FORMATION Group foundation has certain objectives. The purpose behind group formation may be task achievement, problem-solving, proximity and socio-psychological objectives. Group formation is based on activities, interactions and sentiments. 1. Robbins, S.P.: Organisational Behaviour, Prentice Hall of India, p. 294.

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Task Accomplishment: The basic purpose of group formation is achievement of certain objectives through task performance. Individuals come closer to understand the task and decide some procedures of performance. In any organisation, task ~ccomplishment is the main function for which different groups such as engineering group, marketing group, foreman's group and personnel group are formed for achievement of organisational goal. When organisation faces some procedural difficulties, concerned groups discuss them and evolve new techniques of production, marketing and other functions. Problem Solving: When people foresee or face certain problems; they unite together to solve the problems. Unity has strength. Group provides strength to members who are willing to challenge any problem. Group behaviour gives more strength to come down heavily on problems. Proximity: People form group because ofproxiinity and attraction with each other. Group formation, theory is based on proximity which means that individuals affiliate because of spatial or geographical proximity. They interact frequently with each other on many topics, because . this interactive communication is rewarding. Socio-Psychological Factors: Sentiments and action with uniformities bring people closer. They also form group for getting safety, security and social achievements. People cooperate with members of the group on social as well as economic functions to reach satisfaction level. People form groups basically for activities, interactions and sentiments. People living in proximity frequently discuss their problems. They try to reduce their tension and achieve satisfaction. Individuals interact only when they are having common attitudes and sentiments. Diverse attitudes form group under certain compulsion to meet unexpected problems. Employees form unions to get safety and security of jobs. Outside factory, they form group for religious, social, cultural and political activities.

Group Development Stages Group development has been studied to find out the purposes behind the development. Different groups require different length of time for development. The development structure is heavily influenced by the nature of group. The stages of group development are forming, storming, norming, performing and adjourning. All tlie groups may not be accepting the same order of group development. The first stage is forming wherein the group decides its own purpose, structure and leadership. Members decide what types of behaviour are acceptable. The membership is increased till the group is finally established. Individuals are brought together, first time. Communication pattern is developed. Interdependence of members are decided with the structure and goals of group. They decide plans of future actions involving discussion on formulation of group goals and evaluating the resources for achieving the goals. The second stage of group development is storming wherein members storm their views. They put their views forcibly with strength. It evidences the interpersonal conflict. Many problems are brought to the group for discussion and solutions. Many conflicting views are expressed. Authorities and supervisors are, many times, criticised for their statement. However, in educated groups people consider the views of others with patience. They arrive at unanimous decisions with constructive attitudes. Group develops syntality and gets synergy if the storming stage is actively smoothened. On the contrary, the group will not advance if the members continue storming and conflicting with each other.

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The third stage of group development is norming wherein members develop close relationship and demonstrate cohesiveness. Members enjoy the group and develop synergy. The strong sense of group identity and camaraderie is developed. Group structure is solidified and interpersonal relationship is developed with increased cohesiveness and sharing of ideas. It increases members' pOj:;itive behaviour and strong feelings of development. The jiwrth stage is performing stage. Th~ group performs its functions to achieve the objectives. It is fully functional and operational. This stage is directed to the accomplishment of group goals. It explores the action and decides innovation. Satisfactory performances and achievement of group goals are observed under this stage. The fifth stage is adjourning stage of developmerit when group ·is dissolved. The adjournment stage is generally after completing the task although the group may be adjourned even before completing the task due to misunderstanding and storming. The mutual friendship is lost, depression is observed and group is wrapped up with an end to its activities. In such types of adjournment, leaders have a great role for the continuation and adjournment of the group. Dynamic leaders always try to review and strengthen the group activities for the development of their people. The group development stages are recycled for achieving fresh objectives. Change in leadership, membership drive, physical location and revitalising the task recycle the group development stage from adjourning to forming, storming, norming, performing and adjourning. Management tries to find out which stage the group is passing through and who is the leader for effective control and guidance to the group. For example, if the group is passing through storming stage, the management cannot entrust the group with the responsibilities because the conflicting members cannot perform better. It has been revealed by researches that stormillg stage may not be disturbing always. In some cases, it becomes essential to arrive at common solutions.

TYPES OF GROUPS Groups are classified from various angles. The purpose of classification of group is to understand their nature and function for effective management. Groups in this section are divided from place of existence and development stand point. Groups based on place of Existence Groups can be divided from existence point of view. A group may be existing at work place. Other groups is at living place. They have their respective importance. Groups of family, functional and interest are discussed as per their existence. Family Groups: Family group has dominant impact on organisational behaviour. The composition and quality of family members decide the behavioural pattern. Educated family members are more responsible and respectful to the organisation. On the contrary illiterate members have no behavioural culture to practice in organisation. Family group is natural and informal. It has long lasting impact on organisation behaviour. Friendship Groups: Friendship group has informal impact. Friends oflike minded gather together, enjoy and communicate together. If they are motivated with their attitudes and sentiments; they would perform better in organisation. Understanding of friendship group becomes essential for effective motivation. Many problems are solved at friendship level. Functional Groups: Functional groups exist as per the nature of operation and function of the organisation. This type of group is outcome of specialities of structure and its functions. The

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relationship between supervisor and subordinates is strengthened under this group. The functional group consisting of superior and subordinates, supervisors and superiors and subordinates and subordinates have become common in industrial organisation. Their mutual understanding and relationship are deciding factors of behaviour. The basic definition of group i.e. interaction and interdependence of members are literally observed in functional group. Task Groups: Task groups of project groups represent those members of group who work together to complete ajob task. Task group unlike functional group is not confined only to superior and subordinates, but extends beyond this to include higher command authority. The group is formed not between two cadres but includes all the cadres which are associated with the task performance. It is known as project group because all the employees concerning the accomplishment and completion of project are brought together. In a factory the production manager, maintenance manager, safety engineer, supervisor and workers are brought closer to complete construction of plant. Task or project group is formal organisation to achieve a particular objective. When the objects are achieved, the task group is dissolved. Interest Groups: People having common interest form a group to serve their interests. The trade unions, labour groups and managers' club are the examples of interest groups. Ifinterest of any member of the group is damaged all the members resort to pressure tactics to fulfil his interest. For example, if any employee is punished, other employees go on strike to revoke the punishment of the employees. They may also pressurise the management for common interest to be served. Many employees' organisation resort to strike to have higher pay, healthy working conditions and other benefits. These groups adopt ethical or non-ethical, legal or illegal practices to pressurise the management. Many organisations are facing problems oflabour interest. The interest groups may be formal or informal depending upon the nature of interest. Multiple unions are observed in Indian industries which have created obstacles in development at many occasions. Management has to be very cautious about interests of such groups to avoid any rifts, confusion and conflicts. In society too, interest groups are found for political, social, cultural and religious purposes.

Groups based on Formation and Development People form groups on the basis of affiliation and attraction between them. The groups may be small or large depending upon the reasons of formation and development. They may be primary and secondary groups, membership and reference groups, in and out groups, and formal and informal groups. Primary and Secondary Groups: Primary groups are formed on the basis of social characteristics and individual perception. Each person is able to communicate with others. Primary group is natural and has feeling of comradeship, friendship and loyalty. The best example of primary group is family. Initially, primary group was confined to social group, later on it extended to business and industrial organisations. Employees combine together to arrive at a common platform for mutually achieving the objectives of organisation. Functional and task groups have been developed on the principles of primary groups. Secondary groups are found arid developed with the formal structure wherein one is leader and others are followers. Committees, trade unions and other such groups come under secondary group. Secondary group develops on the basis of exchange theory. It assumes certain benefits to members unlike primary group where benefits are not primary objectives. Members under secondary group join to satisfy their socio-economic needs.

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Membership and Reference Groups: Membership groups actually assume membership of the group to which the members belong. This type of group is formal group. It necessitates following of certain rules and regulations of registration, collecting fees from members and formulating charter of demands. It has formal structure which specifies roles and expected behaviour. The functions of leader and followers are well defined. Reference group is non-existent and informal. Employees try to be associated with this group. They are not attached with the group. For example, non-member employees of a trade union identify themselves as part of the trade union. In and outgroups: In groups are associations of similar minded employees. They have dominant place in the society. In groups perform many social functions. They are highly cohesive groups and can contribute maximum in the development. They can go against the organisation too when they become negative. Out groups are association of dis ~imilar employees. They are looked upon as subordinates or lower cadre employees having lowe~' values in the society. They are low cohesive groups. Formal Groups: Formal groups have formal structure and designated work assignment Behaviour for employees are stipulated and directed towards goals. Formal groups have designated formal organisational structure, expected roles and behaviour. The jobs of superior and subordinates are well defined. The purpose and work flow are noted. Formal structure has formal fUllctions and objectives. The group activities are led by some leaders. The activities of group are guided by the leader and members. Educated members have constructive role to play in achievement of the group goals. Trade unions, committee management and other recognised associations of employees are the real examples of formal groups. Trade unions in India have played not very constructive role in the socio-economic development. Recently, the unions have realised their responsibilities and try to develop their organisations. Committee is more a useful formal group. The role of a committee is increasing in an organisation. It has been considered one ofthe important forms of organisational set-up as has been discussed in the first chapter. It is used for discussing focal point, different viewpoints and information. The members of committees depends on the nature and size of the organisation. The significant viewpoints are exchanged to arrive at more useful decisions. On the contrary, no officer or authority is blamed for unpleasant and strong decisions because committee's decisions are not personal decisions. They are overall views of the committee. Committees are given specified duties and authorities. Task force and functional groups are operational in management. Specialised jobs are assigned to expert committees for suggestions. Many organisations have formed permanent committees for separate functions. They are known as plural executive committees. In this case, decision is taken by more than a single executive. The committees may consist of similar cadre of employees or superior and subordinates as the need may be in the organisation. Informal Groups: Informal groups are association of people who are neither formally structured nor organisationally determined. These groups are natural formations. It has no formal recognition and designated work. Informal groups are not formal groups which have formal structure and organisation. Formal groups prescribe goals and relationship whereas informal group do not have such prescription. Formal and informal groups coexist in many organisations. Informal groups have several status such as groups with leaders, primary group member status, fringe status and out status. They have their specific role to play in organisation. Informal

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groups have some norms which are followed by the members. These norms become traditions of the group during a period of time. They have specific role in socio-economic development of people. Informal groups have been developed in Indian organisations for getting social satisfaction. For example, informal groups of members of a distinct state, caste and creed have been formed to meet their mutual, social and cultural problems. They have been formed to celebrate social, religious and cultural functions. lpformal groups have considered functional and dysfunctional aspects of organisation. Many organisations find informal groups highly constructive and useful. Informal groups are encouraged in all types of organisations.

Foundations of Group Group behaviour depends on multiple factors which may be organisational conditions, group member resources, group structure, group process, group tasks, group decision making, group cohesiveness and group thinking. As a result of combinations of different factors, the performance of organisation and satisfaction of employees are influenced. Many groups are successful while others are unable to achieve the objectives because of the varying foundations of the groups. Study of foundations of group reveals the variables and their interrelationships in group behaviours to influence the performance and satisfaction. ~

I Organisational Conditions

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Group Member

Group Structure

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Group Decision Making Technique

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Group Process

Group Task

Group Cohesiveness

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Performance and Satisfaction

Group Thinks

Fig. 9.1 Foundations of Group

Organisational Conditions Groups are working in society which is composed of multiple and diverse factors. Many factors are allied to organisation and others are alien to it. Group behaviour is greatly influenced by the conditions of the organisation within which the groups are performing. The organisational conditions include organisational strategy, authority, structure, formal regulations, organisational resources, personnel selection process, physical work setting, organisational culture, performance evaluation and reward system, social and economic conditions of the country. Organisation Strategy: Organisational behaviour depends mainly on the organisation's strategy. Ifthe organisation's strategy is to help supervisor at all the fronts; the employees will be directed towards that. Similarly, the behaviour of employees are directed to reduce cost, improve quality, expand market, shrink the size and so on. The strategy of organisation influences the power of various groups. The willingness oftop management to allocate resources influence the various activities of the organisation and behaviour of the employees are influenced accordingly.

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Authority Structures The authority structure influences the behaviour of cadre: Authority structure stipulates power and authority to different cadres of span of management. The hierarchical relationship is developed to exercise their respective power and authority. Higher authority has more power and lower authority is vested with smaller power. The nature of authority structure influences the employees' behaviour. Regulations The rules and regulations developed for directing employees' behaviour have been accepted as the guiding factors of behaviour. Policies, procedures and programmes are designed to motivate employees. Formal regulations have resulted in standardised behaviour. Informal rules create confusions and contradiction. Resources Resources of organisation are used for achieving organisational goals. Many times, employees feel frustration because of non-availability of adequate and proper resources. High quality raw materials, tools and techniques make employees interested in work performance. Employees feel satisfied if they are given quality of raw materials for getting quality products. Similarly absence or inadequate supply of raw materials, machines and money discourages the employees' performance. Selection Process: Merited employees are work oriented. Employees getting appointment or promotion through canvassing are giving more importance to political considerations. They are not interested in the organisation's development. The selection process should be judicious and proper for getting desired behaviour from the employees. Physical Work Setting The work structure has important bearings on behaviour. The arrangement of work, machine, equipment and size are specially considered under work setting. If raw material is placed very far off from the production site, employees get opportunities to waste time. If supervisor asks them to work properly, they blame the arrangement of raw materials and inadequacy or shortage of raw materials. Work setting becomes a barrier as well as an opportunity for work behaviour. Organisational Culture The work culture has work behaviour. Indifferent attitude of management creates indifferent behaviour. Every organisation has its own culture. Employees behave as per the existing culture of the organisation. The importance of honesty and integrity is realised in big organisations. The values and traditions are practised for maintaining positive behaviour. Management has great role to play in inculcating the organisational culture. Performance Evaluation and Reward The systems of performance evaluation and reward have great impact on the employees' 'behaviour. Equitable distribution of rewards makes employees satisfied and encouraged. When employees are appreciated for their additional performance, they are highly motivated to demonstrate their capacities and capabilities. On the contrary, partial rewards make employees discouraged. They may resort to unethical practices. Frustration stunts the development of an organisation. Behaviours of individuals and groups are channelised through the manner of performance evaluation and reward.

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Social and Economic Conditions The organisation is influenced by the social and economic conditions. In a developing economy, transitional upheavals are witnessed causing behavioural instability. Developed economy has set up of stabilised behaviour. They are predictable and preventible. Indian economy is undergoing social and economic changes. The country is facing diverse behaviour. Some people are highly ethical and honesty prone while others are purely materialistic. Many honest employees face recognition problems. Dishonest and flatterers are getting rewards which create imbalances in the employees' minds. The social and economic conditions influence the workings of organisations. GROUP MEMBER'S RESOURCES The members of a group have potential behaviour. Individual's qualities, abilities, characteristics and expectations have great influence on group behaviour.

Qualities Individual qualities have strong influence on the interacting behaviour with group members. Qualities and traits of an individual decide his way of behaviour. Democratic, defensive and submissive attitudes have positive impacts on the group behaviour. Similarly authoritarian, offensive and irritative outlooks create distrust in the members of group. Extrovertion and dominance have unhealthy impact on group behaviour. Self reliance, introspection, sociability and helping attributes of employees create congenial atmosphere in the organisation. Abilities The expressed capacity is ability. A talented employee demonstrates high performing abilities. Trained, experienced and highly motivated employees can perform better because they develop high abilities of task performance. Abilities indicate what the individual is able to do and how well he can interact with group members. The relationship between abilities and performance has been positive. Employees having more abilities perform the task in a better manner. They behave nicely with the group and contribute significantly for the development of the organisation. If the abilities of the employees are accepted, they contribute more happily towards the organisational goals. Task related and personality related abilities have shown positive contributions in group behaviour. Personal Characteristics Personal characteristics such as age, sex, physical features, personality appearances and mental aptitude have certain tentative impacts on group behaviour and performance. An aged person is more competent in group interaction than the persons of young age. A pleasing atmosphere with pleasing faces make an impact on group behaviour. Mentality and spirituality have certain impacts on group behaviour. The combined impacts of personal characertistics have been positive although the impact of single characteristic is not accurately measurable. Positive attitudes have positive impacts on group performances. Expectations Employees' expectations have been controlling factors of behaviour. High hopes lead to poor performances as high hopes are not fulfilled by management. Similarly if the employees' expectations are fulfilled, they get more satisfaction. Expectation of employees influences interpersonal relationship, reward and performances. U:.satisfied expectations or ambiguous expectations cause frustration, disappointment and low turnover. Proper guidances, autonomy

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and feedback lead to proper behaviour. Employees' expectations should not only be linked with performance but with following of standard rules, procedures and policies also. It is expected that the employees would follow the organisational policies and practices.

Group Structure Group structure, that is, framework of group has greater influences on the behaviour and interaction of members of a group. The group structure as its outer framework and inner relationship are guiding and controlling factors of behaviour. Group structure has different variables such as interpersonal relationship, roles played, norms, group status, group size, social density. Interpersonal Relationship Every group has a leader whose tasks are to guide and control group activities. The nature of the group leader and the formal relationship between leader and the subordinates determine the group behaviour. A sober and serious leader develops congenial atmosphere. The formal relationships between subordinates and the superior are strengthened. This relationship plays a crucial role in the organisational performance and behaviour. The success of group members' resources depends on the framework of group structure. The interpersonal relationship influences interaction, expectation and performance of the group. A particular structure helps or inhibits the interaction of members. Reinforcement is extended for getting proper behaviour and better performances. Expectation is shaped and moulded with interpersonal relationship. Group structure develops a particular pattern of behaviour and interaction of group members. Status, norms and roles are designed as per the forms of group structure. Many mediating variables such as formal structure and role structure have great impact on group members' interaction and performance. Roles All the employees and group members play their respective roles as per their position. They not only behave but expect specific behaviour from others. Individuals in the group are assigned certain jobs, position and title. It is expected from them to perform certain roles. Perceived role is expected role in practice by an individual himself. Perceived role may be inaccurate. Enacted role is the actual behaviour. The expected role is not perceived role because of role ambiguity, lack of clarity and uncertainty. Role conflict differentiates created roles from perceived roles. Job duties, authority and responsibility are role factors to influence behaviour. Distorted role behaviour is observed as the expected role, perceived role and enacted role are differently understood in reality although theoretically they tend to equate. Expected role is not properly perceived due to role ambiguity that is tlie lack of clarity regarding job dutiE's, authority and responsibility. Role ambiguity is also caused by different factors. It is observed by a lack of clear job description. Individual employer may swim or sink on their enacted role as different from expected role. The role behaviour at every span of management should be well defined, described and depended. Occupational level, individual characteristics and functional features create role ambiguity because of their differences. Employees may be required, sometimes to perform a diverse role than expected. Many organisations have multiple role performing jobs. To understand role behaviour it is essential to note role identity, role perception, role expectation, role enacted, role ambiguity and role conflict.

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Role Identity: The behaviour and attitude attached with the role is known as role identity. People's behaviour is predicted as per their roles. The situation that demands a particular behaviour is related with the role identity. The position has its role behaviour. For example, an employee if promoted to managerial cadre will have pro-organisation attitude whereas he was pro-union when he was an employee. Role identity is understood with the socio-economic conditions prevailing in and outside the organisation. Role Perception: Role perception is a set of activities or behaviour in the group that an individual is supposed to perform. It is supposed role to be performed in a given situation. Perception of an employee toward the jobs is influenced by different factors such as atmosphere, environment, socio-cultural situations and other stimuli. Since people have different stimuli; perception differs from person to person. Role perception is therefore an individual's view of how he supposes to perform the job in the given situation. It is more psychological than real. Role Expectations: Role expectation is the expected behaviour by others from the employees. How others believe an employee should perform the job in a given situation .is role expectation. On the contrary, role perception is the behaviour the employee himself supposes to do. So, perception is attached with employees' own supposition and understanding. It is his own belief toward the role behaviour. Expectation is how others believe that the employee would perform. Role perception and role expectation may be the same when others' beliefs are the same as the employees' belief is. It is role phenomena. In practice, there are differences between role perception and role expectation because of different attitudes of employees' own and other's attitude towards employees' behaviour. What management expects from employees and what employees expect from management are role expectations. Similarly what management expects from itself and what employees expect from themselves are role perception. Role Ambiguity

Role Expectation

Role Conflict

Role Perception

Fig. 9.2 Role Behaviour

Role Enacted: The role enacted are the actual behaviours performed by individuals and group members. The enacted role depends on the perceived and expected role. These roles are never equated but are tend to be equated. If there is no difference amongst the expected role, perceived role and enacted role; the organisation will be free from role ambiguity and role conflict. There will not be any problems regarding duties, responsibilities, uncertainty and dissatisfactions. There will not be any deviation, stress, tension and anxiety. There are rare possibilities of equating these roles. Organisation desires to have equality ofthese roles for better performance. Role Ambiguity: The differences between expected role and perceived role create role ambiguity. Employees do not perceive what others are expected to perform. The role ambiguity occurs due to lack of clarity regarding job duties, job descriptions and job designs. The individual has to perform his duties as expected, discharge his expected responsibilities and use the authority as required by the organisation.

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Role Conflict: The differences between perceived role and enacted role create role conflict. When individual's perception is influenced by multiple demands and directions from one or more supervisors, employees face uncertainty. Uriity of command and direction avoids role conflict but this is a rare phenomenon as in practice employees receive multiple directions. Role conflicts may be intrarole conflicts and/or interrole conflicts. Intrarole conflict is caused by different directions pointed at the same time and interrole conflict is the result of conflicting expectations. Intrarole is the first level conflict whereas the interrole conflict is second level conflict. Intrarole conflict is caused by production level multiple supervision, demand for different qualities by the sales manager, repair problems, working conditions, payment systems. Interrrole conflict is caused by the position occupied by individuals. Multiple supervisors lead to multiple role expectations. One supervisor expects quality, another prefers quantity and some other desires smooth performance. Diversely expected roles have multiple conflicting positions. It becomes difficult to reduce such conflicts. The role behaviour depends on the role ambiguity and role conflict. Lesser amount of role ambiguity and role conflict have higher degrees of performance. Similarly higher amount of role ambiguity and role conflict lesser the performance. Employees many times, succumb to the stress and strains of role ambiguity and role conflict. It helps develop congenial atmosphere for a short period.

Norms Group structure incorporates certain norms to be followed by group members. Norms are acceptable standards of behaviour in a group. Members of a group are allowed to act, interact and perform their functions as per established rules and standards of behaviour. Group members learn what behaviour are necessary for effective performance of group activities. Form of the Norms: The norms are traditionally accepted rules of behaviour which are developed through explicit, statements, critical events, primary and carry over behaviours. The explicit statements made by group members become norms of behaviour if these norms are accepted by them. For example, if it is stated by the supervisor that the employees would not be allowed to meet guests or to visit them during working hours, it would become norm of the organisation. However, if the members resist to this statement and arrive at the accepted norms that not more than thrice in a month guests will be allowed to visit them; there will be this new norm. Critical event in the group behaviour decides the norms to be followed. For example, if a passer by is injured while standing nearby the machine on a particular date; it becomes norm of the factory that no one should stand near the machine. Primacy helps development of group norms. Initial behaviour accepted by the group members becomes the norm of behaviour. If the organisation offers tea at the interval of three hours in the office, it become norm of the organisation. In cases tea is not offered by the organisation; employees will be going out of the organisation for tea. Carry over behaviours from past experience become norms of behaviour. Members of the group are expected to behave in the given fashion which becomes norms of behaviour. Classes of Norms: Norms are of different types that differ as per different groups, communities and societies. Norms being commonly accepted principles influences every member of group. Norms may be formalised norms, non-performalised norms, performance, related norms, appearance norms and allocation norms. .

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Formalised norms are written and accepted by the organisation as manuals or code of conduct. The employees have to follow the code of conduct. The rules and regulations are strictly followed by the members. Sometimes, these rule are relaxed and people take it casually. Besides formalised norms, informalised norms are commonly present in organisation. They are not written but are accepted as commonly practised tradition. They are generally related to informal work group. Social interactions and traditions are well-established norms although they are not put in black and white. The manners of living, lunching and celebrating are examples of informal norms. Giving respect to elders are informal norms. Performance related norms are prescribed for channellising work and group activities. Leaders demonstrate how laborious they are so that the employees can develop the work norms of hard work. The methods of communication, level of output and other activities are governed by norms known as performance or work norms. Employees devote maximum oftheir spirit and capabilities as per the work norms. Many organisations have developed motivation, norms for mobilising employees of organisation. Appearance norms refer to the presentation of employees in an appropriate dress, loyalty, attitude.and communication style. Many organisations have preached their employees to present themselves in the society as very outstanding citizens. Soft spoken, well-mannered and pleasant personalities are inculcated by the employees to develop the image of the organisation. During work hours, employees have to wear a particular type of clothes and behave in a particular manner. Allocation norms deal with the rules and principles of allocating resources to employees for performing their jobs efficiently. These norms include payment, system, assignment of jobs and allocation of tools and machines to employees. Ex-gratia payment, medical reimbursement and other allocation functions are governed by allocation norms which may be written or oral. Uses of Norms: Groups are benefited through norms as employees' behaviours are moulded and modified greatly with the use of norms. Norms are the backbone of employees' behaviour. It facilitates survival and growth of organisation. Norms essential for survivial are incalculated amongst the employees. It is observed that norms protect the employees from being polluted in behaviour. The norms of an organisation make the employees satisfied. The employees' morale are increased as in military, the norms are accepted as a tool of performance till death. 'The do or die' norms are asking employees to do their utmost and although they satisfy their employers they have to be prepared to sacrifice their lives. Since the sacrifices are closely related to the image ofthe country, soldiers prefer to die rather than allowing the image ofthe country to die. The predictability of behaviour is attached with the norms. People can be prevented from resorting to undesirable behaviour. Favourable behaviour is inculcated amongst the employees. The conflicts and interpersonal problems are reduced to minimum. Norms encourage values and integrity of organisation. Group performance is maintained through using norms. Conformity: Conformity decides the degree of use of norms. Group success depends on the conformity of norms which is the acceptable degree of norms by the employees. The reasons of lower degree of conformity are diagnosed to develop a high degree of norms acceptability. There are four variables influencing conformity. Intelligence and authoritarian attitudes are negatively correlated with conformity. Highly intelligent people do not follow all the norms. People of submissive nature follow the norms in many cases. The situational factors are influencing conformity. Group size, group structure and group interaction have positive impacts on conformity of norms. Stimuli are important factors for conformity. The intra and intergroup

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relationships influence the members to conform the norms. Congenial relations help higher conformity whereas disturbing relations cause disregarding the norms. The leadership style of supervisors and the attitudes of the foreman have significant impact on conformity. Voluntary conformity is a welcome step under group behaviour. If a member does not conform the norms, he is persuaded and pressurised by the group to follow the norms. In case he does not follow the norms, he is punished or avoided depending upon the importance ofthe norms. If an employee yet proved rebellious of the norms, he is excluded from the group or terminated out of the organisation to prevent other employees from being rebellious. Hundred per cent following of norms may not be possible because some employees may be willing to demonstrate creativity and innovative ideas. Group members prefer all the norms to make themselves developed and satisfied.

Status Status is a defined position or rank. Status may be given to individual, group and institution. It is socially accepted position given to a person by others. Members of a group are recognised by its status. Group members are proud of the status of his group and organisation: Status is given by society. A member can understand his role and rights through the status of his group. Status is a significant motivator. It influences the behavioural patterns of employees. Within the organisation, employees enjoy their respective status which is based on position, title, wagelevel, seniority, skill and education. A person is given status because of his personality, work experience, skill, age, education and expertise. Many times, people are called by their position or status. For example, professor, doctor, engineer, foreman are known by their positions in the society. It symbolises their authority and responsibilities. Status has direct impact on group behaviour because of status congruence, that is, the agreement of behaviour with the status. A professor is expected to demonstrate model behaviour in the society. A doctor is believed to be courteous, manager is sympathetic to the employees. Group members have status congruence towards achievements of group objectives. Status conflict is witnessed in those cases where status relations are not properly defined and their authority and responsibilities are not correctly delineated. Types of Status: Status may be formal and informal. Formal status is given by a particular group. The manager is given award by the company and he is enjoying this awarded status throughout his career. Status is attached with impressive title, high pay, preferred work style and so on. Status hierarchy, organisational views and employees' respect are attached with the formal status. Education, experience and skill are linked with status. Informal status is accepted by people at large. Social or political leaders are the examples of informal status. Status and Norms: High status people are given more autonomy than the lower status people. They are given more freedom to d~viate from norms than any other people of the group. They are in a better position to exert pressures. Higher status people care about the achievement of the objectives than following norms. Lower status people are prone to follow the norms although they are not much concerned with the objectives by violating norms. Status and Equity: Status should be equitable, otherwise it would create disequilibrium. Inequity creates incongruence. Pay and status incongruences have caused dissatisfaction amongst the employees. While providing status satisfaction, it must be clear that there should not be an inequity. Group members agree on status criteria but they get conflicting situations in status inequity.

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Group Size Size of group has positive impacts on behaviour because of diverse decisions and adequate number of people in a group. A large group is more effective in achieveing organisational objectives. It has given birth to synergy as a result of group syntality. Large group has also forced social loading. People feel free when they work collectively because there they get a chance of relaxation while it is not individually possible. The large group has deficiency of social loading i.-e. tendency to extend less effort when working collectively. Many people are lazy and inept. They get the chance of reducing their efforts. They get the chance of dispersion of their responsibilities because they think that their contribution cannot be measured. Small sized group is easily manageable and can produce more qualitative goods. Small groups are faster to complete the work than the proportionately larger group. Smaller group is better to perform quality work. Members of smaller group have more satisfaction than those of bigger group. However, very small group shows more tension and is unaware of the production process. Impact of size on behaviour depends on the nature of the task. The size should be decided considering the degree of interaction and satisfaction required in the group. In decision-making group odd numbers are preferred to decide the majority opinion. Very small group for example, three-or five-member group may not arrive at expert opinion. A group of seven or nine members is considered more effective and useful. Social Density Group behaviour depends on social density, too, that is, the number of people at a particular place, location and system. The degree of interaction depends on the density and quality of group members. A specific location in a factory would be more appropriate than general type oflocation. Plant layout has some influence on the density and consequently on the performance behaviour. If a large number of employees congregate at a place, no effective performance is feasible because of confusion and commotion. A definite number of space must be provided between one employee and other employee. In office atleast sixteen square feet is required for effective performance. There is no definite rule for social density, But it should be decided based on the task, tool and techniques. The basic purpose is to avoid crowd or confusion. Stress and tension caused by social density should be avoided. Similarly too much distance from one employee to other employees causes unnecessary delay in performances. The closeness and distance are decided as per the need of the organisation. For example, in technical units, less stress is noted in proximity whereas in office more wastage of time is observed in close proximity. Composition Group composition i.e. nature of members of the group in terms of age, skills, knowledge, personalities, opinion and so on have great impact on the behaviour and performance. Heterogeneous groups consisting of dissimilar individuals and diverse abilities have effective performance. Cultural diversity brings diverse views and attitudes to improve efficiency. Heterogeneous groups perform more effectively than homogeneous groups. Group diversity is converted into cohorts after lapse of three four months after working together. Cohort means common attribute. For example, women workers develop common understanding while working in the same organisation. Cohort people enjoy working together. Diverse group has positive and negative impacts depending upon the nature of the task.

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Heterogeneous group gives high performance because members are motivated. by other groups. Problems are solved through diversity approaches because of multiple choices. One group tries to maintain its own dignity and culture by demonstrating higher performance. The work culture becomes unique where everybody is busy to deliver maximum of his creative output. However, diversity receives unification by higher authority, otherwise it would create conflicts. Composition management is essential to get maximum benefits of heterogeneous groups.

Group Process Group process includes decision-making process, leader behaviour, power, interactions, conflicts and so on. Group process may provide group synergy and group loafing depending upon how group process is arranged and directed. Group synergy gives more results and the sum of individuals' performance. For example, if two employees are producing two units separately, they can produce five units when performing together in a group. The production of extra one unit 'is on account of group personality known as syntality. On the contrary group loafing or social loafing produces less than the sum of individual performances. Social loafing is negative synergy. Group process tries to gain group synergy which is possible with proper arrangement of processes of the work. The skills of each group member are used at the maximum for getting the benefits of group. Diverse skills, mutual interest and meaningful suggestions are possible in group process. Social facilitation occurs in group. One member is helping other members while they are performing the job. They enjoy working together and do not feel tried at an early stage because of mutual interest and understandings. People learn with each other in group. Group process should be designed in such a way so that the members get proper training and motivation. Group Tasks The group tasks are divided into several parts which are closely linked but separately performed. If each position of the task is properly performed, the total tasks are effectively completed. The areas of total tasks are production, marketing, personnel, finance, information and so on. They are given autonomy and responsibilities. Diverse activities are co-ordinated to get unified task. The group tasks are managed by specialists and qualified personnel. Complex tasks are more easily performed than the simple task because complex tasks are properly divided and works are allocated amongst the qualified people. It provides effective communication and reduces the possibilities of conflicts. Uncertainty of task performance is avoided under group tasks by effective communication, rich leadership and low level of conflicts. Group tasks are performed by developing production tasks, discussion tasks and problem solving tasks. These tasks group perform their respective jobs. The sUCceSi of group tasks depends on the level of communication, response length, involvement and action orientation. All members. of a group are required to share responsibilities and be in constant touch with each other. There is need oftasks related interaction. Ifmembers interact effectively, the task performance would be easy and successful. Group Decision.Making Techniques Group decisions have more advantages than the individual decisions be~ause multiple alternatives are arrived in the group thinking. It becomes easy to select the best alternative out of several alternatives by the group members. The external pressure on individual is avoided ~ group decision. By aggregating the suggestions of many employees, best susgestions are arrived at. The heterogeneous group members bring diverse views which help arrive at most useful

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decisions. Group decisions have more acceptability than the individual decisions. Group decisions have support of many individuals. It has a democratic base free from arbitrary decisions. The disadvantages of group decision are time consuming process and ambiguous responsibility. Group takes more time to decide even a simple problem. Many a times, the group members use their ego for arriving at decisions. This creates conflicts and confusion. Overt disagreement as well as covert disagreement put the organisation at bay. In group decisions, some vocalists take more time to argue on petty things. It is observed that the group decision making is not so defective as the individual members are inefficient. Nevertheless; group decision tends to be more accurate, creative and acceptable. There is a wide scope of getting more information and critical analysis. Group decision-making technique involves consideration of group think, group shift, brain storming, nominal group technique, delphi technique and electronic meeting.

Group Think Group think is related to norms which are overriding factors over realistic approach. It relates to majority discussions ignoring the viewpoints of the minority and unpopular members. Group think is final decision of the group where the group members have major opinions wherein some opinions are suppressed. Brain Storming Brain storming is the idea generating process wherein any or all the members of the group provide alternative solutions at the same time. The criticisms of these alternatives are also put forth in the meeting. The process of brain storming is initiated by the group leader who clearly presents the problems before the group. The group members understand the problems, if any doubts are there, it is clarified by the group leader. Members are invited to suggest as many alternatives as possible. All of them are given free hand to suggest any measures which may be even critical to organisation. Bizarre suggestions are also accepted till all the- alternatives are screened and final decisions are arrived at by the group. Unlike group think, brain storming gives sufficient opportunities to all the members to express their views. It does not prohibit any anti-suggestions. Even unpleasant suggestions are invited which are critically examined by all the group members. Final decisions are taken by all the group members even dissenting members are given due regard so that well balanced suggestions are arrived at in the group decision process.

Nominal Group Techniques Nominal group techniques provide systematic approach to the problems by the group members who are given sufficient chance to present their views independently unlike brain storming. Every member of the group independently writes his views and suggestions about the problem. They are not allowed to consult other members. Each member, then, is allowed to present his case before the group members. He reads out his suggestions giving his own ideas. All ideas are presented and recorded on board. Discussion takes place only when all ideas have been recorded. Every group member listens to the ideas carefully and rank the ideas presented. The final decision is taken with the highest aggregating ranks. This method does not restrict independent thinking unlike the interacting groups wherein outspoken people emphasise more than the real thinkers.

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Delphi Technique Delphi technique is similar to nominal group except that the members are not required to be physically present. It does no allow group members to meet face to face. The problems are firstly identified which are carefully explamed by the group members. Questionnaires are framed which are independently filled up by each member. The outcomes of first questionnaire are transcribed at a place, which are reproduced and given to each member. The members carefully examine the solution and put forward their respective views. The process is repeated until consensus is arrived at. Similarly other questionnaires are put forward for arriving at consensus decisions. The greatest advantage ofthis technique is that no member is given more importance. No member can unduly influence others because it does not require physical presence of the participants. Members at various places can participate in this technique through postal and other means of communication. The disadvantage is that this is time consuming. Prompt decisions cannot be taken because of delay in communication and administrating the technique. Electronic Meetings Electronic meetings are similar to nominal group technique wherein sophisticated computer technology is used. Issues are presented to the participants who type their results onto their computer screen. Individual views are presented on the computer screen. Participants freely take a decision as they know others' reaction immediately with the push of a button. It is fast because people have to concentrate on the problem. It provides anonymity, honestly and speed. Electronic meetings have no problem of distances because oflatest communication techniques such as e-mail, Internet and so on. Group Cohesiveness Group performance becomes effective where group cohesiveness is observed. Group cohesiveness is the atmosphere of closeness or common attitudes, behaviour and performance. There is common agreement on group views. Group members develop co-operative spirit which is important for the successful completion of the tasks. Members like each other. J. Keyton has defined group cohesiveness as the degree to which members are attracted to one another and are motivated to stay in the group. The frequencies of interaction, favourable evaluation and inter-group competition are increased under group cohesiveness. There are some specific factors which reduce the cohesiveness. These are disagreement, group size, unpleasant behaviour, dominance by someone and so on. Group people have to develop the atmosphere of group cohesiveness through adhering on the determinants of cohesiveness such as time spent together, group size, gender of members, external threats, previous success, group goal, frequency of interaction, severity of initiation, favourable evaluation, personal attractiveness and intergroup competition. Determinants of Group Cohesiveness Time Spent: The amount oftime spent influences the cohesiveness. People spending more time together are likely to have more co-operative spirit than those who meet rarely. As people spend more time together, they become friendly. They get more chances ofinteractions who bring them together through talk, response and gesture. The common interaction leads to fulfilment of common interests and increased attraction. The time spent together depends on various factors such as physical and mental proximity. People who live together, travel in the same transport, work together and have mental alikeness come closer to each other. Many times too much closeness reduces the cohesiveness because of their mental differences. Physical closeness and mental likeness decide the amount of time spent together.

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Group size: The group cohesiveness decreases as group size increases. Small group provides more opportunity of interaction than the larger group because members of smaller group find more opportunity to understand each other. The larger group creates physical as well as mental distances. Many times people are neutral and apathetic to each other in a large group. As the group size increase, many cliques are developed. Many subgroups are developed within the large group creating inter-conflicts and differences. If group size starts increasing it is advisable to form separate manageable groups. Gender of Members: The general mixing has been traditionally accepted that females like to meet with females. They prefer to talk, walk and live together. They understand each other and extend a helping hand. Similarly, men are accustomed to work and join together for entertainment and other functions. Sometimes, men and women form different groups. It has been observed that females develop more cohesiveness than the male workers. Women are less competitive and more co-operative. Greater group bonding is observed amongst female employees. However, recently certain exceptions have been observed that men and women have started to form cohesive groups. But such phenomena are very rare and are not long lasting. External Threats: External threats compel people to unite to prevent the threats. People are always afraid ofthe problems. If any problem is expected to occur and disturb the happiness of the group members; they would like to develop group cohesiveness. The unity gives strength. They can fight with the threats and protect themselves. Trade union becomes successful if they develop the ideals of protecting their group members. People develop feelings of security and safety by developing cohesiveness. Previous Success: Success increases spirit to work. People develop cohesiveness ifthey find that the cohesiveness has resulted in some success. Successful employees are less prone to differences and deviations as espirit de' corps lead to unity and strength. Many successful nonbanking financial institutions in India have launched several production and marketing projects as the successful experiences in one project are used in other projects. Group Goals: Group goals leads to cohesiveness and common understanding. Sometimes, the cohesiveness is due to binding upon the members. Many times members accept voluntarily that working together will bring good results for the organisation as well as for them. Successful goal accomplishment is essential for the development of the organisation. Frequency of Interaction: Frequent interaction increases group cohesiveness. Frequent interaction is possible through common meetings, conferences and other mutual meeting functions. The members of a particular cadre, post and paramount get more chances of interactions which make people understand each other. Severity of Initiation: Group cohesiveness is visible where people get entry in the group with some toughness. The harder to enter in the group, the more is its cohesiveness. Easy entry in the group makes people frivolous and unrealistic towards the group cohesiveness. Common initiation also leads to creating cohesiveness. Favourable Evaluation: Favourable evaluation leads to higher cohesiveness as it elevates the prestige of the group members. It makes all the members proud of the performance, which motivates them to work hard with cohesiveness. The management has to be careful for evaluation because a slight criticism may discourage the group members and lessen the group cohesiveness. Personal Attractiveness: Group cohesiveness increases when members are attracted with each other. It increases mutual trust and support. The mutual enjoyment and entertainment lead people to overcome the problems. Personal growth and development is possible through

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attractiveness. It assumes that people are not zealous. with each other because zeal leads to unhealthy practices. Inter-group Competition: Competition brings group members together. The competitive spirit lead to envious efforts which help each other to attain success in life. Decentralisation creates the atmosphere of intergroup competition which requires group cohesiveness, unlike intergroup competition, intragroup competition creates conflict and contradictions. Frictions and fighting lessen cohesiveness. Favour to any group member creates unhealthy competition. It lessens cohesiveness.

Effects of Cohesiveness Cohesiveness is always desirable. It helps effective achievement of the group goals and higher performance has been related to high cohesiveness provided there is performance norms. The relationships amongst the group members have also been influential for achieving high performance by high cohesiveness. It has been observed that high cohesiveness is both a cause and consequence of high productivity. AB has been discussed already that success brings cooperative spirit. Success motivates people to work hard. So, productivity helps develop cohesiveness as cohesiveness brings productivity. People in group are sharing their joys and sorrows making each other happy while at work. Sportsmanship is observed in group functions. The basic point is that group members learn playful functions while working together. Cohesiveness assumes that no one in the group is given more importance or less importance. Group performance is because of the team spirit. "People win together as well as loose together." As has pointed out already that performance based on cohesiveness is based on performance related norms. Group Think Group think is related to norms which are the overriding factors over realistic approach. It relates to majority decisions ignoring the viewpoints of the minority and unpopular members. Group think is the final decision of the group where the group members have major opinions wherein some opinions are suppressed. The suppressed opinion can take a deadly turn after the decision has been taken. It creates a disgruntled minority which may prove fatal to the organisational activities. Group think, therefore, should not be invited otherwise it would work like a disease to hamper the progress ofthe·organisation. Many people observing the majority opinion, suppress their views in group decision making process and express their views out of the group meeting. It is a disease that attacks the group members. Many times the group think is symbolised as shy because the group members feel shy to express their views in the meeting. They express their views out of the meeting because they face group pressures against their own opinions. The group think ignores the realistic views because of group pressure. Many a times, group members become violent and stress upon hearsay ignoring the realistic views of others, who do not want to raise any point because of their sober attitude. The group think is a liability for group decision process. Sometimes, group members become so enamoured of seeking concurrence that they override the realistic appraisal of the useful suggestions. Group think deteriorates the mental efficiency, reality and moral judgement of such people who are unable to express their views in group meeting. Group thinkis possible because of dominant nature of some of the employees who prevent others from positive participation.

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GROUP SHIFT The decision is shifted from the major decision because the decision has been taken under exaggerated position. When it is observed that group decision is more conservative. It is shifted and is made more liberal. The differences are avoided. Dissentions are accepted and group decisions are finalised in that light. It provides more opportunities to members to participate in the decision-making process. Ifit becomes clear that minority and less popular persons will be properly heard, they would contribute maximum as they become bold and inspiring. Group leader motivates members for taking active part in the decision-making process. Performance Group depends on several factors to achieve performance as has been discussed already. The organisation's strategy, authority structure, selection and training procedures, reward systems, group cohesiveness etc. provide a climate which may be favourable or unfavourable for performance achievement. If an organisation's strategy emphasises on the limited products; group members are bound to perform less. The work relationship between management and workers decide the performance level. It is not only group members' performance but external factors influencing the group members cause performance achievement. Management considers performance not in isolation with group members but also with structure, process, think and shift and other factors as have been described. Structural factors shows the relationship with performance. Role perception, norms, status, group size, demographic make up group's task and cohesiveness have great influence on performance. Employee's role perception and boss's expectations receive high performance. Norms help explain the behaviour of group members. When an organisation needs high output, managers expect individual performance markedly high. Absenteeism and performance are influenced by norms. Similarly, status inequities create frustration and adverse effect on productivity. Equity preferences are dominating the work-performance because non-observation of equity may lead to reduced motivation. Equity maintenance increases the willingness of workers. Similarly, larger groups are more effective for fact findings. The demographic composition of the organisation has more influence on performance. Gender, education, age, income, status are influencing factors. Highly educated persons may not be fit for manual performance while they are desired for thinking process. Group think and shift as well as cohesiveness have positive impacts on the performance. Satisfaction The employee's perception about the job influences their satisfaction level. High congruence between a boss and employees shows employees' satisfaction. Role, status, norms, group size, group task and cohesiveness have more influence on satisfaction of employees. Larger group has lower satisfaction as the opportunity of interaction decreases with the increase in group size. More members in a larger group increases group conflict and dissension. Group cohesiveness increases the satisfaction of employees as they feel proud of achievement through group functions.

Chapter 10

INTER-GROUP BEHAVIOUR 1. 2. 3. 4. 5.

FRAMEWORK OF INTERGROUP STRATEGIES FOR MANAGING INTERGROUP PERFORMANCE INTERGROUP POWER RELATIONSHIPS TEAM WORK IN GROUP AND INTERGROUP INTERGROUP CONFLICT

The foundations and structural elements of group have been discussed in previous chapters. Analysis of employees' behaviour in the group is essential to understand their behavioural impact on performance. This is very known on Intergroup Behaviour. But what is the relationship and behavioural pattern between one group to another group; it is required to be studied. It is well within the framework of intergroup behaviour. Study of intergroup behaviour is important for various reasons: interaction and performance as well as formulation ofthe design for the whole organisation. The goals and objectives of the organisation can be achieved with performance interactions. It is essential to evaluate the impacts of intergroup behaviour on performance, so that the diagnosis can be exercised for improving the skills and behaviour of the employees. Intergroup behaviour help design the structure of the organisation. The intergroup behaviour has been studied under five main heads: framework for intergroup performance, strategies or managing intergroup performance, intergroup power relationship and team work. The intergroup power relationships involves power and conflict.

FRAMEWORK FOR INTERGROUP PERFORMANCE The interaction between two or more groups is known as intergroup performance. For example, the interactions between separate departments in the organisation comes under intergroup performance. The intergroup performance depends on several factors such as interdependence, task uncertainty, time and goal orientation etc. The performance is analysed at individual, group and structure or organisation levels.

Interdependence The intergroup performance depends on the levels of interdependence of employees on their respective bosses. In functional form of organisation, a group of employees has to seek orders from production managers, marketing managers, research directors, office managers and so on. Each group of managers and employees have to seek guidelines from similar or higher ranked

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employees. The interactions between groups must be co-ordinated to attain group goals. Interdependence may by of three types: pooled interdependence, sequential interdependence, reciprocal interdependence. Pooled Interdependence: Groups are relatively interdependent of each other. Each group contributes discretely to the organisation. They are interdependent on each other only in pooled form. These groups do not interact frequently. They contribute separately for their respective development. For example, research department do not interact with other departments. It is not interdependent on others, but its findings are used by other departments which get the information from the pooled or stored communication viz., library or research room. Interdependence is a pre-requisite of the group behaviour. Groups having no interaction are not included under intergroup behaviour. Interaction is visible in interdependence. The quality and accuracy of the interaction between two departments have strong influence on the intergroup behaviour and performance. Reciprocal interdependence has high degree of dependence. Sequential interdependence has moderate degree of dependence. Interaction is visible always under interdependence. Activities of one group are dependent on the actions and behaviour of other groups. The success of interdependent groups depends on how successfully these groups are controlled and co-ordinated. Task Uncertainty Intergroup behaviour is greatly influenced by the task uncertainty. One problem in a group may cause uncertainty in other group. One point left in financial data increases the burden of the accountant. So, uncertainty should be managed to avoid accumulated problems. The manager of technical department faces several uncertainties which should be avoided for proper functioning of other departments. The uncertainties are to be avoided by maintaining task clarity and task environment. Task clarity refers to the requiremeilts and responsibilities which are clearly stated and understood by the employees. The rules, regulations, procedures and policies are clearly understood by the persons concerned. Task clarity is very high in some department while it is very low in other departments. Changes in quality and quantity clearly demonstrate the procedures to be followed. The managers clearly understand what should be the procedures and functions in the changed situations. Quality control variables are used to make certainty in the department. Group people should be well versed in maintaining the clarity while avoiding the uncertainty of task. Creativity and innovation are required for developing different products. The uncertainty is researched and solutions are revealed by expert members. If the task uncertainty is too high, the managers have to manage it. They should know what should be done when uncertainty arises. The intergroup behaviour requires maintaining task clarity at the possible extent. Task Environment: Task environment includes those factors or elements, internal or external which are effective to influence the level of performance. Environment assumes certain conditions and situations which are attached to the organisation. Manager of production department has to interact with the manager of marketing finance and accountants. Internal and external environments are needed to be studied and managed by the group members to achieve performance, success in the organisations. Task uncertainty varies with different task environment. For example, the number of units and groups and stable dynamic nature of environment influence the task certainty. The large groups and dynamic nature of environment create more uncertainty. Research scientists face

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high degree of uncertainty. Since scientific and technological environment is constantly changing, the task uncertainty increases. Managers have to study the changing environment and adjust the group activities accordingly.

TIME AND GOAL ORIENTATION Intergroup performance is greatly influenced by time and goal orientation. Time denotes changes and goals are framed as per changes, which are to be achieved by the management. Time and goal management is essential to make employees satisfied while achieving the organisational goals. It helps effective performance of the job. Various types of tasks and levels of uncertainty require different work orientations. Time orientation is essential for effective performance with lower amount of resources. Time involvement has indirect impact on the cost. Rapid performance leads to quality and cheaper production. Time is an important factor in group behaviour. Time orientation and management is required for qualit:T control and productivity data. Periodical analysis of sales volume is also required. It is a sort of performance measurement. Time orientation refers to proper time required for managing different management functions. Time and goals are closely related as goal is expressed in the amount of quality and quantity to be produced or marketed within a specific time. Sales volume, market share, consumer satisfaction etc. are the goals of marketing department which are to be achieved within a year. Cost control, number of units produced and quality control are to be accomplished within six months. Scientific innovation, new products designed etc. are to be made within three years. Research functions take more time as it involves a time consuming process of data collection and interpretation. Goal orientation focuses on achievement if goal managers should clearly focus their attention on achievement of goals an~_ objerJ,ives. There are different goals of organisation which should be clearly displayed and defined. Goals are fixed as per techno-economic conditions, marketing and scientific researches. After evaluating the resources, goals are specifically laid down which are to be achieved by group members. The groups may differ from each other so far as time and goal orientations are concerned.

Intergroup Performance Interdependence, task uncertainty and differentiation establish intergroup managerial requirement. Differentiation have been stressed on the basis oftime and goal orientation. These three factors influence the performance. Interaction of various factors have been influencing the quality and quantity of performance. Pooled, sequential and reciprocal interdependence have different influencing impacts on the performance. Research findings are used for improving the market functions which help production managers to develop their production techniques for which additional funds are required. The people's development becomes essential for performing all these functions. All the departments are interdependent. They require information flow requirements for their effective performances. Incoming and outgoing information are systematically arranged so that interaction may not be interrupted. Integration of different functions becomes essential with high degree of collaboration, cooperation and structural requirements. The wide gap between research findings and their allocation distorts the intergroup performance. Intergroup characteristics, intergroup requirements and intergroup performance are co-ordinated to achieve high degree ofintegration and performance. Managers have to be cautious while exercising co-ordination between them. Task uncertainty is low in case of production and accounting whereas it is very high in research. It is m()derate in case of

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marketing and development. Similarly time and goal orientation differ from one group to another group.

Strategies for Managing Intergroup Performance Many authors have given different strategies for managing intergroup performance. Intergroup performance varies from low to high depending on the requirements of the organisation. Strategies are based on interaction requirements. The level of commitment, resource requirements and related factors influence intergroup performance. Strategies are specifically formulated for interaction, information flow and integration. Managers depend on hierarchy and rules for intergroup performance. The strategies for managing intergroup performance. The strategies for managing intergroup performance vary from low level of rules and procedures to the high level of integrating departments through hierarchy, planning, liaison, task force and teams. Rules and Procedures The rules and procedures guide the method of managing intergroup performance. Interacting groups earn how to follow a pl:!-rticular set of actions. Every group has certain set of functions which are followed by their members. Procedures spell out the required behaviour. Rules and procedures also delimit the interaction and information flow between groups or units. Within the limits, the groups have to act and interact. It helps proper performance as well as maintain the discipline. The intergroup activities can anticipate in advance the responses and expected behaviour with the help of rules and procedures. Employees may come and go but the rules and procedures will always govern the behaviour. When there is high degree of uncertainty there is need of increased information flow. Hierarchy Hierarchy is the next strategy for managing intergroup performance. It assists follow up of the rules and regulations. The inadequate inventory management is done by asking the hierarchical people to procure the inventory as the general manager is unable to manage the inventory. Groups are also hierarchically formed. Higher group have power and authority but not the real functional potentialities which are used by the lower group. Lower groups devote much time on action whereas higher group concentrate on thinking. Hierarchy has its basic advantageous. The group performance is based on the strategies of hierarchical procedures and attributes. Planning Planning is a part of strategy. Management plans what types of strategies would be used at what time. The task goals, tasks procedures and task accomplishment are planned before application of the strategies. In production units, several groups are assigned jobs for their respective performance. Each group has to perform its own tasks within the time-limit to achieve their respective goals. Success is possible through proper use of planning and programming the future actions. Group activities are well-adapted to suit the future requirements. Strategies are managed for interactions. Selected interactions between groups and units are planned for achieving success of intergroup performance. Liaison Liaison is needed for proper co-ordination between two and more groups. Interaction becomes successful when adequate liaison is exercised. Liaison is internal boundary spanner.

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For example, the applied role spanning boundary is developed between operation research and marketing research. The liaison officer is generally the higher authori'ty who establishes coordinating role between two or more related groups. The liaison may be formal or time-consuming process such as using formal meetings and co-ordinating functions. The liaison role requires information flow, acquainted functions and interaction activities. Liaison is co-ordination of different activities, providing the interacting units with better understanding of each other's functions and responsibilities and providing a continuous way of keeping each interacting unit. It helps development of intergroup relationships and routine decisions. Negative effects for individuals' interaction may be observed in some cases. Conflicting expectations for performances may be observed. Liaison persons have to handle the complexities and interacting problems.

