Q.1 What is Leadership?

Explain Functions, Style, Traits and

Theories of Leadership?
Meaning- Leadership is an important element of the directing function of
management. Wherever, there is an organized group of people working towards a
common goal, some type of leadership becomes essential. “The power of
leadership is the power of integrating. The leader stimulates what is best in us he
unites and concentrates what we feel only gropingly and shatteringly. He is a
person who gives form to the uncoarctate energy in every man. The person who
influences me most is not he who does great Deeds, but he who makes me feel
that I can do great deeds.” Marry Parker Follet.
Defination- Leadership has been defined in various ways. Stogdill has rightly
remarked that there are almost as many definitions of leadership as there are
people who have tried to define it.

1. Koontz and O’Donnell, Leadership is the ability of a manager to induce

subordinates to work with confidence and zeal.

2. Dubin, R.Leadership is the exercise of authority and making of decisions.

Function of Leadership-
Following are the important functions of a leader:
1. Setting Goals:
A leader is expected to perform creative function of laying out goals and policies
to persuade the subordinates to work with zeal and confidence.

2. Organizing:
The second function of a leader is to create and shape the organization on scientific
lines by assigning roles appropriate to individual abilities with the view to make its
various components to operate sensitively towards the achievement of enterprise
goals.

3. Initiating Action:
The next function of a leader is to take the initiative in all matters of interest to the
group. He should not depend upon others for decision and judgment. He should
float new ideas and his decisions should reflect original thinking.

4. Co-Ordination:
A leader has to reconcile the interests of the individual members of the group with
that of the organization. He has to ensure voluntary co-operation from the group in
realizing the common objectives.
5. Direction and Motivation:
It is the primary function of a leader to guide and direct his group and motivate
people to do their best in the achievement of desired goals, he should build up
confidence and zeal in the work group.

6. Link between Management and Workers:

A leader works as a necessary link between the management and the workers. He
interprets the policies and programmes of the management to his subordinates and
represents the subordinates’ interests before the management. He can prove
effective only when he can act as the true guardian of the interests of his
subordinates.
Styles fo Leadership -
Leadership style is the manner and approach of providing direction, implementing
plans, and motivating people. As seen by the employees, it includes the total
pattern of explicit and implicit actions performed by their leader (Newstrom,
Davis, 1993).

The first major study of leadership styles was performed in 1939 by Kurt Lewin
who led a group of researchers to identify different styles of leadership (Lewin,
Lippit, White, 1939). This early study has remained quite influential as it
established the three major leadership styles: (U.S. Army, 1973):

 authoritarian or autocratic - the leader tells his or her employees what to

do and how to do it, without getting their advice
 participative or democratic - the leader includes one or more employees in
the decision making process, but the leader normally maintains the final
decision making authority
 delegative or laissez-fair (free-rein) - the leader allows the employees to
make the decisions, however, the leader is still responsible for the decisions
that are made

This style is used when leaders tell their employees what they want done and how
they want it accomplished, without getting the advice of their followers. Some of
the appropriate conditions to use this style is when you have all the information to
solve the problem, you are short on time, and/or your employees are well
motivated.

Some people tend to think of this style as a vehicle for yelling, using demeaning
language, and leading by threats. This is not the authoritarian style, rather it is an
abusive, unprofessional style called “bossing people around.” It has absolutely no
place in a leader's repertoire.
List of Effective Leadership Traits-
A common misconception is that individuals are gifted with leadership skills.
However, the truth is that leadership traits can be acquired with time and practice.
Below are seven traits of an effective leader:

1. Effective Communicators
Leaders are excellent communicators and are able to clearly and concisely explain
problems and solutions. Leaders know when to talk and when to listen. In addition,
leaders are able to communicate on several levels: one-to-one, via phone, email,
etc.

2. Accountable and Responsible

Leaders are accountable and responsible – holding themselves accountable and
taking responsibility for any mistakes. Leaders support and encourage individuality
while abiding by and understanding the organizational structure, rules, and policies
that need to be followed.

3. Long-term Thinkers
Leaders are visionaries – able to plan or think about the future through concrete
and quantifiable goals. Leaders are confident, understand the need for continuous
change, and are able to try new approaches to improve current processes.

4. Self-motivated
Leaders are self-motivated and are able to keep going and pursue goals despite
setbacks. Leaders strive to become better through passion and pride. In addition,
leaders try their best to exceed expectations in everything they do.

5. Confident
Leaders are confident – able to make tough decisions and lead with authority. By
being confident, leaders are able to reassure employees, establish open
communication, and inspire others.

6. People-oriented
Leaders are team players – able to foster a team culture, involve others in decision-
making, and care about team members. By being people-oriented, leaders are able
to energize and motivate others and make them feel that they make a difference
and are integral to team success.

7. Emotionally Stable
Leaders exercise good control and regulation over their behavior and are able to
tolerate frustration and stress. Leaders are able to cope to changes in the
environment without an intense emotional reaction.
Theories of Leadership –

Leadership makes difference between success and failure, for a long time, thinkers
were trying to see if leadership success could be predicted. They were also trying
to find out as to what makes a leader. Graphalogical, Phrenological and
Demographic, studies were made in these directions. However, these studies had to
be discarded because of many flaws. At best they were guesses.
1.Likert’s Management System
Rensis Likert and his associates studied the patterns and styles of managers for
three decades at the University of Michigan, USA, and identified a four-fold model
of management systems. The model was developed on the basis of a questionnaire
administered to managers in over 200 organizations and research into the
performance characteristics of different types of organizations. The four systems of
management system or the four leadership styles identified by Likert are:
 System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at
the upper echelons of the hierarchy. The superior has no trust and confidence in
subordinates. The decisions are imposed on subordinates and they do not feel free at all
to discuss things about the job with their superior. The teamwork or communication is
very little and the motivation is based on threats.
 System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but
not at the lower levels of the organizational hierarchy. The superior has condescending
confidence and trust in subordinates (master-servant relationship). Here again, the
subordinates do not feel free to discuss things about the job with their superior. The
teamwork or communication is very little and motivation is based on a system of
rewards.

