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18HS1MG02–PRINCIPLES OF
MANAGEMENT &
ORGANIZATIONAL BEHAVIOUR
Dr.V.RATHINAM AP.,
Automobile Engg Dept
INTRODUCTION TO MANAGEMENT
What is management?
Management is defined as “art of getting work done from others”
At present,
Management is an art or science. ie mixture of art and science
Art – Getting work from others (skilled and unskilled person) is an art.
Science – Using scientific method (Based on individual’s bio-data,
skills, talent, and mathematical formulae the work is extracted from
others).
Organization – Actually, this word is derived from the Greek word
organon, which means tool or instrument, musical instrument, and
organ.
Behavior is the actions and mannerisms made by individuals,
organisms, systems or artificial entities in conjunction with themselves
or their environment, which includes the other systems or organisms
around as well as the physical environment.
MANAGEMENT DEFINITIONS
• The task of getting results through others by coordinating their efforts is
known as management. Management coordinates and regulates the
activities of various members of an organization.
• “Management is the process involving planning, organizing, staffing,

directing and controlling human efforts to achieve stated objectives in an
organization.”
• According to F .W. Taylor,

“Management is the art of knowing what you want to do and then
seeing that it is done in the best and cheapest way ”.
• According to Peter Drucker,

“Management is a multipurpose organ that manage a business,
manages managers and manages workers and work ”.
NECESSITY OF MANAGEMENT:
• To know all the possible business activities which will help the
company or organization in the following ways,
- To get highest position among different competitors in the
market
- To deploy 3M’s (Men, Material, and Machines)/allocation of
resources
- To improve GDP at country level
- To identify customer’s/consumer’s highlights about different
elements/products.
- To share or know the knowledge for updating
- To identify men, material, machine utilization for future
forecasting
NATURE OF MANAGEMENT / IMPORTANCE OF

MANAGEMENT
Nature of management – It means what exactly it is. (Responsibility
of management)
Following are the nature of management,
1. Management is multidisciplinary
2. Management is goal oriented
3. Management is universal
4. Management is a continuous process
5. Management is an integrative force
6. Management is intangible process
7. Management is an art and science
NATURE OF MANAGEMENT / IMPORTANCE OF MANAGEMENT
Management is multidisciplinary:
• Although management has been developed as separate discipline,
it draws knowledge and concepts from various discipline such as
economics, psychology, sociology, political science,
anthropology, ecology, statistics, operation research, history
etc.
• Anthropology – scientific study of human behaviour. ie men and
work system design
• Management integrates the ideas and concept taken from these
disciplines and presents newer concepts which can be put into
practice for innovative achievements in the organizations.
NATURE OF MANAGEMENT / IMPORTANCE OF MANAGEMENT..,
Management is goal oriented – Achievement of specific goals
• Goal is setting an idea of future oriented or desired result that a
person or a group of people envision, plan and commit to achieve.
People endeavor to reach goals within a finite time by setting
deadlines.
• Management goals are group goals or organizational goals. The

basic goal of management is to ensure efficiency and economy in
the utilization of human, physical and financial resources.
Management is universal.
• It is an universal activity to any type of organization (It may be
small or big or a family anything..,), to follow certain guidelines or
principles according to the situations. So, without management no
organization is available.
Management is a continuous process
• It is a continuous process to fulfill the organizations goal through
planning, organizing, staffing, directing, communication, controlling,
motivation, decision making, forecasting.
Management is an integrative force

• The main essence of this management is integrating forces given to
all individual and small groups to attain organizations goal.
Management is intangible process

• It is an identifiable non-monetary invisible force indirectly given to
the groups in the form of goodwill.
Management is an art and science

