Unit II

Motivation

Motivation
What exactly does it take to motivate today's workers? This question has been the focus of a great deal of
attention among both practising managers and organizational scientists. Scientists have defined motivation as the
process of arousing, directing, and maintaining behaviour towards a goal. As this definition suggests, motivation
involves three components. The first component, arousal, has to do with the drive, or energy behind our actions. For
example, when were hungry, we are driven to seek food. The direction component involves the choice of behaviour
made. A hungry person may make many different choices-eat an apple, have a pizza delivered, go out for a burger,
and so on. The third component, maintenance, is concerned with people's persistence, their willingness to continue to
exert effort until a goal is met. The longer you would continue to search for food when hungry, the more persistent
you would be.
Motivation is defined as individual’s intention or willingness to put maximum effort in his/her work to reach
organizational goals and enhance one’s ability to satisfy some individual needs. The cyclic process of motivation
starts from unsatisfied needs Tension Drives Search Behaviour Satisfied Needto end with Reduced
Tension. There are three major elements related to motivation: Effort, Goals and Needs.

Definition
“A state of mind, desire, energy or interest that translates into action”
or
“The inner drive that directs a person’s behaviour toward goals”
“The processes that account for an individual’s intensity, direction and persistence of effort toward attaining a
goal”
Key Elements
Intensity: how hard a person tries. Intensity is concerned with how hard a person tries. This is the element most of us
focus on when we talk about motivation.
Direction: toward beneficial goal. Direction is the orientation that benefits the organization.
Persistence: how long a person tries. Persistence is a measure of how long a person can maintain his/her effort.
Motivated individuals stay with a task long enough to achieve their goal.
According to George R. Terry, "Motivation is the desire within an individual that stimulates him or her to
action."
In the words of Robert Dubin, it is "the complex of forces starting and keeping a person at work in an
organization".
Viteles defines motivation as "an unsatisfied need which creates a state of tension or disequilibrium, causing
the individual to move in a goal directed pattern towards restoring a state of equilibrium, by satisfying the need."
"Motivation refers to the degree of readiness of an organism to pursue some designated goals and implies the
determination of the nature and locus of force inducing a degree of readiness" (Encyclopaedia of Management).
On the basis of above definitions, the following observations can be made regarding motivation:
 Motivation is an inner psychological force, which activates and compels the person to behave in a particular
manner.
 The motivation process is influenced by personality traits, learning abilities, perception and competence of an
individual.
 A highly motivated employee works more efficiently and his level of production tends to be higher than
others.
 Motivation originates from the-needs and wants of an individual. It is a tension of lacking something in his
mind, which forces him to work more efficiently.
 Motivation is also a process of stimulating and channelising the energy of an individual for achieving set
goals.
 Motivation also plays a crucial role in determining the level of performance. Highly motivated employees get
higher satisfaction, which may lead to higher efficiency.
 Motivating force and its degree may differ from individual to individual depending on his personality, needs,
competence and other factors.

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Organizational Behaviour
 The process of Motivation helps the manager in analysing and understanding human behaviour and finding
but how an individual can be inspired to produce desirable working behaviour.
 Motivation may be positive as well as negative. Positive motivation includes incentives, rewards and other
benefits while negative motivation implies some punishment, fear, use of force etc.
 The motivation procedure contributes to and boosts up the morale of the employees. A high degree of
motivation may lead to high morale.
Features of Motivation
The following are the features of motivation:
 It is an internal feeling and forces a person to action.
 It is a continuous activity.
 It varies from person to person and from time to time.
 It may be positive or negative.
Importance of Motivation
Motivation is an important part of managing process. A team of highly qualified and motivated employees is
necessary for achieving objectives of an organization because of the following reasons:
 Motivated employees make optimum use of available resources for achieving objectives.
 Motivation is directly related to the level of efficiency of employees.
 Motivated employees make full use of their energy and other abilities to raise the existing level of efficiency.
 Motivated employees make goal-directed efforts. They are more committed and cooperative for achieving
organizational objectives.
 Motivated employees are more loyal and sincere to an organization. These factors help reduce absenteeism
and labour turnover.
 Motivation is considered as a backbone of good industrial relations.
 Effectively motivated employees get more job satisfaction and possess high morale.
 Motivation also helps in improving the image of an organization.
Motivation process begins with identification of individual needs. For example, when an employee feels
underpaid then what, then he tries to fulfil his needs by asking for a raise or by working harder to earn a raise or by
seeking a new job. He then chooses to pursue one or more of these options for instance, working harder while
simultaneously looking for a job. If his hard work resulted in a pay rise, he probably feels satisfied and will continue
to work hard. But if no raise has been provided he is likely to try another option. Since people have many different
needs, the satisfaction of one need or set of needs is likely to give rise to the identification of other needs. Thus, the
cycle of motivation is constantly repeated.
Understanding human motivation is crucial for managing people. Extensive research has been performed to
find out what makes people work and how to motivate them. This includes managers, social scientists, behaviourists
and psychologists. A number of theories have been developed, even though there is no universally acceptable
motivation theory. Understanding these theories facilitates the managers to get a better insight into the human
behaviour.
Early Theories of Motivation
These theories have been propounded by behaviourists during 1950’s and are best known for explaining
employee motivation. These early theories are famous for the reasons they:
i) They represent a foundation for the contemporary theories and
ii) Managers in the contemporary corporate world use these theories for employee motivation.
Maslow’s Need Hierarchy Theory
Maslow identified five different types of needs which, he claimed, are activated in a hierarchy, beginning at
the lowest, most basic needs, and working upward to the next level. Furthermore, these needs are not aroused all at
once or in random fashion. Rather, each need is triggered step by step, only after the one beneath it in the hierarchy
has been satisfied. The specific needs, and the hierarchical order, in which they are arranged, are mapped out in Table
1. Each of Maslow's five categories of needs is explained below.
Physiological Needs
The lowest-order is defined by physiological needs, those that satisfy fundamental biological drives, such as
the need for air, food, water, and shelter. There are many things that companies do to help meet their employees' basic

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Motivation
physiological needs. Probably the simplest involves paying them a living wage, money that can be exchanged for food
and shelter. But, there's more to satisfying physiological needs than giving employees a pay check. There are also
coffee breaks and opportunities to rest. Staying physically healthy involves more than just resting; it also requires
exercise, something that the nature of many of today’s technologically advanced jobs does not permit. With this in
mind, thousands of companies are providing exercise facilities for their employees. Some companies, such as
Southern California Edison and Hershey Foods, offer insurance rebates to employees who live healthy lifestyles(e.g.,
physically fit non-smokers) and raise the premiums of those at greater risk for illness. In this manner, not only are the
insurance burdens distributed fairly, but the incentives encourage wellness activities that promise to benefit both
employers and employees. So at work place, this need is met by providing good working conditions, attractive wage
or salary, subsidized housing, free catering etc.
Safety Needs
After physiological needs have been satisfied, the next level of need is triggered-safety needs. These are
concerned with the need to operate in an environment that is physically and psychologically safe and secure, free from
threats of harm. Organizations help satisfy their employees' safety needs in several ways. For example, they protect
workers from hazards in the environment by fitting them with goggles and hard hats. Even seemingly safe work
settings, such as offices, can be swamped with safety hazards. This is why efforts are made to spare office workers
from eyestrain, wrist injuries (such as the increasingly prevalent carpal tunnel syndrome), and back pain, by using
specially designed computer monitors, desks, and chairs. Physical safety may also involve such basic tools as security
and fire-prevention. Today's organizations show considerable interest in protecting the safety of their employees.
Although government regulations dictate many safety practices, it is safe to say that employers independently
recognize the motivational benefits related to providing safe work environments. To sum up at work level, this need
can be met by providing private health insurance cover, attractive pension provisions, safe working conditions etc.

Table 1: Maslow’s Need Hierarchy Theory

General Factors Need Level Organization Specific Factors
1. Growth 1.Self Actualization 1.Challenging work
2. Achievement 2. Creativity
3. Advancement 3. Advancement in organization
4. Achievement in Work
1. Recognition Ego, Status and 1. Job Title
2. Status Esteem 2. Merit Pay Increase
3. Self-esteem 3. Peer/SupervisoryRecognition
4. Self-respect 4. Work Itself
5. Responsibility
1. Companionship Social 1. Quality of Supervision
2. Affection 2. Compatible Work Group
3. Friendship 3.Professional Friendship
1. Safety Safety and Security 1 Safe Working Conditions
2. Security 2. Fringe Benefits
3. Competence 3. General Salary Increases
4. Stability 4.Job Security
1. Food Physiological 1. Heat and Conditioning
2. Shelter 2. Base Salary
3. Sex 3. Cafeteria
4.Working Conditions
McGregor's Theory X and Theory Y
Douglas McGregor is best known for his formulation of two sets of assumptions about human nature: Theory
X and Theory Y. Very simply, Theory X presents an essentially negative view of people. It assumes that workers have
little ambition, dislike work, want to avoid responsibility, and need to be closely controlled to work effectively.
Theory Y offers a positive view. It assumes that workers can exercise self-direction, accept and actually seek out
responsibility, and consider work to be a natural activity. McGregor believed that Theory Y assumptions better
captured the true nature of workers and should guide management practice.