2.Path-Goal Leadership Theory

Robert House of the University of Toronto initially developed this theory, and
House and Mitchell later refined it. It is called ‘path-goal approach’ because its
primary concern is the leaders ‘influence on his followers’ perception of their work
goals, personal goals and paths to achievement of these goals. It is based on the
notion that a leader behaviour motivates and satisfies his followers to such an
extent that it promotes the attainment of the followers’ goals and clears the path to
attainment of these goals. It uses expectancy framework from motivation theory of
Vroom. Leadership, according to this path-goal theory is closely related to
motivation,
on the one hand, and the power, on the other. In essence, the theory attempts to
explain the impact that leader behaviour has on followers’ motivation, satisfaction
and performance. According to the authors of the theory there are four basic or
major styles of leadership behaviour.
3.Transformational Leadership Theory
Creating high-performance workforce has become increasingly important and to do
so business leaders must be able to inspire organizational members to go beyond
their task requirements. As a result, new concepts of leadership have emerged -
transformational leadership being one of them.
Transformational leadership may be found at all levels of the organization: teams,
departments, divisions, and organization as a whole. Such leaders are visionary,
inspiring, daring, risk-takers, and thoughtful thinkers. They have a charismatic
appeal. But charisma alone is insufficient for changing the way an organization
operates. For bringing major changes, transformational leaders must exhibit the
following four factors:
4.Hersey Blanchard Model
According to this model, the leader has to match the leadership style according to
the readiness of subordinates which moves in stage and has a cycle. Therefore, this
theory is also known as the life-cycle theory of leadership.

The theory, developed by Paul Hersey and Kenneth Blanchard, is based on the
’readiness’ level of the people the leader is attempting to influence. Readiness is
the extent to which followers have the ability and willingness to accomplish a
specific task. Ability is the knowledge, experience, and skill that an individual
possesses to do the job and is called job readiness. Willingness is the motivation
and commitment required to accomplish a given task. The style of leadership
depends on the level of readiness of the followers.

The readiness(R) is divided into a continuum of four levels which are:

R1 - low follower readiness - refers to low ability and low willingness of followers i.e. those
who are unable and insecure
R2 - low to moderate follower readiness - refers to low ability and high willingness of
followers i.e. those who are unable but confident
R3 - moderate to high follower readiness - refers to high ability and low willingness of
followers i.e. those who are able but insecure
R4 - high follower readiness - refers to high ability and high willingness of followers i.e.
those who are both able and confident
The direction is provided by the leader at the lower levels of readiness

5.Fiedler’s Contingency Model

Fred E. Fiedler’s contingency theory of leadership effectiveness was based on

studies of a wide range of group effectiveness, and concentrated on the relationship
between leadership and organizational performance. This is one of the earliest
situation-contingent leadership theories given by Fiedler. According to him, if an
organization attempts to achieve group effectiveness through leadership, then there
is a need to assess the leader according to an underlying trait, assess the situation
faced by the leader, and construct a proper match between the two. n order to
assess the attitudes of the leader, Fiedler developed the ‘least preferred co-worker’
(LPC) scale in which the leaders are asked about the person with whom they least
like to work. The scale is a questionnaire consisting of 16 items used to reflect a
leader’s underlying disposition toward others
Q.2 Meaning of Organisation Development? Explain
Charatcteristics,Objectives & OD Interventions…?
Meaning:

Different people have defined OD differently. According to Koonz et. al, “OD is a
systematic integrated and planned approach to improve the effectiveness of the
enterprise. It is designed to solve problems that adversely affect the operational efficiency
at all levels”.
Burke’ has defined OD as “a planned process of change in an organisation’s culture
through the utilization of behavioural science technology, research and theory”.
In the opinion of French and Bell “OD is a systematic approach to organisational
improvement, that applies behavioural science theory and research in order to increase
individual and organisational well-being and effectiveness”.
Now, OD can be defined as a long-term, more encompassing change approach meant to improve
individual as well as organisational well-being in a changed situation”.

Characteristics of OD:

The salient characteristics of OD implied in its definitions are gleaned as follows:

1.OD is a systematic approach to the planned change. It is structured style of diagnosing

organisational problems and opportunities and then applying expertise to them.

2. OD is grounded in solid research and theory. It involves the application of our

knowledge of behavioural science to the challenge that the organisations face.

3. OD recognizes the reciprocal relationship between individuals and organisations. It ac-

knowledges that for organisations to change, individuals must change.

4. OD is goal oriented. It is a process that seeks to improve both individual and

organisational well- being and effectiveness.

5. OD is designed to solve problems.

Objectives of OD-

The main objectives of OD are to:

1. Improve organisational performance as measured by profitability, market share,

innovativeness, etc.

2. Make organisations better adaptive to its environment which always keeps on

changing.
3. Make the members willing face organisational problems and contribute creative
solutions to the organisational problems.

4. Improve internal behaviour patterns such as interpersonal relations, intergroup

relations, level of trust and support among the role players.

5. Understand own self and others, openness and meaningful communication and
involvement in planning for organisational development.

Douglas McGregor, who was working in the Union Carbide, is considered one of the first
behavioural scientists to systematically talking about and advocating for the
implementation of OD for organisational improvement. OD as a subject is relatively new.
Notwithstanding, it is becoming increasingly popular and visible in USA, UK, Japan,
Norway, Sweden and even in India.