Task Forces Task force is established by selecting one or more representatives from each of interacting groups. It is helpful for interaction and performance-achievement. Task force exists till the related interaction remains. When the interacting task force returns to their respective groups. Quality problems, developing and selecting alternative solutions and implementing the solution are used by the task forces. Teams Within the group, teams consisting of one or more members are found to solve a problem. Team is developed to solve long-term problems, achieve permanent formal assignment, maintaining dual responsibility and so on. When the team has achieved its objectives; the team member return to their original departments. Integrating Departments Integrating department envisages more permanent formal and authority-based mechanisms. It involves information flow, integration requirements and intergroup relations. Integrating department integrates functions of several departments. It is responsible for the effective integration and intergroup activities. Decision-making authority is given to integrating department which has a number of subordinates or staff specialists. The subordinates are specialists in different areas such as research, production, marketing and so on. Intergroup Power Relationships Intergroup power relationship reveals the success or failure stories of intergroup performance. If the relationship is congenial; the group members exert their might. On t4e contrary; the disturbed relationship creates problems. Conflicts become inevitable; which would be discussed in the subsequent chapter. Power relationship refers to the elements of power and dependence. Power reveals the influence on other groups. One group asks other groups to carry directives and order. Top management group has power over middle management group. The former exercises influence on the latter. Power involves the elements of dependence as well. The marketing group is dependent on the production units whereas the production units depend on the marketing group. Within one group, a team is dependent on other teams. It has been analysed at several places that the mutual dependence makes people rely on each other for performances oftheir respective departments. Intergroup power relationship has been analysed under dimensions of power, determinants of power, acquisition of power and outcome of power.

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Dimension of Intergroup Power The intergroup power has two major dimensions: weight and domain. The range of activities and extent to which the behaviour of one group can influence the behaviour of other group is known as weight of intergroup power. It is also known as scope of intergroup power. The extent of power the financial department exert on the production department for allocating funds is well defined as dimensions of intergroup power. The power domain is large in large group. Domains the real power wherein one can influence other group. It is integrating department's power on others. When domain is large, the scope or weight is high. Decrease in dimension is visible when weight and domain of power is small. Determinants of Power The determinants of power are uncertainty, substitute and importance. The power is visible when an interacting group copes with uncertainty. Uncertainty: Uncertainty reduces the power. The amount of certainty reveals the degree of success. The more certainty in an organisation; the higher power is feasible. But, uncertainty is inherent in an organisation because of lack of information, unpredictability of unforeseen events and absence of alternative actions. The ability to cope with the certainty and control the unpredictable items decides the power. More power is needed in uncertainty for absorbing the losses of uncertainly the coping of uncertainty confers power through dependence. Uncertainty is reduced for effective use of power. Production department tries to reduce cost, increase quantity and quality through the power vested in it. This power facilitates the production department to manage all its functions. Similarly the marketing department has certain power to manage its uncertainties. Uncertainty can be removed only when organisation has sufficient power. Uncertainty has to be coped with the intergroup power. Substitutability: The intergroup power depends on the degree of substitutability i.e., the resources and services required for intergroup performance. The more resources and services are needed, the less power it has on group. Substitutability is related to the interdependence between two or more groups. The interdependence may be pooled, sequential and reciprocal. Less substitutability has greater centralised power. Different mechanism of substitutability also decides the degree of power. Integrative importance: Integrative importance of group influences the overall success and performance. Integrative importance is related to the degree of resource, requirements and performance impact. The degree to which resources provided by one group are converted with the activities of other group is known resource requirements. Performance impact refers to the elimination. If production has stopped, the marketing functions are reduced. The importance of production department is visualised in this context. Machine department has higher integrative importance because production and marketing depends mainly on the functions of machine department. Integrative importance has great impact on the intergroup performance. Power Acquisition Power acquisition is co-operative strategy because it involves two or more groups for intergroup relationships. It is a conscious agreement between two or more groups to reduce the uncertainties of interacting groups. The power acquisition is possible through contracting, coupling and coalescing. The contracting power acquisition is through agreements and controls. Management faces uncertainty but it has to work in stability. The conflicting groups must arrive at contracting level so that the bargaining agreement may bring peace and harmony.

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Management and labour acquire power through contracting. If the salaries and perks are increased; labourers are satisfied and they work with their full devotion and dedication. Co-opting strategy acquires power through absorbing new groups in the existing bigger group. The weaker group is absorbed by the stronger group. The internal fighting between such groups is avoided by the organisation. Merger, absorption and amalgamation have been glaring examples of coupling strategies of power acquisition. Certain unnecessary areas of one department are absorbed by the major areas of the department. Absorption has certain disadvantages because the basic virtues of the absorbed areas are lost with the major area. Coalescing is another strategy of power acquisition. Coalescing is combination or joint venture. When two groups are fighting together without any use; they arrive at the conclusion that they should develop joint venture avoiding their personal attributes. Coalescing or coalitions are frequently observed in different areas and groups of an organisation for gaining advantages of power. Uncertainty and inter-competition are avoided. The coalescing becomes dominant coalition when top executives combines together to form a forum of management. Coalition is accepted till it functions well and does not involve any frictions. It is discarded and dissolved when it ceases to function.

Outcomes of Power Outcomes of intergroup power is visualised in the form of individual level satisfaction of employees and goal achievement of the organisation. The morale of employees are enhanced while maintaining cohesiveness and trying to achieve productivity. Intergroup performance is achieved at organisation level with increased profitability, efficiency, turnover and adaptability. The outcomes of power are result of compliance of remunerative and normative techniques as well as involvement of employees for work performance. Intergroup power and acquisition strategies have greater impacts on work performance. The intergroup power and acquisition are dependent upon the substitutability, coping with uncertainty and integrative importance which are arrived at respectively f{,om interdependence, task uncertainty, time and goal orientation. Power is determined and acquired through position and organisation strategies. The consequences of intergroup power relates to compliance, and involvement. Compliance involves remunerative, coercive and normative attributes. Power is visible through the allocation of pay, price benefits, assignments and so on. Coercive power is seen when labour is rowdy and are unwilling to accept the punitive actions. Prestige or esteem and moral persuasion are observed in power compliance. The type of involvement refers to demand compliances. Use of compliance and involvement increases the effectiveness of organisation. Team Work in Group and Intergroup Team spirit allows the company to produce better products at lower costs. It helps individual employees to develop skills and experience. Many organisations have developed useful teams for effective and efficient performances. Teams become more flexible and responsive for the changing situations. They are developed, deployed and disbanded as per the needs of organisation. Employee-members of the team develop positive attitude and involvement. Employees' morale and spirit are increased and maintained under team performance. Team is different from groups. Group includes two or more individuals, who are interacting and interdependent to achieve group objectives. Work group primarily shares the information and decision. They do not get synergy because they do not engage themselves in collective work whereas the work team generates positive synergy as they perform the job collectively. They co-ordinate the efforts. Work team has collective performance, positive attitudes, individual and

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mutual understanding and have complementary skills. Work groups only share information as individuals are neutral. The team is more concrete than the work group. Team aims to increase performance and potential for the organisation. Teams ensure the organisational performance.

Types of Teams Teams are developed to achieve certain objectives. Therefore, they are classified accordingly into problem solving teams, self managed work teams and cross functional teams. Problem-Solving Teams: Problem solving teams join together for solving a problem. They discuss the problems and find their solutions. They improve their work quality and work environment. They share ideas or offer suggestions how to improve the work standard and solve the problem. Since they have jointly suggested some measures; they willingly implemented those suggestions. They also share responsibilities as they implement the corrective actions. Self-Managed Team: The self-managed teams collectively control their work, assignments, choice of procedures and so on. Such team select their own members who evaluate performance of each member. Supervisory staffis least needed under such arrangement. In big business houses in India, teams sit together and take important decisions which are immediately implemented by them. They schedule the work, authorise the people and perform the job. They establish production targets, set pay scales and decide the training programmes. Self-managed teams have successfully demonstrated their capacities. They have achieved self-satisfaction. Quality employees remain with the organisation and the less qualified people have to leave the jobs as they do not cope with the spirit of the self-managed teams. Cross Functional Teams: Members of cross functional teams come from the same hierarchical level but from different functional areas. Task force is one example of cross functional team. People from diverse areas who are ofthe same cadre join together to find out' operational solutions. They develop new ideas and solve the problems. Members learn to work with diversity and complexity. They build trust and confidence. Determinants of Teams Performance Performance of teams depends on size of work team, abilities of members, allocating roles and promoting diversity, commitment, specific goals, leadership, social loafing, reward systems and usual trusts. Size of Teams: Smaller size of a team increases the performance possibilities. Larger size does not help cohesiveness; commitment and mutual understanding. When a team is larger; groups are broken into subteams. The subteams perform the job better than a larger number of people in the team. Abilities of Members: The technical and managerial skills ensure the performance functions. More technically qualified people can perform the job in a more systematic and effective form. Managerial expertise help solve the problems easily. Teams help feedback, conflict resolution and development of interpersonal skills. Allocating Roles: Teams have different needs which are to be fulfilled for the satisfaction of team members. Each member has to perform his roles which are allocated on the basis of personalities and preferences. Team members are allocated specific jobs and performances. They may be creator, imaginator, explorer, thruster, conductor, controller, reporters, linkers and inspectors. Each of these roles has to be performed by the members. 'Commitment: Teams memlM>.,.,. have comnion and meaningful purposes of performances, direction and commitment. They spend sutlicif'ni time and effort for discussing and agreeing to the collectively arrived at decisions.

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Specific Goals: Specific goals clearly demonstrate the functions which are measurable and realistic. Goals energise teams and facilitate clear communication. Innovative ideas are developed through goals. Leadership: Leadership is needed to achieve objectives through high performance of the teams. Unified action requires defining and agreeing common approach to the goal achievement. Each and every member contributes equally in the performance. Leader decides the schedule, skills and co-operation needed for team performance. He resolves conflicts and makes team members agree to common goal achievement. Social Loafing: Social loafing is possible in group action because an individual gets opportunities to hide his skills. Individual action is not identifiable in group performance. If a person is not interested in the team performance he can avoid his devotion and action. Loafing is avoided only through developing team spirit and determining the joint accountability. Team succeeds only if social loafing is avoided by team members. Reward Systems: Team decides group based evaluation of performance for rewarding the team members. Individual contribution is not assessable. Team performance is appraised by developing a suitable reward system. Profit sharing and gain sharing are modified in context with the team performance. Mutual Trust: Mutual trust is the backbone of team success. Mutual trust depends on competence, integrity, consistency, loyalty and openness. High time performance has been achieved through high mutual trust. It is a well-known statement that trust begets trust and distrust begets distrust. So, it is essentially required to create and develop mutual trust for the success ofthe team. There is responsibility on the leader to maintain mutual trust. He has to be a team player - fair, consistent, confident and competent. The mutual team spirit is also dependent on the members' qualities as mentioned above. Intergroup Conflict Intergroup behaviour involves people's actions, reactions and differences. When the groups interact, there is possibility of intergroup conflict. Organisation includes diverse and dynamic groups which are interrelated and interdependence, they exercise their power, intergroup conflict becomes inevitable. If power is properly used, there is positive outcome and the chances of conflicts are minimised but in practice many people exercise their power without caring about other groups' interest. The differences in opinion and philosophy are creating conflict. Dysfunctional factors are also responsible for conflicts. Incorrect bases of compliance and involvement with power are often witnessed in different groups of organisation. Conflict is an inevitable consequence of group interactions. Sources of conflict are identified and resolved accordingly. Since there are different views about the group conflicts, they are known through traditional and contemporary philosophies. Traditional approach believes that conflicts is the result offailure ofleadership. The conflicting parties should be separated to resolve the conflicts. Contemporary approach believes that the differences are inevitable where groups are acting and interacting. Problem-solving approaches are used to resolve the conflicts. The intergroup conflict is discussed under sources, effects and strategies of resolving intergroup conflict. Sources of Intergroup Conflict The intergroup conflict arises basically because of goal incompatibility, decision making requirements and performance expectations. Time and goal orientation and barriers to goal achievement are included under goal incompatibility. Task uncertainty and resources limitation influence decision making requirements. Interdependence creates performance expectations.

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Goal Incompatibility: When group activities are not properly directed, goal incompatibility arises. The evaluation process is also not properly directed. The differences between time of one group and time of other group to achieve the goal create conflicts. One group views the goal of other group as preventive; it is a barrier to goal achievement. Decision-making Requirements: Interacting groups' requirements face two problems viz., task uncertainty and resources allocation. Different views and information are flowing under task uncertainty. Major resources may be captived by one group while other groups are scant. The perception conflict may also create conflicts although there is no unequitable distribution of resources for performance. Withholding information, disruptive behaviour and other activities may cause conflicts in the related groups. Performance Expectations: Performance of one group may cause frictions in other groups. The frictions may be at subsequent performance or at parallel performance. The conflicts caused . by performance expectations are due to interdependence of work. As has already been discussed that the interdependence may be due to pooled, sequential and reciprocal functions. When one group fails to perform what is expected for it; other groups which are interrelated also influenced accordingly. Effects of Intergroup Conflict The effects of intergroup conflict are witnessed in the form of changes in performance and goal achievements; which may be observed in each group and between each group. Changes Within Each Group: The changes in each group are visible under cohesiveness, task orientation, emphasis on organisation and autocracy. The cohesiveness is disturbed if personal interests clashes. On the other hand if personal interests are to be served; the members of the group will unite. They unite against the managers to pressurise for their demands. Task orientation leads to differences with other groups, which creates competitiveness. It helps task consciousness and better performances. In order to achieve uniformity, the organisation emphasises on rules, procedures and responsibilities. People acquire consciousness and leadership. Leader becomes autocrat and conflicts are enhanced. Changes between Groups: The conflict increases hostility and negative attitudes. The interaction and interdependence diminish along with increase in conflict. The group performance declines and the objectives of group behaviour are not achieved. Negative attitudes only harm the people without benefiting any group. Group conflict lessens the productivity and profitability of the organisation. Strategies for Resolving Intergroup Conflict Organisation adopts different strategies for resolving the intergroup conflict through avoidance, defusion and confrontation. Avoidance: The causes of conflict are avoided by separation strategy which includes nonattention, physical separation and limited interaction ofthe groups. Non-attention means totally avoiding or ignoring the dysfunctional situation. Non-attention helps resolution of the conflicts due to passage oftime. Physical separation helps avoidance of the causes of conflict because the groups do not get an opportunity to fight with each other. Only limited interaction is permitted in case the groups are having differences of opinion. Defusion: Defusion involves smoothing and compromiG~. Smoothing emphasises on the similarities of the groups. The sentiments are put together. Compromise is a give and take

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strategy. It helps to fulfil the interests of the group. Compromise has become a more practical strategy to resolve the conflicts. Confrontation: Confrontation is the last strategy to arrive at certain decisions. The warring groups are asked to express their viewpoints. The mutual understanding is developed, subordinate-superior relationship is emphasised and problem-solving meetings are organised All the groups having differences are brought together to express their opinions and reveal the causes of conflicts in the meeting. CHlCJ

Chapter 11

CONFLICT IN ORGANISATION 1. 2. 3. 4. 5. 6. 7.

INTERGROUP CONFLICTS INTRA-INDIVIDUAL CONFLICT

INTERPERSONAL CONFLICT ORGANISATIONAL CONFLICT CONFLICT PROCESS NEGOTIATION RESOLUTIONS

Conflict has positive as well as negative consequences on the organisation. Ifthe differences are impersonally treated and discussed at common platform, the conflict gives positive results. Similarly, if the conflicts are personally taken and become a sources of ego, status and interests points of differences; negative results are observed in the organisation. The basic question is what is conflict and how is it resolved. Conflict arises when a person or group negatively affects or is about to negatively affect the interests of other person or group. Conflict is incompatibility of goals and difference or disagreement over a fact. Conflict arises when interpersonal relationship which is expected to be productive, co-operative and satisfying, does not fulfil the expectation.

Conflict - Thoughts Conflict in management has attracted a significant position because managers devote maximum of their time in conflict management. One school of thought has argued that conflict must be avoided because it refers to malfunctioning within the group. Another school considers that conflict is natural and inevitable where human behaviour is involved, the third group believes that conflict is positive force in organisation as it helps effective performances. These approaches of conflicts are known respectively traditional approach, human relation approach and interactional approach. Traditional approach believes conflicts as violence and distinction. It is viewed as negative instrument of performance. Conflict is the outcome of certain malfunctioning of organisation such as poor communicaticn, lack of trust, failure of management to meet the aspirations of and so on. The causes of conflict are revealed to avoid the conflict because conflict avoidance increases performance. Human approach refers to conflcit as necessary part of an organisation. Conflict is accepted as inevitable part of organisation. It is not avoided

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but it is directed towards higher performance. The conflict is to be managed by the management for its positive results. The third approach i.e. interactional approach encourages conflicts for converting them into force. Employees are encouraged to express their views so that the reasons of differences are brought to the surface. Employees are developed to understand their viewpoints so that they can improve themselves. They should be self-critical and creative for improving their respective performance. This approach believes to minimum level of conflict as essential for performance, some conflicts are helpful for performance. These are known as functional conflicts because they are constructive and essential part of an organisation. On the contrary, there are dysfunctional conflicts which hinder the performance of an organisation. The nature offunctional or dysfunctional conflicts depends on situation. In one situation a conflcit may be functional while at other situation, the conflcit may be dysfunctional. No one level of conflict is acceptable always, it depends on the circumstances whether the conflict would be helpful or hindering the performances. Impact of conflict on individual and groups are almost alike. The conflicts arise at different levels. They are viewed accordingly for resolving them. Intergroup conflict, intra-individual conflict, interpersonal conflict and organisational conflict are discussed systematically.

INTERGROUP CONFLICT Intergroup conflict is considered inevitable as the group interactions are essential for organisational performances. The ideological differences make or mar their performances. Conflict is functional or dysfunctional. If it is helpful for achieving organisational goal; it is functional and when it is detrimental to achieve the goal; it becomes dysfunctional. The differences caused by personality and leadership give negative results to the organisation. The intergroup conflict is caused by goal incompatibility; differences in decision-making requirements and performance-expectations. Goal incompatibility is observed because of time and goal orientation and barriers to goal achievement. Decision-making differences are created because of task uncertainty and non-availability of resources. The interdependence ofthe groups creates performance differences. The conflict is treated through avoidance, defusion and confrontation. Intergrol:lp conflict is fully discussed in the previous chapter of inter-group behaviour. INTRA· INDIVIDUAL CONFLICTS Management tries to achieve goal through motivation and co-operation of all employees. Employees are expected to perform their respective roles. But, in reality, employees having different needs and roles are enable to co-operate with management. There are positive and negative aspects of goal compatibility which cause conflicts. Intra-individual conflicts arise due to frustration, goals and roles. Conflict due to Frustration Frustration occurs when expectations are not fulfilled. There are several barriers to achieve the desired goals. These barriers create frustration. The employees react to the barriers and resort to aggression, withdrawal, fixation and compromise techniques. The expectation arises out of need deficiency, when employees feel need, they develop drive to achieve the goal passing through barriers. Barriers: The drive to achieve goal is prohibited through barriers which may be overt and covert. Overt barriers are outward and physical. They influence the goal achievement process and create frustration. Similarly covert barriers are inward and mental. Learning helps reduce covert barriers.

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Need Deficiency

I

Expected Goal

II D'nve I

I

i

Aggression withdrawal Fixation

Barrier

Compromise

1. Overt

2. Covert

-'"

•

Frustration

Fig. 11.1 Frustration and Barriers

Defence Mechanisms: The employees resort to defence mechanism for reducing the impacts of barriers. Firstly, they attack on the barriers and abuse the barriers for non-achievement of goal. Secondly, they withdraw from the barriers and become restless to achieve the goal. Thirdly, they fix and try again to attain the goal. Fourthly, they compromise with the situation if they are unable to achieve the goals and satisfy themselves with whatever is achieved. Frustration leads to non-compliance ofjob and non-achievement of goals in the beginning. If employees are motivated to reduce the frustration, they try harder to overcome the barriers. They direct their functions to achieve the goals. The frustration is unhealthy only when it dominates the person concerned. Frustration should not cover or overpower the employees, otherwise they are led to non-performance. Frustration should develop adjustment process. People should try harder to overcome the frustration and the cause of frustration i.e., barriers to goal. Thus, frustration may be positive as well as negative to achieve organisational goals.

Goal Compatibility Employees face intra-individual conflict on account of goal incompatibility. Frustration arises where a single motive is blocked before the goal is achieved and in goal conflict, two or more motives are blocked in the process. The goal conflcit is witnessed in approach-approach conflict, approach-avoidance conflict and avoidance-avoidance conflict. Approach-Approach Conflict: Approach-approach conflict relates to two or more positive but exclusive goals. Approach-approach conflict is the case of cognitive dissonance. It is the state of psychological discomfort. Persons motivated with dissonance are highly motivated to reduce or eliminate it. Choice between two goals become more difficult. It causes goal conflict. Approach-Avoidance Conflict: In case of approach-avoidance conflict, both the positive and neg~tive characteristics are observed. Individuals are sometimes motivated to achieve the goal and at other times are motivated to avoid the goal. When approach-avoidance takes place, the employees are in anxiety to take corrective decisions. Internal conflict and stress are visible in such cases. Approach-avoidance conflict create health problems to employees. Avoidance-Avoidance Conflict: Avoidance-avoidance conflict reveals two or more negative but mutually exclusive goals. It is easily resolved. Many employees avoid the goal achievement approach in case of goal incompatibility. People may leave the organisation if they are unable to get the adequate salary. It is an example of avoidance conflict. Goal conflicts are used to motivate people. The realised conflicts are resolved and people are motivated to goal achievement through building compatibility.

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Role Conflicts Role ambiguity is another cause of intra-individual conflict. People play their respective ro~es in organisation as per their status and cadre. An employee has also to perform different role outside organisation as father, son, teacher, friends and so on. Conserving the different roles to be performed in and outside organisation; it becomes difficult for an employee to perform all the roles successfully. Conflicts are bound to arise if organisational roles are more important to be performed than the multiple individual roles in organisational behaviour. Many a times, employees are unable to understand clearly their respective roles. They perform whatever they find convenient. Expectations from the employees to perform their role also create conflicts because many a times expectations are not fulfilled. Employees expect that their supervisor would be kind-hearted and helpful man but, he may belie all the employees by his crude behaviour. Supervisor has to satisfy his manager as well as employees. His job involves intra-role conflict. He has to perform jobs of a manager and an employee. He feels ambiguous while playing his role which cause inter-role conflict. Role ambiguity is accompanied with role authority. The supervisor, for example is unable to understand his authority to discharge his duties. The role ambiguity creates conflicts which are resolved initially by making the employees aware oftheir roles, acceptances of conflicting pressures, ability to tolerate stress and thorough personality development. Interpersonal Conflict Interpersonal conflict is visible in organisation and group behaviour as employees have to act and react with other employees. The interdependence causes interpersonal conflict. The interpersonal conflict is analysed under two heads viz., transactional analysis Johari Window and strategies for interpersonal conflict resolution. Transactional Analysis Transactional analysis refers to people's interaction with reference to social transactions .. Transactional analysis was developed by Eric Berne for psychotherapy in 1950 which was published in book form as 'Games People Play' in 1964. This analysis provides better understanding of how people react with each other while communicating and behaviour in society. Thomas Harris' book, I Am OK - You are OK has popularised transactional analysis. Behaviourists have discussed transactional analysis under three main heads: Ego States Stroke and Game, and Life Positions. Ego States: Ego states refers to the psychological analysis through which people interact. Ego has also been discussed by Freud for personality development. Ego is reality in between morality ofId and more practical Supergo. It keeps the impulsive Id and the conscience of the Superego within control. Transactional Analysis uses this theory for identifying three important ego states: Id (Child), Ego (Adult) and Su~erego (Parent). Child State: This is the state in which a person acts like an impulsive child. The child state is known as submissive, confronting, insubordinate, emotional, joyful or rebellious. People develop this state as childhood experience. They possess all these qualities which are revealed spontaneously. People behave like a child when child state is realised by them. They behave emotionally and rebel agaiJ;1st the supervisor when constantly hit by the latter. It is characterised by very emotional and intimate behaviour. Employees under this state, generally say "whl'ltever you say, I will follow, » "You blame me only again and again,» "I am mad because of treatment of my ill-tempered boss.» These are numerous examples of child state (Id) which should be properly used for motivating employees.

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Adult State: In this state people are rational, calculative, factual and matured. People in this state gather relevant information, carefully analyse it, interpret, develop alternatives and select best choices. It is characterised as fairness and objectivity. Emotional and dominant features are not exercised under this state. For example, "This is high thinking, we should go into reality." ''We do the kind of job that we need." Parent State: It is protective control, critical, instinctive and controlling and nurturing. It is more of superimposing rather than following the real problems. People are domineering. Many a times people are overacting and desire protective, loving behaviour by their subordinates. They treat others as children and behave maturely. Rules and regulations are to be followed strictly. Many times, they are sceptical towards others' capacities. The superego is observed in this state. For example, "Why do you not follow the rule?" "Be careful to rules" and like other warnings and instructions. People while behaving with other members ofthe society use any or all of the sates described above. These states are effective for developing interpersonal relations. Transactional Analysis based on states are effective and useful. There are positive and negative features of the transactional analysis. The ego states are observed not only by words used but also by tone used, posture indicated, gestures expressed and faces mentioned. Transactions based on Ego State People using all the ego states are inclined to use one state predominantly. They commonly use one of the three states although all the skill states are essential for effective interpersonal performance. Meanwhile, it should be noted that one state position may contradict other state position. One person expects response from other person in what state he requires the answer. Transaction involve state position that may confirm or conflict the behaviour. Transactions can be complementary, crossed and ulterior. These are basic factors of transactional analysis. Complementary Transactions: Complementary transactions occur when the receiver and sender of the ego states are in reverse order. The stages of complementary transactions are: (1) describe the behaviour; (2) express the feelings, empathise; (3) negotiate a change; and (4) empathise and (5) indicate consequences. The manager asks the employees to obey his orders but the employees deny their order for the time being although they perform ultimately putting obligation. If manager transacts in parent-to-child pattern, employees tend to behave from a child state. If the manager behaves adult-to-child state, employees are unwilling to oblige the manager. Adult-to-adult state helps employees and manager to sit together with employees to sort out the problem. Adult-to-adult transactions are more effective in organisation. Similarly parent-child complementary transactions are also helpful for organisational performance. Crossed Transactions: Unlike complementary in transaction; crossed transactions are nonparallel. Crossed transaction occurs when the message sent by one person's ego state is reacted to by an incompatible, unexpected ego state on the part of the other person. For example, the manager behaves in parent-to-child ego state while the employees react only as adult-to-adult ego state. The employees are at other state although manager tries on basic ego state. Manager explains the message and transactions in a parent ego state or adult ego state; but employees receives it in different ego state and behave differently. Ifmanager asks to perform a job, the employees do not follow him. They may flatly refuse that they are unconcerned with the job. Communication ends to block the accomplishment: conflicts follow soon after the crossed transactions. If both the manager and employees transact at the same ego state; problem may not arise. But in case of crossed transactions; conflicts are bound to occur. Crossed transactions

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are also known as non-complementary transactions. Complementary transaction helps increase cordial relationship. Complementary Transactions

IManager H

Employees

Crossed Transactions

I IManager H Employees I IManager H

I Parent I Child

mterior Transactions

IParent

I Child

Employees

I

I Parent

Child

Fig. 11.2 Transactional Analysis

Ulterior Transactions: The transactions between employees and managers are influenced by other factors than the ego state although ego state is realised in the transaction. The misunderstanding is observed. For example: Manager says that the employees are free to reach him at any time; but the employees feel that the manager is giving sweet-poison and is unwilling to solve the problem. The manager is behaving apparently in parental way although the employees realise it in adult ego state as shown in Fig. 11.2. . Life Position: Ego state helps understand the life positions. One's life position tends to dominate a person's transactions other positions are exhibited from time to time in specific transactions. For example, "I am not OK - You're OK"; "I am not OK - you are not OK"; "I am OK - you are not OK"; "I am OK - You are OK." The adult to adult transaction is " I am OK You are OK." Any parallel ego state helps maintain cordial relations. Positive and negative attitude towards oneself and towards others decide the level of conflict. The crossed attitude increases conflict. Application of Transactional Analysis Transactional analysis have three ego states and three types of transactions viz., complementary, cross and ulterior. The transactional analysis is applied in different forms which are known as stroking, leadership, conflict resolutions, benefits and game play. Stroking: Transactional analysis includes stroke which means simply that beginning in infancy and continuing throughout their lives, people need cuddling; affection, recognition and praise. Everyone needs the stroke i.e. recognition. If people do not get positive stroke i.e. self recognition and praise; they seek negative strokes. Stroke is outgrowth of child experience. It is reinforcement and people behave with stroke i.e. strokes or recognition is desired and required for healthy behaviour. The recognition or stroke may be physical, verbal or eye contact. Employees are patted by manager in recognition of their performance. The parent to child stroke is more effective for motivating the employees. Adult to adult communications is also visible in healthy atmosphere. Stroke or recognition may be at certain condition. For example, manager

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shows gratitude to employees at their success. Unconditional strokes are presented without any conditions. Leadership: Manager with dominant attitude become parental. He behaves more as an autocrat than a real parent. Leaders should adopt parent-to-child ego state for effective performance. Adult to adult approach gives more leeway to employees in performances. Conflict Resolution: The parent ego state leads to follow up of rules and regulations. Child state avoids conflicts. Employees practising win-win to outcome uses "I am OK - You are OK" state. Conflicts are avoided through parent to child state and also with adult to adult ego state. The cross ego state creates conflicts which should be smoothened through parent and child approach. Benefits: Transactional analysis based on parent and child concept creates congenial atmosphere. Benefits are observed in such situation. Improved interpersonal communication creates benefits. Game Play: Transactional analysis discusses how people use their time. People learn withdrawal, use the time intimacy development. Games people play in their lives shape the atmosphere. People working with the spirit of game, get success in life. They are ready to accept win-lose position. They use aggression, withdrawal, fixation and compromise in interpersonal behaviour.

Johari Window The interpersonal behaviour has been studied by Joseph Luft and Harry Ingham besides transactional analysis. In the name of Joseph and Harry (Johari) has been developed for analysing interpersonal conflict. They have analysed interpersonal conflict and suggested ways of solv~ng conflicts. They have emphasised on self and others viz., selfis related to 'lor me' and others are concerned with 'You or they'. The interaction of ' I and You' is studied under Johari Window. One should know oneself and otherselves. Knowing self includes the knowledge ofthe way they are coming across, the impact they are having with the people they are trying to influence. One should know oneself because many times, people are unable to understand themselves. People related to him should provide feedback about their behaviour and related attitudes. There are four main components of Johari Window: Open self, Hidden self, Blind self and Undiscovered self. These are known as four windows which are respectively known as public, private, blind and unknown arena. Known to others

Unknown to others

Known to Self

PUBLIC

PRIVATE

Unknown to Self

BLIND

UNKNOWN

Fig. 11.3 Johari Windows

Oneself is openly known by person in open self. He knows clearly about himself and otherselves. There is openness in behaviour and attitude. Transparency is observed in their behaviour. It is called public arena. It has less scope of interpersonal conflict. Under hidden self, one knows clearly about oneself but does not understand others. Person remains hidden because offear of being known by others and being criticised. In this case, person keeps his feeling secret and does not like to reveal to others about his feeling secrets and does not like to reveal

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others about his feelings and desires. It is called private arena. It creates doubts and chances of interpersonal conflicts are inc~eased. The others in the system are not picking up non-verbal and verbal responses. The blind arena is that where one is not fully known to oneself but is known to others. For example, the leader is unknown to self but is known to others. It is unknown to the leader because followers are unwilling to share feedbacks or communicate with the leader. The leader shuts his eyes for the available data or information knowingly or unknowingly. The person or leader is unintentionally hurting the feelings of others whereas the others are hesitating to tell the truth to the person. There is no threat of conflcit at present but it aggravates the problems and has potential threats of interpersonal conflicts. In case of unknown arena, the person does not know about himself and others. He is in dark about the real problem. The unknown facts may be seriously influencing the situation. Doubts increase and conflicts are bound to incur because of misunderstanding. Johari Window points interpersonal styles and possible interpersonal conflict situation. It helps to solve the conflicts through feedback, disclosure, self-perception and late strategies. Feedback: The configuration ofthe four arenas is directed through feedback. The leader in an organisation needs verbal/non-verbal feedback from his followers. The subordinates should be encouraged to provide feedback. It is the willingness of others to be open and frank to provide fair and correct feedbacks. Public arena i.e., known to others and known to self provide feedback to blind arena i.e. known to others and unknown to self. Thus the superior gets feedback from others and also from public arena. Subordinates express their feelings and perceptions. Feelings should be heard and accepted. It removes the doubts and misunderstandings. Subordinates should be encouraged to wish and say something. This increases mutual trust and confidence. Without feedback, managers are always in dark and do not knowhow subor"dinates should be treated as family members. Feedback reduces the blind arena of manager. Feedback has been more effective for solving the problem.

~

to

Known to others

Unknown to others

1 Know to Self

PUBLIC

PRIVATE

+Unknown to Self

BLIND

UNKNOWN

11 _t _,_J __ rz.. 1 - ; - - - - - - -

Fig. 11.4 Feedback Process

Disclosure: The other process of Johari Window is disclosure i.e., the extent to which the leader willingly shares his feelings with others. The subordinates should be looked from their angles. Then, the manager can really understand them and they can understand his feelings. The potential conflict is reduced by becoming more trustful of others and disclosing information about themselves. It is to alarm that all disclosures are not useful. Precaution should be exercised while disclosing the data. Disclosure is effective only if all the people viz., managers and employees are at par. Their feelings and attitudes are comparable. They have mutual trust and confidence. The disclosure and feedback decrease the unknown arena by black spot as exhibited in Fig. 11.4. The public arena is increased by decreasing blind arena through feedback and private arena through disclosure. It increases the interpersonal behaviour and creates healthy atmosphere in the organisation. In other words, the area of known to self and known to others should be increased to create congenial atmosphere in the organisation.

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Disclosure

-------r------Known to others Unknown to others

~

l~ +

I

Know to Self

-=--=-

Unknown to Self

PUBLIC

I

- - - - - - - ~L1 BLIND

PRIVATE UNKNOWN

Fig. 11.5 Effect of Feedback and Disclosure

Self Perception: Self perception of manager means knowing him well as he himself enters the public and private arena. It refers that his leadership style is known by him and his subordinates. The Fig. 11.5 gives an indication that his leadership style is spread in public and blind arenas. The leadership style is known to the manager as well as to others making public arena doubly covered, which is known as Lead Self. It is assumed that the perception of self and others are known equally by them. If the self perception is more than the perception by others, the public arena will be smaller and vis-a-vis is also true as expressed in Fig. 11.6. In Fig. 11.6A self perception is more than others. So, the Lead-Self is darker in right upper side of the block 2. In Fig. 11.6B self perception is less than others. So, the Lead-Self is darker in left uppers ide of the block 2. The disclosure by manager and his subordinates removes the doubts and misunderstandings. It strengthens the interpersonal relations. Known to others

Unknown to others

Know to Self

PRIVATE

Unknown to Self

UNKNOWN Fig. 11.6 Self-Perception

A : Self> Others Known to others

Known to Self

B : Self < Others Known to others

Known to Self

Block-!

Block-2

Fig.11.7 Influence on Public Arena at inequality of Perception

Late Strategies: If anything has gone wrong, the manager has to repent for them. Merely repentence and feeling sorry for the mistake cannot cure the problem. He should try to modifY in future. It is never too late to amend the situation. The manager has to amend the situation as early as possible. Manager's immediate attention will appease the employees. The earlier the attention, the more effective will be the modification process•. Many a times, manager has to devote maximum for the improvement of the employees. Concentrated efforts are required to

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amend the employees; otherwise, other employees will be betrayed. Manager should feel happy at the amendment of the mistake rather than shedding only -crocodile tears. The National Training Laboratory (NTL) of USA have recommended seven guidelines for effective interpersonal relations. The manager should be descriptive rather than judgemental and be specific ratker than general. He should deal with things that can be changed, give feedback when it is desired and consider the motives for giving and receiving feedback. The feedback should be given at the time the behaviour has taken place and its accuracy can be checked.

Strategies for Interpersonal Conflict Resolution Besides transactional analysis and Johari Window, other strategies are used for resolving interpersonal conflict. They are lose-lose; win-lose; win-win, role-set, linking pin and resolving conflicting groups. Lose-Lose: Under lose-lose strategy, both parties lose, which may take several forms. Middle path is taken to resolve the conflicts wherein both the parties lose to certain extent. Sometimes, one party partially pays off the loss suffered by other party. Arbitrators or judges are appointed to solve or decide the problem, wherein both the parties suffer. Lose-lost strategy shows the inactions of both the parties because they fight to lose. It is not a wise step to resolve, but there is no alternative left before resorting lose-lose strategy. ' Win-Lose: The parties are fighting to get success. But, one of them wins while other loses the struggle. For example, manager is successful in suppressing the employees' demand or employees are successfully getting their demand redressed with the loss of money by the organisation. Companies have to pay more bonus and salaries to the employees. Conflicts are judgemental. Win-lose strategies have functional and dysfunctional consequences. It is creating hostile atmosphere because the losing parties keep in mind the loss of battle and take revenge when situation arises. Win- Win: Both the conflicting parties win the battle. No one is loser. Creativity, productivity and profitability are to increase by mutual agreement. Manager asks the struggling employees to raise productivity for getting more bonus for which they are on strike. Production and profitability link bonus are the outcome of win-win strategy. It eliminates many of the dysfunctional factors. It is associated with better judgement and experience and wise parties. Management should try to exercise win-win strategies of resolving the conflict because it creates healthy atmosphere in the organisation. Role-set: Many interpersonal conflicts are due to overlapping and ambiguous role-set. Robert L. Kahn is closely associated with the role-set theory of organisation. He suggested rearranging of overlapping and interlocking role-sets for resolving the conflicting problems. Kahn and his associates have suggested that conflicting and ambiguity tend to move with the higher rank of focal person. Linking Pin: Each group has linking pin who are approached for resolving the conflicts. It has upward origination. A trade union is linked with a political party which is headed by a person. There may be horizontal linkage too. The linkage for communication, influence, motivation and co-ordination are considered for resolving the conflicts. In group and outgrow linkage is observed in Indian business houses. . Resolving Conflicting Groups: The group conflicts are resolved through avoidance, defusion, containment and confrontation. Avoidance strategy keeps the conflict from surfacing by ignoring the conflict or by imposing solution. The defusion strategy is to cool ofl" the emotions and hostilities

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of the conflicting parties through their mutual co-operation. Under containment strategy, some conflcit is allowed to surface while containing other by spelling out their solutions. Confrontation strategy brings all the issues into the open. The fighting group directly confronts the issues. They ultimately resolve the problems through mediators.

ORGANISATIONAL CONFLICTS Organisational conflicts include intraindividual, interpersonal, intergroup conflict and structural conflict. Except structural conflcit, all other three conflicts have already been discussed in this chapter. Multiple organs such as production, marketing, finance, personnel, subordinatesupervisor relations and customers' expectations are creating problems and conflicts. The causes of organisational conflicts are incompatible goals, incomparable means, incompatible resources allocation, problem of status incongruities and difference in perceptions. Many of the causes are psychological. Types of Organisational Conflicts The organisational conflicts are hierarchical, functional, line-staff conflict, formal-informal conflict. Hierarchical conflicts refers to the conflicts between various levels of the organisation. For example, conflicts between top management and middle management. Conflicts between management and employees are also related to hierarchical conflicts. Functional conflicts are related to conflicts between functional departments. For example, conflict related to production and marketing management conflict related to finance and personnel management and so on. Line and staff conflicts are concerned with line personnel and staff-members. Conflicts related to formal and informal organisation are discussed under formal-informal conflict. The organisational conflicts include several causes of conflicts such as level merit and experience of different employees in the same cadres. Project and material organisations create conflicts because of inherent problems. Role of Conflict in Organisation Conflict in organisation is not always problematic. Many times it paves ways for development. When it is suspected to be distinctive, it becomes a problem. Conflict is avoidable. It is caused by trouble-makers who should be brought to the surface. The hypothetical views of management creates conflicts. Need hierarchy is also considered important factor for conflicts. _Change is the basic cause of conflict which should be smoothened and properly understood. Strategies for Managing Organisational Conflict Conflict is resolved through bargaining, bureaucratic and system approach. Bargaining refers to increasing the available resources or decreasing the demands of the conflicting parties. The interest of parties are subserved through bargaining. Bureaucratic approach deals with vertical authority which is exercised to solve the problems. Rules and regulations are strictly exercised to control the people. System approach deals with co-ordination of horizontal employees. Incentives and learning process are used for solving the problems. Organisational development technique is used to develop and make employees' conscious of the organisational problems to reduce pressure of conflicts. Attempts are made to recognise the conflicts mutually by both the parties and arrive at agreeable solutions.

CONFLICT PROCESS Conflict process is observed under five stages: potential opposition or incompatibility, condition and personalisation, intentions, behaviour and outcomes.

Conflict in Organisation

I Stage I

I I

218

I

Potential Opposition or Incompatibility

~ ~ ~ I Communication, Structure, Personal Variables I

I Stage II I

Cognition and Personalisation

I

+ + I Perceived Conflict, Felt Conflict I

I Stage III I

.

IN TE N T I

~

o

I

N S

~

Competing, Collaboration, Avoiding, Accommodating, Compromising

I

Overt Conflcit : Party's Behaviour Other's Behaviour

Group Performances

Group

Decreased Performances

Fig. 11.8 Stages of Conflict Process

The conflict-process has been discussed stage-wise.

Stage I : Potential Opposition or Incompatibility Under first stage conditions are created for arising conflict directly or indirectly. These conditions are known as sources or causes of conflict. They are communication-structure and personal variables. Communication: When subordinates are not given clear instructions, they are unable to perform the job accordingly. It creates conflict between subordinates and superior. Sometimes dual communication creates confusion which leads to conflict. In absence of adequate and proper communication, conflicts are bound to take place. It is observed that the superiors are at fault for not communicating properly. The status, education and experience of the juniors should be considered while communicating with them for their proper ~nderstanding of the instructions.

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Similarly poor communication leads to conflicts. Open and frank communication reduces the conflict. Insufficient exchange of information, noise in communication channel and semantic difficulties are barriers to communication. Semantic difficulty arises as a result of differences in training, selective perception and inadequate information. Too little or too much communication leads to confli~t. The channel shape of communication also influences the conflict potential. Filtering process of communication and its divergence influence the possibilities of conflict. So, communication process should be established clearly, correctly and adequately to avoid any possibility of miscommunication. Structure: The structure of the organisation creates conflict potentials. Structure includes size, degree of specialisation, tasks assigned to group members, goal-compatibility, reward system, interdependence of groups and leadership styles of the organisation. Larger the group, more possibilities of conflict. Jurisdictional ambiguities cause intergroup fighting. Goal compatibility is an important source of conflict. Interdepartmental goals are also causing conflict. Group goal diversity and scarcity of resources create possibilities of conflict. Participation increases conflict because of diverse views. Reward system increases inequality which is a source of conflict. Leadership style stimulates conflict. Tight and close observation becomes cause of conflict. Personal Variables: Employees' personal views and feelings are divergent. They disagree many times. Personality and people's clashes are observed. If a supervisor is disliked, h.s voice, dress, smile and actions are hated by subordinates. Personality characteristics, person's individual value systems, idiosyncrasies and differences may also create conflicts. Supervisor's authoritarian and dogmatic approaches lead to potential conflicts. Values systems, caste factors, social status, belief, regional and religious differences are also creating conflicts. The potential conflicts should be avoided by people of organisation.

Stage II: Cognition and Personalisation The potential of opposition or incompatibility are actualised in the second stage. The potential or causes of conflict will create conflict only when they are recognised and personalised. If the causes of conflict are not realised or personalised; the causes do not lead to conflict. Antecedent conditions can lead to conflict when they are made aware of by the parties. Conflict, realisation precedes perception. If any or all the parties are made aware ofthe existence ofthe conditions; conflict is perceived. Perception becomes behaviour when it is recognised. The learning-behaviour process viz., perception-attention-recognition-translation-reinforcement and behaviour is also applicable in the conflict-cognition stage. At felt level, employees become emotional experience anxiety and are pinched with tension and frustration. Hostility is created consequently. Oognition and personalisation is important for stage because conflicts can be avoided at this stage by mutual understanding. If parties develop wisdom and responsibilities prevail at the stage; the conflict will not take place. This stage delineates the possibilities of settlement. Perception should be brought to the positive level because negative perception creates mistrust and misunderstanding. Positive perception increases confidence and credibility which are initially essential for avoiding and reducing conflict. Stage III: Intentions Intentions are intervention between people's perceptions and their overt behaviour. It directs people to behave in a specific way. The behaviour is governed by intentions of a person. Wrong intentions to the party creates conflicts, co-operativeness and assertiveness are governed

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by intentions. K. Thomas has described how co-operativeness and assertiveness are providing base for specific behaviour. Co-operative

Unco-operative

Assertive

COLLABORATING

COMPETING

Unassertive

ACCOMMODATING AVOIDING Fig. 11.9: Co-operative and Assertive Behaviour

Collaborating: In collaborating behaviour, both the parties co-operate to resolve the conflicts. Co-operativeness and assertiveness are observed in this case. Co-operativeness refers to the degree to which one party attempts to satisfy the other party. Assertiveness means how one party attempts to satisfy his own self. Under collaboration, the intention of the parties is to solve the problem by clarifying differences. The various points of the parties are not agreed upon; but some ofthem are accepted after clarifications by both the parties. Win-win strategy is used to achieve the goals of both the parties by seeking valid insights of both the parties. Collaborating intention is helpful for solving the conflict. Accommodating: Conflict under accommodating intention is solved by both the parties. They have co-operative and unassertive attitude. Sometimes one. party appeases other party ignoring his own intention. One party is willing to be self-sacrificing. Intention is to sacrifice one self so that the goal of other party is attained. One party is not assertive. He accepts what other party's attentions are. Competing: Competing intention indicates the situation when one party is assertive and other is uncomparative. A party tries to satisfy his own self, ignoring the interest of other party. For example, employees demand for higher wage irrespective oflosses suffered by organisation. One party is thinking one's self correct and thinks other party at mistake. One is blaming other for the problems. This intention creates conflict and solutions are far away from the parties. Avoiding: The avoiding intention includes unassertiveness and unco-operativeness of the parties. They ignore any problem. The disagreement is not asserted, it is avoided by other party. Compromising: It is a situation in which parties are willing to give up the disagreement. There is no winner or loser. They accept a solution that provides incomplete satisfaction. They do not assert or accommodate. It is mid-way of assertiveness and co-operativness. Intention helps parties in a conflicting situation. It defines each party's purpose. It is not fixed and goes on changing from emotional reaction to the behaviour. The nice forms of intention are observed amongst the employees. It is used to resolve the conflict by adopting a particular strategy. Stage IV: Behaviour Conflict is visible in the behaviour of people. Behaviour includes statements, actions and reactions made by people. The behaviour of conflicting parties reveals the degree of conflict. Behaviour is an overt attempt of intention. However, sometimes overt behaviour is nonpredictable on the basis of intentions. Conflict is subtle, indirect and highly controlled forms of tension which is the outcome of intention over behaviour; it starts from the level of disagreement or misunderstanding which increases to overt questioning or challenging of others and leading to assertive verbal attacks. If follows by threats and ultimatums. The conflict takes ultimate shape of warning parties. Annihilatory conflict is visible at overt efforts to destroy the other

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party. Conflict starts from functional form and reaches to dysfunctional stage. Conflict management techniques are used to resolve the conflict.

Stage V: Outcomes The action and reactions of conflicting parties result in situations which involve consequences which may be functional, dysfunctional and hindering group performances. Functional Outcomes: The group conflict increases dissatisfaction as well as effectiveness. Destructive outcomes are visible in the organisation when group thinks over power the corporate decision. Mismanagement and failure of policy is observed. Many board members are grilled with the decision of resolution of conflict or at the conflict itself. Inactive decisions are observed in conflict. It is observed that conflict is not always destructive. Many times, constructive development is possible. Conflictive is constructive and improves the quality of decisions. It stimulates creativity and innovation. Many times, conflict encourages interest and curiosity among group members. Researches have reveal that conflict creates environment of selfevaluation and innovation. Problems are raised and their solutions are discovered. The blind faith is replaced by logical understanding. Conflict reveals improvement of quality of decisions. The minority views are given due importance. Conflict does not help weak decisions and inadequate consideration. It helps creation of new ideas, promotes reassessment of group goals -increases possibilities of innovation and well-developed decisions. Cultural diversity provides benefits to organisation. Heterogeneity increases creativity, improves the quality of decision, facilitates changes and unique ideas. It is observed that conflict stimulates high achievement. Conflict should be taken in good spirit rather than being suspected as harmful. Even though fighting may be converted into fruitful disagreement and development with cooperative and confidential communication. Dysfunctional Outcome: Destructive consequences resulting outside are considered under dysfunctional outcomes because of several reasons. For example, uncontrolled opposition breeds discontentment. Common links are broken and destructive ideas in. Undesirable consequences are observed, cohesiveness and co-ordination are reduced. Consequently infighting and insubordination are observed in the organisation. Group functionings are put at halt. The functional and dysfunctional outcomes depend on the nature of group. Hindering Group Performances: Functional and dysfunctional conflicts if not smoothened create hindrances to group performances. Many a times, management rejects the ideas of subordinates, which causes inter-cadre conflict. If this conflict is not prevented, the group performance becomes impossible. Many organisations in the west have encouraged conflict because it brings new ideas and innovations which ultimately lead to development. Negotiation Negotiation helps everyone in groups and organisations. It becomes inevitable in organisation. For example, managers have to negotiate with subordinates and seers. Salesmen negotiate with customers. Production managers negotiate with producers. Employees interact with other employees and boss. Negotiation defers interaction with others. It is bargaining. It may be defined as a process in which two or more parties exchange the goods or services. It includes bargaining strategies, process of negotiation and issues in organisation. Bargaining Strategies Bargaining strategies are divided into distributive bar~aining and integrative bargaining.

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Distributive Bargaining: When two or more parties negotiate over the price, it is known as distributive bargaining. It seeks to divide up a fIxed amount of resources. In this case, one party gains and other looses. For example, labour-management negotiation over wages indicates that labour gains higher wage whereas the organisation looses the amount. Each party has certain target which is to be achieved by both the parties with negotiations. Similarly each party has a resistance point. Both the parties negotiate with their target point and resistance point. Where the target point and resistance point intermingles, the bargaining comes in the picture. One party focuses on other's area. They negotiate to arrive at common agreement where one party accepts other party's terms and conditions in its negotiation area. Both parties agree to intervene in each other's areas. In this case one party gains at the cost of other party. Integrative Bargaining: Integrative bargaining is the settlement where both the parties win. It is a win-win strategy. The bargaining creates win-win solution. Sales person bargaining with the customers is an example of integrative bargaining because salesperson is able to sell whereas customers are getting goods or services. Sale on credit is also an example of integrative bargaining. Increasing salary on the conditions of increasing production is also integrative bargaining. The bargaining between production manager and marketing manager to provide extra production is integrative bargaining. It is preferred to distributive bargaining as the latter has win-lose strategy. Integrative bargaining builds long-term relationships and helps create congenial atmosphere. Inspite of its advantages of resource crunch and poor relationship l>etween labour and management. The labour is believed to be untrustworthy whereas management is suspected as exploiting factor. Negotiation Process Negotiation process includes preparation and planning, defInition of ground rules, clarifIcation and justifIcation, bargaining and problem solving and closure and implementation. Preperation and Planning: Negotiation requires proper understanding of the problem, nature of conflict, causes of negotiation and persons involved in the negotiations. The negotiator should clarify for himself the goals and planning of the process. The allied goals must be sorted out to fIx on the actual goal of the negotiation. He must be hopeful to achieve the goal through negotiation. He must decide the Best Alternative to Negotiated Agreement (BATNA). It reveals the lowest acceptable value which is accepted as the minimum achievement level. If any offer is more than BATNA, it is gladly accepted. The strategy is decided accordingly. Definition of Ground Rules: The management should defIne the ground rules and procedures for negotiation. The person willing to negotiate, the time and place of negotiation and procedures to be followed are decided by the management. Parties' initial roles and demands are considered to decide the rules and procedures of negotiation. Clarification and Justification: When initial positions have been decided, the other party explains, amplifIes and justifIes the demands. This procedure should be conflicting but should be completed in a healthy atmosphere. It is the stage of understanding each other. They are being educated on other's problems and potential solutions. CertifIcation and documentation are used to put forth with each other's point. Bargaining and Problem Solving: The bargaining process is a give and take process. Both the parties agree on problem solving. Some dislikings are avoided and others are pleased. Bargaining parties have to work cool and calmly. Good agreements are appreciated. Closure and Implementation: The agreement is fInalised at this stage. The agreed solutions are implemented. Monitoring and implementing process is decided. Labour-management

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relationship is developed. The problem is solved and new agreement is arrived at for developing the employees and organisation.

Issues in Negotiation Negotiation involves different issues e.g. biases that hinder negotiation, role ofpersonality traits, effect of cultural differences, role of third party negotiator. Biases Hindering Negotiation: Biases hindering negotiation are irrational escalation of commitment, mythical fixed pie, anchoring and adjustments, framing negotiation, availability of information, the winner's curse and over confidence. Many a times, people are misdirected which can lead to wasting a great deal of time and energy. The conflicting parties assume fixed pie i.e., they assume that they will gain at the cost of the other party. It is not essential that they gain only at other's cost. There may be possibility of win-win solutions. People do not b:rive much importance to their opposite party. Effective negotiation minimises Lhe anchoring. Overt information may influence negotiation. It is observed that people rely more on available information whether they are reliable or not. Sometimes conflicting parties experience winner's curse wherein the winner feels that he has won much. It hinders the negotiation. Post-negotiation actions are viewed differently by employees. Some ofthem feel that they have not gained much as they could gain more than expected. Role of Personality Traits: The conflicting parties view each other's personality and guess what may happen in negotiation. Researches have revealed that personality-negotiation relationship has no significant impact on outcomes. Conflicting parties generally concentrate on the situational factors and are depending less on personality traits. Cultural Differences: Negotiation is influenced by cultural differences. Cultural traits have positive or negative influence. In India, certain families and castes are submissive. They accept the negotiation whereas some castes are hostile always. It requires variable treatment with different castes and cultures. It influences the amount and type of bargaining. Third-Party Negotiations: When both the parties are unable to negotiate, the role of third party is realised. There may be four types of negotiators viz., mediator, arbitrator, conciliator and consultant. Mediator uses persuasion and suggestions; mediators are acceptable to both the parties. They are unbiased and neutral. The role of mediator has been effective in Indian situation. Arbitrator is given authority for negotiation. The decision ofthe arbitrator is binding on both the parties. He dictates the agreement. It results in settlement. Conciliator is a trusted party who is adjudicating the case. Decision is acceptable to both the parties. Labour Tribunal, Panchayati Raj etc. are the examples of conciliation. Consultant facilitates the problem solution. He works with each other. He gives complete information to both the parties. His suggestions are readily accepted because he advises them considering their attitudes, feelings and perception. RESOLUTION Conflict is resolved through conflict management which includes conflict resolution techniques and conflict stimulation techniques.

Conflict Resolution Techniques Conflict resolution techniques involves problem solving, superordinate goals, expansion of resour~s, avoidance, smoothing, compromise, authoritative command, altering the human variable and altering the structural variables. Problems should be identified and resolved through open discussions by the conflicting parties. The conflicting parties are told that their

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co-operation can achieve the goals. Without their co-operation; no goal or purpose can be achieved. Ifparties are conflicting on resources, efforts should be made to expand the resources. It suggests win-win solution. Both the parties are told what they can achieve if resources arc expanded. In case the resources are not expandable; the parties are told to reduce their differences. Compromise between the two parties are essential. Management should exercise its authority to resolve the conflict. Parties should openly communicate each other's desire to resolve the problem. Behavioural change is essential to develop the employees for solving the problem. Job design, redesign, enrichment, rotation and other structural motivation are essential to resolve the conflict.

Conflict Stimulation Techniques Conflict stimulation technique involves communication, mediators restructuring the organisation and confronting techniques. If conflict is not easily resolved, messages are sent to increase conflict level. The mediators from outside are brought to resolve the problems. Both the parties have entrustment in the mediator. They modify their attitudes, values and styles of functioning. Rules and regulations are changeu to help the parties. Interdependence and interaction are developed to strengthen Lheir ties. Confrontation is allowed to take its own course if the conflicts are not resolved through several efforts. QQQ

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PART II

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Chapter 12

POWER AND POLITICS 1. 2. 3. 4. 5. 6. 7.