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Organizational Behaviour
Theory X
Theory X represents the traditional approach to managing and is characterized by the following basic
assumption about human beings.
 The average human being has an inherent dislike of work and will avoid it if he can.
 Because of human characteristic of dislike of work, most people must be coerced, controlled, directed, and
threatened with punishment to get them to put forth adequate effort towards the achievement of organizational
objectives.
 The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition,
and wants security above all.
 Once the team leaders tend to have the above-mentioned negative assumptions about their members,
consequently, they will adopt the following strategies to influence them.
 Control measures or strict supervision is properly exercised to get results from them.
 Such control can be achieved by the appropriate use of rewards and punishment.
Managerial Implications of Theory X
The implication for a manger working in an organization with these premises is that the group will be strictly
controlled and supervised. Decisions will be made largely by the manager and communicated in writing or verbally in
a formal situation. Members of the group will rarely be involved in determining their own tasks. Theory X usually
operates in traditional, highly centralized organizations.
Theory Y
Theory Y is more people oriented. It refers to Maslow’s hierarchy of needs, particularly the high-order needs
and the motivation to fill these needs at work. It is based on the following assumptions. The following are some of the
assumptions of Theory Y.
 The expenditure of physical and mental effort is as natural as play or rest.
 External control and threat of punishment are not the only means for bringing about effort toward
organizational objectives. People will exercise self-direction and self-control in the services of objectives to
which they are committed.
 Commitment to objectives is a function of rewards associated with their achievement.
 The average human beings learn, under proper condition, not only to accept but to seek responsibility.
 The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of
organizational problems is widely, not narrowly distributed in the population.
 Under the conditions of modern industrial life, the intellectual potentialities of the average human being are
only partially utilized.
Managerial Implications of Theory Y
Leaders operating under these assumptions will be more likely to consult the group and encourage members
to contribute to decision making and work without strict supervision. Communication between the group and the
leader will be two of the members of the group. The acceptance of the Theory Y approach, with its tenets of
participation and concern for worker morale, encouraged managers to begin practising such activities as i)delegating
authority for many decision, ii) enlarging and enriching jobs of workers by making them less repetitive, iii) increasing
the variety of activities and responsibilities and iv) improving the free flow of communication within the organization.
The major criticisms are that too much emphasis was put on informal group process with knowledge of the
complexities of group dynamics. Also the strategies evolved based on Theory Y may be successful in one
organization and may not be successful in another.
Two-Factor Theory (Motivation-Hygiene Theory)
Herzberg’s two-factor theory of motivation suggests that there are two sets of factors which either lead to job
satisfaction or dissatisfaction. They are Motivating factors and Hygiene factors. Herzberg collected data from 200
accountants and engineers asking a simple question such as “Can you describe, in detail, when you feel exceptionally
good about your job” Similarly, “Can you describe, in detail, when you feel exceptionally bad about your job”? Good
feelings about the job were reflected in comments concerning the content and experiences of the job (e.g., doing good
work or a feeling of accomplishment and challenge), bad feelings about the job were associated with context factors,
that is, those surrounding but not direct involving in the work itself (e.g., salary and working condition) This study
revealed two distinct types of motivational factors: satisfiers and dissatisfiers.
Herzberg resulted in two specific conclusions:

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Motivation
1) There is a set of extrinsic job conditions that, when not present, result in dissatisfaction among employees. If
these conditions are present, this does not necessarily motivate employees. These conditions are the
dissatisfiers or hygiene factors because they are needed to maintain at least a level of no dissatisfaction. These
factors are related to the context of the job and are called dissatisfiers. These include:
a) job security
b) salary
c) working condition
d) status
e) company policies
f) supervision
g) Interpersonal supervision
h) Fringe benefits
2) A set of intrinsic job conditions exist that help to build levels of motivation, which can result in good job
performance. If these conditions are not present, they do not result in dissatisfaction. These set of aspects are
related to the content of the job and are called satisfiers. These include:
a) Achievement
b) Recognition
c) Work itself
d) Responsibility
e) Advancement
f) Personal growth and development
Motivating Factors
The presence of motivating factors always ensures job satisfaction and happiness among the employees. They
are: achievement, recognition, responsibility, advancement, growth and the work itself. These motivating factors are
relating to the work content factors.
Hygiene Factors
The other set, which leads to dissatisfaction, is the hygiene factors such as salary, company policy,
supervision, status, security and working conditions. These hygiene factors are relating to the work contextual factors.
Herzberg argued that improvement in the hygiene factors would only minimize dissatisfaction but not increase
satisfaction and motivation.
Managerial Implications
In order to motivate employees, the managers must ensure to provide the hygiene factors and then follow the
motivating factors. Hertzberg’s motivation-hygiene theory proposes that intrinsic factors are related to job satisfaction
and motivation, whereas extrinsic factors are associated with job dissatisfaction. According to Herzberg, the factors
that lead to job satisfaction were separate and distinct from those that lead to job dissatisfaction. Therefore, manages
who sought to eliminate factors that created job dissatisfaction could bring about workplace harmony but not
necessarily motivation. Because they do not motivate employees, the extrinsic factors that create job dissatisfaction
were called hygiene factors. When these factors are adequate, people will not be dissatisfied; but at the same time they
may not be fully satisfied. They will be in neutral state. If we want to motivate people on their jobs, it is suggested to
give much importance on those job content factors such as opportunities for personal growth, recognition,
responsibility, and achievement. These are the characteristics that people find intrinsically rewarding. Herzberg model
sensitizes that merely treating the employees well through the good company policies is not sufficient to them
motivated. Managers should utilize the skills, abilities, and talents of the people at work through effective job
designing. In other words, the work given to employees should be challenging and exciting and offer them a sense of
achievement, recognition, and growth. Unless these characteristics are present in the job, employees will not be
motivated.
In Herzberg’s framework, these managerial reactions have focused primarily on the hygiene factors
surrounding the job, which has resulted in bringing individual to the theoretical “zero point” of motivation. The two-
factor theory would predict that improvements in motivation would only appear when managerial action focused not
only the factors surrounding the job but on the inherent in most assembly line jobs and developing jobs that can
provide increased levels of challenge and opportunities for a sense of achievement, advancement, growth and personal
development.

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Organizational Behaviour

ERG Theory
Calyton Alderfer proposed a modified version of Maslow’s need hierarchy and labelled as ERG theory.
Alderfer’s ERG refers to three groups of core needs- Existence, Relatedness and Growth (ERG).
Existence Needs
These needs are all the various forms of physiological and material desires, such as hunger, thirst and shelter.
In organizational settings, the need for pay, benefits, and physical working conditions are also included in this
category. This category is comparable to Maslow’s physiological and certain safety needs.
Relatedness Needs
These needs include all those that involve interpersonal relationships with others in the workplace. This types
of need in individuals depends on the process of sharing and mutuality of feelings between others to attain
satisfaction. This category is similar to Maslow’s safety, social and certain ego-esteem needs.
Growth Needs
These needs involve a person’s effort towards creative or personal growth on the job. Satisfaction of growth
needs result from an individual engaging in tasks that not only require the person’s full use of his or her capabilities,
but also may require the development of new capabilities. Maslow’s self-actualization and certain of his egoesteem
needs are comparable to those growth needs.

ERG theory is based upon three major propositions

i) The less each level of need has been satisfied, the more it will be desired(need satisfaction). For example, the
less existence needs (pay) have been satisfied on the job, the more they will be desired.
ii) The more lower level needs have been satisfied, the greater the desire for higher level needs (i.e., desire
strength) For example, the more existence needs have been satisfied for the individual worker (pay), the
greater the desire for relatedness needs (satisfying interpersonal relationships)
iii) The less the higher level need have been satisfied, the more the lower level needs will be desired (i.e., need
frustration), for example, the less growth needs have been satisfied (challenging work), the more relatedness
needs will be desired (satisfying interpersonal relationships).
Difference between Alderfer’s ERG and Maslow’s Need Hierarchy
ERG theory differs from Maslow’s need hierarchy in two aspects. (a) Alderfer highlighted that once an
individual’s higher level need is not fully satisfied or encounters difficulty in fulfilling these needs resulting in
frustrations and disappointment, the person will exhibit a strong desire to regress to a lower level needs where he/she
finds more comfort and satisfaction. (b) Alderfer further stated that an individual may have an intention to fulfill more
than one need at the same time. In other words, individuals maybe working towards fulfilling both their relatedness
needs and growth needs or their existence and related needs simultaneously.
Managerial Implications of ERG Theory
Alderfer has proposed two sets of views on individual’s aspirations and fulfillment. One is satisfaction-
progression and other frustration-regression. Satisfaction-progression is similar to Maslow’s model in which once an
individual’s basic needs are satisfied, he/she will progress to the next level to satisfy the succeeding higher level to
have them satisfied. Alderfer proposed yet another view of individual’s aspirations and fulfilment. If people
eventually become frustrated in trying to satisfy their needs at one level, their next lower level needs will re-emerge
and they will regress to the lower level to satisfy more basic needs. This is called as frustration-regression. For
managers, ERG theory provides a more workable approach to motivation in organization. Because of the frustration-
regression approach component, it provides the manager with the opportunity of directing employee behavior in a
constructive manner even though higher order needs are temporarily frustrated.
In summary, ERG theory argues that satisfied lower-order needs lead to the desire to satisfy higher-order
needs; but multiple needs can be operating as motivators at the same time and frustration in attempting to satisfy a
higher-level need can result in regression to a lower-level need.

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Motivation
Mc-Clelland's Need Theory of Motivation
David C. McClelland and his associate Atkinson have contributed to an understanding of motivation by
identifying three types of basic motivating needs. These needs have been classified as:
1. Need for Achievement
2. Need for Power
3. Need for Affiliation
Need for Achievement
This refers to the drive to excel, to achieve in relation to a set of standards and to strive to succeed. People
with a high need for achievement are striving for personal achievement rather than for rewards of success. They have
a desire to do something better or more efficiently than it has been done before. They prefer jobs that offer personal
responsibility for finding solutions to problems. People with a high need for achievement, always feel ambitious to be
successful; are ever prepared to face challenging situations and set challenging goals for themselves. They are prone
to take calculated risks; and possess a high sense of personal responsibility in getting jobs done. These people are
concerned with their progress, and feel inclined to put in longer hours of work" Failures never dishearten them and
they are always ready to put in their best efforts for excellent performance.
Need for Power
According to this theory the need for power, which might be defined as the desire to be influential in a group
and to control one's environment is an important motivation factor. Research suggests that people with a strong need
for power, are likely to be superior performers and occupy supervisory positions. Such types of individuals generally
look for positions of leadership, they act effectively, are outspoken, have a stubborn character and exert authority.
This refers to the need to make others behave in a way that they would not have behaved otherwise. Individuals high
in need for power enjoys being ‘in-charge’, strive for influence over others, and prefer to be in competitive and status
oriented situations.
McClelland distinguished two types of power- Personal Power and Institutional Power.
Individuals high in personal power like to inspire subordinates and expect that latter to respect and obey them.
Such behaviours gratify their own need for power in a personal sense. Managers, who are high in institutional power,
tend to exert authority and influence so as to achieve the goals of the organization rather than to gain any personal ego
satisfaction. McClelland describes the institutional power managers as “organization minded” and getting things done
in the interest of the organization. That is, the institutional power manager exercises power in the interests and welfare
of the organization. Institutional power managers are said to be very effective since they are willing to somewhat
sacrifice their own interests for the organization’s overall wellbeing.
McClelland feels that institutional or social power is good for the organization and personal power is
detrimental to the overall interests of the organization. Implications for Need for Power:
Persons with high need for power would naturally be turned on by holding positions of authority and
influence in the organization. They like to take charge and be in control of situations. Placing such individuals in high
level positions will help them to gratify their own needs as well as get many of the organization’s policies and orders
followed and carried out by employees.
Need for Affiliation
The need for affiliation means the desire for human companionship and acceptance. Those with a high need
for affiliation often behave the way they think other people want them to, in an effort to maintain friendship. They
prefer a job that entails a good deal of social interaction and offers opportunities to make friends. The principal
characteristics of such people are as follows:
 Desire to like and be liked.
 Enjoy company and friendship.
 Prefer cooperative situation.
 Excel in group task.
 Star attraction in gathering.
 Leadership qualities.
This need is closely associated with the "social-type” of personality, who are sociable, friendly, cooperative
and understanding. They are usually gregarious by nature and like to work with others in a friendly atmosphere. Team
work, co-operative efforts, and joint problem-solving sessions, and committee assignments are all suited for those
high in Need for Affiliation. Persons with high motivation for power and affiliation have better chances of becoming
good managers.

