Notes of organisational behaviour

I. Meaning: - Organisational behaviour is the study of knowledge

about how people interact to each other inside the organisation. It is
the interface between human behaviour and organisation and
organisation itself.

→ It is the systematic study of knowledge that defines the human

behaviour in organisation and determines its job structure,
communication, performance etc.

→ Its study creates a disciplinary approach in the organisation and

thereby helps the organisation to be successful in its approach by
achieving their goals effectively.

Definition: -

“Organizational behavior is directly concerned with the understanding,

prediction, and control of human behavior in organizations.”
— Fred Luthans

II. FEATURES OF OB:

→ Behaviourial study of knowledge: -Organisational behaviour
is the study of knowledge that shows the behaviour of the
people in the organisation includes its performance, discipline
etc.

→ Interdisciplinary approach:Organisational behaviour is the

study of interdisciplinary approach that is essential to study
the behaviour of human beings at work. It helps in integrates
the efforts of every individual working in the organisation.
→ Science as well as an Art:Organisational behaviour is the
science because it applies the principles and concepts
objectively. It is also an art because its application changes as
and when required.

1. Science as well as art

2. Study of human behaviour
3. Multidisciplinary approach
4. Rational thinking
5. Interdisciplinary approach
6. Total system approach

→ Multidisciplinary approach:OB uses various principles,

practices and theories of various disciplines such as Law,
History, Political science etc. Hence treated as multi-
disciplinary approach.

→ Rational approach:OB is the rational approach and rational

thinking. It is not an emotional feeling about the humans. As a
main goal, it always tries to predict and judge human
behaviour.

→ Total system approach: Total system approach is one that

integrates all variables, affecting functions of the organisation.
An organisational behaviour is the total system approach that
also influences the human behaviour in the organisation and
thus functions of the management also affected.
III. LEVELS OF ORGANISATIONAL
BEHAVIOUR
➢ Individual Level –Deals with the concepts at the individual
level. Examples of individual-level concepts are perception,
personality, learning, motivation, and attitude.

➢ Group Level –Deals with the concepts at the group level.

Examples of group-level concepts are team, conflict,
leadership, power, and politics.

➢ Organizational Level –Deals with the concepts at the

organizational level. Examples of organizational-level concepts
are change management and organizational culture.

IV. MODELS OF ORGNISATIONAL

BEHAVIOUR:
❖ Autocratic: In this model, power is in the hands of managerial
orientation of authority. It means that employees that are
working under this model, dependent on their boss for their
requirements and work. They are oriented towards the
discipline and obedience. The only requirement of employees
that is met by this model is subsistence. But the performance
percentage in this model is less due to frustration, insecurity,
and dependency of employees on superiors.

❖ Custodial Model:The basis of this model is economic

resources with managerial orientation of money. The
employees in this model dependent on organisation and
 oriented towards security and benefits provided to them. Only
requirement of employees that is met is security. This model is
adapted only by those firms that have high resources.

❖ Supportive Model: The basis of this model is leadership with

managerial orientation of support. The employees in this
model oriented towards their job performance and
participation in the organisation. The requirement of
employees met is status and recognition. The model is
dependent on leadership strives. Hence, it makes a sense of
feeling of participation among employees.

❖ Collegial Model:The root level of this model is partnership

with the managerial orientation of teamwork. The employees
in this model oriented towards responsible behaviour and self-
discipline. It is extension of supportive model. The
requirement of employees that is met is self-fulfillment. Hence,
it makes a sense of accept and respect in employees.

V. OBJECTIVES OF ORGANISATIONAL
BEHAVIOUR:

→ Analyze and evaluate behaviourial approaches: The main

objective of organisational behaviour is to analyse and evaluate the
behaviour of the people working under an organisation. In context to
that, it must analyse that every aspect is an art as well as science.

→ Analyse mutual interest of individual:Organisational behaviour

must analyse the mutual interest of individual and group. It means
 that “Organisation needs people and people also needs
organisation.”

→ Analyse the ways to develop ethical prospects: Organisational

behaviour analyses the ways and methods to develop an ethical
prospect in the organisation so that it must create a dutiful
environment and no one can do any unethical activity.

→ Analyse the different aspect of work environment: Organisational

behaviour must analyse the all different aspects of work
environment that duly affect the behaviour aspect and attitude of the
persons working in the organisation.

→ Analyse how to make the different methods effective:

Organisational behaviour must analyse that how to make the different
methods perspective and communication would be effective, so that
ethical environment creates in the organisation.

→ Develop formal and informal pattern in the organisation:

Organisational behaviour analyse the various potentialities to develop
process and methods to create a formal and informal pattern in the
organisation.

→ Analyse and evaluate the role of different key elements like

people, structure, technology, Interactive behaviour and
environment etc.
VI. ROLE OF ORGANISATIONAL
BEHAVIOUR:
• Understanding Human Behaviour: Organisational behaviour provides
the ways to understanding the human behaviour. It can be understood at
various levels:
1. Individual level: Organisational behaviour analyses how and why
individual behaves in particular way. It integrates the various
factors like social, psychological and cultural to provide simplicity
in understanding the human behaviour.

2. Interpersonal level: Organisational behaviour must need to

understand human behaviour at interpersonal level also. It means
that it must need to understand the relationship of two persons in
the organisation that is inevitable.

3. Group levels: Organisational behaviour must understand human

behaviour at group levels also. Group levels give shapes to the
human behaviour. It analyse that how groups behave in norms,
leadership, communications, goals and various others procedures.

4. Intergroup level: Organisation consists of various groups which

build up complex relationships. It may be in form of co-operations
and competitions.

• Controlling and directing Behaviour: After understanding the

behaviour of the humans in organisation, managers required to control
and direct the behaviour of the humans. Organisational behaviour helps
the organisation in following ways: -

1. Use of powers and sanctions: - OB helps the organisation in

controlling and directing the behaviour in use of power and
sanctions which are formally prescribed by the
 organisations.Itexplains how easily organisation utilize the powers
and sanctions to achieve the organisational as well as individual
goals of an organisation.

2. Leadership: - Organisation behaviour also control and direct the

behaviour by leadership. It also gives new insights and
understanding to the leadership styles. It also helps the managers
in identifying that which leadership style is appropriate in given
situation.

3. Communication: - It is also the communication which makes the

effective contact of organisation with others. Organisational
behaviour helps in evaluation of communication process and how
it works in interpersonal environment.

• Organisational adaptation: Organisation must be dynamic in nature. It

means it must adapt all the important changes in the organisation
environment. There are two main problems face by organisation in that
case are- First how to adapt changes and second implementation of the
changes in such a way that it not adversely affected the organisation
people. Organisational behaviour helps the organisation in easy
adaption of environment by understanding the behaviour of people
working in organisation.

VII. 5 key factors affecting the

ORGANISATIONAL BEHAVIOUR:
→ People:People are the valuable part of every organisation. OB is also
depending on the behaviour of the people working in the organisation.
Every individual has different behaviour but some has same. So, OB
put them into one category to describe, understand and control his
behaviour. There are some individual factors that also affect the OB
such as attitude, personality, values, norms, culture etc.
→ Group:An organisation is a group of people collectively work for the
achievement of goals. Individuals, when working in the group, behave
differently instead of working alone. Under the study of OB, efforts are
made to understand the behaviour of individual in groups. There are
lot of group factors that affect the OB such as group processes, group
communication, group decision-making etc.