DEFINITION BASES OF POWER DEPENDENCY POWER TACTICS POWER COALITIONS POWER PERCEPTION PROFILE POLITICS

Power in corporate sector is different from power in public administration. Power is a status for management to manage the organisation. Manager influences his subordinates by the use of his power. It is important to understand the way a manager uses his power for understanding the behaviour of employees because the method of using power influences the organisational behaviour. It is essential to allow that much power which is helpful for maintaining congenial atmosphere in the organisation. Power is a natural process in management system. It should be known how the power is acquired and exercised in the organisation to monitor organisational behaviour. Power corrupts the person possessing it. He misuses his power for personal gain. Such situations are not rare in an organisation. There is a need of proper guidance and control on the exercise of power. Power should be properly understood in the light of definition, bases of power, dependence, power tactics, coalition, power perception, profile and politics.

DEFINITION Power is a capacity to influence others. It is the potential that becomes effective for management and develops dependency relationship. It provides discretion to behave differently. Power increases potential capacity to influence others. It creates dependency of the person who is being influenced by the power possessor. Managers or business leaders are given onus to manage the organisation. Dependency is another form of power. The person who is dependent on other is influenced by latter's power. It is also observed that powerholder has discretion of choices within the power premises. It does not provide unlimited capacity to influence others. In a business organisation, power is used to achieve organisational goal. The leader influences the employees and makes them dependent on his advise for achieving the goal. He prescribes the job design, job rotation, group norms, roles and regulations for attaining group goal by the

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employees. Power is a means of attaining, group goals through facilitating the employees to perform their respective jobs. It makes power holder superior to power dependents. It creates hierarchy between leader and led. Powerholder influences downward hierarchy. It cannot influence the horizontal and upward cadres. The leadership style depends on the quantum and momentum of power. Leader's personality has a great role in exercising the power in a specific manner. It influences the management style and behaviour in an organisation. The co-operation of employees depends on the method of commanding them with the use of power. Moreover, the leader is guided and directed to discharge his duties and responsibilities with the use of a particular amount of power. It has been observed in an organisation that leaders who understand or know how to use power are more successful than those leaders who are unwilling to use their respective power. The impact of power is assessed by the leaders who effectively use them in managing an organisation. Power has been properly laid down in many organisations to avoid its misuse. When power is legitimised, it becomes authority.

BASES OR SOURCES OF POWER The power comes from a source or base. It comes in a particular form. It is being utilised in a specific manner. Social psychologists John French and Bertram Raven have described five bases or sources of power which are Coercive Power, Reward Power, Legitimate Power, Expert Power and Referent Power.

Coercive Power In India, employees are unwilling to work on their own unless they have certain fear of punishment. It needs strong directive behaviour. Coercive power is necessary to engage effectively the labourers. Coercive power is based on fear. Many illiterate employees act out of fear of negative results that might occur if they fail to comply the instructions. Coercive power rests on the application or threat of application of physical sanctions such as infliction of pain, generation of frustration and restriction of movement. If employees are unable and unwilling to perform; they are fired, transferred, demoted or use of force is made and so on. They avoid these unpleasant treatments by following the orders of their bosses. Coercive power is helpful to get things done easily by the supervisors and managers. But it is misused by them to achieve personal gains. Therefore, it is said that coercive power is most often used, most often condemned and most difficult to control as it is the power to hurt others. This power has negative reinforcement. It is generally used for the lay person. Coercive power is used to have psychological impacts on others. The fear psychosis is the backbone of this power. It is used to bully, humiliate or hate others. People like to avoid these unpleasant tasks. Management in India directly or indirectly use this power to get the objectives achieved. Expectancy theory is applicable in this context because employees continue to work with hope of not getting punishment. They know that they would be punished if they do not work or do not follow the orders of superiors. There is fear of punishment if they do not follow the rulers, directives and instructions of bosses. So, they work smoothly.

Reward Power Employees demonstrate readiness to work for achieving some reward. The superior has power to reward the outstanding performers. It is opposite of coercive power. In this case, people work for getting some reward, recognition and repute. It is highly useful for improving supervisor's behaviour. It helps growth of employees which comply with the wishes or directives

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of seniors for getting positive benefits. Reward power is anything that other person can value e.g. money, favour, promotion, interest, friendly treatment, important information and so on. While coercive power is negative reinfocement, reward power is positive reinforcement. For example, if one can give something of positive value or avoid negative value to employees, he has reward power over the employees. Managers are given several forms of reward powers such as power to increase pay, grant promotion, praise, recognise, create friendly atmosphere and so on. In expectancy theory, manager has power of positive valences and positive reinforcement which are perceived by employees. It is important to note that the employees or person on which the power is exercised much value and accept this power. If employees do not accept this power of manager; it has no positive impact on the employees.

Legitimate or Position Power Legitimate power arises because of position of the employees. Manager is in a position to induce compliance or influence behaviour of the employees by virtue of his position. It is the power which is received by the person because of position or formal hierarchy of an organisation. Legitimate power is authority because the definition of authority is legalised and legitimised power. The authority is well accepted by the employees. They recognise third boss as having the authority of sometimes positive and sometimes negative reinforcement. Authority to legitimate power has coercive as well as reward power by virtue of position but coercive power in its own form as described above need not have position. Similarly, reward power in abstract form need not have position. People exercise coercive or reward power by virtue of personality and not by virtue of position. Sometimes, these coercive and reward powers are debatable. But, in case of position power, the manager is legally authorised to exercise coercive or reward power. People achieve power by being legally authoritative and are given the position to exercise the power. Higher position has power over lower position. Expert Power Expert power depends on knowledge and expertise. If a person possesses the expertise and others recognise his expertis~; the former has expert power over others. 'Expert power is well regarded by employees for their effective performances of the job. The person possessing the expert power is creditable, trustworthy and relevant. He is in a position to show sometimes tangible knowledge to others. He is required to demonstrate physically his expertised knowledge to others. Credibility, trustworthiness and relevance are the basic components of expert power. Credibility leads to exercise of expert power. His specialisation, technical skills and other relevant knowledge are well accepted and are given credit to him by employees. He is required to guide the juniors on technical performances which are really guiding factors for development of employees. Trustworthiness depends on the reputation of being honest and straightforward. Trustworthy person can exercise expert power which is easily accepted by employees. Relevance of time, person and energy is important for expert power. Persons having no position can effectively use expert power. Persons having no position can effectively use expert power and influence others by his expertise knowledge. Technical knowledge develops the organisation. Some companies have accepted technical knowledge of even power staff for making others learn technical knowledge. This power is self developing source of organisation. Participative management has combined position power and expert power for effective performance. The manager and technical staff are given equal weightage in management decisions.

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Referent Power Referent power depends on personal traits. It is developed out of admiration of the person. The person possessing referent power becomes model to be followed by others. Many a times, referent power holders have charisma by which a large number of persons are influenced. Some film actor or actress, some model philosopher, social worker and also management referent people have been accepted as possessor of referent power. Persons having domineering personality and pleasing faces are regarded as having referent power. Management people has to develop the referent power by developing their integrity and honesty. They have to work as referent player, reputed singer and regarded philanthropist. Pleasing personality in management become referent power holders. It is required for the managers to become all-rounders and develop sound personality to possess referent power. Dependency The degree of power depends on the degree of dependency. The greater is dependency on the power holder by the employees, the greater influence the former can exercise on the latter. The control amount by one person on others decides the degree of dependency. Dependency is directly related with mutual relationship between powerholder and power-feelers. The expert power and referent power do not create dependency unless the employees are directly related with the powerholder or leader. Even powerholder cannot make others dependent ifhe does not exercise his power. Monopolisation of supply of raw material or money makes the people powerful. Creation of Dependency Dependency is increased on account of importance, scarcity and non-substitutability. Importance: Dependency starts if one gives importance to others. The person getting importance becomes powerholder and the other persons who are giving importance become dependent. The powerful person controls the things which are important for others. It creates dependency ofthe latter on the former. Uncertainty is related with dependency. The time and energy decide the degree of uncertainty. The importance of time and energy is realised because this certainty is at stake. No one can be certain to have all the time and energy always favourable. The person who can reduce uncertainty becomes important and consequently becomes powerholder. A person can be important but his importance is not perceived by others. No power is attached in this case. So it is essential that the powerful person must be perceived by others as important. His importance creates dependency and ultimately power. Scarcity: Scarcity creates power. If any thing is plentiful, it does not attract power. If all the managers are technically competent, they cannot commend power over others. The expert power is realised only when a very few persons are specialised. Supervisor can depend on the highly skilled employee because he is helping the supervisor to perform the job effectively. Many skilled and technically qualified people do not divulge their expertise to others because it makes them non-scarce and reduces their power. Any activity which is complex and difficult creates scarcity of performance and the person performing the activity becomes powerful. Non-substitutability: Persons who cannot be substituted become powerful. Their presence is essential for effective performance. Alternative opportunity reduces power. If an employee can find a number of jobs, the manager cannot command him much because if the employee is forced to perform more than what he can do; he will shift to other job. An employee without any option ofjobs are dependent on the manager who can exercise his power to influence the employee in the manner he likes to influence. Employees having less mobility are more dependent on

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management than the employees who are more mobile by virtue of their attributes and willingness. Non-substitutability creates power because of not being replaced. No alternative and the person has emerged powerful because of his non substitutability in the organisation.

Power Tactics Power tactics is the process by which people translate .their power in practice. It is the process that is used for getting done what the powerholder wants to achieve. This is at the personal discretion of powerholder to influence others. The power tactics need not be unfriendly and coercive always. Powerholder may use logic and friendliness to influence the employees. He may invite support of other employees to implement his direction or may bargain with them on some issues. He may also use constant requests, repeated reminders, pointing at rules to be followed and ordering in forceful manner to follow him. Power tactics are also used by sanctions such as prevention from promotion, increase in salary, threatening to give unfavourable report. Gaining support of higher authority to implement the decisions is also a kind of power tactics. In brief, power tactics may take the form of reason, friendliness, coalition, bargaining, assertiveness, sanctions and support of higher authority. Power tactics may be used upward and downward i.e. to the superiors and subordinates. The power tactics are also dependent on the capacity, objectives and expectations of the powerholders. Organisation's culture has more influence on the power tactics. The powerholders' capacity should be realised by the employees on whom power is used. If employees do not accept the manager's position of dominance and his resources; manager's power tactics will be weak. Manager's personality and integrity have more influence on the manager's power tactics. Many managers are so highly regarded by employees that their requests and reasonings are immediately accepted by the employees. Such managers exercise more power on the employees than those managers who are not enjoying the confidence of employees although the former managers have less legitimate power. Assertiveness is used by those members who are not very much popular amongst the employees. Resistance is used when other power tactics have failed to yield results. The objectivity and thrust to work decides the types of power tactics to be used by the managers. The mind word and pleasant relationships provide sufficient ground to get success for influencing the employees. Managers use friendliness to influence the superiors and reasons to influence juniors. Successful managers simply use request to get work done by employees. If they find any thing difficult to achieve; assertiveness and sanctions are used to influence the employees. Organisational culture will decide which power tactics will be more useful and feasible. Some culture helps development of friendliness and co-operative spirits while others essentially use sections and assertiveness. The power tactics is used as pE'r relevance and suitability of organisational atmosphere. Power Coalitions Power coalitions have been defined as power base developed by combining different power sources. Powerholders join together to form power coalitions. Many employees being unsuccessful desire to hold power by joining trade unions. If a trade union is unable to get success, almost all the trade unions of the organisation join together to fight against management for achieving their demands fulfilled. Similarly managers combine themselves to find out powerful base against any threat to organisation. The power coalition increases the power of its members. Therefore, members try to maximise the size of coalition. The members take concrete decisions in their favour and they

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also try to implement them in effective manner. The broader coalition makes organisation stronger ifthe objectives of coalition is to develop the organisation. The employees are educated to put forth only legitimate demand for their mutual development. If organisation is developing the employees are benefited. Similarly, ifthe employees are developed, organisation is benefited. Organisational culture is developed in useful coalition, co-operation, commitment, shared decision-making power, mutual trust and satisfaction are visible in broadened coalition. Democratic decision-making system is developed in coalitions because employees and managers come together to form a collided forum to redress their demands. Participative management is visible in coalitions. The coalition continues till all the members are co~operative and tolerant. Iftheir interest clash, they disintegrate and the benefits of coalitions are not achieved. Dictatorial system does not like coalition. Coalition provides interdependence. It is needed where resources are huge and require to be managed effectively. Workers like to form coalition for their mutual benefits. Many times, employees form coalition to avoid harassment.

Power Perception Profile Power Perception Profile has two instruments; viz., one measuring self perception of power and other instrument is other's perception about one's power. People are asked how they feel about their use of power. Many questions are developed to judge one's own perception. Compliance of order, liking, preferences, wishes of other people, association with them, feedback processes etc. are used for assessing one's own power. The power bases or sources are differently exercised by different persons. Some rely on more coercive power where others use referent power more effectively. The employees give their opinions about the leaders' use of power. Politics Organisational politics is different from the government oriented politics. Organisational politics emphasise on the role of person in organisation. The employees have certain role to perform in an organisation. When this role is exercised to influence others, it becomes politics. In simple words, politics is the use of power to influence decision-making process in an organisation. Political system in organisation influences behaviour of employees. The political system decides how managers use their power in an organisation. The power using process becomes the political system. The goal and organisational functions are also influenced by a set of political system or process of the organisation. The disadvantages and advantages of political process is also discussed. For example, leaking secret information is the disadvantage of the political process. There may be legitimate and illegitimate behaviour. Legitimate behaviour refers to advantage of political system. It may be a chain of command, forming coalitions, adherence to rules and regulations. On the contrary, illegitimate political behaviour violates the rules and regulations e.g. damaging the property, making adverse remarks on the managers. Politics in organisation is factual reality. Organisations are full of diverse values, goals and interests. There are potential conflicts in organisation, resource allocation creates conflicts. Interests, goals and ego conflicts are sources of politics. People try to achieve these points for self satisfaction; which creates politicking activities. The politicking may be overt and covert. Employees influenced by outsiders' behaviour such as political leader is the example of overt behaviour. The internal factors creating politicking activities are known as covert politics. Apart from the covert and overt factors creating political activities, individual and organisational factors are more important politicking. Individual Factors: Individual factors include high march, internal locus of control, perceived job designs, expectations and self-monitoring. Personality traits, person's needs and

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other factors create political behaviour. Employees interested in self-monitoring and high march are engaged in political behaviour. Self monitors are more sensitive to social cues and thus are skilled in political behaviour. They maintain alliances with powerful people, manipulate information, make a quick showing, avoid decisive engagement and take counsel with caution for power acquisition Many employees adapt, divide and rule policy, embrace powerful and demolish weak and resort to wait, see and attack policies for acquiring power. Employees having higher locus of control can manipulate situations in their favour. Similarly high Machiavellian people can control power in their favour. People interested in power use politics to gain it for self interest. Expectation of success of any action leads to politicking activities. The persons hoping for success in an organisation resort to illegitimate means to gain power. Scarcity provides more political power to the person who has scarce knowledge. Experienced and politically sound employees enjoin more opportunities of creating politics. Organisational factors are more effective for creating politicking activities that the individual factors because a large number of employees are taken into confidence for any activity. Organisational factors include role situations and culture of organisation, resources utilisation, opportunities for promotion, trust, performance evaluation, impressions, management, defensive behaviour and ethical guidelines. Role: The role played by cadre people influences the politicking activities because of their differences in opinion. Some managers have strong support while others having less support create some problems. The differences of role foster politicking functions in the organisation. Role ambiguity of managers has wide impact on the politics of organisation because behaviour of employees is not clear in this case. Visibility and transparency will not create politics whereas their absence provides more chances of politicking activities. Situation and Culture: Certain situations and culture create politics. Cultural differences in organisation may encourage politicking activities. They may create low trust, unclear performance and high pressure of work. Culture helps develop employees and managers. Resources Utilisation: Resource utilisation emphasises departmental goals for which departmental heads want maximum resources for their department. This creates politics and some departments are given more favours than other departments. Employees and managers engage in political actions to safeguard interests of their respective departments. Opportunities for Promotion: Promotion opportunities invite politics. Competition creates politics. Promotion avenues offer competition. People want favour by hook and crook as means to gain promotion. It influences the decision outcome. Trust: Lack of trust creates politics. Illegitimate tactics are applied to influence the seers and peers. High trust does not create scope of politics. Trust reduces misunderstanding. Performance Evaluation: The performance evaluation methods have impact on politics in organisation. The time of performance and the delay in appraisal depends on the political system. Subjective evaluation creates politics. Impression Management: Impression management relates to the perception by employees about the management. Perception benefits employees and management. The management has to create impression by which employees are influenced. The impression management involves conformity excuses, apologies, acclaiming, flattery, favour, bias and accompany. Management should avoid the impression offering non-sincere and dishonest. Uncertainty and ambiguity should be avoided.

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Defensive Behaviour: Employees generally avoid action and blame others for any defects. They resort to reactive and protection to defend the behaviour. The overreaction is avoided by over conforming the rules, policies and precedents. Passing the responsibility to someone else is also exercised. Helplessness strategy is used for avoiding unwanted task. A personalisation is used to avoid certain behaviour. In this case the persons other than the defaulting persons are treated at fault and reprimanded for behaving properly. Stretching, smoothing and stalling are another techniques of defensive behaviour. Similarly blame is avoided by buffing, laying safe, justifying, scapegoating, misrepresenting and escalation of commitment. Defensive behaviour includes avoiding change which refers to resisting change and protecting tariff. Avoiding action, blame and change are important components of defensive behaviour. Organisations are very cautious about defensive behaviour because it becomes a liability during the long-run. People using defensiveness are unable to resort to any other strategies. They destroy their own capacities. Defensive behaviour is not desirable as it increases interpersonal conflict rigidity and stagnation. Ethical Guidelines: Ethical guidelines are used for reducing politicking behaviour. Self interest is overpowered by organisational interests. Unethical is undesirable factor which should be avoided for avoiding politics. Unethical behaviour are discouraged by the organisation as the people are highly politicised by unethical behaviour.

Avoiding Politicking Behaviour Organisation should be free from adverse impacts of politicking behaviour. Management should frame arguments in terms of organisational goals, develop the right image, gain control of organisational resources, make yourself appear undispensable, develop powerful allies, avoid tainted members, develop transparency and should develop co-operative spirits. Management should help organisation by giving more importance to organisational goal than the individual interests. Employees should discard their own interests in favour of organisational goals. This culture can be inculcated by mutual trust and confidence. Organisation culture is developed considering the wants and values of employees. The risk taking and risk avoiding culture is developed by strong leadership style. Management should develop appropriate image of the organisation. Effective management of scarce resources provides bright image. Knowledge and expertise should be given due importance in resource management The expertise should be well developed in all the cadres of management. No employee should be treated indispensable. All people should be developed to undertake any task of the organisation. Powerful people develop coalition in the organisation, which becomes effective for achieving organisational goal. The tainted and ineffective people should be avoided from the coalition. The transparency in management helps trust, development and effectiveness. Mutual trust and confidence avoid adverse impact on political behaviour. Power acquisition is the main thrust of politics because resources, decisions, goals, technology and changes are deeply influenced by political manoeuvres. People coalition helps safeguard self-interest of individuals. People prefer self interests through exercise of his power. Individualism is the crux of the problem, for which people desire more power. Resources are grabbed by using the power. Routine decision is free from politics. Ambiguous decision creates politics. Incompatibility of goals and unplanned change are the basic source of politicking activities. CHlO

Chapter 13

COMMUNICATION 1. 2. 3. 4. 5. 6. 7.

FUNDAMENTALS OF COMMUNICATION FUNCTIONS OF COMMUNICATION COMMUNICATION PROCESS BARRIERS TO COMMUNICATION FORMS OF COMMUNICATION IMPROVING ORGANISATIONAL COMMUNICATION ENVIRONMENT AND COMMUNICATION

Communication is the oxygen of an organisational body. Its proper transference from one part of the body to another part is essential for survival and growth of the organisation. It is the vehicle by which information-cell relevant to decisions-functions of organisation is transferred from one part to another part. It is infusion and implementation of decision. Just like oxygen, it is inhaled for purification and activitisation of various parts of functions of organisation. The non-desired information are left out quickly to avoid any problem in the organisation. Like other, sub-sets such as marketing, finance etc., it has become an essential subset of organisation. Communication is goal directed. It may take the form of verbal or non-verbal shape. The chapter discusses fundamentals, functions, processes, forms, barriers and improving of organisational communication.

FUNDAMENTALS OF COMMUNICATION Communication essentially involves two parties: one who sends communication and other who receives the communication. It is the transfer of information from one person to another person. The ideas, facts, feelings, thoughts, values and desires are transferred from one person to another person through use oflanguages, symbols and systems. Two-way communication is effective because the sender receives feedback from the receiver. Both of them become senders as well as receivers. Such communication is the real communication because it crosses the river of misunderstanding. It brings both people together. One-way communication is not real communication as it does not provide platform to understand the other's ideas. People may be physically distanced but they are brought together with the help for communication media such as verbal, mechanical and mental. Verbal and mechanical are visible

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communication but mental communication is realised only. It is a subject of parapsychology which is not scientifically accepted by many people. Still it has some impact on management such as impression management, disliking or liking of managers. Communication becomes complete only when receiver receives the message and understands it. If the message is sent but not understood by the receiver, it is no communication. There is no meaning except what people put in communication. The message should be understood in the way and form in what it is sent. In organisational behaviour one person influences other by communication of language or by his behaviour which is also an effective form of communication. Behaviours send certain signals and symbols which are understood by other people. Communication provides the method of influencing others. The personal and behavioural exchange view of communication may take the form of information theory, communication process, interpersonal communication and non-verbal communication. Communication in organisation is specifically used as the means of flow of information, perception personality and materials between various parts and members of organisation. The methods, means and media of communication are equally important in the organisational communication as it considers channels, networks and systems respectively for effective communication. Communication is a process to inform people about something. It is primarily concerned with the probability and transmission aspects. The chances of information being accepted are decided while communicating the message. The transmission involves encoding and decoding the message. The electrical signals are used for transmitting the encoded word minimise errors of communication. It is based on thermodynamics better known as entropy in which errors are to be minimised as they are inevitable part of communication. The communication process also discounts cybernetics as it is the process of study of information as controlling the machines and society. Cybernetics is the steering or governing process. It is to develop language in such a way as to control behaviours of employees in a given environment. Automatic feedback control mechanism is involved in cybernatic communication Computer technology has improved communication process wherein the errors are minimised and effectiveness is increased with speed and accuracy. Now communication has made management more effective and useful. The senders and receivers are enjoying the correct and speedy communication making it easy for management to decide and implement correct decisions for achieving goals of the organisation while providing satisfaction to employees.

FUNCTIONS OF COMMUNICATION Communication is a process which performs several functions such as emotive, motivation, information and control.

Emotive Function Emotive function relates to emotional functions and content. People in an organisation communicate with each other with the objective of increasing acceptance of organisational roles. Feeling is communicated from one person to another person. People influence each other by using ethos, pathos and logos in communication. Action is given more importance in ethos while sentimentalised messages are carried in pathos communications. Logic is the main tenet oflogos communication. People get satisfaction through emotive communication. Tension is reduced and role is identified and realised by people to perform their respf'ctive role in more effective manner. Conflicts are resolved by logical information.

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Communication whether formal or informal provides satisfaction to people. It is a means of satisfying needs. People express their dissatisfaction and frustration to others. While expressing their discontentment, they reduce their tension. Communication is useful for reducing dissatisfaction. If a person is dissatisfied on any point, the tension is reduced to half if it is spoken to any person. Problems are half-solved if they are identified which is possible through communication. Attitudes are modified by mutual exchange of their views and ideas. Expression of feelings removes various doubts. Open and frank communication is essential or removing doubts between various members ofthe organisation. Conflicts aggravate ifthe communication is suppressed or misunderstood by people. In organisation, communication serves the motive function to reduce members' grievances and making them happy.

Motivation Communication influences others. It is used to motivate people through the influence process. People are motivated to have commitment to organisational objectives. The power is exercised through communication. One can understand others' authority when it is communicated. The compliance of orders is feasible through communication. If orders are not communicated to employees, they cannot accept them and perform accordingly. Reinforcement is essential outcome of communication. Expectancy theory is based purely on information available to employees. Behaviour modification is possible through people communication of desired process and results. Learning and personality development has their bases on communication. Learning and personality development are essential parts of motivation. Communication is the means by which employees are motivated, directed and controlled. Their performances are evaluated by communication. As discussed earlier, stress management is feasible through effective communication. Leaders are influential with strong communication. The behaviour, performance and evaluation are effective with proper communication process. Managers rely on the communication vehicle to reach the goal of organisation. No manager can perform his job effectively unless he is well-versed in proper communication. Not only verbal but non-verbal communication such as his own sympathetic behaviour has long-lasting impacts on employees. The leaders are watched by their subordinates. So, communication in the hands of manager can make or mar the whole organisation. Managerial functions such as issuing orders, rewarding better performance, assigning jobs, training, motivating etc. are based on communication. Every function of organisation involves communication. Reinforcement and learning are based on proper communication. People are always sensitive to their bosses. They are motivated by their good deeds and deliveries of words. A manager can be successful only when he is expert in deliveries of his thoughts and actions to his subordinates. Form of motivation is not so essential as the deliveries of motivation. If management announces 20 per cent production bonus as routine functions; if the bonus increase is made conditional to increase in production, employees are motivated to enhance production. The methods of communicating motivation of different kinds have long impacts on employees' morale. Harsh treatment will mar the real impact of motivation whereas appreciation behaviour by managers have long lasting impacts on employees' performance. Information Communication involves loading of information at one end and delivery at other end through a media. It is a technique and tool of information delivery. Decision makers require data and information for effective performance. The way the information is collected, stored and retrieved; the decision-making process is influenced. Correct and quick information helps take useful

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decisions. With the invention of information technology, decision-making, process has become very easy. Precision and correctness are involved in the present information technology. Decision theories have been modified to incorporate quick information. Organisations based on quick and correct information are successful in every subsystems beginning from marketing to production, finance and personnel. Communication has emerged as the basic subsystem of management. Its management paves the success of management of entire organisation. Cost, quality and competence are no longer the monopoly of any organisation. Even a small organisation having world-wide network of information can emerge leader in his areas of functions. He can reduce cost and increase quality because the time involved in use of resources is shrinked with the ultra'modern information technology. No organisation can starve of raw materials, money and men if they have latest information network. Information suppliers have developed their own organisation to help people and production through selecting the best and cheapest raw material from place where it is available. In absence of adequate information; organisation may be wandering from place to place to search men, machines, materials and methods which are easily available these days because professionals have developed world-wide network {)f all these resources. With a touch of a button, one can find the place where cheap and quality raw materials are available. Similarly, one can easily find out men, machines, methods and money at the cheapest and at the highest quality. People have developed store of information which are hired by business users. Research findings in one part of the world are easily available at the other part ofthe world. Management becomes cripple in absence of information. Communication has information functions which are used for effective management of an organisation.

Control Organisation needs control mechanisms for its proper functioning. Control of men, materials, machines, methods and money increases effectiveness in the organisation. The data and information pertaining to these components are controlling factors. Their quantity and quality must be assessed for their smooth functioning; communication channels provide information of their availability in and outside organisation. For example if an expert financial manager is needed for the organisation; it can be obtained from the internet information. Control on resources makes their uses more effective and useful. Various forms of organisation have different control mechanism. Programmes and procedures are used to develop control mechanisms of resources. Formal and informal communication are used for controlling the resources availability and their uses. Structural organisation clarifies the duties, authorities and accountabilities of each cadre of the structure. Employees have to follow the authority hierarchies and their guidelines. The management has to see whether the employees have followed them or not. Communication process is developed in such a way as to have effective control on employees' behaviour and performances. Communication Process Communication process involves communication model. It is based on social psychology and is illustrated by symbolic interaction. It is the process by which information is transmitted from one person to other person. The intended objectives lie in the message. The sender of the information has certain intensions which are incorporated in symbol of communication. Sender has his identity, value mood, motive, self and role which am visible in his communication process. Symbol means the language, the action and movement which are used for communicating the intention of the sender. Symbol may be anything by which the sender communicates his ideas

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to the receiver. It may be even a laugh and clothing by which he communicates his intend ideas. For example, in films many times, the comedian uses different types of clothes to attract and amuse the audience. Manager in an organisation can influence his employees by smart and wellto do dresses. The receiver gets the symbols and converts them into their own language. He perceives the intended ideas ofthe sender in his own form which is known as perceived meaning. Receiver's identity, role, value, mood and motives are reflected in the perceived meaning. There will be perfect communication ifthe intended meaning ofthe sender is equal to the perceived meaning ofthe receiver. Ifthere is difference between intended meaning and the perceived meaning; his communication is not perfect. It has been observed that communication is not perfect because the intended meaning and perceived meaning are not equal. They may be closer to each other but not perfect because of intervening factors and personality traits of the sender and receiver. Communication has been imperfect. The symbols used by the sender and receiver are not understood in the same form. The symbolic manipulation by the sender and the symbolic interpretation by the receiver are not the same. They are filtered and the actual message becomes the filtered symbols. The sender uses symbols to transmit his intended meaning. It is known as symbolic manipulation or transmitting ideas through sets of symbols which may be anything for transmissing the ideas viz., facial or bodily expressions, written or oral communication, voice, tune, tone, actions and movements. While transmitting the symbols; the values, role, identity, mood, motives and other personality traits are reflected in the message ofthe sender. Similarly symbolic interpretation is used by the receiver who interprets the symbols transmitted by the sender. The context, role, mood, motives, identity etc. are reflected while translating the symbols ofthe sender by the receiver. The symbolic interpretation process may face distortion and noise in the communication. The context, the source of communication etc. are evaluating factors of the communication process.

Communication Model Communication model involves transference of message from one person to another through encoding, transmission and decoding ofthe meaning ofthe message. It includes seven components viz., sources, message, encoding, channel, decoding, receive and feedback. +

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1. Information Source: It is the beginning of the communication process. The source consists of raw information, basic objectives and so on. The raw information are based on basic

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data collected from published and unpublished documents. The ideas and views expressed by the sender is essential for the transmitter or sender because he cannot transmit information unless he has information stored in his mind. The beliefs and values of the sender are also loaded along with the information. Cultural, social and other environmental factors influence the information source. 2. Message: The information becomes message when it is intended to be communicated by one person to other person. The message is carried not only in verbal form. It may take any form of communication. It may be dress ofthe message sender. Similarly every object and action carries message of its own. Writing, picture, movements of eyes and limbs, facial appearance and expression and signals are messages which are carried from information source to decoding as is depicted in Fig. 13.1. 3. Encoding: The information to be carried to the receiver is encoded in different forms such as symbols, electronic waves etc. The attitude and information source influence the encoding. The language is a form of encoding the message. Signs, symbols and signals are encoded form of message. The raw information is processed, computed and put in a transferable form. The process of giving meaningful form to the message is known as encoding. Message is processed and refined form of information which is ready for communication. 4. Channel: The channel is the medium through which the message travels. The channel may be formal or informal. Formal channels are established by the organisation. They are related with the activities of members. The authority network influences the channel. The cultural and social environment are taken into consideration for determining informal channel. The channels i.e. the means of transmission of message are sound waves, light waves, piece of papers , electrical impulses and so on. 5. Decoding: Decoding is converting of encoded message into the receiver's language. It is retranslating the sender's message. The symbols are transmitted into message ofthe receiver through decoding. Decoding is at the receiver's side. The receiver receives, processes and interprets the symbols of message into his own message through decoding process. He understands them according to his own personality and perception. 6. Receiver: Receiver receives the message from the sender through decoding the message. It is the destination of the message. Accounting, satistical and computer information are used by the receiver. 7. Feedback: The communication is completed only when the receiver finds his feedback to the sender. Thus, the sender can understand how he has been accepted by the receiver so far as the communication process is concerned. It is the two-way communication which is essential for getting the objectives of communication fulfilled. Communication helps understand the message which flows from sender to receiver and again from receiver to sender. Noise disturbs the communication process at all the steps as depicted in the Fig. 13.1 The message can be distorted at any stage. The sources are not properly understood. Poor choice of symbols and confusion of channel selection may create noise. Encoding and decoding process may also create noise. Ifthe noise level is high, the communication is poor. Sender and receiver have different attitudes and personality which are causes of distortion of communication. Analysis and interpretation levels ofthe communicators have some impact on the communication process.

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BARRIERS TO COMMUNICATION Communication is not perfect because of several barriers prohibiting its smooth flow. Barriers may be distortion in communication and information overload. Communication breakdowns due to complex causes.

Distortion in Communication Communication involves complex process from the sender's point to the receiver's point wherein a number of factors influences the communication system. Encoding, decoding, transmission etc. are process where unintended and misinterpreted message may occur. Noise, slippage and interaction take place during communication process. These factors can be summarised under attributes of person, selective perception, time pressure; semantic problems and emotions. Attributes of the person: Sender and receiver react differently for variety of personal reasons. In the same situation, they communicate with each other differently according to their respective attributes. Previous learning and personality influence these attributes. Peoples of different culture and religion react differently. In India many academicians are against the political slogans. Cynicism influences the communicators. Expectations and presumptions of employees have different attributes than the frustrated employees of the organisation. Pessimistic employees do no believe easily in the promises of managers. Optimistic persons are helpful and communication is congenial. Selective Perception: Communication is influenced by perceptual behaviour. People having different perceptions view the message differently. They hear what they like to hear and do not bother for the whole message. They conclude meaning of the message as per their perception. Selective perception is visualised when communication includes role, identity, mood and motives. The decoding is influenced by the perception personality of the receiver. The role and identity of sender have strong feeling in the minds of receiver. Officer, position, equipment and surrounding are perceptual contributions arriving at some meaning. These factors distort the smooth flow of communication. The perception influenced by several factors has long lasting impact on the communicator. It is not only the receiver but also the sender who are influenced by their respective personal perception as well as environmental perception. Time Pressure: Time has valuable influence on communication. Time is scarce and its uses involve special technique which may not be appreciated by other. The manager with a few words explains all the points due to paucity of time. The employees may not understand them properly. So it is distorting communication. Sometimes, managers are unable to talk to their subordinates due to shortage of time. Such barriers are known as short-circuit of communication which may cause havoc to the organisation. Semantic Problems: Communication faces semantic problems which consist of manipulation and interpretation of symbols. Language is a symbol because it carries the meaning of message by the known people. Since language is different; it may carry different meanings to different people. The local dialect has a different explanation. Phrases and proverbs are freely used in communication. People understand them differently. It creates communication barriers. A specific word is also interpreted differently. Many a times, people use different meaning inadvertently. Sometimes, specific meaning is given to suit the requirements of the receiver . . Technical language or jargon has difficult meanings which are derived for special purposes. The background, culture, education and other factors influence people for interpreting the word.

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The vocal version is differently understood by people. The rank and file relationship influence the language, meaning. Some employees are motivated by a word whereas others do not get inspiration by the same word. Emotions: The emotions of sender and receiver influence communication process. The message is changed as per emotional status of the communicating persons. Angry person communicates harsh words which are unwelcome by the receive. Thus, it looses is impact on the receiver. Rational people talk seriously and do not emit unpleasant words. Emotional communication may not be correct.

Information Overload The overloading of information creates problems because the important messages are drawn in the ocean of communication. Larger is the load of information, the lesser would be is comprehension. The overload in itself is a problem which should be avoided for proper compression. Forms of Communication Communication has different forms which are judiciously selected to influence the people. They are classified based on direction, networks and verbal. Forms on the basis of Direction Communication is flow which may take any direction. So, communication based on direction are downward communication, upward communication and lateral communication. Downward Communication: Communication which flows from higher level of the cadre to lower level of cadre is known as downward communication. For example, manager communicates with the employees. Downward communication is also flowing from group leaders to the followers. It may be oral or written. In downward communication feedback is also provided by the receiver. Downward communication has attention getting goals for which employees are targeted to understand the message of communication of organisation. The communication is sensitive to human needs. It is essential to manage the downward communication for building solid base for which four factors are observed viz., developing a positive communication attitude, getting informed, planning for communication and developing trust between sender and receiver. The management-employees communication is an important part oftheir jobs. They should develop positive attitude. Managers must have information of all aspects. They should plan for communication and design for course of action. The subordinates should have trust in the managers of accepting message. Quality is needed for communication process. The downward communication must have acknowledgement of the legitimacy, perceived competence, trust, perceived credibility, acceptance of the tasks and power of the sender. The management needs must be understood by the people; which are job instruction, performance, feedbacks, news and social support. Job instruction tries to secure better results. The need for objective information is important for managing employees and organisation. The high expectations of employees must be brought to the ground reality through effective downward communication. It includes realistic job purviews. It is a sort of injection to develop immunity against frustration. It brings unmet expectations to reality. The uncertainty is reduced through comprehensive communication. The employees' performance are told to their bosses. Feedback helps better downward communication. It helps the employees to know what to do and how to do. If employees get information that their performance is satisfactory, they develop their selfimage and feeling of competence which lead to improved performance and favourable attitudes.

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Feedback must be specific objective and desired oriented,job related, well timed and allow choices. The personal whims should be replaced by reality and abstract information. Feedback must have greater chances of success. The poor performance of employees should be told in a sweet and polite but effective manner so that employee may realise his mistake. They should be encouraged for improvement. Many employees improve their performance at the slightest cues. Adequate atmosphere should be developed for strong competence motive and powerful drive for self-evaluation. The downward communication should reach the employees as news rather than views. The raw info1'Iil.ation is accepted by employees as original and free from bias. They do not like views and sinews of managers. They prefer right thing as right. It is observed that newsletters of the department or organisation provide more information to employees. Notice board, bulletin boards, close circuit television etc. are more effective forms of downward communication. Electronic mail system has upgraderl the employees. Employees enjoy social support of their work. They get esteem and valued satisfaction at such support. The psychological appreciation improves the performance. Management should communicate task assignment, career subjects, personal matters and other feedback. The open communication provides satisfaction to the employees. Upward Communication: Upward communication flows from lower to higher in the organisation. It is to provide feedback to the managers about the achievements and problems. , 'It makes managers informed about the performance. Managers have to be up to date about the ground reality happening in the organisation. Upward communication is complementary to down communication because it providers two-way communication. Communication will not be complete unless both ways of communication are done by the manager and employees. Management will be in tune with the employees through opening upward communication. It helps understand the sensitivity to each performance, positive action, initiative required, improvement plans and so on. It is absolutely required for the effective management. Employees not given opportunities of upward communication will be shy and reluctant to improvement. They should be provided opportunities of difficult experience, supervisions, pressures, extensive downward communication and causes of absence of enthusiasm in the job. The growing organisation must encourage upward communication to have general feelings of employees to avoid their grievances of isolation and unheard problems. If they are not given opportunities of communication oftheir problems and feelings to higher ups; they start developing alienation to management which may cause distrust amongst the management and employees. Hearing the problem is half-way in the solution path. Management should develop corrective actions based on the upward communication. The problems attached with the upward communication are delay filtering, short-circuiting, need for response and distortion. The slow movement of information from lower level to higher level creates several problems. It shows the inefficiency of management. It delays communication. Sometimes, the feelings of employees reach the required management level with screened and filtered message. This creates distrust. Lower managers communicate only those part of the message which appeases the top management who are competent to solve their problems. When employees get the knowledge that their information is filtered; they reach directly to the top management. It annoys the middle managers who become vindictive in the flow process. The short-circuiting may ignite more problems than solving it. The employees communicating to higher ups expect response from them. If the higher authority does not respond, they will be disappointed. It discourages them and many times, they do not inform about even routine

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information. The wilful distortion makes communication poor. Some employees may exaggerate the achievements and suppress the deficiencies. Upward communication will be successful when it has become a part of organisation policy. Top management should establish upward communication as a rule particularly when information relating to accountability controversial topics, supervisory advise and changes are existing. The upward communication's defects are removed by counselling, grievance removal consultation, suggestions, job satisfaction and other techniques of problem solution. Open questions encourage employees to respond spontaneously. It is suitable or broader, policyframing. Closed questions may be desired for narrower topics and specialised functions. The responses of employees should be given due importance. Active listening of employees problems encourages smooth upward communication. Good listening solves many problems. Feelings and emotions of employees should not be disregarded by the management. The upward communication succeeds due to the good-listening practices of management. Meeting with small groups and listening to their views and old news are a successful method of upward communication. Frequent meetings with employees to listen to their job problems, desires, performances and family welfare improves the positive attitude of the employees. Timely, clear and useful information is disseminated. Open door policy encourages the employees. The barriers to upward communication should be removed. Physical, psychological and social barriers should be avoided for proper upward communication. Many a times, employees do not give real picture of the problems, because some ofthe shy employees do not want to talk ill oftheir bosses whereas hardworking employees ask too much against their bosses. Both things should be avoided. Open door policy is developed by the management for communication. Management by Walking Around (MBWA) is one effective method of open door policy of communication. The manager gets enough and frank feedback from the employees. It creates supportive atmosphere. Surprise and spontaneous information help develop employees. Many a times, management uses togetherness, arranges picnic, feeding, sport-skills and developing hobby groups for getting fair and frank information from the employees while getting their social support. Lateral Communication: When communication takes place among members of the same group; it is known as horizontal or lateral communication. Lateral communication is needed for effective co-ordination and co-operation. The informal as well as formal lateral communication are encouraged for effective management of employees. Lateral communication should not develop barriers to vertical communication e.g., downward communication and upward communication.

Network Communication Communication on the basis of network is divided into formal and informal methods. Formal Communication The formal communication are written according to established rules. The formal network of communication may be internal and external. Formal communication is a part ofmanagement functions. Employees gain valuable skills and can perform their jobs better through effective network. Formal communication uses ombudsperson who is responsible for receiving and responding to inquiries when employees do not feel comfortable going through normal channels. Person investigates the matter and corrects the system. Formal communication network may be chain-wheel and all channel. The chain communication follows the chain of command. The upward and downward communications are observed in the chain communication. Accuracy is observed in this method. Wheel is the central

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conduct of the group's communication. The person behind the centre is important person to communicate the employees. All channel communication includes different persons to interact with each other. Each person can build to the ideas of others. Electronic mail, telecommunication and print methods are used to communicate with people. The computer-linking is the glaring example of all-channel formal communication. Some employees get opportunities to contribute in the central pool of communication. Informal Communication Network: The informal communication is not fixed. It is not controlled by management although it is more reliable than formal communication. It serves self-interest of the people. The piece of information is carried by the communicator in their free form without bothering about the rules and regulations to be followed for communication. Informal communication does not leave any evidence of communication. This communication may flow upward, down or lateral. Informal communication is a filter and feedback but it is not gossip. It has certain objectives.

Communication based on VerbE.! information Communication may be verbal as well as non-verbal. Both types of communication have their respective advantages. Verbal Communication: Verbal communications are used by mouth through words and picture. Words are the main communication symbols used in an organisation. Employees interact with each other with the use of words. The main difficulty with word-communication is that a number of meanings are derived from a word. It may create confusion amongst the employees. However, the word used in a situation mostly carries single meaning on which employees are emphasised for following: Effective communication is people-oriented rather than literal meaning based. Social cues are contextual for understanding the meaning of a word. In work place, employees are expected to follow the language of work environment. Tradition and cultural backgrounds are referred for understanding the meaning of a word. The purposes of writing should be understood while reading the words. The local dialect and language should be used for making the people understand the words. The house magazines are prepared usually in the language of employees. Code of conduct, manuals, instructions etc. are free from doubts and critical meanings. Ifwords are typical and beyond the level of understandability of the readers, the purpose of communication is defeated. The language and speaking tongue are the same for word communication so that the employees can understand the message in their own mother tongue. Language foreign to employees is not used to avoid non-comprehension problems. A picture is also verbal communication because it depicts certain symbols to be understood by the receiver. In business organisation, extensive use of picture chart, map, visual and so many techniques are used to demonstrate certain functions which are easily comprehended by the employees. Visual aids are more effective than the family word-based communication because the former influences the minds of receivers through two sense organs i.e., ears and eyes whereas the readable communication goes through only eyes. Non-verbal Communication: Action to influence known non-verbal communication. The movement of ears, eyes, hand and body has been used to commence certain message. It is more appealing than any form of verbal communication. Action speaks louder than words. Practicing is more powerful than preaching. Employees will not follow the instructions of a supervisor to come in factory in time. But the employees will follow the timely entry of the supervis'w Communication credibility i.e. trustworthiness, expertise and dynamism to be observed ir

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verbal communication. Communicator must act with integrity, confidence and enthusiasm. Body language is generally accompanied with verbal communication. Non-verbal communication may take different forms of message transmission e.g. body movements, intimations, facial expression, physical distance, etc. Body motion is known as kinesics which refer to gestures, facial configurations and so on. Care should be exercised to understand the body language because it is not always single directional. Intonation carries specific meaning ofthe word. Tone of voice contradicts the meaning. Tone has vital role in nonverbal communication. Polite, frown, pleasant etc. are indications of tone which changes the meaning as per the tone vibration. Snarled face carries different meaning than smile. Facial expression reveals the arrogance, aggressiveness, shyness and other characteristics of communication. Closer the person is with the receiver; the more emphasis is given to the body action.

IMPROVING ORGANISATIONAL COMMUNICATION The organisational communication faces several personal, physical and semantic barriers which should be removed for improving the organisational communication. The symbolic management, follow-up and feedback, parallel channels and repetition, timing, language, knowledge of exception principle, information centres and other subordinates' oriented functions are the important steps to improve organisational communications.

Symbolic Management Symbolic management includes symbolic interactions and sharpening skills of symbols manipulation. The process of encoding is framed in a simple and understandable manner. This implies choosing symbols in the established context. The audience's perception should be well understood by the sender who places him under the situation of understanding people. Sender must place himself in the shoes of the receiver. The factors influencing the receiver's perception are to be controlled as well as to be understood by the sender for proper communication. Manager should be able to understand his employees as well as he should be understood by his employees for effective communication. Communication should be framed to meet different information needs of employees. Only relevant information should flow.

Follow-up and Feedback Follow-up and feedback system makes both the sender and receiver at par. The misinformation are removed and the causes of barriers are also known to them. It helps understand the message. The process of feedback makes communication a two-way channel. Two-way communication is also visible in downward and upward communication. Management believing in two-way communication gives more emphasis on employees' reaction. Employees are encouraged to question on the communication flow from the higher ups. Question and answer sessions are arranged to have effective two-way communication. Grievance cell is developed for removing any miscommunication. Feedback and follow-up techniques have been proved to be useful for management communication. Face-to-face communication is a part of follow-up technique. Sender becomes sensitive to facial expressions and other signs to know how the message has be not received by the receiver. Questions are asked from the receiver how he has understood the message. Maximum amount of information is transmitted through face-to-face communication. Managers carry the information directly to operating employees. It has been observed by researchers that executives are successful in transmitting the information if they resort to candid, open and face-to-face communication.

Communication

Parallel Channels and Repetition Parallel channels and repetition is essential for effective communication as it reinforces both the sender and receiver. Verbal communication if followed by formal communication, becomes more effective as the employees have felt the personal touch of the verbal communication' and fulfilling of communication formality. Forgetfulness is also avoided in this case. Record of written information is maintained for future references. Although it appears to be redundant, the accuracy is observed in this case. If the verbal communication is found redundant, it helps employees to understand the written communication. Duplicating makes people aware and reminds them of the information. Many times, top executives talk directly to the employees, respond to their questions, listen to their problems, convey the mission and vision of the company, although important information are circulated to the employees through middle-management. This process reveals the jinx of communication at middle-level. Many a times employees are eager to know why a particular circular has been issued, what is the rationale of such communication? Who is the responsible person? And so on. These questions are replied by top executives. Management involves ongoing process of communication. It continues throughout the life of an organisation. Manager sends some information which are accepted by the employees. But some improvement is visualised during the communication which is practised by them. Communication flowing from manager to employees and from employees to manager and again from manager to employees continues always. With rising employees' responsibilities; employees need more information. Parallel and repetitive information are needed for making management more effective and efficient.

Timeliness It is essential to communicate to the employees immediately the information at the moment it is received from reliable and authoritative sources. Employees want full and timely information otherwise bit by bit information may annoy them, clear and crystal clear information increases management's credibility. Anger, loss of trust, disregard and dissatisfaction take place in absence of timeliness and full information. The standard and specified day of information helps employees to get complete and up-to-date information. For example, if Saturday is the date of information, employees reach the place of information. Many a times, information is relayed at leisure time of tea, dinner, sports and so on.

Attention to Language Appropriate style and level oflanguage has long lasting impact on the employees. Very high and sophisticated language is not understood by the employees. So, the message should be flown in the language and spirit of the employees. Audience's language is the basic form of communication. Thus the intended message will be the same as the received message.

Knowledge of Exception Principle Many exception principles are laid down for making communication more effective and smooth. It means only those orders, plans and policies will be communicated to the employees which are away from the routine business. It refers that the employees should be aware of all the routine principles. Only that message will be communicated which is truely demanded by the employees. Exception principles refers to selective information. But it should not be known as rule of telling exception only. Rule of exception is not followed alwb.Ys.

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Information Centres or Grapevines Information centres known as grapevjnes are developed for proper communication. They serve as motivational centre too. Like grapevines; it may be a large number of sources and channels. It is flexible and based on face to face communication. From the centres, the information flows formally and informally. Grapevines require healthy growth. Communication, also, should be free from distortion, misinformation, unfounded rumours and unbiased attitude. Subordinate Initiated Communication The subordinate initiated communication is essential for improving the communication effectiveness. It is possible through developing grievance procedures, open door policy, counselling attitude, questionnaire, participative technique and developing ombudsperson. The grievance procedure helps employees to redress their grievances. They should have communication access to the higher authority beyond their bosses. It protects the employees from the suppressive attitude of their immediate bosses. The arbitrary discretion of supervisor is avoided and the employees are free from the vindictive attitude of their supervisor. Many supervisors open their doors for inviting employees' interactions. The continuous invitation creates congenial atmosphere in the organisation and healthy relationship between superior and subordinates. Supervisor performs a definite examples of actions to gain the favour of employees. The counselling sessions between superior and subordinates open the platform of discussion of employees. Confidential consultation of subordinates on certain issues makes employees trustworthy and meaningful. Valuable information are acquired from private discussion with employees. Participative techniques generates great deal of communication. Participation may be either formal or informal. Committees are formally established to decide certain problems. Participative communication is more satisfying than communicaton based purely on consultation. Ombudsperson is appointed to remove the unfair treatment by superiors. Ombudsperson was originated in Scandinavia to provide an outlet for treating unfair, nondemocratic and bureaucratic treatment of supervisors. Ombudsperson is a sort of public relation officer who maintains a healthy relationship between subordinates and supervisor in the organisation. Ombudsperson fills the gap between two cadres ofthe organisation. It has become essential to appoint ombudsperson these days as the organisation is expanding faster. The subordinates-oriented communication is very helpful as it informs the supervisors about their behaviours, ideas, attitudes and performances. Both ifthe superior-subordinates come at healthy platforms of performance by mutual co-operation then communication can be highly effective. Continuous and effective flow of communication removes the barriers. It makes the communication more successful. Environment and Communication Communication creates an environment. Similarly' it works successfully in a given environment. The environment requiring discussion from the point of successful communication are relationship between men-women employees, political environment, cross-cultural environment and mode of communication. Man-Women Environment Men have been enjoying dominating position in every organisation. But, environment is becoming disturbing when women started to realise their position. They want due share in management. Many a times, they raise voice against the tyranny created by men upon them. The exploitation and harassment by men has compelled the women employees to unite and fight

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against the ill-treatment hy men employees. The men employees harassing women need not be only their boss. Even suLvrdinates do not obey them properly as they accept their men superior. It is realised that women face ill-treatment vertically as well as laterally. Downward, upward and lateral communication become difficult for women. Till women were silently accepting the misbehaviour of men, the problems did not come at the surface. But when educated women have started demanding proper treatment; complex problems have surfaced. Proper communication can reduce such treatment. The communication is the cause and cure of suppression of women employees. III communication destroys the atmosphere whereas the polite communication de~elops good atmosphere. Men treat women as enjoying factors. Women suspect men as exploiting factor. Men are status oriented. Women are relation cautious. Communication removes the doubts and bridges the gap between men and women. Intimacy and independence help them perform successfully. Women give more importance to conversations. They need support of men. Women are talkative but serious. Men are silent but selfish. Women prefer closeness which they want to acquire by making men to listen to their problems, frivolous problems are created by women. Mutual understanding is desired as it is symmetrical. Giving advice to women is unwelcome as it is symmetrical. Women create covert and sneaky problems.

Political Environment Political environment in the organisation creates unhealthy communication, political refers to group and caste factors in this case. Many a times, the different groups formed on caste, creed and colour have distinctive biases which are not desirable for unified growth of the communication in an organisation. But when political meaning has polite not sympathising atmosphere; it is desirable form of communication. The polity encourages effective communication as people become sensitive to other's feelings. Generous words carry the hard meaning but in soft forms when soft words do not carry the real meaning, people carry the message in the clearest and most accurate form. Cross Cultural Communication Cross cultural communication creates problems to effective communication because of words used by people are in their respective tone of culture which may not be properly understood by people of other culture. The barriers are caused by semantic differences, word cannotation, tone differences and perception differences. As has been discussed in previous chapter. Semantic differences have created problems because people carry different meanings of the same word. Efficiency free-market and regulation are differently understood by people of different cultures. Negotiation between two cultures is not clearly understood. People face problems because they have not the same communication base. Tone carries the language style which makes communication different and difficult. Persons have different perceptions. So they understand differently. The cross cultural barriers are reduced by assuming differences until similarity is proven, emphasising description rather than on interpretation, practicing empathy and relating the interpretation as developing rather than final. The cross cultural differences are reduced to a greater degree if the differences are realised by the senders and receivers.

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Chapter 14

STRESS MANAGEMENT 1.

2. 3. 4. 5. 6. 7.

MEANING OF STRESS FORMS OF STRESS STAGES OF STRESS CAUSES OF STRESS EFFECTS OF STRESS COPING STRATEGIES FOR STRESS STRESS MANA.GEMENT BY INDIAN PHILOSOPHY

Stress is the pressure people feel while at work and in private life. Stress at work is inevitable because of the thought process required in job performance. Private life is full of anxieties and personal pressures. But stress becomes very stressful when it is seriously realised by mind and heart. Then, it becomes painful and creates many physical and psychological problems which are reflected in day to day life of organisational performances. It causes adverse strain on emotion; thought process and action. Stressful body becomes burdensome to the employee. He becomes useless for the organisation. Such types of people develop chronic diseases of blood pressure, heart attacks, perplexities. They are always restless and become angry on slightest pressure of work. When they develop sleeplessness and become worrisome, their working capacities are reduced significantly. Finding themselves away from the mainstream, they start using alcohol. They become drug addicts, which makes them more weak and actionless during a long course of time. The direct impact of stress is on mind. People feel unhappiness and are dissatisfied. Mental disorders lead to bodily disequilibrium. Digestive system and regular blood functioning are disturbed. It causes abdominal ulcer, liveriosis and several diseases of heart, kidneys, blood vessels and of other parts of body. The stress should not lead people to the level of stressfulness. Stress on the job or offthe job should be prevented. Since it is not possible to prevent the stress because of adverse environment at the work place and beyond; it is essential to check the stress to grow to the level of disorder creators. In order to prevent or reduce stress in an organisation, the real form of stress stages or background of stress, causes and effects of stress must be thoroughly understc,od. Effective strategies should be formulated to treat stress efficiently.

