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S.Aryal Unit 1 Introduction Organization Behavior Concept Understanding one individual's behavior is a challenging problem in and of itself. The work of or gani zations gets done thro ugh the behavior of peop le, individual ly or collec tiv ely, on their own or in collaboration with tec hnology. Thu s, cen tra l to the management task is the management of organizational behavior. To do this, there must be the cap aci ty to understand the pat ter ns of behavior at individual, gro up, and orga nization levels, to pred ict what beha vior respon ses will be elicited by diff eren t managerial actions, and finally to use understanding and prediction to achieve control. rganizational behavior is the study of what people do in an organization and how that behavior af fects the per for mance of the or ganizations. !t is an academic dis cipline concerned with describing, understanding, predicting, and controlling human behavior in an organizational environment . According to S.". #obbins, $rganizational %ehavior &% is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of appl yi ng such knowledge toward improving an organization's effectivenes s.$ (ike other inputs into an enterprise, the human beings employed by that enterprise constitute a res our ce )) in this case, a human resource. ther res our ces must be managed to ensure both the efficiency and effectiveness of the organization. !t takes economists, accountants, and fina ncial ana lysts to understand and utilize the firm's monetary resour ces. Similarly, technologists, engineers, and trades people serve to help management utilize the firm's material and production facilities efficiently. !t is the role of the *uman #esource +anager , and others, skilled in the analysis of human interactio n with the work environment, to assist management in the proper utilization of human resources. The study of rganizational %ehavior facilitates the process of eplaining, understanding, predicti ng, maintaining, and changing employee behavior in an organizatio nal setting. 1

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Unit 1

Introduction

Organization Behavior Concept

Understanding one individual's behavior is a challenging problem in and of itself. Thework of organizations gets done through the behavior of people, individually orcollectively, on their own or in collaboration with technology. Thus, central to themanagement task is the management of organizational behavior. To do this, there mustbe the capacity to understand the patterns of behavior at individual, group, andorganization levels, to predict what behavior responses will be elicited by differentmanagerial actions, and finally to use understanding and prediction to achieve control.

rganizational behavior is the study of what people do in an organization and how thatbehavior affects the performance of the organizations. !t is an academic disciplineconcerned with describing, understanding, predicting, and controlling human behavior inan organizational environment.

According to S.". #obbins, $rganizational %ehavior &% is a field of study thatinvestigates the impact that individuals, groups, and structure have on behaviorwithin organizations, for the purpose of applying such knowledge toward

improving an organization's effectiveness.$

(ike other inputs into an enterprise, the human beings employed by that enterpriseconstitute a resource )) in this case, a human resource. ther resources must bemanaged to ensure both the efficiency and effectiveness of the organization. !t takeseconomists, accountants, and financial analysts to understand and utilize the firm'smonetary resources. Similarly, technologists, engineers, and trades people serve to helpmanagement utilize the firm's material and production facilities efficiently. !t is the roleof the *uman #esource +anager, and others, skilled in the analysis of human interactionwith the work environment, to assist management in the proper utilization of humanresources. The study of rganizational %ehavior facilitates the process of eplaining,

understanding, predicting, maintaining, and changing employee behavior in anorganizational setting.

1

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-igure rganizational %ehavior /lements

!n summary, to understand behavior in the organization, we must eamine the

interaction of individuals with the various factors the individuals encounter in thatorganizational setting. The behaviors encountered in the organization are, of course,very diverse. The diversity of personalities interacting with varied organizationalenvironments results in considerable variation in associated behavior. The employees ofthe firm are resources )) human resources. 0ust as accountants provide the epertise thefirm re1uires to best manage its financial resources, so the rganizational %ehaviorspecialist provides the epertise needed to manage the firm's human resources.

-igure !ndividual %ehavior in the rganizational Setting

The Historical Evolution of Organizational Behavior

 Today, rganizational %ehavior is considered as an important aspect in organizationaleffectiveness. *owever, % as a distinct field of study was emerged at 2345s. "rior tothis, before the siteenth century, 6reek philosopher "lato wrote about the essence ofleadership for 7ob satisfaction. Aristotle  addressed the topic of persuasive

communication in organization. The writings of 28th century !talian philosopher 9iccol: +achiavelli  laid the foundation for contemporary work on organizational power andpolitics.

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!n 2;;8, Adam Smith advocated a new form of organizational structure which is basedon the division of labour. ne hundred years later, 6erman sociologist +a <eber wroteabout rational organizations and initiated discussion of charismatic leadership. Soonafter, -rederick <inslow Taylor, also known as father of scientific management,introduced the systematic use of goal setting and rewards to motivate employees. !n the23=5s, Australian)born *arvard professor /lton +ayo  and his colleagues conductedproductivity studies at <estern /lectric's *awthorne plant in the United States.

Although the above contributions traces its roots back to +a <eber  and earlierscientists, organizational behavioral studies is generally considered to have begun as anacademic field with the advent of scientific management  of -.<. Taylor. !n the

 Taylorism, rationalizing the organization with specific sets of instructions and time)motion studies, individual compensation system can lead lead to the increasedproductivity and efficiency.

After the -irst <orld <ar, the focus of organizational studies shifted to analysis of howhuman factors and psychology affected organizations, a transformation propelled by theidentification of the *awthorne /ffect of /lton +ayo. This *uman #elations +ovement 

focused on teams, motivation, and the actualization of the goals of individuals withinorganizations, the "rominent scholars for it were, -rederick *erzberg, Abraham +aslow,>avid +c?lelland, and @ictor @room, those have contributed in motivational theories.

 The Second <orld <ar further shifted the field, as the invention of large)scale logisticsand operations research  and the management science. !nterest grew in theory andmethods to the sciences of management rather that art, including systems theory, thestudy of organizations with a compleity theory perspective  and compleity strategy.

 The ma7or contributors were *erbert Aleander Simon and 0ames 6. +arch.

In the 1960s and 1970s, the field was strongly influenced by social psychology also and the emphasis

in academic study was on quantitative research !n e"plosion of theori#ing, much of it at $tanford

%niversity and &arnegie 'ellon, produced (ounded )ationality, Informal *rgani#ation, &ontingency

+heory, )esource ependence, Institutional +heory, and -opulation .cology theories, among many

others

$tarting in the 19/0s, cultural e"planations of organi#ations and change became an important part of

study ualitative methods of study became more acceptable, informed by anthropology, psychology 

and sociology

Specific Contributions

Frederic !inslo" Ta#lor $1%&'(1)1&*+

 Taylor was the first person who attempted to study human behavior at work using asystematic approach. Taylor studied human characteristics, social environment, task,physical environment, capacity, speed, durability, cost and their interaction with eachother. *is overall ob7ective was to reduce andor remove human variability. Taylorworked to achieve his goal of making work behaviors stable and predictable so thatmaimum output could be achieved. *e relied strongly upon monetary incentivesystems, believing that humans are primarily motivated by money. *e faced somestrong criticism, including being accused of telling managers to treat workers asmachines without minds, but his work was very productive and laid many foundationprinciples for modern management study.

Elton ,a#o+

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/lton +ayo, an Australian national, headed the *awthorne Studies at *arvard. !n hisclassic writing in 23B2, *uman "roblems of an !ndustrial ?ivilization, he advisedmanagers to deal with emotional needs of employees at work.

,ar# -arer Follett+

+ary "arker -ollett was a pioneer woman management consultant in the industrialworld, which was mainly dominated by males. As a writer, she provided analyses onworkers as having comple combinations of attitude, beliefs, and needs. She toldmanagers to motivate employees on their 7ob performance, aCpullD rather than a $push$strategy.

.ouglas ,c/regor+

>ouglas +c6regor proposed two theoriesassumptions, which are very nearly theopposite of each other, about human nature based on his eperience as a managementconsultant. *is first theory was CTheory ED, which is pessimistic and negativeF andaccording to +c6regor it is how managers traditionally perceive their workers. Then, in

order to help managers replace that theoryassumption, he gave CTheory GD which takesa more modern and positive approach. *e believed that managers could achieve more ifmanagers start perceiving their employees as self)energized, committed, responsibleand creative beings. %y means of his Theory G, he in fact challenged the traditionaltheorists to adopt a developmental approach to their employees. *e also wrote a book

 The *uman Side of /nterprise in 2385F this book has become a foundation for themodern view of employees at work.

Organizational Behavior as Interdisciplinar# field

% is considered as an academic discipline. *owever, it is widely considered as aninterdisciplinary field of study because of covering varieties of academic disciplinewithin it. The filed of studies can be shown from the figure below.

-s#cholog#

"sychology refers to the science that tries to measure, eplain, predict and sometimeschange the behavior of humans. % focuses on human psychology through learning,perception, personality emotions, training, leadership, motivation, 7ob satisfaction etc.

Sociolog#

!t is the study of people in the organization in relation with others which includes, group,teams, communication, power, conflict etc.

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Source: Stephen P. Robbins

Social ps#cholog#

!t is the combine of both "sychology and Sociology which focuses on influence of peopleon one another. The fields of study are %ehavioral change, attitude change,

communication, group process and group decision making.

0nthropolog#

3

(earning+otivation"ersonality/motions

"erception Training(eadership effectiveness 0ob satisfaction!ndividual decisionmaking"erformance appraisalAttitude measurement/mployee selection<ork design<ork stress

"sychology

BehavioralScience

Contribution Unit of0nal#sis

Output

Sociology

Social"sychology

Anthropology

  "oliticalscience

6roup dynamics<ork teams?ommunication"ower?onflict!nter group behaviour

-ormal organizationtheoryrganizational

technologyrganizational changerganizational culture

%ehavioral changeAttitude change?ommunication'6roup process6roup decision making

?omparative values?omparative attitudes?ross)cultural analysis

rganizational culturerganizational/nvironment

?onflict!ntraorganizationalpolitics"ower

!ndividual

6roup

rganizational System

Study ofrganizationa

l %ehavior

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!t is the study about societies to identify about human beings and their activities such ascultures and environments.

-olitical Science

"olitical science primarily focuses on studying the behavior of individuals and groupswithin the political environment within the organization which includes conflict,!ntraorganizational politics and power.

Challenges and Opportunities for Organizational Behavior

rganizational behaviour is becoming more important in the global economy as peoplewith diverse backgrounds and cultural values have to work together effectively andefficiently. The followings are the points of challenges and how can % help copingthose challenges.

1 2esponding to /lobalization+

 The world is being the global village and organizations are not constrained bynational border in the recent days. To satisfy the customers of the world in highlycompetitive globalized market, organizations need to provide the products andservice of their choice, preference and taste. rganizations need working inforeign countries in a multicultural diversity environment. The managementpractices need to be modified from countries to countries to cope with thediversity. !n the globalization, the companies tend to establish the business firmswhere they can have lower costs of labor to reduce the cost of production forglobal competition

3 ,anaging !orforce diversit#

 The most important and most emerging challenge for today's managers isworkforce diversity because the focus of globalization is on people from differentcountries. !t is the concept that the industries have heterogeneity in peopleregarding the gender, age, race, religion, language, ethnicity, physical abilities,nationalities, culture and inclusion of diversified individuals.

4 I5proving 6ualit# and -roductivit#

 The business is becoming highly the customer focused in the recent days. Theproduct 1uality should continuously be improved to compete in the market and to

satisfy the customers. *owever, the productivity should not be decreased. Theorganizational improvement is needed, the accurate measurement and employeeempowerment should be focused to improve the both, 1uality and productivity.

 Total 1uality management &TH+ &a management philosophy for the 1ualityimprovement and process engineering &the process of reconsidering the methodsand organization structure is to be adopted.

7 2esponding to Outsourcing

utsourcing involves the transfer of the management andor day)to)dayeecution of an entire business function to an eternal service provider. The clientorganization and the supplier enter into a contractual agreement that defines the

transferred services. Under the agreement the supplier ac1uires the means ofproduction in the form of a transfer of people, assets and other resources fromthe client. The client agrees to procure the services from the supplier for the termof the contract. %usiness segments typically outsourced include information 

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technology, human resources, facilities, real estate management, and accounting.!t is the both challenge and opportunity for the organization and responding to itin the benefit of the firm is certainly the difficult 7ob. /venthough it has manyopportunites to the firm, it may create problem damaging the local market, lowsocial responsibility, low 1uality in product or service, high staff turnover, fraud,security related issues etc

& I5proving Custo5er Service+

?ustomers are treated as the 'god' for the organizations in the recent days. Theservice to be rendered by the employees should be pleased by the clients inservice industries like teaching, technical support, fast)food counters, airlines etc.% can contribute to improving in organization's performance to the managersthrough identifying about the employee attitudes and behavior associated withcustomer satisfaction creating the customer)responsive culture. % can help themanagers in creating customer)friendly culture, prompt responding to customerneeds and providing the guidance about pleasing them.

' I5proving -eople Sills+

% helps managers improving the necessary skills re1uired to manage effectivelyincluding the motivational skills, communication and team work. !t not onlyimparts the knowledge and skills needed to enhance the learning ability but aboutthe perception of individual.

8 E5po"ering -eople

+anagers are giving up controls to the lower levels , they are becoming highlyfleible, organization encourages the employee participation in decision making

and forming self)managed teams in modern organizations. <orkers are acceptingresponsibility and managers are granting them the authority. /mpoweringchanges leadership style, power relationships, needs skills and abilities aboutunderstanding and predicting employees' behavior and for this, % is inevitable.

% Sti5ulating Innovation and Change

 The challenge for the today's managers is stimulating the product and serviceinnovation for the survival and growth in competitive environment the change toad7ust to it. The employees may resist the change and innovation having thestumbling block to it. % provides the ade1uate ideas and techni1ues to removethe block and go further ahead.

) Coping "ith 9Te5porariness9

6lobalization, advance in product and services, technology changes make theorganization compelled to change the nature of 7ob, fleibility in structure, 7obsare regularly redesigned. /ven the organizations are also changing. The part)time workers, temporary workers or short)term contractors are increasingespecially in developed countries to cope with increased work pressure, useepert knowledge and reduce labour cost. The developing countries like 9epalalso facing challenges about the part time and temporary workers. *owever, thehuman resource managers are getting challenges to manage such contingent

workers. "art time workers are fre1uently moving from one 7ob to another. !t isvery difficult to fully retain them and keep then in the organization for long time.

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+anagers need to cope those $temporariness$ in 7ob and workers. They need tolearn about fleibility, to predict, creating the organizational culture, overcomethe barriers to change, which can be learnt through %.

1: !oring in ;et"ored Organizations

 The use of computer and internet in workplace is increasing day by day. Theinterlink between the organizations and workplace using communicationtechnologies is rapidly epanding, resulting the networked organizations.rganization becomes comple allowing maimum number of people without anyphysical distance, like a global village. +otivating, leading and communicatingthose virtually connected employees is highly challenging. % can be theimportant insight for getting knowledge to help managing those logicallyconnected people.

11 Helping E5plo#ees Balance !or<=ife Conflicts

!n recent days, employees often feel that they are unable to create balancebetween the work and their personal life. They blame that their 7ob createproblem in their family life because of lacking take care about their family, spouseor children since they almost busy in office work even in home. The fast growingorganizations, these days, have no office hours, specially no closing hours. !tsometimes, creates conflict, bore and interfere in personal life and they are nothappy.

!t has been seen that there should be the balance between the work and personallife. They need fleibility in their work schedules, with e1ual emphasis on $life$and $7ob$. And if this happens, it is very difficult to attract the most capable andmotivated employees. % offers different ideas, suggestions and guidance inmaintaining balance between these two and resolving the conflict.

13 I5proving Ethical Behavior

/mployees in the organization are finding difficult to differentiate what is rightand what is wrong. They always see people around them are in unethicalpractices like taking bribe and padding epense accounts, favoritism andnepotism. !t creates decreasing the confidence and trust in management.

+anagers try to provide in)house advice about >s and >9Ts regarding ethical

behavior. They ?reate protection mechanisms write and distribute codes of ethicsto their employees and sometimes they also offer seminars, workshops, andtraining to improving the ethical behavior

14 .eclining E5plo#ee =o#alt#

%ecause of global completion, unemployment and inflation, employees are unableto be loyal and honest although they do not like it. +anagement can not easilytrust to employee, they do not like delegating authority because of fear of misuse.

fficials take bribe for bread and butter and they increase their epenseaccounts. <orkforce motivation is becoming highly challenging because oftemporariness and brain)drain. % of course can provide the techni1ues to

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increasing the employee loyalty determining the code of ethics or ethicalbehavior, motivating them, communicating effectively.

E5erging Trends in Organizational Behavior

>ifferent writers eplained differently about the emerging trends to %. The followingpoints can be traced out as the recent trends to %.