→ Organisational design:Organisational design depends on the division

of work, departmentalization, hierarchy, and coordination etc. These
factors vary differently in different situations. These factors also affect
the individual and OB. If the organisational design is effective, it would
be easy to understand the behaviour of people.

→ Technology:The most important thing to achieving goals of an

organisation is work performed by the employees. The work
performed by employees, depends on the technology. So, if the
technology is effective and according to the choice of employees, then
they will be satisfied and task will be completed easily. Thus,
technology affects the OB.

→ Business environment:Business environment consists of various

internal and external factors of the organisation. It includes: -
suppliers, customers, competitors, economic environment, social
environment etc. All these factors affect the behaviour of employees in
the organisation. Hence, Business environment is also the factor that
affect the OB.
VIII. Challenges and opportunities of
ORGANISATIONAL BEHAVIOUR:
➢ Improving ethical behaviour: Today, people in the organizations need
to face various ethical dilemmas to find out what is right and wrong in
the work assigned to them. But there are some unethical practices in
the organisation too, which makes difficulty for organisation to adapt
ethical behaviour. Hence, it is the major challenge for OB today.

➢ Respond to globalization: As businesses expands to various locations

and countries, globalization become the major challenge in front of OB.
Today more than 95% of Nokia headphones being sold outside of their
home country named Finland. Japanese cars also sold to different parts
of other countries. Hence, responding to globalization in time, become
the major challenge for every organisation.

➢ Managing workforce diversity: A proper management of workforce

diversity can have numerous positive results, such as availability of
fresh ideas and talents. But today, it is difficult to manage the employees
belonging to different cultural backgrounds, due to differences in their
values, beliefs, attitude etc. Hence, it also the challenge and new
opportunity for OB.

➢ Improvement in quality and productivity: Now a days, number of

programs such as quality management are being implemented to bring
improvement in productivity. OB has challenge that it is important to
match the desired level of quality and productivity with ever-changing
demands.

➢ Improvement in public skills: It is important for every organisation to

train and develop employees according to new trends because business
environment is changing environment. The technical and interpersonal
skills of employees need constant improvement. So, with the changing
trends, OB has to face the challenge of improving public skills on time.
➢ Improving customer service: Business is unsuccessful if fails to treat
the customer well and provide them better services. Every
organisational needs to develop a better understanding with its
customers. OB helps them in improving customer services by creating
customer-responsive environment in its business.

➢ Coping with temporaries: Managers and employees are must to cope

with temporariness. As the product cycle changes are slim due to
changes in methods of operations. They have to learn with flexibility
and unpredictability. The knowledge of OB helps the organisation in
understand the current state of work in the world of continuous
changes.

➢ Stimulate innovation and change: Today, every organisation has to

stimulate the innovation and change in the business environment. OB
helps them in understand the business environment in such a way that
any factor of business environment to directly or indirectly affect the
organisation people.

IX. Importance or Significance of

ORGANISATIONAL BEHAVIOUR:
1. Attaining organisational effectiveness: -OB is the study to learn how
to predict the human behaviour and then applies it into the useful way
to make organisation more effective. It helps in effective utilization of
people working in the organisation that guarantees success to
organisation.

2. Helpful in applying appropriate motivational techniques: - OB helps

the manager in apply appropriate motivational techniques in
accordance to the nature of individual employees.
3. Helpful in understand the basis of motivation: - OB helps the
managers in understand the basis of motivation and what he should do
to motivate his subordinates.

4. Helps in managing the complexities in the structure of

organisation: - OB helps in managing the complexities in the structure
of organisation. As every organisation works under dynamic
environment, there is a need to accept the changes. If the business
grows, its chain of work also expands and similarly the scope of
authority and responsibility also keeps on changing. All this requires
controlling in the organisation, which will be possible with the help of
OB.

5. Balance in increasing Capitalism: - Capitalism means economic

system of private ownerships. In Capitalism production, chances of
monopolists will be increasing and it arises the requirement of the
study of organisational behaviour.

6. Managing Global influences: - It means controlling the effect of

liberalization, Privatization and Globalization on organisation. Global
influences make the organisation workforce more diverse in nature.
Hence, the need of OB arises here.

7. Improving inter-personal relations: - OB helps the managers in

making the communication process more effective in nature and hence
it results in improving the inter-personal relations in the organisation.

8. Fulfils human needs: - It means managing and enhancing the skills of

the employees. OB helps the managers in understand human aspirations
and building better coordination among the employees.
X. Limitations of ORGANISATIONAL
BEHAVIOUR:
✓ Emphasis on principles, not practice: - OB is just a theoretical subject,
it does not lay much emphasis on improving the behaviour.

✓ Unethical practices and manipulation of people: - Knowledge of

motivation and communication acquired can be used to exploit the
subordinates in an organisation by manipulative managers.

✓ Descriptive not prescriptive: - OB is just a descriptive subject only. It

does not offer any solution, offer, commands and instructions for
problem solving.

✓ Prejudice: - There is a possibility of favoritism with some individuals in

organizational behavior. Those who do not get justice, they remain
dissatisfied. They do not take any interest in performing tasks and
discharging responsibilities.

✓ No improvement in industrial relations: - Organizational behavior

has not been successful in preventing industrial disputes, conflicts, and
production block activities in the subject organization. In spite of
implementing the procedures of organizational behavior, there has been
no reduction in incidents like strikes, lockouts, sabotage, in the
institutions.

✓ Law of diminishing Marginal Utility: - It says that beyond a certain

point, there is a decline in output even after each additional good or
positive factor.
 Diversity in Organisations:
Q1. What is Diversity?

Answer: - It refers to identity-based difference among and between two or

more people that affects their lives as applicants, employees and customers.
The identity-based differences include: - gender, sexual orientations, age,
caste and creed etc.

• Levels of Diversity:

❖ Surface level diversity: -Diversity in the form of characteristics of

individuals that are readily visible but not limited to, age, body
size, visible disabilities, race or sex.

❖ Deep-level diversity: - Diversity which is more important for

determining similarities as people get to know one another such
as values, personality, work performances, attitude etc.

▪ DISCRIMINATION:

It is the practice of treating one person or

Me
group of persons less fairly than others.
aning

People may be discriminated on the basis of caste, creed, race, sex, culture,
religions, gender etc.

→ Unfair discrimination often very harmful for the organisation and

employees such as reduced productivity, negative conflicts, and
increased turnover.

→ It involved restricting the members of one group to get opportunities

and privileges that are same available to the members of another group.
 Foundation of Individual behaviour
Individual behaviour is influenced by various factors such as personal
factors that effects on productivity, job-satisfaction, absenteeism in the
organisation.

Bio-graphical and Emotional Learning

individual factors intelligence Characteristics

BIOGRAPHICAL AND INDIVIDUAL FACTORS:

There are certain factors that are inherited by an individual. A person inherits
personal appearance, way of talking, analyzing and taking initiative in the
group. Physical attributes of person are important in work environment. If a
manager is able to identify these factors easily then he will able to understand
every individual effectively.

These factors are: -

1) Age: - Age is one of the important factors in organisation to increase

production. Younger employees are expected to be more energetic,
adventurous and risk takers. On the other hand, old people are more
conservative in nature, slow in work and less adaptable to changes but
have experience in work also. Productivity is more dependent on the
attitude and behaviour of the employees irrespective of age. As a result,
experience in work of old people, have great significance in
organisation weather it caused disadvantage of declining age and less
production.