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MEANING OF STRESS Stress has been defined by different authors differently. Stress is a dynamic condition in which a person is faced with constraints and strains. Stress is discomfort ofindividual. Emotional disequilibrium is stress. Real life disequilibrium will not take the form of stress unless it is realised from heart and mind. In wider sense stress is discomfiture whether it creates problems or not. Stress has not always negative impact. It is also a source of deep inspiration to work. In that sense, stress is tension which leads to action and performance. Stress in its mild form leads employees to perform better but stress in its gravest from reduces the working capacities of employees. Stress then becomes distress. Greek word for the humble stress is eustress which indicates good from stress as eu means good in Greek language. Stress in broader sense is the interaction of the organism with environment. The interaction may be for good as well as for bad. Stress in initial form may be good for the person and the organisation. But it becomes troublesome for employees ifit continues for longer time. Beehr and Newman define job stress as "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 funciton."l Stress makes people deviate frum the normal function. It may take the form of more inspiration as well as more degradation depending on environment, apart from mental realisation, also plays significant role in shaping the stress behaviour. Stress without doubt has been accepted by many authors as psychological impact. There are examples such as when the employees develop immunity against the adverse environment and are not adversely affected by stress factors. They do not get tension in their behaviour. However, such immunity is a rare phenomenon which is developed through constant experience and training. John M. Ivancevich and Michael T. Matteson have defined stress "an adaptive response, mediated by individual characteristics and/or psychological processes, that is a consequence of any external action, situation or even that places special physical and/or psychological demands upon a person."2 This definition has clearly laid down the causes and impacts of stress. Moreover, it reveals stress as on adaptive response which is the result of certain external factors: Being external in causes, it has internal impacts on body and mind. The mediation by people is significant tenet of stress as it is the outcome of only realisation by employees. Ifthey do not realise the external factors as compelling, stress is not formed. The physical and psychological demands refers to the feeling of employees on their body and mind. If the demands or feeling does not occur, the stress does no take place. Based on the physical and psychological demands; it is specifically mentioned as constraints and desire. If the normal behaviour desires something routine; but it is realised by employees due to external factors; it becomes constraint. People confronting something good or some opportunities, it is desire. The constraints and desires take the form of stress ifthey cannot be be smoothened out or fulfilled in a routine way of working. Opportunities achieved is not stress but when opportunities are not realised in the normal course of time; it is stress. Stress is visible when there is uncertainty of the result and the result is very important. When the employees are doubtful about the result and achievement of opportunities; stress takes place. People having no emphasis on uncertainty or certainty or they do not give importance to the outcome; they do not feel stress. People having apathy or indifference to the outcome i.e., about the good or bad results; have no stress. It is the uncertainty and importance of any outcome, which creates stress to the person. Employees having indifferent attitude toward promotion, performance and placement have no stress. 1. T.A. Beehr and J.E. Newman: Personal Psychology, p. 699. 2. John M. Ivancevich and Michael T. Matteson: Stress and Work, pp. 8-9.

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Stress should not be confused with anxiety, nervous tension and damaging functions. They occur as regular features in many cases and have no long-lasting impacts on the working capacities ofthe employees. Anxiety may remain purely psychological and may not cause physical impact. Similarly only physical impacts will not be stress unless it is felt by mind and heart. The psychological and physical impacts are visible of the stress. Anxiety is cause of stress but not stress itself. Similarly stress is not simply tension. Unconsciousness is nervous breakdown but it is not stress although stress may cause unconsciousness. Stress is not always bad. Distress is preventable. Stress may create anxiety, nervous tension and damaging impacts but these are not symptoms of stress itself.

FORMS OF STRESS Stress is understood by its different forms which may be either temporary or long-term, mild or severe. Stress Chronic Worry Nervous Tension Blood Vessels Digestion Emotions Drug Addictions

Mental and Physical Disorders Fi g .14.1 Stress

The form if temporary and mild cannot be distressing. It can be recovered from easily. Many employees find stress merely superfluous but they suffer temporarily with such strenuous work. When an employee finds himselfunder a new and unknown situation with different environment, he faces mild stress. He is unable to cope with the new situation. Conflicts take place and he becomes restless. When he becomes accustomed with the new situation and adjusts himself, the stress is diminished gradually. The stress forms are mild, stiffer and chronic. The mild form of stress is visible in digestive problems, higher blood pressure, nervousness and tension, inability to relax and problem with sleep.

STIFFER FORM The mild from gets aggravated if the stress is not prevented at the initial stage. It becomes a stiffer form. CHRONIC FORM Chronic worry, insomania, frustration, instability uncooperative attitudes are developed if stress is not checked initially. If high intensity stress continues for an extended duration, problems arise. Individual suffering from high intensity rebuild its strength for a longer period whereas stress is removed by body as it has the capacity of homeostasis, long stressed body weakens the people psychologically, it is known as burnout. The next chronic form of stress is trauma.

Burnout Individuals are emotionally exhausted under Burnol4t. They are detached from work and are unable to achieve their objectives. There are many jobs wherein burnouts are experienced often. Intellectuals and professionals face burnout because they suffer from continuous high

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stress. Managers and executives in the organisation are prone to burnout. They have to resort to physiological and psychological therapy to reduce the recurrence of burnout. Employees prone to burnout experiences certain symptoms. They face irritation errors in work, frustration and apathy. They feel monotonous on the job. Many a times, they tend to leave the present job and face many problems while entering into new jobs. Organisations have to prevent the situations leading to symptoms of burnout. Employees are told how to cope with the stressful situations. Many organisations arrange yoga and meditation programmes to avoid burnout of their employees.

Trauma . The next and the last serious form of stress is Trauma. It occurs in a hostile atmosphere wherein employees do not find respite from continuous stress. The work place contributes significantly in the development of trauma. The work strain, social reactions to jobs, acute insecurity at work place and beyond. Increasing incidence of terrorism and extortion has increased trauma in highly placed employees. The hazardous occupation creates trauma at work as well as after the work. Post traumatic stress disorder is equally disturbing. Work place trauma is often visible in the form of harassment, wrongful termination, biased attitudes and discrimination. Many a times, employees assume disproportionate responsibilities and face emotional tailspin. Organisations witnessing the symptoms of trauma take serious steps to prevent recurrence of trauma. Satisfaction, clarification and mutual help avoids trauma. Stages of Stress There are three stages of stress: alarm, resistance and exhaustion. GAS (General Adaptation Syndrome) as termed by Hans Selve is another name of stress. He has given three stages of stress. Alarm: The first stage of stress is alarm wherein stressor mobilises the internal stress system. Many physiological and chemical reactions are observed under Alarm stage. Increased pituitary, adrenaline secretions, increased respiration, heart trouble and blood pressure are observed under alarm stage. Many employees prevent themselves from getting more stress through physiologiqal and psychological treatment. Resistance: If the alarm stage is not prevented, resistance develops. The body organs make themselves resistant but it pave's the way for development of other stressors. Nervousness and tension are increased making individuals unable to relax. Individuals develop conflicts, frustration and uneasiness. Illness and diseases attached with stress are developed under resistance Apparently, individuals feel free from stress; but serious diseases are developed stealthily. It is essential to know the causes of stress and avoid them at the starting stage. Exhaustion: Resistance of resistant stress creates exhaustion. The immunity of body is reduced. Individuals feel fatigue and inability. Exhaustion develops moodiness, negative emotions and helplessness. The impact of stress is visible in physique, psychology and behaviour of the employees in an organisation wherein stress has reached to the stage of exhaustion. Health and psychological depression reduces the effectiveness of employees. Consequently organisational success is adversely affected. Stressed employees cannot contribute significantly. A large number of organisations have started stress education to prevent stress from being negatively affecting the employees. CAUSES OF STRESS Employees' stresses are due to several causes: Organisational and extra-organisational, factors are related to the causes of stress arising within the organisation. Extra-organisational

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factors are environmental. In simple terms the causes of stress are divided into environmental, organisational, group related and individuals.

Environmental Factors . Environmental factors are as much contributory to the organisational factors which are to cause stress in employees. Political and economic factors influence the behaviour of employees. Law and order problems create tension in the mind of employees. Technological uncertainties have diverse impact on the people . Social pressure on the employees is commonly observed in the form of dissatisfaction. The outside forces have tremendous impact on the employees. Ivancevich and Matteson have identified societal, economic, financial, cultural, familial and technological factors to influence the mental status of employees. Social factors influence life style and behaviour of people. Health programme, civic facilities and social institutions reduce the stress. Family problems are highly influencing factors to reduce the effectiveness and efficiency of employees. Children's education and health are always influencing the mental status of employees. In India, racial association make people feel happy where cross racial association creates problems. Sex differences have been the cause of conflicts in many countries, which are reflected in organisational behaviour. Organisational Factors Organisational factors such as management-labour relations, working conditions, resources allocations, role of trade unions, behaviour of co-workers etc. are important factors which cause stress on the physique and psychology of employees. Organisational policies and working procedures are not the least influential factors of organisation. Stained management-labour relations create more tension than the individual's own relation with co-workers. The organisational structure has to be properly designed to reduce stained relations. Stress is caused generally by too much autocracy, centralisation, lack of participation in decision making, less chances of promotion, high degree of specialisation and sophistication, line-staff conflicts, interdepartmental rifts, less attention to merited employees and so many other structural factors. Working conditions include temperature, dust, heat, business, lack of safety devices, lack of privacy, presence oftoxic chemicals and radiation, air pollution, inadequate lighting and other physical conditions create stress in the mind and body of employees. Resources are scarce and many a times unevenly distributed for production purposes. Employees getting more resources are in a position to demonstrate more work. They become entitled for better pay and promotion. Workers getting less and inferior resources are not getting adequate rewards because of inadequate performances. The stress is observed due to biased and unjustified management style. Role oftrade unions have been creating different levels of stress. Sometimes, employees' demand are put in illogical manner. They are unfulfilled. Multiple unions are creating more problems than solving them. Organisational policies and procedures have long lasting impact on the mental and physical behaviour of employees. Unfair and inadequate pay, rigid rules, rotation, ambiguous policies, unrealistic job designs causes more stress. Poor procedures, inadequate communication, conflicting jobs, inadequate and poor performance measurement, biased control and improper systems increase stress. Task design, role demands and organisational objectives have diverse impacts on stress. Job autonomy, task variety, task force and task relationship are included under task design. Interdependence of employees poses potential stress. Role demands such as role expectation, role conflicts, role ambiguity, lack of social support, poor interpersonal relationships cause stress.

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Organisational objectives directs managerial style, role of chief executive, control mechanism and behaviour of employees. Retrenchment, layoff and other uncertainties lead to dissatisfaction.

Group Factors Organisation includes groups and individuals who influence each other and are influenced by others. They cause stress and reduce stress as well. Lack of group cohesiveness, lack of social support and group conflicts are potential causes of stress. Lack of togetherness is stress producing. Employees get satisfaction at social level after returning from job performance. Job appreciation is also done by family and related members apart from organisational boss. If the employees are degraded by family and other members of society, they develop apathy and tension on that account. Group conflict includes incompatibility of goals and objectives, performance and rewards. The wide differences in these factors creates stress in the minds of employees. Individual Factors Individual factors such as personal characteristics, life changes and role perceptions create stress in different forms at different levels. Personal Characteristics: It includes personality traits such as masculinity, extroversion, rigidity, spontaneity, locus of control etc. are potent causes of stress. These factors in itself create tension and confusion. These traits are known as "Type A Personality." Managers, specialists, secretaries, scientists and other professional possesses Type A personality. They have stable characteristics and have experienced stress because of chronic incessant struggle to achieve more and more. They are more emotional and sensitive to achieve organisational goals. Such persons compete with others as well as with themselves on past achievement. They are prone to stress very easily as they are frustrated with slight decline. On the contrary Type B personality is not very sensitive and is less potent cause of stress. Persons of Type B personality are not concerned with time, relaxed, mild, slow, physical, carefree and less objective oriented. Type B personality has patience and coolness which are required for top executives. Life Changes: Life and career changes are stress producing. The fast changes are more dangerous than the slow changes as fast changes give rise to very grave stress. Heart attacks are commonly observed in case of fast changes in life and careers. Family problems as well as swift promotions are cases offast changes. Economic and social problems are attached with life changes. Belief in locus of control decides the destiny. Internals i.e. who believe in work are more stess prone than the externals i.e., who believe in god for success and failure. Role-Perception: Individuals have multiple roles to perform successfully. A person has to work as father, husband, boss,junior, friend and so on. In the diverse roles, he comes into contact with stress as it is difficult to perform equally all the diverse roles. While in job he has to face role ambiguity, poor communication, role conflicts and overloads of different roles. Stress factors are addictive. It is required for the stress managers to control stress in the initial stage. EFFECTS OF STRESS Effects of stress are visible in different forms. Some persons suffer from high blood pressure, ulcers and loss of appetite. Others face difficulties in making routine decisions. Irritations and other mental problems. Stress is not always disturbing. In some cases stress helps development of people. It is possible in low level of stress which may be called deep intention, tension and restlessness to achieve certain objectives. Low level of stress enhances the job perforIIlances. Employees try to find new ways of performance and achieve excellence in performance techniques. Mild stress provides impetus to wok hard and to strive for better performance. Job

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involving professional expertise is pushed up with mild stress. People under physical work are not benefitted with mild stress although low stress may motivate them to work hard. Constant pressure of stress reduces the working capacities. The consequences of stress are divided into physiological, psychological and behaviouraL

Physiological Effects The impact of stress is mostly visible on physique or body stress affects metabolism, increases heart and breathing rates, causes headache and high blood pressure. These symptoms are not directly influencing work performance. They reduce the performance till they become chronic and acute. There is no direct link between job stress and physical problems because extraordinary factors also influence the stress leveL Many researchers have concluded that ulcers, arthritis, cancer and heart diseases are the result of stress. Serious physical ailments have drastic effects on individuals. Efforts should be made to avoid stress to keep employees healthy and active for achieving organisational goals. Psychological Effects Stress affects body as well as mind of the people. Physical and mental health are adversely affected by stress. It has been observed that physical problems due to stress is possible only through mental tension. Stress directly effects mind and the mental pressure creates several physiological problems. Mental health is adversely effected due to constant and chronic stress. It can be stated that stress influences mind which weakens the body; as weak mind creates weak body. High blood pressure is caused by mental tension. Cancer is after affects of secretion of negative liquids of glands, which are directly affected by mind. Sound mind secretes positive juices from the glands which make body healthy and happy. High levels of stress are always putting pressures on mind which are visible in the form of anxiety, depression, nervousness, tension, irritation and so many disbalancing consequences. These visible forms of stress causes negative impacts on body which get serious types of diseases s}.lch as cancer, heart disease, blood pressures and mental disorders. The working capacities of the employees decline as a result to lowered morale and self esteem. Many a times, the subordinates are not discussing even important problems with the superior because superior talks harshly with the subordinates. Harsh behaviour is due to excessive work pressure and chronic tension. The work ofthe organisation suffers. Such superiors also loose respect and regard which cause them more tension. Stress creates vicious cycle in the organisation. Superior under work pressure and stress generally scold the subordinates who get tension and stress. Employees under constant pressure are unable to contribute significantly. Many a times work suffers. Quality and quantity are lowered down for which immediate superiors are questioned. Superiors are annoyed and subordinates are put under pressure. The mental effects are more dangerous than any other effects. The co-workers, subordinates and superiors are disgusted with stressful managers who become restless on the dissatisfied performance of their employees. Behavioural Impacts The impacts of stress have ultimate impacts on behaviour of people although it has direct impacts on mind and body. Distressed mind and disease prone body cannot have proper behaviour. Sound mind and healthy body behaves properly. Stressed people are unable to control their mind and body. They become moody, lazy and irritative. Sometimes, they resort to bad practices to avoid pressure of stress. Alcoholism, speculation, fidgeting, increased smoking, aloofness and inaction are visible behaviour of stressful employees. While at work, they talk about stress and leave work uncompleted. Drinking alcohol during work time is a great problem.

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Many stressful employees drink too much. It reduces their working capacities. Absenteeism is the main problem of stress because mentally and physically distorted people do not attend their work: Absentees are retrenched which causes dissatisfaction amongst the employees. Stress should be prevented in the early stage.

COPING STRATEGIES FOR STRESS Management strategies have discussed the ways and means of coping with stress by such measures as job design, design rotation, job description, goal setting, organisational behaviour, group dynamics, conflict management, leadership control techniques. The strategies for coping stress are divided into two parts: individual and organisation. Individual Strategies Under individual strategies, employees take personal responsibilities for reducing their respective stress. They try to prevent the stress as well as reduce the stress. They may request job transfers, finding alternative employment, requesting for early retirement, taking tours and travels and resorting to physical exercise. Individual strategies are time management, physical exercise, behavioural self-control, relaxation, training, cognitive therapy and social support. Time Management: Time management is an effective technique of managing stress. Proper and adequate time utilisation is preventive as well as curative device on the other hand poorly managed time creates stress and strain. Time management helps reduce tension because individuals easily achieve their objectives within a specified time. The time management principles are making daily lists of activities, priority activities, scheduling activities according to priority lists, knowing daily cycle and daily job nature. Allocation of time schedule and quantum of time to each activity of the day makes people understand how to use time most effecti vely. Physical Exercise: Routine and relaxed exercises reduce the tension of employees. Competitive exercises increase tension. Non-competitive exercises relaxes people. Noncompetitive physical exercises include aerobics, walking, jogging, swimming and riding bicycle. Suitable physical exercises are suggebted by physicians to reduce a particular type of tension. For example, blood pressure is controlled with jogging, heart disease is prevented with morning walk and so on. Moreover all types of physical exercises divert the mind from tension and stress. Physical exercise is reactive and proactive to lessen the problems of stress. Behavioural Self Control: Learning and personality development help manage the tension. Proper behaviour prevent stress. Behaviour has direct impact on performance which causes satisfaction and stress. Frustrated employees resort to unethical and immoral practices. People have capacity of self-control by deliberately managing the antecedents. Individuals, if so desire, can control their own behaviour by adopting exemplary paths of successful persons. Selfretrospection makes people's behaviour proper. Relaxation Training: People adopt certain relaxation techniques such as biofeedback and meditation for getting relaxed from stress and tension. Mental and physical situations are created reduce stressful conditions. People train themselves to be satisfied in every condition. Meditation involves quiet, concentrated inner thought in order to rest the body and mind. It includes muscle and mental relaxation. Transcendental Meditation (TM) is practised to reduce the stressful situation. It involves meditation or sitting relaxed for fifteen to twenty minutes or for some such time in a day. While concentrating, people recite certain mantras. Yoga is also used for relaxation. Meditation reduces stress and tension. It helps maintain peace and control heart beats.

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Cognitive Therapy: A number of psychological techniques are used to keep employees free from stress. Ellis and Meichenbaum have used emotive and cognitive behaviour modification models to reduce job stress. Physiological and emotional responses are recognised for increar:;l1lg work efficiency. Hormone produced by adrenal glands have positive impact on mental satisfaction. Cognitive strategy helps self-control of people. Social Support: People are benefitted by social support. It reduces job stress. Good listeners and confidence builders are essential for managing stress. Expansion of social support network is a means of tension reduction. Organisational Strategies Organisational strategies include the ways and means attached with the organisational structure, goal setting, designing and redesigning of jobs, improvement in communication, employee's involvement and other organisational strategies for reducing stress. Organisational stressors are categorised in terms of corporate policies, physical condition, organisational structure, process, functions which are focused for developing organisational strategies. Each and every stressor is worked out to eliminate organisational stress. For example, pay plans, promotion policy andjob designs create stress in organisation if they are not properly formulated. Individual and organisational stress is removed if they are formulated in broader perspective considering the employees' interest and organisational goals. Similarly organ J sational strategies are developed in other areas of organisational stressors. Specifically goal setting andjob designing reducing conflict, developing career plans, creating healthy organisational climate and providing counselling are considered strategies of organisational stress management. Goal Setting and Job Designing Goal incompatibility creates stress: Therefore, it is essential to set the goals to avoid stress and conflict. Individuals perform better when they have specific and challenging goals. Goals prO\ ide motivation to work. Similarly, goal feedback reduces uncertainties and clarifies the performance. Consequently stress is minimised as the frustration and ambiguity are avoided by clarifying specific goals. Jobs designed as per set goals reduces all sorts of problems. Employees are aware oftheir specific job content i.e. their respective responsibilities, authorities and duties. They are to use their power to harness the opportunities for growth. They are fully aware of their respective skill variety, task identity, task significance, autonomy and feedback. Enriched tasks reduces stress. Enrichedjobs motivates many growth oriented employees whereas the nongrowth oriented people get job stress. Such people feel increased stress with enriched jobs. Redesigning of jobs is made essential in the light of different characteristics of employees. Roledefining makes employees specific performers. Uncertainties and ambiguities are reduced to manage the stress favourably. Reducing Conflicts: Role ambiguity is the main cause of conflict. Organisation must reduce functional as well as dysfunctional conflicts as discussed in the chapters of conflict. The expectionperformance relation, performance-award relations and organisational attitudes are well defined to reduce any sort of ambiguity and misunderstanding. Employees are not left with any conflicts and strained relations in an efficient organisation. Stress management on the basis of conflict resolving is fully discussed in a previous chapter on conflict. Developing Career Plans: Employees are told about their career plans and future development. Employees' development is essential feature of stress management. An employee with developed outlook and skill can perform better while getting no stress. Undeveloped

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employees are always under stress whether real or expected. Training and career development has positive impact on the development of employees. Theoretical teaching or telling has no impact on employees' development. Practical training and job demonstration reduces all sorts of ambiguities ofjobs. Real life examples are demonstrated to help employees develop themselves. The career-planning and development exercises are continuous and regular features of organisational development. If it is broken, stress is witnessed. It becomes essential to adopt total, comprehensive, organisational entry to exist activities of organisation and employees . development. Devices are developed to aid the individual in self assessment and increased self understanding. Educational, experimental programme and counselling are used for developing the employees. Creating Healthy Climate: Congenial atmosphere of work and relationship prevents any sort of stress. Sometimes, individual stress is eliminated while an employee has entered in the work place. Friendship talk, healthy conditions and eliminate consistence help people reduce their family tension. Home tensiop i-.:; ~.voided at the office and factory. Researches have revealed that employees try to forget the tension of family problems at other places of peace. Ifthe factory and office prove to be place of peace, people would like to stay for longer hours there instead of going home early. Air-conditioned office is a place of attraction for employees. Similarly there are a number of examples which are more attractive than the home. Healthy atmosphere in organisation includes proper lateral, vertical, diagonal communication, congenial work climate and promotional avenues. Organisational structure is developed accordingly. Formal communication reduces uncertainty. Providing Counselling: Counselling is an exchange of ideas and feelings between two persons or parties. It helps employees cope with the problems and improve organisational performance. Personal counselling has been a permanent function of many organisations. It solves the problems of employees while at work or at home. Counselling has proved an important factor of stress management. Advice, reassurance, communication, release of emotional tension, clarified thinking and reorientation are six functions of counselling. Similarly, non-directive, participative and directive counselling are useful techniques of counselling. These techniques are used for solving the stress problems of employees.

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Chapter 15

DELEGATION OF AUTHORITY AND CENTRALISATION 1. 2. 3. 4. 5.

MEANING OF AUTHORITY MEANING OF DELEGATION DELEGATION OF AUTHORITY CENTRALISA,TION DECENTRALISATION

A man cannot perform all the functions himself. He takes assistance of some of his people. In the process, he transfers some of his power to his fellowmen. He fixes the goals and tries to achieve the goals with their help. In management, the superior transfers some of his authorities to subordinates. This process is known as delegation of authority. The process of delegation discusses delegation of authority, centralisation and decentralisation. The subsequent chapter deals with decentralisation. Meaning of authority, meaning of delegation, process of delegation of authority and centrB:iisation are discussed in this chapter.

MEANING OF AUTHORITY Authority is power to influence others. All power is not authority, legalised power becomes authority. It is the official and legal right to command action to enforce compliance. Herbert Simon has explained authority as the power to make decisions which guide the reactions of others. It is the relationship between two individuals - the superior and the subordinates. The subordinates have to carry out the decisions of the supervisor who wants compliances of the decision. Compliance is done through persuasion, sanctions, requests, force, constraints, coercion, motivation, incentives and routinisation. When superior influences others without having official or legal command, it is purely the use of power. Authority is institutionalised power. Power is attained through competence, command, coercion, expertise, position and place. In organisational behaviour, the supervisor attains power through position and place to make them authority. Power is a broader term than authority. Power is an influence or control over others. Power is not always legalised. It may be acquired or required. Power in organisation is evenly distributed. Environment of legitimacy is essential for calling power as authority. Meaningful and operational authority is socially acceptable. Right having morality is authority. Subordinates

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morally and legally obey the authority of superior. Subordinates' acceptance is the essential feature of authority. If authority is not accepted by subordinates, friction is created in the organisation. In other words, superior has no authority unless referred and conferred by subordinates. Authority has social, ethical and moral attributes which are visible in leadership and communicative ability. Subordinates accept the authority of superiors for getting better performances, for contributing to the cause of the organisation and for avoiding possible disciplinary action. They accept it as moral obligation to gain approach and acceptance by other employees. Many employees accept the authority for gaining rewards. Attributes of Authority Authority does not exist unless it is executed. It is practised because of its inherent attributes viz., control of sanctions, expertise, legitimacy, coercion, status and personal liking.

Control of Sanctions: Sanctions exist when reward is given for favourable response and punishment is awarded for failure to accept the directives. Behaviour is influenced with the degree of sanction utilised by management. The degree of influence depends on situation. Therefore, it is also known as 'Authority of Situation.' Usual, unusual, routine, non-routine etc. are the various occasions wherein authority differs from each other. Authority will increase its sanctions power under abnormal situation. In normal situation, routine power is exercised for managing the performance. Expertise: Technical authority is exercised to guide and control the expert activities or specialisation. Expertise is recognition of excellence in a given area of endeavour. Employees willingly follow the orders of learned people. Psychologists are often consulted for managing employees and their problems. Brilliant managers are always well-regarded by their employees. Persons possessing or not possessing position but having expertise in the field of employees are well regarded by them. Recently computer has acquired a prominent place in the organisation. Persons having knowledge of computer mechanisms as well as computer programming are often consulted by the employees. Computer has become an essential factor in the decision making power. It is said that expertise authority is Computer Authority wherein computer has become synonym of expertise power. Legitimacy: Formal authority has legitimacy. The legalised power is authority. It is also known as institutionalised power. Right to exercise power is authority and this right or privilege is legally given to the person possessing the authority. He has formula or legal job rituals, general decision-making rights and accepted power. Coercion: Coercion is use of force to influence others. It carries the authority because coercion is permitted in the system. If coercion is retaliated and revolted; it has no power. Police and administration are exercising coercion to control the crime. Manager uses coercion to get work done by employees although coercion has no solution of the problem. It should be used as salt in food. Status: Status of position is granted to a manager to manage the functioning of an organisation. It makes people comply to the orders of status. It is known as 'Position Authority' as management occupies it by virtue of superior position. In practice, authority is considered only on position. Person occupying hierarchical position is accepted by his subordinates. Person occupying position is many times unquestioned on expertise or competency. Status tends to reinforce the authority relationship. Sometimes, status is given some uniform to be recognised and regarded by people.

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Personal Liking: Authority is gained by personal liking of people. A benevolent manager is liked by his employees. His directions are promptly accepted by his subordinates. A person not liked by employees cannot be regarded highly by them. Theories of Authority Authority is reinforced and accepted. Different authors have given different thoughts to authority. They are generally discussed as Formal Authority, Acceptance Authority, Competence Authority, Responsible Authority. Formal Authority Formal authority is the legal authority granted to the manager by the organisation. Topmanagement has maximum authority which is delegated to lower cadre. Authority flows from higher to lower with gradual decline. Legitimate authority is formal authority. It is the power to command whereas informal authority is the capacity to command. Acceptance Authority: Authority is conferred and accepted by the employees. Authority is present only when it is accepted by groups or individuals. The manager has no authority unless subordinates accept it. Authority is the character of a communication which is accepted by others. Communication if personal may be accepted or not depending upon the communicator's skills and personality. Official communication is accepted necessarily by the employees otherwise they will be charged for disobedience. In any organisation disobedience is the denial of authority, which is not permissible. The willingness to accept the authority does not create any problem and it becomes voluntary acceptance of authority that is needed for proper functioning of the organisation. Authority lies with the subordinates. Therefore, authority must be accepted by subordinates. It requires some motivation to employees viz., rewards, legitimacy, social support and confidence. Authority is accepted because subordinates are asked to behave properly for better performance. They get positive and pleasant rewards in compliance of the orders and achieving the goals. On the contrary negative and unpleasant rewards are attached with nonperformances. Power to hire and fire, power to promote or demote and incentive rewards for better performance are authority. Legitimacy secures the obligation by the subordinates. Social support authenticises the power. Compliance of the orders of authority is accentuated under social support. Confidence is paved on competence. Without confidence authority is not accepted. The advice of a manager is accepted because of confidence in him by the employees. Competence Theory: Competence theory believes in technical competence which is conferred on the management. Seniority, education, skill and intelligence are included under competence or technical authority. It is referent or charismatic power. Authority lies in the competence or ability of a manager. Employees consider competence of their manager as the source of authority. Responsible Theory: Power without responsibility creates many problems. Responsibility is the obligation of an individual to carry out assigned activities to the best of one's ability. It is the obligation of a person ttl achieve the results. It is the obligation to carry out the assigned activities to achieve results. Authority and responsibility is coexisting. It is the inseparable twin of authority. Manager's authority is the power to make and enforce decisions concerning his defined duties. His responsibility is the obligation upon him to perform these duties by using his authority. Authority without responsibility lacks ultimate purpose and responsibility without authority has a hollow ring. Manager cannot perform his duties unless he has authority to do so. The amount and extent of authority tend to establish the amount and extent of responsibility. The authority commensurates with responsibility and responsibility commensurates with authority.

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Responsibility comes into existence when a manager assumes authority. To achieve goals, the use of authority gives rise to the acceptance of the obligation that creates responsibility. The manager tries to perform but when responsibility is defined and fixed. The degree of relationship between authority and responsibility depends on the types of organisation structure; . viz., line-staff function and so on.

Limits of Authority Authority is not unlimited. It should be attached with certain duties and responsibilities. Unlimited authority is an instrument of possible corruption. Specific authority is given for specific functions. For example, financial manager is given financial powers. He cannot enter in the areas of marketing and production. There are specific limits of authority. The top management cannot perform all the functions themselves. He cannot expect that a manager can perform all the functions. So power is placed in a limited form to discharge a particular duty. Authority of a manager is limited as per plans and policies ofthe organisation. Bureaucratic organisation does not give more authority to manager. A manager is always accountable to his superior manager. Similarly, "Articles of Association" decides the level and degree of authority. Social set-up decides the amount of authority to be exercised by a particular manager. Law of the country limits the authority to be exercised by the organisation. Span of authority is decided by the number of immediate subordinates. The relationships are Direct Cross and Direct Group in span of authority. Graicuna, a French management consultant has given a formula for deciding the span of authority viz., n (2nd + n -1) where n represents number of subordinates. For example, if there are two subordinates the total number of relationships will be six and in case of three subordinates, the span will be eighteen. Meaning of Delegation Delegation means to delegate or grant authority to subordinates to achieve the organisational objectives. Superior sets goals, tells his subordinates what he wants to get accomplished. He decides what to do and how to do. It includes communication elements. Information is accompanied with power to perform. It is known as delegation. Superior tells why he wants to achieve the goals in a particular way. Plan is formulated wherein each subordinate's role is specifically decided. Subordinates while performing their respective jobs are given some power so that they perform effectively. Sometimes, subordinates are also invited to take part in decision-making process. It is a case of participative management. In many cases, subordinates have to work as per the decision taken by the superior who expects that his decisions are carried out to achieve the goals. Part ofthe decision is delegated to subordinates. He checks up the employees frequently to get the work done effectively. The process is know as delegation because information in the form of authority, instructions and orders are flown from superior to subordinates. Delegation is pressure or push on the men so that work is performed as per schedule. Superiors are always willing to get the work done by subordinates. Most people get satisfaction at work. They have confidence and credibility. They do not require pressure for getting work done but men not well accustomed need pressure which takes the form of delegation. Thus, delegation may be transfer of power, creating pressure or persuasion to achieve the goals. Delegation becomes essential because superiors have no sufficient time to perform all the work efficiently and effectively. He is responsible for the ultimate results which are achieved by specialists. Generally the superior is not so much specialised as subordinates are. Superior is unable to perform the total work efficiently. Ifhe delegates the work to his subordinates, the

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outcome is quality produce because of services rendered by the specialised subordinates. Supervisor or manager feels proud of quality production. The talents and abilities of subordinates are developed by delegation. The work authority is flown from higher to lower rung to get specialised performances. Effective delegation is feasible only when subordinates with adequate qualifications and attitudes are available in the organisation. Subordinates must be directed to ensure the achievement of goals. Four programmes are formulated to have effective delegation: viz., rules, goal-setting, indoctrination, technology and work flow.

Rules Rules are formulated for implementation of decisions. Rules save time for the executive as the subordinates are not required to consult him frequently. Decisions are made more quickly and effectively. Rules are set up to standardise operation. They are used to guide and control the performance ofthe subordinates. Written rules avoid conflict while unwritten rules facilitate work. Rules decide the scope of performances: authority, autonomy and objectivity. Subordinates exercise their power within the given rules. Rules establish consistency, permits routinisation and reduces personal dependency. Consistency is essential for reducing the possibility of personal feelings. Consistency is observed, uniformity is maintained and standard work is feasible by rules which are important segments of delegation. Awards and penalties are determined as per rules. Delegation becomes effective only when conflict between delegator (supervisor) and delegatees (subordinates) is avoided which is possible by a set of rules. Rules make easy for the subordinates to follow and the superior to exercise authority under delegation. Rules put a check on the arbitrary decisions of the superior and whimsical performances of the subordinates. Delegation confers certain duties and responsibilities on the subordinates who can di3charge them if rules for the purpose are fra.med effectively. Well thought out rules establish limits within which employees are free to act. Ifthese limits are violated, the superior takes disciplinary actions on the employees. Delegation facilitates smooth functioning of the organisation through formulation of rules. Routine and smooth job performance enables the superior to achieve the . target. Routinisation provides autonomy to the employees who perform the job effectively within the rules prescribed. Rigidity of rules adversely affect delegation of authority and subordinates are unable to exercise proper and good judgement. Rigidity and autocracy hampers the efficiencies of people. Many times, unnecessary and difficult rules are not followed. It creates conflicts and misunderstandings. Resentment and aggressiveness are visible under ambiguous rules. Discouraging individual initiatives mar the progressive performances of organisation. Qualified employees are subjected to unnecessary harassment prevented from demonstrating their merits. Frustrated employees discourage development. Rebellious employees can cripple an organisation by following only letter of the rules and discarding the spirit underlying behind them. Rules are made to guide and facilitate employees. Ifthey dominate and govern the employees; they become a farce. Organisation faces retrogative activities. Delegation uses rules to compass the functions of organisation.

Goal Setting Goal setting is the second component of delegation. Manager assigns specific duties to his subordinates as per delegated goal. Organisational objectives are reduced to time-bound targets which are reduced to individual goals setting provides definiteness in functions. Work-allocation and performance-measurement are definite possibilities of goal-setting under delegation. Costs are reduced and benefits are maximised by setting goals.

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Indoctrination Indoctrination means employees fully accept the goals and values of the organisation. Personal interests are overcome by organisational interest. Indoctrination is establishing organisational loyalty and commitment. It makes easier to delegate. Superior and subordinates are at parity under indoctrination. It permits innovative flexibility in performance. Delegation is visible in professional performances. Technology and Work Flow Delegation is not universal. Only technologically competent people are given work. Rules are framed for transfer of technology. Supervisor delegates his authority to the extent it is technically required by the employees. Well trained work is properly delegated to subordinates. Trainee becomes essential for getting meaningful performance after delegation. Trainee is given an opportunity to think about himself and to improve under able guidance. Delegation is successful where broad range of people are involved, where the work provides intrinsic job satisfaction, where the work group accepts management's objectives, where employeesmanagement relations are harmonious, where consistency and co-ordination are present, where technology permits individual autonomy and where subordinates welcome responsibility. Delegation of Authority Delegation of authority is an important function of organisational behaviour. Top management cannot perform all the functions themselves. He has to take the assistance of his junior management. Department and organisational structure is created to get the work done. Without delegation, there would be only one department and organisational structure will be limited. Proper function is impossible. Delegation of authority becomes essential to get the work done effectively and smoothly. Delegation means conferring a particular assignment. A manager multiplies himself and gets results through others. Delegation has dual characteristics. Subordinates receive authority from the superior, but at the same time, the superior still retains all the original authority. It is like imparting knowledge. Teacher share his knowledge with others but still retain the knowledge. Delegation makes every work possible as it is the key factor for the success of management. Delegation is essential for proper performances as a person cannot perform all the work himself. It is required for developing subordinates. Delegation is required for depth management. Authority is the relationship between superior and subordinates. Uncertainty is removed as subordinates know specifically what to do at what place and time. Need of Delegation of Authority Delegation of authority is required for developing effective relationship, personal relationship, job-oriented relations, fair treatment, handling mistake and legitimacy. Developing Effective Relationship: Delegation of authority strengthens the relationship between superior and subordinates. When it is an established fact that superior can grant or withhold promotion of subordinates, the latter will behave properly. The reality is that superior can exercise his authority for achievement of his personal interest beside achieving corporate objectives. Problems of reward and discipline inevitably arise due to proper use of authority. It may cause frustration and adverse attitudes among employees. Delegation of authority is essential to minimise the frustration and create favourable condition. It helps people feel certain ambivalence toward authority.

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Employees have certain needs such as social and esteem needs besides basic and safety needs. Under social and esteem needs employees develop sense of accomplishment, autonomy and professional acumen, which they would like to demonstrate in the organisational functions. While delegating authority, management must see the that delegates should get praise, fair treatment and approval. Ifmanagement does not provide enough independence onjob, employees will see it themselves by resorting to absente~ism, unionism etc. On the other hand too much freedom to work properly should be avoided. Delegation facilitates the employees to get adequate amount of autonomy and professional satisfaction.

Personal Relationship: Personal relationship between superior and subordinates is needed for congenial functioning of organisation. Employees require approval of their work. Superior must value the employees' individuality too so that the latter may develop the feeling that the former is always helping them. Personal relationship is developed under delegation of authority because feelings of approval and personal relationship are created by effective delegation techniques. The feeling of approval is developed in many ways under delegation process viz., taking active interest in subordinates, listening to their problems, praising them at outstanding performances, showing tolerances at the mistakes ofthe employees. The supervisor is delegated So much of authority so that he can foster the above qualities and atmosphere. Supervisor should be interested in the welfare of his subordinates. It should be accepted by the employees that the supervisor is helpful and sympathetic towards them. If they take the helping attitude of superior as his mistake, the personal relationship will be distorted when it is revealed to supervisor that he is being be fooled and calmed down by his employees on his humble attitude. The delegation of authority gives the limit of behaviour to superior and his employees. The superior must develop personal relations for approval of employees. He should know his subOrdinates to help them in their problems. Employees firstly like to be treated as person. Corporate is impersonal and its functions are also impersonal but employees require personal treatment which is possible only through the immediate boss who can provide personal touch. A good manager looks after the personal problems of employees and suggests suitable measures to overcome them. The social and €~conomic barriers should not come in between them because such barriers prevent smooth communication. An employee bothered with the personal and homely problems cannot devote significantly in the development for his organisation where he is working along with other employees. If the manager and employees know each other, both will be freer to bring up mutual problems. Manager encourages subordinates to undertake the job willingly ..They should come up with suitable suggestions. This approach reduces the number of orders which are considered as nose poking dissatisfaction by employees. Delegation of authority is indirectly observed when the superior asks his employees how to complete a particular job instead of instructing them to do the work in his own way. The suggestions of employees many times tally with the instructions of superior who hope to get

better performance under congenial atmosphere with mutual understanding. Informal delegation of authority is witnessed when the employees are given opportunities to take decision at operational level. Supervisor putting problems before the employees and getting solutions thereof from them is getting more success than the supervisor keeping distance from employees. There is one risk of being levelled as incompetent supervisor if such activities are always repeated. The authority given to a supervisor is judiciously exercised by him to get work done while establishing personal and congenial relationship.

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Job Oriented Relations: Personal relationship is aimed to get work done by the emploYMs. The job oriented relations must be present where personal relationship is developed. Personal relationship developed for personal gain becomes suicidal unless it is accompanied with job oriented relations. Manager must have the quality of job-centered and employee-centered relations with the subordinates. The authority delegated takes care of job centred relationship. It initiates job performances whereas personal relations help achievement of job performances. Employee-centered relation is a means to achieve job-centered relationship. Job oriented or centered relations include providing information, consulting subordinates and listening to suggestions. Delegation of authority permits the supervisor to give information to his employees as much as is needed for work performance. The job expectation, job designs and job performances are told to the employees. Keeping employees in dark about the job perfonnance makes them irritated and disbelieve the management. Misinformation makes employees misunderstood and suspicious to management. Less information makes them incompetent and no information makes them dormant. Fully and properly informed employees are satisfied because they know what to do and how to do the job Employees feel satisfied ifthey are given information because they develop the sense of confidence. Many employees need detailed information and instructions for' completing the job effectively. They want that the boss should be always available for consultation. A favourable gesture of supervisor motivates them considerably. Employees expect full information from the supervisor as well as prefer to tell something to supervisor. Supervisor consulting the subordinates gets their confidence. Employees get job satisfaction and work motivation. It is better to discuss with employees for solutions rather than pouring instructions on them. Instructions are rarely welcomed whereas suggestions are always accepted by both of them. Supervisor has to increase the sense ofinvo!vement which is 'feasible through delegation of authority to participate in the decision at work. Effective manager permits the subordinates to comment and to ask questions. Supervisor listens to the suggestions of the employees. He gives freedom to raise objections and suggest solutions. Manager gets more useful ideas and positive feelings ifhis subordinates are permitted to suggest at and beyond the job. The sense ofbelongingness is increased ifthey are given the opportunities offree expression. Acceptance of their decisions improves productivity and efficiency of employees. Employees can provide valuable suggestioris as they work close to the job. They know more than their boss because they have day to day information of their job content and job context. Delegation of authority considers all those points which are essential for effective performances and it is conferred upon the employees as per the need of the jobs. Fair Treatment: The boss's fair treatment to subordinates provides effective performances and proper use of delegated authority. Superior demonstrates his sense of fair play by letting employees know what exactly they have to perform. The delegated authority is legitimately accepted by subordinates who are treated equally by the supervisor. Delegation of"authority is proper when favour is avoided and emplqyees are treated as individuals. Inconsistent treatment is avoided to prevent adverse attitude. Manager should avoid giving more attention to good as well as bad employees. If bad employees are given more attention, they would continue to be bad to retain their outstanding place in the organisation. Other employees would follow them to get extraordinary treatment which may be positive or negative. Supervisor should lend his hands to the employees when they need it badly. The boss should help them. The exceptionally good employees need exceptional treatment. They are given more attention to motivate them and pave the path to be followed by other employees. Irrespective of

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common rules, employees should be helped when they need it. When there is some problem at family level, employees should be granted leave. Supervisor must know human needs of each employee and treat them accordingly. Handling Mistakes: Subordinates are given definite set of goals to be achieved by them. Treating employees as family members is welcome step of delegation. Mistakes should be realised by employees who should swear not. to repeat such mistakes. Forget and forgive is divine but it can be exercised only two or three times. If an employee is constantly commiting by mistakes, he should be punished for that. Helping attitude of a supervisor reduces the chances of mistakes. Many managers blame others but blaming does no solve the problem and improve the employees. The diagnosis of mistake is essential rather than post mortem process. The causes of mistake are avoided to prevent its recurrences. Mistake becomes a part oflearning and training. During initial days of appointment, mistakes are observed. If the employees are told how to avoid the mistake, recurrences are avoided by them. Motivation is essential for avoiding mistakes. Employees are encouraged to learn without making any mistake. Many a times, subordinates recognise their mistakes and correct them immediately before the superior's knowledge. Employees should know how ajob is performed. If they are in dark about the causes of mistake and remedies thereof, they harm the organisation. Unintentionally committed mistakes are brought to surface by supervisor. The causes of mistakes are investigated, and remedies are put forward for avoiding mistakes. Some mistakes are due to negligence, which can be avoided by training. Focus should be placed on the job operation and personal blame should be avoided to correct the employees. Skilful interviewing is resorted to, to make the employees realise the mistake and causes of mistake. It improves and develops the employees. Legitimacy: Legitimised power is authority which is delegated to subordinates for effective performance. It is exercised considering background of employees, their technical skills and situations of job. The qualifications and merits of delegates are appraised before giving them power. Low qualified employees cannot exercise delegated authority properly for the development of an organisation. Competence is highly desirable than the personal behaviour. A technically skilled employee is well regarded than the highly humanised employees. Authority can be effectively delegated if the delegator has an authority on and over it. Process of Delegation Delegation of authority means confirment of authority to subordinates by superior. It is simply entrusting a part of work to others. Through delegation, a manager multiplies himself. The entrustment of authority includes creation of accountability also. The process of delegation includes granting of authority, creating responsibilities and accountability after determining the objectives and jobs. 1. Formulation of Objectives: The process of organisation depends on the objectives. Formulation of objectives have been the prime functions of top management. Since he cannot perform all the functions related to objectives, he delegates some of his power to his subordinate management. The nature of objectives decides the form and process of delegation. If the top management is unwilling to share many of his authorities, he retains them and performs all the functions. But in production funetions, he cannot perform all the jobs. He is bound to delegate some of his authorities to subordinates to achieve the objectives. 2. Job: The job to be performed is decided by the nat'J.re of objectives. Job specification and job descriptions are based on the objectives. Job content and context are also decided accordingly. Job is divided into several tasks which are again divided into functions or operations. Based on

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the nature of objectives, the jobs are divided and subdivided. Job decides the process of delegation of authority.

3. Creating Responsibility: Employees are made responsible to complete their respective jobs. The job assignment implies responsibility creation for which employees are given certain authorities to achieve goals of job performance. Responsibility is attached with the job. It is not delegated. Superior has his own responsibility which is not delegated to subordinates. So, it should be clear that responsibility is never delegated. Employees of every cadre i.e., top management, middle management, lower management, supervisors and workers have their respective responsibilities which are not delegated to anyone although their respective authorities are delegated to respectively lower cadre for getting work done by them. Responsibility is a sort of obligation which remains attached with the respective jobs. It is the obligation of a subordinate to w.hom a superior has duly assigned a duty or task to perform the services required. It is obligation to carry out certain activities. Responsibility is created rather than delegated by higher cadre. 4. Granting ofAuthority: Manager confers some of his authority to his subordinates so that the latter can exercise some ofthe rights and powers to achieve the objectives. The subordinates can perform their duties and responsibilities when they are given some powers. Supervisor or manager transfers some of his rights such as use of money for organisational functions, appointment of persons to discharge the responsibilities and so on. The power of making decisions is given to subordinates who accept the authority of their superior. Authority is legalised and institutionalised power. Sufficient authority is transferred to subordinates so that they can perform their work effectively and efficiently. Superior delegates only some of his authorities and retains the final authority. It is like imparting knowledge where teacher has all the knowledge while imparting some of this knowledge. Delegation i:,; merely sharing, it is not complete authority vested into the delegatee, but it is mainly retained by the delegator. The authority can be reverted back by the delegator. The authority can be reverted back by the delegator ifhe considers that the authority transferred is misutilised by the subordinates. It is a right, the power given only to the right person. The top management delegates some of his authority to middle management who delegates some for this authority to lower management. Supervisor gets the power from the lower management. He manages his employees through delegating some ofthis authority. Manager delegates work for specific purpose. Creation of Accountability: Job has certain responsibility which must be carried out to complete the job. Whether job has been completed or not, is the accountability ofthe subordinates. Since subordinates are delegated authority to discharge their responsibilities; they will be accountable to the superior for performance. In simple words, accountability is observed because of delegated authority. Subordinates cannot misuse their authorities. They are accountable or answerable as to how the authority has been used for discharging their responsibilities. Accountability is the last function of authority. It is the liability created for the use of authority. It is the answerability for performance of the assigned duties. Each person given authority and responsibility has to answer how he has used these for achieving their goals. Job is derived from objectives, responsibility is derived from job. Authority is derived from responsibility and accountability is derived from authority. In simple words, an employee is accountable for the proper exercise of his power received from superior. When subordinate is assigned ajob; he is responsible for performing the job for which he is delegated certain authority. The final process of delegation is holding the subordinates answerable or accountable to his superior for fulfilling

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the assigned responsibility. Accountability flows upward from subordinates to superior as it is the reverse of authority which flows downward from superior to subordinates. Objectives

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Top Management Middle Management

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Lower Management Supervisor Workers

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Responsibility Fig. 15.2 Relationship between the Processes of Delegation

Process of delegation of authority is known as pyramidical organisation. Top management grants authority to middle management who confers it to lower management. Subordinates get some of their authority to discharge their responsibility. Responsibility is not delegated. It remains at each level of organisation in its original form viz., for which the cadre/personnel are responsible. Each cadre has to perform its own jobs for which they are responsible. Unless he is given authority; he is not accountable. So conferring authority necessarily creates accountability. If accountability is not created authority is misused and responsibilities are not fulfilled by the subordinates. So, it becomes essential to create accountability which flows upward viz., from employees to supervisor, from supervisor to lower management, from lower management to middle management and from middle management to top management. In line organisation, the subordinate is accountable to only one superior and in the functional organisation, the subordinate is accountable to more than one superior viz., office people, factory personnel, finance controllers and so on. Top management has all the authority to do all the jobs and functions ofthe organisation. He appoints proper personnel to perform his job because he alone cannot perform all the jobs. He delegates some of his authority to middle management who are entrusted to fulfil specific jobs which is attached with responsibility. To discharge the responsibility, middle management is given authority by top management. He is accountable to top management because he is given certain authority. It is known as management multiplies itself. The delegation of authority creates a chain of command. Delegation of authority has certain compulsions because oflack of time and energy, complex techniques and geographical dispersion. Delegation motivates people because they get the chance of self··development and job-satisfaction. The final responsibility is retained with the top management. Technically speaking top management is given authority by shareholders to whom he is aceountable. The operational organisation starts from the top management.

Centralisation Additional concept of centralisation and decentralisation have added some configuration to the organisational structure. Decision-making process is the key point to decide the

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centralisation and decentralisation. When decision making power tends to be concentrated with the top management, it is centralisation. Similarly when decision-making tends to be dispersed, it is decentralisation. Centralisation and decentralisation are opposites. These are two extremes which are theoretically discussed but practically non-feasible. The mix of centralisation and decentralisation are observed in all business houses. Delegation of authority and centralisation co-exist because centralisation relates to decision-making power whereas delegation of authority is conferring authority from higher to lower for performing business operations. The delegation of authority relates to functions and organisational activities whereas centralisation refers to decision making power which is retained by the higher authority. Delegation of authority and decentralisation are not the same thing. Decentralisation means dispersion of employees and physical facilities whereas authority to perform certain jobs is conferred from higher to lower cadre. Decision-making power is scattered in different offices under centralisation. The power flows from higher to lower cadre in case of delegation. Centralisation is suitable when organisation is small, communication is effective and work is standardised. Span of control tends to be narrowed down under centralisation. It helps personal leadership, better integration and co-ordination. Uniform policies, practices and actions are visible in such form of organisation. Decentralisation Top management disperses his activities to be performed by different cadres of employees. The decision-making power is given to several people to perform their work effectively. Unlike centralisation, top management or head office does not like all the decisions in case of decentralisation but it is decided by all of them separately for performing activities of their respective areas. Practical solution of all the centralised problems is to divide the organisation into semi-autonomous decision making units. A large number of decision centres are spread over throughout the work place in case of decentralisation. The employees are given more power as they are involved in decision making process. Division of power is practised and each division is given suitable power to perform their respective jobs. Delegation of authority refers to transfer of equal level of authority at a cadre. Decentralisation experiences high degree of the delegation of authority-responsibility to lower level of offices of the organisation. Delegation is a process: Decentralisation is the result of planned delegation. Delegation is from superior to subordinates. Decentralisation is the transfer of power of main or head office to division or lower office. Decentralisation is visible at departmental level also. Delegation is essential for operation. Decentralisation is optional for effective performances. Decentralisation provides autonomy to the lower level of offices. Delegation of authority encourages decentralisation. In other words, decentralisation is closely related to delegation. It decides what is to be delegated, what policies are used and what will be the personnel functions. The degree of decentralisation is influenced by the amount of delegation. It includes the authority and responsibility given to different levels of employees. Their functions are decided. Promotion and award policies are included under decentralisation. - Factors Determining Decentralisation: Decentralisation has different degrees of delegation in different organisations depending upon their nature viz., costliness of decisions, need for uniformity in size, history and management philosophy of the organisation. Capability of managers and control mechanisms. Top management retains the power of decision making if it is of strategic importance. It has long-term consequences. If decision making at lower level does not hamper the basic policies and practices of an organisation, it is given to lower staff to make

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quick and on the spot decisions. It is assumed that top management is more organisationconscious than the lower management, so, giving more decision-making authority at lower level may create uncertainty and risk. Management has to decide whether higher level of delegation should be given to the lower staff. If uniformity is to be maintained, centralisation is needed because decision taken by one person will be more uniform than the decisions taken by a large number of persons. DecentraLisation creates no uniformity. In a larger organisation, decentralisation is more useful than the smaller size of organisation. Small firm can have effective performance of centralisation than the large firm. Small firms have horizontal agreement and vertical clearance. The management philosophy and organisation history also decides the amount of decentralisation. A competent manager does not fear with the decentralisation because he is capable enough to sort out the drawbacks of decentralisation. Co-orqination and control are effectively utilised by them. Developing a technically oriented organisation needs decentralisation. It encourages specialisation and job satisfaction. Research and development is facilitated with decentralisation. A growing organisation has diversified functions for which decentralisation becomes essential. Decentralisation leads to divisionalisation and departmentalisation. Divisionalisation refers to creation of divisional office as functional head offices. In a large organisation, like the Life Insurance Corporation oflndia, divisional offices have become operational head offices. They perform all the functions oftheir respective office. Head office becomes merely controlling office. It is avoided from the routine problems which are solved by the respective offices. Ifthere are a large number of functional divisional offices, zonal offices are created to control them. In India, the Life Insurance Corporation has demonstrated effective performance of decentralisation. Branch offices of LIC have been given more functions in some cities. They are working as divisional offices. The diversified and multiple functions arE.' easily performed under departmentalisation. Each department performs its own function. Decentralisation gives improved quality as product innovation is possible. A country like India where different languages and socio-cultural factors govern consumer market diversification meets different requirements of the market. Autonomy under decentralisation facilitates innovations in methods and techniques. Decentralisation dev(~lops employees and creates managers. Scope of promotion is increased, motivation becomes easy and feasible. Centralisation gives only messengers and not managers. Greater participation, communication and motivation are important outcomes of decentralisation. It does not mean that decentralisation is free from problems. There are certain areas of control and responsibilities which require centralisation viz., formulating corporate objectives, high technology and development programmes. Centralisation and decentralisation are equally important. Both of them are used with varied degrees in different organisations. Centralised control and co-ordination are needed with decentralised functions for the effective management of an organisation. QQQ

Chapter 16

LEADERSHIP 1.

2. 3. 4.

5.