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Organizational Behaviour
Victor Vroom’s Expectancy Theory
The main postulates of expectancy theory are centred on the belief systems of an individual. Expectancy
theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the
act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Expectancy
theory holds that people are motivated to behave in ways that produce desired combinations of expected outcomes.
Generally, expectancy theory can be used to predict motivation and behaviour in any situation in which a choice
between two or more alternatives must be made. For instance, it can be used to predict whether to quit or stay at a job;
whether to exert substantial or minimal effort at a task. Victor Vroom formulated a mathematical model of expectancy
in his 1964 book “Work and Motivation”.
Vroom's theory is summarized as follows:
The strength of a tendency to act in a certain way depends on the strength of an expectancy the act will be
followed by a given consequence (or outcome) and on the value or attractiveness of that consequence (or outcome) to
the actor?
Motivation, according to Vroom, boils down to the decision of how much effort to exert in a situation. This
choice is based on a two-stage sequence of expectations (effort-performance and performance-outcome). First,
motivation is affected by an individual's expectation that a certain level of effort will produce the intended
performance goal. For example, if you do not believe increasing the amount of time you spend studying will
significantly raise your grade on an exam, you probably will not study any harder than usual. Motivation also is
influenced by the employee's perceived chances of getting various outcomes as a result of accomplishing his or her
performance goal. Finally, individuals are motivated to the extent that they value the outcomes received. Vroom used
a mathematical equation to integrate the above concepts into a predictive model of motivational force or strength. For
our purposes however, it is sufficient to define and explain the three key concepts within Vroom's model-expectancy,
instrumentality and valence.
Expectancy
EffortPerformance Relationship Expectancy according to Vroom's terminology represents an individual's
belief that a particular degree of effort will be followed by a particular level of performance. In other words, it is an
effort-performance expectation. Expectancies take the form of subjective probabilities. As you may recall from a
course in statistics, probabilities range from 0 to 1. An expectancy of 0 indicates effort has no anticipated impact on
performance.
For example, suppose you have not memorized the keys on a keyboard. No matter how much effort you exert
your perceived probability of typing 30 error-free words per minute likely would be 0. An expectancy of 1 suggests
that performance is totally dependent on effort. If you decided to memorize the letters on a keyboard as well as
practice a couple of hours a day for a few weeks (high effort), you should be able to type 30words per minute without
any errors. In contrast, if you do not memorize the letters on a keyboard and only practice an hour or two per week
(low effort), there is a very low probability (say, a 20% chance) of being able to type 30 words per minute without
any errors.
The following factors influence an employee's expectancy perceptions:
 Self-esteem.
 Self-efficacy
 Previous success at the task.
 Help received from a supervisor and subordinates.
 Information necessary to complete the task.
 Good materials and equipment to work with.
Instrumentality
An instrumentality is a performance-outcome perception. It represents a person's belief that a particular
outcome is contingent on accomplishing a specific level of performance. Performance is instrumental when it leads to
something else. For example, passing exams is instrumental to graduating from college. Instrumentality range from 0
to 1.0.
An instrumentality of 1.0 indicates attainment of a particular outcome is totally dependent on task
performance. An instrumentality of 0indicates there is no relationship between performance outcomes. For example,
most companies link the number of vacation days to seniority, not job performance. Finally, instrumentality of 1.0
reveals that high performance ereduces the chance of obtaining an outcome while low performance increases the
chance. For example, the more you spend studying to get an A on an exam (high performance), the less time you will
have for enjoying leisure activities. Similarly, as you lower the amount of time spent studying (low performance), you

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Motivation
increase the amount of time that may be devoted to leisure activities.
Valence
Vroom used the term, valence that refers to the positive or negative value people place on outcomes. Valence
mirrors our personal preferences. For example, most employees have a positive valence for receiving additional
money or recognition. In contrast, job stress and being laid off would likely result in negative valence for most
individuals. In Vroom's expectancy model, outcomes refer to different consequences that are contingent on
performance, such as pay, promotions, or recognition. An outcome's valence depends on an individual's needs and can
be measured for research purposes with scales ranging from a negative value to a positive value. For example, an
individual's valence toward more recognition can be assessed on a scale ranging from -2 (very undesirable) to 0
(neutral) to +2 (very desirable).
Managerial Implications
It therefore suggested that managers should enhance effort-performance expectancies by helping employees
to accomplish their performance goals. Managers can do this by providing support and coaching and by increasing
employee’s self-efficacy. It is also important for managers to influence employees' instrumentalities and to monitor
valences for various rewards. On the basis of a detailed research on Vroom’s model researchers like Wanous, Keon
and Latack (1983) suggest that managers can make use of the concepts of Vroom’s model by working on the
following points:
 Determine the outcomes employees’ value.
 Identify good performance so that appropriate behaviours can be rewarded.
 Make sure employees can achieve targeted performance levels.
 Link desired outcomes to target edlevels of performance.
 Make sure changes in outcomes are large enough to motivate high effort.
 Monitor the reward system for inequities
 Reward people for desired performance; and do not keep pay decisions secret.
 Design challenging jobs.
 Tie some rewards to group accomplishments to build teamwork and encourage cooperation.
 Reward managers for creating, monitoring, and maintaining expectancies, instrumentalities, and outcomes
that lead to high
effort and goal attainment.
 Monitor-employee motivation through interviews or anonymous questionnaires.
 Accommodate individual differences by building flexibility into the motivation program.
Equity Theory of Motivation
J. Stacy Adams developed equity theory, based on the premise that workers pay attention to the relationship
between the inputs they contribute, such as skills, training, education, experience, effort, and time, and the outcomes
they receive, such as pay, benefits, status, job satisfaction, job security, and promotions. Motivation is based on the
perception of one’s own outcome/input ratio compared to that of a similar individual or group, called a referent.
Equity theory proposes that motivation is based on the worker’s perception of the work situation.
Equity occurs when an individual’s outcome/input ratio equals that of the referent. Because the comparison of these
ratios (rather than absolute levels) determines whether equity is perceived, equity can exist if there ferent receives
more than the person making the comparison. When workers perceive ratios to be equal, they are motivated to
maintain the status quo or increase inputs to receive greater outcomes. Inequity Unequal ratios result in tension and a
desire to restore equity. Overpayment inequity occurs when an individual perceives his or her outcome/input ratio is
greater than the referent’s. Underpayment in equity occurs when the individual perceives his or her ratio is less than
the referent’s. In either case, the individual is motivated to restore equity, according to equity theory.
Selection of Reference Person or Comparison Person
The selection of comparison person adds to the complexity of equity theory. Research studies reveal that the
type of reference person chose’s plays an important role in equity theory. There are four referent comparisons that an
employee can use.
1. Self-inside: An employee’s experiences in a different position inside his or her present organization.
2. Self-outside: An employee’s experiences in a situation or position outside his or her present organization.
3. Other-inside: Another individual or group of individuals inside the employee’s organization
4. Other-outside: Another individual or groups of individuals outside the employee’ sorganization.

28
Organizational Behaviour
Employees might compare themselves with other friends, neighbours, co-workers, colleagues in other
organizations. The type of reference person or comparison person an employee chose’s will be influenced by the
information the employee holds about referents, as well as by the attractiveness of the referent. There are many factors
which moderate the selection of reference person such as age, sex, education, tenure, nature of job, etc.
The positive and negative inequities can be denoted as follows:
Positive Inequity Outcomes for Person Outcomes for Other
>
Inputs of Person Inputs of Other
Negative Inequity Outcomes for Person Outcomes for Other
<
Inputs of Person Inputs of Other

Evaluation Evaluation Comparison of Feeling of Equity Equity Process

of Self of others Self with others or Inequity
oooooothersoth inequity
Ways to Restore Equity
ers inequity, there are several ways to restore equity:
Once an individual experiences
1. Change inputs or outcomes. Underpaid workers may try to reduce their inputs—by arriving late or by putting
in less effort—or to increase outcomes. Overpaid workers may try to increase inputs or decrease outcomes.
2. Change referent’s inputs or outcomes. Underpaid workers may try to reduce their referent’s outcomes— by
telling the boss a co-worker doesn’t deserve a bonus—or to get referents to increase inputs. Overpaid workers
could try to increase or decrease the outcomes referents receive.
3. Change perceptions of the situation. Equity can be restored through changes in perception of the inputs and
outcomes of the worker and the referent. A worker might realize that the referent had inputs that were
overlooked (i.e., additional education) and/or that the worker received additional outcomes (i.e., a sense of
accomplishment).
4. Change the referent. Usually referents chosen by workers are similar in characteristics such as age,
background, experience, and education levels. Sometimes the worker realizes that the referent was
inappropriate (e.g., older, more experienced, related to the boss, or superhuman). A change in the referent can
restore equity.
5. Leave the job or organization. Leaving the organization restores equity. The worker can seek a more
equitable work situation.
Equity theory provides the following three guidelines for managers to consider:
i) It emphasizes on equitable rewards for employees. When individuals believe that they are not being
rewarded in an equitable fashion, certain morale and productivity problems may arise.
ii) The concerning equity or inequity is not made solely on a personal basis but involves comparison with other
workers, both within and outside the organization. In other words, it is not only important how much an
employee is being paid, but how much he or she is being paid compared to other employees who have the
same or similar jobs.
iii) Individual reaction to inequity can include changes in inputs and changes in outcomes, with the level or
direction depending on whether the inequity was perceived to be underpaying or overpaying.
Managerial Implications of Equity Theory
Equity theory sensitizes managers to the fact that individuals often make equity comparisons and that
sometimes the rewards given by managers may have consequences which might be reflected in subordinates’
behaviours. This is especially true when visible rewards such as promotions, pay increases and bonuses are given to
employees. Managers must anticipate when the employees experience inequities and try to adjust the behaviour in
such a way by communicating the performance appraisal process to their employees. The proper explanation of how
the performance appraisal process is being carried out must be explained to all the employees. Further, the types of
rewards dispensed and creating a well-established system which takes care of the anomalies in the reward systems are
essential in maintaining inequity in the organization. Felt inequities are common in all organizations and hence it is
important for managers to manage equity dynamics intelligently and carefully. Managers should consider openly
sharing information on how allocation decisions are made, following consistent and unbiased procedures and
engaging in similar practices to increase the perception of procedural justice. By increasing the perception of
procedural fairness, employees are likely to view their bosses and the organization as positive even if they have
dissatisfied with pay, promotions and other outcomes.