2. 6lobalization of products and services=. The revolution in middle level management +aimum cut in the middle level

managers, restructuring and redefining the roles

B. >ecentralization of business, government, political and social institutions

4. *igh level of diversity among people, groups, institutions and geographiclocations

I. ?omputerization in organizations

8. Use of technologies in communication

;. "riority and reservation opportunities for minorities and women

J. !nclusion of different race, caste, religion, language, region etc.

3. Unionization

25. -lat structure and wide span of control

22. Team and 6roup Approach with dynamic leadership

2=. @irtual team and virtual organizations

2B. !nnovative plan for special career needs -leible working hours, reducedhours, 1uality of work life

24. ?ontingent workforce

2I. /thical behavioral issues

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Unit 3

-erception

Concept

"erception is our sensory eperience of the world around us and involves both therecognition of environmental stimuli and actions in response to these stimuli. Throughthe perceptual process, we gain information about properties and elements of theenvironment that are critical to our survival. "erception not only creates our eperienceof the world around usF it allows us to act within our environment.

$"erception is a process by which individuals organize and interpret their sensoryimpression in order to give meaning to their environment.$ S.". #obbins

!t is the process of becoming aware of something through the senses and achieving

understanding of itF the process of interpretation based on sensationF the psychologicalability to process or use information received through the sense organs

So that perception is the set of psychological processes by which people recognize,organize, synthesize, and give meaning &in the brain to the sensations received fromenvironmental stimuli &in the sense organs

!h# is it I5portant>

Study about perception is very important because peopleKs behavior is based on theirperception of what reality is, not on reality itself. The world that is perceived is theworld that is behaviorally important.

Sensation usually refers to the immediate, relatively unprocessed result of stimulationof sensory receptors in the eyes, ears, nose, tongue, or skin. "erception, on the otherhand, better describes one's ultimate eperience of the world and typically involvesfurther processing of sensory input. !n practice, sensation and perception are virtuallyimpossible to separate, because they are part of one continuous process.

-erceptual -rocess

 The perceptual process is a se1uence of steps that begins with the environment andleads to our perception of a stimulus and an action in response to the stimulus.

<e speak of a 'sense of humor' because different people sense humor in differentthings. <hat one person perceives &senses to be funny, another person might not.

n the other hand when one has managed to perceive humor in something, laughter &inone register or another follows rather automatically. !t is the behavioral response to theperception of humor.

The perceptual process involves brain structuring? and ho" it organizesinco5ing sti5uli? deter5ines "hat "e e@perience

 The perceptual process is a se1uence of steps that starts with the stimuli that happen inour surroundings and leads through nerve transmission through peripheral and central

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nerves and the brain to our perception of what is going on. !t also includes our resultingaction to the original stimulus.

So, the perceptual process involved when we go outside from a room with no windowson a rainy day is that the stimulus from the environment ) the fact that it is raining andcold and we are getting wet ) is recognized by our senses. ur eyes, ears, cold receptorsand touch receptors all send signals to the brain, which works out that its raining.

 The cognitive process within the brain then comes up with the decision to go back insideand pick up a coat and an umbrella before we set out again. This is our response to thestimulus.

-erson -erception+ ,aing Audg5ents 0bout Others

0ttribution Theor#

Attribution theory is proposed to develop the analysis of the ways in which we 7udgepeople differently. <hen individuals observe behavior, they attempt to determinewhether it is internally &under the personal control of the individual or eternally&outside causes CforceD you to behave a certain way caused.

 

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Internal factors+  The behavior that are believed to be under the personal control ofthe individual. &(ate ver slipping

E@ternal factors+ The result from outside causeF that is the person is seen as havingbeen forced into the behavior by the situation. &(ate Traffic 0am

.istinctiveness+  <hether an individual displays different behaviors in differentsituations. &Unusual behavior

Consensus+  /veryone who is faced with a similar situation responds in thesame way

Consistenc#+  #esponding the same way in over a time.

Freuentl# Used Shortcuts in Audging Others

Selective -erception -eople selectively interpret what they see on the basis of theirinterest, background, eperience, and attitudes. &Student asked<hich sub7ect is most usefulL /ach teachers reply that their ownsub7ect is highly useful and most important to study

Halo Effect >rawing a general impression about an individual on the basis of asingle characteristic. &Students rate the teacher low because ofunfriendliness even though he is knowledgeable, eperienced and

talented

Contrast Effects /valuations of a personKs characteristics that are affected bycomparisons with other people recently encountered who rankhigher or lower on the same characteristics. &!n the interview, if theformer candidate is strong, you might get low score, and theformer is weak, you get high score.

-roection Attributing oneKs own characteristics to other people. &!f you arehighly talented, others too have

 Stereot#ping  0udging someone on the basis of oneKs perception of the group towhich that person belongs. &All +uslims are not terrorists

Factors Influencing -erception

<e see that the same thing is perceived by the individuals differently. <hen theindividual looks at any thing and tries to interpret what he or she sees, thatinterpretation is heavily influenced by personal characteristics like attitudes, personality,interests etc. The following figure eplains the factors that influencing perception

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2. -actors that shape &and can distort perception

• "erceiver

•  Target

• Situation

=. <hen an individual looks at a target and attempts to interpret what he or she sees,that interpretation is heavily influenced by personal characteristics of the individualperceiver.

B. The more relevant personal characteristics affecting perception of the perceiver areattitudes, motives, interests, past eperiences, and epectations.

4. ?haracteristics of the target can also affect what is being perceived. This wouldinclude attractiveness, gregariousness, and our tendency to group similar thingstogether. -or eample, members of a group with clearly distinguishable features orcolor are often perceived as alike in other, unrelated characteristics as well.

I. The contet in which we see ob7ects or events also influences our attention. Thiscould include time, heat, light, or other situational factors.

-erception and Individual .ecision ,aing

!t is the truth that how individuals in organization make decisions and the 1uality to theirfinal choices are largely influenced by their perceptions.

The =in bet"een -erception and Individual .ecision ,aing

>ecisions M ?hoosing between two or more alternatives"roblems M A discrepancy between some current state of affairs and some desired state

Ho" should "e 5ae decisions in organizations>

 To maimize a particular outcome, try the Crational decision making modelDN

Steps in the 2ational .ecision(,aing ,odel

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•  >efine the problem

• !dentify the decision criteria.

• Allocate weights to the criteria.

• >evelop the alternatives.

• /valuate the alternatives.

• Select the best alternative.

0ssu5ptions of the 2ational .ecision(,aing ,odel

-roble5 Clarit#(+  The problem is clear and unambiguous.

Dno"n Options+ The decision)maker can identify all relevant criteria and viablealternatives.

Clear -references+ #ationality assumes that the criteria and alternatives can beranked and weighted.

Constant -references+ Specific decision criteria are constant and that the weightsassigned to them are stable over time.

;o Ti5e or Cost Constraints+ -ull information is available because there is no time orcost constraints.

 ,a@i5u5 -a#off+ The choice alternative will yield the highest perceived value.

So? ho" are decisions actuall# 5ade in organizations>

1 Bounded 2ationalit#+ !ndividuals make decisions by constructing simplified modelsthat etract the essential features from problems without capturing all theircompleity.

3 Intuitive .ecision ,aing+

O !ntuition M an unconscious process created out of distilled eperience.

O !ntuition is often used when there is a high level of uncertainty, there is littleprecedent to go on, when the variable in 1uestion are less predictable, whenCfactsD are limited, these facts donKt lead you in one particular direction, data isof little use, when there are several plausible choices, and there is time pressure

 4 -roble5 Identification

"roblems that are visible tend to have a higher probability of being selected than onesthat are important. <hyL

O !t is easier to recognize visible problems.O >ecision)+akers want to appear competent and Con)top of problems.DO >ecision)+akers self)interest affects problem selection because it is usually in

the >ecision)+akerKs best interest to address problems of high visibility and highpayoff. This demonstrates an ability to perceive and attack problems.

 

7 0lternative .evelop5ent+ >ecision makers rarely seek optimum solutions butsatisf#ing or Cgood enoughD ones.

O /fforts made are simple and confined to the familiar.

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O /fforts are incremental rather than comprehensive.O +any successive limited comparisons rather than calculating value for each

alternative.O This approach makes it unnecessary for the decision maker to thoroughly

eamine an alternative and its conse1uences.O Thus the decision makers steps are small and limited to comparisons of the

current or familiar options.

 Co55on Biases Errors

 <e tend to Ctake shortcutsD in decision making and this allows error and bias to enterour decisions. ?ommon biases and errors include

• Overconfidence Bias <e tend to be overly optimistic &especially whenour intellect and interpersonal abilities are low

• 0nchoring Bias  Tendency to focus on initial information as a startingpoint.

• Confir5ation Bias <e tend to seek out info that reaffirms our pastchoices and we discount info that contradicts our past 7udgments.

• 0vailabilit# Bias ))or the tendency of people to base their 7udgments oninformation readily available to them.

• 2epresentative Bias )) The tendency to assess the likelihood of anoccurrence by drawing analogies and seeing identical situations in whichthey donKt eist.

• Escalation of Co55it5ent ))an increased commitment to a previousdecision in spite of negative information &all too often creeps into decisionmaking

• 2ando5ness Error O <e tend to create meaning out of random events&and superstitions.

• *indsight %ias O <e tend to believe falsely that weKd have accuratelypredicted the outcome of an event, after that outcome is actually known.

Su55ar# and I5plications for ,anagers

!ndividuals behave based not on the way their eternal environment actually is but,rather, on what they see or believe it to be. /vidence suggests that what individuals

 perceive from their work situation will influence their productivity more than will thesituation itself. Absenteeism, turnover, and 7ob satisfaction are also reactions to theindividualKs perceptions.

!ndividuals think and reason before they act. Under some decision situations, peoplefollow the rational decision)making model. *owever, this doesn’t happen very often.So, what can managers do to improve their decision makingL

P Analyze the situation.P %e aware of biases.P ?ombine rational analysis with intuition.P >onKt assume that your specific decision style is appropriate for every 7ob.P Try to enhance your creativity

Unit 4

=earning

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Concept

(earning is one of the most important mental  functions of humans, animals and artificialcognitive systems. !t relies on the ac1uisition of different types of knowledge supported byperceived  information. !t leads to the development of new capacities, skills, values,understanding, and preferences. !ts goal is the increasing of individual and groupeperience.

According to S.". #obbins, C(earning is any relatively permanent change in behaviorthat occurs as a result of eperience.D

So that learning is the process of ac1uiring knowledge, skills, attitudes or values throughstudy, eperience or teaching that causes a change of behaviour that is persistent,measurable and specified or allows an individual to formulate a new mental construct orrevise a prior mental conduct. !t is an ongoing process in occurring at all times.

Steps in =earning

 The followings four are the steps in learning process

2. !nput The communication or message, information or any other that you get fromthe sensory organs is the input for learning.

=. #esponse The response after getting input as an understanding of input !t is theacting shown by the learner, your immediate response whether you motivate ornot.

B. +otivation The drive towards the learning process, showing the activity, interestand attitude to learn. !ndividuals need high degree of motivation towards learning

4. #einforcement The final outcome of learning determines the reinforcement. !t isthe process of forcing the learner to change his or her behavior. The learner isreinforced to learn something using positive as well as negative ways. -or eg.,students get punishment if they became unable to answer.

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,odels of =earning

Also known as theories of learning, models of learning eplain about how individuals learn intheir life. The scientific investigation of the learning process was begun at the end of the23th century by !van "avlov  in #ussia and /dward  Thorndike  in the United States. Threemodels are currently widely used to eplain changes in learned behavior.

1 Classical Conditioning Theor#

According to S.". #obbins, $?lassical conditioning is a type of conditioning in which anindividual responds to some stimulus that would not ordinarily produce such a response.$

 The first model of learning, classical conditioning was initially identified by "avlov to teachdogs to salivate in response to the ringing of a bell.

<hen he presented the dong with a piece of meat, the dog ehibited a noticeable increase

in salivation. <hen he postponed the presentation of meat and only rang the bell, the dogdid not salivate. Then "avlov proceeded to link the meat and the ringing of the bell. Afterrepeatedly hearing the bell before getting food, the dog began to salivate as soon as the bellrang. After some times, the dog started salivating only on the bell ring without meat. Theeffect is the dog had learned to respond)that is, to salivate)to the bell.

Salivation is an innate refle, or unconditioned response, to the presentation of food, anunconditioned stimulus. "avlov showed that dogs could be conditioned to salivate merely tothe sound of a buzzer &a conditioned stimulus, after it was sounded a number of times incon7unction with the presentation of food. (earning is said to occur because salivation hasbeen conditioned to a new stimulus that did not elicit it initially. The pairing of food with thebuzzer acts to reinforce the buzzer as the prominent stimulus.

So that Sti5ulus(response theor#, referred to as S)# theory, is a theoretical model ofbehavioral psychology that suggests humans and other animals can learn to associate a newstimulus) the conditioned stimulus &?S) with a pre)eisting stimulus ) the unconditionedstimulus &U?S, and can think, feel or respond to the ?S as if it were actually the U?S.

3 Operant Conditioning Theor#

A second type of learning, known as operant conditioning, was developed around the same

time as "avlov's theory by Thorndike, and later epanded upon by %. -. Skinner. *ere,learning takes place as the individual acts upon the environment. perant behavior can bedefined as the voluntary or learned behavior in contrast to unlearned behavior.

• #obbins defines that "Operant conditioning is a type of conditioning in which

desired voluntary behavior leads to a reward or prevents a punishment." perantcondition claims that people can learn to behave to get something they want oravoid something the don't want. <hile classical conditioning involvesnaturalnormal reaction, operant conditioning re1uireticular techni1ue wasresponsible for a particular behavior change.

•  There is a strong emphasis on accountability for everyone involved in abehavior modification program.

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Techniues of Behavior ,odification

a -ositive reinforce5ent+  "ositive reinforcement occurs when a behavior&response is followed by a favorable stimulus &commonly seen as pleasant thatincreases the fre1uency of that behavior. Appreciation for well done in 7ob is aneample.

b ;egative reinforce5ent+ 9egative reinforcement occurs when a behavior&response is followed by the removal of an aversive stimulus &commonly seen asunpleasant thereby increasing that behavior's fre1uency. <hen teacher asks a1uestion to you, you try to see note book so that teacher would not punishyou.

c -unish5ent+

-ositive punish5ent  &also called $"unishment by contingent stimulation$

occurs when a behavior &response is followed by an aversive stimulus, such asintroducing a shock or loud noise, resulting in a decrease in that behavior.

;egative punish5ent  &also called $"unishment by contingent withdrawal$occurs when a behavior &response is followed by the removal of a favorablestimulus, such as taking away a child's toy following an undesired behavior,resulting in a decrease in that behavior.

d E@tinction+ /liminating any reinforcement, maintaining the current behavior

!n shaping behavior, reinforcement is very important tool rather then punishment or

etinction. So that whether it is positive or negative, you need to apply reinforcement butschedules can be varied. !t can be continuous or intermittent, fied interval or variable)interval type.

Unit 7

-ersonalit#

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Concept

As we meet different people in our daily lives, we talk about their personality. <e needto see personality not at parts of the person, but as a whole. "ersonality is the differentphysical and mental characteristics that reflect how a person looks, feels, decides, actsand reacts which comprises internal &invisible and eternal &visible character.

"ersonality can be defined as

• the comple of all the attributes))behavioral, temperamental, emotional andmental))that characterize a uni1ue individual

• A set of 1ualities that make a person &or thing distinct from anotherF An assumedrole or manner of behaviorF A celebrityF ?harisma, or 1ualities that make a personstand out from the crowdF "ertaining to personality

• means &2 the sum of the characteristics which make up physical and mentalbeing, including appearance, manners, habits, tastes and moral characterF &= thecharacteristics that distinguish one person from another &this is e1uivalent toindividualityF &B the capacity for having mental states

"Personality is the sum total of ways in which an individual reacts and interactswith others.") S.". #obbins

"ersonality is made up the characteristic patterns of thoughts, feelings, and behaviorsthat make a person uni1ue. "ersonality originates within the individual and remainsfairly consistent throughout life.

"ersonality psychologists are interested in the uni1ue characteristics of individuals, aswell as similarities among groups of people. "ersonality is displayed through thoughts,feelings, behaviors and many other ways.

.eter5inants of -ersonalit#

Heredit#

#esearchers have discovered that almost fifty percent of human behavior andpersonality characteristics are genetically inherited. Those are the parental andbiological factors, physiological and psychological factors.

Environ5ent

 The environment the individual grows up, the family background, culture and society,norms and belief, values and attitude, education, income, employment influences thepersonality. "ositive Q negative aspects of upbringing affect personality.

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Heredit#"hysical structure-acial attractiveness Temperament

&nature +uscle ?omposition/nergy (evel6ender, age, race,

height, weight

Environ5ent-amily background/ducation!ncome/mployment/perienceSociety, culture

and friends

Situation The situationalfactors that showsthe certain behaviors&"lace, -unction,"osition

-ersonalit#Behavior

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Situation

/ven though environment and heredity determines the personality, the situation maymodify in individual's personality. The demand of the current situation, the place,function and position greatly influences in showing the certain behavior. Some situationsare in temple, at employment interview, at "icnic, "ublic "ark.

-ersonalit# Traits

"ersonality traits are the bearing or enduring characteristics that describes the behaviorof an individual like shy, aggressive, lazy, ambitious, loyal, timid &fearful etc..