MEANING FOUNDATION OF LEADERSHIP LEADERSHIP STYLE LEADERSHIP MODEL: (I) TRAIT THEORIES, (II) BEHAVIOURAL THEORIES, (III) PATHGOAL MODEL, (IV) CONTINGENCY THEORIES EMERGING APPROACHES TO LEADERSHIP (I) LEADER MEMBER EXCHANGE THEORY (II) LEADER PARTICIPATION MODEL (III) ATTRIBUTION THEORY OF LEADERSHIP (IV) CHARISMATIC LEADERSHIP THEORY (V) THREE DIMENSIONAL MODEL (VI) NORMATIVE LEADERSHIP MODEL (VII) TRANSACTIONAL LEADERSHIP

The success of an organisation depends on the leader, his attributes, approaches and problem solutions techniques. The leadership simply means quality of a good leader. It is the presence or the personality and treatment style ofleader which influences the behaviour of his fellowmen. Leadership is the focus of activity through which objectives of the organisation are achieved by self-motivating the employees. It is the quality which a manager must possess. All leaders are not managers because many leaders operate in non-organisational field, in public and at social platform. The manager has to work only in an organisation. All managers must be leaders so that their employees can function effectively and efficiently. The behaviour, attitude and performance of employees depend on the leadership. In business organisation, the role of a leader has become more important because he has to develop confidence and moral in the employees. Leadership by position is not so important as leadership by virtue. Formal leadership as based on position as well as informal leadership are equally important. Formal leadership gets work done from employees as authoritative person. Informal leader influences groupbehaviour without creating any disturbances. Formal leadership has authority and informal

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leadership has influence which is a desired attribute of all the leadership. Leadership without influence has no leader's success. Sometimes, only the presence of a person influences the employees to work effectively. Leadership is discussed under meaning, foundation, study models and emerging approaches of leadership.

MEANING Leadership is the factor that helps individuals and groups to achieve the goal. It is the process of influencing and supporting employees or others to work enthusiastically toward achieving objectives. There are three important features of leadership: influence or support, voluntary effort and goal achievement. Leadership is essential for guiding the activities. Leader is a guide, a director and a supervisor. The quality of a good leader is the catalyst that transforms potentials of employees into reality. Leadership identifies, develops, channelises and enriches the potential of employees for developing organisation. The difference between a manager and a leader is that the former has formal authority or position of power to influence employees while the latter has informal power to influence others to get the objectives achieved. Leader creates vision and inspires others to achieve the goals through stretching their capabilities. A manager must be apt in planning, organising, actuating and controlling. Leaders are expert enough to influence others to achieve the objectives. Leader may not be competent enough to perform all the functions of a manager. Leadership has been defined by several authors. Robert Tannenbaum has said leadership is communicative, interpersonal influence exercised in a situation is used for attaining objectives. Leadership has four essential components: Leader, Follower, Communication and Situation. Leadership is not only hierarchical. Even an employee may be capable ofleadership because of his leadership traits. Any person in a particular situation may be leader ifhe is able to influence others. A manager should have aU the attributes of a leader. Managers are generally impersonal. Leaders take personal interest in the employees. They talk more about the morale of employees rather than achieving objectives. Leadership works even in high risk position. Manager prefers smooth going. Leader takes psychological and emotional advantages. Stephen P. Robbins has defined: "Leadership as the ability to influence a group toward the achievement of goals."! It is the ability to influence others. Group has been given special importance to under leadership because it influences a large number of persons. Andrew D. Szilagyi, Jr. And Marc J. Wallace Jr. have defined, "Leadership is the relationship between two or more people in which one attempts to influence the other towards the accomplishment of some goals."2 It refers to relationship between two or more persons. This relationship has power base to influence others. The behaviour of a leader is also the power base of influence. The other person is influenced by the leader. It means that the follower has accepted the power of base of the leader. Leadership is an important component of management because it has to influence others to attain the specified objectives. Manager should be a successful leader so that he can influence employees to work willingly. Excellent managers have reasonably high leadership ability. George R. Terry has defined, leadership is the relationship in which one person, the leader, influences others to work together willingly on related tasks to attain that which the leader desires. 3 The definition has emphasised on the willingness of the worker and desires of the leader. Leaders desire what 1. Stephen P. Robbins: Organisational Behaviour: Prentice Hall ofIndia, 1996, p. 413. 2. Andrew D. Szilagvi, Jr. And Marc J. Wallace: Organisational Behaviour and Performance: Scott Foresman and Cornhausing, 1982,p.277. 3. George R. Terry: Principles of Management: Richard D. Irwin Inc. 1977, p. 410.

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the organisation aims for. But his immediate purpose is that workers should follow him and work as per his desires. The work is done willingly by the employees. He has influenced the employees so much so that they are performing willingly for the achievement of the goals of the organisation which are also desired by the leader. If the leader desires that his personal interest should be subserved many followers may object. So, he will not be a leader for getting his personal interest fulfilled. The influence is essential part of leadership. It comes from the relationship between the leader and the group members. There are interactions between these two parties. A leader leads employees and does not push. He pulls followers to the heights of achievement. He has the capacity to awaken the employees emotionally as well as rationally. The psychological treatment is more important than the rational because employees develop willingness to follow the leader only from their heart and mind and not merely by physique. He has to develop dedication in the minds of the employees. Leader inspires and develops the followers to achieve the stated objectives. He assumes the responsibility oflooking after the well-being of his followers. The threats and coercions are not part of the leadership. It is the mutual trust and confidence which develops leadership. Confidence reflects experience and technical ability. Leader helps group to attain its objectives. Harold Koontz and Cyril O'Donnell have stated, "The function of leadership is to induce or persuade all subordinates or followers to contribute to organisational goals in accordance with their maximum capability."4 Leadership has been discussed by several authors in management technique. It is a crucial part of organisation theory and corporate development.

Nature of Leadership The leadership has definite characteristics which are retained by an effective leader. His performance communication influence power base interaction, acceptance, followers, situation and attributes are important nature of leadership. 1. Performance: The performance of a leader directly influences the led. Ifhe asks employees to come in time; he himself has to reach the work place in time. The worker follows his behaviour and functions automatically. Work itself speaks what to do and how to dJ. The leader's performance itself guides and motivates the employees. The exercise of his authority demonstrates the way and methods of employees' performance. Leaders have to influence the followers by their functions. Mahatma Gandhi has influenced people by his functions. He' motivated and inspired the whole masses by his deeds. He was a great leader in the sense the people were ready to do or die for achieving his desires. The leader's performance increases the group's viability and members' satisfaction. 2. Communication: Leadership starts with communication whether by his deeds or words. The followers can develop themselves by observing and accepting the work or word communication of the leader. Although work communication is more effective, word communication is not least influential. Formal and informal communication, written and oral communication and personal and impersonal communications have their respective influences. So leadership must use appropriate communication in a particular situation. Many times, personal approaches by leader have long lasting impacts on the followers. Impersonal communication is needed for keeping followers at a distance to have effective influence on them. Similarly all other types of communication have their respective uses as per demand of different situations. 4. Harold Koontz and Cyril O'Donnell: Principles of Management: McGraw-Hill Book Company, 1972, p. 558.

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3. Influence: Leadership must have the capacity to influence others. Without influencing others, a leader cannot function at alL He influences others morally, socially and with strong communication. The outcome of communication is influence. The shape of influence desired necessitates the form of communication. The influence is long-lasting in the mind of employees who work willingly even at the small gesture of a leader. The position and competence of a leader decides the size of influence. An 1mbiased leader is more influential than the situational leader. Persons possessing honesty, integrity and competence are influencing the followers in a very small item and that, too, for long lasting period. 4. Power Base: The influence depends on the power base enjoyed by leaders. There are five bases of power: viz., coercion, reward, legitimate, expert and reference. When a person threatens others to work, it is coercion. But coercive power has no permanent influence. It gives negative influence and hostility is developed between the leader and his followers. It is a form of power base used in unethical and immoral activities. Theory X has been based on coercive power organisation appointing illiterate and inactive employees using coercive power to influence the employees to get work done. The fear of punishment and negative reinforcement influence the employees to work properly for attaining the organisational goal. Reward power as against coercive power propagates to motivate and make aware employees who have done some commendable tasks. This power base is used for influencing the literate and educated employees who are motivated with the reward which may be monetary or non-monetary. Legitimate power is derived from the position. Since leader is a manager, he can influence employees. His position has power. Going down from position, he has no power at all. This power is used to influence formally the employees of an organisation. Expert power is possessed by expert and technically qualified persons. The knowledge, skill and behavioural command are giving power base to influence others. A qualified manager is able to influence others even after this retirement. He is consulted by the organisation and employees on several occasions even after leaving the job. Referent power is possessed by a person because of his exceptional qualities. He is referred as model of organisational development. The power base is essential feature of leadership. 5. Interaction: The relationship between two persons is essentially desired in management. In public and politics, leadership does not require relationship. It is merely interaction between two parties. Without interaction no one is a leader or follower. The leader and followers interact on a particular subject and followers follow the leader's advises to act upon for attaining the objectives. A leader has to lead a group (not the single individual). Interaction between two individuals do not characterise leadership because the two individuals are associated only on certain relationship. Interaction includes some relationship whether formal or informal but relationship does no necessarily interact. Group is essential component of interaction with leadership. A group without interaction does not need leadership. Group members are related with leader. The relationship between leader and followers in an organisation is conditioned by the active forces of organisational activities. The employees' group operates under the able leadership of a manager. In organisation a manager must possess the qualities of leader, otherwise, he cannot properly interact with his employees. The interactive relationship varies from situation to situation, group to group and place to place. Dynamic interactive functions are a part of leadership. 6. Acceptance: The power base and interaction are accepted by followers. If the influence is not recognised and not accepted ]by followers, leadership does not take place in an organisation. The behaviour of a follower is changed and developed by the acceptance ofthe power ofleadership. The acceptance creates influences which solves the problems of organisation. The form and degree

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of acceptance is decided by the leader's ability and followers' psychology. Group psychology has greater impacts on the acceptance level of interaction between leader and fellow group members to influence their performances. 7. Followers: Leadership has followers. The link between the leader and followers is communication. Influencing others is leadership. So there must be others who are being influenced to attain the objectives of the organisation. Followers are the end user ofthe leadership through interaction and communication. No interaction is feasible without communication but every communication need not have the attributes of interaction which leads to influence others. Communication may not be accepted by others and the others are not influenced at all by the communication. Interaction leads to influence and every interaction ends with influence. Any doubts and problems are removed by interaction which requires two parties' both ways communication with feedbacks and ultimate action. Communication in itself does not result into final action always. Interaction and influences are possible when followers (not merely group) are present. Leadership has followers and not merely listeners. It has listeners as well as performers who are technically called followers. 8. Situation: Leadership is visible in a situation. In routine and regular functions. Leadership is not required. In some situations and specific environment, leadership is a must to guide the people to attain certain objectives. New ideas and motivational attitudes are developed by leaders who inspire people to solve the problems. In a particular situation, people or workers may be facing certain acute problems. They are unable to find solution. But a person comes in and gives them unfailed solutions. He is regarded as a leader. Such situation demands leadership. Problems and abnormal situations need leadership. It is not that leadership is sold or people throw them in life to be leader but the situation creates leadership and some people are emerged as torch bearers and light makers. They are welcome and regarded as leaders. Leader works in a specific situation totally different from routine functions. Leader, follower :md situation are important ingredients ofleadership. In one situation Mr. A will be more effective leader and in other situation Mr. B will be an effective leader. Leadership is situational. 9. Attributes: Leadership is the attribute of a leader. The qualities of a leader are specific. The main quality ofa leader i.e., the main function ofleadership is to influence others. In a such Bituation, leader can influence others. But the qualities needed for influencing others are personality, skills and charismatic influence. Leadership has its own personality. The behaviour, appearance and personal qualities of a person have led many people to achieve the objectives of ;>rganisation. The expert power is needed to become a leader. Intelligence, ambition, aggressiveness, polite and psychological stimulation are essential attributes of a leader. Successful leaders have skills of proper behaviour. Technical, human and occupational attributes are needed for leadership. The technical knowledge of the job makes a person leader to guide others. Accountants, engineers, doctors and other professionals have the requisite knowledge to train others. Human skills such as ability to inspire and motivate are needed for developing team spirit. The leader is well known in psychological treatment. He is able to create fire of function. The followers cannot live without function because the fire of work is ignited by the leader. Motivation, morale-builders and communicators are good leaders. They create sense of dedication, loyalty, zeal and zest in the followers. A good leader is that who gets his followers surrendered in him mentally and psychologically. Leader is not selfish. He has to look after the welfare of his followers. When the followers have surrendered themselves; it is the responsibility ofleader to protect the interest of his followers and help them develop into full-fledged human beings and successful individuals.

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The person getting blind support of people and not looking after their welfare is known as a cheater. Charismatic qualities are to be properly used to make people feel satisfied. The welfare and development offollowers rests upon leadership. A successful leader develops his organisation and his followers irrespective ofb-is personal interest. Leadership is the light of a group to guide individual members of the group to achieve the organisational objectives.

FOUNDATION OF LEADERSHIP Leadership has certain bases for helping an organisation. They are objective, situation, traits, followership and behaviour. 1. Objective: Leadership is to influence others for achieving certain objectives. It is always developed to attain the stated goals and objectives. Primary role of a leader is to get the objectives attained voluntarily by followers. They develop enthusiasm with the inspiration of the leader. Manager has a formal position to attain objectives. Any leader has certain objectives which is to be achieved by the followers. Leader has formal and informal influences only to achieve certain objectives. Leadership does not exist without objective. The objective may be formal or informal, present or future and so on. Leaders operate in the light of publicity, people know their achievements and failures. Leadership creates envious atmosphere in competitive situations. Leader should avoid such situations to achieve the objectives smoothly. 2. Situation: Situation makes a man leader and adverse situation retards leadership. A simple person can become a strong person as per the demand of the situation. In one situation a particular person may be very effective leader and in other situation, he will be a very weak leader. Leadership is situational. Leadership is visible in a particular situation. It is weakened where it is not needed. Different style ofleadership is needed at different places and times i.e., at different situations. For example, aggressive behaviour of employees, leader keeps quite and listens them carefully to find out psychological solutions. When employees are reckless, the leader will be strong and may use harsh language. Leadership is strongly affected by the situation from which the leader has emerged and in which he is operating. Mahatma Gandhi emerged as a great leader when India strongly needed independence. Vivekanand became most respectable person when he guided people who were facing dogmatic attitudes. Situation creates interaction between leader and followers. He does those things which are desired by followers. He works for the accomplishment of the group's requirements. The group supports him. People perceive the person who possesses the desired will and capacities to achieve their required goals. It becomes automatic and leader emerges as the most respected person. Leadership has multidimensional approach to solve the given problems and achieve the goals of the organisation. The job and environment in which he operates make him a successful leader. Leadership depends on the response ofthe environmental factors. Situation includes work environment, external, social, economic and political environment, group personality, work culture, characteristics of members, task needed and people's desire. A leader can be more effective in one situation and ineffective in other situations. Organisational effectiveness is under such situation when organisational environment is built favourably for the purpose. It suggests that there must be enough flexibility in the leadership to adjust to different situations. The social, economic, political and organisational environment are the main components ofleadership. Situation leadership is situational but situations must be created to make leaders more effective. Leadership is trained to be flexible in different situations while strongly adhering to the values of organisation and human behaviour. Flexibility is developed considering the degree of confidence of the followers, followers' jobs and power base of the

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leadership. The interaction of confidence, power base and jobs structuring are needed for developing effective leadership. They are also known as Controlling, Active and Structuring (CAS) for asking elders most effective. Reverse of these i.e. Permissive, Passive and Considerate (PPC) are needed in changed situation of organisation. Situational leadership is desirable based for the organisational development.

Fig. 16.1

External and organisational situations influence the leadership i.e., the interaction between leader and led. External situation includes social, economic and political environment. The working conditions, culture and relationship between leader and followers are included under oganisational situations. The leadership emerges, develops, gets used and decays under these situations. Traits: Leadership is the process of influencing others. It has the traits of influencing. These traits are basically attributes of good personality viz., ambition, decisiveness, drive, enthusiasm and health. The success ofleadership depends on the traits of intelligence , initiative, supervisory ability, self-assurance and pattern behaviour. Many cognitive and psychological factors help leadership, size and shape of body, physical characteristics and intelligence are important traits of successful leadership. Under personality chapters, it has been discussed extrovert, thinkers, sensors and justice-oriented persons are not very good leaders. Introvert feelers, initiators and perceivers are more effective leaders. It has been observed that drive, desire to lead, personal integrity, self confidence, analytical ability, knowledge, creativity, charisma, flexibility and principle oriented leaders are successful in managing people. It should be understood that the traits only do not guarantee for getting success. These traits should be utilised for leading people. People should demonstrate these traits to get success. Followership: Leadership is developed through the following of model behaviour. It refers that leaders are also followers. Leaders have to report to someone else from whom they have received authority. The top leaders are accountable to shareholders in business organisation as

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top ministerial leaders are accountable to public. They need validation for higher authority as well as they need support from their followers. The first requirement for a leader is to have followers. It is their potential qualities. Success of a leader depends on the number and quality of followers. It requires that a leader must be a good follower. Followership includes loyalty, supportive, constructive and anticipating problems and suggestions. Behavioural Approach: Leadership is based on the behaviour of the leader. His explicit and implicit actions influence the employee. Levert's philosophy, traits, attitude and skills are generally initiated by his followers. His style of functioning is reflected implicitly or explicitly in the employees. Competent leaders are more likely to influence their employees rather than incompetent employees. Employees perception of leadership is influenced by the behaviour of the leader. Employees' perceive what leader actually does. They do not respond solely to what leaders think and do but what they perceive about the leader. The basis of motivation differs from leader to leader. A leader may highly motivate the employees whereas other leaders are unable to im;pire inspite of high motivation factor. Different leadership styles are used to motivate employees. Negative behaviour is witnessed if penalties are exercised by leader. It discourages productivity. Positive leadership includes rewards, economic upliftment and autonomy.

3. LEADERSHIP STYLE Leadership differs from person to person according to their style of functioning in a particular situation. Leadership style differs from strongly positive to strongly negative taking into different forms from participative, autocratic free-rein structure, managerial grid and contingency styles. Positive and Negative Style Positive style includes sympathetic approach to employees, better employees' education, greater autonomy and other affirmative approaches to guide and control the employees. Negative style frightens the employees to perform the job under threatening conditions. Style is related with leader's model of organisational behaviour. It has been observed that the negative style is not more effective in a developed organisation whereas it is useful for manning illiterate labour. Participative Style Participative style includes management and employees co-operation for development of the organisation. Participative deeisions are not unilateral. It includes consultation of employees entrusted with the job of performance. The leader and employees work as social unit. They become a composite unit of organisation and undertake the responsibility of organisational performances. This style is consistent of the supportive and collegial models of organisational behaviour. Autocratic Style Autocratic style centralises power and decision-making in its leader. It maintains distances with the employees. The leader eonsiders himself most superior and dictates his decisions to employees. He takes full authority and assumes full responsibility of performances. Ifanything is wrong, he puts the blames on employees. It may be moderate when some rewards are given to employees for better performances. Autocratic leader generally believe in threats and punishment. He has some positive performances. Autocratic leadership helps quick decisions, prompt action and provides security and structure to employees. It helps maintain discipline and efficiency. It is beneficial for managing illiterate employees but is retrogative for guiding educated people. In the long-run, the fear and frustration are converted into revolt. They revolt

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against the autocratic functions. Many a times this style is effective as it is dominant style to control and manage the subordinates and other employees.

Free-Rein Style Leadership believing in free-rein style establishes its own goals and works out its own problems. Group members train themselves and provide their own motivation while leaders avoid power and responsibility. The leader plays a minor role in this style. He is simply a guide. He behaves indifferently and does not bother much about his function. Employees perform the jobs under the simple supervision of the leader. Unlike autocratic leader who ignores employees and group members, it gives more importance to the employees. Since leader is dormant, chaos and disturbances in the organisation are visible. Employees become uncontrolled and rowdy. It is dormant style. Task Oriented and Structure Style Leadership is impersonal and emphasis is placed on consideration and structure of the organisation. It is task oriented leadership style. Job consideration is the style of a leader who believes in work and performances. Structured and task oriented leaders believe that they get results keeping employees constantly busy and urging them to their work. They try to build teamwork, provide support and help them achieve the performances. Leaders are considerate and believe in work only. Work performance is always taken into consideration. The hierarchical power and prestige are least important Ignoring the cadre difference may create problems sometimes. So, the leaders do not ignore their position. They combine together the position and task. Many times they forget their positions and come down to the level of employees to get work done promptly and qualitatively. Task oriented style has achieved higher satisfaction and productivity. Employees feel satisfied with task oriented leaders as they do not find differences between themselves and the leader. Grievances, absenteeism and low turnover are reduced to minimum in such type of leadership style. Managerial Grid Style Robert R. Blake and James Mouton have given managerial grid as leadership style. They have given two dimensions of the grid; viz., people on the vertical axis and production on 9

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Fig. 16.2 Managerial Grid Style

Adapted: Robert R. Blake and James Mouton: Managerial Facades.

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horizontal axis. These two dimensions are similar to the consideration and structure functions as discussed in the task oriented and structured style. The employees' axis have 9 pikes starting from + to below to higher with 1 to 9 and similarly production has lower 1 to higher 9.

PRODUCTION A. Impoverished Style: The management exertion is depicted at the point where people and production are at low point i.e., 1 to 1 respectively. Management or leader is least concerned with people (employees) and production. It is known as impoverished style ofleadership. The leader is least concerned with employees and production. He is dormant leader and does not bother much about the people's welfare and production quantum. Leader under this category gives minimum concern to task and relationship. It is purely rule oriented leadership style. Bureaucrats use impoverished style of management when development of employees and achievement of the targets are not of much concern. Only getting the going on task done is essential. B. Country Club Style: Leader adopts country club style at point B as depicted in Fig. 16.2. He is highly concerned with people and has low concern with production. It gives the figure 9 and 1 respectively. He thinks that production will improve if the people's welfare are looked upon. Satisfied employees are an asset to an organisation. Paying personal attention to employees by the manager makes them confident and competent. However, it may create negative productivity if employees are given too much attention. They become reckless and have developed managerial inefficiencies. They try to know the drawbacks of leaders and disobey them. This theory is not always correct. Situational analysis reveals contingency approach. The point B gives maximum concern to relationship and minimum concern to task. Leader has implicit trust in employees and believes in development of employees. Developed employees develop the organisation. Leaders are known as developers. C. Middle of the Road Style: The leader at point C of Fig. 16.2 adopts a middle path of giving equal weightage to people and production i.e., 5 to 5 respectively. He is adopting balanced leadership style so that people remain satisfied while production is also increased. Many managers adopt middle path style for achieving production target. This style gives equal weight to task and relationship. "Depending upon the situation, either ofthem is provided importance." The leader is known as compromiser. He is considered poor decision maker. D. Efficiency Style: The leadership style at point D of Fig. 16.2 is known as efficiency style as more importance is given to production and less to people. In other words people are least bothered factors while production is more important and desired task. It gives 1 and 9 respectively. Conditions are arranged to get more production. With minimum welfare to employees, production is attained to the maximum. This condition is not always desirable because employees cannot be exploited forever. They would demand more perks if production has increased on their account. Efficiency style as depicted in Fig. 16.1 has maximum concern with tasks and minimum concern with relationship. Manager knows minimum about the employees but desires more achievement from them. Leader under this category is an autocrat. He is benevolent to a lesser degree.

E. Common Stable Style: In Fig. 16.2, point E indicates that people and production are given maximum attention by the leader i.e., the scores are 9 and 9 respectively for people and production. It gives maximum trust to employees as well as anticipating maximum return from the employees in the form of production. People and production are highly regarded under common stable style of leadership. It is considered best style of leader as leader is highly

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concerned with people and production. He is considered a team builder and production maker. This is the point which should be achieved by every management leader although this point is rarely achieved by them. This point gives more importance to task and relationship. The leader is a good motivator and sets high standards, recognises individual differences and develops team management. There may be different leadership style with the combination of people and production. If each and every pick of the figure is taken into account, 81 styles may be developed. Therefore, it is known as grid having 9 x 9 squares. This grid is used for assessing the leadership style at different levels.

Contingency Leadership Style A large number ofleadership styles are developed. None of them can be called as the best leadership style. The effectiveness of the leadership depends on the situation in which it is used for managing the organisation. It is known as contingency leadership style. The appropriateness of leadership style depends on the nature of the situation. Fred Fidler developed firstly the contingency model. He pointed out that the leadership style depends on the situation which may be favourable, unfavourable or neutral. The leadership style varies with situation. Fielder has given leadership style on the interaction of employee orientation with three additional variables viz., the followers, the task and the organisation. It determines the leader-member relations, task structure and position power. If the leader-member relations is not congenial, the leadership style has the different task structure which indicates the leadership style of performance. Leader's position of power describes the organisational power. Considerate employee oriented managers are more successful in situations favourable to leader. Situation favourable to the leader makes him a successful leader. Hersey and Blanchard have given four styles ofleadership under contingency theory known as telling, selling, participating and delegating. They have associated developmental stage with the recommended style. Telling is directive, low support, low ability and low willingness. Selling is coaching and supportive. It has low ability and high willingness. Participative style has high ability and low willingness. It has supportive and low direction. Delegating has high ability and high willingness. It deals with low direction and low support. 4. Leadership Model Various leadership models have been presented by different authors; but most important of them are trait, behaviour path and contingency models. These models are also known as theories. Effective leadership is a function of the characteristics of the leader, the style of leadership, the characteristics of the followers and the situation surrounding the organisation. It clearly indicates that the leaderhship models can be respectively termed as trait model (theory), behavioural model, path-goal model and contingency model. None of them can be a supreme model. Combinations of all these models makes an appropriate leadership model. Trait Model Leaders use their respective ch-aracteristics to make a power base which is fundamental to decide the leadership functions. Two leaders having different individual characteristics or traits use "the same power base differently. A liberal leader uses the power oftenly even for his personal satisfaction. Individual leader views the situation and adopts style management as per his traits. His characteristics, available resources and target person (followers) are combinedly considered for adopting a suitable leadership style. While exercising his power, leader

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takes decisions as per his characteristics, needs and role. The degree of acceptance and correspondence between the leader and his followers decides the level of influence exercised by the former. Authors of leadership have identified several traits required for effective management. They are categorised under physical, psychological and social characteristics. Physical Characteristics: Physical characteristics such as height, weight, age, soundness of health and body structure decide the leadership style of the individual leader. A tall person can influence the followers effectively than a person with moderate height. Elders are more influential than the younger people. A particular body structure will be used for influencing people in a special situation. Physical considerations are not absolute. It is relative with situation. In military and police; tall personality is more influential than the small body personality. It has been established that physique is not the only trait ofleadership. It is a situational factor. Psychological Characteristics: A leader's psychological approach has more influence on his successful performance. Task related characteristics have positive results on leadership. Responsibility, initiative and attitudes shapes the leader's qualities. Individuals exhibiting high motivation and need are able to achieve the results promptly. Intelligence makes people good leader. Intelligence is characterised with decisiveness, decision-making power, knowledge, influencing personality and tact. Influencing personality includes alertness, self confidence, integrity, dominance and achievement orientation. The perception, attitude, learning and other mental activities are governing factors for deciding the quality ofleadership. Inner motives and achievement drives make good leaders. Social Characteristics: Socio-economic backgrounds decide the effectiveness ofleadership. The social status, mobility, education, economic upgrade and educated people are successful leaders. Leadership is not born, it is acquired through education and experiences. Many low class and low caste employees have emerged good leaders because of their experiences. The situational phenomena have been contributory factor of developing leadership. Socially accepted leaders take active part in all the activities of the organisation. They develop harmony, trust and acceptability of a larger number of people. Many great leaders are identified with their traits. They possess ambition, energy, desire to lead, honesty and integrity, intelligence, self confidence and job related knowledge. Leaders are charismatic, courageous and enthusiastic. People who are high self-monitors are successful leaders. Traits are not abstract qualities ofleaders. Situation and behaviour are guiding factors for shaping traits as leadership.

2. Behavioural Model Behavioural model believes that a specific behaviour distinguishes a leader from non-leader. Common behaviour of a leader is visible but behaviour ofleader and non-leader totally differs from each other. Leadership style differs from person to person such as tough talking, intense, autocratic and so on. People are made leaders through their behaviour, training and development. Specific behaviour which identifies a person as leader is developed by the potential leader. It focuses on effective leadership and tells how a person can be more effective leader by adopting a specific behaviour. Task orientation and employee orientation behaviour have been considered effective tool ofleadership. The two main approaches have been designed by behavioural model: Ohio State Studies and University of Michigan Studies. (i) Ohio State Studies: Ohio State University has conducted comprehensive studies on behavioural approach ofleadership. It has identified two independent dimensions ofa leader's.

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behaviour. The Ohio State Studies have revealed the determinants of leader's behaviour and the effects of leadership style on performance and satisfaction. All the determinants of leader behaviour are classified into two: initiating structure and consideration. (a) Initiating Structure: Initiating structure is a task oriented leadership style. It defines the structure of a leader and his subordinates for achieving the goal. It includes behaviour that is required to organise work, work relationship and goal's achievement. It tells how to assign particular tasks to group members to maintain definite standards of performance. The behaviour of a leader organises the task, assigns the work to be done, establishes communication ne~work ' and evaluates work group performance. The behaviour initiating structure decides the level of leadership. (b) Consideration: Consideration is job relationship characterised by mutual understanding, respect for subordinates' ideas, friendship, support and concern for employees' welfare. It is employee-oriented leadership style. It is the perception of employees towards their leader. The managerial grid has discussed composition oftask-oriented employees and employeeoriented composition to task-oriented employees and employee-oriented le':ldership. Consideration means a leader considers his followers' welfare, well-being, status, satisfaction and comfort. He is friendly in approach and takes cares of his subordinates. The consideration is people-oriented leadership style unlike the initiating structure which is production-oriented leadership style. The combination of both types of behaviour i.e., structure and consideration has given managerial grid as discussed already under leadership style. High structure (product) and high consideration (people) is known as high-high leadership style which tends to achieve high rate of performance and satisfaction. It is given by point (P) in Fig 16.3. Similarly low-high leadership behaviour tends to low production and high consideration of employees as given by point (2) in the Fig. 16.3. High-low leadership as given in point (3) in the Fig. 16.3 which is production prone and less considerate of employees. Low leadership is less considered with production and people. It is point (4) in the Figure 16.3. It has been concluded by researchers that high-high leadership behaviour is desirable for getting high level of performance and satisfaction. Performance is related to production and satisfaction is concerned with people. There is positive relation between initiating structure and satisfaction in many cases but it is not correct always. Situational factors influence the effectiveness of behaviour determinants. Low-High (2)

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Initiative Structure Fig. 16.3 Ohio Studies Dimensions

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(ii) University of Michigan Studies: The leadership studies conducted by Michigan University has located behavioural characteristics ofleaders and performance evaluation. The purposes of such studies have been to identify styles of leader behaviour of increasing work performance and employees' satisfaction Michigan Studies have revealed two dimensions of leadership behaviour i.e., job centred leadership and employee centred leadership. .

(a) Job Centered Behaviour: Job centered behaviour emphasises on technical or task aspects. The main concern of this leadership is to achieve group's tasks and group members. It focuses on the use of close supervision. The leader exercises legitimate and coercive power for getting work done by employees. He evaluates work performance. The leader tries to establish relationship between leadership and effectiveness. Job-oriented behaviour increases productivity because of direct pressure and close supervision, emphasis on the use of rules and procedures, increased programme on turnover and development of production techniques. However, it decreases satisfaction of employees if job is given too much significance ignoring the employees' needs, attitudes. The two types of behaviour are not absolute solution. It is greatly influenced by situation. Leadership takes situational conclusions. In normal situation, employees centered behaviour is successful because group is going smoothly. The group members try to increase productivity while getting job satisfaction. Job centered behaviour is required under abnormal situation because production is given prime ihlportance for the survival and growth of the organisation. Employees are pressurised or coerced for getting higher performance. The Ohio State Studies and Michigan Studies have concluded similar findings with different names. Ohio Studies have two dimensional viz., initiating structure and consideration which are respectively job centered and employee centered behaviour of Michigan Studies. Mix of initiating structure and consideration at high level gives higher effectiveness depending heavily upon situational factors. Similarly, job centered and employees centered behaviour at higher level increases productivity depending upon the situation.

(b) Employee-Centered Behaoiour: The behaviour emphasising interpersonal relationship between employees and leader is known as employee centered behaviour. A leader takes personal interest in the needs and welfare of subordinates. He maintains differences between leader and employees. It relates with high satisfaction. Michigan Studies have concluded employee-oriented leadership as it gives higher group productivity and job satisfaction. This leadership emphasises on delegation of responsibility and employees' advancement and personal growth. Supervisors are given extensive training to establish and strengthen congenial relationship. Employees develop efficient work-flow procedures, cohesive behaviour and mutual trust. It provides a platform for increasing productivity and personal satisfaction. The studies have concluded that the employee centered (oriented) behaviour is very good leadership. Behavioural Model or theory is complex. Different levels of job centered (production oriented) and employee centered (people oriented) have different impact on productivity, performance and satisfaction. Situation factors contribute to the behavioural level ofleader who is using job centered and employee-centered leadership styles.

3. Path-Goal Model Goal plays central role in leadership development. Leadership model of path-goal was initially presented by Martin G. Evans. Path-goal theory is uerived from the expectancy theory of motivation. Lea4ership is closely related with work motivation and power-base. Robert House

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has developed this theory to make leadership more effective. This theory states that the leader's job is to create structure, support and reward so that employees reach the organisational goal. Leader has to create healthy work environment for employees' satisfaction and better performances. It tells clearly about role clarity, goal expectancies, satisfaction and performance. Path-goal model is analysed under process improvement and leadership style.

Process of Path-Goal Model Path-goal model identifies employees' needs, providing appropriate goals, connecting goal achievement, work rewards and clarifying expectancy and instrumentality relationships. Appropriate

Expectancy Fig. 16.4 Path-Goal Process

1. Employees' Needs: Performance and satisfaction are important components of path goal model. Employees get satisfaction when their needs are fulfilled. As per Maslow, the five hierarchy of needs are required differently by different cadres of employees. Employees are motivated considering their respective needs. Leader has to assess the respective needs requirement for motivating them to get higher performance and satisfaction. 2. Appropriate Goals: Establishment oftargets and objectives are essential for successful performance. Objectives are formulated for long-term as well as short-term period. The short term period objectives are based on long-term objectives. Goal is generally short-term. It provides methods of measurement so that performance is compared with goal of an employee to award them for higher performance and remind for lower performance The performance standard is based on goals and past achievement. A person can perform better when he has specific goals. In other words, human behaviour is goal directed. Goal setting pre-requisite worthwhile goal considering the available resource and different environment. The leadership plays an instrumental role to use the resources for right performance. Goal is like a compass to guide the employees towards a distinct path and destination. Uniformity and cohesiveness are maintained with the tool of goals and targets. Without goals, different employees will go differently. Work will go astray. This problem continues until workers are set on goals. 3. Goal Achievement: Management by Objectives (MBO) is the popular philosophy where at the leader and employees usually agree to carry out the work to attain the objectives. Corporate and departmental objectives are achieved respectively by them. Objective leads to proper functions, functions are tallied with objectives, deviations are noted and corrected for future planning. Leader's behaviour emphasises on mutual goal setting, planning and periodic reviews of its progress. It resets goals, planning and action. This cycle continues throughout the life of the organisation. Path-goal oriented behaviour of a leader makes employees specific, accepted and challenging to task. 4. Rewards: Path-goal model provides rewards to the employees. It provides opportunities to get maximum reward benefits through attainment of objectives. Rewards and punishments are attached with this model. The employees' performances are increased through personal payoffs which are achieved by coaching and directing of employees. The expectations of employees are revealed which are used to motivate them.

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5. Expectancy: Goal leads to expectation which prompts us to achieve and get rewards. Employees are developed with high vision which is a long-range image. It is an idea of what can or should be achieved. It increases commitment and enthusiasm. Shared beliefs and values serve as bases for the creation and change of organisation's culture. Vision is the key factor for developing leadership. Development of organisation depends on the vision of managers. They are responsible for creating environment projecting future conditions and developing master strategies for achieving goals. 6. Instrumentality: Providing feedback to leaders by employees creates successful path of goal achievement. Knowing the needs and desires of employees, creating conducive environment, reducing frustrating barriers, increasing opportunities for personal satisfaction and awarding employees according to their performances are instrum~ntal for creating smooth path of goal achievements. Leader attempts to make the path to subordinate's goals as smooth as possible. Leader's directiveness is positively related to satisfaction and expectation of subordinates. Supportive leadership has most positive effect on performance and satisfaction. Path Improvement Path-goal theory is half-way suggestions of leadership. It requires consideration of situations. Fielder, contingency model has improved this theory. Path-goal theory considers only goals and methods to achieve but it ignores the contingency factors which are important for leadership development. Contingency or situational factors such as personal characteristics of subordinates and environmental factors are considered for developing leadership. Path improvement includes task support, psychological support and role modelling. Task Support: Task support means leader helps employees to perform their respective task. He assembles the resources, money, power and removes constraints. He exhibits upward influence and provides recognition contingent upon performance. Leader behaviour is motivational. He helps satisfY the subordinates by fulfilling their needs ofjobs. Awards are given at better performance. He provides coaching, guidance, support and necessary activities for effective performance. Leader attempts to influence the subordinates through his behaviour. Psychological Support: Only task support does not satisfy the employees. They require psychological push the leader's behaviour. For example, the enthusiasm and zeal of the leader motivates the employees or better performances. Employees want to learn from the leader. Such situation is highly motivational. Leader behaviour is acceptable to subordinates only when they realise that the former behaviour is immediate source of satisfaction or instrumental for future satisfaction. Role Modelling: Subordinates follow the leader's action. If he desires that a particular system prevail in the organisation, he himself should demonstrate the behaviour. Preaching is not followed. So, it is essential to practically demonstrate rather than preaching the principles. It is known as playing the role of a subordinate. Role playing is very effective behaviour of a leader to make his employees effective performers. Leadership Style Leadership style is an essential part of path goal model as it tells what to do and how to do which are respectively goal and path. Going on the path to attain the objectives requires a specific style. In other words, the success of path and goal depends on how the path is travelled to attain the goal. Goals increases the employees' expectancy. Leader has to exercise his style of functioning to motivate the~ to achieve goals and rewards. One style is not appropriate for all the employees.

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It differs from employee to employee. Generally, there are four types ofleadership style; viz., Directive, Supportive, Achievement oriented and Participative leadership. (i) Directive Leadership: It is authoritarian leadership. Subordinates are instructed to perform the job in a specific manner. Leader gives specific direction. There is wide difference between leader and employees. Leader is considered superior and employees are inferior. Leader's voice is final. Employees cannot question his instruction. Work schedule is framed by the leader. He is responsible for task assignment and standardised performance. Autocratic leadership styles come under this category as the leader takes full authority and responsibility. He gets work done even by coercion and threats. (ii) Supportive Leadership: Unlike directive leadership; the leader is friendly and sympathetic to employees. He helps them in need. He is concerned always with the problems of employees. Distance between leader and employees is maintained but it is not unapproachable. Leader demonstrates helping attitude for developing employees' well-being. Healthy and helpful atmosphere is created for the satisfaction of employees. Leader is known as benevolent autocrat. (iii) Achievement-Oriented Leadership: Achievement-oriented leader sets high expectations for employees, creates confidence in the employees, inspires desired behaviour and motivates to achieve maximum possible result. Challenging goals are set by the leader to be achieved easily by the subordinates. Leader uses justice to award or punish the subordinates. (iv) Participative Leadership: In achievement of goal, employees are invited to participate in decision-making process so that they willingly execute the decision. The suggestions by employees are directly and indirectly given to the leader who incorporates them in his final decision. It should be known that decisions are still made by the leader. He does not accept the suggestions of employees in toto. Suggestions are welcome but the leader's word is final.

Contingency Model The trait behavioural and path-goal models ofleadership are effective in different situations. They are contingent upon certain conditions. Social psychologists have revealed different situational variables upon which the success of different theories of leadership depend. Their impact on leadership, behaviour, perfonnance and satisfaction are analysed to understand overall theories ofleadership. There are a large number of exceptions to the existing knowledge or model of leadership. These exceptions are important and are evaluated for full understanding to the leadership model. This is known as a contingency approach which is divided into two models: Contingency model and situational leadership model. (a) Contingency Model: Contingency model was developed by Fred E. Fiedler. He recognised situation based model. This model. is based on task and employee oriented models suggesting that their success depends on favourable, unfavourable and intermediate stages of situation. If situation varies, the leadership also vary. If it does not vary, it is not effective leadership. The Fiedler model is based on leadership style and the favourableness of the situation. The leadership style include the production and people oriented styles. He has explained his model under three dimensions, viz., leader-member relationship, task structure and position power. (i) Leader-Member Relationship: The acceptance ofleadership by followers or subordinates is known as leader-member relationship. This relationship depends on how much the leader is accepted by the group. If the group does not accept a leader's presence, the relationship is non-existent. Similarly, if the acceptance is low, the relationship is also low, unless relationship is developed, leadership is not accepted. It creates friction between leader and subordinates.

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Task Structure: Contingency model has the second dimension known as task structure. It is the degree to which our specific way is required to do the job. Task structure may be totally structured or defined. It may be unstructured too wherein the job is open and no specific method is given for completing the job. Task oriented or production oriented leadership is defined on task structured leadership. Highly structured job is preferred because there is no scope of doubt of job. Unstructured job gives more autonomy to the employees but it provides platform for disuniformity and dissimilarity in job. (iii) Position Power: The third dimension of contingency model is position power. It reflects the formal authority. It describes the organisational power that goes with the leader's position. His position may have power of hiring, training, promotion and placement of employees. Situations playa crucial role in deciding the degree of composition of all the three dimensions. Situation is favourable when all the three factors are high i.e. good relationship, high structured task or production oriented and high power position. Great deal of authority makes effective leader. (ii)

Degrees I l. Relationship

2. Task Structure 3. Position Power

+I I I

0

II

III

IV

V

VI

VII

VIII

I

I

I

I

I

I

I

0

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Low

High

Fig. 16.5 Combination of Dimensions of Leadership

High degree has VIII degreeB in all the three dimensions. It is a very favourable situation for leadership. Similarly, when an the three dimensions are at I; it is low degree ofleadership. The situation becomes totally unfavourable if these three dimensions are at low. Between low and high degrees of leadership, practically almost all the leadership exists. This situation is known as hard-nosed type of leadership. It is more effective than the low or high leadership. Moderate relationship, structure and power is effective in many situations. There will be 8 3 or 8 x 8 x 8 =512 types ofleadership based on different dimensions although. Fiedler has not given such explanation under Contingency Model. He opined task-directed leadership as most effective because the leader has power, informal backing and well-structured task. He pointed out that task-oriented leader is successful in unfavourable situation. He states leader-member relations are positive, the situation is favourable. Structured leader is more effective. The situation is decided on the bases of people, task and organisation. Leaders should be flexible in use of these dimensions. Least Preferred Co-worker: Fiedler has developed unique technique to measure leadership style. It is known Least Preferred Co-worker that is how leader perceives his worst co-worker. He relates it with human relations and task direct style. Human relation or lenient style is associated with relatively favourable description of employees, i.e., co-workers. Task directed or hard nosed style is associated with unfavourable description. Neither lenient style nor hard

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nosed style is effective because situational factors mostly influence them. So, Fiedler has suggested that more emphasis be given to situational variables or factors. Leaderships is a combination ofthese two variables viz., lenient style and hard style depending on situations. He has given combination in the form of contingency model of leadership effectiveness. He explained that the leader's behaviour is measurable as it exists in between LPC (Last Preferred Co-worker) and identified favourableness of the situation. Leader works in between very favourable and unfavourable situations. Performance and LPC are positively correlated as favoured employees perform better. Human relations oriented leader is more effective. Leadership model is a combination of various factors such as task oriented, people oriented and environment based. Leadership style is not fixed, it is variable as per contingent upon situation. Leader may increase or decrease task structure under some situations. Position power also vary as demanded by situation. Leader exerts strong power in an atmosphere of tum moil. Less power is exercised in normal ~ituation. When employees are educated; they participate in decision-making process. Effectiv'3 :r:>adership changes its style as per contingency. Leader needs training for handling the situation. He has to modify his behaviour according to environmental changes.

Situational Leadership Model Paul Hersey and Ken Blanchard have developed situational style depending on followers' acceptance, readiness, maturity and willingness. Regardless of the experience of a leader, he is not successful unless followers accept him as a good leader. His effectiveness expands on his followers' ability. The readiness of his followers has been defined by Hersey and Blanchard as willingness to accomplish a specific task. They have emphasised on competence and commitment, which are respectively known as ability and willingness. (i) Competence: Leadership's success depends on competence of his followers. The development level of employees influences the effectiveness ofleadership. Employees' knowledge, job skill, ability to perform, willingness to undertake the responsibility and capacity to work independently facilitate a leader to perform better. Behaviour ofleader contributes to employees' development as stipulated. Appropriate guidance,job experience, performance and reward make employees feel satisfied at job. (ii) Commitment: Employees' commitment to work helps a leader to achieve the organisation's goals. Committed employees readily accept the job assigned by the leader. Ability and willingness of employees influence the degree of success. Four Styles: Hersey and Blanchard used the same two dimensional points of Fiedler but in four different ways. Task-oriented and people-oriented dimensions are combined and they are known as Telling, Selling, Participating and Delegating. (i) Telling: Employees are at the initial stage of ability and willingness. In other words, they have low competence and low commitment. Leadership style under such situation is directive and low supportive. It requires high task structure and low people orientation. This is called high task and low relationship. The leader tells employees the rules of performances. He directs them how, what, when and where to perform the task. Telling is directive behaviour of leader because employees have neither competitive spirit nor commitment. (ii) Selling: Under selling stage, employees have low ability and high willingness. They are directed and supported by the leader. Leader has directive and supportive behaviour. It has high task and high relationship style. Selling style is useful in the situation when people are

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unable or have less competence but have willingness to perform the job. Employees are motivated to acquire more knowledge of the job. (iii) Participating: The employees are treated highly although they have low task relationship. It is suitable to those employees who have high ability and low willingness. Leader uses supportive and low directive behaviour. The leader and followers share in decision-making process. Leader encourage frank communication. He provides all the facilities of their development. Participating leadership is effective when people are able but are unwilling to do what they are asked to do. (iv) Delegating: Leadership style of delegating believes in low direction and low support. It has low task and low people orientation. The leader provides little direction and less support. It is applicable in the situation wherein employees have high ability and high willingness. Ifpeople in the department are able and willing to do what are they asked, delegation is appropriate leadership style. Leader adopts low task structure and low people orientation when employees are developed but in the initial stage of employeE~s' development, leader adopts direction. Situational model is close to managerial model. Leader develops himselfby involving good behaviour with employees, administering rewards and self motivating.

EMERGING APPROACHES TO LEADERSHIP Recently, several approaches have been developed by different authors to make leadership effective. The important approaches are Leader-Member Exchange (LMX) theory; Leader Participation Model, Attribution Theory of Leadership, Charismatic Leadership Theory. Three Dimensional Model, Normative Leadership Model, Transactional Leadership and Transformational Leadership.

Leader-Member Exchange Theory Leader-member exchange theory indicates that leader establishes a special relationship with his subordinates. In group, members are trusted although they get disproportionate attention of subordinates. Some of the subordinates get special privileges while others are paid less attention and m~y be considered authority interactions. The leader categorise some members of the group as inner members and other members of the group as outer members. This 'in' and 'out group is rlatively stable during the course of organisational behaviour. Members who are treated 'in' of the group behave properly, perform better, get more satisfaction and so on. Other members of the group try to come within 'in' group. Leader-Member Exchange (LMX) theory motivates employees personally. Leader takes personal care of the employees. The members who are not regarded by employees feel dissatisfaction. They try to know the liking and disliking of the leader. The liking is preferred. This theory motivates only few members of the group while other members are frustrated, they may create some problems for the leader. LMX has to be used cautiously. Leader Participation Model Leader participation model relates to leadership behaviour and participation in activities. Under task structure, leader has to guide several structures to different employees. His role becomes important when non-routine functions are involved and the employees require on the spot guidance. Leader has to perfiJrm the employees' job to demonstrate effective functioning. Similarly subordinates are required to participate in decision-making process. Participation is done through a set of rules. They provide form and amount of participation. Victor Vroom and

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Philip Yetton have given seven contingencies by making 'Yes' or 'No' choices and five alternative leadership styles. Later on, some authors have extended the contingency variables to 12 i.e., Quality Requirement, Commitment Requirement, Leader Information, Problem Structure, Commitment Probability, Goal Congruence, Subordinate Conflict, Subordinate Information, Time Constraint, Geographical Dispersion, Motivation Time and Motivation Development. Leaders can use decision-trees to select leadership. It demonstrates that leadership is situational and not personal. It arises from situation to situation. Leader adjusts himself as per the need of the situation. Self monitoring is important element of leader-participation model. The situation and not the personnel is important. It makes leader different. He may be autocratic, consultative and group performer as per need of situation. Leader makes his own decisions under autocratic situation and takes assistance of subordinates under consultative situation. Leader shares the problem with his subordinates in group behaviour; Leader participation model is purely situational. Leader must be flexible and adaptable in his behaviour to get success in every situation.

Attribution Theory of Leadership Attribution theory of leadership is related to perception i.e., how people view the leader. People establish and develop perception with cause and effect. How a leader has behaved gives long-lasting impact on the followers. The event happening is attributed to some causes. The attribution or assigning cause to an event gives birth to attribution theory. Followers attribute many happenings to leadership. If a country is facing acute inflation, it is attributed to the ruling party. It is known here that this attribution may be real or unreal. Just the attribution of inflation to government is not always correct because there may be other causes of inflation. Attribution theory implicitly explain that leader should have intelligence, influencing verbal skills; industriousness, understanding and so on to have effective influence on followers. Employees attribute good leader to those who ar~ high structured (production oriented) and high relations (people oriented). People perceive him best in personality in all situations. In adverse situations, they do not blame the leader because they have perceived him as best leader because of his highhigh orientation i.e., high structured and high initiated. If such leaders fail, employees attribute failure to situation and adverse conditions. Similarly, attribution theory make the"low-oriented leaders always responsible although his is not responsible for failure because of adverse conditions. Once a leader is attributed as fully committed. Competent steadfast and consistent, he is regarded by his followers always. Attribution theory is based on perception of employees. The perception process should be kept in mind while developing leadership. Perception makes a leader highly regarded or lowly regarded. Employees perceive his leader as heroic leader if he takes up the challenges of difficult and unpopular causes through firm determination, persistence and knowledge. Charismatic Leadership Theory Followers attribute heroic or extraordinary abilities to their leaders to whom they have perceived as outstanding. Leader should demonstrate those behaviours which are mostly liked by his employees/subordinates. He should be able to distinguish those qualities which are related to charisma from those which are concerned with non-charisma. Leader should imbibe charismatic qualities. Referrent leaders are model of developing charismatic qualities viz., extremely high confidence, dominance and strong convictions. It has been established that charismatic leaders are those who have compelling vision, effective communication of the vision

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to workers, consistency in pursuit of the vision, they capitalise on their own strength and convert the threats into opportunities. Many other authors have propounded the attributes of charismatic leaders. For example, idealise the goals to be achieved, develop strong personal commitment to achieve the goal, have unconventional assertiveness and self-confidence and sharpen the quality of radical change. Charismatic leaders are willing to take personal risk, incur high costs and may self-sacrifice to achieve the vision. Their behaviour is unconventional and counter to established norms. They evoke surprise and bring radical change rather than taking care of status quo. The environmental constraints are converted as favourable situations to achieve the vision. Process of Charismatic Leadership Development: The leader develops a strong vision which is articulated by appealing followers. Appealing vision provides sense of continuity for followers' action. He communicates effectively for getting high performance from his subordinates. He infuses confidence in them for attaining the envisioned goals. It enhances the self-esteem of followers. Leader conveys his convictions through words and actions. He sets up new values of his behaviour. He behaves unconventionally to demonstrate courage and conviction. The performance and satisfaction are high in case of charismatic leadership. Indian philosophers have given techniques of developing charismatic leadership through developing aura of charismatic optimistic view, using passion as catalyst for generating enthusiasm, communicating with the whole body and moulding behaviour as charismat i.e., radical motivating behaviour and presence. Now verbal communication is more appealing to followers. Charismatic leaders have captivating voice, peircing eyes and invincible mind to make their followers feel extraordinary. They project powerful confidence in the ability of subordinates to meet the higher expectations and empathise with the needs of their subordinates. In practice, the charismatic leaders maintain direct eye contact, lean toward subordinates, have relaxed posture and animate facial expressions. The charismatic leaders have task adjustment attributes and are appreciable to followers. Charismatic leader is visible in politics, religion, maritime and life insurance. Three Dimensional Model Grid theory of Blake and Morton has two dimensions viz., people and production. It does not emphasise effectiveness. William J. Reddin has added the third dimension i.e., effectiveness to the two dimensional model. ThE! three dimensional model as known 3D Model of Leadership which has explained the effectiveness ofleadership styles based on these three dimensions viz., people, production (relations, task) and effectiveness. A combinations of the four styles viz., Autocratic, bureaucratic, dedication and separated with three dimensions i.e., relations, structure and effectiveness provide two main models viz., effective and ineffective. The moderate model is witnessed in between these two models. Effective Styles: The effective style has more people, production and effectiveness oriented. It has been understood by the following leadership styles. (1) Executive Style: It has high orientation of task and relationship. It is most effective style. Leader sets high standards, recognises individual differences and uses team management. He is a very good motivator. (2) Developer Style: It has high relationship but low task orientation. Leader has implicit trust in followers and develops them more for achievement. He is effective on account of high relationship with employees.

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(3) Benevolent to Autocratic Style: It has low relationship but high task orientation. Leader knows that what followers wants which are satisfied with high achievement through production . orientation. Needs rather than relationship are important for the employees.

(4) Bureaucratic Style: It has low relationship and low structure. He wants to maintain control on employees for getting work done effectively. He tries work to be achieved as per rules.

Ineffective Style: 3D model reveals the leadership styles under ineffective situation as following four leadership styles. (1) Compromiser Style: It has high structured and high relationship even at unfavourable conditions. It is less effective because of unfavourable situation. It means when there is no demand of high-high relationship, even then, the leader is using his structure-relationship model. The situation is important to practice high-high relationship. Leader is poor decision-maker and is effected by pressure. He is not a successful leader. (2) Missionary Style: It has high people and low production oriented style even such style is not required in the situation. This type of behaviour is not needed. Leader is good for every body everywhere but it does not pay too well to the organisation.

(3) Autocratic Style: It has low people and high task oriented style, even situations do not warrant for such style. In adverse situation, this style is ineffective. It becomes unpleasant and non-required. . (4) Deserter Style: It has low people and low production oriented style although it is not suitable in the situation. A particular condition demands to be different from deserter but the leader is a deserter. In favourable condition, he is called bureaucratic because work is done effectively under low-low relationship.

A particular leadership style can be effective or ineffective depending only on the situation. It refers that leadership style should be used considering their effectiveness in a situation.

Normative Leadership Model Normative leadership takes situation into account. It spells out how exactly an act should be done in a given situation,. Normative model reveals how decision ought to be made in a situation for making an.effective management of people. It is a simple statement that in a given' situation, management should do that what ought to be done in the situation. The normative leadership lD:0del consists offive leadership styles, seven situation dimensions, fourteen problem types and seven decision-rules as explained by Victor H. Vroom and Philip W. Yetton. The five leadership styles are autocratic, consultative, democratic, participative and benevolent autocratic. The seven situation dimensions are situation giving rational decisions, sufficient information for quality decisions, structured situation, critical subordinates, accepting subordinates, share organisational goals by subordinates and conflict with subordinates. The situations are divided from two angles viz., (i) the way problems affect the quality and acceptance of a decision; and (ii) the way problems affect the degree of participation. The normative leadership model consider a suitable decision which is qualitative, acceptable by subordinates and encourage their participation in a given situation. The fourteen problem types are based on problems in different situations and their solution methods. Seven situations with problemsolution variables give fourteen problem types. The seven decision rules are quality, acceptance, time, participative, situation-suitability, problem-solutions and practical orientation.