29
Motivation

Group Dynamics

The term dynamics explains the interaction pattern within groups, noticeable and non-pressures exerted by
group members, the manner in which decisions are made in a group, how work gets done and how needs are met.
Understand such a phenomenon enable managers to understanding completely the group functioning.
Luthans made the statement, studying groups is especially valuable when the dynamics are analyzed. In this
context it is important to know the meaning of the term group dynamics. One view is that group dynamics describes
how a group should be organized and conducted.
Another view is that group dynamics as a topic consists of techniques. In this view, role playing,
brainstorming, focus groups, leaderless groups, group therapy, sensitivity training, team building, transactional
analysis, and Johari window are techniques related to groups and they form the content of group dynamics.
A third view is that group dynamics includes the areas related to the internal nature of groups, the process of
formation of groups, the structure of the group, internal processes of the group, the functioning of the group and the
effect of the group on its members, other groups and organization. Luthans supported the third view and developed his
chapter accordingly.

To understand the dynamics of groups it is essential to consider the way groups influence individuals and the
way individuals influence groups.
Source: Robbins and Sanghi,2005
What is a Group
“Two or more individuals interacting with each other in order to accomplish a common goal”

30
Organizational Behaviour
A Group is defined as collection of two or more individuals who are interdependent and interact with one
another for the purpose of performing to attain a common goals or objective. The principal characteristics presented
in this definition – goals, interaction and performance are crucial to the study of behaviour in organizations. A group
is a collection of individuals in which the existence of all (in their given relationships) is necessary to the satisfaction
of certain individual needs to each. In order to satisfy certain needs relating to social interactions, employees may
informally (or formally) join together to form various social, civic, or recreational groups within organizations.
A group is more than simply a collection of people. But, what exactly is it that makes a group a group?
Social scientists have formally defined a group as a collection of two or more interacting individuals with a
stable pattern of relationships between them who share common goals and who perceive themselves as being a group.
Let's consider the various elements of this definition separately.
First, groups are composed of two or more people in social interaction. In other words, the members of a
group must have some influence on each other. Whether the interaction between the parties is immediate and occurs
face-to-face, such as in committee meetings, or is delayed, such as might occur when a written draft of a document is
circulated for comments, the parties must have some impact on each other to be considered a group.
Second, groups must possess a stable structure. Although groups can change, and often do, there must be
some stable relationships that keep group members together and functioning as a unit. A collection of individuals that
constantly changes (e.g., those waiting on the bank line with you) would not be considered a group. A third
characteristic of groups is that members share common interests or goals. For example, members of a company's
safety committee all share a common goal in keeping the workplace free of danger. Fourth, and finally, to be a group,
the individuals involved must perceive themselves as a group. Groups are composed of people who recognize each
other as a member of their group and they can distinguish these individuals from non-members. Whether it's the
members of a corporate board of directors or a company softball team, people know who is in their group and who is
not.
In contrast, the people waiting with you in line at the bank probably don't think of each other as being
members of a group. Although they stand close together and may have passing conversations, they have little in
common (except, perhaps, a shared interest in reaching the front of the line) and fail to identify themselves with the
others in the line. As these four characteristics suggest, groups are very special collections of individuals. Despite
these specific requirements, there are a wide variety of different types of groups that maybe identified within
organizations.
Theories of Group Formation
Propinquity theory
The most basic idea is propinquity. According to it, individuals affiliate with one another because of spatial or
geographical proximity.
A more comprehensive theory is that of George Homans. It is based on activities, interactions, and
sentiments. The more activities the persons share, the more numerous will be their interactions and the stronger will
be their sentiments. It is not physical proximity alone but shared activity and interaction and positive sentiment that
lead to formation of groups.
Balance Theory (Theodore Newcomb's Balance Theory) According to this theory, persons are attracted to one
another on the basis of similar attitudes toward commonly relevant objects and goals. Once the relationship is formed,
a balance is maintained between the attraction and the common attitudes. If an imbalance occurs, there is an attempt to
restore the balance, and if the balance cannot be restored, the relationship dissolves.
Exchange Theory of Group Formation
An interaction between two or more persons has rewards and costs. Rewards from interactions gratify needs.
Cost is incurred due to anxiety, frustration, embarrassment, and fatigue
Types of Groups
Various methods are used to classify the types of groups that exist in our organizations. In organizations, the
predominant operating groups are the functional groups, task or project groups and interest groups. In addition, groups
are also classified as formal and informal groups.
Formal and Informal Groups
Formal Groups: are collections of employees who are made to work together by the organization to get the job done
smoothly and efficiently. For example, if five members are put together in a department to attend to customer

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Motivation
complaints they would be a formal group. The formal groups are those whose primary purpose is facilitating, through
member interactions, the attainment of the goals of the organization.
Informal Groups: Informal groups are groups that emerge or randomly get formed due to the formal group
members’ interaction with each other, and thereby develop common interest. For example, members who are showing
interest in cricket will join together and share and enjoy talking about the cricket games. Informal groups provide a
very important service by satisfying their members’ social needs. Because of interactions that result from the close
proximity of task interactions, group members play cricket together, spending their tea breaks together etc.
Functional Groups
The functional group in an organization is a group generally specified by the structure of the organization. It
involves a superior-subordinate relationship and involves the accomplishment of ongoing tasks and generally
considered as formal group. Example Manager of accounting department supported by staff accountants, financial
analyst, and computer operators, etc.
Task or Project Groups
When a number of employees are formally brought together for the purpose of accomplishing a specific task –
for a short-term or long term period – such a collection of individuals is called a task or project group. For example,
the plant manager of a chemical processing plant may be interested in identifying potential safety problems in the
plant. To provide a coordinated effort, the manager creates a four-person task force consisting of the production
superintendent, maintenance superintendent, director of engineering and the safety engineer. The group members will
deliberate these issues bring out suitable remediable measure for those safety problems within a deadline period. If
any problems are found, the plant manager may create other task forces to work toward the elimination of the
potential problems. These activities create a situation that encourages the members of the task force to communicate,
interact and to coordinate activities, if the purpose of the group is to be accomplished.
Interest and Friendship Groups
The group members formed relationships based on some common characteristics such as age, political belief,
or interests. Generally, it can be considered as formal or informal group. Employees who joined together to have their
fringe benefits continued to have its implementation, to support a peer who has been fired, or to seek more festival
holidays etc. they tend to unite together to further their common interest. Groups often develop because the individual
members have one or more common characteristics. This is called friendship groups. For example, recreation clubs,
social groups etc.

Formal Groups Informal Groups

 Result from the demands and processes of  Result from natural groupings of people in
an organization work environments in response to social
 Designated by the organization as a means needs
to an end  Are important for their own sake
 Command group  Interest groups
 Comprises subordinates reporting directly to  Comprises workers coming together to
a give supervisor achieve a mutual objective
 Task group  Friendship groups
 Comprises employees who work together to  Comprises workers who share something in
complete a particular task or project. common
Formal groups—those defined by the
organization’s structure, with designated work Informal groups—alliances that are neither
assignments establishing tasks. formally structured nor organizationally
a) The behaviours that one should engage determined.
in are stipulated by and directed toward
organizational goals. a) Natural formations in the work
b) An airline flight crew is an example of a environment in response to the need for
formal group. social contact
b) Three employees from different
departments who regularly eat lunch
together is an informal group.

32
Organizational Behaviour

Reasons for Joining Groups

The most popular reasons for joining a group are related to our needs for security, identity, affiliation, power
and engaging in common tasks.
Security
By joining a group, members can reduce the insecurity of being alone. The membership will make them feel
stronger, gaining resistant to threats, having fewer self-doubts, etc. New employees are particularly vulnerable to a
sense of isolation and turn to the group for guidance and support.
Status
Inclusion in a group that is viewed as important by others provides recognition and status for its members.
Being a member of Rotary Club, the members feel pride and gain status and recognition.
Self-Esteem
Groups can provide people with feelings of self-worth. That is, in addition to conveying status to those
outside the group, membership can also give increased feelings of worth to the group members themselves. The self-
esteem is bolstered when members are accepted by a highly valued group. Being assigned to a task force whose
purpose is to review and make recommendations for the location of the company’s new corporate head quarter scan
fulfill one’s intrinsic needs for competence and growth.
Affiliation
Groups can fulfil social needs. People enjoy the regular interaction that comes with group membership. For
many people, these on-the-job interactions at work are the primary source for fulfilling their needs for affiliation.
Power
For individuals who desire to influence others, groups can offer power without a formal position of authority
in the organization. As a group leader, he or she may be able to make requests of group members and obtain
compliance without any of the responsibilities that traditionally go either formal managerial position.
Goal Achievement
There are times when it takes more than one person to accomplish a particular task-there is a need to pool
talents, knowledge in order to complete a job. In such instances, management will rely on the use of a formal group.
GROUP DEVELOPMENT OR GROUP FORMATION
Tuckman And Jensons – Five Stage Life Cycle Model Of Group Formation
Tuckman and Jensons have outlined a five stage model of group development. The five stages are:
i) Forming: At this stage, group members try to comprehend where they stand in the group and how they are
being perceived by others in the group. The members are very cautious in their interactions with each other and
the relationships among the group members are very superficial. Members’ seldom express their feelings in the
group and the individual members who are trying to understand who they are in the group have concerns about
how they will fit in the group as permanent group members. This is characterized by much uncertainty about
group’s purpose, structure and leadership. Members are ‘testing the waters’ to determine what types of
behaviour are acceptable. This stage is complete when members have begun to think of themselves as part of a
group.
ii) Storming: At this stage, disagreement tends to get expressed among the group members, and feelings of
anxiety and resentment are also expressed. Some power struggle may ensure at this stage to determine who
should assume the informal leadership role in the group. This storming stage is also known as the sub-grouping
and confrontation. This group is characterized by intra-group conflict. Members accept the existence of the
group, but there is resistance to control the group imposes on individuality. There is sometimes conflict over
who will control the group. When this stage is complete, there will be a relatively clear hierarchy of leadership
within the group.
iii) Norming: This stage is characterized by close relationships and cohesiveness. The group sets norms, tries to
attain some degree of cohesiveness, understands the goals of the group, starts making good decision, expresses
feelings openly and makes attempts to resolve problems and attain group effectiveness. At this stage,
members’ roles get defined, and task and maintenance roles are assumed by group members. Group members’
also begin to express satisfaction and confidence about being members of the group.