2) Gender: - It is also the important factor that affects the production and
job satisfaction of the employees. There are few differences between
men and women in job performances. Work schedules seem be differ
 between genders. Women have more turnovers than men because they
have social responsibilities and domestic problems. But there is no
gender difference for skills that are required for problem-solving,
analytical skills, motivation and learning abilities etc.

3) Religion: - Religion and culture also plays an important role in

determining the individual behaviour. It determines individual attitude
towards the work and compensation. Employees having high religious
value found to be very hard-working, dependable and honest who can
fit in organisation well.

4) Tenure: - It means seniority as time on particular job. It is a good

predictor of employee productivity. Tenure on an employee’s previous
job is powerful predictor of employee’s future turnover.

ABILITY:
It is the individual capacity to perform various tasks in a job.

➢ Intellectual ability/skills: - It is the ability of person that is required to

do mental activities. There is no need of any higher IQ but a general
level of intelligence for high job. These abilities are further divided into
following skills:

❖ Number aptitude: - A person having number aptitude displays

high speed, and accuracy in their works. Such persons are best
employed in the accounting and sales tax departments.
❖ Verbal comprehension: - It is the ability of the person to
understand what is heard and read. It is the relationship of the
words to each other. They are best employed as plant managers.
❖ Perceptual speed: - It is the ability to identify the visual
similarities and differences. Such employees are gainfully
employed for the investigation jobs.
❖ Memory: - It is the ability of the person to recall the past
experiences.
 ❖ Spatial visualization: - It is the ability to imagine the object how
it looks if its position in the space were changed.

➢ Physical abilities: - It is the process and programs by which the

managers make everyone aware of and sensitive to the needs and
differences to others.

Emotional intelligence:

For many years, wisdom and ability of the person to perform the work is
measured by IQ. But now a days, studies indicates that Emotional
intelligence is more important than IQ.

Emotional intelligence means; “A form of social intelligence that

involves the ability to monitor one’s own and others feelings and
emotions to discriminate among them and to use this information to
guide one’s thinking and action.”

It is believed that emotional intelligence is important for successful work

of life but there is need of some emotional competence also with
emotional intelligence.

Emotional competence means, “personal and social skills that lead to

superior performance in the world of work.” It is linked to be and
based on the emotional intelligence. In other words, there is a need of
certain level of emotional intelligence to be learn the emotional
competence.

Learned Characteristics: -
Personality: - It is the sum total of all the ways in which people reacts and
interacts with each other.

It includes various ways:

→ Environment: It refers to the culture in which a person is raised. It
includes values and attitudes that passes to the generations and affects
the personality of the persons.

→ Heredity: It refers to those factors that are transmitted from one

person to another through genes that determine hormones balance and
leads to physical formation and shape to the personality. Factors
includes: - sex, temperaments, muscle compositions etc. Traits like
shyness, fear and distress are passed on the generations. Hence, it also
the factors affect the personality of the individuals.

→ Attitude: It is the tendency to act in certain ways either favorably or

unfavorably concerning objects, people and situations. It can be
measured either by observing the action of person or by asking some
questions about how he react in that particular situation.

→ Values: It means beliefs that guide actions and judgement across a

variety of situations. It includes two types: -
A. Terminal values: that are ultimate values like freedom, salvation,
truth and non-violence.
B. Instrumental values: refers to means for achieving the ends.

Diversity Management Techniques

Or
Ways to managing the diversity at workplaces
1) Create a diverse organisational or corporate culture:
Organisation or corporate culturemeans the values and behaviour
that contribute to the unique social and psychological environment
of an organisation. Corporate should be created in such a manner
that it creates a diverse culture so that each and every employee’s
behaviour towards the work can easily be judged and examined.
2) Create diverse trainings: -
Now-a-days most of people know the importance of diversity in the
organisation. It’s not always comes naturally but also with some
unconscious biased people. So, it is important to provide training to
employees regarding how to achieve and maintain diversity at
workplace.

3) Get leadership on board:To manage the diversity at workplace,

leadership plays an important role in the organisation. Leadership
is the tone for every employee. Leadership has ability to treat
everyone equally and lead them according to every situation. So if
leadership makes diverse environment in the organisation then it
makes easy for every employees to accept diverse organisation
structure.

4) Keep the work environment positive: If you create a positive

work environment in the organisation, then helps the employees
to feel happier. As a result, they will be more likely to get along
well with eachother. It is seen that creating a positive work
environment also covers physical environment and facilities and
trainings and communication in the workplace among others.

5) Management commitment: It is one of the best techniques that

help in managing diversity at workplace. Management should
demonstrate commitment and accountability. They should
communicate effectively with each other and be a role model for
everyone. Management must build a team of champions that
develop, implement and monitor initiatives. They also create
awareness in the organisation and understand the needs of
employees.
6) Reinforce employee competencies: This strategy includes
recruitment. Recruitment in such a way that identify the
management values, build its process effective and train the
interviewers also. This strategy also includes learning and
developing of organisation by way of introducing new employees,
orienting new employees, and also providing training to
employees and managers.

7) Actively facilitate inclusiveness:

✓
✓ Workplace activities:
It means most effective practices should be created in
promoting an inclusive and harmonious workplace culture.
There should be themes on common interest to create bond.
Participation should be encouraging at all levels

✓ Workplace design:
It should be design by keeping in mind the about different
employee population. There should be a space for
employees to meet and interact informally. There should be
an open office environment in the workplace also to manage
diversity.

✓ Buddy System:
This system means helps the new employees to settle down
in the organisation. It also includes
a) Inviting the new employees to an introduction meal.
b) Introduce new employees to colleagues
c) Be a point of contact for questions, feedback and to
provide guidance.
d) Check in with the new employees regularly.

✓ Awards and Recognition: - There should be proper awards

and recognition in the organisations for various teams as
 well as groups. Recognition should properly demonstrate
the specific action and behaviour.

8) Communicate effectively: To manage the diverse workplace in

the organisation, effective communication must be necessary.
Effective communication includes telling the importance of
inclusive environment in the organisation. It should also include
all the tips that enhances the relationships with employees.

9) Evaluate effectiveness:
Effectiveness in the organisation must evaluate recruitment
process, employee engagements, promotion and retentions. In
simple words, effectiveness should evaluate in that way so that
harmony between organisations encourages. Do’s and Don’ts
must be created in the organisation.

MBTI – Myers Briggs type indicator

The Meyers-Briggs Type Indicator (MBTI) is a self-help assessment test which
helps people gain insights about how they work and learn. It is a framework
for relationship-building, developing positivism, and achieving excellence.

→ It is the well-known personality test in the world.

→ It is the test to understand psychological type and useful in people’s life.

→ It helps people to understand themselves and each other so that they

might work in discipline that matched their personality test.

→ This would make people happier & make the world a more creative,
productive and peaceful place in which to live.

→ It is the way to develop the positive nature in the people.

 → It is the way that helps the people to work with each other to build
strong relations.

Do you prefer to focus on your outer world or your

own inner world?
VS
EXTRAVERSION INTRAVERSION

People who prefer extraversion People who prefer introversion

tends to focus on your outer world tends to focus on your own inner
and the things around them. world of ideas and impressions.

Do you prefer to focus on the basic information you

take in or do you prefer to interpret and add
meanings??