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Transactional Leadership The leader directs his subordinates towards goal achievement under transactional leadership. Goal-oriented leadership has been discussed already in this chapter under behavioural, path-goal and participative models. Leader clarifies the roles to be played by subordinates while performing their respective tasks. It emphasises on effort and performances. Leader guides and motivates their followers to achieve the organisational goals. Transformational Leadership Leaders having transformational leadership develop their subordinates. They are motivated to transcend their self-interest for the good of the organisation. The leader pays attention for the developmental needs of individual subordinates. The transformation leadership excites, arouses and inspires subordinates to put extra effort to achieve goals of the organisation. It is built on the top of transactional leadership. It means, this leadership develops people for achieving organisational goals. Subordinates are made high performers and developed employees. It leads to higher productivity and higher employees satisfaction. The charismatic and attribution theories are more of transformational leadership than the transactional leadership. Transformational leadership has four important features viz., individualised consideration, intellectual stimulation, inspiration and charisma. It has proved that their leadership is more effective than transactional leadership. QQQ

Chapter 17

GROUP DYNAMICS 1.

2. 3. 4. 5. 6. 7. 8. 9. 10.

MEANING ORIGIN AND DEVELOPMENT OF GROUP TYPE OF GROUPS PHYSICAL ENVIRONMENT PERSONAL ENVIRONMENT SOCIAL ENVIRONMENT TASK ENVIRONMENT GROUP DISCUSSIONS STRENGTH AND WEAKNESS TEAMWORK

Group dynamics has been invented at the early stage of civilisation. When individ~J members were unable to meet their economic and social requirements; they united together. Some members, i.e., more than one sit together and ponder on the problem to get effective solution. This is the beginning of the formation of group because group can perform some things which a person individually cannot perform. The group has some force or strength. The more effective formulation and proper utilisation of group thinks are in the organisation the more strength the group will possess. Group Dynamics has become an important subject of management because it produces useful information on the dynamics of behaviour. The social process by which people interact face to face is called group dynamics. The study of group dynamics has been done under Meaning and Design, Type of Group, Physical Environment, Personal Environment, Social Environment, Task Environment, Group Decisions, Strength;8lld Weakness and Team Work.

MEANING AND ORIGIN OF GROUP DYNAMICS Dynamics means force. It refers th~t group dynamics is group force and strength. It is a force operating within the group. The kind of force operating within the group depends upon the kind ofleadership style. Group dynamics has synergy whereby two plus two is equal to five. Group is a composition of two or more persons formed for achieving the group goals through personal interaction and relationship. The group members are interdependent. Group once

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formed motivate people to join it for personal and organisational interest. Members perceive that the group exists and they are members of the group.

Features of Group Dynamics The important features of group dynamics are perception, motivation, group goals, group organisation, interdependency, interaction and entitativity. 1. Perception: Group dynamics as defined by perception refers that every member ofthe group is aware oftheir respective relationship with others. Group consists of organisms or agents. The members or agents are engaged in interaction with one another. They have face to face meetings. They develop some impression or perception about each other and give their reaction to each other. Group members perceive the group differently, which they reveal at some situations. The members perceive the role of group as per their learning and background. Group strength is developed if the group members are properly trained and motivated. Group members form group against the forces which threaten their individual freedom. Members perceive group as problem solving or as developmental depending upon the situation on which groups are formed by the members. 2. Motivation: Members join group because they expect that the group will solve their problems. They want progress and promotion which are achieved through group performance. The pressures and problems are jointly met by them. Group norms emerge to guide individual behaviour. Co-operative feelings are increased for helping each other. Group is develoJ- ed taking into consideration the individual interests. Employees join groups to get their pay and working problem redressed. In social system, businessmen join a club or association to improve their business opportunities and solve the problems posed by administration and people. Social groups are formed for solving the individual problems. Group is a collection of organisms in which existence of members is assured by them. Their needs are fulfilled. The perception of unity and interactivity force are present in group, which motivate the employees for better performances. The different needs of society are met by forming different groups. The group leader has to play his role of providing proactive influence and receiving feedback from the group members. 3. Group Goals: Group goals are targets toward which input, process and output are directed. Group goal is the essential component of group formation although it is not the only condition for forming group. Goal is used for motivating employees. Path goal relationship produces higher responsibility for a.ttaining goals. If people of the group accept responsibility, group activities are self evolved and workers are successfully performed. When employees see the manager as supportive, they try to achieve group goals. The responsibility consciousness makes the group members realise their duties. They put group goals above their individual goals. Members become inevitable part of the group if they start realising the group goals as superior to individual goals. 4. Group Organisation: Group is an organisation wherein different organs are composed to attain certain objectives. It has structural elements of an effective organisation. Sociopsychological group is evolved wherein two or more individuals are interrelated. It has a set standard of relationship among its members. Similarly, it has a set of norms that regulate the function ofthe group. A number of individuals in the group has definite status role relationship, set of values and own regulating behaviour. Group structure has power relati,ons, adapting and communicating process. Individual group members differ from each other. Group is used for developing knowledge and skills. All the group members are not equally powerful. Some of them

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have more power and higher position than those of others. Hierarchical structure is visible in the group. It has group force for the development of whole organisation. 5. Interdependency: The main feature of group is members' interdependence. The members of group may have common goals but they may not be a part of the group because they are not interdependent. Individuals waiting for their turn at a bus stop have eommon goal of travel but it is not group because the individuals are not interdependent. If the individuals start supporting each other and interact with each other then through mutual encouragement and plans they travel in a hired car as individuals and they will be called a group. If they develop it as permanent system, it becomes an organisation. Interdependence must be dynamic. The group members have equality of goals and similarity of performance. Dynamism is experienced if the interdependence is committed into group strength. Group is a social entity, it has social strength. It is derived from the constituent members who are interdependent. 6. Interaction: Members of the group must interact with each other. If they are interdependent but are not interacting the group's goals are not achieved. Members have interpersonal problem-solving mode. If any problem arises interaction of all the members is needed to solve the problem. Each person must communicate with others when the need arises. Interaction between members of the group may take different forms e.g., verbal interaction, physical interaction, emotional interaction and so on. Group is defined on the basis of interaction wherein two or more persons are interacting with one another in such a manner that each person influences and is influenced by each other. It is a two-way communication. It requires mutual influence. Group is entity and is treated like other objects. 7. Entitativity: Group has its own identity. It has similarity and proximity. It is felt and realised but cannot be seen. The collection of individual experience ,becomes guidelines for the members. The uniform, office and people become the symbol of group. The vicinity and proximity have given birth to a group. Group Dynamics Perceived Group dynamics have been perceived by different authors differently giving several theories such as field theory, interaction theory, systems theory, sociometric orientation, psychoorientation, model orientation, reinforcement theory, group syntality, exchange theory and theory of group productivity.

Field Theory Group dynamics is perceived in the behaviour of members. Kurt Lewin has given group behaviour as part of group dynamics. The properties of group behaviour are determinants of group dynamics. The behaviour in the field is practically observed. The natural behaviour of employees are taken into consideration for developing them as a force. Interaction Theory: Group dynamics or force is based on interaction. This theory assumes that activity, interaction and sentiments are used to motivate employees for developing group strength. System Theory: Group dynamics is a complicated process. It analyses basic elements of group force. The components are used for identifying and motivating people. This theory describes the system as interlocking of positions roles and inputs and outputs. Sociometric Orientation Theory: Group dynamics as perceived by this theory describes interpersonal choice among group members. The morale and performance ofthe group depend upon the interpersonal relation among group members. It is reflected by sociometric choices. This theory has given several important outcomes in group dynamics.

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Psycho-orientation Theory: This theory refers to motivational and defensive process of individuals. It has given process of group stimulated people for better performances of group. The psychological theories are used to mobilise group behaviour. Learning, perception, personality development and motivation are used for the purpose. Model Orientation: Group dynamics has been developed by several models. Models and natural relations are established to define group dynamics. Model builders have discussed the hypotheses with the help of system theory, psychoanalytical orientation and empirical-statistical orientation. Reinforcement Theory: Reinforcement theory is a motivator of group dynamics. Descriptiveexploratory studies, stimulation studies and other real life stories have been used for reinforcing the employees to have model group dynamics. Group Syntality: Group dynamics is based on group personality i.e., group syntality. It makes the group a unique entity whereby two and two makes five. It means more productivity is observed in group dynamics because of group syntality. It has been observed that syntality has certain unique traits because of behaviour, aggressive acts and decision-promptness. Internal and external structures contribute to the syntality. Population traits, structural traits and cultural traits develop and design group syntality. Catlet has given name to group synergy which is group syntality. In a group, people satisfY their psychological needs and work better than what they can do individually. It brings an additional energy which is totally known as synergy. It is total of individual energy and group's energy. The synergy is divided into two parts viz., maintenance synergy and effective synergy. The maintenance synergy is used for maintaining interpersonal relationships between group members and effective synergy is used for achieving the group goals. The Law ofEffect is observed by subsidisation and subordination. Subsidisation refers to the formation or partial support of other groups. Individual draws energy from the group, which restores and reproduces in additional form from it. Exchange Theory: Group dynamics is based on exchange theory i.e. interpersonal behaviour. Existence of the group solely depends upon the participation and satisfaction of individuals in the group. It is exchange of satisfaction by the members for group's existence. The exchange theory involves group force consistence of interaction, and evaluation of interpersonal relationship, behaviour sequence and behaviour repertoire. Interaction refers that the actions of each person effect other. Interaction is not only component of group dynamics. Iftwo people, interact, this will not be a group because they are not interdependent and working for group goals. Behaviour sequence is directl~d towards goals. Rewards and costs are attached with them. Rewards refers that individuals find it pleasurable, gratifying and satisfYing. Costs refers to anything that inhibits the performance of a behaviour sequence. Exogenous and endogenous factors influence interpersonal relationship which has rewards and costs. Exogenous factors are external to relationship and endogenous are inherent in the relationship itself. The psychoanalytic orientation i.e., inclusion, control and affection are exchanges for which people like to be attached with group. The interaction patterns of two or more individuals may be either compatible or incompatible. The compatibility will be interchanged, originator and reciprocal. Theory of Group Productivity: Group dynamics is based on group productivity and vice versa. Group productivity depends on task demands, resources and process. Task demand is the requirements imposed on the group by the task itself. Task resources include all the task related abilities, knowledge, skills and tools possessed by the melnbers ofthe group. The task demand require a particular amount of resources and task resources refer to the availablility of thE

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resources. So these two factors determine the maximum level of productivity. The potential productivity depends on the availability of resources. Process variables decide the group productivity. Interpersonal and intra-personal behaviour determine the group potential. The degree to which actual productivity approaches potential productivity is a function of appropriateness of group process. Potential productivity ofthe group is determined by the most competent group member. The conjunctive task is also taken into account while determining the group productivity. It is related to each member ofthe group to perform essentially the same function on the success of group is determined by the effectiveness of the least proficient member. There may be faulty group process. Since the productivity of each member is not the same, the group productivity will vary. Individual and group behaviour differs because of their relative productive potential. Group potential exceeds sum of individual potential because of gain of group process wherein individuals enjoy the group process. But it may be very small because of losses due to faulty group process.

ORIGIN OF GROUPS Group contribution is the result of contributions of individual members of the group. The individual contribution is also influenced by other member's contribution. Group dynamics is the outcome of behaviour of individual contributions as well as individual contribution influenced by others' contribution. Group originates because of social facilitation, group performances, brain storming and risk shift phenomena.

Social Facilitation Group is formed for getting certain facilities. It may be prevention against certain dangers or getting some benefits through group strength. Unity has strength. So groups are formed by like-minded people to get the goal attained within a specified time. People encourage each other and provide automatic performances. Mere presence of other members exerts a consistent influence on individual behaviour. When persons work together in a situation, each one of them coaches others to facilitate effective performances. Individuals get satisfaction in social group. It increases motivation for high task performance. People derive from social gathering. The expectation of positive or negative outcomes of the individuals generates social facilitation. People feel self encouraged while working together. They avoid brain worry and suction problems and develop shelter, satisfaction, encouragement and hypnotic suggestions. Group Perfo~ance Group performance witnesses individual and joint efforts. It has psychological support. Group efforts have given additional benefits to the group because of group judgement, problem . solving and group learning. Group Judgement: Group performance is influenced by group judgement. It is observed that the quality of group judgement is higher than the individual judgement. Group judgement has weight of avoiding pressure and unethical statement. But if there are inferior members as well as qualified members in a group, the group judgement will not be better than the individual judgement of a qualified person. In normal conditions, when the members are approximately equally qualified, group judgement is better than individual judgement. Group Problem Solving: Problem is effectively solved by group members than the individual efforts. Group has more capacity of problem solutions with respect to a number of problems, time required to solve the problem, number oftraits, amount of interaction and quality results.

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Individuals have to exert more to arrive at solutions derived by group. They take more time, more information and cost for arriving at similar types of results. Decisions made by discussion groups are better than those made E!ither by individuals or majority rule. Nominal group performs better than real group. The reasons are individuals enjoy while performing in group. They reject incorrect suggestions which are revealed by other members. The influence of qualified person is more visible than the weak members' decisions. Social support is visible with competent members. Group has competence of geting adequate information and resources for arriving at correct decisions. Group Learning: Individuals in the group get the opportunities oflearning from each other. Group members exert an influence on their fellow members to learn new methods of performance. Group gains significantly through mutual interaction and learning process. Many members find an open opportunity oflearning in a group which were not available to them individually. Group learns faster than individuals. The effectiveness of individuals increases in a group. Group Brainstorming: Brainstorming is feasible in a group. In a group setting ideas are expressed by all the members. When all the members have expressed their views, evaluation of ideas start. One individual can expand, comment and appraise the ideas of other members of the group. Brainstorming leads to experimentation. It has produced good suggestions in group. Group brainstorming provides a platform of creative thinking and appraisal procedures. Decisions of individuals in nominal groups are better than the score of real groups. Risk Prevention: Group has the capacity of risk prevention of decision because one single individual is not solely responsible for the decisions. Individually one can be pressed for a decision. He can change his decision under pressure but group shifts such problems. A decision taken by members of the group is a group decision. It is not individual decision. No one can be penalised or pressurised in group decisions. Individuals in group make more risky decisions than they can do individually. Risk is value and more value oriented decisions are taken in the organisation. Diffusion of decision responsibility is possible in a group. It increases the potentials of group dynamics. GROUP DEVELOPMENT Group exists for satisfaction of individuals needs separately as well as jointly. It may be object of need or the group may simply be the means for satisfYing some need. A group develops because group members like it to develop for satisfYing their varied needs. They want the group for attraction and maintenance. Interpersonal attraction, similarity, group activities and group goals are the important factors for developing groups.

Interpersonal Attraction There are certain variables which provide interpersonal attraction. The primary variables are attitude similarity, value congruence, personality characteristics and physical attributes. 'Environmental variables such as proximity, contact and interaction are also influencing factors of interaction of interpersonal attraction. Interpersonal attraction is influenced by proximity which indicates physical distance between two individuals. Physical proximity influence personal affiliation. It influences the formation of friendship. Personal relationship is determined by proximity. They become {riends. Propinquity and proximity are taken together to influence the people. Proximity contributes to ~~oup formation. Favourable attitudes help formation and development of a group. Proximity makes it possible for individuals to come into contact and interact with each other.

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Contact is the situation in which individuals are likely to be in each other's presence. Increased opportunity provides increased interaction. Proximity and interaction provide the opportunity for individuals to learn about the characteristics of others. The main source of attraction between two individuals is physical attraction. Perception of beauty and handsomeness allure others to be attracted to each other. Heterogeneous and homogeneous attraction are visible differently in different people of varied age group. Boys and girls below age of twenty generally have homogeneous attraction whereas heterogeneous attraction is visible above the age. Physical attraction is determinant of interpersonal interaction. Similarity Group development is feasible because of similarity in thought and actions of group members. An interaction is rewarding when two individuals are similar. Similarity in attitudes, beliefs and opinions are factors of personal association leading to group development. Attitude similarity had been constant source of attraction. It has been used for interpersonal prediction. Liking of similarity and dissimilarity make a person come together and develop association. Similarity of personality is also a determinant of attraction. The relation between perceived or assumed similarity and interpersonal attraction have positive approach in group development. Similarly, economic similarity has been an important factor of attractiveness. Economic similarity has high personal attractiveness. Race, sex and region similarity have influence on group development. Perceived ability is also used for personal attraction. The similarity decides the degree of personal attraction which is instrumental for group development. Group Activities Group activities make people enjoy and form group for getting permanent satisfaction. People join a group because they enjoy the company of other like-minded people. In any corporate sector, employees continue to be members of the group till they enjoy the company of others. The group behaviour depends on the enjoyment of the members while they work in the group. It has been observed that group activities have been source of encouragement to the members who develop group dynamics and force. The success of group depends on the interested members. The strength of group is possible only at the satisfaction of group members while they perform group activities. Group Goals Group goals are utilised for the development of group functions. Path goals have been used to motivate employees. Individuals accept the goals or purposes and enjoy the activities. A person joins the group because he likes the goals of the group. Many people join charitable institutions because they like the mission of the group. Employeesjoin the organisation because they prefer the goals apart from earning livelihood. If there exists rivalry or friction amongst the group members they try to solve them to achieve the group's goals. Frustrated members are consoled by other members so that group activities should continue to achieve group goals. Members resolve the differences by reducing intergroup and intragroup conflict. Common group goal can produce new group membership. People working together reduce their mutual stress by discussing the group goals Employees are encouraged to achieve established goals of the group. Reinforcement functions are used to make employees interested in the group goals. Higher wages andjob security are used to motivate employees. The group goal has external attachment. Many external factors mobilise employees to work hard. The goals of the group have social recognition and autonomy preferences. Since the group goals are also externally recognised, its members enjoy to be there and work for the development of group. People join a group because it is a

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means of satisfaction and also meeting certain need requirements. Persons rewarded begin as members of group, but become model examples to others to join the group. People having subdued needs also join the group because they expect to get those needs fulfilled in due course of time. Group goals become instrumental to satisfy the present and potential members. Individual goals are also satisfied while the group goals are achieved by them. Difficult tasks are also completed by joint efforts of the group members who enjoy working in the environment.

TYPES OF GROUPS Groups may be of different types. They develop through different stages viz., forming, storming, norming, performing and dissolving. When members share personal information and try to know each other and draw their attention towards group tasks forming of group starts. Courtesy is observed and interaction is developed. People are pleased to form the group. After forming the group, they storm for status or getting rewarding positions. They talk about appropriate directions. External pressure interferes with the group. Tension increases and members assert for survival and growth. The storming stage is turbulent from which members try to come out and norming stage starts. Members are forced to co-operate with each other. They develop tentative balances among co-operating forces. Group norms are developed to guide group activities. Co-operative feelings are encouraged. The performing stage is witnessed thereafter as the group has matured and acquired enough experience. Functional roles are performed and tasks are efficipntly accomplished. Members enjoy group activities and group goals are achieved by them. The dissolution takes place when group goals have been attained. The group may form another set of goals for which the above given four stages are consecutively adopted by members. If members are not co-operative, the group may be stuck at any stage. Group continues forever if the members enjoy group activities and group goals. Alternate group goals are developed by the members. Groups may be formal and informal, temporary and permanent and nominal and nonperforming groups. Formal and Informal Groups Formal groups are publicly recognised and have their separate identity. They are registered under enactment of the country. They have their respective goals. They are formed on following certain prescriptions. Rules and regulations are developed for governing their activities. Informal groups are formed on mutual trust without undergoing any prescriptive rules and regulations. They are formed, normed, performed and dissolved very easily without undergoing any formal prescription. Informal groups are formed on common interests, proximity and friendship. Groups based on social activities perform social functions. Family is also an informal group. Informal group based on caste, creed, religion and region are witnessed in corporate organisation. Employees develop them without getting any permission from anyone. They enjoy it like family. Temporary and Permanent Groups are formed for achieving certain objectives. They have very short life. After attaining the objectives they are dissolved. Solving problems and discussing ideas are the main functions of temporary groups. Meeting, committees and small groups are examples oftemporary groups. There are certain natural and permanent groups. They have group activities, group performances,job assignments and so on. Team is a permanent group. Trade union and business association are examples of permanent groups.

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PART· II Nominal Groups and Non.Performing Groups Nominal groups are presented with problems to solve them. Members ofthe groups share their ideas in structured format. Their alternative suggestions are discussed for arriving at more effective suggestions. This is nominal group because the employees are members of the group for namesake only. Each member has equal opportunity of participation. Delphi, Brainstorming, Dialectic decision methods are examples of nominal group. . Non-performing groups are only on paper. They are formed and developed without any performances. They have certain goals but there is no attempt to achieve those goals. Such groups are many in India because they want to avoid certain problems. Co-operative societies are formed with certain goals. They exist on paper, but in practice, individual members have individual activities without interacting with each other. In time sense such groups are not groups because they do not have performance, storming, activities, group think and group judgement. Such groups are formed with certain ulterior objectives. PHYSICAL ENVIRONMENT Group activities and goal setting are influenced by environment which may be physical, personal, social and task. Environmental setting exerts strong influence on every aspect of group process. Physical environment includes buildings, rooms, furniture, communication process, plant and machine layout. Personal environment refers to the operational characteristics of individuals along with their personal characteristics influencing the work setting. Social environment is the members' interaction in the group. The interpersonal relationship in the group is the social environment which influences the functions of group. In other words, members' interaction determine the form of social environment which also influences the mode of members' interaction. Group has certain tasks which are structured in a particular fashion. The mode of task-setting is task environment which influences the group behaviour and ultimately group strength or group dynamics. Physical environment is decided by territory, personal space, spatial arrangements and patterns of communication channels. The shape and size of the room or factory, lighting, furniture and plant layout have direct impact on the members' behaviour. A research has revealed that colour of the room influences the mental aptitude of employees. Green and white colour have been accepted as congenial for mental health. Red and dark colour are detrimental to development. The cooling system has influence on the noise level of the ear drums. It is decided that the pollution free atmosphere is needed for effective group behaviour. Physical environment influences the group behaviour by influencing group members' attitudes, capacity, performances and results. Attitudes: The material aspects of physical environment influence the attitude of the group members. Lighting intensity influences member's behaviour. Low intensity mobilises attitude for more work. High intensity creates irritation. Employees' perception, is changed in noisy and disturbing atmosphere. Welfare programmes create positive attitude.

Capacity: Healthy environment increases the members' capacity. Negative attitude is changed into positive if the physical setting is more interesting. Beautiful room increases the capacity of working class. Ugly room discourages their capacity. Storeroom may be different from the working room. Noise, smell and penetrating lighting reduce the working capacity.

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Fatigue, monotony, headaches, irritation and hostility are experienced in unhygienic conditions. Natural settings have direct impact on capacity. Performances: Physical environment determines group process and performances. Plant layout with minimum space and time increases work setting. Aesthetic qualities of the room have positive impact on performances. Attractive and comfortable room mobilise the workers to do better. Communication position increases performances.

Results: Noise and colour have adverse effects on results. Congenial atmosphere provides positive results. The attitude, capacity and performances have ultimate bearing on consequences. Component of Physical Environment Physical environment influencing group dynamics have specific components such as territoriality, personal space, spatial arrangements and communication networks. Territoriality: The physical environment related to territoriality tend to describe appropriate space and proprietory rights. The territorial space assigned to an employee is as territorial rights to which other employees do not intervene. If any employee interferes in others' work space; it becomes a matter of conflict. The physical environment deteriorates. Territorial right of work place should be respected by other employees. One should be given satisfaction of working on his own space provided. Any change in the space creates friction and destroys the work environment. Individual accepts territorial rights of his table, chair and working place. People demand larger spatial areas as they feel comfortable working in a bigger space. It has been observed that people feel irritated if their territorial space is invaded by other employees particularly by lower class. If the chamber of a manager is occupied by a clerk, he feels uncomfortable. Similar to individual territory, groups have their respective territory. Clerks have their own space. They sit in a room. If any other class e.g., peon or recorders are placed with them, they resist. The group occupies its own space. Personal Space: Personal space means space required by an individual to move in the group. His body features, weight, breadth, height etc. are determining factors to pinpoint the space required for a person. Personal space is different from territorial space as the former is related with personality of the worker whereas the latter is related with the work performances. Personal space varies with personal attributes and territory space varies with work nature. Personal space is decided considering the people's personality and interactive functions. Person of the same mind, if seated by their side enjoy working and persons of different mind feel dissatisfied with the space setting. Group dynamics or strength is influenced greatly by personal space required by employees. If they get required space, the group space is enhanced and on the reverse group friction is enhanced. Group syntality is observed in the first case whereas group loafing is witnessed in the second case. Role relationship of employees influences group dynamics and role is influenced by personal relationship with other employees. Many employees become impersonal in their functions. They are purely official. They talk only official and not personal and individual problems. Such employees are known as having impersonal-personal relationship with other employees. There are also some employees who talk individually while performing their official jobs. They take personal interest in job but do not talk more on official functions as they talk on personal problems. They are known as having personal-personal relationship. Impersonal-personal relationship help perform better than personal-personal relationship These relationships depend on territorial personal spaces.

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Many employees maintain interaction distances. It increases the importance of senior members. Employees have different behaviour with strangers, acquaintances, friends and close friends. The closeness of interaction varies from person to person, sex to sex, age to age and so on. Social and non-social factors also influence the interactive behaviour with space. Cultural and cross-cultural activities are influencing factors on group dynamics through influencing the feelings of proximity. People have positive and negative zone of proximity when they like to be interacted with physical proximity, it is positive closeness. But, when they do not like to be more closer, that will be negative zone of proximity. For example, if a female employee prefers that male should talk maintaining four feet distance, it is the limit to decide positive on negative distance zone. If anyone talks with her maintaining personal distance of two feet only, it is an intrusion of in her positive zone. She will be irritated. This physical distance has long lasting impacts on the behaviour of employees. This decides privacy zone of employees to which other employees should not be permitted to enter. Superior employees prefer higher privacy or positive zone. They want that subordinate should talk to him maintaining atleast a minimum spacedistance.

Spatial Arrangements: Employees need spatial arrangements with other employees and physical objects. Group interaction is influenced with spatial need and actual spatial arrangement. It need consideration of seating preferences, seating interaction and seating leadership. Seating Preferences: Senior managers have distinctive places of seating preferences. Cooperative, competitive and coaching activities have different types of seating preferences. Cooperative seats are placed side by side. Competitive activities have adjacent corner seats. Coaching functions have distant seats. Adults prefer side by side arrangements for co-operation and face to face seating arrangements for competition. Conversation is facilitated by both physical proximity and eye to eye contact. Seating arrangements have positively rewarding and negatively rewarding consequences. Seating Interaction: Seating arrangements is made to facilitate interaction. Mutual and face to face conversation is more desirable. Telephone conversation is less desirable than face to face conversation because non-verbal part of conversation is absent in telephonic talk. Spatial arrangements should be made to make conversation easy and effective. Seating Leadership: The leader has different type of spatial arrangement than the subordinates. Leader occupies head of the table. Persons seating at the special place are designed leaders with their useful form. Beside leader no chair is placed. Subordinates face the leader's chair. Spatial position in group is an important determinant ofleadership status. It determines the flow of communication. Seating arrangement has important influence upon the interaction process. Communication Network: Physical environment is determined by communication network. The physical distance between persons and the ways inter-person distance affects individual and group behaviour. A particular spatial arrangement influences the flow of communication, perception of status and emergence to leadership. Arrangement of communication channel exerts a powerful influence upon the group members. Interaction must be effective and easy. Plant layout and office space arrangements are planned in a way that makes communication easy and effective. Communication differs from person to person and cadre to cadre. Spatial arrangements therefore require consideration of effective communication network.

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Leadership emergence, organisational development group member interaction, problem solving efficiency and explanatory concepts are considered thoroughly while deciding communication network. Person occupying central position in a communication network has probability of emerging as the leader of the group. Organisational pattern is the informal communication pattern that the group establishes within the limits imposed by the communication network. Centralisation and decentralisation have different impacts upon the organisation. A person who occupies a centralised position with its abundance of communication channels is latter satisfied with that position. Communication network is directed toward the analysis of problem-solving efficiency. The group effectiveness is determined by the mode of communication network. Group methods of communication determines leadership emergence, organisational development, member satisfaction and group efficiency. The centralised and decentralised network have different impacts on group dynamics.

PERSONALENV1RONMENT The individual characteristics of group members decide the personal environment of the group dynamics. The personal characteristics of each member influence the behaviour of other persons. The skills and abilities of a member not only determine his own behaviour pattern but also influence behaviour of other group members. The behaviour of group members is accumulative and decide the group behaviour in future. Individual characteristics influence group process and the group process decides individual behaviour of group member. The characteristics of group members determine their own behaviour in group and the methods of reactions to other's behaviour. The specialised behaviour of a member is followed by other members. Consequences of member's behaviour influence the group behaviour. The interaction of personal characteristics decides the group dynamics. Personal attributes of group member make personal environment. Specifically personal environment of group dynamics is decided by the group size, biological characteristics, abilities of group members and personality characteristics. Group Size Group size has positive impact on the group dynamics as the range of abilities, skills and experience enhance with the group size. Larger size has advantage of problem solving effectiveness. It makes group rewarding and interesting. Larger group has more potential of management. On the other hand, organisational problems become difficult in larger size. Interpersonal relationship between group members increases with size. Potential for conflict is greater with group size. It has been observed by researchers that member participation, leadership, member reactions consensus and group performances are influenced by the group size. Member Participation: The probability of members' participation decreases with the increasing of group size. The larger the group the less opportunity each person has to participate in the group activities. The group size decreases the rate of communication chances. Lower interpersonal attraction is witnessed in larger group. The proportionate share of participation declines as the size ofthe group increases. It suggests that smaller size has more chances of is members being participated in the group dynamics. The number of active participants increases in small group and decreases in larger group. Leadership: The demand for group leader increases with the increase in the group size. The acceptance of leadership increases with size. Effective leadership is witnessed in leader group. Group leader becomes ineffective in small group. Leadership increases with the group

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size. Leader is likely to emerge in larger group than small group. Group size facilitates birth of a leader. Member Reactions: Increasing size increases the group members' reactions. Members of larger group are less attracted to group. They have more tension and less satisfied than the members of small group. There is difficulty of maintaining interpersonal relationship in larger group. Smaller group has cohesive relationship. Members are more satisfied. Dissatisfaction with larger group is witnessed. There is more disagreement, greater antagonism and less satisfaction in bigger group. Consensus: A small group easily arrives at consensus decision. In bigger size majority opinion is taken into consideration wherein problem and rivalry is observed. Larger group has greater difficulty in arriving at consensus. Group Performance: Increased potential of skills, knowledge, abilities are observed in bigger size. But, the problems and fractions are also increased with the size of group. Performance is less effecting in big size. Group process exert negative influence on group output. Group performance increases with group size because of additive and disjunctive functions. Group effectiveness increases with group size.

Biological Characteristics The biological characteristics have great influence on the group dynamics. Biological and sociological factors influence the degree of dynamism. Age, sex and physical characteristics are the biological characteristics of group dynamics. Age: Age differences are reflected in group behaviour. Age is attached with experience. There is positive correlation between age and social contacts. With increasing age, the complexity of the interaction pattern increases. The older people are more sensitive to the feelings of others. Integrated behaviour increases with age and dominating behaviour decreases with age. Leadership increases with rising age. Trait theory ofleadership is attached with age. Conformity is closely related with higher age. Aged persons tend to believe in a manner that conforms the model behaviour. Increasing age has learning process of socialisation. Aged persons follow rules and regulations more than those of younger. Sex: Men and women have different roles to play in a group. Male members are aggressive, dominant and person oriented. Cultural differences are also observed in mixed membership. Female members have been more sincere, sympathetic and emotional. They take the work honestly. Men behave differently than women. Interactive behaviours are mixed in group comprising of male and female. The affects of sex affiliation and competitive co-operative instructions are interrelated. Females are more conforming than males. Cultural differences influence men and women. It is a significant factor to determine the group dynamics. Physical Characteristics: Physical characteristics such as height, weight, breadth and general health influence the group dynamics. Physical strength demonstrates leadership status. Taller and heavier persons are accepted as successful leader by non-leaders. These characteristics are not always accepted factors of group dynamics. There are other features which contribute more for group development and group effectiveness. Abilities Group dynamics is influenced by the abilities of group members. Their intelligence and specific abilities are contributory to group dynamics. The group strength depends on what individual members can do for better performance. Abilities to perform, abilities to act and react

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and abilities to understand the problems and finding solutions thereof are positive factors of group dynamics. Intelligence: Intelligence is the ability of the members to deal with a variety of situations and problems. It may be innate ability as well as experience ability. Knowledge required for the performance ofjob determines the level of group dynamics. If the members are competent enough, group strength is increased. Less knowledgeable group has less force of performance. Intelligence is more essential for leaders. A leader without adequate knowledge and experience cannot manage the group effectively. On the contrary, a competent leader can manage his group more effectively. More intelligent individual tends to be more active and less conforming to the group. Specific Abilities: Specific abilities required for performing group activities are determinants of group dynamics. Highly specialised group is more competent and effective than the less competent group. Managers of different areas of management require different abilities. If they possess those specific abilities, they can manage their group more efficiently. Supervisor has to exercise control of employees with certain physical force and moral pressure. Possession of special knowledge and skill enable the individual to perform group task effectively and attain its goals easily.

Personality Characteristics Personality is a trait exercised effectively in different situations. Behaviour differs from situation to situation. Member must have the flexible qualities for managing different situations. Personality variables have certain consistency which determines members' real personality. Personality is a quality in a situation of a person. It may be interpersonal orientation, social sensitivity, ascendant tendencies, dependability and emotional stability. Interpersonal Orientation: Personal behaviour with other person demonstrates a member's interpersonal orientation. A person behaves differently with other persons in different situations. Interpersonal orientation determines the group process. Authoritarian, supportive and avoidance attributes have different impacts on personality. Authoritarian member believes that he is right in his approach and other members should follow him. If such persons are in power they exercise their power more strongly. They do not care about others' inconveniences. They are demanding, directive and controlling. People do not like such authoritarian persons. When such people return to lower rank, they complain and blame others. They consider their work as most suitable and unchangeable. Supportive personality oriented persons treat all the members equal. They are not power hungry. They utilise human treatment for managing others. Persons having avoidance personality prefer situations involving interaction. Such people are suspicious and jealous of others. They are dour and rigid. Social Sensibility: Social sensibility is the degree to which a member perceives, responds and behaves as per different situations of needs, emotions and preferences of other members. It has empathy, insight, social judgement. It leads to positive effects in group. These qualities belong to leadership qualities. Acceptance of group, amount of participation and group effectiveness are related with social sensitivity. On the contrary persons having independence and resoluteness are unconcerned with group goals and group process. Social sensitivity is essential for groupperformance, leadership and group achievement. Ascendant Tendencies: Individuals vary in group with their attributes to be prominent in group situations, assert themselves as individuals and the extent to which they wish to dominate others. Ascendant is the individualistic orientation i.e., the tendency is to emphasise self interest. They have ascendancy, assertiveness, dominance and individual prominences. Ascendance has

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attempted leadership. Assertiveness has popularity, rigid behaviour and creativity. Dominant persons have conformity, cohesiveness, social interaction, leader and dissatisfaction with higher ups. Prominence oriented people are self confined and self participative. Dependability; Individuals in a group depend upon others. Average group members are like this. They do not dominate nor want to be dominated. They form desirable group and contribute to group effectiveness. They are conventional persons and have self-reliance and responsibility. They develop integrity, self-esteem and self-control. They blame themselves for any drawbacks. Unlike dominance, they prefer to mix with others and treat them equally good. They accept opinions of others. The dependable persons are more attractive, more popular, more active and more influential. On the contrary unconventional persons have different attitudes viz., group effectiveness, group productivity and so on. They are more related to others' behaviour. They are important for group interaction. Emotional Stability; Group members having emotional stability contribute more in the development of group dynamics. It is a personality characteristics that are related to the emotional or mental well-being of group members. The members are equally satisfied in anxiety, defensiveness, depressive tendencies and neuroticisms. Emotional stability has the qualities of job interest morale, group productivity, leadership status and are satisfied. The personal environment influences group interaction and increases group dynamics. All the components of personal environment as discussed above have varying impacts on group behaviour and group performances.

SOCIAL ENVIRONMENT Group dynamics is not only interaction ofits members and group composition; but is greatly influenced with the social systems surrounding the group. Social influence on cohesiveness, group compatibility, social power and leadership are considered under social environment.

Social Influences Members of a group have some friends, foes and acquaintances outside the group. Their co-operation, interpersonal interaction have long lasting impacts on group dynamics. Group cohesiveness and interaction are influenced greatly by these social factors. Group expectations and group co-operation are influenced by other members' internal and external contacts. Group dynamics is influenced by internal and external persons' activities. Organised groups are highly motivated than the unorganised groups. Cohesive groups are formed to interact with the main group. The sub-group originating outside the main group are influencing factors of group dynamics. Cohesive sub-groups conform to group norms and respond positively to the other group's constructive approach. The influence of social communication is greater in cohesive groups than that of non-cohesive groups. Positive and negative indications are observed in the cohesive group. There has been positive correlation between cohesiveness and conformity. Cohesiveness leads to increase in social influence which produces greater conformity to group standards. There are different degrees of cohesiveness which influence group process. For example, high and low cohesiveness, high, medium and low confidence, two psychological sets viz., task set and group set and so ori have great influence on group activities. The social influences are evaluated from various angles e.g., productivity and satisfaction. The multiple social variables have diverse impacts on the group dynamics. The combined influence of social environment are subjects of research. Theoretically, it is known that social factors have positive as well as negative impacts on group dynamics. Positive factors are those which are favourable for enhancing the forces of group. Similarly negative factors diminish the strength of group.

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Group Compatibility Social influencing components have group compatibility for getting group cohesiveness. If the group is incompatible, cohesiveness is not observed. Compatibility leads to interpersonal interaction and attraction. Social factors influence need compatibility and response compatibility. Need Compatibility: Individual needs are satisfied by group interaction under need compatibility. When the needs of two or more members are satisfied through interpersonal activities, they are called need compatibility. When needs cannot be satisfied through interaction, it is need incompatible. The group members who are incompatible are unhappy. The effectiveness of group members is adversely affected. If needs are satisfied, compatibility is observed. The basic example of a compatible group is a married couple. Compatible groups are expected to be more productive than the incompatible group. Group members try to solve the problems through seeking co-operation oflabour, agreement among group members and intellectual approach to the problems. There are three types of compatibility i.e., interchange compatibility, originator compatibility and reciprocal compatibility. Compatibility index has three need areas viz., inclusion, control and effective indices. Heterogeneous groups are not compatible as homogeneous groups. The social factors have been influencing to create compatibility and non-compatibility. Response Compatibility: Behaviours of group members creates compatibility or incompatibility. They influence performance and satisfaction of group. Response compatibility is viewed from authoritarian, autocratic, assertive, dominating and other leadership characteristics. Combinations ofthese attributes show dissimilarity ofleaders and offollowers. They have great influence on compatibility which provides the base for group dynamics. Leaders \\ith less directive and autocratic qualities have democratic followers, when followers are less educated, the leader would have to wield more effective influence in group participation. Groups composed of authoritarian members perform better in centralised structure than in decentralised structure. Social Power Social influences have given birth to different power structures. Status and position give power which is generally accepted by society. Sometimes status and power are interchangeable. Authority is legalised power given to a group leader who commands group activities. The social power is accepted as the ability to influence the people in and out of a group. It is the control of reinforcers accepted by group members. It is end-result of social process Leadership is a special case of social influence. It is exercise of power in a situation. Social influence is exercised by the group members as well as group members are influenced by social factors. Social power is manifested with attraction power, reward power, legitimate power, coercive power and expert power. These powers have been discussed in the chapter ofleadership. These processes influence group process in several ways. The behaviour of group members is influenced by the amount of power. Inter-group and intra-group communication is affected by social factors. The reaction of group members to a group leader demonstrates the types of group functions. The social power affects not only the reactions of others but also the pO\\ erful person's own behaviour. Power exerts much more pervasive influence on group process. There are differences between behaviour of powerful and powerless members. Power makes a person corrupt. Powerful person is likely to use his power to get work done by his own wishf's. It creates repulsion in the group. Males and females differ in use of power. When a male uses power to control others, female uses power to influence others. The behaviour of powerful members and the reactions against powerful determines the shape of group behaviour. Benevolent members have powerful

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behaviour which has positive impacts on group dynamics. On the contrary malevolent members get least cooperation from others.

Leadership A leader influences social perceptions and is also affected by social components. A leader of the group gets more communication from society than other members of the group. He is the centre of attraction and interaction by social functioneering. Leader is the person to lead the subordinates to achieve group goals under social impediments. Social organs are opportunities as well as threats. Leader tries to convert the threats of society into opportunities of group and organisation. He creates group syntality converting the group loafing in right direction. Leader has greater influence on group performance. He exerts positive influence on group members so that group goals are achieved effectively and efficiently. Leader having negative approach to group goal is not regarded well by established group members. Leader has sociability and motivational characteristics. Group leader must recognise that hostiJity is thirty times as great in the autocratic as compared to democratic leader. Aggression is right comes greater in autocratic than in the democratic leadership. This finding was revealed by Lewin, Lippitt and White. Leader is more successful when his role is participatory rather then supervisory. Situational factors affect the perception ofleadership. Contingency model is effective as a leader. Group activities are influenced by leader's positive power, task structure and personal relationship between leader and members. Social environment has greater impact on group dynamics through various group and leadership functions. External members appreciate or deprecate the group functions and goals. If social members recognise the group process, group dynamics is strengthened on the other hand, group dynamics is lessened if the social members condemn group goals.

TASK ENVIRONMENT Group has a certain task to achieve group goals. The task structure and task function decide the degree of group dynamics. Task is motivation. It should be structured in such a way as to achieve goals effectively and efficiently while providing satisfaction to employees. Multiple variables influence task environment. Group goals, individual goals. task selection and task analysis are important components of task environment.

Group Goals Goals are specifically mentioned for the group activities. Group goal is attainment of group objectives within a specific period of time. It is a motivational factor. Goals of a group to be attained within a specified time and energy are important. These are distinctive of individual goals although they are composite of individual goals. Whatever goals are held by group must be attributed to individual's goals. Group members specify the group goals. They should have unitary goal There must not be any hidden agenda. All goals must be consciously reported to group members who accept them as their own goals for effective realisation. Goals directly help members to have goal directed activities. Members of a group realise that goals are preferred locations of the group. The desired goals must be attained by group members. Members feel satisfied when the goals are achieved by them. Group goal is an end to be attained by group members. Goals may be long range or immediate. Members plan their resources to achieve immediate goals first and then try to achieve the long range goals.

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Individuals Goals It is implicit that individual goals should not hinder achievement of group goals. It is defined that the group goals are composite of individual goals of group activities. In other words, group goals are divided into individual goals; which make individual members liable when they are achieving them and they get satisfaction at achieving one's own allotted goals. Individual task is set as per individual goal of group member. Individual goals are allocated as per their respective aspirations.

PART - III Individuals establish goals for the group and respond to goal's achievement. Group goals motivate each and every member to achieve their respective goals. Tasks Selection The tasks of the group are designed as per group goals. The method oftask structure decides the degree of group achievement. It must be decided what portion ofthe task will be completed by whom. Task should be properly allocated amongst the group members, so that their aspiration phenomena and motivation theory are achieved. Task selection is made for the group in such a way as to maximise the expected satisfaction and minimise expected dissatisfaction. The selection of group task is influenced by the degree of past success or failure, effects of external pressures, group-oriented motives and person-oriented motives. Success is followed by selection of more difficult task and failure is followed by selection of less difficult task for future action. Group members respond to social pressures arising outside the group. Group members are attracted because of group's success and are distracted due to group's failure. Group oriented motives have predictable effects on task selection. Members have strong desire to achieve group success. When members are motivated by the desire to avoid group failure, they would prefer to choose no task because they want to avoid the possibility of failure. A group with high unity and high cohesiveness is more likely to select tasks in intermediate difficulty range. Members in central position are likely to select tasks of intermediate difficulty. Group strength, position centrality and reward conditions involve high degree for group success. Person oriented motives influence task selection in the same manner as group-oriented motives. Task Analysis Task analysis involves the development of a standard group task, the classification of asks into specific categories and dimensional analysis of group tasks. Standard group task has certain characteristics that are adaptable to a variety of problems. The inputs, outputs and member resources are well specified for standard task. The classes of task are sorted more or less exclusively. Tasks, may be clerical, discussion, intellectual, mechanical, co-ordination and reasoning. Task may be divisible or unitary, maximising or optimising. Group should do as much as possible of something or do it as quickly as possible. It is called maximising tasks. Performance of actual amount oftask is known as optimising tasks. Tasks differ from person to person while following the prescribed process of task performance. Task may be distinctive, conjunctive, additive and discretionary. Disjunctive requires either or decision and conjunctive tells that each member must perform the task; Additive task is summation of individual processes when individual contributions are segregated; discretionary tasks are visible. The task analysis is done from different dimensions such as difficult, multiplicity, intrinsic interest, co-operation requirements, intellectual manipulative population, familiarity and so on. Task analysis requires several steps such as identification and defining of potential task

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dimensions, assembling and describing group tasks; psychological setting oftasks, dimensional decisions, range classification and determining correlation between different types of tasks. Task analysis makes goal clarity for adopting appropriate path. Goal-path clarity is important approach of enhancing group dynamics. Co-operative and competitive groups are defined for task performances. There is greater valence and positive inducibility in cooperative group than the competitive group although satisfaction is higher in competitive group. In normal situation co-operative group is more effective than competitive group. The social environment and task environment have positive as well as negative impacts on group dynamics as per the situation.

Group Decisions Group dynamics is influenced by the group decision pattern. There is a need to attain specific objectives and exercising greater control on the group process through appropriate decisions. Four methods are used for arriving at group decisions. They are brainstorming, nominal groups, Delphi technique and dialectic inquiry. Brainstorming Group decision is arrived at through brain storming which is a creative technique of decision making. It is a generative step taking as many ideas are generated by the group members. Imagination is given full freedom. Members are given full autonomy to suggest anything that they like. When numerous ideas have been collected by the group leader they are appraised one by one. Earlier ideas are also given due importance. While ideas are being generated, no member criticises others' ideas because it hinders the freedom of idea creation. When ideas are being screened, members are asked to evaluate them without personal criticism. Ideas which are irrelevant and inconsistent may be discarded. They may be recorded because it encourages idea generation. It is possible that new ideas might be more useful. When all ideas are collected, the second stage of screening and evaluating starts for arriving at correct decision. The main purpose of brainstorming is to encourage people to propose bold and unique ideas without worrying about their relevance. Brainstorming produces more ideas than the conventional methods. It has definite time within which ideas are generated and evaluation process is also completed. Every member is given a chance to suggest new ideas. Members are encouraged to give more ideas which are usually recorded by the group leader. Discipline is maintained while ideas are generated. Only one member is allowed to speak at a time. Members are enthusiastic and participative. Ideas are generated and extended during idea generation. The members are satisfied because they get the chance of participation in decision making process. Strong task orientation is maintained. The final decision is the outcome of team participation. Members are encouraged for giving outstanding ideas. Use of computer has facilitated brainstorming as new ideas are recorded in the computer. Their pros and cons are also noted down. Individuals can see all the ideas with various pros and cons on their personal computer. They suggest appropriate solutions based on these ideas. Brainstorming is divided into three sessions; viz., ideas generation, ideas screening and final decision. They are systematically adopted by the group members who willingly co-operate in the brainstorming process of group decision. Nominal Groups Under nominal groups, individuals are presented problems to which each member gives solution. His suggestions are thrown to house and discussions are invited, clarifications are

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sought. Similarly some other suggestions are also invited. The suggestions are noted down by all the members who give their final suggestions secretly through ballot paper where suggestions are noted down. Every member is required to cast his ballot. It has the advantage of participation by all the members although their identities are not disclosed. The dominant discussion group as well as submissive group are given equal oppOItunities. Each idea is evaluated immediately to arrive at different ideas. The merit and quality of each idea is discussed by the group members but they give their decision only after hearing the ideas of all the possible members interested in providing ideas. The members feel pressure of giving ideas although they have to provide only secretly. It helps them maintain parity with other people.

Delphi Decision Technique Under Delphi decision technique questionnaire are distributed to the members who answer these questions. They are not required to meet face to face to avoid any disparity. Under brainstorming, dominant groups take more interest whereas submissive groups do not find the chance of expression although the latter's suggestions may be powerful or useful. In this case, all the members are not requested to reply. Only expert persons reply the questions. They have to assess the problems and suggest suitable measures. The replies are gathered from all members which are summarised and feedback is provided. This process is repeated till appropriate decision is arrived at. It involves more time and skill. Members are motivated to suggest effectively. Only expert-members are invited to participate although suggestions given by non-experts may be more useful. It has certain advantages over brainstorming and nominal group techniques. It has efficient use of expert's time, adequate item for reflection and analysis and elimination of interpersonal problems. Diverse and adequate ideas are generated. The prediction and forecasts are accurately made. Computers are also used for Delphi technique. Dialectic Decision Method (DDM) Dialectic Decision Method (DDM) begins with clear statement of problem to be solved. Two or more competing proposals are generated. The assumptions behind the proposal are identified. Group is divided into sub-groups which discuss separately each and every assumption underlined with. Their decisions are assessed and alternatives are formed. The choice ofthe best alternative is made by them. Strengths and Weaknesses of Group The strengths and weaknesses are assessed to make group dynamics a strong force. The support for decisions is given by expert persons in their meetings. Group arranges meetings of people to carry out cause of action effectively. Group discussion helps understand each other. 11 carries more weight for group as well as outside people associated with the group. Decisions arl free from individual bias. Group Decision -Groups are effective problem solving tool. Groups have greater expertise, more information risk avoidance and motivational factor. Group decision has capacity of being accepted by groUJ: members. The group members accept the correct decision and reject the incorrect decisions. Group decisions are free from individual prejudices. The group decisions are more qualitative than the individual decisions. Group members act and interact with quality information. They get opportunities of self-development as group interaction provides platform oflearning. Ideas are originated, reformulate and analysed. Social facilitation is possible because hard decisions are frankly taken as no one will be pressurised

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for not taking strong decisions. Group decisions provides maximum opportunities of developing group dynamics. Increased participation is feasible. Role modelling helps others grow. Unanimous decisions motivate people to implement their own decisions. It provides opportunities of suppressing weaknesses of group. Frustrations are avoided as members are helping each other. Consensus is basic tenet of group success. Group provides organisational progress, participative advantages, integrating interest, improving decision making, motivating members to carry out course of action, encouraging creative thinking, broadening perspectives and making positive attitudes are the important strengths of group behaviour which gives birth to group dynamics in an organisation. Weakness Group members are exposed to reveal their weaknesses if they are not trained and controlled. Group loafing is witnessed under such situation. Such unproductive and noncontributory members get opportunity to survive. They instigate other members to be lethargic and ineffective. The group has weaknesses of slowness and expansiveness, group think, polarisation, escalating commitment and divided responsibility. Slowness: The group members are slow because everyone's responsibility is taken as no one's responsibility. Committees and meetings are organised without getting any fruitful decisions. Time and money are wasted. People purely enjoy the meeting without seriously taking its functions. Individual decision is more appropriate for quick and prompt decision. Individual competence is more suitable in arriving at group decisions, too. The leader acting as competent commander has been more effective than the controversial group members. Group Think: When group-decision is brought down to individual thinking; it is called group think or levelling effect. It happens when group fails to critically examine its own decisions and assumptions Pressures are built by some individuals on the rest of members to come at group thinking. Dominant persons having authority and vocal power control the wishes of other members who submissively accept the former's views to avoid any controversy in group. Group think is not the real decision of the group but it is acknowledged wishes of higher-ups and dominant members. It lowers the quality of group thinking. Many group members unite together and form devil's voice to put forth concrete arguments against group think. Polarisation: Some members of the group form concrete groups. They develop their own liking and disliking. Caste, creed, education and sex are used to form polarised groups. If any member ofthe subgroup is criticised, the other members put defensive arguments. Their attitudes are rigid and extreme. Group members' attitudes is polarised in either direction. Risky decision attitude have high payoffs. Risky shift quickly occurs. Polarisation creates politics. Power corrupts people who use politics to defend themselves and their fellowmen. Escalation: Group members instep.d of putting rational ideas provide twisted form of statement for certain ulterior motives. The escalated views destroy the basic flavour of group dynamics. These may not be always ulterior motives, group members are not fully competent to arrive at group dynamics. They inadvertently shift from the real path of discussion. Many members try to protect their self esteem. There is strong admiration of leaders for risk taking. They do not face adversity. Divided Responsibility: Everyone's responsibility is no one's responsibility in group behaviour. Individuals generally do not take personal interest in group. In absence of any clear cut division of responsibility, no one takes it seriously. Group behaviour should avoid such types

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of attitude. It has been observed that group decisions have been arrived at more effectively and efficiently in corporate management. Group members should avoid the weaknesses of group decisions for getting effective use of group dynamics.

Team Work Group dynamics depends on team work which is a small group having co-ordinating action. Small groups or teams are specifically designed to achieve their respective targets. The total group activities are divided into small groups i.e., subgroups of teams which aim to achieve their respective tasks. The frequency of their interaction and their ongoing existence makes them different from short term decision-making groups. Task team is developed for achieving the target of group. Task team is told their objectives, responsibilities and authority. The task team has enthusiasm and co-operative spirit. They work like a commando force wherein if one soldier is attacked, other soldier immediately take action. The task team is similar to warrior groups. They work in a co-ordinated action. The ingredients ofteam are supportive environment, skills and role clarity, super ordinate goals and team rewards. Supportive Environment: Teamwork is developed in a congenial environment. Each member of the team is supporting others. Supportive environment is the first step of team work. It contributes to members' morale. They are assured of safety and security and perform their activities in high spirited environment. Team-members have co-operation, trust and compatibility. Supportive culture is developed in team-building process. The best example of team work is of the soldier who can sacrifice even his life for the protection for his fellowmen. Skills and Role Clarity: Team members are adequately qualified to perform their jobs. They cooperate with others. Each member knows the roles of other members with whom he interacts. When the need arises other members act immediately for attaining the goals ofthe group. Team member responds voluntarily to the demands of the job. They take appropriate action to accomplish group goals. Each and every member co-operates willingly. Inherent spirit of cooperation exist in team work. They work for quality, customer satisfaction and achievement of group goals .. Superordinate Goals: The team members consider the goals as superordinates and try to achieve them with great efforts. Group members fix their individual daily quota of work which are certainly attained by them. They focus attention on efforts and stimulate cohesive teamwork. For achieving superordinate goals internal conflicts are resolved. The minor differences are overlooked by the team members. Team Rewards: There is presence ofteam rewards in ,the team work. Team members aspire to get reward as it makes their team distinctive one. Innovative team rewards make all the members active and energetic. Members are committed to achieve group goals. Group dynamics is the life blood of any organisation. The members of the group must be healthy, skilled, co-operative and spirited to achieve group goals. The strength of the group is visible with the strength of is members. Group dynamics is an essential feature of an organisation. QQQ

Chapter 18

ORGANISATIONAL STRUCTURE 1.

2. 3. 4. 5.

MEANING AND CHARACTERISTICS OF ORGANISATIONAL STRUCTURE ORGANISATIONAL DESIGNS FACTORS INFLUENCING STRUCTURE CLASSICAL MODEL OF ORGANISATION STRUCTURE MODERN MODEL OF ORGANISATION STRUCTURE

Organisational structure represents skeletal framework for organisational behaviour. Organisational structure is an important factor like individual and group behaviour to influence organisational behaviour. It is a form of work-division interrelationship, organisation goals and culture of the organisation. Behaviour in organisation depends on the individual characteristics, group functions, structure, environment and technology. Structure plays a predominant role in organisational behaviour. Organisational structure is a system of constant interaction with environment, goal, people and technology. Structure is a system associated with people, environment and technology. The organisational structure is discussed under meaning, designs, factors influencing structure, classical model of organisational structure and modern model of organisational structure.