33
Motivation
iv) Performing: This stage is characterized by collaboration and integration. The group members evaluate their
performance so that the members develop and grow. The group relationships and structures are set and
accepted. Group energy has moved from getting to know and understand each other, to performing the task at
hand. Feelings are expressed at this stage without fear, leadership roles shared among the members, and the
group members’ activities are highly co-coordinated. The task and maintenance roles are played very
effectively. The task performance levels are high and member satisfaction, pride and commitment to the group
also high. Both performance and members ‘satisfaction are sustained indefinitely;
v) Adjourning: This stage is characterized by concern with wrapping up activities rather than task performance.
The group prepares for its disbandment. High task performance is no longer the group’s top priority. Instead,
attention is directed towards finalizing activities. As the group approaches the terminal phase, members break
off their bonds of affection and stop interaction with each other. Responses of group members vary in this
state. Some feel pride in what the group has accomplished. Others may be negative and critical of the way the
organization has treated the group and others may be sad over the loss of friendship gained during the life of
the work groups.
These five stages of group development are only a suggestive and not prescriptive. Sometimes, groups do not
always proceed clearly from one stage to the next. Sometimes, several stages go on simultaneously as when groups
are storming and performing at the same time. Under some conditions, high levels of conflict are conducive to high
group performance.

STRESS

We generally use the word "stress" when we feel that everything seems to have become too much - we are
overloaded and wonder whether we really can cope with the pressures placed upon us. Anything that poses a
challenge or a threat to our well-being is a stress. Stress is an all-too-common aspect of work life today, something
few individuals can avoid. The nature of stress has been studied by scholars in a wide range of academic disciplines.
Physicians, psychiatrists, and researchers in management have all studied its causes and symptoms, and have defined
the term in a variety of different ways. Stress is defined as "the reactions of individuals to new or threatening factors
in their work environments”.
Stress can be either positive or negative. Some new work situations can bring us positive challenges and
excitement. For example, promotions to new jobs present employees with positive stress. Employees may feel anxious
about their new work assignments; they also anticipate in them eagerly and look forward to the additional challenges,
rewards, and excitement. In these cases, the new and uncertain job situations create positive stress. The positive stress
is also called the eustress. However, there are certain other types of work that are very threatening and anxiety-
arousing. For example, depression in the economy can create negative stress for sales personnel, because they will be
much more anxious about making sales commissions and sales quotas.
Stress involves people's cognitive appraisal of the potential stressors they face. In simple terms, for stress to
occur people must perceive: (1) that the situation they face is somehow threatening to them, and (2) that they will be
unable to cope with these potential dangers or demands and that the situation is, in essence, beyond their control. In
short, stress does not simply shape our thoughts; in many cases, it derives from and is strongly affected by them. To
the extent that people appraise various situations as stressors, they are likely to have stress reactions. Often, as we will
see, these can have damaging behavioural, psychological, and/or medical effects on people.
For every individual there is an optimum level of stress under which he or she may perform to full capacity. If
the stress experienced is below this optimum level, then the individual gets bored, the motivational level to work
reaches a low, point, and apathy sets in. If one operates in a very low stress environment and constantly experiences
boredom, the person is likely to psychologically or physically withdraw from work. Psychological withdrawal will
result in careless mistakes being frequently made, forgetting to do things, and thinking of things other than work
during work hours. Physical withdrawal will manifest itself in increased rates of tardiness and absenteeism, which
may ultimately lead to turnover. Though the optimum stress level is different for different individuals, each individual
can sense and determine how much stress is functional for an individual to operate in a productive manner.
Research indicates that those who possess high tolerance of ambiguity, internal locus of control and self-
esteem seem to effectively handle a high level of stress. An individual possessing high degree of tolerance for
ambiguity allows him to experience very little anguish while operating under conditions of insufficient information or
in an uncertain environment. People with an internal locus of control also handle stress well since they feel they are in
control of the situation, rather than feeling controlled by the situation they are facing. This makes it possible for them
to manage their environmental stress without experiencing its harmful effects. Those with high self-esteem also
handle stress with ease since a high self-esteem increases the confidence and enables them to deal with stressful

34
Organizational Behaviour
situations with calmness and clear thinking. The more successfully one handles a stressful situation without panicking
or getting overwhelmed by it, the more confidently will the individual face further stressful situations. Thus, it is
possible to raise one’s capacity to handle in different situations.
Sources of Stress
Stress is a reality of our everyday life. There are both positive and negative stresses that come from our work
and non-work lives. As pointed out by Rice, and Hunt (1980) and Sekaran (1986), among others, the work and non-
work domains of one's life are closely interrelated. The stresses and strains experienced in one domain are carried
over to the other. Thus, if one experiences stress at work, that stress will be carried over to the home.
One major source of job stress is the job itself. The way the job is designed, the amount of time pressure an
individual faces and the amount of expectations others have of a person at work can all lead to job stress.
Interpersonal relationships are a second source of job stress. How much contact an individual has with co-workers and
managers, how much time he or she deals with clients or consumers, and how pleasant those interactions are all
influences of how much stress an individual experiences at work. Third source is problems in personal lives, which
can spill over into the work environment, adding further tension to an already stressful work situation.
 Role Ambiguity: When there is a lot of uncertainty surrounding job definitions or job expectations, people
experience role ambiguity. With the recent increase in mergers and acquisitions among major organizations,
more and more employees are experiencing job stress as a result of role ambiguity. Role ambiguity is anxiety
arousing among employees that leads to job stress.
 Role Conflict: Often employees discover that different groups of people in an organization have widely varying
expectations of them, and that they cannot meet all those expectations. This inconsistency of expectations
associated with a role is called role conflict, which results in stress.
 Role Overload: Role overload is a situation in which employees feel they are being asked to do more than time
or ability permits. Working under time pressure is especially stressful.
 Role Underload: Role Under load is the condition in which employees have too little work to do or too little
variety -in their work. For example, salespeople in a store with no customer, standing around all day with
nothing to do, could be said to experience role under load. Ironically, role under load leads to low self-esteem,
increased frequency of nervous symptoms and increased health problems.
 Ethical Dilemmas: Ethical dilemmas such as whether or not one should report the observed unethical
behaviours of another person can cause extreme levels of stress in individuals. This will be especially true for
those who have strong moral values of right and wrong and a deep sense of personal and corporate social
responsibility. Tensions arise because one might have to contend against one's own colleagues who might be
close friends, and may fear of repraisal and other undesirable consequences.

Consequences of Stress
The consequences of Stress can be categorised as—physiological, psychological, and behavioural symptoms.
1) Physiological Symptoms
 Most of the early concern with stress was directed at physiological symptoms due to the fact that
specialists in the health and medical sciences researched the topic.
 The physiological effects can be seen in increased heart and pulse rate, high blood pressure, dryness of
throat, and excessive sweating.
2) Psychological Symptoms
 Job-related stress can cause job-related dissatisfaction.
 Job dissatisfaction is “the simplest and most obvious psychological effect” of stress.
 Multiple and conflicting demands—lack of clarity as to the incumbent’s duties, authority, and
responsibilities—increase stress and dissatisfaction.
 The less control people have over the pace of their work, the greater the stress and dissatisfaction.
3) Behavioural Symptoms
 Behaviourally related stress symptoms include changes in productivity, absence, and turnover, as well as
changes in eating habits, increased smoking or consumption of alcohol, rapid speech, fidgeting, and sleep
disorders.
Individuals then often perform their tasks better, more intensely, or more rapidly.

35
Motivation
But too much stress places unattainable demands or constraints on a person, which result in lower
performance. Even moderate levels of stress can have a negative influence on performance over the long term as the
continued intensity of the stress wears down the individual and saps his/her energy resources.
 In spite of the popularity and intuitive appeal of the inverted-U model, it doesn’t get a lot of empirical
support.
Consequences or Effects of stress mentioned in brief.
Short-Term Physical Symptoms
 Faster heart beat
 Increased sweating
 Cool skin
 Cold hands and feet
 Feelings of nausea, or 'Butterflies in stomach'
 Rapid Breathing
 Tense Muscles
 Dry Mouth
 A desire to urinate
 Diarhea
Long-term Physical Symptoms
 Change in appetite
 Frequent colds
 Illnesses such as:
 Asthma
 Back pain
 Digestive problems
 Headaches
 Aches and pains
 Feelings of intense and long-term tiredness
Psychological Symptoms
 Worry or anxiety
 Confusion, and an inability to concentrate or make decisions
 Feeling ill
 Feeling out of control or overwhelmed by events
 Mood changes:
 Depression
 Frustration
 Hostility
 Helplessness
 Restlessness
 Being more lethargic
 Difficulty sleeping
 Drinking more alcohol and smoking more
 Changing eating habits
 Relying more on medication
Behavioural Symptoms
 Talking too fast or too loud
 Fiddling and twitching, nail biting, grinding teeth, drumming fingers, pacing, etc.
 Bad moods
 Being irritable
 Defensiveness
 Being critical

36
Organizational Behaviour
 Aggression
 Irrationality
 Overreaction and reacting emotionally
 Reduced personal effectiveness
 Being unreasonably negative
 Making less realistic judgments
 Being unable to concentrate and having difficulty making decisions
 Being more forgetful
 Making more mistakes
 Being more accident prone
 Changing work habits
 Increased absenteeism
 Neglect of personal appearance
Managing Stress
High or low levels of stress sustained over long periods of time, can lead to reduced employee performance
and, thus, require action by management.
Individual Approaches
 Effective individual strategies include implementing time management techniques, increasing physical
exercise, relaxation training, and expanding the social support network.
 Practicing time management principles such as:
a) making daily lists of activities to be accomplished
b) prioritizing activities by importance and urgency
c) scheduling activities according to the priorities set
d) knowing your daily cycle and handling the most demanding parts of your job during the high part of
your cycle when you are most alert and productive
 Non-competitive physical exercise has long been recommended as a way to deal with excessive stress levels.
 Individuals can teach themselves to reduce tension through relaxation techniques such as meditation,
hypnosis, and biofeedback.
 Having friends, family, or work colleagues to talk to provides an outlet for excessive stress.
Organizational Approaches
 Strategies that management might want to consider include:
a) improved personnel selection and job placement
b) use of realistic goal setting, redesigning of jobs
c) training
d) increased employee involvement
e) improved organizational communication
f) establishment of corporate wellness programs
COMMUNICATION
Communication is the process of transmitting information from one person to another. Broadly, it means who
says what, to whom, through which channel and with what effect. It is a way of reacting to the other person with
ideas, facts, thoughts, feelings and values. For an organization to function, individuals and groups must carefully
coordinate their efforts and activities. For example waiters have to take their customers' orders and pass them along to
the chef. Store managers have to describe special promotions to their sales staffs. Clearly, communication is the key
to these attempts at coordination. Without it, people would not know what to do, and organizations would not be able
to operate effectively—if at all!
With this in mind, it should not be surprising that communication has been referred to as "the social glue ...
that continues to keep organizations tied together," and "the essence of organizations.'' Given the importance of
communication in organizations, you may not be surprised to learn that managers spend as much as 80 percent of their
time engaged in one form of communication or another (e.g., writing a report, speaking to others, etc.).
Communication is the sharing of ideas, knowledge, feelings and perceptions. Within the work place,
communication takes place for a number of direct and indirect reasons. Primarily it is necessary for passing
information between people studying or working in the same organization and between the organization and other.