OD Interventions -
Organizational Development (OD) Interventions are structured program designed to solve a
problem, thus enabling an organization to achieve the goal. These intervention activities are
designed to improve the organization’s functioning and enable managers and leaders to better
manage their team and organization cultures. These OD interventions are required to address the
issues that an organization might be facing ranging from process, performance, knowledge, skill,
will, technology, appraisal, career development, attrition, top talent retention and the list can
actually be pretty exhaustive.

There are 2 types of interventions that an organization should be able to identify and plan to
implement.

A. Individual : Interventions pertaining to an individual.

B. Group : Interventions pertaining to a group.

A.Indvidual - OD interventions that are targeted toward individuals include skill training, job
redesign,role negotiation and career planning.

1.Sensitivity Training :- Sensitivity training also known as T-Groups or laboratory training or

encounter groups is a method by which small face to face interaction experiences are used to
give people insight into themselves.

2.Skill Training- Skill training refers to increasing the job knowledge,skills and abilities that are
necessary to do a job effectively.Skill training is imparted either in formal classroom setting or
on the job.The need for impoarting skill training is aroused due to changes that organisations
face.

3.Job Redesign- As an OD inervention job redesign alters jobs to improve the fit between
individual skills and the demands of the job.

4.Career Planning- Career planning refers to matching an individuals career aspirations with
the opportuniities available in the organisation.In Other words,it involves activities offered by
the organisation to individuals to identify strengh,weaknesses,specific goals that thery would like
to occupy.
B. Group Interventions –
OD intervention methods aimed at changing the organisation itself or changing the work groups
within the organisation include survey feedback, mangaement by objectives,quality of work
life,team building and process sounsultation.

1.Team building:

Team building activities are designed to enhance the effectiveness and satisfaction of individuals
who work in groups in order to improve the effectiveness of the entire group. It is important to
recognize work group’s problems as early as possible so that solutions can be applied before the
problems can do any damage.

These may be task related problems or personality conflict and personality cult problems within
the group. The group’s work related issues can be streamlined by changing the way things are
done, by redirecting the resources, utilized and by re-examining the work processes.

The interpersonal relationships within the team can be improved by creating the environment
which is open and trustworthy, where members can openly and freely communicate their feelings
and thoughts, where leadership evolves on the basis of respect and functional excellence and
where conflicts are resolved on the basis of mutual understanding.

2. Survey Feedback- Like sensitivity training ,originally influenced by the lewin’s force field
analysis survey feedback has also been one of the popular OD technque used in organisations.
Over the years survey feedback as an OD technique has been most closely associated with the
instuitute for social Research of the University of Michigan as the ISR developed a
comprehensive questionnarire for conducting survey of different aspects of an organisation.

Data Collection Feed Back Action Plan

Survey Feedback Process

3.Management by Objectives- MBO is not essentially on OD technique in its strict

sense like other OD techniques that have been disceussed so far. Rather it is a
motivational tool that helps in improving organisational performance Experiences
demonstate that compared to a general goal. Setting specific goal benefits more both the
employees and the organisation . Cutting costs and cutting costs by 5 per cent are the
examples of general and specific goals respectively.Thus, MBO directly advocates
specific goals and feedback. The MBO process,as depicted in the figure below consists of
three basic steps:

Goal setting Implementation Evaluation

The MBO Process

Q.3 Explain Power…..Meaning,difference, Basis of Power?
Meaning-
Power is a pervasive part of organizational life, used by managers to accomplish goals and
to strengthen their own positions. Managers manipulate power to accomplish goals and
strengthen their own positions. Success or failure in using power depends on
understanding what it is, how and when to use it, and understanding its consequences.
Every interaction and social relationship in an organization can be interpreted as an
exercise of power.Influence is a transaction in which person B is induced by person A to
behave in a certain way. Person A has power over person B to the extent A can get B to do
something that B would otherwise not do.

The difference between power and influence is : Power represents capability while
Influence is the exercise of that capability.Power is not an attribute; it is an aspect of a
relationship

Bases or Sources of Power-

Obtaining, maintaining, and using power are all essential to influencing behavior.
Dependency is the extent to which something person A wants can be effected by person
B determines A's dependence on B; B's power over A depends on how much A needs
what B controls.
1.Legitimate power—refers to the ability to influence others because of the position one
holds in the organization. It is also called authority, or the right to command.
Characteristics of organizational authority are: I. It is invested in a person's position.

ii. It is accepted by subordinates. iii. Authority is used vertically; flows from the top down.

Zone of indifference ‐possessing formal power, or authority, does not mean that all orders
will be followed. Orders will be followed if they are acceptable to the subordinate. They lie
within the zone of indifference. Unacceptable orders, outside the zone of indifference, will
not be readily followed. The zone of indifference may be wider or narrower, depending on
sources of power other than authority. It may be shaped by cultural factors.

2.Reward power—based on a person's ability to reward a follower for compliance. It

occurs when someone possesses a resource that another person wants and will exchange
that resource for certain behavior. It supports legitimate power.

3.Coercive power—the power to punish. It is based on fear. It can come from legitimate. It
can come informally, e.g., fear of rejection by coworkers.

4.Expert power—based on an individual's special and valued expertise. The lower the
substitutability of the expertise, the greater the expert's power.
5.Referent power—based on an individual's charisma (behavioral style).

Legitimate, reward, and coercive power come from the organization; expertise and
referent power reside in the individual and are derived from personal characteristics. One
 or more of the five bases of power can be used in combination. The use of the type can
affect the other power bases (e.g., the use of coercive power can reduce an individual's
perceived referent and legitimate power).Research suggests that legitimate and reward
powers are positively related; coercive power is negatively related to legitimate and
reward power.