SENSING VS INTUTION

People who prefer sensing tends to People who prefer intuition tends to
focus on the present and on focus on future, with view towards
concentrate information gained from patterns and possibilities.
their senses.

When making decisions, do you prefer first look at

the logic and consistency or first look at the people
and special circumstances?
 THINKIN
FEELING
G VS
S

People who prefer thinking tends to People who prefer feelings tends to
base their decisions primarily on base their decisions primarily on the
logic and an objective analysis of values and subjective evaluations of
cause and effects. the persons centered concerns.

In dealing with outside world, do you prefer to get

things decided or do you prefer to stay open to new
information and options?

JUDGING PERCEIVING

People prefer judging tends to like a People prefer perceiving tends to

planned and organized approach to like a flexible and spontaneous
life and prefer to have things settled approach to life and prefer to keep
their options open
MBTI-TYPES:
Each type of the MBTI is defined in four letter codes:

❖ ISTJ: - It means decide logically what should be done and works

towards it steadily, regardless of distraction. Take the pleasure by
making everything in organized and orderly manner – their work, their
home, their life etc.

❖ ISFJ: - It means a personality that is quiet, friendly and responsible. He

is loyal, considerate, notice and remembers specifies about people who
are important to them, concerned with how others feel. It also includes
a personality that strives to create an orderly and harmonious
environment at work and home.

❖ INFJ: - It means a personality of counselor that is the inspiration to

others. It always wants to understand what motivates people and are
insightful about others. It develops a clear vision about how to serve the
common goal.

❖ INTJ: - It is the personality of mastermind, which defines that

“everything has room for improvement”. This personality has clear
minds and great drive to implement their goals. They quickly see
patterns in external events and develop long-range explanatory
perspective.
❖ ISTP: - It is the personality of crafter which means ready to try
anything once.It includes tolerant and flexible, quiet observers until
problems appears and then act quickly to find working solution for that
problem. They are interested in cause and effect, and organize facts by
using logical principle and value efficiency.

❖ ISFP: It is the personality that sees much but shares very little as like
composer. They like to enjoy the present moment, what going around
them. They also like to have their own space and to work within their
own time frame. They are loyal and committed to values and to people
who are important to them. They dislike disagreements and do not force
their opinions on others.

❖ INFP: It is the healer personality that provides noble services to aid the
society. They want an external life that is congruent with their values.
They are curious and quick to see possibilities. They seek to understand
people and to help them to fulfill their potential.

❖ INTP: It is the personality of architect who believes in love of problem

solving. They seek to develop logical explanation for everything that
interests them. They have unusual ability to focus in depth to solve the
problems in their area of interest.

❖ ESTP: It is the personality of promoter that defines it as “The ultimate

realistic person.”They take pragmatic approach focused on immediate
results. They focus on here and now and other side, they also like to
enjoy each moment that they can be active with others.

❖ ESFP: It is the personality of performer that defines –“You only go

around once in life.”They are outgoing, friendly and exuberant lovers
of life. They bring common sense and a realistic approach to their work
and make the work a fun. They are always readily available to new
people and environment.
 ❖ ENFP: It is the personality of champion that defines – “Giving life an
extra sequence.” They are warmly enthusiastic and imaginative. They
also see life as full of possibilities. They try to make connections
between events and information very quickly and confidently. They
want a lot of affirmations from others.

❖ ENTP: It is the personality of inventor that defines- “One exciting

challenge after another.”They are resourceful in solving new and
challenging problems. They are good in other peoples. They bored by
routine but apt to turn one new interest after another.

❖ ESTJ: It is the personality of the supervisor that defines – “Life is

administrator.” They are practical and realistic in nature and quickly
move to the implement the decisions they feel right. They organize the
projects and tell people to get things done in most effective manner.

❖ ESFJ: It is the personality of the provider that defines it- “Host and
hostess of the world.” They are mostly warmhearted and cooperative
person. They want harmony in their work environment. They also need
what other need in their day to day life and try to provide it on time.

❖ ENFJ: It is the personality of teacher that defines it- “smooth talking

persuader.” They are warm, responsive and responsible in nature. They
are highly attuned to the emotions, need and motivations of the others.
They find potential in everyone and want to find their potential.

❖ ENTJ: It is the personality of natural leader, defines as field marshal.

They are frank but decisive in nature. They quickly see illogical and
insufficient procedures and policies, develop and implement
comprehensive systems to solve organisational problems.

Big-Five Personality Traits:

▪ Agreeableness: It refers to person’s ability to get along with others.
Higher the agreeable person, more the good working relationships and
less the agreeable person, not likely to have good relationship.

▪ Conscientiousness: It refers to number of goals on which a person

focuses his attention. People with high conscientiousness focus on
relatively few goals at a time and are likely to be organized, systematic,
disciplined and careful, whereas persons with less conscientiousness
lend to pursue a wider array of goals and as a result, to be more
disorganized, careless, unsystematic and indiscipline.

▪ Negative emotionality: Emotions means moving of the feeling and

agitation of mind. People with less negative emotionality, are relatively
poised, calm and resecure, tend to better handle the job stress, pressure
and tensions. Persons with more negative emotionality are more
excitable, insecure, reactive and subject to extreme mood swings.

▪ Extroversion: This refers to the extent at which person comfortable

with other people. Person, who have high degree of extroversion are
social, talkative and friendly. They are extroverts and tend to develop
new relationships easily. People who are low in extroversion, are
introverts. They are reluctant to interacts with other people and not
want to develop any new relationships.

▪ Openness: It refers to persons rigidities of beliefs and range of

interests. People have more openness are willing to listen new ideas and
to change their own ideas, beliefs and attitudes to new information. On
the other hand, people with less openness are tend to be less respective
to new ideas and less willing to change their mind.
VALUES AND VALUE SYSTEM IN ORGANISATION:

Values represent the basic conviction that, “a

specific mode of conduct or end state of
existence is personally or socially preferable
to an opposite or converse mode of conduct
or end state of existence.

Where do values come from?

They are learned from parents, teachers and friends. For example: I was
told in my childhood not too steal, lie and betray others.

Attributes of Values:

→ Content attribute: - It states that mode of conduct and end state of

existence is important.
→ Intensity attribute: - This attribute specifies how important it is.

What is value system?

 Answer: - A hierarchy based on the ranking of an individual’s
values in terms of their intensity.

Note: - Values are stable and they are generally inherited to a large extent of
the total values possessed by an individual.

IMPORTANCE OF VALUES
1. Values lay down the foundation for understanding the behaviour,
attitude and motivation of individuals.

2. Values represent the interpretations of “Right” and “Wrong”

3. It influences our perception of the world around us.

4. It implies that some behaviour or outcome is preferred over others.

Hofstede’s Value Dimensions:

This approach is associated with Greet Hofstede. He explored national culture
through the identification of 5 different dimensions. It is the framework used
to understand differences in culture across countries.

❖ Power distance: - The extent to which a society accepts that power in

institutions and organisations is distributed unequally.

✓ Low distance: relatively equal; distribution.

✓ High distance: extremely unequal distribution.

❖ Individualism vs Collectivism
 ▪ Individualism: The degree to which people prefer to act as
individual rather than member of group. A person’s self-image in
this category is defined as “I”

▪ Collectivism: A tight social framework in which people expect

others in group of which they are part to look after and protect
them. A person’s self-image in this category defined as “We”

❖ Masculinity vs Femininity: Both also referred as “tough” and “tender

and considers the preference of society for achievement, attitude
towards sexuality equality, behaviour etc.