!ndividuals show those traits repetitively in a noticeable form and those charactersbecome personality traits. #esearchers believe that the personality traits could help inemployee selection, placement and career development.

>ifferent scientists tried to identify the common personality traits and they spent manyyears . The two popular models of "ersonality Traits are eplained below.

0 The ,#ers(Briggs T#pe Indicator $,BTI*

"ersonality Type or "sychological Type are terms most commonly associated withthe model of personality development created by !sabel %riggs +yers the author of

the world's most widely used personality inventory, the +%T! or +yers)%riggs Type!ndicator.

The Basic Model: 2 Kinds of Mental Processes, 2 Kinds of Mental Orientations

3 Dinds of ,ental -rocesses

a The first set of mental preferences relates to how people 9-erceive9 or take ininformation.

 Those who prefer Sensing  "erception favor clear, tangible data andinformation that fits in well with their direct here)and)now eperience. Theylike practical and prefer routine and order.

!n contrast, those who prefer Intuition "erception are drawn to informationthat is more abstract, conceptual, big)picture, and represents imaginativepossibilities for the future.

 Sensing Characteristics

• +entally live in the 9ow,attending to presentopportunities

Intuitive Characteristics 

• +entally live in the -uture,attending to future possibilities

• Using imagination and

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• Using common sense andcreating practical solutionsis automatic)instinctual

• +emory recall is rich indetail of facts and past

events

• %est improvise from pasteperience

• (ike clear and concreteinformationF dislike guessingwhen facts are $fuzzy$

creatinginventing new possibilitiesis automatic)instinctual

• +emory recall emphasizespatterns, contets, andconnections

• %est improvise from theoreticalunderstanding

• ?omfortable with ambiguous, fuzzydata and with guessing itsmeaning.

b The second set of mental preferences identifies how people form 9Audg5ents9 or make decisions. !n the +yers +%T! Type ?ode, this is the third letter.

 Those who prefer  Thinking  0udgment have a natural preference for makingdecisions in an ob7ective, logical, and analytical manner with an emphasis ontasks and results to be accomplished.

 Those whose preference is for Feeling  0udgment make their decisions in asomewhat global, visceral, harmony and value)oriented way, paying particularattention to the impact of decisions and actions on other people.

 Thining Characteristics 

• !nstinctively search for factsand logic in a decisionsituation.

• 9aturally notices tasks andwork to be accomplished.

• /asily able to provide anob7ective and criticalanalysis.

• Accept conflict as a natural,normal part of relationshipswith people.

Feeling Characteristics 

• !nstinctively employ personalfeelings and impact on people indecision situations

• 9aturally sensitive to peopleneeds and reactions.

• 9aturally seek consensus andpopular opinions.

• Unsettled by conflictF have almosta toic reaction to disharmony.

3 Dinds of ,ental Orientations

a* Introversion vs E@troversion

 Those who prefer Introversion  draw their primary energy from theinner world of information, thoughts, ideas, and other reflections. <hencircumstances re1uire an ecessive amount of attention spent in the

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$outside$ world, those preferring !ntroversion find the need to retreat toa more private setting, they are very 1uit and shy.

!n contrast, those who prefer Extraversion are drawn to the outsideworld as their elemental source of energy. #arely, if ever, do

etraverted preference people feel their energy batteries are $drained$by ecessive amounts of interaction with the outside world. They mustengage the things, people, places and activities going on in the outsideworld for their life force, they are sociable and outgoing

E@travertedCharacteristics 

• Act first, thinkreflect later• -eel deprived when cutoff

from interaction with theoutside world

• Usually open to andmotivated by outside worldof people and things

• /n7oy wide variety andchange in peoplerelationships

Introverted Characteristics 

•  Thinkreflect first, then Act• #egularly re1uire an amount of

$private time$ to rechargebatteries

• +otivated internally, mind issometimes so active it is $closed$to outside world

• "refer one)to)one communicationand relationships

b* Audging vs -erceiving

 Those who prefer Judging typically leads to a style oriented towards closure,organization, planning, or in some fashion managing the things and or peoplefound in the eternal environment. The drive is to order the outside world.

 They want control, to be ordered and well structured.

 Those who prefer Perceiving typically results in an open, adaptable, fleiblestyle of relating to the things and people found in the outside world. The driveis to eperience the outside world rather than order itF in general lack of

closure is easily tolerated.

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  Audging Characteristics 

• "lan many of the details inadvance before moving intoaction.

• -ocus on task)related actionFcomplete meaningfulsegments before moving on.

• <ork best and avoid stresswhen keep ahead ofdeadlines.

• 9aturally use targets, datesand standard routines tomanage life.

-erceiving Characteristics 

• Comfortable moving into action without a plan;

plan on-the-go.• (ike to multitask, have variety, mi

work and play.

• 9aturally tolerant of time pressureFwork best close to the deadlines.

• !nstinctively avoid commitments whichinterfere with fleibility, freedom andvariety

B Big Five -ersonalit# Traits

The "Big Five" personality traits are five broad factors or dimensions of personality discovered

through empirical research by 4ohn (earden

+he five factors are as follows5

1 Openness to e@perience ) appreciation for art, emotion, adventure, unusual

ideas, imagination, curiosity, and variety of eperience.

Openness  is a general appreciation for art, emotion, adventure, unusual ideas,imagination, curiosity, and variety of eperience. The trait distinguishesimaginative people from down)to)earth, conventional people. "eople who areopen to eperience are intellectually curious, appreciative of art, and sensitive tobeauty. !n compared to closed people, they tend to be,more creative and moreaware of their feelings and unconventional beliefs.

Sa5ple Openness ite5s

• ! am full of ideas.•

! am 1uick to understand things.• ! have a rich vocabulary.• ! have a vivid imagination.• ! have ecellent ideas.• ! spend time reflecting on things.• ! use difficult words.• ! am not interested in abstract ideas. &reversed• ! do not have a good imagination. &reversed• ! have difficulty understanding abstract ideas. &reversed

3 Conscientiousness  ) a tendency to show self)discipline, responsible, actdutifully, and aim for achievementF planned rather than spontaneous behaviour.

Conscientiousness is a tendency to show self)discipline, act dutifully, and aimfor achievement. The trait shows a preference for planned rather than

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spontaneous behaviour. !t influences the way in which we control, regulate, anddirect our impulses. ?onscientious individuals avoid trouble and achieve highlevels of success through purposeful planning and persistence. They are alsopositively regarded by others as intelligent and reliable.

Sa5ple Conscientiousness ite5s

• ! am always prepared.• ! am eacting in my work.• ! follow a schedule.• ! get chores done right away.• ! like order.• ! pay attention to details.• ! leave my belongings around. &reversed• ! make a mess of things. &reversed• ! often forget to put things back in their proper place. &reversed• ! shirk my duties. &reversed

4 E@troversion  ) energy, positive emotions, surgency, and the tendency to seekstimulation and the company of others.

E@traversion, also called $etroversion,$ is characterized by positive emotions,surgency, and the tendency to seek out stimulation and the company of others./traverts en7oy being with people, and are often perceived as full of energy.

 They tend to be enthusiastic, action)oriented individuals who are likely to say$GesR$ or $(et's goR$ to opportunities for ecitement. !n groups they like to talk,assert themselves, and draw attention to themselves. !ntroverts lack theeuberance, energy, and activity levels of etraverts. They tend to be 1uiet, low)key, deliberate, and less involved in the social world. Their lack of social

involvement should not be interpreted as shyness or depression. !ntroverts simplyneed less stimulation than etraverts and more time alone.

Sa5ple E@traversion ite5s

• ! am the life of the party.• ! don't mind being the center of attention.• ! feel comfortable around people.• ! start conversations.• ! talk to a lot of different people at parties.• ! am 1uiet around strangers. &reversed• ! don't like to draw attention to myself. &reversed• ! don't talk a lot. &reversed• ! have little to say. &reversed

7 0greeableness ) a tendency to be compassionate and cooperative rather thansuspicious and antagonistic towards others.

0greeableness is a tendency to be compassionate and cooperative rather thansuspicious and antagonistic towards others. The trait reflects individualdifferences in concern for social harmony. Agreeable individuals value gettingalong with others. They are generally considerate, friendly, generous, helpful, andwilling to compromise their interests with others. Agreeable people also have anoptimistic view of human nature. They believe people are basically honest,

decent, and trustworthy.

>isagreeable individuals place self)interest above getting along with others. Theyare generally unconcerned with othersK well)being, and are less likely to etend

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themselves for other people. Sometimes their skepticism about othersK motivescauses them to be suspicious, unfriendly, and uncooperative.

Sa5ple 0greeableness ite5s

• ! am interested in people.• ! feel othersK emotions.• ! have a soft heart.• ! make people feel at ease.• ! sympathize with othersK feelings.• ! take time out for others.• ! am not interested in other peopleKs problems. &reversed• ! am not really interested in others. &reversed• ! feel little concern for others. &reversed• ! insult people. &reversed

& E5tional Etsbilit# $;euroticis5*  ) a tendency to eperience unpleasantemotions easily, such as anger, aniety, depression, or vulnerabilityF sometimescalled emotional instability.

;euroticis5 is the tendency to eperience negative emotions, such as anger,aniety, or depression. !t is sometimes called emotional instability. Those whoscore high in neuroticism are emotionally reactive and vulnerable to stress. Theyare more likely to interpret ordinary situations as threatening, and minorfrustrations as hopelessly difficult. Their negative emotional reactions tend topersist for unusually long periods of time, which means they are often in a badmood. These problems in emotional regulation can diminish a neurotic's ability tothink clearly, make decisions, and cope effectively with stress.

At the other end of the scale, individuals who score low in neuroticism are less

easily upset and are less emotionally reactive. They tend to be calm, emotionallystable, and free from persistent negative feelings. -reedom from negativefeelings does not mean that low scorers eperience a lot of positive feelings.

Sa5ple ;euroticis5 ite5s

• ! am easily disturbed.• ! change my mood a lot.• ! get irritated easily.• ! get stressed out easily.• ! get upset easily.• ! have fre1uent mood swings.•

! often feel depressed.• ! worry about things.• ! am relaed most of the time. &reversed• ! seldom feel depressed.&reversed

,aor -ersonalit# Influencing Organizational Behavior

+he followings are the maor personality traits which influences organi#ational behavior 

1 =ocus of Control+  The locus of control is the belief of the indivudla whetherthey are the master of their fate. !t can either be internal &meaning you believethat you control yourself and your life or eternal &meaning you believe that yourenvironment, some higher power or other people control your decisions and your

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life. !t was developed by  0ulian %. #otter  in 23I4 as an important aspect ofpersonality.

Internals  tend to attribute outcomes of events to their own control. !ternalsattribute outcomes of events to eternal circumstances. -or eample, collegestudents with a strong internal locus of control may believe that their grades wereachieved through their own abilities and efforts, whereas those with a stronge!ternal  locus of control may believe that their grades are the result of good orbad luck, or to a professor who designs bad tests or grades capriciouslyF hence,they are less likely to epect that their own efforts will result in success and aretherefore less likely to work hard for high grades.

#esearches have shown that individulas who are eternals are less satisfied withtheir 7obs, they have higher abseentism, do less effort and they are moredissatisfied because they perceive as having little control by them in success andoutcomes and vice versa for internals.

3 ,achiavellianis5

,achiavellianis5  is primarily the term some social and personalitypsychologists use to describe a person's tendency to deceive and manipulateothers for personal gain. The trait is named after ;iccolG ,achiavelli?propounded the theory in using power and gaining, can also refer to the doctrineof +achiavelli who described about the politics of siteenth century's politicalleaders who used to deceive people to influence others. <e can categories intotwo *igh +ach and (ow +ach personality.

*igh +achs They tend to take a more detached, calculating approach in theirinteraction with other people. They tend to believe most people are concerned

only with their own well)being, selfish and to depend too much on anyone else isfoolish. They believe some of the most efficient ways to achieve a goal are to usedeception, rewards, promises, flattery &sweet talk and even punishments tomanipulate others into doing their bidding.

(ow +achs They tend to take a more personal, empathic approach in theirinteraction with other people. They tend to be more trusting of others and morehonest. They believe humans are essentially good natured. At the etreme, low+achs are passive, submissive, and highly agreeable. They also tend to believethat everyone has a good and bad side.

4 Self(Estee5

Self)esteem is a person's overall self )appraisal of his or her own worth. !t is thedegree they like or dislike themselves. Self)esteem encompasses beliefs &foreample, $! am competent  incompetent$ and emotions &for eample,successfailure, pride humiliation.

Self)esteem can apply specifically to a particular dimension &for eample, $!believe ! am a good writer, and feel proud of that in particular$ or have global

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etent &for eample, $! believe ! am a good person, and feel proud of myself ingeneral$.

7 Self(,onitoring

 The theory is proposed by +ark Snyder in 23;4. The theory refers to the processthrough which people regulate their own behavior in order to $look good$ so thatthey will be perceived by others in a favorable manner. !t disintinguishesbetween high self)monitors, who monitor their behaviour to fit differentsituations, and low self)monitors, who are more cross)situationally consistent.

$ome people are sensitive to how other sees them, and they always ad7ust theirbehavior to eternal situational factors. "eople who are high selfmonitorsconstantly watch other people, what they do and how they respond to thebehavior of others and will hence usually adapt well to differing social situations.n the other hand, low selfmonitors are generally unaware to how other seethem and hence show to their own different style.

& 2is Taing

!t is the willingness to take risk or chances. Some people want to take high risk forgaining something while others do not like taking risk. Such personality highlyinfluences the managerial decision making and information needed for it. *ighrisk taking managers make more rapid decisions and use less information inmaking their decisions than do the low risk taking managers.

' T#pe 0 -ersonalit#

 The Type A and Type % are a personality type theory that describes a pattern ofbehaviors of the individuals.

 Type A individuals can be described as impatient, ecessively time)conscious,insecure about their status, highly competitive, aggressive, and incapable ofrelaation. Type % individuals, in contrast, are described as patient, relaed, andeasy)going.

T#pe 0s

2. Are always moving, walking and eating rapidly

=. fell impatient with the rate at which most events take place

B. strive two think or do two o more things at once4. cannot cope with leisure time

I. are obsessed with numbers, measuring their success in terms of how manyor how much of everything they ac1uire

T#pe Bs

2. 9ever suffer from sense of time urgency with its accompanying impatience

=. feel no need to display or discuss either their achievements oraccomplishments unless such eposure is demanded by the situation

B. play for fun and relaation, rather than to ehibit their superiority at anycost

4. can rela without guilt &faultSource S.". #obbins and Seema Sanghi, =55; p.p 25I

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8 -roactive -ersonalit#

"roactive personality is the trait of the individual who identify opportunities, showinitiative, take action and preserve until meaningful change occurs. They create apositive change in environment to remove obstacles and go forward. Thesepeople are highly suitable for entrepreneurship, management and they are likelyto be success. 9evertheless, they may leave the organization to establish theirown business. They are very clever in maintaining relationship, influencing worksituations and career planning.

,atching -ersonalit# and Aobs

+atching the individual's personality and his or her 7ob is a great challenge not only forthe managers but also the individuals who seek their career. The best fit between the

personality and their occupation of course leads to success in their life.

1 -erson(Aob Fit

!n this contet, 0ohn *olland >evelopment "ersonality)0ob -it Theory. *e eplained it• *olland presents si personality types and proposes that satisfaction and the

propensity to leave a 7ob depend on the degree to which individuals successfullymatch their personalities to an occupational environment.

• /ach one of the si personality types has a congruent occupational environment.

•  The theory argues that satisfaction is highest and turnover lowest whenpersonality and occupation are in agreement.

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T#pe -ersonalCharacteristics

CongruentOccupation

Realistic: "refers physicalactivities that re1uire skill,strength and coordination

Shy, genuine, persistent,stable, conforming,practical

+echanic, drill pressoperator, assembly)lineworker, farmer

Investigative: "refers activitiesthat involve thinking, organizingand understanding

Analytical, original,curious, independent

%iologist, economist,mathematician newsreporter

Social: "refers activities thatinvolve helping and developingothers

Sociable, friendly,cooperative,understanding

Social worker, teacher,counselor, clinicalpsychologists

Conventional:  "refers rule)regulated, orderly, and

unambiguous activities

?onforming, efficient,practical, unimaginative,

infleible

Accountant, corporatemanager, bank teller,

file clerk

Enterprising:  "refers verbalactivities in which there areopportunities to influence othersand attain power

Self)confident, ambitious,energetic, domineering

(awyer, real stateagent, public relationspecialist small businessmanager

 Artistic: "refers ambiguous andunsystematic activities thatfollow creative epression

!maginative, disorderly,idealistic, emotional,impractical

"ainter, musician,writer, interior decorator

2. The -erson(Organization Fit

 The "erson)rganization -it argues that people leave organizations that are notcompatible with their personalities. rganizations need to use %ig)-ive "ersonality

 Traits to make the organizational environment favorable to the employees so that theycan keep the individuals for long.