Power Tactics
Ways in which individuals translate power bases into specific actions

Influence Tactics

 Legitimacy
 Rational persuasion
 Inspirational appeals
 Consultation
 Exchange
 Personal appeals
 Ingratiation
 Pressure
 Coalitions
Difference between power & Authority –
The Differences between Power and Authority in Politics are:

1. Power is the ability to produce a change in the behaviour of others through the use of force or
coercion or threat of use of force. Authority is the recognised power/legal right of the authority-
holder to direct and regulate the behaviour of his subjects.

2. Power may or may not be legitimate. It can be illegitimate also. Power based on naked force,
dominance and suppression is illegitimate power. As against this, what is called Authority is
essentially a legitimate power. Legitimacy is the hall-mark of Authority.

3. Power is based upon force. Its basis is force or threat of use of force. Authority is based upon
the constitution, laws or rights or traditions. It enjoys the status of being a rightful power.

4. The exercise of power depends upon the power-holder to act and use his resources for
securing the desired results in respect of the behaviour of others. The exercise of authority
involves the prescribed and willing acceptance of power of the authority- holder by the subjects.
It is the acknowledged and recognised power of the authority holder.

5. Scope of authority is defined, recognised and limited. Authority-holder is responsible as well

as accountable in respect of the exercise of his authority. Hence Authority is democratic in nature
and scope. Power depends upon the ability and capability of the power-holder. Its use can be
democratic or undemocratic.

6. Since the scope of authority is always defined and the authority-holder is \J responsible and
accountable, it is very effective in securing the desired change in the behaviour of the subjects.
The chances of its misuse are less than the chances of misuse of power. Power is limited only by
the resources and will of the power- holder.
 Q.4 Change Management- Meaning,Factor in organisational
change, Resistance to change & Managing resistance to change..?
Meaning-
Organizational change can be defined as the alteration in structure, technology or
people in an organization or behavior by an organization. Here we need to note
that change in organizational culture is different from change in an organization. A
new method or style or new rule is implemented here.
Factor In Organisational Change-
Change is inevitable in the life of an organisation. In today’s business world, most
of the organisations are facing a dynamic and changing business environment.
They should either change or die, there is no third alternative. Organizations that
learn and cope with change will thrive and flourish and others who fail to do so
will be wiped out. The major forces which make the changes not only desirable but
inevitable are technological, economic, political, social, legal, international and
labour market environments.

1. External Forces
Every organization exists in some context; no organization is an island in itself. Each must
continually interact with other organizations and individuals- the consumers, suppliers, unions,
shareholders, government and many more. Each organization has goals and responsibilities
related to each other in the environment. The present day environment is dynamic and will
continue to be dynamic. Changes in social, political, economic, technology, and legal
environment force organizations to change themselves. Such changes may result in
organizational changes like major functions production process, labour-management relations,
nature of competitions, economic constraints, organizational methods etc. In order to survive in
the changing environment, organization must change. How the change in various environmental,
organizations, must change. How the changes in various environmental factors necessitate
change in the organization may be seen in following context:-

 Technology: When there is a change in technology in the organizational environment

and other organizations adopt the new technology, the organizations under focus become
less cost effective and its competitive position weakens. Therefore, it has to adopt new
technology, its work structure is affected and a new equilibrium has to be established.
 Marketing conditions: Since every organization exports its outputs to the environment,
an organization has to face competition in the market. There may be two types of forces
which may affect the competitive position of an organization –other organizations
supplying the same products and, buyers who are not buying the product. Any changes in
these forces may require suitable changes in the in the organization. For example, when
Indian economy was liberalized, there were many foreign organizations that entered the
Indian market. This forced many Indian organizations to realign themselves with the new
situations. The result in that there have been many cases of divesting the business and
concentrating on the core business, acquiring core business, and developing competitive
competence to face competitive threats. Similarly, there may be changes in buyers in
terms of their needs, liking –disliking and income disposal for a product. These changes
from the organizations to bring those products which meet buyer’s requirement.
  Social changes: Social changes reflect in terms of people’s aspirations, the needs, and
their ways of working. Social changes have taken place because of the several forces like
level of education, urbanization, feeling of autonomy, and international impact due to
new information sources. These social changes affect the behavior of people in the
organization. There, it is required to make adjustment in its working so that it matches
with people.
 Political and legal changes: Political and legal factors broadly define the activities
which an oganisation can undertake and the methods which will be followed by it in
accomplishing those activities. Any changes in these political and legal factors may affect
the organization operation.

2.Internal Forces
It is not only the changes in external factors, which may necessitate organizational changes; any
change in organization’s internal factors may also necessitate changes. Such a change is required
because of two reasons: changes in managerial personnel and deficiency in existing
organizational practices.

 Changes in the managerial personnel: Besides environmental changes there is a change

in managerial personnel. Old managers are replaced by new mangers, which necessitated
because of retirement, promotion, transfer or dismissal. Each new manager brings his
own ideas and way of working in the organization. The relationships, more in the
organization. The relationships, more particularly informal ones, changes because of
changes in managerial personnel. Moreover, attitude of the personnel change even though
there is no changes in them. The result in that an organization has to change accordingly.
 Deficiency in Existing organization: Sometimes, changes are necessary because of
deficiency in the present organizational arrangement ad process. These deficiencies may
be in the form of unmanageable span of management, large number of managerial levels,
lack in co-ordination between various departments, obstacles in communication,
multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation
between the line and staff, and so on. Beside these internal factors, there are two more
internal factors that give rise to organizational changes.
 Nature of the work force: The nature of work force has changed over a passage of time.
Different work values have been expressed by different generations. Workers who are in
the age group of 50 plus value loyalty to their employers. Workers in their mid thirties to
forties are loyal to themselves only. The youngest generation of workers is loyal to their
career. The profile of the workforce is also changing fast. The new generation of workers
has better educational; they place greater emphasis on human values and questions
authority of managers. Their behavior has also become very complex and leading them
towards organizational goals is a challenge for the managers. The employee turnover is
also very high which again put strain on the management.
 To avoid developing inertia: In many cases, organizational changes take place just to
avoid developing inertia or inflexibility. Conscious manager take into account this view
of organization that organization should be dynamic because any single method is not the
best tool of management every time. Thus, changes are incorporated so that the personnel
develop liking for change and there is no unnecessary resistance when major change in
the organization are brought about.
Resistance to Change-
Change is basically a variation in pre-existing methods, customs, and conventions. Since
all organizations function in dynamic environments, they constantly have to change
themselves to succeed.
Change management contains several strategies that help in facilitating the smooth
adoption of such changes.
One of the most important facets of change management is resistance to change. It is
simply human nature to counteract any changes and maintain the status quo.
But since change is inevitable, instead of resisting changes the organization must try to
implement them with minimum hassle.
Resistance to change may be either overt or implicit. For example, employees may react
to a change in policies with outright rejection and protests.
Individual Factors for resistance to change-
There are many factors responsible to resistance to change at the individual level.
Degree of force or resistance depends on how people feel about the change. This feeling
may be based on actual facts or may be governed by emotional factors. Thus, in actual
operation, many factors generate resistance to change.