▪ Masculinity comes with following characteristics: distinct gender

roles, assertive, and concentrated on material achievements.
▪ Femininity comes with following characteristics: fluid gender
roles, modest, and concerned with the quality of life.

❖ Uncertainty Avoidance: The extent to which uncertainty and

ambiguity are tolerated. This dimension considers how unknown
situations and unexpected events are dealt with.

▪ High uncertainty avoidance: low tolerance for uncertainty,

ambiguity and risk-taking. This unknown is minimized through
strict rules, regulations etc.
▪ Low uncertainty avoidance: High tolerance for uncertainty,
ambiguity and risk-taking. This unknown is more openly accepted
and there are less rules and regulations.

❖ Long-term orientation vs short-term orientation: The extent to

which society views its time-horizon.
 ▪ Long-term orientation shows focus on future and involves
delaying short-term success in order to get long-term success. Its
emphasis the persistence, perseverance and long-term growth.

▪ Short-term orientation shows focus on near future involves

delivering short-term success and places a stronger emphasis on
the present than the future. Its emphasis the quick results and
respect for tradition.

ATTITUDE

It may be defined as the mental state of an individual, which prepares

him to react or make him behave in a particular pre-determined way. It
is an actually acquired feeling.

It is the mixture of feelings and beliefs that people have about situations,
specific ideas or with other people.

Components of Attitude:
→ Cognitive: - It is related to the value statements. It consists of beliefs,
values and other information that an individual may possess or has faith
in. For instance, Quality of working hard is a value statement or faith
that manager has.

→ Affective: It is related to person’s feelings about another person, which

may be positive, negative or neutral. For instance, I don’t like Maya
because she is not hard working or I like Meena because she is hard-
working. It is an expression of feelings about a person, object or
situation.
 → Behaviourial Component: It is related to the impact of various
situations or objects that lead to an individual ‘s behaviour based on
cognitive and affective components. I donot like Maya because she is not
hard-working is an affective component, I therefore, would like to
disassociate myself with her, is a behaviour component. And therefore, I
would avoid Maya.

Types of Attitudes/ Major job attitudes: -

• Job Satisfaction: It is related to the person’s general attitude towards
the job.
o High Job satisfaction: - Positive attitude
o Low Job satisfaction: - Negative attitude

• Job Involvement: It refers to the degree to which person identifies

himself with his job, actively participate considers his perceived
performance level important to self-worth.
o High involvement: - Less absenteeism and employee turnover.
o Low involvement: - More absenteeism and employee turnover.

• Organisational commitment: It is the degree to which an employee

identifies himself with the organisational goals and wishes to maintain
membership in the organisations.

o Resign from the job vs Job satisfaction is the predictor to

organisational commitment. It depends upon on the degree of
autonomy and freedom job and job enrichment factor.
 • Perceived organisational support: The degree to which employee
believe an organisation values their contribution and cares about well-
being.

• Employee engagement: An individual’s involvement with, satisfaction

with, enthusiasm for the he or she does.

JOB -SATISFACTION:

A positive feeling about one’s job resulting from an evaluation

of its characteristics or an individual’s emotional response to
work or workplace.

There are mainly two measures of the job satisfaction:

[1] Global ratings: - an individual’s response to questions, that is, how

satisfied he is with job.
[2] Summation score of job facets.

Factors affecting the job satisfaction:

(1) Work content: - The work must be challenging for the employees. It
should be encouraging and interesting and variety inbuilt in it so that it is not
boring. Positive feedbacks from jobs creates a feel of motivation among
employees. While too much challenging jobs make the frustrations among
employees. Hence, work content itself is the major source of satisfaction.
(2) Pay and Promotion policy:- Pay and promotion policy must be just,
unambiguous and in line with prevalent industry norms and employee
expectations. Employee wages and salary must ensure him social status and
should able to fulfils his expectations. Organisation should ensure that their
policies must be growth oriented and incremental in nature so that employees
take on an additional responsibility voluntary.

(3) Supportive working conditions: - Due to fast technology,

organisation has necessary to operate upgraded technology systems and
latest technology and procedures. The layout of the workplace must be ideally
suited to employees so that they feel greater degree of satisfaction.

(4) Work group: - The work group serves a source of support, comfort,
advice and assistance to individuals. A good workgroup makes the job
enjoyable. A factor of work group support is essential for the job satisfaction.

(5) Supervision: - It is one of the moderate factors that affect the job
satisfaction. It is related to the leadership. It means overseeing the employees
during work. It helps the employees to complete their work in time and boost
the morale as well as provides motivation to the employees.

(6) Personality Job fit: - Individuals should assigned the jobs that suited
their interests. Recently it has been seen that MBA graduated are more
satisfied with their jobs related to the Specialisation they have chosen during
MBA degree. Persons having analytical approach should be assigned a job of R
& D department.

Effect of job satisfaction on performance: -

Satisfaction and Productivity: - Productivity is considered as reward for
hardworkwhich is due to high level of satisfaction. More the satisfaction to
employees, more they fast in production and productivity in organisation. As a
result, with the increase in production, goals of an organisation can easily
achieve.

Satisfaction and absenteeism:-There is an inverse relationship between

satisfaction and absenteeism. When work are more satisfied, less the chances
of absenteeism and when the work are less satisfied, more the chances of
absenteeism. There are certain reasons that employee tend to be absent from
their job such as fever, cough and cold etc. But as far as work is concerned,
employees who are more satisfied with their work try always to do his best
and less absent in their work. In short, it is seen that less the satisfaction,
employees goes absent for many reasons.

Perception

A process by which individual organize and interpret their sensory

impressions in order to give meaning to their environment. (Robbins)

→ It is the process by which people select, organize, interpret, retrieve and

respond to information.

→ It differs from person to person.

→ Each person perceives the same situation differently.

→ Individuals organize and interpret things based on their past

experiences and the important values they considered to be important.

→ Employees tend to behave and act on certain things on basis of their

perception.

→ It is the process that operates constantly between us and reality.

 Importance of Perception

Shape the personality Helps in distinguish

of an individual between perceived world
and reality
Affect the outcome of
our behaviour.

Helps in understand
Helps in interpret the and control the
world around us. behaviour.
Factor influencing the perception:
1. Perceiver: When an individual looks at the objects and attempt to
interpret the same, what he or she sees largely influenced by personal
characteristics.
• Attitude: - Some workers would feel and perceive that the
prevailing working conditions in the organisation are congenial
for work and it contributes positively. While others, feels it
inadequate and demand improvements. This is the indication of
positive and negative attitude patterns under perception.

• Motive: - It is nothing but an unsatisfied need. This exerts

considerable influence on the perception. Boss who is insecure
perceives subordinate who does well as threat to his position.
Personal insecurity is threat to personal survival in the job.

• Interest: - It is person’s likings to a particular thing in an

individual. May be some people get attracted to the eyes of girl
and other like the girl’s hair style. There different perceivers will
perceive a girl based on perceivers interest.
 • Past experiences: - It nullifies an object interest. Objects that
have not seen before are more noticeable and create an interest.
FOR EXAMPLE: a female manager.