• +ost important for an organization facing a dynamic and changing environment,and re1uiring employees who are able to readily change tasks and move fluidlybetween teams.

• !t argues that people leave 7obs that are not compatible with their personalities.

+atching people to the organizational culture at the time of hiring should result inhigher employee satisfaction and reduced turnover.

Unit &

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,otivation

Concept and -rocess

Since motivation influences productivity, supervisors need to understand what

motivates employees to reach peak performance. !t is not an easy task to increaseemployee motivation because employees respond in different ways to their 7obs andtheir organization's practices.

,otivation is the set of processes that moves a person toward a goal. Thus, motivatedbehaviors are voluntary choices controlled by the individual employee. The supervisor&motivator wants to influence the factors that motivate employees to higher levels ofproductivity.

-actors that affect work motivation include individual differences, 7ob characteristics,and organizational practices. !ndividual differences are the personal needs, values, andattitudes, interests and abilities that people bring to their 7obs. 0ob characteristics are

the aspects of the position that determine its limitations and challenges.rganizational practices are the rules, human resources policies, managerial practices,and rewards systems of an organization. Supervisors must consider how these factorsinteract to affect employee 7ob performance.

$The process that account for an individual's intensity direction and persistence ofeffort toward attaining a goal.$ ) S.". #obbins

$+otivation is the set of forces that causes people to behave in certain ways.$ #.<.6riffin

On an# given da#? an e5plo#ee 5a# choose to "or as hard as possibleat a ob? to "or ust a hard enough to avoid a repri5and $"arning*? orto do as little as possible The =evel of 5otivation varies both bet"eenindividual and "ithin individuals at different ti5es "hich lead to sho"the afore5entioned behavior

The ,otivation Fra5e"or $-rocess of ,otivation*

I5portance of ,otivation

2. ptimum use of resources=. "roductivity improvement

0

Need(Deficiency)

Search for waysto satisfy need

Choice of behavior tosatisfy need

Choice of behavior tosatisfy need

Evaluation of NeedSatisfaction

Determination of future needsand searchchoice or

satisfaction

!otivation

"eedbac#

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B. /fficiency and effectiveness4. Understand /mployee behaviourI. /mployee retention8. ?reativity promotion;. 0ob SatisfactionJ. ther employee factors

- (ow employee turnover

- #educe absenteeism- #educe rate of accidents- %etter employee discipline- #educed employee grievances- *armonious labour relation

,otivation Theories

Earl# Theories

 The theories which have not held up well under eamination2. +aslow's 9eed *ierarchy Theory=. *ertzberg's +otivation *ygiene TheoryB. Theory E and Theory G

Conte5porar# Theor#

 There are number of contemporary theories that have one ting in common)each has a

reasonable degree of valid supporting documentation.

2. /pectancy Theory=. /#6 TheoryB. /1uity Theory4. +c?lelland's 9eed Achievement Theory

1 ,aslo"s Hierarch# of ;eeds Theor#

 There is a hierarchy of five needs)physiological, safety, social, esteem an self

actualizationF each need is substantially satisfied, the net need becomes dominant.

1

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Criticis5s

2. Theoretical difficulties=. 9ot research basedB. Superfluous classification scheme The model is based more on wisher of what an

'S*U(> %/' rather than what he 'A?TUA((G' is.4. !ndividual difference

3 Theor# and Theor# J  &>ouglas +c6regor

Theor#

 The assumptions that employees dislike work, are lazy, dislike responsibility, and must becoerced to perform.

Theor# J 

 The assumption that employees like work, are creative, seek responsibility and can eercise selfdirection.

0ssu5ption of Theor#

2. /mployees inherently dislike work and, wherever possible, will attempt to avoid it.=. Since employee dislike work, they must be coerced, controlled, or threatened punishment

to achieve goals.B. /mployees will avoid responsibility and seek formal direction whenever possible4. +ost workers place security above all other factors associated with work and will display

little ambition.

0ssu5ption of Theor# J 

2. /mployees can view work as being a natural as rest play=. "eople will eercise self)direction and self)control if they are committed to the ob7ectives.B. The average person can learn to accept, even seek responsibility.4. The ability to make innovative decision is widely dispersed throughout the population and

is not necessarily the sole province of those in management positions.

2

Physiological needs$unger% thirst% the activity% sleep% se&

Safety needs

Social needs'elongingness% affection% friendship

Self ctualiationNeeds

Esteem Needs*espect of others% and ego

or status needs

chievement

Status

"riendship

Stability

'odily needs'ase Salary

+ension +lans

"riends at wor#

,ob itle

Challenging .ob

'ase Salary

/ow orderneeds

$igh orderneeds

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4 Hertzbergs ,otivation(H#giene Theor# &>uel -actor Theory

H#giene Factors $Intrinsic*&dissatisfiers

-  These factors are necessary to avoid dissatisfaction.a. ?ompany policy and administrationb. Technical supervisionc. !nterpersonal relations with superiors, peers and subordinatesd. Salarye. 0ob Securityf. "ersonal lifeg. <ork conditionsh. Status

,otivational Factorsa. Achievementb. #ecognition

c. <ork itself d. #esponsibilitye. Advancementf. 6rowth

Contrasting vie"s of Satisfaction

 Traditional @iewSatisfaction #issatisfaction

Herzbergs vie"

+otivatorsSatisfaction $o satisfaction

*ygiene -actors$o dissatisfaction #issatisfaction

Criticis5s2. The procedure that *ertzberg used is limit by its methodology. <hen things are going

well, people tend to take credit themselves. They blame failure on the etrinsicenvironment.

=. The reliability of *ertzberg's methodology is 1uestioned.B. 9o overall measure of satisfaction was used.4. The theory is inconsistent with previous research. !t ignores situational variables.I. 9o relationship between satisfaction and productivity.

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Co5parisons bet"een Hierarch# of ;eeds Theor# and ,otivation(H#gieneTheor#

7 E2/ Theor# $Cla#ton 0lderfer*

-  There are three groups of core needs eistence, relatedness and growth.

/rowth&/steem, Selfactualization

needs2elatedness&Socialneeds

Eistence&"hysiologicalandsafety needs

/#6 Theory argues that satisfied lower)order needs lead to desire to satisfied higher)order needsFbut multiple needs can be operating as motivators at the same time, and frustrations in

attempting to satisfy a higher)level need can result in regression to a lower level need.

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& ,cClellands ;eed 0chieve5ent Theor# &>avid +c?lelland

1 ;eed for achieve5ent$ n0ch*-  The desire to accomplish a goal or task more effectively than the past)personal

responsibility etc.3 ;eed for affiliation $n0ff*-  The desire for human companionship and acceptance &social interaction, offer

opportunities to make friends

B. 9eed for "ower &n"ow-  The desire to be influential in a group and to control one's environment. &supervisory

positions

' Euit# Theor# &0 Stacy Adams

/1uity theory suggests that people are motivated to seek social e1uity in the rewards theyreceive for performance.

An employee selects adds to the compleity of e1uity theory. There are four referentcomparisons that an employee can use

1 Self(inside + An employee's epectations in a different position inside his or her currentorganization

3 Self(outside + An employee's eperiences in a situation or position outside his or hercurrent organizations.

4 Other(inside + Another individuals or group of individuals inside the employeesorganization.

7 Other(outside + Another individual or group of individuals outside the employee'sorganization.

The euit# co5parison process

utcomes &Self LM

utcomes &thers!nputs &Self !nput &thers

<hen employees perceive an ine1uity, they can be predicted to make one of si choices2 ?hange their inputs)effort= ?hange their outcomes)result &product

B >istort perception of self 4 >istort perception of othersI ?hoose different referent8 (eave the field1uit 7ob

3

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8 E@pectanc# Theor# &@ictor @room

A theory of motivation that suggests that motivation depends on two things, how much wewant something and how likely we think we are to get it.

+otivation M /pectancy E @alence

2. /ffort)to)performance epectancy relationship=. "erformance )to)outcome &#eward relationshipB. #ewards )to)personal goals relationship

@alence M utcome

2ecap of ,otivational Theories

Theor# IndividualSu55ar#

*ierarchy of9eeds

Abraham+aslow

-ive needs in an hierarchical order from lowest to highest physiological,safety, social, esteem, self actualization.An individual moves up the hierarchy and, when a need is substantiallyrealized, moves up to the net need.

 Theory E) Theory G

>ouglas+c6regor

"roposes two alternative sets of assumptions that managers hold abouthuman beings' motivation)one basically negative, labeled Theory EF and theother basically positive, labeled Theory G.+c6regor argues that Theory G assumptions are more valid that Theory Eand that employee motivation would be maimized by giving workersgreater 7ob involvement and autonomy

+otivation)*ygiene

-rederick*ertzberg

Argues that intrinsic 7ob factors motivate whereas etrinsic factors onlyplacate employees.

/#6 Theory ?laytonAlderfer

 There are three groups of core needs eistence, relatedness and growth./istence "hysiological and safety needs#elatedness Social needs6rowth /steem, Self actualization needs

9eedAchievement

>avid+c?lelland

"roposes that there are three ma7or needs in workplace situationsachievement, affiliation and power A high need to achieve has beenpositively related to higher work performance when 7obs provideresponsibility, feedback, and moderate challenge.

/1uity Theory

 0. StaceyAdams

An individual compares his or her inputoutcome ratio to that of relevantothers. !f there is a perceived ine1uity, the individual will change his or herbehaviour or compare themselves with someone else.

/pectancy Theory

@ictor @room "roposes that motivation is a function of valence &value of the effortperformance and the performance reward relationships.

Unit '

/roups in Organization

Concept

6

0ndividualEffort

0ndividual+erformance

1rganiational *esources

+ersonal2oals

E+ +13alence

  1 2

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/roup can be defined as two or more humans that interact with one another, acceptepectations and obligations as members of the group, and share a common identity. Atrue group ehibits some degree of cohesion and is more than a simple collection oraggregate of individuals, such as people waiting at a bus stop. ?haracteristics shared bymembers of a group include interests, values, ethnic or social background, and kinshipties. According to "aul *are, the defining characteristic of a group is social interaction.

So that group can be defined as two or more freely interacting individuals who share acommon identity and purpose.

$6roup is defined as two or more persons who interact regularly to accomplish acommon purpose or goal.$ ) 6ary >essler

$A work group is a collection of two or more people who interact with each other, sharesimilar interests and come together to accomplish some work activity.$ ) Arnold Q-eldman

$Two or more individuals, interacting and interdependent, who have come together to

achieve particular ob7ectives.$) S.". #obbins

Characteristics of group

a Two or more peopleb !nteraction and interdependencec Similar interestsd ?ommon identitye ?ommon purpose or goalsf !nformal leadershipg !ndividual accountability

h %ehavioural normsi ?ohesiveness

!h# do -eople Aoin /roup>

Securit# %y 7oining a group, individuals can reduce the insecurity of$Standing alone.$ "eople feel stronger, have fewer self)doubts, and aremore resistant to threats when they are part of a group.

Status !nclusion in a group that is viewed as important by others providesrecognition and status for its members.

Self(Estee5  6roups can fulfil social needs. "eople en7oy the regularinteraction that comes with group membership. -or many people, these on)the)7ob interactions are their primary source for fulfilling their needs foraffiliation.

-o"er <hat cannot be achieved individually often becomes possiblethrough group action. There is power in numbers.

/oal 0chieve5ent. There are times when it takes more than one personto accomplish a particular task)there is a need to pool talents, knowledge,or power in order to complete a 7ob. !n such instances, management willrely on the use of a formal group.

(Source: SP Ro!!ins and See"a Sanghi# $%%& pp$$'

7

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T#pes of groups

1* For5al group+ -ormal group is a collection of people created to do something productive thatcontributes to the success of the larger organization. -ormal group is defined byorganizational structure and established under formal authority.

a Co55and group+ A group created by the organization that report directlyto the specified manager and are controlled by himher.

b Tas /roups+  A group with cross command relationship who are notlimited to their hierarchical form and work together to complete a 7ob ortask. They need high coordination among the group members and areresponsible for specific non)routine activities.

3* Infor5al group+ A group created by its members for purpose that may or maynot be relevant to the organization's goals. !t is not defined by organizationalstructure and it does not have formal authority. !t is a collection of people seekingfriendship and acceptance that satisfies esteem needs.

a Interest group+ Those who form a grouping to fulfil the certain interestwhich is concerned by each member.

b Friendship group+ The group which is formed for social alliance and theycome together that have common characteristics for fostering friendship.&/thnic groups#eligious 6roups of other

;ature and Significance of Infor5al /roup

;ature of Infor5al /roup+

) !nfluenced by personal goal &rather than organizational goal) 9ot defined by organizational structure

) 9o formal reporting relationship and authority

) "ersonal interest

) ?ommon characteristics of the group members

) Temporary in nature$Ethnic groups? politics affiliated unions are so5e e@a5ples*

Significance of Infor5al /roup

) To fulfill relatedness needs) To enhance affiliation among organizational members

) To increase social identity of the group members

) To accomplish tasks that are not possible individually through formal relationsalone

) To influence people outside the group

/

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/roup For5ation -rocess

A well functioning group does not 7ust form in ad hoc. !t needs to follow a systematicprocess and takes time to develop to a point where it can be effective and where allmembers feel connected to it. There are popular five stages of group developmentwhich is eplained below

For5ing

 This is the initial stage when the group comes together and members begin todevelop their relationship with one another and learn what is epected of them. Thisis the stage when team building begins and trust starts to develop and individualstest themselves whether they can be the part of group. 6roup members will startestablishing limits on acceptable behavior through eperimentation. !n this stage, itis uncertain about the purpose, structure of group and leader.

Stor5ing

>uring this stage of group development, interpersonal conflicts arise and differencesof opinion about the group and its goals will surface. !f the group is unable to clearly

state its purposes and goals or if it cannot agree on shared goals, the group maycollapse at this point. !t is important to work through the conflict at this time and toestablish clear goals. !t is necessary for there to be discussion so everyone feelsheard and can come to an agreement on the direction the group is to move in.

;or5ing

nce the group resolves its conflicts, it can now establish patterns of how to get itswork done. !n this stage, we find the close relationship and cohesiveness among thegroup members. /pectations of one another are clearly articulated and accepted bymembers of the group. -ormal and informal procedures are established in delegating

tasks, responding to 1uestions, and in the process by which the group functions.+embers of the group come to understand how the group as a whole operates.

-erfor5ing

!t is the final stage for the permanent work group. >uring this fourth stage of groupdevelopment, issues related to roles, epectations, and norms are no longer of ma7orimportance. The group is now focused on its task, working intentionally andeffectively to accomplish its goals. The group will find that it can en7oy itsaccomplishments and that members will be learning new skills and sharing roles.

After a group enters the performing stage, it is unrealistic to epect it to remain

there permanently. <hen new members 7oin or some people leave, there will be anew process of forming, storming, and norming engaged as everyone learns aboutone another. /ternal events may lead to conflicts within the group. To remainhealthy, groups will go through all of these processes in a continuous circle.

9

-orming Storming 9orming "erforming

 Test whichinterpersonalbehaviors ateacceptable andwhich areunacceptable tothe other members

>evelopgroup structure

6roup'sagenda

#ecognizingleader

"attern ofinteraction

Acceptanceof roles andunderstandothers role

Sense ofunity

/nactingroles

>irect efforttoward goalattainment andperformance

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0dourning

 The final stage of group development is ad7ourning which is only for the temporarygroups. !n this stage, the temporary group members who has specific goal enclose alltheir activities and formally end the group.

<hen conflict arises in a group, do not try to silence the conflict or to run from it. (etthe conflict come out into the open so people can discuss it. !f the conflict is keptunder the surface, members will not be able to build trusting relationships and thiscould harm the groupKs effectiveness. !f handled properly, the group will come out ofthe conflict with a stronger sense of cohesiveness then before.

/roup Structure+

Concept

6roup structure is the process of shaping the behavior of the individual members tomake it possible to eplain and able to predicting their behavior for increasing thegroup performance. <e study the different variables of those group structure whichhelps understanding and shaping the behavior. 

The structural variables

 There are different variables that structure the group which are roles, norms, groupsize, composition and cohesiveness. Those individual variables are eplained below.

=eadership

(eadership is a process by which a person influences others to accomplish anob7ective and directs the organization in a way that makes it more cohesive andcoherent. (eaders carry out this process by applying their leadership attributes, suchas beliefs, values, ethics, character, knowledge, and skills. To be an effective leader,your followers must have trust in you and they need to be sold on your vision.

So5e leadership attributes+

Beliefs are what we hold dear to us and are rooted deeply within us. They could beassumptions or convictions that you hold true regarding people, concepts, or things.

 They could be the beliefs about life, death, religion, what is good, what is bad, whatis human nature, etc.

Kalues are attitudes about the worth of people, concepts, or things. -or eample,you might value a good car, home, friendship, personal comfort, or relatives. @aluesare important as they influence a person's behavior to weigh the importance ofalternatives. -or eample, you might value friends more than privacy, while others

might be the opposite.Sills are the knowledge and abilities that a person gains throughout life. The abilityto learn a new skill varies with each individual. Some skills come almost naturally,while others come only by complete devotion to study and practice.