37
Motivation
Communication, written, spoken or even nonverbal, is used by leaders and managers for evaluating
performance, directing or instructing staff and motivating others. People who are working as part of a team or
department with an effective communicator are generally more confident and competent because they understand
what they are doing and what is required of them. They are able to work together in a purposeful, supportive and
flexible manner.
Communication Process
The process of communication involves the following main elements such as i) sender, ii) encoding, iii)
message, iv) channel, v) decoding, vi) receiver , vii) noise or interference, viii)feedback. As communication begins,
sender and receiver interact by encoding/sending and decoding/receiving messages. Encoding means putting the
message into words or diagram or nonverbal signals so that it can be transmitted. The receiver hears, reads or looks in
order to decode or interpret the message.
Sender
Sender can be an individual, group, or organization that needs or wants to share information with another
individual, group, or organization to communicate. Sender conceives his ides based on the accumulated attitudes,
experiences, skills and cultural conditioning. The communication cycle begins when one person called the sender
wants to transmit a fact, idea, opinion or other information to someone else. A manager, for instance, might call the
research department to send the latest information on a particular market.
Encoding
“Translating the message into symbols or language that the receiver can understand”
The communication process begins when one party has an idea that it wishes to send to another (either party
may be an individual, a group, or an entire organization). It is the sender's mission to transform the idea into a form
that can be sent to and understood by the receiver. This is what happens in the process of encoding-translating an idea
into a form, such as written or spoken language, that can be recognized by a receiver. We encode information when
we select the words we use to send an e-mail message or when we speak to someone in person. For example a
supervisor sends a message about policy changes to subordinates by encoding it in a memo. The encoding might take
the form of words, facial expressions, gestures, physical actions and symbols such as numbers, pictures, graphs etc.
Indeed, most communication involves a combination of these. The encoding process is influenced by the content of
the message, the familiarity of the sender and receiver and other situational factors.
Message
The information the sender needs or wants to share with other people is referred to as messages. Effective
messages are clear and complete. A message is clear if it is easily interpreted or understood. A message is complete if
it contains the information to achieve a common understanding between the sender and the receiver. If a sender is
vague or unsure about the message, communication will be ineffective. The message makes a connection between the
sender and the receiver and may be made up of signs, words and movement.
Channel
A communication channel is the means of techniques used to signal or convey a message. For example, a
conversation, letter, telephone call, e-mail or television program. Sometimes these channels are internal to the
organization; other channels are outside the organization and are thus external channels. An appropriate channel suits
the communication purpose, the need of the sender, the message and the needs of the receiver shall be used. Different
lines or channels of communication are used inside an organization. Horizontal channels operate between colleagues
at the same level within the organization’s structures, while vertical channels move communication up and down
between different levels in the organization.
Decoding
Once a message is received, the recipient begins the process of decoding-that is, converting the message back
to the sender’s original form. This can involve many different processes, such as comprehending spoken and written
words or interpreting facial expressions (omit). To the extent that a sender's message is accurately reconstructed by
the receiver, the ideas understood will be the ones intended. The person to whom the message is sent, called the
receiver interprets the meaning of the message through the process of decoding. This process may be simple and
automatic, but it can also be quite complex. Even when you are just reading a letter, you may need to use all your
knowledge of the language, your experience with the letter-writer and so on. If the intended message and the received
message differ a great deal, there is a communication gap and misunderstanding is likely to follow.

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Receiver
A Receiver can be an individual, group, or organization for which the information is intended. A sender
might be a supervisor with instructions about performing a task and a receiver might be a new worker. The receiver
can be an individual, a group, or an individual acting on behalf of a group. The sender has generally little control over
how the receiver will deal with the message. The receiver may ignore it, decide not to try to decode, understand it or
respond immediately. The communication cycle continues when the receiver responds by the same steps back to the
original sender, which is called the feedback.
Noise or Interference
The message received is not necessarily the same as the message sent. Something other than the intended
message is received because noise or interference interrupts the intended message. Noise or interference that
interrupts the message or communication flow between sender and receiver can lead to misunderstanding or to
confused or ambiguous communication. In the communication process, noise takes on a meaning slightly different
from its usual one. Noise refers to any type of disturbance that reduces the clearness of the message being transmitted.
Thus, it might be something that keeps the receiver from paying close attention such as someone coughing, other
people talking closely, a car driving by etc. It can be a disruption such as disturbance in a telephone line, weak signal
due to bad weather etc. It can also be internal to the receiver such as tiredness or hunger or minor ailments, which may
affect the message.
Feedback
Feedback is an essential part of successful interpersonal communication. It is the receiver’s response to the
sender’s message, telling the sender how their message is being received and helping the receiver confirm, whether
their perception of the message is correct. It can be intentional or unintentional. Feedback provides continuity in the
communication, Indicates effective understanding or misunderstanding of the message and also stimulates further
communication and discussion. Of course, once received, feedback can trigger another idea from the sender, initiating
yet another cycle of communication and triggering yet another round of feedback. It is because of this cyclical nature
that we call communication a continuous process.
Methods of communication
There are mainly three primary methods of communication in an organization, which are written, oral, and
non-verbal. These methods of communication are often combined. Considerations that affect the choice of method
include the audience whether it is physically present, the nature of the message, and the lost of transmission.
Typically organizations produce a great deal of written communication of many kinds. A letter is a formal
means of communication with an individual, generally someone outside the organization. Probably the most common
form of written communication in organizations is the office memorandum, or a memo. Memos usually are addressed
to a person or group inside the organization. They tend to deal with a single topic and are more impersonal, but less
formal than letters. Other common forms of written communication include reports, manuals and forms. Reports
generally summarize the progress or results of a project and often provide information to be used in decision-making.
Manuals have various functions in organizations. Instruction manuals tell employees how to operate machines; policy
and procedure manuals inform them of organizational rules; operations manual describe how to perform tasks and
respond to work-related problems. As such, they represent attempts to make communication more efficient and
information more accessible. A performance appraisal form is an example.
Oral Communication
Oral communication, also known as face-to-face communication is the most prevalent in organizational
communication. It may be in the form of direct talk and conversation between the speakers and listeners when they
are physically present at one place or through telephone or intercom system conversation. Where one-way
communication is required, then oral communication may include public address system. Informal rumour mill or
grapevine is also a popular form of oral communication. It is most effective for leaders to address the followers via
public address system or audio-visual media. Oral communication is particularly powerful because the receiver not
only hears the content of the message, but also observes the physical gestures associated with it as well as the changes
in tone, pitch, speed and volume of the spoken word. The human voice can impart the message much more forcefully
and effectively than the written words and is an effective way of changing attitudes, beliefs and feelings, since faith,
trust and sincerity can be much better judged in a face-to-face conversation rather than in written words.
Advantages
Some of the advantages of oral communication are:

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Motivation
 It is direct, simple, time saving and least expensive form of communication.
 It allows for feedback and spontaneous thinking, so that if the receiver is unsure of the message, rapid
feedback allows for early detection by the sender so that corrections can be immediately made, if necessary.
 Because the message is conveyed instantaneously, it helps in avoiding delays, red tapeism and other
formalities.
 It conveys personal warmth and friendliness and it develops a sense of belonging because of these
personalized contacts.
Disadvantages
 There is no formal record of communication so that any misunderstood message cannot be referred back to
what was actually said.
 If the verbal message is passed on, the long hierarchical chain of command, then some distortions can occur
during the process. The more people the message is to pass through, the greater is the potential distortion.
 Lengthy and distant communication cannot be conveyed verbally in an efficient way.
 The receiver may receive the message in his own perception and thus misunderstand the intent of the
message.
 Spontaneous responses may not be carefully thought about.
 The spirit of authority cannot be transmitted effectively in verbal transactions.
 Organizational Communications
 More or less or a different meaning might be conveyed by manner of speaking, tone of voice and facial
expressions.
Written Communication
A written communication is put in writing and is generally in the form of instructions, letters, memos, formal
reports, rules and regulations, policy manuals, information bulletins and so on. These areas have to be covered in
writing for efficient functioning of the organization. It is most effective when it is required to communicate
information that requires action in the future arid also in situations where communication is that of general
informational nature. It also ensures that everyone has the same information.
Advantages
 It serves as an evidence of events and proceedings.
 It provides a permanency of record for future references. The message can be stored for an indefinite period
of time.
 It reduces the likelihood of misunderstanding and misinterpretation. The written communications are more
likely to be well considered, logical and clear. The message can be checked for accuracy before it is
transmitted.
 It can save time when many persons must be contacted at the same time.
 It is more reliable for transmitting lengthy statistical data.
 It appears formal and authoritative for action.
Disadvantages
 It can be very time-consuming, especially for lengthy reports.
 There is no immediate feedback opportunity to be sure that the receiver has understood the message.
 Confidential written material may leak out before time, causing disruption in its effectiveness.
 It leads to excessive formality in personal relations.