MEANING OF ORGANISATIONAL STRUCTURE Stephen P. Robbins has defined organisational structure as "how job tasks are formally divided, grouped and coordianated."l It tells how specialised and non-specialised tasks are performed. The framework of organisation is structure wherein the job of each and every person is defined, described and co-ordinated to achieve organisational goals. The control, command, division of work and placement of jobs to them are considered under organisational structure. Centralisation, differentiation and related factors are considered under organisational structure. The important features of organisational structure are also discussed in this chapter.

Characteristics of Organisational Structure The structure is differentiation of functions to facilitate goal achievement. Jobs are differentiated according to the nature and specialisation of the jobs. For example, marketing 1. Stephen P. Robbins: Organisational Behaviour; Prentice Hall ofIndia, 1996, p. 550.

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experts have marketing functions and financial experts look after the financial functions of the organisation. The main characteristics of organisational structure are differentiation, standardisation, specialisation, departmentalisation, chain of command and decentralisation. The impacts of various characteristics are visible on communication network, informed group formation, attitudes of employees, motivation, leadership and so on.

Differentiation Jobs are differentiated for achieving the goals more efficiently. Interrelated tasks are put in one group. Thus, many job groups of differentiations are developed under structure. The jobs are subdivided into horizontal and vertical forms. Horizontal Differentiation: The division of labour is the best example of horizontal dim·rentiation. The jobs can be divided on the basis of purposes, process, persons and place product line change or departmentation is horizontal differentiation. Technological changes are differentiation for improvement of the process. People are motivated to perform the job in an effective manner. Decentralisation is another form of organisational structure.

Vertical Differentiation: Vertical differentiation deals with hierarchy, power, influence, authority, responsibility and span of control. Level and function are vertical differentiation. Vertical distance is created between individuals and groups. Scalar or chain of command is used for differentiatiori. Generally five levels of authority are observed viz., top, middle, lower, supervisors and employees. They have different goals and activities. The function is commanded and controlled accordingly. Each cadre has different authority and responsibility which are exercised by them for achieving organisational goals. Standardisation Organisational structure is formalised or standardised for simplicity and efficiency. The jJrocess; input and consequently the output are uniform. There is minimum amount of discretion. Jobs are explicitly defined and described. Employees have least amount of freedom under standardised structure. They adopt stereotype process. If the formalisation is low, the employees are free to process according to their liking. They behave in a free atmosphere. In case of standardisation, the behaviour is known. They have to perform as per the set rules of the work process. Less standardised structure gives more freedom to employees. They exercise discretion in their work. Employees do not have alternatives to behave differently in case of standardised structure. This structure differs as per the nature of work. More freedom in behaviour is possible with less standardised structure and less freedom is there in case of standardised structure. Specialisation Specialisation is another component of organisational structure. Each and every part of the whole work is done by specialised people. The total work is broken up in small parts and performance responsibility of each part is assigned to expert persons. This makes people more specialised and active. There may be further subdivision of each part to make it more specialised. Each step is completed by skilled labour. Specialisation of whole activity is possible by breaking the total work into separate parts, subdivisions and steps. Specialisation makes all the work more useful whether it involves skilled or unskilled functions. Even highly sophisticated tasks can be easily performed by specialised structure. Time, money and energy are effectively utilised through specialisation. Skill of employees increases by repetition. Complex and sophisticated operations are performed easily acquired due to skills and specialisation. It is a well known fact

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that the level of specialisation increases along with technological development. Specialisation has increased performance and employees' satisfaction.

Departmentalisation Specialisation is grouped together to form ajob which is to be performed by a department. The next step of specialisation is to combine similar activities into a group. Departmentalisation is grouping of specialisation into specific functions. Different functions are grouped on similar basis. For example, engineering, accounting personnel etc. are the important functions which are grouped into separate departments known by their respective functions. Departmentalisation is used in all types of organisations according to their objectives and functions. For example, a university has different departments such as academic, administrative, teaching etc. Similarly other organisations have different types of departments as per their objectives and activities. The departmentalism is done on several bases such as product, process, place, customer services and administration. Product Departmentalisation: Departments are divided on the basis of product. An organisation engaged in cloth manufacturing has ready-made department, cloth department, cotton textile department, synthetic fibre department. Each department has its own head who is looking after the total functions of his department. The accountability, authority and responsibility are specifically assigned for each department. Process Departmentalisation: The product department itself is divided into several subdepartments. The process of organisation is the basis of departmentalisation. For example, proofreading, printing, machine repairing and setting of places are the important departments of a newspaper printing organisation. Each process requires different skills. The people working on a process become specialised during a reasonable period. Place Departmentalisation: The department is developed according to territory, geographical areas and place of functions. The departments in one state and other states have different functions according to their nature of work. Regional departments have their specialities in performance and functions. Head office and branch offices are the basic examples of place departmentalisation. Customer Service Departmentalisation: Departments are formed according to the needs of customers' services. For example, Bata Shoe Co. in India have different showrooms and retail stores to meet the requirements of customers. Wholesaling, retailing and departmental stores are the main departmentalisation to cater to the needs of customers. Efforts are made to satisfy the customers' needs at every department. Ifthey are not satisfied; the customers are requested to consult some specialised personnel in high~r departments. Administration Departmentalisation: Organisation develops its own administration department. The personnel department, secretarial department, training and placement department and so on are the various examples of administrative departments. Accounting, auditing, salary, provident fund, pension etc. are the other examples of departmentalisation, on the basis of administration. Departments looking after government policy, taxation, social responsibility and human resource development are functioning in big organisations in India. Chain of Command Organisational structure decides the mode of chain of command. Line organisation has scalar chain of command, functional organisation has supervisory command. The chain of command is the unbroken line of authority that extends from the top of the organisation to the

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lowest eschelon. It decides the amount of authority, responsibility and accountability at the level of each chain. Delegation of authority flows from higher to lower level in different forms in separate organisations. Authority is the legalised power. Higher level asks lower level to perform some functions which are expected to be carried out by the lower manager or employee. In line organisation, the command is by only one person to whom the lower manager has to account for. It is known as unity of command. In functional organisation the employees are accountable to the functional heads. There may be a number of functional heads depending upon the functional aspects. It is known as functional command. The chain of command decides the span of control which is the number of subordinates a manager can effectively and efficiently direct. The span of control is decided by the formula =n

c[ 2;

+(n-l)] whereas 'n' is the number ,of employees. If the number of employees is 2, the

line of control or span of control will be 6. If the number of employees is 3, the span of control will be 18 because of their direct relationship, group relationship and cross relationship. The. number of employees with a supervisor influences the effectiveness. A m&nager can keep close contact if the number of employees is smaller.

Centralisation Organisational structure is also based on centralisation and decentralisation. Centralisation is the degree to which decision-making is concerned at a single point. It is the right or authority which is confined to few people in the organisation. Top management, keeps their decision-making power unto themselves under centralisation. On the contrary when lower manager is given decision-making powers; it is decentralisation. Under decentralisation, decision is more effective and quick. Modern organisation mainly adopts decentralisation for flexibility and responsiveness. Lower managers are closer to employees.

ORGANISATIONAL DESIGNS The structural design of an organisation has been given prime importance in the organisational behaviour. Better design makes behaviour sound and effective. The suitability of design depends on the nature of work and environment. Basically three designs are accepted in behavioural science, viz., simple structure, bureaucratic structure and matrix structure. Simple Structure Simple structure has low degree of components of structure. There is low level of control, single person control; less standardisation or formulation and low degree of departmentalisation. The span of control has only two or three vertical levels and loose employee command. The manager is one or very few but controlled by only one. There are a very small number of employees. The command and control is done by only one person. Every function is simple and well-known. Accountability is clear. The structure is inexpensive to maintain. It is fast and flexible. It becomes difficult to manage if the organisation grows. Centralisation has made it difficult to manage all the growing activities. Low formalisation has made task performances difficult to expand. Decision-making process slows as an organisation grows. Slow decision makes organisation ineffective. Employees behave wildly. Simple structure is visible in small organisation. Everything is risky. The organisation is only a one-man show. Ifhe is ill, the total organisation collapses. Simple structure is unsuitable for larger organisation.

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Bureaucratic Structure Bureaucratic structure is based on rules and regulations which are considered prime movers of organisational behaviour. It is standardised. For example, departmental stores have a set process of selling. The articles are collected in a basket by the consumer who takes them to the bill counter where a bill is prepared and taken by customer. After payment of the bill, the goods which are packed by the employees are taken over by the customer after handing over one of the copies of the cash memo. Bureaucracy is highly routine operating through specialisation. Bureaucratic structure has narrow span of control, scalar chain of command, functional departmentalisation, centralised authority and highly formalised functions. The activities are divided into highly specialised structure to make functions efficient and effective. In the absence of specialisation, the performance will not be qualitative and efficient. Managers do not have personal discretion as they have to follow the rules and regulations while taking any decision. Centralisation is the main tenet of bureaucratic structure. Duplication is avoided although in a lengthy span of control; the order lmnecessarily flows to various channels. Since every function is governed by rules; there is less scope of innovation, research and development. There is no rule for modification. Despite several drawbacks, the bureaucratic structure; has proved successful in managing routine types of organisation. Matrix Structure Matrix structure combines different factors of organisational behaviour in an efficient manner. Employees have to carry various responsibilities according to the nature of work, hierarchy and position. Matrix is a combination of departmentalisation, functionalisation and product. The departments are created as per need of place, person and product. Functions are used to create several structures. Similarly, main product, by-product, sub-product and allied products are factors and avoid their disadvantages. The disadvantages of simple structure and bureaucratic structure are avoided under matrix structure. The matrix structure is co-ordination of diverse functions. Instead of scalar chain of command, there are multiple supervisors as per need of functions. It is most useful for large organisation. It provides economies of scale by minimising cost of operation and maximising the revenue. There is fear of ambiguity, conflict and power struggles in the absence of set principles offunctioning. Matrix structure is designed systematically to avoid its weaknesses. EXTREMES OF ORGANISATIONAL STRUCTURE The organisational structure is influenced by several factors such as corporate strategy size, technology and environment. There are two extremes of organisational structures. The real structure lies in between these two extremes depending upon the determinant factors. The two extremes are mechanistic extreme and organic extreme.

Mechanistic Extreme Extremes are related to the components of organisational structure e.g., specialisation, departmentalisation, chain of command, spans of control, centralisation and formalisation. High degree of these components have been included under mechanistic factors. Employees are performing their jobs as per routine system. They do not have their discretion to manage the activities. Employees perform like machine in highest degree of mechanistic approach. The communication is hierarchical. It means higher authority instructs the lower whereas the lower has no power to question the order and suggest his own measures. It is a form of bureaucratic structure. It is highly dictatorial structure of organisation.

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Organic Extremes Under organic extremes components of organisational structure are more loosely used and more freedom are given to employees who take more interest in job performance rather than rule observation. It has cross-hierarchical and cross functional team work. The components of organisational structure are at a low level. For example, there is low specialisation, low departmentalisation, few chain of command, wide span of control, decentralisation and less formalisation. Upward, downward and lateral communications are practised under organic structure. The employees are empowered to participate in decision-making process. It is highly democratic form of organisational structure. FACTORS INFLUENCING ORGANISATIONAL STRUCTURE Organisational structure lies in between the two extremes i.e., mechanistic and organic as per factors influencing the structure. The important factors influencing the structure are corporate strategy, size, technology and environment. Corporate Strategy The corporate strategy has important impacts on the structure. The dictational strategy of organisation requires bureaucratic structure. The mechanistic structure is loosened under democratic strategy. Structure is developed to achieve objectives through application of corporate strategy. Structure is determined according to the strategy. The hierarchical structure depends on the overall strategy at corporate and departmental levels. Structure and strategy are closely linked. If there is any change in the strategy, organisation structure is also changed. It is, therefore, essential to make an adaptable structure according to changes in strategy. The strategic frameworks are imitation, innovation and cost minimisation. Imitation does not mean imitation of other strategy. It refers to following its own previous strategy. The previous strategy helps to find out suitable strategy for minimising costs and maximising revenue. The scientific researches are followed and are utilised in the organisation. Innovation strategy refers to changes in the existing strategy for better. The technological developments are included in the strategy. Cost minimisation refers to refraining from unnecessary expenditure. Innovative strategy deals with low specialisation, low centralisation and low standardisation. Plainly, it is stated that innovation strategy encourages organic structure and cost minimisation strategy helps maintain mechanistic structure wherein control, specialisation, formalisation and centralisation are at high level. Immitation strategy has a mix of mechanistic and organic strategy. Size

Organisation size has important bearings on organisational structure. Large organisation cannot perform effectively with simple or bureaucratic structure. It has to adopt matrix structure. Organic structure is suitable for small organisation. Mechanistic approach is more suited to big organisation. Specialisation, departmentalisation, formalisation and decentralisation are required for big and large organisations. Wide span of control and functional command are also needed for large organisation. The imitation strategy wherein mix of organic and mechanistic approaches are adopted is more suitable for large organisation. The structure should haVE adaptability as size increases. Number of factories and offices may expand as per need of person place and position.

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Technology Technology development influences structure. Sophisticated techniques require mechanistic approach wherein high specialisation rigid departmentalisation, clear chain of command, narrow span of control and high formalisation are needed. Decentralisation increases innovation and technological development. Technology refers how input is transferred into output. It is applied in all the areas of management viz., finance, market, personnel, production and communication. Routine tasks are related with departmentalisation and formalisation. Centralisation is useful only in routine technology. In innovative techniques, decentralisation is essential. Environment Environment is reactive results of various internal and external factors influencing behaviour of people in an organisation. The behaviour of managers, employees, customers, distributors, government agencies and outsiders decide the specific form of environment. It is not static, it is changing from time to time and place to place as per needs of people and organisation. Environment influences behaviour of people of organisation and is also being influenced by their behaviour. Situation has great role to play in shaping the environment. Organisation having relatively static environment is facing less turbulent as compared to those organisations wherein the environment is changing. Uncertainty in environment influence adoption of a particular structure. Capacity complexity and volatility of environment influence organisational structure. Capacity: The capacity of organisation to sustain environment is influencted by structure. Environment encouraging growth is the deciding factor of organic structure. Environment inhibiting development compels to adopt mechanistic form. Abundance of capacity has chances of misuses of funds, people, position and other resources. Source capacity encourage people to adopt restrictive functions. . Complexity: Complex functions require mechanistic and matrix structure. The degree of heterogeneity requires organic structure. Homogeneous and concentrated environment encourages the organisation to adopt mechanistic approach. Highly complex environment has more heterogeneity and dispersion More complex environment requires more mechanistic structure. Volatility: Volatility is related with predictability and stability. Manager having volatile system adopt mechanistic structure. If it is highly volatile, the organised structure will be formalised, specialised and so on. In low volatility, organic structure is sufficient. The degree of volatility decides the degree of combination of mechanistic and organic structure. CLASSICAL MODEL OF ORGANISATION STRUCTURE Classical model relates to the traditional systems of organisation. It has been originated by Max Weber, F.W.Taylor, RolfE. Rogers and others. Among all the theories under classical model, the important theories are bureaucratic model and scientific management. The other structure model are centralisation model, flat and tall structure model, departmentation and staff concept of organisation. Organisation structure influences the behaviour of people in the organisation. Bureaucratic Model The first person who put bureaucracy in a model form was Max Weber who in his book, The Theory of Social and Economic Organisation has expressed bureaucracy as an ideal

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organisation structure. He emphasised that it is a specified sphere of competence. The bureaucracy model as suggested by Max Weber are division oflabour, specialisation, hierarchy, abstract rules, impersonal relationship and qualifications.

Division ofLabour: Work is divided into different parts and each part is given to a labourer who is interested in the job and has competence to perform that portion of the job. Employees get a sphere of obligations to perform functions. Division of labour is done systematically with a set of authority and responsibility. The importance of carrying out authority to perform assigned duties has been realised since beginning of civilisation. Specialisation: Division oflabour creates specialisation as performing the same type of job makes the employee more competent. It is essential to accomplish the organisational goals. Highly specialised functions make employees satisfied as they get the feeling of distinctiveness. The responsibility is easily carried as the specialised job is well-defined. No other members infringe on the rights of the specialised job. Specialisation increases the speed of work. Productivity is increased along with proficiency. Hierarchy: Bureaucracy is based on hierarchy which defines the scope of authority that can be exercised by superordinate on the subordinates. The success of an organisation depends on the principle of hierarchy. Max Weber has pointed the bureaucracy provides controlling structure that is essential for any organisation. It is a natural order and human desire to control others. The authority of control is given to only those people who have adequate restraining power ov~r themselves otherwise misuse of power mar the basic objective of organisation. People enjoy hierarchy and are motivated to work hard to go up in the hierarchical order. Hierarchy is natural instinct which is instrumental to mobile individuals and groups for achieving organisational goals. It has the capacity of increasing employees' satisfaction and organisational performances. Abstract Rules: Rules and regulations are formulated to manage the bureaucratic organisations. It is said that rules are gods for the employees working in bureaucratic system. Going beyond rules makes employees punishable although it increases productivity and performances. Rules are permanent whereas employees may come and go. It provides perpetual succession in the organisation. Rules ensure uniformity and co-ordination of functions. The differences in task performances and uncertainties are narrowed down by rules. Impersonal Relationships: Official relationship has more prominence in bureaucracy than personal approach to employees. Bureaucracy has formalistic impersonality without love and affection, without hatred and passion and without personal sentiments. It has only ideal rationality without personality and attachment. Impersonal attitude is developed to make organisation a healthy body. There is no influence of society and indiv.iduals on the corporatedecision in an organisation. There is no place for prejudice and preference. Qualifications: Bureaucracy develops only on qualification and merit recognition. Employment involves lifelong career and the employees should be promoted only on merit and qualification. It provides stability and control - success. Qualification provides definiteness and promptness of decisions. Rational and impersonal decisions are pOf'!sible if the selection, promotion and business decisions are based on merit. The job decides the nature of merit. Max Weber has provided the above bases for ideal bureaucracy which is difficult to establish in real life of a business organisation. It has its own defects and limitations in that context. He has not given any consideration to environment and business' exigencies. Rules and control

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mechanism have resulted in multiple problems without enhancing performances and satisfaction. However, Max Weber's theory of bureaucracy has paved the path of organisation structure. Peter M. Blan has modified Weber's theory by incorporating money economy, capitalistic system, ethics and size. He said that some of these factors essentially exist in bureaucracy although in the long run they exist under bureaucracy. These factors are used in the large scale administrative function. Bureaucracy is visible in India since civilisation where kings were considered supreme. They had the final verdict in legislative, executive, judiciary functions. Some cruel kings used the power to exploit their people and others used them for increasing their welfare. The power, responsibility and duties were the same but their transferences differed from time to time. History supports bureaucratic system in almost all types of organisations. The canals, road, transport, irrigation system developed in India by adopting bureaucratic form of administration. Many religious, social and public administration during medieval period were based on bureaucratic systems. The bureaucratic structure helped development of government, social, religious, military, education, hospital administration during the start of twentieth century. The business houses at present adopt modified form of bureaucracy. The basic tenents of bureaucracy, viz., specialisation, departmentation, decentralisation, standardisation and formalisation are observed in big business houses. Bureaucracy having functional advantages suffers from certain disadvantages and dysfunctions. It is used by higher class to exploit lower and weaker sections of society. Since bureaucracy characterises strict hierarchy and discipline, the higher authority gets chance of exploitation in that name. On the other hand, specialisation and formalisation serve good purposes of the organsiation. Efficiency and productivity are increased. Specialisation is not for ordinary employees. It has its own technology and method of functioning. The functional attributes of hierarchy are unity of command, co-ordinated functioning and reinforcements. Communication in bureaucracy is slow and detrimental because of too much sophisticated language and blockade of upward communication whereas the organisation succeeds only at proper flow of downward and upward communication. Individual initiative are discouraged under bureaucracy. Dysfunctional qualities are visible in the form of red tape, rules master and self interest. Impersonal quality of bureaucracy has more dysfunctional consequences. Rule and procedures are supreme than the goal attainment.

Scientific Management Model Frederick W. Taylor has sponsored scientific management structure. Being basically mechanical engineer he concluded on the basis of his observation of working pattern and investigation that there is enough scope of managing the functions and people scientifically. He empirically studied their activities and initiatives. On that basis, he designed the organisation structure to get optimum efficiency. The rules and regulations as stipulated under bureaucracy are scientifically modified. Individual activities as well as corporate activities are systematically studied. Practical rather than theoretical findings were utilised for creating scientific structure by replacing rule of thumb by developing scientific elements of man's work by scientifically selecting and training the workmen, by using principles of science in co-operation and by division of work. The principles of scientific management include reducing inefficiency, increasing systematic management of man and materials and also use of scientific management to all human . activities. Taylor has advocated scientific analysis rather than common sense solutions of the problems. He has emphasised on scientific selection, training and development of work for

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achieving effectiveness workers should understand their roles and managerial tasks. His focus was on job and activities rather than the workers. Man's development was not his concern. He has clearly divided managerial tasks and operating tasks. Scientific management has confined only to principles, methodologies and strategies. It has not taken into account development of human beings. He has emphasised on organisational design and structure for getting scientific selection, training, incentive and co-operation.

Integration of Scientific Management and Bureaucratic Structure The scientific management has been blended with bureaucratic structure to yield effective management. Structure is prominent for getting work done efficiently but its rigidity and overemphasis may create problems in organisation. Over reliance on traditional rules and regulations without being empirically tested has given adverse result in organisation. Structural dimensions and operational features are mixed together to get good results. Anatomical structure i.e., structural dimensions include physical location, group task, line and staff organisation, span of control and decision-making process. The structural dimensions incorporate operational features i.e., job specialisation, job definition, authority dispersion, responsibility and accountability. The anatomical structure and operational features are placed with environment and technology. Alvin W. Gouldner has modified the bureaucracy as environment plays an important role in shaping organisational structure. Contingency model is developed on its basis. Weber's model as defined by Gouldner has three stages, viz., mock, representative and punishment centred. The representative and the punishment-centred forms have certain equality with Weber's model. Mock Bureaucracy: Under mock bureaucracy neither rules nor management are enforced. Little conflict occurs between management and employees. Rules are jointly violated by workers. Many participants use the management principles as silent. Representative Bureaucracy: Under representative bureaucracy rules are enforced by management and obeyed by the workers. There is some tension and conflict between management and workers. Informal sentiments are observed between them. There are mutual participation and initiations between management and workers. Education of workers is the main theme of representative bureaucracy. . Punishment Bureaucracy: Punishment bureaucracy is centred with rules and regulations. Rules are enforced by management and obeyed by workers. There is greater tension and conflict in the minds of the people. Punishment is visible and supported by management. The dysfunctions attributes of bureaucracy are witnessed under punishment bureaucracy. Red tape and impersonality are basic attributes of punishment bureaucracy. The modern organisation structure tries to avoid this form as far as possible. Appraisal of Bureaucracy Model Bureaucracy model is not totally unfit for management. It is applicable under contingency. It has certain inherent weaknesses. Bureaucratic structure is less effective in modern structure where new shapes, patterns and models are emerging. It avoids technical competence and uses rules arbitrarily. Role conflicts are inevitable part of the structure. Cruel treatment of subordinates is always possible under bureaucracy model. The bureaucracy as visible in private sector is much worse as observed under public sector. Some grievance redressals are available under bureaucracy of public sector. But, private sector can scold the employees of any category, say even the manager. In India, employees of public sector are not so much cruel victim of

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bureaucracy as employees of private sector. Accuracy, reliability and security are witnessed in public sector: The modern bureaucracy has been observed by Victor A. Thompson as 'Bureaupathology' wherein bureaucrats try to become pompous, self important and authoritarian. They demonstrate high of their minimal performance. They want to become uncommon and treat their subordinates impersonally. On the other hand, employees develop frustration. It does not allow personal growth and autonomy. Innovative and creative ideas are distorted by hierarchical divisions. The basic problems of bureaucracy arise because of mistrust, fear and punishment. The bureaucracy has been modified to make it flexible and adaptable to the changing enviI:onment.

Centralisation and Decentralisation Model Centralisation is the basic tenent of early organisation. Wherefrom decentralisation emerged. Decentralisation is dispersion of operations according to territory, function and decision-making power. Concentration of these operations is known as centralisation. T.erritory is basic area of operation. Under centralisation, all the operations are under one roof in one region. When the operations are spread out at many regions, it is decentralisation. Personnel functions are performed by one department of the organisation in case of centralisation. Under decentralisation, personnel functions are performed by other personnel department. The personnel functions of all the areas of management are performed by their respective departments under decentralisation. For example, the personnel functions of marketing department, finance department, production department are performed by them respectively under decentralisation. If their personnel functions are performed by one department i.e. personnel department of the organisation; it is known as centralisation. This is known as centralisation or decentralisation according to functions. Similarly, centralisation or decentralisation is based according to decision-making power. The decision-making power is retained by the main office or top management under centralisation. The degree of delegation of authority decides centralisation or decentralisation. If more power is retained by the top executives, it is centralisation and if lesser power is retained by them, it is decentralisation. Centralisation has certain advantages and disadvantages. Similarly, deccentralisation has its own merits and demerits. Decentralisation has been preferred by the modern behaviourists. It is a system of democratic form of management as it provides greater freedom of thinking, operation and innovation. It is less authoritarian because employees hate authoritarian philosophies. Sometimes decentralisation is misused by the managers as they use authoritarian views while practising their functions. Decentralisation is used in spirit and language for getting effective results. A highly decentralised structure is that where financial functions, decisionmaking power and other functions are brought down to lower hier!lrchy. High degree of decentralisation is not desirable. Its effectiveness depends on the size, nature, functions and other factors. Moderate degree of decentralisation is needed because too much power of decision at lower level multiplies problems and reduces control mechanism. Too much centralisation reduces motivation. Moderate decentralisation is valuable for innovation, effective decision and dynamic growth. Task responsibility is pinpointed and clearly communicated to people concerned with the organisation. Model ofDecentralisation: Alfred P. Sloan primariiy formulated a model of decentralisation. He has advocated decentralisation of operations and centralised staff services. Executives for performing their jobs, should be given adequate amount of authority so that they can perform their jobs effectively. Central organisational functions are essential for uniform control. It is well known as centralised control of decentralised operations. Decentralisation should be

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expanded as per increasing size of organisation. Multinationals are very good examples of decentralised structure which are used countrywide, region-wise, operation-wise and controlbased. They have developed the model of centralised control of decentralised operations. It has many advantages of scale, efficiency, effectiveness and competence. Decentralisation has different strategy to meet the requirements of different organisations. Strategy of product diversification, situational strategy of functions, systematic strategy, change management strategy, channel strategy and communication strategy are important decentralisation strategy of organisational structure. Decentralised structure itself is a strategy of management to accommodate growth. It is observed that environment plays an important role in deciding the . decentralised structure. It provides an opportunity for individual responsibility and initiatives. Decentralisation cannot go below a certain level depending on the operations, environment and related factors.

Flat and Tall Structure Model Flat and tall structure refers to span of control. This structure is concerned with the virtual structural setting up. It decides the amount of delegation and decentralisation. Span of control is the approximate consideration of flat and tali structure. The former is the authority whereas the latter is the actual functional structure. Flat structure reveals the horizontal structure. In flat structure, a large number of subordinates are present under one subordinate who are also multiple. Tall structure is vertical structure wherein a large span is visible. The number of cadres are increased although the number of subordinates under one superordinate is not very large. For example, tall structure has only two subordinates of top executive whereas in case of flat structure, five or more subordinates under one top executive are visible. Similarly the middle management has a large number of subordinates in each category under flat structure as compared to smaller number in tall structure. Tall structure has very very small or narrow span of control. On the other hand, flat structure has large or wide spans. Tall structure can exercise tight control and maintain discipline as compared to less control and multiple problems in flat structure. Tall or vertical structure has resemblance with classical form of bureaucracy. Flat structure provides more autonomy to employees for innovation and creative thinking. Management competence and morale building are witnessed under flat structure. It reduces the span of control by developing the employees. The tall structure has four or more levels of management whereas flat structure has only two levels of management . .Tall structure assumes the advantages of centralisation. It has diversified views of people. Some believe that tall structure is more useful than flat structure. They have their relative merits and demerits. Tall structure has closer control over subordinates but flat structure has better control because it takes personal interest in the development of employees. Flat structure requires decentralisation because of larger number of subordinates. Tall structure requires delegation of authority to manage each level of management effectively. Self control is more effective than control imposed from above. Tall structure has limitation of decentralisation and non-flexibility of self-control. Red tape is practiced by the subordinates. If the employees are responsibility conscious, tall structure is obsolete. When employees shun responsibility and do not behave properly unless forced to behave so, tall structure is appropriate. Theory of McGregor is applicable to tall structure. Flat structure is useful for motivating people. It is useful when people are active and productive. There is no need of closer supervision because it provides better supervision on the basis of self-control and motivation. Theory Y of McGregor is applicable to flat structure which is end-oriented setting up. It believes in more work and not in necessary following up of rules.

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Conflict and ego problems are more visible in flat structure than that of tall structure. Horizontal communication of flat structure is more destructive than the vertical communication of tall structure. Co-ordination and co-operation are forcibly observed in tall structure, which may be absent in flat structure. Tall structure has advantages of discipline and uniformity. Flat structure has positive attributes of decentralisation. It is beneficial from the viewpoints of behavioural communication. It creates positive attitude requiring less supervision and providing greater individual responsibility as it is less complex and more administratively sound. The structure alone cannot influence behaviour of employees. Proper policies, sound strategy, effective leadership style and group dynamics influence the behaviour of employees to make them more efficient and effective performers in an organisation.

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Departmentation Model Departme~tation model is a bye-product of bureaucracy model. It has received its identity because of its significance of place in an organisation. Departmentationhas emerged on the bases of product, function and territory. While forming departments; time, services rendered, customers' needs; infrastructure facilities and other factors are considered. The department is divided into first shift, second shift and so on based on time. In many universities, some departments have teaching schedule in the morning while other departments are teaching students in the evening in the same building. Time based department serves people at the same place at different times. Service based departments are visible when services are divided into t:lass I, II, III and so on based on the merits of the service. Railway passengers in India have choice of ordinary class, sleeper class, II sleeper and first class in air-conditioned and non-air conditioned coaches, Many a business organisation has divided their business shops into lady class, gent class or family class for their services in executive and economy sale. Customer-wise services are also provided by different departments. For example, there are separate banks viz., commercial banks, development banks, regional rural banks, mortgage banks, merchant banks and so on for catering to different needs of customers. Many printing and typing houses are giving services as per their equipment. For example, thesis may be printed on computer, or typewriter, electronic and manuals. These departmentation are based on equipment. The production process has different departments. There are several other factors deciding departmentation. Head office (H.O.), Zonal office (Z.O.), divisional office (D.O,) Branch office (B.O') and Service centres (S.C.) are various departments. Major Classification of Departmentation Departmentation is done on several bases as we have discussed already but the example of functional or process department, product or purpose department and territorial or place departmentation are usually visible in India. Departmentation can be on the basis of staff or people. So, departmentation is classified on process, product, people and place. Process Departmentation: In business or industry, departments are developed on process basis. It is also known as functional departmentation such as production department, marketing department,' finance department and personnel department. There may be a fifth department of communication and sixth department of research and development. The departmentation grows on expansion. Their name changes but they equalise with some of the above cited departments. Any organisation viz., business houses, university, government agencies, religious institutions, hospitals, social organisations and so on have departments based on their respective functions. For example, government has department of commerce, department of finance and so on although they are known as Ministries. Within the ministries, there are several departments at central level, at state level and at district levels. Functions decide the level and span of departmental structure. Level is tall structure whereas span is flat structure. The level is vertical structure mentioning different hierarchical stages whereas flat reveals the width of the structure, that is how many subordinates under one superordinate. The advantages of process departmentation are specialisation, formalisation, goal achievements and so on. Departments are built on the basis offunctions. Performing the same function repeatedly by expert gives quality output. Specialisation reduces cost and increases qualitative and quantitative output. Since there are a number of subfunctions, the department can be broken into subdepartments viz., sections, centres and so 011. Uniformity is observed in departmentation. Dysfunctional attributes are avoided. Employees are easily channelised for

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goal achievement. Goal becomes motivational factor and departmental goals are ea&ily compared to those of others to mobilise the merited employees and develop underdeveloped employees. However, interdepartmental conflicts are imminent as each and every department tries to achieve its objectives whereas the linked departments do not have the capacity to cope with or , do not like to co-operate with the growing department. For example, if the marketing department is able to achieve its target within 9 months and wants to enhance its market share. Its consequence will be on the product department which requires more raw materials, tools and know how for which the finance manager is approached. The finance manager may not like or may not be in a position to meet all the financial requirements and personality clashes occur. However, the successful organisation reduces this vicious circle and converts it into virtuous circle, viz., more market share demands more production which requires more funds that is available by collecting the money from the market. So more market share leads to functional development of all the concerned departments. Product Departmentation: Organisations have departments on the basis of products. It is well known as profit centred decentralisation. A textile industry has cotton textile department, rayon textile department, jute textile department and so on. If the organisation is observing that the dress fashion in future is inclined towards jeans and jackets, it develops jute textile. Modified textile techniques make jute cloth durable, cheap and fashionable as the product has a different outlook. This distinctive nature of customer is predicted and a major chunk of funds are allocated to jute textile department as it seeks long lasting profit centre. Other departments get only normal funds. Product departmentation is done by many business and industrial houses in India. Tata Group has taken lead in this direction, it has consumer goods, capital goods, engineering goods and so on. Tata Tea, Tata Steel, Tata Salt, Tata Mercury, Tata Consultancy Godrej Soap, Detergent Product, and so on. Product departmentation has developed the business. It has emerged as one of the top ten business houses of world. Product departmentation is one step ahead of functional departmentation. It is a highly specialised job. It mdk.es product adaptability, cost consciousness and management efficient. Product departmentation has maximum flexibility as it can be expanded if there is profit and can be contracted if there is loss. Tall and flat structure can be used as per need of product diversification. It is compatible with the behavioural model. In product departmentation, further functional departmentation or process departmentation is practised. The advantages of flat structure and decentralisation are visible in product departmentation. Staff or People Departmentation: Where people are enjoying predominant position, staff departmentation becomes essential. In military, departments or corps are divided on the basis of people e.g. Gorkha Regiment, Rajput Regiment, Maratha Regiment and so on. When people's control is essential, staff departmentation is essential. Unity of command is needed for managing organisation. The success of structure also depends on the leadership style; policy and planning strategies of department. Line and staff organisation is used in people departmentation. Place Departmentation: The territorial organisation depends on place requirements. Regional organisation is developed for extracting the place opportunity. Centralisation and decentralisation are the main examples of place departmentation.

MODERN MODEL OF ORGANISATION STRUCTURE Modern model structure of organisation is developed on the basis of bureaucratic model, specialisation, standardisation, formalisation and personal relationship. Under modern model system the persons are given more importance for deciding the organisational structure. The

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manager can exercise his authority when subordinates are there and they accept the authority of the manager. So, it is employees or workers at the lower level, who are playing significant role and not the manager in the organisation. This point must be noted down by the behaviourists that the employees at shop floor level are important. So, structure should be framed keeping into account the possible behaviour of employees. The management system should incorporate that type of structure where the employees can understand the instructions of the manager. They must work consistent with the purpose of the organisation while getting satisfaction at work. The employee must be prepared to accept the authority of his higher-ups with his mind and body. The acceptance of authority is taken into account for deciding the structure. People with 'Zone of indifference' in their mind whereat they do not accept or pay attention to any authority or person. Modern model of organisation structure includes system model, project model, matrix model and contingency model.

System Model of Structure Organisation is a system wherein different components of an organisation are set in such a way as to facilitate all the activities providing satisfaction to employees and achieving corporate objectives. The environment is the influencing factor of system structure while design the internal setting for effective communication and reducing uncertainty in management decisions. System approach decides strategy, mutual dependency, process and goals. The system structure has formal organisation, interrelation and interdependent. It decides structure, planning, measurement evaluation, rewards, recruitments, training and motivation, system structure is a conceptual approach. It has unified view of organisation and concept of synergism. Closed and open systems are used in modern organisation. Open system approach is more relevant and meaningful. It is continual interaction with its environment and dynamic equilibrium. The open system has input, process and output with continuum system. It has recycling process and subsystems. Stability and reliability are important factors of system organisation. Biological, human, social economic and technical phenomena are conceptualised in this organisation. All the resources viz., money, materials, men, machine etc. are systematically interwoven to get effective results. Effective System Structure: Effective structure is instrumental to successful organisation. Likert has identified that effective organisation builds effective work groups with challenging performance goals. It has high degree of specialisation, task skills and attitude, training system of best and efficient manner, close supervision and incentives. People oriented design encourages group working. Likert has classified the system structure into two classes. He.named them as classical structure or System 1 and modern structure or System 4. 1. Classical System Structure: Likert has identified the classical system structure as System 1 wherein the structure does not change with the environmental changes. It is static and interaction free. It.has low performance goal. There is no scope of human resource development .. Manager is passively working as per rule - as the power is centralised with the top executive who sets the goals and discourages group participation for decision. He himselftakes the decision and blames the subordinates for non-achievement of the goal. Subordinates have little effect on departmental goals, functions and performances. Communication flows downward and may be distorted in transit as the level of management is stretched to more than 5 cadres. Employees have no real motivation. They only want money as they have fear of punishment and nonpayment at default. Unfavourable attitudes prevail in the organisation. Subordinates have no trust and confidence in the leader as there is an environment offearfulness and pressure. They

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do not feel free to work or discuss the job problems as they are afraid of being punished if they question the orders of the subordinates. Classical system structure is close to bureaucracy model with the only difference being that the system is an important deciding factor in former case whereas authority and rules are dominating factors in the latter case. 2. Modern System Structure: Modern system structure is also known as System 4 organisation wherein employees have confidence, trust and faith in the leader. Subordinates feel free to discuss the problem with their bosses. They are given an opportunity of discussing their viewpoints. Structure has high goals which are sought by superior through developing his subordinates by training and human resource development technique. Decentralisation of decision-making is preferred. People participate in goal setting process. So, they take interest in achievement of goals There is possibility of self control as the fear of punishment is absent. Employees are made responsibility conscious and group performers. They discuss their problemswith the group leader freely and frankly. Goal achievement, performance process and reward system are mutually decided by the superior and the subordinates. Employees feel free to raise any question against non-judicious orders of the superior. Communication are accepted only after verification. Accurate and undistorted information are available to the employees. Employees have different types of motivational avenues e.g., monetary, recognition, out of turn promotion and so on. They have developed favourable attitudes toward the organisation. The satisfaction to employees and corporate performances are increased under System 4 organisation. It is human behavioural approach. This structure is more suitable for managing educated and well learnt employees. The structure is flexible and changeable as per change in environment, technology, task design.

Project Design Structure Project design structure has been developed to achieve certain objectives. All possible resources are assembled to get work done effectively. What objectives are not fulfilled by flat or horizontal strucutre; project structure achieves them efficiently because all the competent persons are put together to achieve the target. It has flexibility, adaptability overcoming environmental uncertainty. T.M.

I

I Production Management

I

Finance Management

Research & Development

Project 'A' Project 'B' Project 'C'

r

I Marketing Management

Communication Management ....,

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Fig. 18.4 Project Design Structure

Project design structure is developed for attaining certain objectives and after attaining those objectives; the structure is abolished. For example Project 'A' as given in Fig. 18.4 takes assistance of production management, finance management and communication management

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for attaining its objectives. These departments with their requisite resources - physical and human - engage the activities of the respective project. When the project has been completed the project structure is abolished and the employees are returned back to the head office. Project structure has specific time and result, specialised effort, high degree of interdependence. The project manager is assisted and controlled by other functional departments viz., production, research and development, administration and other. He has to rely on others. It creates authority gap and problems. Co-ordination and consistency are essential under prQject organisation.

Types of Project Design Structure There are several types ofproject structures. The important types ofproject structures are individual project structure, staff project structure, intermix and aggregate project structure. Individual Project Structure Individual project manager performs the job in his capacity taking assistance of several heads of departments i.e., finance, marketing, personnel and other functions. There is a possibility of personality clash. The difference of personality between project manager and line manager is known as 'authority gap' which is reduced by negotiation, persuasion, competence and mutual communication. The figure depicted in 18.4 is an example of individual project structure. Hierarchical model is maintained but the line function is used to support the project manager. Self Project Structure The project structure may include only individual behaviour or staff function. The staff project structure include staff back-up for project activities. Unlike the individual project structure, the activities are performed by the line organisation in staff project structure. Project manager only supervises the functions in this structure as compared to the individual structure wherein he is being supervised by line people. The project manager under this structure has his own staff who assist in the performance. He has authority and control over his own staff and line people. The project manager is vested with the power of quality performance. He must exercise his leadership in both the structure: individual and staff, for getting expert work done within a specified time. In no case he is forced to perfon.1 as line authority desires. He has to exercise his own technique and control mechanism to get work done within specified time. Prime emphasis is placed on the project organisation. The horizontal structure is present while vertical is used for assisting them. Work is conducted as legitimacy of task is demanded. Line people support the functional people by maintaining proper record of pay, promotion and performances. Intermix Project Structure The intermix project structure includes the autonomy of individual structure and competence of staff structure. It is a intermix of both the structures. The staff people report to the project manager under the structure. The people under him are his own expert members and also the line people. Taking the Fig. 18.4, the structure remains the same with only difference that the individual structure has individual functions under line and the staff structure has his own function although assisted by line. But in the intermix project structure, project manager has command over his own experts and line people. The line people are communicating link between project manager and the main organisation. They have to wock as directed by the project manager. Peer to peer, manager to technical expert, associate to associate relationship are developed under an intermix project structure. It becomes ajoint venture of hierarchical structure and horizontal structure. The top management acts as the head of the project activities.

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Aggregate Project Structure The project manager has his own organisation having staff and line organisation. All the people belong to his own organisation. He maintains them, whenever a project is going on, he manages both of them. The line people are advised to contact the main organisation only on specified time and only for specific purposes. When a project is completed; they accept other project at other place. All the people whether executives, employees or line people go with him to the other place. V.P. Bridge Corporation ofIndia is the model example of aggregate project structure. It performs different functions of construction at different places with their respective staff and people. This corporation has different composite units performing different types of jobs at different places. Inter-unit transfers are made by the head office of the corporation The project manager manages across functional and organisational lines to achieve the objectives of the organisation Matrix Model Structure Matrix model structure is an extension of project structure as it includes functional organisation. It is a mix of horizontal and vertical structure. It includes a number of projects, programmes and functions. It is a form of autonomous decentralisation. It provides facilities of availing the services of specialists for handling various functions of the organisation. Research and development, technological development and innovative functions are feasible with the matrix model structure. (Fig. 18.5). Top Management

Finance

Marketing

Human Resource Management

Communication

Fig. 18.5 Matrix Model Structure

Matrix model structure has functional relationship with all the functions unlike the project structure where each project is different from other project. Projects are not interlinked. In matrix model structure, functions have interdependence and interrelationship. They are also linked with the hierarchy. Highly specialised skills are functional and product oriented. The benefits ofline organisation and offunctional organisation are available under matrix organisation. The vertical structure is administrative and horizontal structure is functional. Thus, the specialists

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at functional level help quality production and administrators at hierarchical level command the system and get work done with minimum cost, uniformity and discipline. The defects of decentralisation have given birth of matrix structure as the decentralised units are effectively controlled and managed by the line people. Controlled and adaptive nature of matrix organisation makes it more useful than the bureaucratic and system structure. Effective matrix structure includes scalar chain of command, sharing power and conflict resolutions. Scalar chain or hierarchical control makes subordinates disciplined and obedient. The matrix structure poses the problems of snatching resources for the achievement of objectives of each and every departments. It requires equitable distribution of resources and proper sharing of power pertaining to finance, physical and human resources. There should be a committee which looks into the problems pertaining to sharing of resources. Conflict resolution is essential as there is bound to be conflict in this structure. Sometimes, confrontation is permitted to understand the problems of employees. Individual plays a great role in matrix structure. Competent persons make the organisation more effective and successful in this structure. The matrix structure is a two-sided sword. If it is not properly and cautiously utilised, it may harm the individual employees as well as the organisation. In absence of clarity of responsibility, role plan, co-operation and mutual trust, conflict and frustration are bound to occur. Anxiety, stress and mismanagement take place in such situations. There is a need for frequent monitoring and appraisal of resource allocations. Time, resources and energy are audited frequently to make their proper allocation. Situation analysis become inevitable for its effective application.

Contingency Model Any structure is not perfect in itself. Their success depends on situation or contingent upon certain events. It is suggested that a particular structure should be used considering its suitability in a situation. Many authors have designed suitability of a structure in a situation. They have concluded that environment, technology and individual differences decide the suitability of a structure. Organisational strategies are designed to adopt a structure in a situation. Any structure is not the best structure. Contingency model does not believe any structure is most suitable. It searches many variables to explore most suitable structure in a situation. Managers are free to adopt any structure as per their suitability under a situation. They have openness in their approach. It is a dynamic nature of organisation. Contingency approach clearly defines the structure for achieving organisational goals. In brief, contingency model of structure considers several variables such as environment, technology and socio-technology. Efforts are made for goal achievements, progress and satisfaction of employees by using a structure contingent upon certain situation viz., environment, technology and socio-technology. Environment The impact of environment on structure-decision was explored by Burns and Stalker as well as by Lawrence and Lorsch as Stage I and Stage II. There have been other authors who have contributed to the theory that environment influences structure formulation. Stage I: Bums and Stalker have examined industrial houses in United Kingdom to find out the impact of environment on structure. They divided the environmental factors into five scale beginning from stable to least predictable. Industry-wise, they predicted that the rayon manufacturers operated in most stable environment. Rayon industry has maximum stability in different environments because of their defined roles, specialised tasks, limited information,

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concentration of power at the top and scalar operated in changing situations as change in environment. Structures were flexible or fluid as per demand of environment. Tasks were not clearly defined. Lines of authority was not adhered to electronic organisations have least predictable environment. Jobs were not defined well. The tasks were managed as per individual decisions of superordinates, and subordinates. Decision-making structure rapidly changes as per requirements of environment. Structure is unpredictable. They concluded that the management processes are primarily related to environmental uncertainty. Environment is extrinsic factor to decide the structure. They concluded two types of management systems: mechanic and organic. Mechanic: Mechanic organisations are stable to environment. They are based on position system and organisational loyalty. Superordinates direct and command their subordinates through scalar chain. Locus of authority is at the top. People are highly specialised. Performance is achieved easily in this orgle. Changes involve high cost and less benefits. The management should evolve the CO&t& and benefits of changes. If the costs are higher than the benefits, the change is avoided. Similarly, if benefits are more than the costs, changes are accepted. The costs and benefits are calculated for longer period. All types of costs and all types of benefits are calculated for the purpose. Sources of Resistance The sources of resistance indicate the basic causes of existence carried by some people. The sources of resistance are individual and group. Individual Resistance: The individual resistances are raised by employees individually. The resistance lies in the basic human characteristics. The perception, learning and personality are influencing factors of resistance developed by individuals. Individual resistance includes habit, fear of economic loss, fear of uncertainties, inconvenience, security and information. Habit: Habit is a regular function. It gives a moment of enjoyment. Some employees have developed the habit of criticising the management. They enjoy while resisting any move to change. Employees prefer to defy the order of management for their personal satisfaction. Moreover, employees have developed certain routine of life for performing their respective jobs. When changes are made, their routine is bound to change. They do not like to change them. So, they resist if there is any change in organisation. Fear of Economic Loss: People feel that the new changes would bring some loss to their promotional avenues or salary. If computer science has become essential qualification for promotion, existing employees having no knowledge of computer will resist. They are afraid that their juniors having knowledge of computer will be promoted. There are several such examples where employees are afraid of performing routine jobs because of introduction of new technology. If organisational changes have been introduced like salary structure linked with productivity; many employees having low performance will resist. These fears are emotional and unreaL Management should ensure that the new changes would not affect their pay and perks. Employees are developed to perform better under changed situation. Fear of Uncertainties: Changes bring certain uncertainties. Employees are unsure whether the changes would give more responsibilities and less authority. They are doubtful about the behaviour of their supervisors under new conditions. They are not very certain about the autonomy, responsibility and authority. Uncertainties in the minds of employees causes resistance.

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Inconvenience: Employees are put under inconvenience as a result of changes. They are happy to perform the routine job. Changes bring certain complications. Employees resist them for getting satisfaction. Security: Employees are afraid of their job. They are suspicious whether the changes may terminate them. Technology requires high quality workers. Being unskilled workers, they are . doubtful about their continuity. Voluntary retirement should be introduced rather than terminating any employees. Information: The perception blocks changes. Employees do not carry correct information because of perceptual standard. They want to hear only those things what they want to hear. Communication distortion creates certain resistances. Group Resistances: Groups have certain behaviour norms. When changes occur, the behaviour norms are disturbed. There is certain communication which flows among the members of group. Changes bring disturbances to proper flow of communication. Lack of respect, restriction to desirable rewards and intermisunderstanding of members provide resistance to changes. The cohesiveness of group exert more resistance to changes. If the group fails to satisfy the needs of its members, resistance to changes takes place. Members of group resist change because of structure, focus of change, group norms, threat to expertise and threat to established resource allocation and threat to establish power relationship. Structure: Group enjoys an established structure and stability. Hierarchy is maintained. Their relationship is established. There are specific role requirement and skills of performances. When structural changes are required, the established relationship and hierarchy are disturbed. Members resist such changes. Focus of Change: Group or organisation is made up of many subsystems which are interdependent. If there is change at one subsystem, other subsystems are bound to change which creates resistances. To avoid the resistances, all the subsystems are modified to absorb the shock of changes. Technological changes create disturbances in subsystems which invite resistances. Group Norms: Organisation is made up of groups which have their separate identity and norms. The changes bring certain disturbances in the established norms. These disturbances are leading to resistance. Threat to Expertise: Specialised group suspect threat of expertise. Decentralisation is an important structure of developing expertise. It may be disturbed if management wants centralisation. Specialists resist such move because they do not find the opportunity to demonstrate their expertise. Resource Allocations: Members of department require adequate amount for proper functioning of the department. They see the changes as threat to their existing fund-allocation. It creates resistance by group members. Threat to Power: Every managerial cadre has certain power. They enjoy power with the established hierarchy. Any reallocation of power makes established norms disturbed. Snatching power from authority disturbs them. So, they resist the changes. Selecting Alternatives Resisting changes is not desirable. It is obviated. Many other alternatives are sought for development of organisation under changes. After framing change goals, recognising the constrains, diagnosing the problems, finding causes of resistances: the next step is to select alternatives. The basic objectives of changes are improving the performances of organisation,

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developing strong structure, changing the attitudes of employees and making the whole organisation upward. Structure, attitude and technique are modified for upward movement of organisation. Best decision is taken in the light of organisational goals. The constraints and resistances are thoroughly analysed to find various alternatives. Co-operative, effective and cognitive attitude of employees are considered for the purpose. Management develops effective techniques, ideas and attitude. Learning, perception building and training are used for making the employees change oriented. Only training is not sufficient transference, if the training into practice must be assured. People if change oriented can improve the situation and get desired results by organisational changes.

Implementation The organisational changes are implemented at a particular time, location and depth. Appropriateness of these three factors help achieve organisational goals. Time is important because it decides the level of succesf'. Managers decide where to implement the changes. It is stated that change is initiated at th3 ~ap management. But lower management must be aware of the changes and their benefits. The employees are educated for the benefits of changes. The main point for management is to accept the changes with full zeal. Iftop management is slow, other employees go slow. There must be more enthusiasm and interest among,subordinates. Job design andjob enrichment are needed for organisational changes. The depth of intervention decides the success of change. It has been discussed under intervention section of the chapter. Feedback The organisational changes are managed but they are evaluated to find out possibilities of improvement. Change is not static, it is dynamic. Changes involve more functions. Feedback is essential at every stage.

PART- III INTERVENTION DEPTH Intervention depth is the range of activities engaged by employees for implementing changes. The activities involved for the purpose are diagnostic activities, team building activities, intergroup activities, learning activities, socio-technical system, organisational grid activities, life and career planning activities, conflict minimisation activities and so on. These intervention depth or range of activities are used category wise or target group-wise. The intervention activities are applied for more than one target group. The intervention is evaluated to find out its effectiveness. It requires organisational effectiveness, conflict resolutions, leadership development and motivation. The totality of intervention is discussed under individual intervention, group intervention, inter-group intervention and organisational intervention. Individual Intervention Organisational changes are effective only ifthe individual employee's attitude are changed accordingly. They are given training, enrolled into career planning programmes, behaviour modelling and other intervention. These individual intervention techniques are provided by the organisation or by specialised institutions and management universities. Individual intervention includes sensitive training, modelling and job stress management. Sensitive Training: Individual employees are trained emotionally. Psychological behaviour is developed through sensibility instituted in the minds and hearts of employees. Sensitivity induces anxiety, brings mental state to that level, helps introspection and provides development

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through self evaluation and attempts to individual self reforms. Sensitive training brings people in the same conditions in which they should realise their weaknesses and scope of self development. They are brought in the field to understand the real feedback about their work by community. Society is the field or laboratory where his efficiency is tested. An employee is put in such a place and position where he can understand what other people think about himself. If he finds that other people consider himself very backward; he gets an impetus to develop himself. He must be sensible about his work. He should employ feedback technique from people's side. Employees should put themselves in the laboratory of people to find out their appraisal. They would be sensitive about these findings. Tension will increase. If they improve, they get satisfaction and in case they are unable to improve, they develop anxiety and stress which are solved by management. Self awareness and insight about themselves are increased. They understand the impact of their behaviour. They try to improve themselves through the social interaction and job performances. The diagnostic skills are improved under interpersonal and intergroup situations. They develop the sensitivity of transferring the learning. Individual employees are developed under sensitivity training. Process ofSensitivity Training: Different types of people from different organisations meet together at a training place. There are emotional discharges to make all trainees equally developed. The work culture and humanistic approaches are realised because of different types of people coming together. They exchange their views and experiences. They enjoy living together for certain period. Management Development Institutes in India organise such types of training. They put the trainees in a comprehensive programme of twenty-four hours for three-four weeks. The trainees follow the programme and work enthusiastically. From the stage of enjoying breakfasts in the morning to the time of entertaining cultural programmes in the evening, the trainees are put in enjoying atmosphere where they develop sensitivity to their respective work culture. They learn more about personal treatment, psychological approach, beliefs, philosophy, way of life and humanistic approach to every problem. Employees develop the work culture. They learn to behave with others in such a way as they like to be behaved by others. Initiators or trainers known as change agents encourage the employees to analyse their own contribution and find out the scope of improvement. Increasing self-awareness is aimed under this type of training. The training itself is not the final objective. It is required to find out how much training has benefited the people. Scientific standards are developed to evaluate sensitive training effectiveness. It increases openness, better self and interpersonal understanding. The transfer oflearning, driving training is assured by management so that input at one place brings effective changes at other places. Model Training: Individual intervention requires model training wherein employees' attitude, values and life styles are changed to make organisational changes more effective. It is expected that employees learn skills which are applied and reinforced on job. Changes are brought in their behaviour. Improved performance and changed activities are seen in the employees. Video tapes of actual performance screened for performance evaluation. Modelling, role playing, social reinforcement and transfer of learning are the major factors of model training. Role modelling is essential for sensitive-training. Stimulated performance evaluation session is organised. The functions are replayed and reviewed for developing and revealing the point of improvement. Social reinforcement is used to make employees more efficient. Transfer of training through continued practice and involvement makes employees totally changed for meeting the organisational challenges of changes.