0

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Traits are distinguishing 1ualities or characteristics of a person, while character isthe sum total of these traits. There are hundreds of personality traits, far too many tobe discussed here. !nstead, we will focus on a few that are crucial for a leader. Themore of these you display as a leader, the more your followers will believe and trustin you. Some traits of leadership are *onest, -orward)(ooking, ?ompetent, !nspiring,!ntelligent etc.

(eaders have clear visions and they communicate these visions to their employees.At another word, leadership means working with and through people by providingthem with a vision of the future which is meaningful to them and motivating.(eadership is both strategic and pragmatic &realistic and encourages all members ofa team to deliver their best as an individual and as a team member.

!n contrast to individual leadership, some organizations have adopted groupleadership. !n this situation, more than one person provides direction to the group asa whole. Some organizations have taken this approach in hopes of increasingcreativity, reducing costs, or downsizing. thers may see the traditional leadership ofa  boss  as costing too much in team performance. !n some situations, the

maintenance of the boss becomes too epensive ) either by draining the resources ofthe group as a whole, or by impeding the creativity within the team, evenunintentionally.

2oles

A role  is a set of connected behaviors, rights and obligations as conceptualized byactors in a social situation. !t is mostly defined as an epected behavior in a givenindividual social status and social position. A set of epectations govern the behavior ofpersons holding a particular role in groupF a set of norms that defines how persons in aparticular position should behave.

 %ccording to S.P. Robbins& 'Role is a set of e!pected behavior patterns attributedto someone occupying a given position in a social unit.( 

Role Identit):  !t is the certain behaviors and attitudes of the individual which areconsistent with a role. !ndividuals have the ability to shift or change their roles rapidlywhen the situation or environment changes. -or /ample, employee changes his or herrole rapidly after the promotion.

Role Perception: #ole perception is the view of the individuals how they need to actwhile playing roles in a given situation. <e perceive to act in different situations by thefriend, society, teachers, videos or other source. An employee perceives managerialroles observing the activities of seniors.

Role Expectation:  !t is the epectation from others how should you act in a givensituation. "sychological contract is an eample in which management and employees dounwritten contract what management epects and vice versa.

Role con*usion  is a situation where an individual has trouble determining which roleheshe should play. -or eample, one could be a college student who would attend aconvention of a particular recreational interest and find his or her teacher there. ?onflictbetween behaving as a student and as an enthusiast who shares the same interestemerges, leading to confusion.

Role con*lict  characterises a situation where fulfilling a certain role has a conflict withfulfilling another role. -or eample, you found your teacher made a mistake and shouldyou report thatL !f you did, you might disgrace him and if you didn't, you might not fulfil

1

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your role as student. <hile role conflict takes place across different role sets, role strainhappens within the same role set.

.very member of a group plays a certain role within that group $ome roles relate to the tas8 aspect of

the group, while others promote social interaction ere are the exaples of soe roles  that group

members play

 Tas(Oriented 2oles  #oles which relate to the completion of the group's task

• !nitiator)contributor 6enerates new ideas.• !nformation)seeker Asks for information about the

task.• pinion)seeker Asks for the input from the group

about its values.• !nformation)giver ffers facts or generalization to the

group.• pinion)giver States his or her beliefs about a group

issue.

• /laborator /plains ideas within the group, offerseamples to clarify ideas.

• ?oordinator Shows the relationships between ideas.• rienter Shifts the direction of the group's discussion.• /valuator)critic +easures group's actions against some

ob7ective standard.• /nergizer Stimulates the group to a higher level of

activity.• "rocedural)technician "erforms logistical functions for

the group.

• #ecorder eeps a record of group actions.

Social 2oles 6roups also have members who play certain social roles

• /ncourager "raises the ideas of others.• *armonizer +ediates differences between group

members.• ?ompromiser +oves group to another position that is

favored by all group members.• 6atekeeperepediter eeps communication channels

open.• Standard Setter Suggests standards or criteria for the

group to achieve.• 6roup observer eeps records of group activities and

uses this information to offer feedback to the group.

• -ollower 6oes along with the group and accepts thegroup's ideas.

Individualistic 2oles  These roles place the group member above the group and aredestructive to the group.

• Aggressor Attacks other group members, deflates thestatus of others, and other aggressive behavior.

• %locker #esists movement by the group.• #ecognition seeker ?alls attention to himself or

herself.• Self)confessor Seeks to disclose non)group related

feelings or opinions.• >ominator Asserts control over the group by

manipulating the other group members.

2

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• *elp seeker Tries to gain the sympathy of the group.

• Special interest pleader Uses stereotypes to assert hisor her own pre7udices.

Status

Status is a position or rank given to groups or group members by the organization. !tcan be the 7ob title, benefits and services, facilities etc. which differentiates thestatus from one to another. Status plays a dominant role in organizational behaviorsince it affects motivation, leadership, 7ob satisfaction and other behavioralconse1uences.

!n organization, people who control the group using their power tend to be in highstatus. The leader or manager of a group will be in high status than the members oremployees. %esides this, status also depends upon to the contribution to the group.-or instance, in a playgroup, the individual who has etra performance can havehigher status event though they are in same group.

;or5s

9orms are the standards &degrees of acceptability and unacceptability for conductthat helps individuals 7udge what is right or wrong and good or bad in a given socialsetting. They

 :  Are culturally derived and vary from one culture to another. :  Are usually unwritten, yet have a strong influence on individual behavior.

 :  +ay go above and beyond formal rules and written policies.

 %ccording to S.P. Robbins& '$orms are acceptable standards of behavior within agroup that are shared by the group’s members(.

2easons that groups enforce nor5s

;  To facilitate the survival of the group.;  To simplify or clarify role epectations.

;  To help group members avoid embarrassing situations.

;  To epress key group values and enhance the groupKs uni1ue identity.

9orms are effective guides for social behavior. 9orms must be activated before theycan guide. !ndividuals are epected to fulfill their role in society. Society regulatesthe behavior of different roles on a reward or punishment system. !ndividualsprimarily attempt to fulfill their roles for their own succession.

#ewarded) !ndividuals are rewarded for living up to their roles &i.e. students gettingan $A$ on their eam

"unished) !ndividuals are punished for not completing the duties of their role &i.e. a

salesman is fired for not selling enough product

Size

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Size does matter at least as far as groups are concerned. !n very small groups, theaddition or loss of one member can of course make a radical difference to the groupprocess. (arger groups need to be managed in 1uite different ways from smallerones. So let's tackle this systematically $-ormal$ features refer to necessaryproperties of the group, and are functions of the number of people and $"rocess$features are more empirically determined. Those formality and process are moreimportant as the size gets greater.

Smaller groups are faster to complete the tasks and making decisions than the largerone. %ut if the purpose of group is problem solving and fact finding, they can getbetter result because of more inputs. 6enerally, seven members of group are foundto be effective and here should be odd number in group size.

Social loafing

 The term social loafing is one important finding about the group size. Socialloafing is a tendency of the individuals to make less effort in group thanindividually. So it claims that the sum total productivity of the individuals always

less than that of group. !t indicates that increase in group size inversely related toindividual performance.

Co5position 

 The group members should have the variety of abilities. The dissimilar abilities,inclusive and participative group can be effective than the similar and homogenous.

 There should be different personalities, gender, race, age, academic background andlevel, skills, eperience. %ut there can be different compositional factors accordingto the group ob7ectives and types. !f there is high level of diversity, it creates conflictand competition in group leading to high productivity if the leader is very able to

manage conflict.

Cohesiveness

?ohesiveness is the degree of being attractive, motivated and committed in thegroup. !t is the level of mutual understanding, cooperation and belongingness withinthe members.

 The group which are cohesive can spent hours of time in interaction, they can stay

together and collectively defend the eternal threats. !t is the factor that keeps itsmembers within the group for long duration.

2elationship bet"een /roup Cohesiveness? -erfor5ance ;or5s and-roductivit#

   -  e  r   f  o  r  5

  a  n  c  e   ;  o  r  5  s Cohesiveness

*igh

*igh (ow

*igh"roductivity

+oderateproductivity

(ow (ow"roductivity

+oderate to(ow

"roductivity

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Suggestions for i5proving group cohesiveness+

2. +ake the group smaller=. /ncourage agreement with group goals

B. !ncrease the time members spent together

4. !ncrease the status of the group and the perceived difficulty of attaining membershipin the group

I. Stimulate competition with other groups

8. 6ive rewards to the group rather than to individual members

;. "hysically isolate the group&Source S.". #obbins

/roup .ecision ,aing

!n most organizations, decisions are made by groups, teams or committees. !t is theprocess of making collective decision.

 The common characters of group decision making are• >ecision making with a common decision making problem

• Shared interest in a collective decision

• All members have an opportunity to influence the decision

0dvantages and .isadvantages of /roup .ecision ,aing

A ma7or advantage of group decision making is that more information is broughtto bear identifying and evaluating alternatives. The more diverse the group'scomposition, the more likely it is that creative ideas will be forthcoming

0dvantages .isadvantages2.

+ore information and knowledgeare available

2 The process takes longer, so it iscostlier

= +ore alternatives are likely to begenerated

= ?ompromise decision resulting fromindecisiveness may emerge

B +ore acceptance of the finaldecisions is likely B ne person may dominate the group

4 /nhanced communication ofdecision making may result

4 6roup think may occur

I %etter decision generally emerge

Issues relating to group decision 5aing

The t"o popular issues about group decision 5aing are as follo"s+

a /roupthin+ 6roupthink is the situations in which group pressures for

consensus and conformity discourage the group from critically appraising orrealistic appraisal of alternative course of actions. !t weakens the efficiency of theindividual because of pressure from group members and may go beyond thereality and moral 7udgment.

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S#5pto5s of the group thin+

2. 6roup members rationalize any resistance to the assumptions they havemade. 9o matter how strongly the evidence may contradict their basicassumptions, members behave so as to reinforce those assumptionscontinually.

=. +embers apply direct pressures on those who momentarily epress doubtsabout Vany of the group's shared views or who 1uestion the validity ofarguments supporting the alternative favored by the ma7ority.

B. +embers who have doubts or hold differing points of view seek to avoiddeviating from what appears to be group consensus by keeping silent aboutmisgiving and even minimizing to them shelves the importance of theirdoubts.

4. There appears to be an illusion of unanimity &harmony or agreement. !fsomeone doesn't speak, itKs assumed that he or she is in full accord. !n otherwords, abstention &non)participation becomes viewed as a Ges vote.

Source: S.P. Robbins and Seema Sanghi& p. p. )*+

b /roupshift+ !t is change in decision risk between the group's decision and theindividual decision that members within the group would makeF can be withtowards conservatism or greater risk ) S.". #obbins. 6roup shift, also known as aspecial case of group think, is a change in decision risk between the groupsdecision and the individual decision that members within the group would make,can be either toward conservatism &traditional or popular or greater risk decisionin comparison to the decision by the individual alone. !n group decision, the initialpositions of individual members of a group are eaggerated toward a moreetreme position

!hat Causes /roupshift>

• >iscussion creates familiarization among group members

• 6roup discussion motivates individuals to take risks

• 6roup diffuses responsibility

I5proving /roup .ecision ,aing

 To make the group decision effective, there are some techni1ues to be followed whichare eplained below.

1* Brainstor5ing+ A decision making group in which members openly discuss,argue about and agree on the best alternative. !t is an idea generationprocess that specifically encourages any and all alternatives, whilewithholding any criticism of those alternatives and lastly, the membersagree on the best one, proposed by any member of the group.

!t is a group process for generating possible solutions to a problem developed by

0le@ F Osborne to increase individual capabilities.

0dvantages• A large number of ideas can be generated in a short period of time

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• Simple )no special epertise or knowledge re1uired from the facilitator

.isadvantages• ?redit for another personKs ideas may impede participation

• <orks best when participants represent a wide range of disciplines

3* .elphi /roup A form of group decision making in which a group is used toachieve a consensus of epert opinion without face)to)face meeting ofeperts. !t is a group process which helps aggregates viewpoints in settings wheresub7ective information has to be relied on the production of numerical estimatesand forecasts on selected statements and depends on written feedback &instead ofbringing people together

Characteristics• "anel of eperts

• -acilitator who leads the process &WmanagerK

• Anonymous participation

• +akes it easier to change opinion• !terative processing of the responses in several rounds

• !nteraction through 1uestionnaires

• Same arguments are not repeated

• /stimates and associated arguments are generated by and presented to thepanel

• Statistical interpretation of the forecasts

4* ;o5inal /roup+  !t is an organized group meeting for problemidentification, problem solving, and program planning etc. which is used toeliminate the problems encountered in small group meetings. !ndividual

members meet face)to)face and present the idea in a meeting. After thecomplete discussion and evaluation, they rank the ideas and highest rankwill be the final decision. !t is a structured techni1ue used to generatecreative and innovative alternatives or ideas.

0dvantages• %est for small group meetings

• -act finding and !dea generation

• Search of problem or solution.isadvantages

• 9ot suitable for routine business and %argaining

• "roblems with predetermined outcomes

7 Co5puter assisted decision 5aing

-or the decision making a large number software packages available for the decisionmakers for their decision analysis. Those software packages can be use for group

Individual Activity

Individuals silentlyrank or vote on eachsolution presented.

Team membersreceive descriptionof problem

Individual Activity

Individuals silentlywrite downpossible solutions.

Individuals take turnsdescribing solutionsto each other;Group then discussesand evaluates ideas

Group Activity

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decision making, voting or other analysis and prediction of values. <eb basedapplications can also be used of offline software like o /cel, Access may also be usedfor decisional purpose.

0dvantages• 6raphical support for problem structuring, value and probability elicitation

• -acilitate changes to models relatively easily

• Sensitivity analyses can be easily conducted

• Analysis of comple value and probability structures

• "ossibility to carry out analysis in distributed mode

Unit 8

=eadershipConcept and ;ature

(eader is a person who can influence the behaviour of others without having to rely onforce, who is a person accepted by others as a leader.

$(eadership is the ability to influence a group toward the achievement of goals.$ )#obbins

$(eadership is a process, the use of noncoercieve influence to shape the group'sor organization' goals, motivate behaviour toward the achievement of thosegoals, and help define group or organization cultureF as a property, the set ofcharacteristics attributed to individuals who are perceived to be leaders.$ ) 6riffin

So that the leadership can be defined as a process that takes place in groups in whichone member influences and controls the behaviour of the other members toward somecommon goal.$

.istinction bet"een ,anage5ent and =eadership

0ctivit# ,anage5ent =eadership?reating an agenda "lanning Q %udgeting

/stablishing detailedsteps, allocatingresources

/stablishing direction >eveloping vision

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>eveloping a humannetwork for achievingthe agenda

rganizing and staffing Structure, Staffing,

>elegating authority,monitor and implement

Aligning people ?ommunication !nfluencing ?reating teams

/ecuting plans ?ontrolling and "roblemSolving) +onitoring results vs

plan,) Solving problem

+otivating and !nspiring /nergizing people to overcome

ma7or political, bureaucratic and

resource barriers

Functions of =eadership

a Establishing direction +  6iving the proper direction to the followers wheredetermining the destination

b 0ligning people+ eeping the followers within the control of leader

c ,otivating and inspiring+ +otivate them and try to be inspired by the leader

d Change 5anage5ent+ +anage any type of organizational change convincingthe followers, creating trust to the management

e Coordination+ ?oordinate where necessary

f .eter5ining goal+ >etermine both long and short)term goals and ob7ectives tobe achieved

g 2epresenting organization+ +anager represents on behalf of the organization.

h ,aing uic and rational decision+ (eaders should be able to makeimmediate and rational decisions

i Environ5ental adaptation+ +ake the change according to the environmentalchange to adopt to it

 7 Co55unication+ /ffective communication to its stakeholders

Traits of a /ood =eader &Those popular traits illustrated by different writers

• Honest# ( >isplay sincerity, integrity, and candor in all your actions. >eceptive

behavior will not inspire trust.

• Co5petent ( Gour actions should be based on reason and moral principles. >o

not make decisions based on childlike emotional desires or feelings.

• For"ard(looing Set goals and have a vision of the future. The vision must be

owned throughout the organization. /ffective leaders envision what they want

and how to get it. They habitually pick priorities stemming from their basic

values.

• Inspiring ( >isplay confidence in all that you do. %y showing endurance in

mental, physical, and spiritual stamina, you will inspire others to reach for new

heights. Take charge when necessary.

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• Intelligent ( #ead, study, and seek challenging assignments.

• Fair(5inded ( Show fair treatment to all people. "re7udice is the enemy of

 7ustice. >isplay empathy by being sensitive to the feelings, values, interests,

and well)being of others.

• Broad(5inded ( Seek out diversity.

• Courageous ( *ave the perseverance to accomplish a goal, regardless of the

seemingly insurmountable obstacles. >isplay a confident calmness when under

stress.

• Straightfor"ard ( Use sound 7udgment to make good decisions at the right

time.