2. Situation: - Change in situation leads to incorrect perception about a

person. Time is the one factor that influences the perception. Time is
related to work setting and social setting. A person dressed up for party
not noticeable but in same dress if go office then, notice by everyone
distinctly (though same person). What is more important to remember
is perception should do in correct manner and not led due to work
setting or social setting?

3. Target/Object: - Objects that are similar to each other tend to group

together and have tendency of perceiving them as common group.
Physical and time proximity also leads to perceiving a situation in
different form than actual reality. Increase in sales volume may be
attributed to the newly posted sales manager. In actuality an increase in
sales may have been outcome of hard work done in past by sales
representatives and public contact.

Attribution theory of perception/ Perception process:

Attribution theory suggests that it has been seen that our perception is
greatly influenced by assumptions we make about a persons and not by
reality. There are two factors influences human behaviour: -

i. Internal factors – have full control

ii. External factors- Have no or less control.
 (1) Distinctiveness: - Let us take an example: worker X coming late for
duty. When we carry out interpretation there are two factors: one is
weather arriving late is usual or unusual behaviour. If it’s usual then
it is internal factor and X as full control. If it’s unusual then it is
external factor. If it is internal factor then would be discuss later but
external factor can’t corrected.
(2) Consensus: - This factor refers to group behaviour. F the entire
group taking the same route come late on duty, causation attribute is
external factor. But by some chance, if only X is late then, causation is
attributed to internal factor.

(3) Consistency: - If the behaviour of Mr. X is consistent and he

consistently coming late then it attributed to internal factor. In such
case, causation would be high and attributed to internal factor. If X
come late once in a while then causation is low and attributed to
external factors. More consistent the behaviour, more the observers
are inclined to attribute it as internal cause. It has seen that we have
tendency to underestimate the effect of external cause and
overestimate the effects of internal factors. This is called
fundamental attribution error.

Common errors while judging others:

❖ Selective perception: People selectively interpret what they see based
on their attitudes, interests’ backgrounds and experiences. An
individual might have been appointed on the key position on the day of
CEO and appointment may be incidental but we may perceive
appointments as a consequence CEO’s visit. In an organisation so many
things now happening today with perceptions. It is important that when
we read others, we make a mistake reading with speed and putting seal
of what has been selectively seen by perceiver.

❖ Halo effect: It means judging an individual on the basis of single

characteristics such as intellectual ability, appearance etc. Sales
manager’s visit to sales territory and consequent increase in sales
volume may be attributed to the visit of sales manager to a particular
sales territory. Perceiver in this case, not notices the actual cause of
increase in sales. This type of perception is quite common now days in
any organisation. This is called Halo effect.

❖ Projection: You assume that person is based on your own traits and not
what he actually possesses. If you were a hardworking and dependable
person, you would expect others to be so. If the person projects above
characteristics in his dealings he is rated high, and perceived in different
way that what he actually is. It is commonly found in subordinates do or
exhibits same behaviour as desired by boss. This is called projection, an
error that is common in every organisation.

❖ Contrast effect: We do not evaluate a person in isolation. Our reaction

to one person relative to other. During selection process, interviewer
select a particular person for a particular job not because he fulfills all
requirements but he generally selected in relation to other candidates.
Individuals may select academically, skill wise, and experience wise
better than those who not selected. So, it is called contrast effect.

❖ Stereotyping: In order to simplify matters, we often tend to classify

people and events into already known categories. For example, we
 generally perceive man as executive and women as secretary even if the
situation may different. We already perceive that categories of
teenagers would generally independent and indiscipline and so on. In
reality, it is not true.

GROUP DYNAMICS
Group: - A group is defined as several individuals who come together to
accomplish a particular task or goal.

Group dynamics: - Group dynamics refers to the attitudinal and

behaviourial characteristics of a group.

• It is the social process by which people interact in group environment.

• It concerns how group form, their structure and process, and how
they function.

• Group dynamics are relevant with both formal and informal groups of
all types.
Importance of group in organisation: -
Or
Why there is need of groups in the organisation?
1) Outperform individuals: - Groups typically outperform individuals
when the tasks involved require a variety of skills, experience and
decision making.

2) More flexible: Groups are more flexible and can quickly assemble,
achieve goals and disband or move on to another set of objectives.

3) Easy participation of all members: Group members are more likely to

participate in the decision-making and problem-solving activities
leading to the empowerment and increased productivity.

4) Complete lots of work in the organisation: It helps in completing

many works in the organisation. Thus, effectiveness of the organisation
is limited by the effectiveness of its groups.

5) Solving work problems: If the organisation is informal, it helps in

solving various work problems of members. It allows sharing of job
knowledge and taking decisions which affect number of jobs.

6) Restraint to managers: Informal groups restraint managers to cross

their limits. They restrict them from getting from unlimited power and
from using their powers injudiciously.

7) Better relations: A manager can build better relations with his

subordinates through informal contacts. He can consult the informal
leaders and seek their cooperation in getting the things done from
others.

TYPES OF GROUPS:
(1) Formal group

(2) Informal group

FORMAL GROUP

Comman Function
d Group al group

Task
Group

Formal group is the designated work group defined by the organisation

structure. It is the collection of employees who work together to
contribute towards achievement of organisational objectives. These
groups are formed on the basis of work and human resources required
by skills, knowledge and experience.

→ Command group: It is formed to carry out specific tasks. There is a

leader in a group who is also designated by the organisation. These
groups are specified by the organisational charts and often consist of
superior and subordinates that report to that superior.

Example: - An academic department chairman and faculty members in

that department.

→ Task Group: Task groups consist of people who work together to

achieve a common task. Members are brought together to accomplish a
narrow range of goals within a specified time period. Task groups are
also commonly referred to as task forces. The organization appoints
members and assigns the goals and tasks to be accomplished.
 → Examples of assigned tasks are the development of a new product, the
improvement of a production process, or the proposal of a motivational
contest.

→ Functional group: A functional group is created by the organization to

accomplish specific goals within an unspecified time frame. Functional
groups remain in existence after achievement of current goals and
objectives.

→ Examples of functional groupswould be a marketing department, a

customer service department, or an accounting department.

Informal groups are groups that are not formally organized in the work
system to get job done but develop on their own randomly at workplaces
because of common interest and mutual liking of group members with
each other. They are created for the purpose other than organisational
goals and not have specified time frame. They show impact on
organisation either positively or negatively.

Types:

→ Interest group: It is a group of people who share common interest and

work together to protect and promote that interest. They usually
continue over a time and may last longer than general informal groups.
Their members may not a part of same organisational department but
they bound together by some other common interest.

→ Friendship group: These groups are formed by the members who

enjoy similar activities, political beliefs, religious values and other
common bonds. These groups enjoy each other’s company and often
meet after work to participate in these activities.
 → Reference group: It is a type of group that people use to evaluate
themselves. These groups have a strong influence on the member’s
behaviour. By comparing themselves with others members, individual
are able to assess whether their behaviour is acceptable and whether
their attitudes and values are right or wrong.

Group development: It is concerned with the process consists of 5

steps:

(1) Forming: In this step, group members get to know each other and
reach common goals.

(2) Storming: In this step, group members, disagree on direction and

leadership. Managers should be sure about the conflicts and stay
focused on the goals.

(3) Norming: In this step, close ties and consensus begin to develop
between group members.

(4) Performing: In this step, members in the group begin to perform its
real work.

(5) Adjourning: It is the step where members in the group only do the
task work that is temporary in nature.