1. Problem of Adjustment
Perhaps most important factor for resistance to change is the problem of adjustment. Each
individual tries to maintain a sort of equilibrium, both at formal level as well as at
informal level. When change comes, it requires people to make adjustment so as to cope
with the new situation.
People seek status quo because once they establish equilibrium, they may not like that
it is disturbed. Status quo gives them more satisfaction because the existing equilibrium
has been arrived at by eliminating those forces which give people discomforts. When
change is introduced, this equilibrium does not remain as satisfactory as it was before
the change.

2. Economic Reasons

People resist change if they feel that it is likely to affect them unfavorably so far as their
economic needs are concerned. The greater the amount of loss perceived, greater is the
degree of resistance. People may perceive several types of economic losses because of
change, major of them being as follows:

1. Fear of technological unemployment;

2. Fear of reduced work hours and consequently reduced monetary benefits;
3. Fear of demotion and consequently reduced pay;
4. Fear of speed-up and reduced incentive wages; etc.

3. Obsolescence of Skills

Change may result in obsolescence of skills specially when altogether a new method of
working is adopted. With the adoption of new method of working, old techniques become
useless and consequently old skills become obsolete. Therefore, when people sense that
new method of working poses a threat of replacing them or in some way affecting them
adversely, they will resist it.
It is not necessary that with the adoption of new method, people with old skills will be
replaced; there may be other consequences also like reduction in authority of the position
which they have been holding, attaching less importance to the jobs they have been
performing, and so on.

4. Emotional Factors

There are many emotional factors which also generate resistance to change. As indicated
earlier, people may not analyze the likely impact of change in an objective manner but
they may be governed by their feelings, emotions, attitudes, etc. Thus, many factors will
produce resistance to change like fear of unknown, ego defensiveness, group norms, and
social displacement.

Organizational Factors for Resistance to Change

Beside individual factors, the organization also may resist change. Some of the
organizations are so designed that they resist innovation and change. For example,
organizations that perform a narrowly prescribed assortment of functions oppose change.
They create strong defense against change. This is the reason why many organizations
fail to change over a period of time, though this phenomenon may be disastrous to them.

1. Threat to Power and Influence

A change is likely to be incorporated successfully if it has the blessing and support of top
management. When people, at the top level, consider change as a potential threat to their
position and influence, they resist it.

A change is likely to produce a new power equilibrium with more emphasis on

knowledge and new skills. This new equilibrium may reduce the amount of power and
influence of people at the top which may not be liked by them. Therefore, they may resist
any such change.

2. Organization Structure

Some forms of organization structure are more resistant to change, for example,
bureaucratic structure. A bureaucratic structure where lines of communication are clearly
spelled out, jobs are precisely defined, works against change. Since all these are
prescribed rigidly, there is very little scope of making changes. Moreover, the flow of
information from top to bottom level is stressed.

Therefore, there is every possibility that an information initiating or necessitating change

may be screened out at the higher level itself because change does not suit the present
organization structure. Unless the person at the top is highly dynamic, change will always
be resisted.

3. Resource Constraints

Many organizations resist change because of resource constraints. It is to be noted that all
organizations have limited resources because resources are limited by their basic nature.
However, some organizations may feel resource constraints more than others. In such a
case, the organizations may not like to incorporate change because it involves some
additional cost at least in the beginning.

4. Sunk Costs

Organizations may also resist change because they have invested in fixed assets and other
resources. These costs cannot be recovered unless the assets and resources are put to
productive use. When change is incorporated, many of these resources become useless.
This may be true for assets as well as for persons also. For example, earlier it has been
seen that change may result in obsolescence of skills.

Managing Resistance to Change-

One of the most common questions we get in our change management consulting is how to
overcome resistance to change. Our clients look a little frustrated when we tell them, “you
can’t.” But it’s true. It doesn’t matter if a change is perceived as negative or positive, if it is
transformational in scope or a small procedural one, resistance is going to occur. And the fact of
the matter is, you can’t combat it, solve it or overcome it. Instead, resistance needs to be
surfaced, understood and then managed.

Individual level change

Individual level changes may take place due to changes in job assignment, transfer of an
employee to a different location or the changes in the maturity level of a person which occurs
over a passage of time. The general opinion is that change at the individual level will not have
significant implication for the organization. But this is not correct because individual level
changes will have impact on the group which in turn will influence the whole organization.
Therefore, a manager should never treat the employees in isolation but he must understand that
the individual level change will have repercussions beyond the individual.

Individuals resist change for a variety of reasons. Here are the four reasons why individuals may
resist change :

1. Fear of the Unknown : Changes often bring with it ambiguity and uncertainty. If, for
example, the introduction of a new computer system requires that the employees learn some
specific statistical technique, some may fear they will be unable to do so. They may, therefore,
develop a negative attitude toward the introduction of new computer system.