• I5aginative ( +ake timely and appropriate changes in your thinking, plans,

and methods. Show creativity by thinking of new and better goals, ideas, and

solutions to problems. %e innovative.

=eadership Theories

1* Trait Theor# of =eadership

 Trait theory assumes that some basic trait &character or set of traits eisted thatdifferentiated leaders from non leaders. Those traits include intelligence,assertiveness, good looking, good vocabulary, attractiveness, self)confidence,ability, commitment etc. !t emphasizes on 'leaders by born'

!t assumes that people inherit certain 1ualities and traits that make them better

suited to leadership. Trait theories often identify particular personality orbehavioral characteristics shared by leaders. %ut if particular traits are keyfeatures of leadership, how do we eplain people who possess those 1ualities butare not leadersL This 1uestion is one of the difficulties in using trait theories toeplain leadership.

>ecenzo and #obbins have mentioned si traits which differentiated leaders fromnon)leaders.

a .rive+ *igh effort, high energy and persistent to achieve goalb .esire to lead+ Strong desire to influence and lead othersc Honest# +  Trust by followers, honest in their words

d Self(confidence+ can do approach for doing right thingse Intelligence+ !ntelligence skill to gather, interpret, analyze the information

for appropriate decision and to create vision, solving problems.f  Aob relevant no"ledge+ The leader should eceed the 7ob knowledge in

technical as well as non)technical matters

a* L/reat ,anM Theor# of =eadership

/arly research on leadership was based on the study of people who were alreadygreat leaders. These people were often from the upper classes, as few fromlower classes had the opportunity to lead. This contributed to the idea that

leadership had something to do with etraordinary things.

6reat +an theories assume that the capacity for leadership is inherent O thatgreat leaders are born not made. These theories often portray great leaders as

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heroic, mythic and intended to rise to leadership when needed. The term C6reat+anD was used because, at the time, leadership was thought of primarily as amale 1uality, especially in terms of military leadership. This was easy to verify,by pointing to people such as 0esus and %uddha.

!t concludes that leader is born and we can not make them since they need to actand behave highly differently than non)leadersF they are the very great man in

organization and very difficult to find leaders everywhere

3* Behavioural Theor# of =eadership $-eople can be trained to be leader*

pposing the views of Trait Theory, behavioural perspectives of leadership arguesthat leadership depends upon the individuals how they behave others. !t claimsthat leadership is highly behavioural which can be trainededucated to theindividuals. !t tries to identify what leaders should do rather than what leaders do. 

 The followings are the theories under %ehavioural "erspectives

i* ,anagerial /rid<=eadership /rid St#le!ndustrial psychologists %lake and +outon developed such styles consistingtwo dimensions i ?oncern for people human aspect and ii ?oncern forproduction task aspects. They developed J2 possible combinations forleading purpose. *ere is the five combinations as an eample.

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11 ( I5poverished st#le+ (ittle concern for production as well as people. They try to use of minimum effort to get wok done to be popular.

1) ( Countr# club st#le+ The leader focuses on people like, friendship atwork, motivation and no priority is given for production.

)1 ( Tas 5anager st#le+ The autocratic style of leading in which theconcern of managers will be on high production rather than people'sneeds and satisfaction.

)) ( Tea5 builder st#le+  The most effective leadership in whichmanager focuses on high production through employee participation,motivation and commitment.

&& ( ,iddle of roader st#le+ The very safe style of leadership in whichmanager tries to balance the concern for production as well as people,the individual is compromiser.

ii* ,ichigan Studies The researchers of University of +ichigan which was led by #ensis (ikert in

2345, concluded that there are two types of behaviours of the managers inthe organization.

a* Aob(centered leader behaviour The behaviour of leader who pay close attention to the 7ob and workprocedures involved with that 7ob.

b* E5plo#ee(centered leader behaviour The behaviour of leaders who develop cohesive &unified work group andensuring employees' satisfaction, freedom and provide necessaryassistance to their subordinates.

iii* Ohio State Studies

!n late 2345's, hio State University of USA conducted the series of researchesto seek the dimensions of leader behaviour. -inally they concluded the twobehaviours described by their employees

a* Initiating Structure+ !t is the leadership behaviours to define andstructure the role of leader to organize the work, maintaining workingrelationships and goal achievement. They focus on planning andcontrolling, standards and rules)regulations especially assigning the task

to particular members, maintaining definite standards of performance andemphasizing to meet the deadline. 

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1) ))

)111

I.I

?oncern for production   ?  o  n  c

  e  r  n

   f  o  r

  p  e  o  p

   l  e

(ow *igh

*igh

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b* Consideration+ n the other hand, the consideration behaviour focuseson 7ob relationships, mutual trust at work, respect for subordinate's ideasand always considers the feeling of followers. They show concern about thecomfort, well)being, status and satisfaction of followers.

 The conclusion of hio State Studies is *igh !nitiation Structure and *igh?onsideration &*igh)*igh Style generally results positive outcomes but

situational factors needed to be integrated to this theory.

4* Contingenc# Theor#

?ontingency theories of leadership focus on particular variables related to theenvironment that might determine which particular style of leadership is bestsuited for the situation. According to this theory, no leadership style is best in allsituations. Success depends upon a number of variables, including the leadershipstyle, 1ualities of the followers, and aspects of the situation.

Fiedlers ,odel of =eadership

!t is the first comprehensive contingency model of leadership developed by -red-iedler which proposes effective group performance depends on a proper matchbetween a leader's style of interacting with subordinates and the degree to whichthe situation gives control to the leader.

Identif#ing =eadership St#le

According him, we need to identify the leadership style of the individual whetherheshe focus on task or relationship. -or this purpose, he developed a leastpreferred co)worker &("? 1uestionnaire.

.efining the SituationAfter the identification of leadership style, we need to understand the situation orcontingency dimensions which can be

a =eader(5e5ber relations + confidence, trust, and respect to leaderb Tas Structure+ 0ob is structured or unstructuredc -osition -o"er+ "ower of leader to influence like hiring, firing, discipline,

promotion and salary increases

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,atching =eader and Situations-iedler developed the model as a finding of those two ("? and three differentsituational variables and presented it as follows

?ategory ! !! !!! !@ @ @! @!! @!!!

(eader)memberrelations

6ood 6ood

6ood 6ood

"oor "oor "oor "oor

 Task structure *igh *igh (ow (ow *igh *igh (ow (ow"osition power Stron

g<eak

Strong

<eak

Strong

<eak

Strong

<eak

Since his assumption is the fi of leadership style in individual, we have only twoways to improve the effectiveness in leadershipF those are i change the leaderand ii change the situation &relation, task structure and position power

Unit %

Co55unicationConcept

3

6ood

"oor

   -  e  r   f  o  r  5  a  n  c

  e

-avorable Unfavorable

 Taskriented#elationship

riented

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Co55unication  is a process that allows people to echange information by one ofseveral methods. There are auditory means, such as speaking or singing, and nonverbal,physical means, such as body language, sign language, paralanguage, touch or eyecontact.

$?ommunication is the process of transmitting information from one person toanother.$$/ffective communication is the process of sending message in such a away thatthe message received is as close in meaning as possible to the messageintended.$ ) 6riffin

Co55unication Structure

a Sender and receiverb Two way processc -lowd ?hannele /ncoding and decoding

f -eedbackg 9oise

The Co55unication -rocess

T#pes of co55unication

1 For5al and Infor5al Co55unication

For5al co55unication?ommunication through organization structure in which the message is beingcommunicated through formal authorities. !t can be vertical, horizontal, two)way,diagonal, upward, downward etc.

Infor5al co55unication!nformal communication may or may not follow official reporting relationships. !tcan be the followings

a* /rapevineAn informal communication network suitable for large scale organization.

i. /ossip chain + ne person tells many

ii. Cluster chain + ne person passes information to the selected fewindividuals

b* ,anage5ent b# "andering around

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!essa e Sender Encodin Channels Decoding

"eedbac#

9oise

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Some managers keep in touch with what's going on by wandering around andtalking with people

3 Interpersonal and ;on(verbal co55unication

a* Interpersonal co55unication"rocess of transferring information between group members and amongeach others.

Oral co55unication) Speeches) -ormal one )on)one and group discussions) 6rapevine

!ritten co55unication) memos) (etters) -a

) /mailinstant messages) 9otices, 0ournals, %ulletin etcb* ;on(verbal co55unication

?ommunication without using words) -acial epressions) %ody movements, "hysical contact, body language) Tone) !mage) Settings

Barriers to Co55unication+othing is so si"ple that it cannot !e "isunderstood  ( Free5an Teague? Ar

Anything that prevents understanding of the message is a barrier tocommunication. +any physical and psychological barriers eist

o Culture? bacground and bias ( <e allow our past eperiences tochange the meaning of the message. ur culture, background, and biascan be good as they allow us use our past eperiences to understandsomething new, it is when they change the meaning of the messagethen they interfere with the communication process.

o ;oise ( /1uipment or environmental noise impede clear

communication. The sender and the receiver must both be able toconcentrate on the messages being sent to each other.

o Ourselves ( -ocusing on ourselves, rather than the other person canlead to confusion and conflict. The $+e 6eneration$ is out when it comesto effective communication. Some of the factors that cause this aredefensiveness &we feel someone is attacking us, superiority &we feel weknow more that the other, and ego &we feel we are the center of theactivity.

o -erception ( !f we feel the person is talking too fast, not fluently, doesnot articulate clearly, etc., we may dismiss the person. Also our

preconceived attitudes affect our ability to listen. <e listen uncriticallyto persons of high status and dismiss those of low status.o ,essage ( >istractions happen when we focus on the facts rather than

the idea. ur educational institutions reinforce this with tests and

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1uestions. Semantic distractions occur when a word is used differentlythan you prefer. -or eample, the word chairman instead of chairpersonmay cause you to focus on the word and not the message.

o Environ5ental ( %right lights, an attractive person, unusual sights, orany other stimulus provides a potential distraction.

o S5othering ( <e take it for granted that the impulse to send useful

information is automatic. 9ot trueR Too often we believe that certaininformation has no value to others or they are already aware of thefacts.

o Stress ( "eople do not see things the same way when under stress.<hat we see and believe at a given moment is influenced by ourpsychological frames of references ) our beliefs, values, knowledge,eperiences, and goals.

 These barriers can be thought of as filters, that is, the message leaves thesender, goes through the above filters, and is then heard by the receiver. Thesefilters muffle the message. And the way to overcome filters is through active

listening and feedback.

The follo"ing are the i5portant points+

2 -iltering &manipulation of information= Selective perception of receiversB !nformation overload4 (anguageI #eluctance to communication8 /motions; ?ultural barriers

J "olitically correct communication3 (ess (istening power

I5proving co55unication effectiveness $Overco5ingbarriers*

Individual sills

) >evelop good listening skills) /ncourage two)way communication) %e aware of language and meaning

) +aintain credibility) %e sensitive to receiver's perspective) %e sensible to sender's perspective

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Organizational sills

) -ollow up) #egulate information flows) Understand the richness of media

Unit )

Conflict ,anage5ent

Concept

?onflict is a situation of disagreement to others view, idea, principle or other matter. !t isthe opposition in the decision or approach given by other employees. !t may bemisunderstanding or miscommunication or real but inevitable element of interpersonalrelationships in organizations.

$?onflict is a disagreement between two or more individual, group ororganizations.$ ) 6riffin

$?onflict is a process that begins when one party perceives that another party hasnegatively affected, or is about to negatively affect, something that the first partycares about.$ ) S.". #obbins

?onflict may be 7ob)related or personal, simple or strong, short)lived or for months oreven years. Traditionally, it viewed as a problem, but in modern days, it is viewed thatsome conflicts are beneficial to the organizations. All the conflicts are not harmful.

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Thoughts of Conflict

Traditional vie"+ The belief that all conflict is harmful and must be avoidedHu5an relations vie"+ The belief that conflict is a natural and inevitable outcome inany group.Interactionist vie"+ The belief that conflict is not only a positive force in a group but it

is absolutely necessary for a group to perform effectively.

Conflict and organizational perfor5ance

!f there is absolutely no conflict in the group or organization, its members may becomelazy with no competition in organization. As a result, group or organizationalperformance and innovation may subse1uently begin to suffer. A moderate level of

conflict among group or organizational members, on the other hand, can sparkmotivation, creativity, innovation and initiative and raise performance. Too muchconflict though can produce undesirable results such as hostility and lack of cooperation,which lower performance.

The Conflict -rocess

 There are the five stages of conflict which is eplained in the following figure.

Stage I+ -otential Opposition or Inco5patibilit#+

 This is an opportunity for creating conflict. !n this stage, the individual seeks for sourcesof conflict that can be of communication, structure or personal variables.

Co55unication+ >istorted communication, misunderstanding, noise in communicationchannels, inade1uate information are the source of conflict related to communication.

Structure+ Size of the organization, degree of specialization, role and responsibilities,diverse goals, style of leadership, reward system, interdependence creates conflict.

-ersonal Kariables+ The personality of individual may dislike by others and it creates

differences. "re7udice, disagreements, authoritarian arises conflict.

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Conflict *igh(ow

(ow

*igh

ptimal level of conflict

   -  e  r   f  o  r  5  a  n  c  e

Stage I Stage II Stage III Stage IK Stage K

-otentialopposition orinco5patibilit#

Cognition andpersonalization

Intentions Behaviour Outco5es

Antecedentconditions

?ommunicationStructure"ersonal

variables

?onflict)handlingintentions?ompeting?ollaborating?ompromisingAvoidingAccommodating

ver conflict"arty's

behaviourther's

reaction

"erceived?onflict

-elt?onflict

!ncreasedgroupperformanc

e

>ecreasedgroup

performance

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Stage II+ Cognition and -ersonalization

-rom the stage !, if the individual negatively affected, it may perceived or felt as conflictand it is personalized. This is the very important stage in which the individualsunderstand what the conflict is and emotions play a ma7or role for reducing or increasingconflict.

-erceived Conflict+ Awareness by one or more parties of the eistence of conditions

that create opportunities for conflict to arise

Felt Conflict+ /motional involvement in a conflict creating aniety, tenseness,frustration or hostility

Stage III+ Intentions

!t is the decision to act in the given situation. "erson may act in different ways like) ?ompeting A desire to satisfy one's interests, ignoring the impact on the other

party to the conflict) ?ollaborating !ntention of the parties to solve the problem by clarifying

differences, cooperation and mutually beneficial outcome for all conflictingparties.

) Avoiding Avoiding the conflicting partiespeople , withdrawing or ignoring) Accommodating Sacrificing your goal so that others can achieve their goal &to

maintain relationship) ?ompromising /ach party in a conflict give up something and solve problem.

Stage IK+ Behaviour

!t is the visibility of conflict in which conflicting parties show the reactions and actions.!n this stage, the conflicting parties show certain behaviour and other react for this.

Stage K+ Outco5e

As a conse1uence of actions and reaction as behaviour of conflict, it mat increase ordecrease the organizational performance.

Functional Outco5es+  ?onflict can be highly constructible t when it improves the1uality of decisions, stimulates creativity and innovation, encourages interest andcuriosity among group member, provides the medium through which problems can beraised and releasing tension and foster the environment for self)evaluation and change.!t focuses on ma7ority decision and avoids the rubber)stamp of decision or group think.

.#sfunctional Outco5es+ !t is the destructive conse1uence of conflict that can bedestruction of group, reduction in group cohesiveness, fighting between groupmembers, halt of functioning threaten for group survival etc.

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Sources of Conflict

1* Interpersonal conflict

6reat variety in goals, perception, attitudes "ersonality clash, distrust each other's motives, dislike one another 6ender problem

3* Inter group conflict ?onflict between two or more organizational groups that may arise from

organizational causes than interpersonal causes >ifferent department often have different goals, different targets

4* Conflict bet"een organization and environ5ent ?onflict between the organizations because of competition ?onflict between organization and its particular stakeholders

Interdepart5ental Conflict

ne of the ma7or causes of organizational conflict is structural, also known asinterdepartmental. rganizations are designed around product lines, regions ortechnical specialties. These activities are assigned to departments that often havemutually eclusive structured interests and goals among the departmental employeesand they interact within a framework of scarce resources and task dependency. <henresources are relatively fied and when one department's gain is at the epense ofanother, conflict should be epected. -or eample, employee selection is the gain *#>epartment but the cost involved in the selection is epense for finance department.

!f two sub)units in an organizational system have differentiated goals and arefunctionally interdependent, conditions eist for conflict. !nterdependence produces theneed for team work, mutual cooperation and understanding but it also creates conflict.

,aor causes of depart5ental conflict+

o >ifferent attitudes between line and staff unitso rganizational size &directly related to level of conflict and standardization

&inversely related to conflicto physical or communicational barriers between departmentso une1ual access to authority, rewards or organizational resources ando ambiguity or uncertainty in assigning tasks or rewards to different departments are

0pproaches to Conflict ,anage5ent

?onflict management is the techni1ue of resolving or stimulating conflict so that desiredlevel of conflict can be achieved.