Group structure/properties: It is a pattern of relationship among

members that hold the group together helps it in achievement of assigned
goals. It can be classified in terms of:

Group size: - Group size can be varying from 2 people to very large number of
people.
 • Small group of two to ten are thought to be more effective because each
member has ample opportunity to participate and become actively
involved in the group.

• Large group may waste time by deciding on processes and trying to

deciding who should participate next.

• Group size not only affect the participation but also the satisfaction of
the members.

• A group of six members has twice as many opportunities for interaction

and participation as group of three people.

• Beyond the 10 or 12 members, size of group increases and satisfaction

decreases.

• It is increasingly difficult for members of large group to identify with

one another and experience cohesion.

Group Roles: In formal groups, roles are usually pre-determined and

assigned to members.

• Each role has specific responsibilities and duties.

• There are emergent roles also that develop naturally to meet the needs
of the people.

• These emergent roles will often replace the assigned roles as individual
begin to express themselves and become more assertive.

• The main types of roles are: - work role, maintenance role, and blocking
role.
✓ Work role: Work roles are task-oriented activities that involves
accomplishing the group’s goals. They involve a variety of roles
such as
▪ Initiator: defines problems, proposes actions, and
suggest procedures.

▪ Informer: Find out the facts and give advices and

opinions.

▪ Clarifier: Will interpret ideas, defined terms and clarify

issues for group.

▪ Summarizers: restate suggestions, offer decisions, and

come to conclusions for the group.

▪ Reality testers: analyze ideas and test of ideas in real

situations.

✓ Maintenance roles: These are social emotional activities that

helps members in maintain their involvement in the group and
raise their personal commitment to the group.

▪ Harmonizer: will reduce tension in the group, reconcile

differences, and explore opportunities.

▪ Gatekeepers: Often keep communication channels open

and make suggestions that encourage participation.

▪ Encouragers: are friendly, warm, and responsive to

other group members.

▪ Compromiser: This involves modifying decisions,

offering compromises and admitting errors.
 ✓ Blocking roles: These are the activities that disrupt the group.
Blockers will stubbornly resist the group ideas’, disagree with
group members for personal reasons, and will have hidden
agendas.

▪ Dominator role: attempts to control conversations by

patronizing others. They often interrupt others and
assert authorities in other to manipulate others.

▪ Comedians: often abandon the group even though they

may physically till will be part. They are attention-
getters in ways that are not-relevant to accomplishment
of group objectives.

▪ Avoidance behaviour: Involves and pursuing goals not

related to the group and changing the subject to avoid
commitment to the group.

Group norms: Norms are acceptable standard of behaviour within a group

that are shared by the members of the group. It defines the boundaries of
acceptable and unacceptable behaviour. Each group will establish its own set
of norms that might determine anything from the appropriate dress to how
many comments in a meeting. The norms often reflect the level of
commitment, motivation, and performance of group.

✓ Performance norms: Determine how quickly members should

work and how much should they produce.
• They are created in effort to determine levels of individual
efforts.

• They can be very frustrating to managers because they are

not always in line with the organisational goals.
 • Members of a group may have a skill ability to perform at
higher levels but they don’t because of group performance
norms.

✓ Reward-allocation norms –Determine how rewards are

bestowed upon group members.
For example: - the norms of equality dictate equal treatment of
all members. Every member shares equally so rewards are
distributed equally to everyone.
• Norms of equity: Suggest that rewards are distributed
according to the member’s contribution. In other
words, the members who contribute most receive the
largest share of rewards. Members may contribute
through effort, skills and ability.
• Social responsibility norms: Rewards on basis of need.
Members who have special needs therefore receive the
largest share of the reward.

Group Cohesiveness: It is the interpersonal interaction that binding the

group members together. Cohesiveness refers to the bonding of group
members and their desire to remain part of group. Many factors affect the
amount of group cohesiveness. Generally, speaking the more difficult is to
obtain group membership the more cohesive the group.

Factors affecting cohesiveness:

1. Togetherness: It is the natural tendency that people want to remain

together. When they interact they known each other by nature and
attracted by their nature and behaviour pattern. People share their
happiness and hardships and their bond of togetherness is formed.

2. Group size:Smaller groups allow more cohesiveness. Low cohesiveness

groups with many members can benefit from splitting into two groups.
 3. Managed diversity: Diverse groups often come up with better
solutions. It results in more cohesiveness.

4. Group identity: It encourages the groups to adopt a unique identity and

engage in competitions with others can increase cohesiveness.

5. Success: Cohesiveness increases with success. Finding ways for a group

to have some small successes increases cohesiveness.

Consequences of the cohesiveness:

(1) More influence: Every group has a leader. If it is formal group, then
the leader will be appointed by virtue of organisational structure. If
the group is informal, then leader will automatically arise due to
various situations and requirements. Leader must be sincere and
care for the expectations of group members.
(2) Success: Group cohesiveness and success are interdependent. When
group is highly cohesive, the success is almost assured. On the
contrary, if the group is not cohesive the members will display
separate interests and fulfillments of group objectives will merely
remain as an objective and its accomplishment would be difficult.
(3) Participation: If each member develops a sense of belongingness to
a group then, high level of cohesiveness would be achieved. He also
develops intimate relationships with each member and considers the
group as family.
(4) Satisfaction: In a group environment satisfaction is guided by
cumulative effects of external factors like respect for each other,
support from group members, expert guidance etc.
(5) Better communication: Members form a group; remain members of
the group because of value system they share with each other. By
virtue of this, an effective communication is evolved that reduces
conflict to a large extent.
 WORK TEAMS
A Team is a small number of people with complementary skills who
are committed to a common purpose and certain shared goals for
which they hold themselves mutually accountable.

Why have teams become popular?

→ Teams typically outperform individuals.

→ Teams use employee talent better.
→ Teams are more flexible and responsive to changes
→ Teams facilitate employee involvement
→ Teams help in increasing motivation among organisation employees.

Difference between Groups and Teams

Basis Groups Teams

Meaning Number of people who Number of persons

are connected by some associated together in
shared activity, interest work or activity.
and equality

Share goal May not share common May share common

goals goals

Specific task Not assigned to Assigned to individuals

individuals
Independent and Members are Members are
interdependent independent interdependent

Known/Not known Members may not Members are known

known each other each other
 Accountability Individual Individual and mutual

Skills Random and varied Complementary

Synergy Sometimes negative Positive

Types of Teams:
1. Problem solving team: It includes 5 to 10 employees that from same
department discuss ways of improving quality, efficiency, the work
environment. These are temporary teams established to attack specific
problems in the work place.

2. Self managed team: It includes 10 to 15 employees take on the

responsibilities of their former supervisors.

3. Cross functional team: It is the team in which employees are from the
same hierarchical level but from different work places who come
together to accomplish a task.

4. Virtual teams: These are the teams that may never actually meet
together in a same room. Their activities take place on computer via
teleconferencing and other electronic system.

Effective Teams:

Context:

• Adequate resources: There should be proper tools for each and every
type of job.
 • Effective leadership and structure: For effective teams, there must be
effective leadership and structure of organisation. Self-managed teams
also need leaders. They are important in multi-team system.

• Climate of trust: Member must trust each other and the leader.

• There should be performance and reward system also in the

organisation that reflect team contributors.

Compositions:

It includes:

• Ability of members: There should be a technical expertise in the teams.