Non-Verbal Communication
Some of the meaningful communication is conveyed through non-verbal ways. Even some of the verbal
messages are strengthened or diluted by non-verbal expressions. These non-verbal expressions include facial
expressions and physical movement. In addition, some of the environmental elements such as building and office
space can convey a message about the authority of the person. According to Tipkins and Mc-Carter, facial expressions
can be categorized as:
 Interest-excitement
 Enjoyment or joy

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Organizational Behaviour
 Surprise or Startle
 Distress or Anguish
 Fear or Terror
 Shame or Humiliation
 Contempt-Disgust
 Anger-Rage
Physical movements or body language is known as "kinesics". A handshake is probably the most common
form of body language and tells a lot about a person's disposition. Other examples of body language are tilting of
head, folding of arms or sitting position in a chair.
Our facial expressions can show anger, frustration, arrogance, shyness, fear and other characteristics that can
never be adequately communicated through written word or through oral communication itself. Some of the other
body language symptoms are shrugging our shoulders for indifference, wink an eye for mischief or intimacy, tap our
fingers on the table for impatience and we slap our forehead for forgetfulness. As far as environmental elements are
concerned, a large office with luxurious carpeting and expensive furniture conveys a message of status, power and
prestige such as that of a chief operating officer. On the other hand, a small metal desk on a corner communicates the
status of a low ranking officer in the organizational setting. Accordingly non-verbal actions have considerable impact
on the quality of communication.
Forms of Organizational Communication
Although interpersonal and group forms of communication pertain even at the broadest organizational levels,
they do not sufficiently describe the paths of all messages transmitted in organizations. Individuals can send and
receive messages across whole organizational levels and departments by means of vertical communication or the
informal communication network. Non-verbal communication is also important and can be a part of interpersonal,
group and organizational communication.
Vertical Communication
Vertical communication is the communication that flows both up and down the organizational hierarchy. This
communication typically takes place between managers and their superiors or subordinates.
Upward Communication
Upward Communication consists of messages moving up the hierarchy from subordinates to superiors. The
content of upward communication usually includes requests, suggestions or complaints and information the
subordinate thinks is of importance to the superior.
Downward Communication
Downward Communication consists of messages moving down the hierarchy from superiors to subordinates.
The content of downward communication often includes directives, assignments, performance feedback and
information that the superior thinks are of value to the subordinate.
Transactional Communication
Wenburg and Wilmont suggest that instead of communication being "upward" or "downward" which is inter-
communication, it should be "transactional" communication, which is mutual and reciprocal because, "all persons are
engaged in sending and receiving messages simultaneously. Each person is constantly sharing in the sending and
receiving process and each person is affecting the other". In the transactional process, the communication is not
simply the flow of information, but it develops a personal linkage between the superior and the subordinate.
Informal Communication
Another term for informal communication network is the grapevine. Informal networks are found in all
organizations. It is in the form of gossip in which a person spreads a message to as many other people as possible who
may either keep the information to themselves or pass it on to others. The content of gossip is likely to be personal
information or the information about the organization itself.
Managers should have some control over the informal network. For example, the grapevine in an organization
may be carrying harmful information, false information or politically motivated information. When these kinds of
rumours are being spread, managers may need to intervene. They can hold open meetings and objectively discuss the
issues that are being informally discussed already. They may also issue a clearly worded memo or report stating the
facts and thereby help to minimize the damage that the informal network can do.
Managers can also obtain valuable information from the grapevine and use it for decision-making.

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Motivation
Other Forms of Communication
One that has become especially popular is informally labelled as "management by wandering around". The
basic idea is that some managers keep in touch with what is going on by wandering around and talking with people
such as subordinates, customers, dealers and anyone else involved with the company in any way. This gives
managers, new ideas and a better feel for the entire company.
Barriers to Effective Communication
Semantic Problems
The use of inappropriate language, symbols, and words may affect the understanding capacity of the receiver.
The sender must ensure that the proper words and language are chosen to communicate the intended message so that
there is no room for misinterpretation or confusion as the receiver decodes the message exactly as it was encoded.
Many words commonly used in communication carry quite different meanings for different people. Two general
kinds’ of semantic problems present barriers to communication. i) Some words and phrases are so general or abstract
that they invite varying interpretation. ii) Semantic problem arise when different groups develop their own technical
language. For example, someone says that I require 10 PCs to solve this problem. A soft engineer may think 10
personal computers; A police inspector may think10 Police Constables. People may interpret the same words or letter
in differently.
Status Effects
Status effect also hinder communication in as much as people occupying higher positions in the organization
have a tendency to tell a lot to the subordinates but not to listen. When people do not listen, they do not understand
each other and thus effective communication is blocked. Thus, the superior-subordinate status comes in the way of
effective communication taking place.
Physical Distraction
When people communicate with each other, noise may also enter in the form of various types of distraction.
Distractions may occur because of situational factors such as constant telephone interruptions, people walking in and
out of the room, or loud noises in the background. Apart from these physical noises, certain peculiar mannerism of the
speaker may also be distracting to the listener and hide effective listening.
Information Overload
This refers to too much volume of information which is beyond the level of a person to comprehend.
Communication may be ineffective when too much information is transmitted at one time or when complex
information is presented within a short timeframe. The problem is compounded if the individual also has limited
attention span and poor memory retention. Managers are literally drowned in communication and unable to attend to
them fully. This includes variety of information received from different mode such as e-mail, memos, official letters,
reports, instructions, circular, telephone, meetings etc. is required to attend.
Time Pressures
Time is always short, and this fact often leads to distortion in communication. A major temptation when
pressed for time is to short-circuit formal communication channels. Because of time pressures, many messages are
hastily and inadequately communicated by managers, leaving the listener with much ambiguity and confusion as to
what has been said and what action should be taken. Since managers have to deal with a large number of people on an
ongoing basis within limited periods of time, giving incomplete information and verbally transmitted short,
telegraphic message seems inevitable.
Cultural Differences
Words, colours and symbols have different meanings in different cultures and sometimes even between sub-
cultures within a national boundary.
Trust Level
When there is lack of sufficient trust between the communicating parties, selective listening takes place,
resulting in ineffective communication. Complete information is seldom exchanged under such circumstances and the
withholding of information by one or both parties will further aggravate the trust issue and impersonal problems.
Evaluating tendencies develop selective listening increases further and messages get distorted.
Selective Perception

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Organizational Behaviour
People have a tendency to listen to only part of a message and “block out” other information for a variety of
reasons. One of the most important aspect is a need to avoid or reduce cognitive dissonance. Thus, people have a
tendency to ignore new that conflict with or deny already established beliefs, values, and expectations.
Selective perception occurs when the receiver values the context of the communication including the role,
identity, values, mood and motives of the sender.
Self-Concept
An individual’s motives and personality strongly influence the decoding or symbolic interpretation process.
An employee who has a highly felt need for advancement in an organization and whose personality tend to be quite
optimistic might lead a smile and casual comment from a supervisor as an indication that he is being groomed for
promotion. A person with low need for advancement and a pessimistic disposition my lead nothing more than a casual
comment unrelated to anything else into the supervisor’s comment.
Absence of Two-way Communication
If communication is only one way – from top to bottom or from superior to subordinate-without any
feedback, would hinder communication from taking place in an effective manner. For instance, the receiver might
decode the message in a way that was not intended. Neither the receiver nor the sender will then realize that the
message was misinterpreted until it becomes too late to rectify the situations. For example, an examination question is
one way communication which could easily get misinterpreted by some students since attempts by students to seek
clarifications in the examination hall is usually discouraged.
Overcoming Barriers to Communication
There are number of ways managers can minimize a number of communication barriers. In general,
communication can be improved in two ways. First, the manger must sharpen his or her skills in manipulating
symbols, that is, process of encoding. This implies that the sender must take as much care as possible in choosing
symbols and establishing the context within which the message is transmitted. There are number of techniques that are
commonly employed by managers to accomplish these ends.
Active Listening
It implies that the receiver of information engages in the following patterns of behaviour.
a) stop talking since it is impossible to talk and listen at the same time, b) remove the distracting elements as
much as possible c) is patient and lets the other person say whatever needs to be said, d) appreciate the
emotion behind the speaker’s words and is empathic, e) is attentive, f) creates a positive listening environment
f) uses feedback mechanisms to check understanding g) withholds judgment h) asks questions, i) reacts to the
message and not the person. Active listening takes a lot of energy and be perfected by conscious and constant
practice.

Follow up and Feedback

The process of feedback makes communication a two-way process. In face-to-face situations, the sender
should try to become sensitive to facial expressions and other signs that indicate how the message is being received. It
is often important to solicit questions of clarification from the receiver. When more formal communication is
involved, the writer may specify specific forms and times for responding to insure feedback.
Parallel Channels and Repetition
A major principle of communication technology is to provide parallel channels of communication that
reinforce each other. Thus, a verbal request may be followed up with a memo. In this way, the sender has ensured
getting the attention of the receivers and also ensure that the sender will have are cord to refer to in case lie or she
forgets in its order.
Timing
A manager may ignore a memo or request simply because other problems are pressing in at the same time.
Two kinds of actions can be taken by management to ensure the accurate reception of communication through timing.
i) they may want to standardize the timing of specific messages, ii) many organizations establish “retreats” or time
away from normal job pressures to transmit material, ideas and instructions to employees. This action insures the
undivided attention of the receivers.

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Motivation
Being Patient and Paying Adequate Attention
When choosing a style of language, the sender must give a due consideration to the listener’s intention, and
his background. Effective use of language consists of tailoring one’s message for the context of the receivers in order
to maximize overall between the intended and received messages.
Information Communication and Information Centres
Running parallel to formal communication channel in an organization is an informal network commonly
called grapevines. They tend to be a universal fact of life in all organizations. They have been used to serve not only
informational functions but also motivational functions as well. A number of employees needs are served by the
powerful reinforcer. Effective communicators often combine formal and informal (grapevine)channels of
communication. Thus, a manager may reinforce information received through formal with an off-the record talk with
key subordinates. In reverse directing, he or she might reinforce and clarify a formal written with an informal chat
session among employees.
Exception principle and Need to Know
In order to deal effectively with the information overload problem many organizations try to establish certain
principles for actually limiting the extent of communications. Many firms implement an “exception principle” in
communication channels. This principle orders that only communications regarding exceptional derivations, from
orders, plans, and policies be communicated upward on a routine basis. Hence, upper levels of management will
receive only that information which truly demands their attention. A closely related principle involves downward
communication. Here, managers should be selective and transmit information on a “need to know” basis. In this way,
lower level personnel receive only communication that is immediately critical to carrying out their tasks. The success
of these two principles depends on the type of organization within which jobs are carried out. They will be most
effective in highly structured organizations where tasks are relatively simple and routine. In less formal organization,
in which work is rather complex and not highly structured, communication needs to be as open and unrestricted as
possible.
Being Empathic In Understanding
Good communicators are able to reduce the chance of communication barrier and the associated problems by
communicating with empathy-a feeling and awareness of the other person and their point of view. A good
communicator is able to recognize emotions in others and respond appropriately. It is reported that empathy as the
foundation for the quality of a relationship. In a satisfying relations both parties have empathy for the other person’s
point of view and are also willing to provide appropriate and sufficient feedback to achieve the understanding.
Using Feedback Mechanisms
Since feedback involved both receiver and sender, it is important to understand the conditions under which
feedback session will be more effective both from the sender’s and receiver’s perspective. For feedback to be most
effective, the person giving the feedback must:
a) Give specific and not general or vague feedback
b) Give feedback immediately or soon after the event has taken place rather than long after the event has
occurred
c) Give feedback on aspects that the receiver can rectify rather than on aspects over which the individual has no
control
d) Be descriptive than evaluative
e) Give feedback on a few critical issues where improvement is most urgently expected rather than on a wide
range of problem areas
f) Examine your own motivation in giving the feedback
g) Be sure that the receiver is ready to receive feedback
h) Be non-threatening and disregard your superior status while offering feedback.
Minimize Physical Distraction
Taking due care in minimizing the external noise, interruptions, awkward mannerism, unusual and unwanted
incidences, etc facilitate to heighten the attention levels of the members.
Transactional Analysis
The term Transactional Analysis (TA) was first introduced by Eric Berne (1964). TA focuses on analysing the
nature of people's verbal interactions with each other. TA is a technique for examining the nature of the interpersonal