Interpersonal Conflict ,anage5ent 0pproach+

1 Co5peting!t is a desire to satisfy one's interests, ignoring the impact on the other party tothe conflict. This strategy results from a high concern for self)group's owninterests with less concern for others. The outcome is $winlose.$ This strategy

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includes most attempts at bargaining. !t is generally used when basic rights are atstake or to set a precedent. *owever, it can cause the conflict to escalate andlosers may try to retaliate.

3 Collaborating!t is the intention of the parties to solve the problem by clarifying differences,cooperation and mutually beneficial outcome for all conflicting parties. This

results from a high concern for your group's own interests, matched with a highconcern for the interests of other partners. The outcome is $winwin.$ Thisstrategy is generally used when concerns for others are important. !t is alsogenerally the best strategy when society's interest is at stake. This approachhelps build commitment and reduce bad feelings. The drawbacks are that it takestime and energy. !n addition, some partners may take advantage of the others'trust and openness. 6enerally regarded as the best approach for managingconflict, the ob7ective of collaboration is to reach consensus.

4 0voiding!t is avoiding the conflicting partiespeople, withdrawing or ignoring. These resultsfrom a low concern for self)group's own interests coupled with a low concern forthe interests of others. The outcome is $loselose.$ This strategy is generally usedwhen other issues are more pressing. !t is also used when confrontation has ahigh potential for damage or more information is needed. The drawbacks are thatimportant decisions may be made by default.

7 0cco55odatingSacrificing your goal so that others can achieve their goal &to maintainrelationship. his results from a low concern for your group's own interestscombined with a high concern for the interests of other partners. The outcome is$losewin.$ This strategy is generally used when the issue is more important toothers than to you.

& Co5pro5ising/ach party in a conflict give up something and solve problem. his strategy resultsfrom a high concern for your group's own interests along with a moderate concernfor the interests of other partners. The outcome is $win somelose some.$ Thisstrategy is generally used to achieve temporary solutions, to avoid destructivepower struggles or when time pressures eist.

Structural Conflict ,anage5ent 0pproach

0pproach .escription !hen to use

Pro!le" ,Solving

 The problem)solving approach involvessupporting the individuals involved in theconflict to help them consider all the optionsand find the best solution. Sometimesreferred to as the ?onfrontation approach.

 This approach should be employed insituations where there is not a clearconcise agreed to solution, and there istime to allow the parties to collaborateand innovate. -or this approach to work,it is also important that the conflictingparties both bring ideas and creativity tothe problem.

Co"prise ?omprise involves working out a middleground that satisfies all parties to some

degree. The compromising approachre1uires each of the conflicting members toaccede in order to achieve a resolution.

 This approach should be employed insituations when both parties have a

valid but different approach to resolvethe problem or complete the task hand,or when there is not a best practice tobe followed. %y assuring everyone's

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0pproach .escription !hen to use

perspective is considered andrepresented, this approach will allow awin)win situation to occur.

S"oothing 

Smoothing de)emphasizes the differencesbetween points of view and focuses oncommonalities. The smoothing approachinvolves minimizing the importance of theproblem at the heart of the conflict in aneffort to make the conflict seem pointless.

 This approach is particularly useful forminor or unimportant issues, or issuesthat are not critical to pro7ect success.

Forcing  The forcing approach re1uires others to yieldto the point of view of one side or another. !tis also called the win)lose approach and canincrease conflict. The forcing approachinvolves you, as pro7ect manager, using your

influence and powers within the pro7ectteam to simply resolve the issue yourself,making a decision about the way to moveforward.

 This approach should be used whentime is a critical factor. !t is imperativethat the pro7ect manager provides thedesired resolution to the conflict. Thisapproach doesn't solve the conflict, but

it does ensure that things get done.

-ithdra.al 

<ithdrawal involves avoiding or retreatingfrom the conflict or potential conflict andallowing the involved parties to work out theconflict on their own. The withdrawingapproach involves giving in to the conflict bysimply refusing to acknowledge that there isa problem and declining to discuss it.

%ecause this approach involves avoidingthe problem, it should not be used veryoften. !t can be a temporary solution todeal with heated and emotionalconflicts, or it can be used if the issueisn't relevant to the work of the pro7ectteam.

Tips to ,anage Structural Conflict

2. #egularly review 7ob descriptions. 6et your employee's input to them. <rite downand date 7ob descriptions. /nsurea. 0ob roles don't conflict.b. 9o tasks $fall in a crack$.

=. !ntentionally build relationships with all subordinates.a. +eet at least once a month alone with them in office.b. Ask about accomplishments, challenges and issues.

B. 6et regular, written status reports and includea. Accomplishments.

b. ?urrents issues and needs from management.c. "lans for the upcoming period.

4. ?onduct basic training abouta. !nterpersonal communications.b. ?onflict management.c. >elegation.

I. >evelop procedures for routine tasks and include the employees' input.a. *ave employees write procedures when possible and appropriate.b. 6et employees' review of the procedures.c. >istribute the procedures.d. Train employees about the procedures.

8. #egularly hold management meetings, for eample, every month, to communicatenew initiatives and status of current programs.;. ?onsider an anonymous suggestion bo in which employees can provide

suggestions.

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Managing !onflict #$ide for %atershed Partnerships

Understanding conflict. 

What is conflictConflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs, values orneeds. It can also originate from past rivalries and personality differences. Other causes of conflict includetrying to negotiate before the timing is right or before needed information is available.

The ingredients of conflict.

Needs - Needs are things that are essential to our well-being. Conflicts arise when we ignore others' needs,our own needs or the group's needs. Be careful not to confuse needs with desires things we would li!e, butare not essential".

Perceptions - #eople interpret reality differently. $hey perceive differences in the severity, causes and

conse%uences of problems. &isperceptions or differing perceptions may come from self-perceptions, others'perceptions, differing perceptions of situations and perceptions of threat.

Power  - (ow people define and use power is an important influence on the number and types of conflicts thatoccur. $his also influences how conflict is managed. Conflicts can arise when people try to ma!e otherschange their actions or to gain an unfair advantage.

Values - )alues are beliefs or principles we consider to be very important. *erious conflicts arise when peoplehold incompatible values or when values are not clear. Conflicts also arise when one party refuses to acceptthe fact that the other party holds something as a value rather than a preference.

Feelings and emotions - &any people let their feelings and emotions become a ma+or influence over how

they deal with conflict. Conflicts can also occur because people ignore their own or others' feelings andemotions. Other conflicts occur when feelings and emotions differ over a particular issue.

Conflict is not always negative. In fact, it can be healthy when effectively managed. (ealthy conflict can leadto...

rowth and innovation

New ways of thin!ing

 dditional management options

If the conflict is understood, it can be effectively managed by reaching a consensus that meets both theindividual's and society's needs. $his results in mutual benefits and strengthens the relationship. $he goal is forall to win by having at least some of their needs met.

!ow public and private conflicts differ.&ost of us have e/perience with conflict management and negotiation in private disputes with a salesman,among family members or with your employer".

#ublic conflicts, li!e those that can occur during watershed management efforts and other environmentalissues often are rooted in trying to balance environmental protection and economic growth and +obs. 0eep inmind, however, that effective watershed management can result in both economic and environmental benefits.*ome complicating factors include

Distribution of costs and benefits. $hose who benefit may not be the same as those who pay the costs.

Perceptions of problems. #eople tend to blame others for causing the problem.

Speed of clean-up or other actions. *ome will want changes to ta!e place more %uic!ly than others.

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"anaging #onflict

$here are five steps to managing conflict. $hese steps are

 naly1e the conflict

2etermine management strategy

#re-negotiation

Negotiation

#ost-negotiation

$tep %& Analy'e the conflict.$he first step in managing conflict is to analy1e the nature and type of conflict. $o do this, you'll find it helpful toas! %uestions.

 nswers may come from your own e/perience, your partners or local media coverage. 3ou may want toactually interview some of the groups involved. dditional information regarding analy1ing conflicts can befound in the uide to Information and 4esources.

$tep (& )etermine management strategy.Once you have a general understanding of the conflict, the groups involved will need to analy1e and select themost appropriate strategy. In some cases it may be necessary to have a neutral facilitator to help move thegroups toward consensus.

#onflict "anagement $trategies

Collaboration

Compromise

Competition

 ccommodation

 voidance

Collaboration - $his results from a high concern for your group's own interests, matched with a high concern

for the interests of other partners. $he outcome is win5win. $his strategy is generally used when concerns forothers are important. It is also generally the best strategy when society's interest is at sta!e. $his approachhelps build commitment and reduce bad feelings. $he drawbac!s are that it ta!es time and energy. In addition,some partners may ta!e advantage of the others' trust and openness. enerally regarded as the best approachfor managing conflict, the ob+ective of collaboration is to reach consensus. *ee the Building Local Partnerships guide for more information about consensus."

Compromise - $his strategy results from a high concern for your group's own interests along with a moderateconcern for the interests of other partners. $he outcome is win some5lose some. $his strategy is generallyused to achieve temporary solutions, to avoid destructive power struggles or when time pressures e/ist. Onedrawbac! is that partners can lose sight of important values and long-term ob+ectives. $his approach can alsodistract the partners from the merits of an issue and create a cynical climate.

Competition - $his strategy results from a high concern for your group's own interests with less concern forothers. $he outcome is win5lose. $his strategy includes most attempts at bargaining. It is generally used whenbasic rights are at sta!e or to set a precedent. (owever, it can cause the conflict to escalate and losers may tryto retaliate.

 Accommodation - $his results from a low concern for your group's own interests combined with a highconcern for the interests of other partners. $he outcome is lose5win. $his strategy is generally used when theissue is more important to others than to you. It is a goodwill gesture. It is also appropriate when yourecogni1e that you are wrong.$he drawbac!s are that your own ideas and concerns don't get attention. 3oumay also lose credibility and future influence.

 Avoidance -$his results from a low concern for your group's own interests coupled with a low concern for the

interests of others. $he outcome is lose5lose. $his strategy is generally used when the issue is trivial or otherissues are more pressing. It is also used when confrontation has a high potential for damage or moreinformation is needed. $he drawbac!s are that important decisions may be made by default.

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#onflict Analysis *+ercise&$hin! of a controversial issue to analy1e. On a separate sheet of paper, answer these %uestions.

roups involved 

6ho are the groups involved7

6ho do they represent7

(ow are they organi1ed7

6hat is their power base7

 re the groups capable of wor!ing together7

6hat are the historical relationships among the groups7

Substance

(ow did the conflict arise7

(ow are the main and secondary issues described7

Can negative issues be reframed positively7

 re the issues negotiable7

(ave positions been ta!en and, if so, are there common  interests7

6hat information is available and what other information is  needed7

6hat values or interests are challenged7

Possible strategies

6ould consensus serve all interests7

 re there e/ternal constraints or other influences that mustbe accommodated7

6hat are the past e/periences if any" of the groups wor!ing  together7

6hat is the timeline for a decision7

(ow will the public and the media be involved and informed7

6ill an outside negotiator be needed7

$tep ,& -renegotiation.$o set the stage for effective negotiation, the groundwor! must be laid. $he following should occur prior tonegotiation.

!nitiation - One partner raises the possibility of negotiation and begins the process. If no one is willing toapproach the others to encourage them to reach an agreement, a trusted outsider could be brought in as afacilitator.

 Assessment  - Conditions must be right for negotiation to be successful. 0ey players must be identified and

invited. 8ach side must be willing to collaborate with the others. 4easonable deadlines and sufficient resourcesto support the effort must e/ist. *po!espersons for each group must be identified and involved. #arties need todetermine which issues are negotiable and which are not.

round rules and agenda - $he groups must agree on ground rules for communication, negotiation anddecision ma!ing. $hey should agree on the ob+ectives of the negotiation process. n agenda of issues to becovered needs to be developed.

"rgani#ation - &eeting logistics must be established, including agreed upon times and places. #eople mustbe contacted and encouraged to attend. &inutes must be ta!en so that information can be distributed beforeand after meetings.

$oint fact-finding  - $he groups must agree on what information is relevant to the conflict. $his should includewhat is !nown and not !nown about social and technical issues. greement is also needed on methods forgenerating answers to %uestions.

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$tep /& 0egotiation.

!nterests - 6hen negotiating be sure to openly discuss interests, rather than stated positions. Interests includethe reasons, needs, concerns and motivations underlying positions. *atisfaction of interests should be thecommon goal.

"ptions - $o resolve conflicts, concentrate on inventing options for satisfying interests. 2o not +udge ideas or

favor any of the options suggested. 8ncourage creativity, not commitment.

%valuation - Only after the partners have finished listing options, should the options be discussed. 2eterminetogether which ideas are best for satisfying various interests.

&ritten agreement  - 2ocument areas of agreement and disagreement to ensure common understanding. $hishelps ensure that agreements can be remembered and communicated clearly.

Commitment  - 8very partner must be confident that the others will carry out their parts of the agreement.2iscuss and agree upon methods to ensure partners understand and honor their commitments.

When evaluating options...

9se ob+ective criteria for ran!ing ideas&a!e trade-offs among different issues

Combine different options to form acceptable agreements

$tep 1& -ostnegotiation.Once negotiation is complete, the group will need to implement the decisions made. *ome !ey steps include

'atification - $he partners must get support for the agreement from organi1ations that have a role to play inthe agreement. $hese organi1ations should be partners and should have been involved in the previous steps.8ach organi1ation will need to follow its own procedures to review and adopt the agreement.

!mplementation - 3ou and your partners' +obs are not done when you've reached agreement. Communication

and collaboration should continue as the agreement is carried out. $he partnership will need to have a plan tomonitor progress, document success, resolve problems, renegotiate terms and celebrate success.

0egotiation skills.Negotiation is an important s!ill for coming to an agreement when conflicts develop at home, at wor! and whendealing with issues li!e those related to watershed management. 6hen negotiating...

$eparate people from the problem.6hen negotiating, remember you're dealing with people who have their own uni%ue needs, emotions andperceptions.

*ome conflicts are based on differences in thin!ing and perceptions. $hese conflicts may e/ist mainly in

peoples' minds. It helps for each party to put themselves into the other's shoes so they can understand eachother's point of view.

Identify and openly discuss differences in perceptions, being careful not to place blame. In addition, recogni1eand understand the other side's emotions as well as your own.

Interest vs. -osition#eople often confuse interests with positions. n interest may be reducing litter in roadside ditches. $here aremany possible ways of addressing this interest. One might be the position of mandatory recycling. notherposition might be a deposit on bottles and cans. *till another could be organi1ing a clean-up day.

2ocus on interests3 not positions.

:ocusing on interests, rather than positions, ma!es it possible to come up with better agreements. 8ven whenpeople stand on opposite positions, they usually have a few shared interests.

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It ta!es time and effort to identify interests. roups may not even be clear about their own interests. It helps towrite down each group's interests as they are discovered. It helps to as! why others ta!e the positions or ma!ethe decisions they do. #artners will have multiple interests. Interests involving important human needs such assecurity, economic well-being, a sense of belonging, recognition and control over one's life" are difficult tonegotiate.

)evelop optional solutions.6hen developing optional solutions that meet the interests of all sides, try to meet as many of each side'sinterests as possible. *tart by inviting all sides to brainstorm ideas before reaching a decision". Brainstormingis discussed in the Leading & Communicating  guide.

$ome obstacles to developing innovative options are&

;udging and re+ecting prematurely

*earching for a single best answer 

#utting limits on scope or vision

Considering only your own interests

$o overcome these obstacles, view the situation through the eyes of different partners. :ocus on sharedinterests to ma!e the process smoother for all involved. <oo! for meaningful opportunities, not simple solutions.

)eveloping ob4ective criteria.6hen developing criteria for selecting or combining possible alternatives, revisit the conflicting interests. $hesecan't be ignored or wished away. Instead discuss them as you begin developing criteria for +udgingalternatives. lso !eep in mind principles such as fairness, efficiency and scientific merit.

*trive for criteria that are legitimate, practical and unbiased. 3ou may also find it helps to e/plore the criteriaused in ma!ing past decisions and discuss criteria with your partners or outside e/perts.