Members must be problem-solving and decision maker as well as good
in interpersonal skills.

• Personality of members: Members must be personality of

conscientiousness, openness to experience and agreeable to the
performance of team.

• Allocating roles and diversity: To make teams effective, many necessary

roles must be filled. Diversity can often leads to lower performance.

• Size of teams: The team size as smaller as better i.e. 5 to 9 is optimal.

Work design: Work should design in such a manner that it includes:

• Skill variety: Abilities to use different skills and talents.

• Freedom and autonomy: Ability to work independently.
• Task identity: Ability to complete a whole and identifiable task or
product.
• The task significance: Working on the task or project that has a
substantial impact on others.
Process:

• Commitment to common purpose: Should provide direction and must

have willingness to adjust the plan if necessary.
• Establishment of specific team goals: Goals must be specific,
measurable, challenging and realistic in nature.
• A managed level of conflict: Task conflicts are helpful but interpersonal
conflicts should not in the organisation.
 Conflict Management

It is the process that begins when one party perceives that another party
has negatively affected something that the first party cares about.

• It can be defined in many ways and can be considered as an expression

of hostility, negative attitudes, aggression, rivalry and
misunderstanding.

• It may emerge between different organisations or within organisations

or between organisations and their social and political environments.

Functional and Dysfunctional conflicts:

1) Functional conflict: Conflicts that supports the individual and group

goals, which leads to higher performance is called functional conflict.

→ Conflicts develops cohesiveness within the group members.A

group goal therefore, becomes a priority and individual goals then
relegated to the secondary position.

→ It leads to innovations and creativity, as there is completing spirit

among various groups.

→ It provides challenging work environment and enhances

opportunities for self-development of group that leads to
formation of group norms.
 2) Dysfunctional conflict: Conflicts that hinders individual or group
performance is called dysfunctional conflicts.

→ These conflicts arise when it does not lead to solution.

→ When basic goals of the organisation are neglected.

→ When conflict may lead to absenteeism and subsequently to

increased turn over if not controlled in time.

The conflict may be:

❖ Intra-personal conflict: It is also the conflict within individuals.

→ Value conflict: Every individual has to play certain roles, which

conforms to his value system. But there are some situations when
an individual has to compromise on value system and beliefs.

For example: Finance manager of the organisation, while

submitting tax returns to govt. may conceal some facts, which may
go against his beliefs and value system. This situation may cause
tension and conflicts within individual.

→ Decision-making: Problem solving is one of the important jobs

every individual has to undertake in work environment. Every
problem has various courses open. At that time, it is difficult for
the person to select an appropriate course. This situation causes
conflict between the individuals.

❖ Inter-personal conflicts: It related to the conflicts between two or

more individuals. It caused due to disagreement over goals and
objectives of an organisation. Every organisation is full of unresolved
issues, problems and differing situations that lead to conflict.
Individuals have a difference of opinions on selection of particular
 course of action and that leads to disagreements and often results in
conflicts.

❖ Intra- group conflicts: It is related to values, status and roles played by

individuals in the group and the group norms. Individuals want to
remain in the group for social needs but may disagree with the methods
procedures followed by the group. The conflicts may arise when social
changes are incorporated in the group. When group faces new
challenges, then values or individuals also changes and hence leads to
intra-personal conflicts.

❖ Inter-group conflicts: Conflicts between different groups, departments

and sections are called inter-group conflicts.

For example: Conflicts between production and sales department

over the quality being produced and the customer’s requirements.

❖ Inter-organisational conflicts: It takes between two dependent

organisations. It can take place between government organisations,
unions and operating industries. Management must try and reduce
inter-organisational conflicts by adopting positive approach and by
following strict rules and regulations laid down by govt. agencies.

❖ Intra-organisational conflicts: It may be vertical, horizontal, line-staff

and role-based conflicts.

Horizontal: It caused due to incompatibility of goals, sharing limited

resources, & difference in time orientation.

Vertical: It refers to conflicts that might take place between different

levels of hierarchy.
 Conflict process:

1. Latent conflict: It is the 1st stage of conflict when conflict promoting-

situations appear on the scene between individuals and groups. In this
stage, potential conflicts including forces exist. For example: demand
for various resources by departments when some may get and be
satisfied and others may not get and be dissatisfied. Hence, there may
exist a situation between two groups. At this stage, seeds of
dissatisfaction have sown.
2. Perceived conflicts: When one party frustrates the design of other
party, people perceive that a conflictual condition exist. For example:
Sales department may need additional budget for promotional activities
which financial manager may not release. The sales manager may
attribute lack of finance as potential cause for fall in sale. Thus, a conflict
between two may brew. At this stage, a conflict does not surface.
3. Felt Conflict: At this stage, conflict is actually felt, and cognized. As
stated earlier, the funds are not released by the finance manager and the
problem is being surfaced and there is likelihood of confrontation.
4. Manifest conflict: In this stage, there is not only recognition or
acknowledgement of conflicts but also manifestation of conflict by
covert or overt behaviour. It is the stage of open dispute. Both parties
devise their strategies to face each other.
5. Conflict resolved: Conflict between parties can be resolved by 5
different modes.
• Avoidance: One or both parties could avoid facing the conflict. Let
A party avoid facing B party. When situation reaches a point of
negligence by A party, B party make take advantage of the
 situation. By avoiding, the individual might side step, postpone or
even withdrew from conflicting situation. This strategy is useful
when issues involved in conflicts are of very minor nature.

• Completing: This strategy may be adopted when other strategies

of conflict resolution are not workable. It is useful in emergencies
where quick decisions are required. This strategy is based on win-
lose principle of managing conflicts. The manager who are high in
power base have an added advantage in using completing strategy
because people from opposite side would not dare confront a
person who is so powerful. The managers who are low on
completing mode, are likely to feel powerless in many situations.
Not realizing that tough they have power but they are not
comfortable in using it. By trying to use power, one could enhance
one’s achievement.

• Collaborating: It is the strategy where one party attempting to

work with other party in cooperative manner and find solutions
to problems for mutual benefits. The strategy involves
identification of areas of disagreement and examining the issues
in greater detail and a workable solution arrived at, which is for
mutual benefits. This strategy signifies when two sets of solutions
are important for both parties to be compromised. Collaborating
is time and energy consuming. Not all situations require
collaborating. Overuse of this also leads to some effect on
performance.

• Accommodating: In this, one person scarifies his own interest for

accommodating another person’s interest. It is a form of selfless
generosity obeying other person’s point of view. This mode is
usually adopted when other person’s view point is stronger and
you want to achieve goodwill, indicates you are responsible. This
strategy is important when you want other person to give later
date when it favours you.
 • Compromising: In conflict situation, compromising is a mode
when both the parties try to find out some expedient, mutual
acceptable solution that sacrifice both the parties partially. In
compromising, there is no clear winner or loser. None of party
fully satisfied as they accept the solution which is not complete to
either of the parties.

6. Conflict aftermath: Once the conflicts resolved between the two

parties, there is always a party, which is looser because the resolution is
the outcome of win- lose or compromising strategy, a stage is a set for
subsequent conflicts episodes. A party which may defeated may start
preparations and be on the lookout for the assault to take revenge.
Conflicts resolutions have been added as an additional box in the figure
to elucidate that conflict aftermath is direct function of the results of the
conflicts resolution style adopted and exercised in any given situations.