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communication between two individuals and to analyze whether or not effective communication is taking place.
Every piece of conversation is treated as a transaction. That is, when I talk to X, it is one transaction, and when X
responds, it’s another transaction. As stated each transaction emanates from parent, adult or ego state of the
individuals. The parent ego state is authoritarian, the adult ego state is rational, and the child state is impulsive; though
all of us transact from all three ego states from time to time, each one of us generally tends to have a dominant ego
state from which we transact most of the time. Communication is effective when the sender and receiver of the
message operate from ego states that match, rather than conflict with each other. The basic tenet of TA is that each
one of us operates from three ego states and there are compatible and incompatible messages that we send to each
other from time to time. By analysing the messages, we will be able to engage in more fruitful and effective
communication patterns.
Ego States
Each one of us operates from three ego-states - the Parent, the Adult, and the Child. The parent state reflects
our feelings of superiority, authority, being judgemental, and-so on: these are feelings that we have picked up from
our own parents as we were growing up. The adult state reflects maturity, objectivity, logic, and rational problem
solving tendencies. The child state reacts our tendencies as a child - dependent, impulsive, rebellious, and the like.
Each one of us operates from all three ego states at different times and this is reflected in our communication with
each other. Most of us, however, resort to one mode of interaction most of the time - either from the parent or adult or
child state. Observe how bosses differ in how they normally communicate with their subordinates?
Transaction
Any verbal communication between one party and another can be treated as a transaction. If I ask my son,
"How was your day? What have you been doing? "It is considered as one transaction, and if he replies, "Why are you
asking me these kinds of probing questions?" it is another transaction. The conversation between any two persons can
be analysed in terms of the ego state from which each of the transactions emanates. Transactions can be (l)
complementary (2) crossed, or (3) ulterior.
Complementary Transactions come from compatible ego states, for example, adult to adult, child to child, parent to
child, etc., where expected responses naturally occur. Crossed transactions occur when a message from one ego state
is responded to by a message coming from an incompatible ego state in the other person. An adult-child transaction
would be an example of this as evidenced in the above-cited imaginary conversation with my son. Crossed
transactions usually result in resentment, hurt, anger, and frustration for the parties concerned. An ulterior
transaction takes place when two parties say things to each other which circumvent the main issue. For instance, if I
went to ask my boss for a raise, and instead of directly asking him about it, I say things like, "I have been working
very hard lately", and the boss, knowing very well what I have come to talk to him about, says, 'There is a lot of work
to be done, I have seen Rath and Ram also putting in long hours", we are both engaging in ulterior transactions. I am
trying to make the point that I deserve a pay raise by talking about my hard work without bringing in the issue
directly, and my boss is indirectly communicating to me that there are others who work hard as well! By not being
open about what I want, I have not accomplished my goal and I am giving my boss an opportunity to circumvent the
issue. Complementary Transactions have good communication going between the parties. Whereas crossed
transactions hinder communication processes.
Complementary Transactions Fig. 1 depicts two types of complementary transactions. In (a), for instance, the boss
might talk from his parent (critical) state to the subordinate, and say," I don't understand why you have not been
submitting the reports that you were supposed to!", to which the subordinate might respond from the child state and
say "My God! I just hate writing those boring reports but since you seem to need them, I will start working on them
right away!" Here, the boss spoke like a parent to a child (somewhat critical and talking down to the subordinate), and
the latter responded like the child to the parent (mildly protesting but then complying). Here the communication was
effective inasmuch as it accomplished what it was supposed to. In situation (b) in the figure, two individuals talk from
the adult ego state to each other and carry on a rational conversation. For instance, the boss might say, "You have
probably been very busy, Patel, but I would appreciate it if you would try to turn in the reports as soon as possible",
and Patel might respond, "Yes, I have been working on this new project which I just finished; I will get to work on the
reports right away and make sure that they are on your desk by Monday." Here again, communication has taken place
effectively. Crossed Transactions A crossed or non-complementary transaction takes place when people are talking to
each other form 'incompatible ego states. For instance, if the boss says, "May be, you and I should sit down and
discuss why you are not performing as efficiently as before", she is transacting from the adult (rational) state. If the
subordinate then responds, "Yes, I would like to do that so I can really improve my performance":, she is also

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Motivation
responding from the adult state, and as we know, they would be effectively communicating with each other. If, on the
other hand, the subordinate happens to reply, "I don't know why you always pick on me. I seem to get blamed for
everything that goes wrong in this department", then she has a child-to-parent response rather than an adult-to-adult
response. In other words, she enters the impulsive child state and responds to the boss as if the latter is the
authoritarian parent. As shown in Figure c, the vectors cross. In such a case, the manager trying to deal with the
subordinate on a rational basis will not be successful in accomplishing the desired results (improving the performance
of the subordinate) until the latter has had time to reflect and is prepared to respond on an adult-adult mode as shown
in Figure b (a complementary transaction).

Complimentary Transactions Crossed Transaction

P P P P P P

A A A A A A
a (a) (b) (c)
Figure - 1Source: (organisational Behaviour, Sekaran,1989)
a
C C C C C C

TA is a useful technique for understanding how people communicate with each other and helps us to identify
ways of maximising adult-adult transactions in organisations. TA also helps to quickly identify and untangle crossed
transactions. By understanding the extent to which ulterior transactions occur in organisations, efforts can be made, if
necessary, to minimise them since avoiding authentic encounters adversely affects effectiveness in the long-run.
Employees spend more time playing games than being helpful to each other in getting the job done. Since trust levels
are low, the culture of the organisation also experiences a setback.
TA training focuses both on the individuals and the processes (or the patterns that people use as their mode of
transacting). The objective of the training is to make people understand 1. their own ego states, 2 their most resorted
to mode of communicating with others, 3 the effectiveness of complementary transactions. Greater awareness of one's
own tendencies and modes of operations increases the interpersonal competence of the trainees. TA training is
particularly useful in improving dyadic relationships, say, between the superior and subordinate, or the client and
agent. It should, however, be noted that there is no hard empirically established evidence that training in TA does
indeed result in the use of more complementary transactions (Burke, 1982).

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Organizational Behaviour
Glossary
Motivation Psychological processes that arouse and direct goal-directed behavior
Content Theories of Motivation Identify internal factors influencing motivation
Process Theories of Motivation Identify the process by which internal factors and cognitions influence
motivation
Needs Physiological or psychological deficiencies that arouse behavior
Need hierarchy Theory Five basic needs--physiological, safety, love, esteem, and self- actualization--
influence behavior
ERG Theory Three basic needs--existence, relatedness, and growth--influence behavior
Need for achievement Desire to accomplish something difficult
Need for affiliation Desire to spend time in social relationships and activities
Need for power Desire to influence, coach, teach, or encourage others to achieve
Motivators Job characteristics associated with job satisfaction
Hygiene factors Job characteristics associated with job dissatisfaction
Equity theory Holds that motivation is a function of fairness in social exchanges
Negative inequity Comparison in which another person receives greater outcomes for similar inputs
Positive inequity Comparison in which another person receives lesser outcomes for similar inputs
Equity sensitivity An individual's tolerance for negative and positive equity
Expectancy theory Holds that people are motivated to behave in ways that produce valued outcomes
Expectancy Belief that effort leads to a specific level of performance.
Intrinsic motivation Motivation caused by positive internal feelings
Group Two or more freely interacting people with shared norms and goals and a common identity
Formal group Formed by the organization
Informal group Formed by friends or those with common interests.
Group Cohesiveness A "we feeling" binding group members together
Roles Expected behaviors for a given position.
Role overload Others' expectations exceed one's ability
Role conflict Others have conflicting or inconsistent expectations
Role ambiguity Others' expectations are unknown
Norm Shared attitudes, opinions, feelings, or actions that guide social behavior
Task roles Task-oriented group behavior.
Maintenance roles Relationship-building group behavior
Groupthink Janis's term for a cohesive in-group's unwillingness to realistically view alternatives
Social loafing Decrease in individual effort as group size increases.
Team Small group with complementary skills who hold themselves mutually accountable for common purpose,
goals, and approach
Team viability Team members satisfied and willing to contribute
Trust Reciprocal faith in others' intentions and behavior
Propensity to trust A personality trait involving one's general willingness to trust others
Cohesiveness A sense of "wane" helps group stick together.
Socio-emotional cohesiveness Sense of togetherness based on emotional satisfaction.
Instrumental Cohesiveness Sense of togetherness based on mutual dependency needed to get the job done
Quality circles Small groups of volunteers who strive to solve quality-related problems.
Virtual team Information technology allows group members in different locations to conduct business.
Self-managed teams Groups of employees granted administrative oversight for their work.
Cross-functionalism Team made up of technical specialists from different areas.
Team building Experiential learning aimed at better internal functioning of groups.
Self-management leadership Process of leading others to lead themselves.
Communication Interpersonal exchange of information and understanding
Perceptual model of communication Process in which receivers create their own meaning.
Noise Interference with the transmission and understanding of a message
Communication competence Ability to effectively use communication behaviors in a given context.
Assertive style Expressive and self enhancing, but does not take advantage of others.
Aggressive style Expressive and self enhancing, but takes unfair advantage of others.
Nonassertive style Timid and self denying behavior.
Nonverbal Communication Messages sent outside of the written or spoken word.

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Motivation
Listening Actively decoding and interpreting verbal messages.
Linguistic style A person's typical speaking pattern.
Gender-flex Temporarily using communication behaviors typical of the other gender.
Formal communication channels Follow the chain or command or organizational structure.
Informal communication channels Do not follow the chain of command or organizational structure.
Liaison individuals Those who consistently pass along grapevine information to others.
Organizational moles Those who use the grapevine to enhance their power and status
Information richness Information-carrying capacity of data
Purposeful communication distortion Purposely modifying the content of a message.
Internet global network of computer networks

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