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Stress Management: Employees get stress while performing their jobs because of physiological and psychological pressures on them. Medical sciences have also devoted on diagnosis of stress. Organisational and environmental conditions have produced stress. Individuals take the problems differently causing different levels of stress. The intensity and extent of the individual stress are different for different people. They feel varied degrees of impact on employees. Stress management is studied under stress, stressors, stress moderators and stress reducers. Stress: Stress is physiological and psychological. It is associated with job, life, anxiety and frustration. Job stress is associated with organisation. Life stress is concerned with individual employees. Frustration is obstruction with goal and performances. There are rules and procedures which obstruct employees' technical performance. Consequently frustration occurs. Anxiety is the feeling of not having appropriate response. Stressors: Employees face stress because of environmental, organisational and individual factors which are known as stressors. Environmental factors indicate general environmental situation which influence on the organisation and individuals. Trade cycle, political situation and social set up are main factors of environment. Cultural environment influences the indivi~.ual and organisation. Similar to environment, organisational factors influence stress level. They cause, enhance and reduce the stress. Ineffective organisational level induces unsatisfactory performances. Rules, procedures, control systems cause stress. Group units causes -problems, conflicts, cohesiveness and so on. Dysfunctional factors create stress. Individual factors such as family problems also cause stress. Family problems such as illness, medical, household property, transfer and disruption of life have impact on behaviour. Stress Moderators: Stress moderators include self esteem and self confidence. They do not cause much of stress. The stressors are moderated by self-satisfaction approach. The impact of stressors on stress is minimised by self-controlling factor. In India, many people are morally and philosophically upgraded. They outdo the impact of stressors. The main impact of stressors are decreased performance, increased absenteeism and dissatisfaction. Stress Reducers: People assigned the job of stress management reveals the causes of stress and suggest the measures thereof. They resort to stress reduction programme. Personal habits also cause stress. For example, smoking, drinking, heredity etc. cause stress. People using relaxation, meditation and attending social and religious functions are less prone to stress. Organisations pay special attention to stress reduction through elation provision, leave, travel, entertainment, hygienic conditions at work and employee participation programmes. The promotion avenues, career advancement and reducing dysfunctional consequences and other factors are stress reducers. People and programmes are given more importance to reduce stresses. Group Intervention Group intervention is applied for making organisational changes successful. It is necessary to work together. Group intervention involves team building and feedback research. Team Building: Team involves organising group members who have common relationships. It has diagnostic meeting, family building, role analysis and evaluation. Diagnostic Meeting: Group members organise a meeting to diagnose the problems of changes. Open discussions and critical assessment are made to find out the real causes which hinder group performance at the introduction of changes. It decides corrective actions, task accomplishment and intergroup relationship. The members, supervisor, experts and other related

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persons sit together They decide openly. Small groups are formed for open and frank discussion. They share the ideas of main group which reveals major problem areas, planning, resource crunch and inefficiency of employees. They develop training programmes suitable to improve the performance, skills of employees under changed situation. Such meetings are called diagnostic meetings as they are organised for problem identification and action planning for solving the problems arising out of organisational changes.

Family Building: The concept of family is used in team building. Members are treated as family members who have certain privileges and problems. They mutually agree to solve the problems. The senior member works as a family head who cares of the development of all the team members. The conflicts are mutually understood and solved by them. The interests of group members are subserved by each team known as family. Some resourceful persons or consultants may be invited to solve their problems. The total organisational set up is divided into various groups and departments which are again subdivided into teams or families based on similar features. The family members discuss their respective problems and diagnose them through lectures, role playing and case discussions. All problems whether related to larger group or smaller group are discussed frankly to arrive at appropriate solutions. Employees are asked to discuss like a manager to provide the suggestions. Role Analysis: The role analysis is done for deciding proper intervention by individual employees. Role expectations, role responsibilities and role playing are decided for proper performance under changed situations. The lack of role clarity makes ambiguous approach. If each and every employee is aware of his role; he is expected to perform with the given responsibility and authority, group performance will be effective and successful. Management can easily understand the roles to be performed by employees as the roles are specifically laid down and are openly discussed by the 'group members. Role profile of each employee makes easy to expect what they will perform and how much time and money would be required for proper performance. The set of activities of employees are prescribed and described to avoid any confusions in their performances. The accountability and evaluation are easily known to award the employee. Evaluation: The success of team building depends on how the employees' performances are evaluated. The success of organisational changes depend on how each team is performing in the organisation. The feedback process is used for evaluation. Feedback techniques: Feedback techniques involve collection of data through questionnaire and in-depth interview. The collected data are analysed, interpreted and corrective actions are revealed for improving the organisational changes. Attitude surveys and feedback information are collected by top management or researchers from all the employees. The data are discussed in a formal meeting of superior and subordinates. They frankly discuss action for corrective measures in the meetings. Constraints identification and diagnostic measures are adopted for selecting appropriate intervention. Feedback technique is adopted continuously to have constant analysis of changing situations and organisational changes needed accordingly. Feedback workshop is an easy task for knowing the changes. Many times feedback is resisted by some employees. It is observed that employees who are poor performers and have relaxation attitude do not co-operate with feedback. But, iffeedback is made as a regular feature of an organisations; its employees will co-operate in later years. Feedback technique of team building must be accepted as an ongoing process of organisation.

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Intergroup Intervention Organisation faces intergroup conflicts at the time of change. Efforts are made to convert the conflicts into intergroup intervention. As has been discussed already that the intervention is an injection to improve the behaviour of people under changed situation. The differences between different departments are easy to resolve. Dysfunctional co~flicts between interdependent and differentiated groups must be avoided to make change effective for organisation. Personal characteristics, situational drawbacks, liking and disliking, personal favours, personal differences and other non-functional activities are dysfunctional. Group cohesiveness and competitiveness are required for success under changes. The intergroup intervention involves several steps. The members of a group discuss the changes and their impacts. The communication channel is improved to understand each other's problems and suggestions. The group interacting with each other meet separately. Their opinions, attitudes and feelings are respected. Their mutual information are exchanged. The priority items of changes are mutually finalised after discussing their individual lists of changes. The list finally prepared contains the solutions and measures useful to all the interdependent groups. The conflicts arising out of changes are resolved at cordial meetings. The main point needed for the purpose is mutual co-operation and cohesiveness. Ifthere are some unresolved points, they are solved by intervention of higher authority. Intergroup intervention requires to finalise the most needed changes required for the organisational success. The interdependent groups must remove dysfunctional conflict for introducing successful intervention The role of union has been accepted for constructive modifications. Their positive attitude for intervention are encouraged by management. Many unions in India, particularly in Tata Group have helped intergorup intervention for changes. Some new organisations in the beginning of twenty-first century have adopted intervention for making organisational changes a great success. Organisational Interventions Organisational changes are made successful through organisational intervention. There are three types of organisational intervention viz., Management by Objectives, managerial grid and quality of work life. Management by Objectives: Changes have certain objectives which are specifically laid down by organisation. The changes are directed accordingly. The Management by Objective (MBO) is also referred as management by results or management by goal. Goal setting involves work planning, review, planning performance evaluation, accountability, group goal setting, individual employee's goal setting and control mechanisms. Management by Objectives or MBO facilitates self control and development. Superior and subordinates jointly identify their common goals, responsibilities and job performances. Objective or goal formulation requires joint participation by superior and subordinate so that they accept the goals as their own and try to achieve them with enthusiasm. It is an intervention that initiates and stimulates better performance. It diagnoses the problems of changes; establishes proper communication between superior and subordinates. Planning is formulated according to the established objectives of changes. Objective clarity, planning, process, resource mobilisation and utilisation, performances and review are given more importance under this technique. Feedback is needed after evaluation to make subordinates aware of the scope of improvement. Behaviour and performances are changed accordingly. The needs of organisation are also analysed to assure that the changes are able to fulfil the needs of the organisation. Management by objective directs long term planning,

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monitors the functions, increases motivation and job clarity and controls the performance and achievements. It helps employees to make them aware of their goals; make enthusiastic efforts and counselling the subordinates. Productivity is increased. Management by objective is a continuous process as cycle of planning, organising; co-ordinating, controlling, planning and reorganising continues throughout the life of the organisation. It has emphasis on personal development, management commitment, diagnostic approach, training and evaluation. The purpose of management by objectives is to increase performance and satisfaction. Longitudinal and latitudinal objectives are formulated to make managers and employees perform effectively. Reinforcement of objectives assure better performances. Flexible and adaptable objectives are used from making organisational changes a great success. Managerial Grid: Managerial grid is used for achieving objectives of organisational changes. Vertical and horizontal cadres are developed for facing organisational challenges for changes. The managerial grid is formed by arranging individuals, groups and structure. It is concerned with production and people. Proper balance is made between these two extremes. It has been discussed in the chapter Of structure. The changes are also taken according to structure determination. The low degree of production and low degree of people is known as improvished change management. It does not suit any organisational change. The low degree of production and high degree of people orientation is known as country club change management. It considers people as important factor for meeting changes. The high degree of production-orientation and low degree of people orientation is task change management. It emphasises onjob performances within the prescribed time, cost and quality. The high degree of production orientation and high degree of people orientation is known as team management wherein changes are viewed as production oriented and people oriented. Self actualisation, autonomy, esteem needs and other factors are considered under this management style. Moderate degree of production orientation and people orientation is middle change management. Grid management has been adopted under six stages to make people understand the benefits of changes. They are open discussion, team building, intergroup development, model development, implementing model and monitoring ideal model in managerial grid theory. Open discussion on the changes makes people understand the problems and more useful suggestions. Group members participate in the discussion freely and frankly. Each group decides its own contribution and evaluates other's contribution. They exchange their findings and openly discuss on their feasibility and utility. The superior and subordinates of each team or group try to implement the best suggestions arrived at after frank discussion. A small team is a welcome step for solving the problems. The intergroup development is assured by involving all the groups. They decide their working relationships and focus on people as well as production orientation. Dysfunctional activities are avoided for managing changes. Top management works on an ideal model. It requires presentation of objective, structure, decision-making mechanisms, reward systems and so on. It suggests change in structure. The model developed by management is evaluated and reviewed by lower level managers. If both the superior and subordinates agree to changes; they implement the model. The model of implementation is decided by them. The grid development of change is monitored towards achieving the goal. Evaluation of grid model is done by all concerned people. Quality of Working Life: Quality of working life is maintained under change management. Personal and career development concerns the changes. Employees are concerned with creativity, social interaction, contribution to viable society and attaining desired goals. They have many facets of needs, ambitious, goals of people and so on. Employees are interested in personal

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development, self esteem, status-satisfaction and family needs. They have to contribute to productivity, loyalty and adaptability. The society is interested in quality product, employment and life status. Changes should be directed towards development of employees, increasing craftsmanship and other factors beneficial to the employees. They want relief from anxiety, maintain safety and security and future employment. Principles of equity and democracy are needed of making changes successful. Work design and redesigns, reward system, group and intergroup relations, managerial practices, environment stance etc. are conferred under changes for getting quality of working life. QClCl

Chapter 20

TECHNOLOGICAL CHANGES AND BEHAVIOUR 1.

2. 3. 4. 5.

TECHNOLOGICAL FEATURES TECHNOLOGY AND OCCUPATION COMPUTERISATION TOTAL QUALITY MANAGEMENT REENGINEERING AND FLEXIBLE SYSTEM

Technology is a powerful force of shaping organisational behaviour. It is a changing process for making behaviour more useful and effective. The chapter discusses technological f('atures, technology ai'ld occupations, quality improvement, reengineering and flexible systems.

TECHNOLOGICAL FEATURES Technological approach is desirable for meeting the challenges of changes. The basic features of technology are specialisation, integration, discontinuity and change. People become highly specialised ifthey learn a particular technology. They develop attitude of specialisation. Technological attitude improves the behaviour of organisation. Too much specialisation breaks the whole system into different parts. If these segments work differently without caring for other", problems will arise. Integration becomes essential for getting the wholesome product. Organisation needs integration behaviour. In absence of integration, behaviour distorts the functions. Integration becomes difficult in high technology. It requires technological approach for integration. Computer has made integration easy. All different activities are controlled and integrated systematically and scientifically. Technological development is not gradual achievement. It is a drastic change in the existing pattern offunctions. It is built of new system applied in organisation. People acquire unexpected changes in the system. It is a revolution. It creates social upheavals. Existing pattern of society is changed under technological development. New work behaviour, new supervision, new reward system and other changes are observed in the changed situation of organisations. The environment related with organisation is also changed as a result of change in technology.

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TECHNOLOGY AND OCCUPATIONS Technology changes the workplace environment and occupational pattern. Workplace is engaged with transfer of technology in the organisation. Inputs are transferred into outputs. Machinery and methods used for production are changed under technology. Labour intensive techniques is substituted by machine intensive technique. Capital is important in the new technology. Industrial revolution is changed by automation and computerisation. Space technology has changed the behaviour pattern of employees. Information explosion has made drastic changes in all the areas of management and also in the different fields of social set up. Cultural, political and social changes have been drastically observed. Computerisation and communication have been prime movers of organisational changes in the twenty-first century. The button and key board culture is observed in the present society. Remote sensing and control has facilitated centralisation. Decentralisation is used with utmost care and benefits with the use of computer has enhanced all technological changes very effectively. Productivity and specialised development have been possible with modern technology. Occupations are modified with advanced technology. It has been observed that professionalism, scientific attitude, white collar workers are updated with productivity and performances. Quality and quantity production has been the outcome of technology. The traditional work process and work habits have been replaced by new work system. Computerisation, reengineering, total quality management and flexible systems have changed the workers' style of functioning. Now, the office workers do not use traditional system of pen, paper and pencil. They use keyboard of computer, screen display and automatic print. Programming and mathematical modules have taken place of office work. Similarly at factory too, the production process is simplified. The risk is avoided. Manual work is replaced by mechanical work. Reengineering increases productivity. Employee's behaviour is changed to suit the increasing demands of organisation and society. If workers do not change their working patterns and behaviour, they are thrown to sheet. They are totally incompetent to perform the jobs. Team spirit, goal setting and motivation have taken different shapes as a result of technology .

Computerisation Computerisation has increased automation for getting work done faster and better. It makes easy for achieving advanced work. It upgrades the skill and intellectual requirements. Information technology, high level skills and robotics have changed the work environment and a sea change has taken place under computerisation.

Information Technology: Information technology has increased efficiency and productivity of an organisation. Use of computer software and telecommunications have drastically changed our work culture. Production process, marketing approaches, human development, financial analysis and control have taken new turns based on computerisation. Use of computers have facilitated all the individuals to work effectively and efficiently. Inventory control which was very complex has become very easy and economical with the use of computerisation. Tremendous benefits are secured by computerisation in an organisation. Behaviour of employees has changed dramatically. Decision making process has become very easy. It has resulted in fruitful decisions. Electronic mail systems have broken all the records. The need of postal services, mail carriers and other intermediaries have been eliminated. It has reduced cost and time. A manager sitting in his chamber in India can see and talk with his counterparts in USA. The letters drafted in

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America are easily available in India within minutes. Internet has created revolution in information technology. It is expected that the whole world will be one organisation in the twenty-first century. No one is expected to move from one place to another for discussion, decision and dictation. One can perform all his jobs in any part of the world merely by sitting in his office and using latest techniques of computerisation. He can talk face to face, see the place of problems and other related matters on the screen of a computer. This helps avoid unnecessary travel from one place to other. The inputs and outputs will be' fastly moving with the help of computer operated jet planes. After explosion of information technology the next stop is transport explosion. New researches and scientific discovery will facilitate organisational functions with greater speed and economy. High Level Skills: People have acquired high level skills with computerisation. Multiprofessional employees have emerged with the technological explosion. Engineering, management and lower level of functions have been updated and improved with the use of computers. Specialists and polyspecialists are emerging in an organisation, who undertake their respective jobs effectively and efficiently. Application of computer has made what to do and how to do a work. Knowledge society is developed in organisation. It emphasises intellectual work. Employees opting for manual work are also competent. Research and creativity activities are also increased. Internal and positive motivation takes place in an organisation. Robotics: Hard and dangerous functions are performed by robotics. Previously, people performed very tedious jobs in the absence technical development. Robotics is a combination of mechanical and computer engineering. It is a device to humanise mechanical performance. The shape and body of the machine is similar to human body. It performs like a human being. The invention of robot has made it easy to perform a variety of tasks, the twenty-first century will witness the robot generation. Many unfamiliar and impossible jobs will be performed by it. The technological development has improved the behaviour of employees in and out of the organisation. They perform the job technically in a refined form. They demonstrate, out of factory or office, as well knowledgeable persons. The performance position makes them take pride of their technology. They are satisfied always. However, many low skilled and less educated persons take technological development as reverse of development. They develop technophobia i.e. psychological fear oftechnology. Many employees find it difficult to cope with development. They are afraid of loosing their jobs. So, they develop stress, anxiety and face insecurity due to new technology. TOTAL QUALITY MANAGEMENT Total Quality Management (TQM) is a philosophy of management for satisfaction of the customer and total achievement of the organisation. It is almost 100 per cent error free performance representing high degree of excellence. It is a continuous process improvement. The uniformity of product or service is observed for eliminating variations, giving higher quality and lower costs. Technological development has helped reduction of costs. Total quality management is done through technological changes and continuous search for improvement. Management tries to accelerate the cycle of planning-performance control and replanning, performance and so on. Performances are evaluated constantly to improve quality of all functions. All the branches of management get improvement. Finance, marketing, personnel, production and communication are constantly reviewed and possible imp~'Dvements are introduced. In India, many top business houses have revitalised their business functions. Rationalisation have been introduced. Wa~tage and inefficiencies have been eliminated. Modern techniques are introduced

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to reduce costs and improve quality of work life in all the areas of management. Customer satisfaction in marketing management, financial discipline in finance, human resource development in human resources management, changes in production process in production management and faultless and quick information in communication management have been observed under total quality management. Process improvement is the main theme of TQM.

Reengineering Reengineering is the reconsideration of work method and structure for better performance. It is an improvement approach to change the existing structure and process. Reengineering is deviced for improving quality and productivity. People try to outdate the existing process and adopt new process for performing the functions in a better way. Rethinking and redesigning of the process are done under reengineering. Michael Hammer who coined the word reengineering in management said that reengineering is required for meeting the challenges of changing environment in an organisation and in society. Customers are much more informed and technological development has taken an upward trend. Space researches have revealed various significant finding. Man-made satellites are hovering in space to avoid destruction by comets or their falls. Markets, capital and skilled employees are highly mobile. They can move to the place of high productivity. The hidden opport\alities are no longer monopolised by few. Many highly competent organisations are entering there. In India, the Life Insurance Corporation of India had to reengineer its structure and process to avoid any competition from foreign insurance companies which got intelligent information that insurance market is highly volatile. They discovered the areas where they can operate their business more effectively. Customers demand quality, service arid low cost which are provided through reengineering because if these facilities are not provided by them, they would turn to other producers. Many structure-level are shrunk to avoid cost. Specialisation, functionalisation, span of control and other related activities are redesigned and restructured for increasing efficiencies. Decentralised functions, wider span of control, flat and organic structure are used under reengineering. The basic features of reengineering are new structure, new process, new policy, new technology and competitive dimensions. New Structure The existing structure if found unsuitable for reengineering process is changed to absorb the existing pattern. Flat structure is taking place of tall structure. Organisational structure is becoming more functional than administrative. Organic structure is preferred to mechanic structure. Decentralised functions are adopted to moderate the organisational structure. Authority and responsibility are brought down to lower level. Span of control is broadened. Crossfunctional and self management teams are adopted for the purpose. Horizontal structure is a welcome step of reengineering. New Process Maximising the performance of whole business is target ofreengineering. New processes and work methods are invented for the purpose. Process matrix measure is adopted for evaluation of performance and for increasing individual efficiencies. Effective control is essential. New design of process is developed for effective control mechanism. Traditional bureaucratic process is replaced by democratic system. Value based techniques are adopted for getting distinctive competencies. Reengineering is not merely reorganising structure. It is resetting of process. Costbenefit analysis is made to adopt new processes. Reengineering requires a wider range of skills, actions, interactions and counteractions.

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People Change of attitude in desired for reengineering. People's desire interest and preferences are changed for meeting the organisational challenges. Development of employees is essential factor of reengineering. Contrary to the previous system, people are important part of reengineering. New Policy and Attitudes The existing organisational policies are changed to make them more adaptable. Policies are reformulated to ensure efficiency, better use of resources and dynamic policies for accelerating growth. Recently, capital, labour and technology are changed as per dynamic organisation policy. Internal and external environments are assessed for framing new policies. Human resource development is essential under the changed situation. The traditional bureaucratic control cannot provide adequate return on human and physical resources. Attitudes are changed for meeting newer challenges. New Technology Reengineering involves new technology. Communication, production process, management, methodologies, budgets and other organisational functions are redesigned as per need of changed technology. New opportunities for advancement are revealed to use modern techniques. Computerisation and automation are adopted under changed situations. The new productionprocess is designed to make them ecofriendly. Information technology is changing fast. Reengineering is done for adopting latest information technology. Time and space have shrunk with innovative communication. Competitive Dimension Competition has become the order of the day. Old and obsolete organisation cannot cope with the changing situations. Any organisation cannot remain with traditional attitudes and process. Human and physical resources are exploited for getting higher production. Competition has forced organisation to adopt reengineering. Competition strategy is redesigned as per need of the environment. Organisations have to innovate new techniques for meeting challenges. Reengineering decides value added products. The desires, preferences and paying capacities of customers are considered. Reengineering in India has been adopted by many organisations such as Hallmark, Taco Bell, lTC, HLL, Godrej, Raymonds, Crompton and Greaves etc. Railway has reengineering in full swing by converting metre gauge to broad gauge for uniformity purposes. Electrification is developed for reducing cost of operation. Computerisation of reservation has added new dimension in the areas ofreengineering. It has become model for banking, insurance and other service industry. The computerisation of all banks makes it easy for customers to deposit and withdraw money from any bank situated in any part of the country. Reengineering is invention and not improvement. It is a new technique. It is replacing old techniques. Total Quality Management is a part of reengineering. It is getting momentum in industry and business. Flexible Systems Technology has given push for flexible systems - to adopt to the changing conditions. Specialisation has led to differentiation. Differentiation needs integration which is desired meeting and changing of environment. The changing situations meet diverse needs of customers

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and deliver quality products. Organisation delivers products faster than their competitors. Flexible technologies are used for meeting changing environment. Computer aided design, engineering, mass production at lower cost and other flexibilities are adopted under organisational changes. Economy of scales, flexible manufacturing systems and computerisation have added value to products. Organisation tries to change its product. It has different breed of industrial employees. They need more training and higher skills. Task variety, task authority, task autonomy and task responsibility are systematically developed for making employees environments, sensitive. Structure, process, planning etc. also flexible as per flexible skills of people. New technologies driven by computers adopts to reengineering. Total Quality Management and flexible manufacturing systems are used for increasing productivity. Employees emphasise on motivation and team building under technological development.

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Chapter 21

ORGANISATIONAL CULTURE 1.

2. 3. 4. 5. 6. 7. 8.

CONCEPT OF ORGANISATIONAL CUL'rURE CHARACTERISTICS OF CULTURE TYPES OF CULTURE FUNCTIONS OF CULTURE CREATING AND SUSTAINING CULTURE LEARNING CULTURE MEASURING CULTURE COMMUNICATING CULTURE

Organisational culture is a result of traditional functions of organisation. When the traditions are institutionalised, it becomes culture. It is a complex social system. Organisational culture is the glaring picture of organisational climate. Many times, organisational culture and organisational climate are used interchangeably. Previously, organisational culture was not given so much importance as it is given these days. It is considered as a rational means for coordinating and controlling working group. The structure of any organisation is given life by organisational culture. The vertical structure or horizontal structure, authority relationship and functional process are lifeless without any culture. Healthy culture gives healthy functions of structure and process organisation structure becomes functional with culture. Like individuals, organisation has body and personality. It can remain hale and hearty if the body and mind of organisation is culturally healthy. The healthy culture indicates the friendly, flexible and innovative climate of organisation. Organisational culture is studied under concept, characteristics, types, functions, creating and sustaining, learning, measuring and communicating.

CONCEPT OF ORGANISATIONAL CULTURE Organisational culture is the accumulated tradition of organisational functioning. It is based on certain values, norms and positive attitudes of an organisation. Organisational environment becomes culture if it is used for motivating people to avoid any friction and adopt the valuable tradition of organisation. Organisational culture is intangible and invisible hands which guide the employees of organisation for better performance and more satisfaction. It influences

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everybody and is also influenced by everybody's thinking and action. The success of any organisation depends on its culture as it is invisible power governing the organisation. When thinking and action of employees are institutionalised, organisational culture takes birth. It continues to guide for better achievement. Employees and other people of organisation enjoy the culture which is immortal and invisible. Organisational culture is its strong soul which makes its functions possible and lively. With the accumulated value, it becomes stronger and stronger. The organisational culture is viewed as corporate image by public. It enjoys market, production and financial functions. People are guided to decide what is right or what is wrong if organisational culture is visualised as spirited persons can easily decide what is correct and incorrect. Organisational culture is invisible power which is accumulated through constant efforts of its people. It is belief, common perception and understanding of organisation. This unique feature of organisation makes it distinctive from other organisations. The experiences and manner of performing are instrur~1orLtal to make organisational culture. It is the environment under which an employee deals with its organisation and organisation deals with its employees.

CHARACTERISTICS OF ORGANISATIONAL STRUCTURE Several authors have given different features of organisational culture. They are assumptions and values, sharing of perception, risk taking, management attitudes, employees' inclination, team building, competitiveness and stability. The structure, autonomy and conflict are used for developing culture of organisations. Combination of these factors is organisational culture.

Assumptions and Values Organisational culture includes assumptions and values of organisation. These assumptions are believed and not explicitly noted down. Workers, managers and top management view the organisational culture in the same pattern although they have different views individually. Behavioural pattern depends on certain invisible assumptions and their values.

Sharing of Perception The people of organisation mutually agree on certain perceptions although they have different attitudes and beliefs. Their common belief and attitudes are part of organisational culture. They share common perception ofthe organisation. The degree to which employees are encouraged to be innovative is determinant of organisational culture.

Risk Taking Organisational culture is influenced by the degree of risk and challenges faced by employees. Methods of recruitment and training decide risk taking factor. Internal and external environment have close connection with decision of risk-taking.

Management Attitude Management attitude has direct impact on the behaviour of employees. Subordinates are supported by management for inculcating healthy culture. Management's active interest and support are needed for the purpose. Employees develop feeling of adequate and equitable reward under congenial atmosphere. Management focusing on results provides positive attitudes. Warm feelings of superior make employees happy and production oriented. Managers are expected to exhibit precision and attention to people's problem.

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Employees' Inclination Organisational culture depends on the employees' inclination which are influenced by their perception, learning and personality. If employees take positive views of the management's attitude, people oriented climate is developed. The degree of confidence, tolerance and fellowship of employees decides culture of the organisation. Training and Management Development programmes are a part of culture. Individual's satisfaction is part of good culture. Team Building Management helps team building. Cultural and behavioural characteristics are used for group development. Behaviour in groups helps accumulative nature of culture. More emphasis on team building helps cultural development. Functions of work group, occupational group, functional departments and organisation are part of culture. When they are accumulated in traditional norms, they become guiding culture for future action. Their differences create conflicting culture. Management must be alert to prevent such culture and inculcate effective and positive culture. Competitiveness Competitive atmosphere builds developing culture. Intra-group, inter-group and individual competitiveness demonstrate the wider scope of culture. Their positive attitudes help building of good behaviour. But, negative attitudes create conflicts. Aggressive attitudes destroy culture while supportive attitudes build good culture. Stability The stability in organisational function is referred as a culture. Rules, regulations and official~ms are maintained without favouring any person. Impersonal approach has direct impact on the behaviour of employees. Structure Organisation structure is a part of culture. Bureaucratic and mechanical structure have different culture than the democratic and organic structure. Feeling of one's responsibility and self-development are visible in the organisation's climate. The degree of autonomy has great influence on culture. Culture influences the performances of employees. It is an attractive factor for remaining in the organisation. Employees exercise their creativity with goal freedom. TYPES OF CULTURE There are different types of culture in an organisation. They have distinctive features and contributions. The types of culture are functional culture, descriptive culture, perceptual culture, value culture and cultural levels. Functional Culture The functional culture is related with performance. There are four types of cultures: academy, club, team and fortress. Academy culture is the place for steady development. It emphasises on proper recruitment and training. Club culture believes in membership, loyalty and on commitment. Team culture is composition of talented and experienced persons. They help each other for outstanding performances. Fortress culture is protective culture. Employees protect each other while performing perilous job. These cultural classifications are useful for performing the jobs in an effective manner.

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Descriptive Culture Descriptive culture explains the behaviour of organisation. Employees describe the prevailing culture in an organisation. When people are not satisfied, they talk too much about the organisation. It measures effective performances, reward system, policies and procedures. Employees are always critical about the present set up. Perceptual Culture The feeling of employees are included under perceptual culture. How they view their organisation are included under this culture. Organisation are differentiated with different culture. Common culture, sub-culture and core culture are different types of perceptual cultures. Common culture is the majority culture of organisation. While different groups of employees differ in their cultural approach, they have certain common culture applicable to them. Common culture is also known as dominant culture. Subcultures are identifiable culture of each group. Their common problems, experien:~es and members' attitude are subculture. Core culture is different value culture of employees. Core values are the basic values preserved by employees. Value Culture The value culture is defining the culture based on strength, value-based culture are strong culture and weak culture. Strong cultures are intensely held values and widely shared. Strong cultures have great impact on employee behaviour. Greater is commitment to the values of organisation, stronger is the culture. Strong culture has intensity ofintemal climate. It makes employees high performers, loyal and highly committed. Strong culture is formalised: Rules and regulations are automatically followed. Weak culture has low intensity of value. Employees are careless, less responsible and weak workers. They have low commitment and are less loyal to their jobs They do not develop the spirit of organisational belongingness. Rules are obviated. It is not possible to predict the behaviour under this culture. Consistency is absent in this case.

Level of Culture Culture in organisation is influenced by national culture. The level of culture is departmental, organisational, regional and national. The common perception, attitudes and beliefs at departmental level is departmental culture whereas they are organisational culture at organisation level. National culture is shaping culture of organisation. The Indian philosophy has dominated many organisations in India. But big business houses such as Tatas and Birlas have their own identity. They have distinctive culture apart from the nation. Many times, they correlate their culture at par with the nation's pride and philosophy. They contribute significantly in the economic development of the country. Recently, they have started social development through hospitals, education, rural development, consultancy, engineering and other such activities. On the contrary, the negative aspects of cultural pollution have instigated labour class to perform retrogatively. High culture of organisation inculcates risk taking, innovative and ambitious skills among the employees. Functions of Culture High de~~ee of culture has high influence on performances and behaviour of employees. Shared meaning pr""ides strong culture and creates favourable environment in the organisation. The functions of culturt- qre numerous but some of them are given below:

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1. The organisation is recognised by its culture. Whenever people name an organisation, the culture attached with the organisation is immediately remembered. One organisation is distinctively known with other organisation through their respective culture. 2. Organisational culture makes the boundary beyond which no employees are permitted to go. They automatically adopt the limit known as a cultural limit. 3. The number of organisations are well recognised by the culture. They are given sense of pride and identity by the public. 4. Organisational culture provides the facilities for self-satisfaction. Employees get internal satisfaction with the esteemed culture. People get more satisfaction than their individual interest fulfilled. 5. Culture of an organisation provides its stability. People prefer to continue with the organisation. Employees, customers, financiers and other related persons prefer to remain with the organisation. 6. The social recognition of organisational culture makes the organisation grow and develop in all dimensions. 7. Employees get an opportunity to set standards of performance. They try to achieve the standard. It becomes self-control mechanism which helps organisation grow and flourish. 8. Organisational culture performs as a motivator to guide and control the employees. Satisfied employees get more spirit and enthusiasm for performing their respective jobs. 9. Attitude and behaviour of employees are directed towards goal achievements through sound culture. Disciplined employees make other employees disciplined and wellbehaved. 10. The implicit rules develop under organisational culture make people development oriented. These rules are more effective than explicit rules or written instructions. Conformity of implicit rules make employees developed and self-disciplined. 11. Culture makes positive attitude and behaviour w!lich are again an addition to culture. It refers to virtuous cycle of positive behaviour, i.e., culture leads to good behaviour and good behaviour makes good culture which is instrumental for better behaviour. This cycle goes on. Employees and organisation enjoy the culture. The advantages of organisational culture are reflected ultimately into performance and satisfaction. Image of organisation is increased and people are satisfied with the performances of organisation. People's satisfaction lies in the employees' smile. No one will refute that organisation culture is bad. It is instrumental to production and satisfaction. Strong culture ensures uniform performances. Culture enhances organisational commitment and increases the consistency of employee behaviour. Culture reduces ambiguity. It tells implicitly what to do and how to do. No friction is visible. But there are certain barriers to culture.

Barriers to Culture Organisational culture has increased barrier to change, barrier to diversity and barrier to merger. These barriers are detrimental to development. Barrier to change reduces the chances of development. Environment is dynamic and changes are inevitable. If culture is not changed

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as per changes in environment, the organisational effectiveness is adversely affected. It is essential to understand that ifthe culture is static, the effectiveness is affected. But, the dynamic culture improves the effectivene~s. Culture in real sense is adaptable to the changing situations. It is not dogmatic and adhered to existing tradition. Barrier to diversity refers~to organisation's core culture. The core culture inhibits to accept new changes. If any organisation is based on religion, caste and creed; its core value does not permit new changes. For example, if Muslim employees only are appointed in an organisation functioning in United Arab Emirates, Hindus or Christians are not permitted to join howsoever qualified they may be. Strong culture prohibit new changes. Many a times, technological and social changes bring improvements. Cultural paradoxes are always hindrances to progress. Organisational culture should not be taken at par with the cultural paradox. If any organisation has cultural dogmas; it is not real organisational culture in the true sense. Organisational culture is the culture related to structure, functions, performances, innovations, standards and control. Dynamic culture has scope of adaptability. New changes are incorporated in the organisation. Strong and fundamentalists approach is not the real organisational culture. Cultural compatibility is prohibitive to mergers and acquisitions. Mergers are essential for financial strength. But, it is opposed by employ~es because they would not like to enter to new culture arrived at after acquisitions. Dynamic culture has diverse employees having alternative strengths. Organisational culture should not be based on religion, caste and creed. Organisation is a universal phenomena. So, culture of all types must be included in the organisation. Work culture, sympathy, humanity, love, devotion, dedication and development are related to all culture. So, these components of culture must be inculcated in an organisation. The culture provides internal force and builds employees' morale. People prefer to die rather than change the culture. So, cultural dynamism must be included in the organisation. Cultural status is not static. It is dynamic and must continue as flexible. Culture provides strength to employees, satisfaction to people and support to nation building.

Creating and Sustaining Culture The traditions and way oflife of employees create culture in organisation. The organisation culture is known by its employees' behaviour and attitude. The early traditions are founded on culture in organisation. The vision and functions of organisatio~ are creators of culture. Accumulated traditions and methods of functions are culture. The ideology and customs of organisational functions are organisational culture. Organisation develops progressive ideas and technological development for forming good culture in organisation. The mission and vision of founder members of organisation are bases of creating organisational culture. Hard work, competitive spirit and disciplined way oflife offounders have created disciplined organisational culture for improving performances. The vision of Jamshedji Tata and Ghanshyam Das Birla have created Tata culture and Birla culture respectively in the Tata group of companies and Birla group of companies. They are known by their organisational culture. Sustaining Culture Sustaining and maintaining culture is essential for the organisation to make it permanent sources of energy. The experience gained by predecessors must be continued by subsequent successors. Improvement for betterment may be introduced to the existing culture. Reinforcement oflearning, performance evaluation criteria, reward system, promotion procedures etc. should continue as was present in the visioned mind of its founders. Culture maintained does not mean

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that the organisation should adhere to cultural paradox. Changing environment are absorbed in the dynamic culture of organisation. The top management, selection, training, development programme and socialisation are the important methods of sustaining culture. Top Management: The attitude and aptitude of top management should continue to guide the organisational functions. The culture is maintained by adhering to old values and developmental attitudes. They have certain norms and values when flow in the minds of subordinates. The culture sponsored by top management continues in the employees of the organisation. The latter follow the former. The top management decides and subordinates work. The dress recommended, job design suggested and other factors are taken into account for keeping culture alive. Tata group is perpetuating risk-taking, bold and innovative culture. HMT has dedicated culture of quality and innovative vision as the top management are practising it themselves. Selection: Culture is maintained by proper selection policy. People who are qualified and experienced must be appointed, ignoring those persons who want entry on pull and push basis. If needed persons are appointed, the organisation can maintain its culture. On the contrary, if people are appointed on political support, they are bound to destroy the existing work culture. The vision, mission and policy of a sound organisation must not be bypassed while selecting people for work performance. In India public sector could not maintain the real character of public sector because of defective selection policy. But, those public enterprises which have been given autonomy and have no interference of politicians have worked satisfactorily. Indian Oil and Oil and Natural Gas Commission, Life Insurance Corporation ofIndia and Steel Authority ofIndia have been successful for maintaining some ofthe policies of sound public sector. People who have no core values of organisation must not be appointed because they will destroy the very structural value of organisation. Training and Development Programme: After selection and placement, organisation should adopt training and development programme as per the values of organisation. Employees learn values of organisation. Training and development programme are channelled for enhancing culture of organisation. The video films, practising lectures and problem solutions are the important components of value sustaining process. The instructor should identify the problems of learners so that they can be directed towards cultural value of the organisation. The traits and qualities of employees are used for instrumenting the employees the values of organisation. Socialisation: The employees are indoctrinated in the organisation's culture through adaptation process which is called socialisation. The new employees are put in the culture of organisation through on the job and sensitive training. Intensive training programme is instituted to'make new employees accustomed with the values of organisation including reforming all the activities from the early morning to sleeping time. The whole day is systematically scheduled to make employees learn all the culture of organisation. The organisational culture is maintained not only in the form of work functions but also in dining, dressing and developmental activities. New graduates can easily learn all the cultural values of organisation through intensive training programme. Employees prove their commitment with cultural values of organisation after getting the intensive training programme. The newly appointed employees remains in good standing. They learn the pivotal role or basic values of organisation after training are termed as 'non-conformists.' They become rebels ifthey have values contrary to the organisational values. These employees are put again under socialisation process as indicated above. They are further brought to steep socialisation process i.e., prearrival stage, encounter stage and metamorphosis stage.

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Prearrival Stage: ~ newly appointed employees' values, attitudes and personality are assessed for deriving them towards organisational culture. Their weaknesses are revealed to paste them with organisational values. Modification and smoothening of their existing values are made by management towards the culture of the organisation. Employees might have knowledge of socialisation of business functions. It is revealed how their socialisation have not moved towards organisational values. The diagnosis reveals the possibilities of complete socialisation of organisation-culture. Their firmness, rigidity, unfaithfulness and other antiattitudes are smoothen to make their uses in different functions of required values. Psychologists and behaviourists are invited to smoothen their individual values towards organisational values. Encounter Stage: The employees after entering into business functions find the activities against their attitude and expectations. The expectation of employees mayor may not be equal to the reality of business policy, procedures and fellow workers' attitudes. If expectations are not very far from the reality in organisation, they reinforce the values of organisation. Smoothening process is used in this case. When expectation are far from the reality, the employees are required to replace their existing style with the organisational policy. The employees should try to adopt the values of organisational culture. If they fail to adopt, they are put ip adverse conditions. They should not be permitted to destroy the existing culture of organisation. They are forced to resign if they do not perform as per norms and values of organisation even after intensive training programme. Metamorphosis Stage: Employees are required to change their values which are contrary to those of organisation. The socialisation process is reiJ?tq>duced for emphasising divestiture, stripping away and replacing their own values. Perception learning and personality development programmes are used to change the values of employees to bring them at par with those of the organisation. The group values and norms made sacred objectives which should be achieved by individuals. Role models are used to train and encourage the employees. Monitoring and selfexercise programmes are held to make people organisation minded. Serial socialisation is needed for change of employees values for organisation. Learning Culture Culture is learned in the forms of instructions, stories, rituals, language and material symbols. They are given from the childhood to the rest of the life. Instructions Parents are the basic elements of culture. Children are given certain instructions which are followed by them. The newly appointed employees are like newly born children of organisation. They are given certain instructions which are followed by them. Training is first stage of culture. If the instructions include way oflife and ancient systems, people dl'e developed . accordingly. Stories Parents and peers tell stories of outstanding personalities. Children try to transfer them in practice. Organisation has also started telling stories of successful businessmen who had gone from lower rung oflife to the highest place in the society. Culture is administered in childhood through story telling or drama observation. Mahatma Gandhi was influenced by the drama played on the life ofSatyavadi Harischandra for practicing truth and non-violence in every field oflife. Similarly many a great man was influenced by the stories. Great Shivaji was influenced by his mother Jijabai who was a telling stories of Lord Rama and Emperor Vikramaditya. Stories told by seniors have great influence on culture-building.

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Rituals Rituals are important factors for inculcating culture. Birth celebration, name-giving, marriage functions and giving birth of children are living examples of culture formation. Similarly, the formation of organisation performs several rituals or formalities. The appointment of top management, middle management and employees are various stages which determine the cultural values. Top management having high vision and mission make high practicable rituals of organisation. Employees selected after long selection process such as screening test, written test, group discussion, attitude measurement and interview are important rituals to form organisational culture. Apart from these procedures, appointment made directly by political recommendations may distort the culture. Language Organisational culture has language base. Language carries culture as the literature is full of cultural facts and fictions. Culture and sub-culture are developed with organisation. Code number is generally used to denote the culture. Accession number, relational operator and other code numbers are instrumental for cultural formation. Organisation has its own behavioural terminology expressed in different forms of language. Material Symbols Organisation learns culture through behavioural pattern of employees. Openness and equality make useful culture for development. Employees' behaviour in private life also influences the culture of organisation. Thus jogging, swimming, yoga, dance and drama have important bearings on the learning of culture in organisation. The facilities enjoyed by top management have great influence on organisational culture. Authoritative, participative, individualistic, socialistic and other kinds of behaviour influence the behaviour of employees that is part of organisational culture. Measuring Culture Culture is not easy to measure, but the important factors influencing culture are measured. The symbols, rituals and functions of organisation are examined to measure culture. Research techniques such as sampling, questionnaire, interviews and interpretations are used for measuring the values and attitudes of employees. The perceptions of employees are directly required to understand their beliefs and attitudes towards organisational culture. The employees' expected culture are explored by asking direct questions. Comparison of actual culture with the expected culture reveals the level of satisfaction of employees with the existing culture. Researches reveal the possibilities ofimprovement in the existing culture. Likert's methods and other qualitative measurements techniques are used to evaluate the level of culture on different parameters. Communicating Culture The culture measured is communicated to employees. The contribution and drawbacks of the culture are assessed properly to find out the scope of improvement in the cultural development. Work environment is also measured to find out the level of satisfaction of employees. It is told to employees how far socialisation has improved their behaviour. Socialisation process is adopted to create congenial environment in the organisation. The traditional approaches are replaced by modern approach of work culture and participative decision-making process. Individual culture is smoothened to make socialisation. The interaction between socialisation and individualisation is revealed in the form of conformity, isolation,

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creativeness and rebellion. If individual culture is visible in socialisation, it is conformity. If individual culture and socialisation are at low level, it is isolation. High individual culture. and low socialisation makes rebellion. High individualisation and high socialisation have creative culture. The impact of culture on leadership, motivation, communication, decision-making process and so on are properly evaluated and communicated to employees to make them more production-oriented. QQQ

Chapter 22

CORPORATE DEVELOPMENT 1. 2. 3. 4.

5.

CORPORATE DEVELOPMEN7' - A PERSPECTIVE CORPORATE DEVELOPMENT PROCESS CORPORATE INTERVENTION TRADITIONAL APPROACH: (1) LABORATORY TRAINING (II) SENSITIVITY TRAINING (III) GRID TRAINING (IV) SURVEY FEEDBACK MODERN APPROACH: (1) PROCESS CONSULTATION (II) THIRD PARTY PEACMAKING (111) TEAM BUILDING (IV) TRANSACTIONAL ANALYSIS

Corporate development includes multiple causes and process of development. From traditional approaches to modern techniques, many changes have taken place for corporate development. Planned changes are instrumental for development. Many problems and conflicts are resolved for accelerating development process. Corporate development is an intervention strategy to bring about changes of beliefs, attitudes, structures, process and interaction. It requires proper environment study, support training and reward system. It is based on humanistic, democratic values to seek corporate improvement and employees' well being. Corporate development is studied under corporate development perspective, corporate development process, corporate development intervention, traditional approach and modern approach. CORPORATE DEVELOPMENT - A PERSPECTIVE

Organisational behaviour has already emphasised on corporate development. Moreover, there are some important features of developing corporate sector. They are discussed in this section. Corporate development depends on organisational values. These values are incorporated

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for employees and corporate growth, for participative process and collaboration of different functional features. The corporate values include respect for people, trust and support, power equalisation, open discussion and participation. Individuals are developed as responsible, conscientious and respectful. Management and employees must ~evelop trust and support respectively for corporate's development. The equitable power vested with hierarchy is a welcome step. Openness of the problems and solutions removes the misunderstanding. People get an opportunity to demonstrate their qualification. Participative management brings changes in the working process for betterment of corporate philosophy. Corporate development has started with emergence of applied behavioural science, social psychology, training and feedback. Laboratory training was considered important instrument for development. It helps rpanagement to meet the challenges of changes. It makes people happier and more satisfied. Corporate policies are made flexible. Corporate development attempts to develop the whole organisation through open communication by increasing adequacy and accuracy of information. The main features of corporate development are systems orientation, humanistic value, action research and intervention.

System Orientation Corporate development is comprehensive programme of developing all the components of corporation. The whole organisation is known as a system agglomeration. The system is divided into subsystems. Interactions of all the subsystems are channelised for better performances of organisation. The working relationships and personal interactions are formalised to make corporate development easy and smooth. System is developed in such a way that effective performances are possible by each subsystem of the corporation. System management is basic tenet of corporate developm$t. All the systems of organisation viz., marketing, finance, personnel, production and communication are properly interlinked to make effective use of resources. The subsystems 'of each system are also interliked for better performances. For example, the subsystems viz., advertising, personal selling, publicity and public relations are closely interlinked with each other in marketing system. Humanistic Approach Corporate development includes human values. It is an established rule that the employees must be treated on development principles. Traditionally employees were considered as management component which were managed as physical resources. But, it is realised that employees are not to be managed but they have to be developed for monitoring themselves to manage the physical resources. Employees are to be developed and not to be considered as inactive factor. Activitising employees is essential for corporate development. Employee development is possible through open communication, interpersonal relationship, empowerment, constructive discussion. Value based approach is adopted to ensure effective performance. Employees' development is introduced by change agent whose functions are to stimulate, to facilitate and to co-ordinate development functions. Change agent is catalyst for making all the developmental factors. Change agent is catalyst for making all the developmental factors active and instrumental for corporate development. Change agents are development specialists. They analyse the existing systems and evolve suitable methodology for development. They have diverse experiences for making suitable changes in the organisation. The corporate development is the basic objective of change agents although they are suspected by employees who are afraid of job changes and loosing of their jobs.

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Action Research Action research is needed for corporate development. It reveals the problems, identifies them and finds their solution. The real problems are brought to surface. Data based system is action research. It reveals learning how to learn. It improves problem solving skills. Feedback is needed to encourage adoption of self correcting action. Feedback provides platform for understanding the system, subsystems group and teams. Their separate functions are coordinated by the management. Their relationship and work experiences are used for. improvement. The experiences obtained in each group and subgroups are used for corporate development. The application of theory in practice is important function for advancement. Freezing, unfreezing and refreezing processes are adopted to make new changes applicable in the society. Intervention Intervention is effective change in structure and process. Individual, interpersonal, group intergroup and organisational interventions are adopted to make corporate development effective. Intervention involves career planning, team building, job designing and redesigning. Corporate development involves application of behavioural science in different fields of corporation. Long-range planning, continuing efforts and co-operative efforts are needed for developing the organisation. People, structure, technology and environment are intervened for better performances. The feedback of performances of each employee must be received by them for effective intervention. Corporate Development Process Corporate development process takes a long time. The process is designed, reviewed and implemented. The problems, diagnosis and suggestions are designed under corporate development. The outcomes are evaluated and the momentum offunctionings are accelerated. The process of corporate development involves initial diagnosis, data collection, data feedback and confrontation, action planning and problem solving, team building, intergroup development, evaluation and follow-up. The problems of corporation are diagnosed by experts in the beginning of corporate development process. The corporate development approaches are designed accordingly. The management tries to get support of all the people connected with the organisation. The diagnosis is done through procuring necessary information and data. Questionnaire and interview techniques are observed for obtaining the information of organisational culture and behavioural problems. The people interested in making suggestions of corporate development meet frequently with the employees to find out the job effectiveness, factors influencing job effectiveness, conditions inhibiting effectiveness and possibilities of changes. The action researchers interested in corporate development are known work groups, initiator or experts. The areas of disagreement are explored by the work group. These areas need change. The pros and cons of changes are analysed for establishing priorities for changes. The work groups recommend certain changes in the existing pattern ofjob structure and process. The suggestions are thoroughly analysed and specific planning of changes are made. The persons who will be responsible for initiating changes for development are decided after thorough screening of their beliefs and attitudes. The initiators will select members of group, who will execute the plans of changes. Periodic meetings of group are held to examine how they work for changes of development. The employees are giv'm chances of open discussion. They can confront policy to express their resentment. The causes of resentment are diagnosed immediately to find out appropriate and acceptable suggestions. Team building is encouraged.

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Intergroup development is feasible through forming small groups. There may be larger group comprising several teams. The corporate development programmes are reviewed before implementation. During implementation, the friction and confrontation are noted down for discussion in group meeting. The problems are solved for managing people. Evaluation of corporate development results is made by the experts. They suggest improvements and methods of follow-up.

INTERVENTIONS IN CORPORATE DEVELOPMENT Corporate development through interventions is successfully realised when environment changes. The environment changes provide opportunity for development. Interventions include sensitive training, survey feedback, process consultation, team building and intergroup development. Sensitive Training Training seeking change of behaviour through interaction is sensitive training. Members are brought to free and frank discussion where they discuss their own weaknesses and problems. Their weaknesses and problems are solved through interactive processes involving behavioural experts. The members learn proper behaviour through participation under the guidance of some expert behaviourists. They express their beliefs, ideas and attitudes with the experts who try to modify them through practical orientation. The practical training is imparted to them by these unbiased experts. Employees are provided awareness with their own behaviour and perception. Greater sensitivity is used to understand their attitudes. Employees are put under training to understand better about themselves and about others. They develop observation and listening skills, greater openness, increased tolerance and conflict resolution style. The employee understands others; how others perceive him. The self perception is developed through understanding himself and perceiving how other perceive him. It has more realistic selfperception, group cohesiveness. Sensitive training provides the wisdom to understand about himself, others and organisation. Survey Feedback The organisation provides opportunities to employees to understand about themselves through feedback provided by others. The employees should be ready to accept the feedback. The feedback about their behaviour attitudes, perception are given to the employees by other people. The discrepancies among member perceptions are revealed, discussed and remedied. Questionnaire and sampling devices are used for getting feedback. Similarly employees are requested to suggest or provide feedback about some policies and procedures. Communication and co-ordination are exercised for the purpose. Important issues are sought from them. Satisfaction level of employees with organisation, job, peers and seers are inquired. Questionnaires are prepared to ask information from the employees about their attitude, beliefs, values, family problems and other related factors. These information and data are important clues to identify problems and diagnosing real solutions. The data are openly discussed without criticising anybody. Frank and fair discussion makes it easy to understand problems and fmding solutions thereof. Process Consultations The second intervention has been analysed under feedback. The process consultation is the third intervention. The process consultation is made to perceive, understand and act upon process events. The process includes work flow, informal relationships and formal communication

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channels. The effectiveness of process is analysed by breaking it into different steps and stages. The employee understands the process and gets insight into what is going on around him, within him and between him and others. The expert helping process consultation guides the employees to solve the problems of process. The expert and employees jointly diagnose the problems of process and find out concrete suggestions. They have greater understanding of process. They try to reduce the resistances in the process actions. They uncover the technical knowledge of the process and help locate the problem areas. They try to find out the solutions ofthe problem centre.

PART - II TEAM BUILDING Team building is essential intervention for corporate development. It is high interacting group activities to increase trust and openness among members. Intergroup activities are interdependent. Team is command group which decides interdependence of functions. Each member in the team has his different functions which are co-ordinated by team leader. The interdependence of activities of each member is specifically decided. The goal setting, interpersonal relations, role analysis, responsibilities and team process are decided for making team more effective. The basic fervour of team is trust, openness and enthusiasm. The team's performance is evaluated by members themselves. They rethink of structure and their process to achieve team goal. They identify potential problem areas, impinge on free interchange of views and share their findings. The member's role is identified, clarified and implemented. The specific job of each team member is notified to have eff~ctive performance. Intergroup Development Corporate development seeks intrergroup development. The attitudes, perception and beliefs are changed for effective intergroup development. The stereotype functionings are changed for coordinated efforts, problem solving and interchanged activities. The similarities and differences are discussed. Differences are clearly articulated. Disparities are revealed and corrections are made to have effective intergroup development. Group identifies the integration phase which improves relations between groups. Conflicting groups are diagnosed and alternative actions are used for improving relations. Intergroup development is more effective intervention to make corporate development a success. TRADITIONAL APPROACH Corporate development has emerged from applied behavioural science and social psychology. Technological change and social changes are managed for corporate development. People have different sets of values which are used for managing people in an organisation. Values include honesty, integrity, openness and humanistic thinking. Expertise, personal style and convictions are legitimate factor for corporate development. Employees are changed through laboratory training, sensitive training, grid training and survey feedback for adopting development approach. Laboratory Training Laboratory training provides situations in which the trainees themselves experience through their own interactions the methods of development and behaviour in the organisation. The employees experiment on themselves how to improve and fit themselves for growth and

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development of the organisation. The laboratory method of training includes role playing, game playing, modelling, encountering and simulations. Role Playing: Role playing is spontaneous acting of a-realistic situation. It grows out of the situation in the form of trainees. Other trainees are considered as observers' and critics. Role playing is substitute for experience. It emphasises on the techniques of observation, participation and discussion. Employees try to broaden their experience by trying different approaches. Role playing is continuous process using different approaches for development. Role playing includes competent trainers who guide the employees for improvement. Game Playing: Game playing is group exercise of sequential decision making. Workers perform the job in groups namely two group - one is pro and other is anti-statement. There may be two or more groups who exercise their decision-making p:rocess with competitive start. The decisions of each group is processed and again put for discussion. The discussion on the processed decisions is systematically done in a playful mood. Members of each group taking part in a spirit of sportsmanship. Decision is considered as a game where there is no tension and criticism. All people are happily participating in the decision-making process with great spirit and zeal. When people participate in game decision making process, they forget about the behavioural norms and standard. They become so much enthusiastic that they do not have any memory of prestige and position. This is good environment. But when they cross the limits of decorum, they are reminded of proper behaviou'r. Thus, they learn how to behave even in highly charged atmosphere. Modelling: Laboratory training has modelling process. It is based on social learning process of observation and imitation. It develops the skills of handling encountered behaviour. It helps learn the performing behaviour, dealing with tardy employee and recognising the outstanding performer. Modelling relies upon demonstration, explanation, practice and feedback. Mter performing the model of decision-making, the employee reviews his model which was videotaped during the modelling time. New approach is suggested to improve the drawbacks of first modelling. The new approach of modelling is again videotaped and reviewed for arriving at the best possible model. Behaviour modelling requires positive attitudes. If employees had negative or mental attitudes; they should be changed before adopting behaviour modelling. New attitudes and new values help arrive at the best possible behaviour. The behaviour modelling is repeated several times howsoever the best behaviour may be in the organisation. Before speaking about the behaviour model, new prinCIples and techniques are demonstrated for behaviour improvement. The experiences ofmodellinr r€