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Basics of !onflict Manageent

<ritten by &arter 'c=amara, '(!, -h, !uthenticity &onsulting, >>& &opyright 1997200/

!dapted from the ?ield @uide to >eadership and $upervision

!larifying !onf$sion &o$t !onflict

&onflict is when two or more values, perspectives and opinions are contradictory in nature and havenAt

 been aligned or agreed about yet, including5

1 <ithin yourself when youAre not living according to your valuesB

2 <hen your values and perspectives are threatenedB or 

iscomfort from fear of the un8nown or from lac8 of fulfillment

&onflict is inevitable and often good, for e"ample, good teams always go through a Cform, storm,

norm and performC period @etting the most out of diversity means oftencontradictory values,

 perspectives and opinions

&onflict is often needed It5

1 elps to raise and address problems

2 .nergi#es wor8 to be on the most appropriate issues

elps people Cbe realC, for e"ample, it motivates them to participate

elps people learn how to recogni#e and benefit from their differences

&onflict is not the same as discomfort +he conflict isnAt the problem it is when conflict is poorly

managed that is the problem

&onflict is a problem when it5

1 ampers productivity2 >owers morale

&auses more and continued conflicts

&auses inappropriate behaviors

Types of Managerial ctions that !a$se %or'place !onflicts

1 -oor communications

a .mployees e"perience continuing surprises, they arenAt informed of new

decisions, programs, etc

 b .mployees donAt understand reasons for decisions, they arenAt involved in

decisionma8ing

c !s a result, employees trust the Crumor millC more than management

2 +he alignment or the amount of resources is insufficient +here is5

a isagreement about Cwho does whatC

 b $tress from wor8ing with inadequate resources

C-ersonal chemistryC, including conflicting values or actions among managers and employees, for

e"ample5

a $trong personal natures donAt match

 b <e often donAt li8e in others what we donAt li8e in ourselves

>eadership problems, including inconsistent, missing, toostrong or uninformed leadership Dat any

level in the organi#ationE, evidenced by5

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a !voiding conflict, Cpassing the buc8C with little followthrough on decisions

 b .mployees see the same continued issues in the wor8place

c $upervisors donAt understand the obs of their subordinates

Key Managerial ctions ( )tr$ct$res to Minii*e !onflicts

1 )egularly review ob descriptions @et your employeeAs input to them <rite down and date obdescriptions .nsure5

a 4ob roles donAt conflict

 b =o tas8s Cfall in a crac8C

2 Intentionally build relationships with all subordinates

a 'eet at least once a month alone with them in office

 b !s8 about accomplishments, challenges and issues

@et regular, written status reports and include5

a !ccomplishments

 b &urrents issues and needs from management

c -lans for the upcoming period

&onduct basic training about5

a Interpersonal communications

 b &onflict management

c elegation

3 evelop procedures for routine tas8s and include the employeesA input

a ave employees write procedures when possible and appropriate

 b @et employeesA review of the proceduresc istribute the procedures

d +rain employees about the procedures

6 )egularly hold management meetings, for e"ample, every month, to communicate new initiatives

and status of current programs

7 &onsider an anonymous suggestion bo" in which employees can provide suggestions

%ays People +eal %ith !onflict

+here is no one best way to deal with conflict It depends on the current situation ere are the maor

ways that people use to deal with conflict

1 !void it -retend it is not there or ignore it

a %se it when it simply is not worth the effort to argue %sually this approach tends

to worsen the conflict over time

2 !ccommodate it @ive in to others, sometimes to the e"tent that you compromise yourself

a %se this approach very sparingly and infrequently, for e"ample, in situations

when you 8now that you will have another more useful approach in the very

near future %sually this approach tends to worsen the conflict over time, and

causes conflicts within yourself

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&ompeting <or8 to get your way, rather than clarifying and addressing the issue &ompetitors love

accommodators

a %se when you have a very strong conviction about your position

&ompromising 'utual giveandta8e

a %se when the goal is to get past the issue and move on

3 &ollaborating ?ocus on wor8ing together

a %se when the goal is to meet as many current needs as possible by using mutual

resources +his approach sometimes raises new mutual needs

 b %se when the goal is to cultivate ownership and commitment

To Manage a !onflict %ithin o$rself - "!ore Process"

ItAs often in the trying that we find solace, not in getting the best solution +he following steps will

help you in this regard

1 =ame the conflict, or identify the issue, including what you want that you arenAt getting &onsider5

a <riting your thoughts down to come to a conclusion

 b +al8 to someone, including as8ing them to help you summari#e the conflict in 3

sentences or less

2 @et perspective by discussing the issue with your friend or by putting it down in writing &onsider5

a ow important is this issueF

 b oes the issue seem worse because youAre tired, angry at something else, etcF

c <hatAs your role in this issueF

-ic8 at least one thing you can do about the conflict

a Identify at least three courses of action b ?or each course, write at least three pros and cons

c $elect an action if there is no clear course of action, pic8 the alternative that

will not hurt, or be least hurtful, to yourself and others

d (riefly discuss that course of action with a friend

+hen do something

a <ait at least a day before you do anything about the conflict +his gives you

a cooling off period

 b +hen ta8e an action

c ave in your own mind, a date when you will act again if you see no clear

improvement

To Manage a !onflict %ith nother - "!ore Process"

1 Gnow what you donAt li8e about yourself, early on in your career <e often donAt li8e in others what

we donAt want to see in ourselves

a <rite down 3 traits that really bug you when see them in others

 b (e aware that these traits are your Chot buttonsC

2 'anage yourself If you andHor the other person are getting heated up, then manage yourself to stay

calm bya $pea8ing to the person as if the other person is not heated up this can be very

effective

 b !void use of the word CyouC this avoids blaming

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c =od your head to assure them you heard them

d 'aintain eye contact with them

'ove the discussion to a private area, if possible

@ive the other person time to vent

a onAt interrupt them or udge what they are saying

3 Jerify that youAre accurately hearing each other <hen they are done spea8ing5K

a !s8 the other person to let you rephrase DuninterruptedE what you are hearing from

them to ensure you are hearing them

 b +o understand them more, as8 openended questions !void CwhyC questions

those questions often ma8e people feel defensive

6 )epeat the above step, this time for them to verify that they are hearing you <hen you present

your position

a %se CIC, not CyouC

 b +al8 in terms of the present as much as possiblec 'ention your feelings

7 !c8nowledge where you disagree and where you agree

/ <or8 the issue, not the person <hen they are convinced that you understand them5

a !s8 C<hat can we do fi" the problemFC +hey will li8ely begin to complain again

+hen as8 the same question ?ocus on actions they can do, too

9 If possible, identify at least one action that can be done by one or both of you

a !s8 the other person if they will support the action

 b If they will not, then as8 for a Ccooling off periodC

10 +han8 the person for wor8ing with you

11 If the situation remains a conflict, then5

a &onclude if the other personAs behavior conflicts with policies and procedures in

the wor8place and if so, present the issue to your supervisor

 b &onsider whether to agree to disagree

c &onsider see8ing a third party to mediate

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Unit 1:

Organizational Change and .evelop5ent

Concept of Change

?hange means making things different. Those change can be either planned&intentional or sometimes unplanned &unintentional. Typically, the concept oforganizational change is in regard to organization)wide change, as opposed to smallerchanges such as adding a new person, modifying a program, etc. /amples oforganization)wide change might include a change in mission, restructuring operations&e.g., restructuring to self)managed teams, , new technologies, mergers, ma7orcollaborations, $rightsizing$, new programs such as Total Huality +anagement, re)

engineering, etc.

rganizational change is important to usher in long)term success in an organization. Achange entails realignment of organizational systems and processes. +anagingchange involves institutionalizing the philosophy of change in the organization./ffective change management entails creating a definitive vision and managingthe transition to the desired future state.

?hange +anagement is a structured approach to transitioning individuals, teams, andorganizations from a current state to a desired future state. The current definition of?hange +anagement includes both organizational change management processes and

individual change management models, which together are used to manage the peopleside of change.

Forces for Change

?hange and change is the basic feature of the organizations in today's dynamic world.Unwillingly, we need to change to cope to the new and changing environment. There arethe followings factors which enforce change

2. >ynamic business environment=. 6lobalization

B. <orkforce diversity

4. -ast changing technology

I. *igh ?ompetition

8. Social change

;. !nternal environment of the business

&/plain yourself

Force E@a5ples

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9ature of the workforce +ore cultural diversity!ncreasing number of women+any new entrants with knowledge andskills

 Technology -aster, cheaper and more mobilecomputers

nline music sharing>eciphering of the human genetic code

/conomic shocks #ise and fall of dot)com stocksStock market all time high#ecord 6>"

?ompetition 6lobal competitors+ergers and consolidations6rowth of e)commerce

Social trends !nternet chat roomsAdaptation to other cultures#ise in discount and retailers

<orld politics !ra1)U.S. war and U.S. relationship withother countriespening of makers in ?hina<ar on terrorism following 32252

Source S.". #obbins and Seema Sanghi, =55I p.p. I=I

2esistance to Change

rganizational change is an enviable phenomenon in every enterprise. *owever,research has shown that people of the organization resists change. Such resistancemay severely interrupt the change process. The followings are the ma7or forces forresistance to change.

Individual sources $Individual resistance*

Habit+ To cope with life's compleities, we rely on habits or programmed responses. %utwhen confronted with change, this tendency to respond in our accustomed waysbecomes a source of resistance

Securit#+ "eople with a high need for security are likely to resist change because it

threatens their feelings of safety.Econo5ic factors+ ?hanges in 7ob tasks or established work routine can arouse

economic fears if people are concerned that they won't be able to perform thenew tasks or routine to their previous standards, especially when pay is closelytied to productivity

Fear of the unno"n+ ?hange substitutes ambiguity and uncertainty for the knownSelective infor5ation processing+ !ndividuals are guilty of selectively processing

information in order to keep their perceptions intact. They hear what they wantto hear and they ignore information that challenges the world they havecreated.

Organizational sources $Organizational resistance*

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Structural inertia+ rganizations have built)in mechanisms like their section processesad formalized regulations) to produce stability. <hen organization is confrontedwith change, this structural inertia acts as a counterbalance to sustain stability

=i5ited focus of change+ rganizations are made up of a number of interdependentsubsystems. ne can't be changed without affecting the others, So, limitedchanges in subsystems tend to be nullified by the larger system.

/roup inertia+ /ven if individuals want to change their behavior, group norms may actas a constraints,

Threat to e@pertise+ ?hanges in organizational patterns may threaten the epertise ifspecialized groups

Threat to established po"er relationships+  Any redistribution of decision)makingauthority can threaten long)established power relationships within theorganization

Threat to established resource allocation+ 6roups in the organization that controlsizable resources often see change as a threat. They tend to be content with theway things are.

Overco5ing Barriers to Change

 The followings arte the si tactics of overcoming the resistance to change

1 Education and Co55unication+ %efore implementing change, organization canprovide necessary trainings and education about the new change. /ffectivecommunication about logics of change, understanding and providing accurateinformation can help managing change. >iscussion, meetings, presentations can

be done for communication.3 -articipation+ !f we are involved in change decisions, it is very less likely to

resist the change. +anagement should participate the individuals who may resistthe change, increase their commitment and contribution to change process

4 Facilitation and Support+ rganization needs to provide different facilities tothe individuals who resist change. They can appoint a change agent and his orshe facilitate the change through supporting the individuals

7 ;egotiation+ 9egotiation can be taken place between the potential resisters andthe organization if the resistance is from powerful individuals. >ifferent reward

packages can be offered to those powerful individuals

& ,anipulation and Cooptation+ +anipulation is a way of misinterpretation ofthe fact providing false information to the potential resisters so that they mayappear soft and support the change. Twisting and distorting the reality andproviding false information to get employees accept change can be done.?ooptation is another process which uses the manipulation and participationproviding the key role in decision making to the leader of potential resistancegroup. The purpose is not to consider their advice but get the endorsement.

' ?oercion !t is the process of using force and threats on the resisters is coercion. !tis the last step and if the step five &manipulation and cooptation doesn't work,

management is compelled to coerce the employees for change.

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For5ula for Change

A -ormula for ?hange was developed by #ichard %eckhard and >avid 6leicherand is sometimes referred to as ,leicher-s ormula. The -ormula illustrates thatthe combination of organisational dissatisfaction, vision for the future and thepossibility of immediate, tactical action must be stronger than the resistancewithin the organisation in order for meaningful changes to occur.

0.D02

 The A>A# model for individual change management was developed by "rosciwith input from more than 2555 organizations from I3 countries. This modeldescribes five re1uired building blocks for change to be realized successfully onan individual level. The building blocks of the 0.D02 +odel include

2. 0"areness O of why the change is needed=. .esire O to support and participate in the changeB. Dno"ledge O of how to change

4. 0bilit# O to implement new skills and behaviorsI. 2einforce5ent O to sustain the change

Organizational .evelop5ent Concept

rganization development is the process through which an organization develops theinternal capacity to most efficiently and effectively provide its mission work and tosustain itself over the long term. This definition highlights the eplicit connectionbetween organizational development work and the achievement of organizational vision)

mission.

According S.". #obbins, organizational development &> is a collection of planned)change intervntions, built on humanistic)democratric values, that seeks to improveorganizational effectiveness and employe well)being.

According to #ichard %eckhard, > is defined as a planned effort, organization)wide,managed from the top, to increase organization effectiveness and health, throughplanned interventions in the organization's 'processes', using behavioural scienceknowledge.

According to <arren %ennis, organization development &> is a comple strategyintended to change the beliefs, attitudes, values, and structure of organizations so thatthey can better adapt to new technologies, markets, and challenges.

 The follwoign are the facotors to be valued for oeganizational development efforts&Kalues of O. efforts*

2. 2espect for people+  !ndividuals are perceived as being responsible,conscientious and caring, they should be treated with dignity and respect

=. Trust and support+ The effective and healthy organization is characterized bytrust, authenticity, openness and a supportive climate

B. -o"er eualization+ /ffective organizations deemphasize hierarchical authorityand control

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4. Confrontation+ "roblems should not be swept under rug, they should be openlycontVfronted

I. -articipation+  The more that people who will be affected by a change areinvolved in the decisions surrounding that change, the more they will becommitted to implementing those decisions. &Source S.". #obbins, =55I, IB=

-rocess and -rereuisites for Organizational .evelop5ent

-rocess for Organizational .evelop5ent

 The followings are the processes for organizational development

1 Initial .iagnosis+ !t is the process of identifying problems that re1uires to be solvedwith consultation of eperts and also finds whether problems can be solved with >intervention.

3 .ata Collection+  !t is the process of collecting necessary information aboutorganizational climate and problems to identify performance gaps using interviews and1uestionnaire.

4 Feedbac and confrontation+ After the initial diagnosis and identifying solutions, asummary of collected data is provided to employees for their feedback. ?onfrontationtakes place with disagreement. The > team is responsible to address thosedisagreements and defines the areas of priority for change.

7 0ction -lanning+ !t is the specific plan with appropriate resource allocation. <iththe consultation of eperts, appropriate actions with alternatives are developed withpotential conse1uences.

& Interventions+ !t is the process of implementing the change towards thedevelopment. !nterventions are the techni1ues of > for bringing the change. Suchtechni1ues are

7/

!nitial>iagnosis

>ata ?ollection

-eedback and

?onfrontation

Action"lanning

!nterventions

Sensitivity TrainingSurvey -eedback"rocess ?onsultation

 Team %uilding!nter)group

developmentAppreciative !n1uiry

/valuation

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Sensitivit# Training+ !t is a method of changing through unstructured groupinteraction. +embers brought together in a free and open environment in whichparticipants discuss themselves and their interactive processes, loosely directedby a professional behavioral scientist. !t is a process of laboratory training inwhich participants learn by observing rather than saying which helps in dealinginterpersonal problems.

Surve# Feedbac+  !t is the process of using 1uestionnaires to identifydifferences among members' perceptions. The result of survey is discussed !groups to develop remedies. Training and development activities can also beinitiated to solve the ma7or problems.

-rocess Consultation+ It is a process of consultation in which eternalconsultant assists a client to understand process events with which he or shemust deal and identify processes that need improvement. The consultant helpsthe client solving his or her own problems with best processes.

Tea5 building+  <ork teams are formed to implement change process which will

have high)interaction in group activities to increase trust and openness amongteam members. !t can be applied within groups at which activities arteinterdependent

Inter(group develop5ent+ !t is the process of changing the attitude,stereotypes and perception of the group in each other. Understanding andcoordination will be developed among different group and make harmoniousworking environment.

0ppreciative Inuir#+ Seeks to identify the uni1ue 1ualities and specialstrengths of an organization, which can then be built n to improve performance.

Others+

Organizational restructuring+ "rocess of overall change in organizationalstructure

Technological changes+ +odification of work methods, redesigning 7obs,application and installment of modern technologies

' Follo"(up an Evaluation+ #egular monitoring or change process is an importantfunction to ensure the achievement of results. According to the results achieved andlearning from past, further problems will be identified and considered as valuable

feedback.

!n >, practitioners might work in a manner similar to $organizational physicians$intending to improve the effectiveness of people and organizations by

2 /stablishing relationships with key personnel in the organization &often called$entering$ and $contracting$ with the organizationF

= #esearching and evaluating systems in the organization to understanddysfunctions andor goals of the systems in the organization &$diagnosing$ thesystems in the organizationF

B !dentifying approaches &or $interventions$ to improve effectiveness of theorganization and its peopleF

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4 Applying approaches to improve effectiveness &methods of $planned change$ inthe organization,

I /valuating the ongoing effectiveness of the approaches and their results.

-rereuisites for Organizational .evelop5ent

2. ?ommitment from Top +anagement Strong emphasis and commitment of

implementing change process.

=. "resence of change agent as a facilitator

B. Successful past eperience in >

4. "articipation of competent and skillful eternal consultantseperts

I. %uilt)in reward systems &#eward for contributions to change management

&>escribe yourself