1. New Learning : For doing new task, one requires to learn a new language, develop a new
technology, or adjust to a totally new culture. No doubt, learning new ideas can be exciting, most
people report that excitement comes only after the learning is occurred, not before.

2. Disruption of Stable Friendship : Almost all organizational changes disrupt the previous
stable friendship. This, is turn, results in uncomfortable feelings of social isolation and
loneliness. This may serve as a source of indirect resistance to change.

3. Distrust of Management : There are well-documented findings available from the history of
labour relations that managers exploited laborers. That's why employees often suspect the reason
for change and try to oppose the same.
Group Level Change -
Management must consider group factors while implementing any change, because most of the
organisational changes have their major effects at the group level. The groups in the organisation
can be formal groups or informal groups. Formal groups can always resist change for example,
the trade unions can very strongly resist the changes proposed by the management. Informal
groups can pose a major barrier to change because of the inherent strength they contain. Changes
at the group level can affect the work flows, job design, social organisation, influence and status
systems and communication patterns.

The groups, particularly the informal groups have a lot of influence on the individual members
on the group. As such by effectively implementing change at the group level, resistance at the
individual level can be frequently overcome

Organization Level Change

The organisational level change involves major programs which affect both the individuals and
the groups. Decisions regarding such changes are made by the senior management. These
changes occur over long periods of time and require considerable planning for implementation.
A few different types of organisation level changes are:

1. Strategic Change: Strategic change is the change in the very basic objectives or
missions of the organisation. A single objective may have to be changed to multiple
objectives. For example, a lot of Indian companies are being modified to accommodate
various aspect of global culture brought in by the multinational or transnational
corporations.
2. Structural Change: Organisational structure is the pattern of relationships among
various positions and among various position holders. Structural change involves
changing the internal structure of the organisation. This change may be in the whole set
of relationships, work assignment and authority structure. Change in organisation
structure is required because old relationships and interactions no longer remain valid
and useful in the changed circumstances.
3. Process Oriented Change: These changes relate to the recent
technological developments, information processing and automation. This will
involve replacing or retraining personnel, heavy capital equipment investment
and operational changes. All this will affect the organisational culture and as a result the
behavior pattern of the individuals.
4. People Oriented Change: People oriented changes are directed towards performance
improvement, group cohesion, dedication and loyalty to the organisation as well as
developing a sense of self actualization among members. This can be made possible by
closer interaction with employees and by special behavioral training and modification
sessions. To conclude, we can say that changes at any level affect the other levels. The
strength of the effect will depend on the level or source of change.
Q.5 Stress : Meaning, Nature and Sources of stress

Meaning -Considered from an individual’s point of view, stress is our body’s physical,
mental and chemical reactions to circumstances that frighten, confuse, endanger or
irritate us. If controlled, stress is a friend that strengthens us for the next encounter. If
handled poorly, it becomes an enemy which can cause diseases like high blood pressure,
ulcer, asthma and overactive thyroid. As per the medical explanation of the term,
“stress is the body’s general response to environmental situations.”

“Stress is defined as an adaptive response to an external situation that results in physical,

psychological and/or behavioural deviations for organisational participants.”

“Stress is a dynamic condition in which an individual is confronted with an opportunity,

constraint or demand related to what he or she desires and for which the outcome is
perceived to be both uncertain and important.”

Top 4 Sourse of Stress -

This article throws light on the four important sources of stress, i.e, (1) Extra
Organisational Stressors, (2) Organisational Stressors, (3) Group Stressors, and (4)
Individual Stressors.

All these sources are explained in detailed as follows:

A. Extra Organisational Stressors:

Job stress is not limited to things that happen inside the organisation, during the working hours.
Extra organisational factors also contribute to job stress.

These stressors include the following factors:

1. Political Factors:

Political factors are likely to cause stress in countries which suffer from political uncertainties as
in Iran, for example. The obvious reason is that the countries have stable political system where
change is typically implemented in an orderly manner.
2. Economic Factors:

Changes in business cycles create economic uncertainties. When the economy contracts, people
get worried about their own security. A very important example is the great depression of 1930s.
During this period, suicide rates touched the sky. Minor recessions also cause stress in the work
force as downward swings in the economy are often accomplished by permanent reductions in
the work force, temporary layoff or reduction in pay.

3. Technological Factors:

Technological uncertainty is the third type of environmental factor that can cause stress. In
today’s era of technological development new innovations make an employee’s skills and
experience obsolete in a very short span of time. Computers, automation are other forms of
technological innovations, which are threat to many people and cause them stress.

B. Organisational Stressors
In organisations, there is no shortage of factors which can cause stress. Almost every aspect of
work can be a stressor for someone. Although there are many factors in the work environment
that have some influence on the extent of stress that people experience at the job, the following
factors have been shown to be particularly strong in inducing stress:

1. Job Related Factors:

Job related factors or task demands are related to the job performed by an individual.

These factors include the following:

(i) If a job is too routine, dull and boring or happens to be too demanding in terms of frequent
transfers or constant travelling, which limits the time he can spend with his family, the individual
is likely to experience stress.

(ii) Some jobs also be hazardous or morally conflicting to the individual who interfaces with it,
for example, working in a explosives manufacturing factory for the individual who is a staunch
believer in and advocate of peace. For lack of other job opportunities, he may be forced to work
in this environment and this may be a constant source of severe stress and anguish to the person.

(iii) Some duties and responsibilities have inbuilt stress such as those of the fire fighter or the
police squad which defuses bombs.

(iv) Jobs where temperatures, noise or other working conditions are dangerous or undesirable can
increase anxiety. Similarly, working in an overcrowded room or invisible location where
interruptions are constant, can also lead to stress

(v) The more interdependence between a person’s tasks and the tasks of others, the more
potential stress there is. Autonomy, on the other hand tends to reduced stress.

(vi) Security is another task demand that can cause stress. Someone in a relatively secure job is
not likely to worry unduly about losing that position. On the other hand, if job security is
threatened stress can increase dramatically.

(vii) Another task demand stressor is workload. Overload occurs when a person has more work
to do than he can handle. The overload can be either quantitative (the individual has too many
tasks to perform or too little time in which to perform them) or qualitative (the person believes
that he lacks the ability to do the job). On the other hand, the opposite of overload is also
undesirable. It can result in boredom and apathy just as overload can cause tension and anxiety.
Thus, a moderate degree of work related stress is optimal because it leads to high level of energy
and motivation.

2. Role Related Factors:

Role related factors relate to pressures placed on a person as a function of the particular role he
or she plays in the organisation.

Individuals can experience the following role related stresses:

(i) Role Conflict:

Role conflict occurs when two or more persons have different and sometimes opposing
expectations of a given individual. Thus, there are two or more sets of pressures on the individual
so that it is not possible to satisfy all of them. Role conflict takes place when contradictory
demands are placed upon an employee simultaneously. For example, an advertising manager
may be asked to produce a creative ad campaign while on the other hand, time constraint is put
upon him, both roles being in conflict with each other.

Another type of role conflict is the inter-role conflict where an individual plays more than one
role simultaneously in his life and the demands of these roles conflict with each other. For
example, a police officer is invited to his friend’s wedding party where the guests use drugs
which are against the law. Here he faces a role conflict.

(ii) Role Ambiguity:

Stresses from job ambiguity arise when an employee does not know what is expected of him or
her or how to go about doing the job. For example, if an employee who joins an organisation is
left to himself to figure out what he is supposed to be doing and nobody tells him what the
expectations of him or his role are, the newcomer will face a high level of role ambiguity.

Even an old employee can be given a responsibility without being given much information. For
example, a production manager might tell a foreman that 500 units of steel rods are to be
manufactured in next five days and leaves town immediately without specifying what kind of
additional help will be provided, or what the purpose, cost, weight or design details are. The
foreman is left with a lot of role ambiguity and does not know how he should go about doing the
job.

(iii) Role Overload:

Role overload refers to the situation when an individual is expected to do too many things within
a limited time as part of the daily routine. For example, if Mrs. X is expected to perform the
duties of a supervisor, receptionist, public relations officer and an accountant, she is likely to
experience a lot of stress from the several roles she has to play during the day. She may be able
to manage the various roles for a short period of time, but if expected to continue in this fashion
on a long term basis, she is likely to fall sick or quit
3. Inter Personal and Group Related Factors:

Interpersonal demands are pressures created by other employees. Group related stressors include
factors like conflicts, poor communication, unpleasant relationship and fear of being ostracized
from the group as a valued member.

Working with superior, peers or subordinates with whom one does not get along can be a
constant source of stress. Some people can deal with conflicts and misunderstandings in an open
way and resolve issues as they arise. Many, however, find it difficult to do this and build internal
stresses for themselves.

Moreover, lack of social support from colleagues and poor interpersonal relationships can cause
considerable stress, especially among employees with a high social need. Sometimes, the
individuals try to avoid these stresses by remaining absent as frequently as possible and even
start looking for new jobs.

4. Organisational Structural Factors:

Organisational structure defines the level of differentiation, the degree of rules and regulations
and where decisions are made. Excessive rules and lack of participation in decisions that affect
an employee are examples of structural variables that might be potential stressors.

5. Organisational Leadership Factors:

These factors represent the managerial style of the organization’s senior managers. Some
managers create a culture characterised by tension, fear and anxiety. They establish unrealistic
pressures to perform in the short run impose excessively tight controls and routinely fire
employees who fail to turn up.

6. Organization’s Life Cycle:

Organisations go through a cycle. They are established; they grow, become mature and
eventually decline. An organization’s life cycle creates different problems and pressures for the
employees. The first and the last stage are stressful. The establishment involves a lot of
excitement and uncertainty, while the decline typically requires cutback, layoffs and a different
set of uncertainties. When the organisation is in the maturity stage, stress tends to be the least
because uncertainties are lowest at this point of time.

C. Group Stressors:

Another source of stress in organisations is poor interpersonal relationships or conflicts. These

conflicts can be among the members of the group or between the superiors and subordinates.
Groups have a lot of influence on the employees’ behaviour, performance and job satisfaction.
On the other hand, the group can also be a potential source of stress.

Group stressors can be categorized into the following factors:

1. Group Cohesiveness:

The famous Hawthorne studies had proved that group cohesiveness is very important to the
employees, particularly at the lower levels of the organisation. Lack of cohesiveness can be very
stress producing, especially for those persons who cannot thrive in isolation.
The other side of the picture is that too much cohesiveness can also lead to stress. Sayings like
“Too much familiarity breeds contempt” are very valid because prolonged contact with other
people can also cause stress. This stress becomes more intensified when the people we are close
to or with whom we come in contact with are in distress themselves. For example, people tend to
become distressed when their friends, colleagues or pears are in distress. Due to this reason
people belonging to certain specific professions, which deal with the problems of other people
have the highest level of stress.

According to Albercht, doctors have the highest rate of alcoholism of any of the professions and
that psychiatrists have the highest rate of suicide.

2. Lack of Social Support:

Satisfaction, though, a state of mind is primarily influenced by the positive external factors.
These factors include friendliness, respect from other members and self respect, support,
opportunity to interact, achievement, protection against threats and a feeling of security. In this
type of social support is lacking for an individual, it can be very stressful.

3. Conflicts:

People who are working in the organisations are prone to interpersonal and intergroup conflicts.
Conflict has both functional and dysfunctional aspects. Whenever conflict has dysfunctional
consequences, it will lead to stress in all the concerned parties.

4. Organisational Climate:

Much of the group or interpersonal relationships depend upon the organisational climate. An
overall organisational climate may have a relaxed style of working or it may be tense and crisis
oriented. All the employees of such organisation will be continuously tense, if the climate in
general is unfriendly, hostile or totally task oriented.

D. Individual Stressors:
The typical individual works for about 8 to 10 hours a day. The problems and experiences which
he has to face in the remaining 14 to 16 non-working hours can spill over to his work place. Our
final category of stressors thus includes personal or individual stressors.

Following are the main factors which can cause stress to individuals:

1. Job Concerns:

One of the major job concerns is lack of job security which can lead to concern, anxiety or
frustration to the individual. The prospect of losing a job especially when you have a family and
social obligations is always very stressful. Career progress is another reason of anxiety. This is
particularly true for middle aged people, because middle age is a period of soul searching and
self doubt. If these people were not given promotions when due or they feel that the jobs which
were given to them were beneath their qualifications, they may become very anxious. This
anxiety will lead to stress.

2. Career Changes:

When an employee has to relocate geographically because of a transfer or promotion, it disrupts

the routine of his daily life causing concern and stress.
The relocation can lead to the following problems:

(i) The fear of working in a new location.

(ii) Unpredictability about new work environment.

(iii) Anxiety about creating new relationships.

(iv) Uprooting of children from their schools and friends.

(v) If the employee has got a working spouse then the stress is greater.

Uncertainty about getting a new job at the new location creates some degree of stress.

Thus, when a person is geographically relocated, his stress will depend upon how many changes
occur in his social relationships and family life. More the changes, more will be the stress.

3. Economic Problems:

Some people are very poor money managers or they have wants and desires that always seem to
exceed their earning capacity. When individuals overextend their financial resources, or in
simple words, if they spend more than they earn, it will always cause stress and distract the
employees from their Work.

4. Changes in Life Structure:

The life structure of a person changes as he grows older. As a person grows older, his
responsibilities to himself as well as others change and increase. The higher the responsibility,
the greater the stress.

5. The Pace of Life:

As the responsibilities of a person increase, his capacity to execute them should also increase. A
hectic pace of life when the person is always busy in business or otherwise can create more stress
than a relaxed pace of life. Certain professions like teaching are less stressful than those of
company executives, bankers or businessmen.

6. Life Change and Life Traumas:

Life change and life traumas are both stress producing. Life changes may be slow (like getting
older) or sudden (like the death of a spouse). Sudden changes are highly stressful. Life traumas
can be highly stressful. A life trauma is any upheaval in an individual’s life that alters his or her
attitudes, emotions or behaviours. Life change and life trauma look alike but there is difference
between the two.
To illustrate, according to the life change view, the death of a spouse adds to a person’s potential
for health problems in the following year. At the same time, the person will also experience an
emotional turmoil, which will constitute life trauma and life trauma will spill over to the work
place.
Thomas Holmes and Richard Roke developed “Social Adjustment Rating Schedule” to assess the
degree of stress created by certain events in life. In order to develop the scale of impact, they
asked people to rate as to how long it would take them to adjust to certain stress producing
events in life. After considering the responses of the people, they developed a ranking and
weighing schedule for each of these stress producing events.
Consequences of Stress –
This article will throw light on the three important categories involved in consequences of
stress, i.e, (a) Consequences for the Individual, (b) Consequences for the Family, and (c)
Consequences to Organisations.

A. Consequences for the Individual:

Stress shows itself in a number of ways

Physiological Symptoms:

In the initial stages, the major concern of stress was directed at physiological symptoms. The
reason was that this topic was researched by specialists in the health and medical sciences.
According to the researchers high degrees of stress are typically accompanied by severe anxiety,
frustration and depression.

Psychological Symptoms:

While considerable attention has been given to the relationship between stress and physiological
symptoms, especially within the medical community not as much importance has been given to
the impact of stress on mental health. But psychological problems resulting from stress are very
important in day to day job performance.

Behavioural Symptoms:

Any behaviour which indicates that you are not acting your usual self may be a sign of adverse
reaction to stress.

B Consequences for the Family:

Distress which is handled by individuals in dysfunctional ways such as resorting to drinking or
withdrawal behaviours, will have an adverse effect on their family life. The effects of this will be
spouse abuse, child abuse, alienation from family members and even divorce.
C. Consequences for the Organisations:
The effect of employees stress on organisations is many and varied.

These include:

(i) Low performance and productivity.

(ii) High rate of absenteeism and turnover.

(iii) Loss of customers due to poor attitudes of workers.

(iv) Increased alienation of the worker from the job.

(v) Destructive and aggressive behaviours resulting in strikes and sabotage.

Coping Strategies For The Stress-

Stress is a normal part of life and something you cannot control, however you can control your
response to stress.

Here are seven ways to deal with stress:

1. Keep a positive attitude – sometimes the way you think about things can make all of the
difference. Your attitude can help offset difficult situations.
2. Accept that there are events you cannot control – when you know there are times
when you have given all that you can to a situation, it allows you to expend energy where
it can be more effective.
3. Learn to relax – purposeful relaxation, such as deep breathing, muscle relaxation and
meditation is essential in training your body to relax. Relaxation should be a part of your
daily regimen.
4. Be active regularly – being active also helps your body more easily fight stress because
it is fit.
5. Eat well-balanced meals – staying on track with healthy eating habits is a great way to
manage stress.
6. Rest and sleep - your body needs time to recover from stressful events, so sleep is an
important part of caring for yourself.
7. Find your stressors and effective ways to cope with them - remember that you can
learn to control stress because stress comes from how you respond to stressful events.