• Management is an activity and it is not a person or group of
person
• Management is the process of planning, organizing, directing and
controlling to achieve the objectives of the organization.
• FUNCTIONS OF MANAGEMENT
The important functions of
management are
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Communication
6. Controlling
FUNCTIONS OF MANAGEMENT
Planning:
• Formation of objectives
• Policies
• Programmes
• Forecasting
• Budgeting
• Determination of path and method to obtain objectives
- what should be done
- why should be done
- when should be done
- how should be done
- planning is the first step and think before doing anything
FUNCTIONS OF MANAGEMENT…,
Organizing:
• It includes departmentation, delegation of authority, fixing of
responsibility and establishment of relationship.
• Organizing the resources of man, machine, material and money to
achieve organizations objectives
• A manager has to design and develop a structure of various
relations
• This structure, results from identification and grouping work,
delegation of authority and responsibility and establishing
relationship.
• Staffing:
• Man power planning, recruitment, selection, placement and
training.
• People are basically responsible for the progress of the
organization Right man should be employed for right job. It also
involved training of personnel and proper remuneration.
Directing:-
• It includes decision making, supervising, guidance etc.
• It reflects providing dynamic leadership.
• The manager performs some functions like issues orders and
instructions to supervisors.
• Creation of favourable work, environment motivation, managing
managers, managing workers and managing work environment
Communication:-
• Communication provides the vital link in any organization.
• Every successful manager has to develop an effective system of
communication.
• It means exchange of facts, ideas and information between two or
more person
• It helps in building up high moral.
Controlling:
• It is a process of checking actual performance against standard
performance.
• If there is any difference or deviation then these differences
should be detected and necessary steps should be taken.
• It involves three elements:
• 1. Establishing standard of performance.
• 2. Measuring actual performance with establishment.
• 3. Finding out reasons for deviation.
Other functions of management are.,
• Problem oriented motivation, decision making, forecasting
• Decision Making:
• Should select an optimum solution for specific problem from
availability of different solutions.
TAYLOR’S SCIENTIFIC MANAGEMENT THEORY
• Frederick Winslow Taylor (20 March 1856-21 March 1915), widely
known as F. W. Taylor, was an American mechanical engineer who
sought to improve industrial efficiency.
• He is father of scientific management, and he was one of the first
management consultants.
• What is scientific management?
• In simple words, it is just an application of science to management.
Or
• The systematic study of relationships between people and tasks for
the purpose of redesigning the work process to increase efficiency
or output
(Task – an activity to fulfill the action/work in specific time period)
• Scientific management is analyze and synthesize the workflows.
• (Synthesize – to produce a substance by chemical reaction)
• Scientific management is an adoption of a scientific approach for
decision making.
Objectives:
• To improve economic efficiency and productivity.
• Maximum improvement of workers
• Taylor’s principles:
• Replace thump rule (traditional methods & mgr.'s own
experience) and working methods based on scientific study of
task
• Scientifically select, train and develop each worker
• Hearty cooperation (not individualism) – workers should
cooperate full-fledged manner (mgr and worker jointly work
together) to ensure that developed methods are followed or not
• Divide the work equally between managers and workers so
that managers apply scientific management planning the work
and the workers actually perform the tasks
Mechanism of Scientific Management:
Taylor concentrated more on productivity and productivity based
wages. He stressed on time and motion study and other techniques for
measuring work.
From above 8 Foremen, 4 persons divide their work for planning

department, remaining four for production department, According to
Taylor’s concept, Separate the work as Planning & Doing: Workers
should plan their work and instrument to complete their work
Mechanism of Scientific Management
Job Analysis:
• Analyze the job as,
• Best way of doing the job
• Least movements for doing the job
• Apply time study (time required to complete the job in a
particular time)
• and work study/method study (the movement which takes
minimum time)
• Fatigue Study - the amount & frequency of rest required for
completing the job
Made In India - Car Manufacturing Industry - Short -2013.mp4

• This technique shows improvement on efficiency and
effectiveness in performance
• Effectiveness is the capability of producing a desired result
• Efficiency is the ratio of the useful work performed by a
machine or in a process to the total energy expended or heat
taken in.
• So, scientific management is sometimes known as Taylorism
• Effects of Taylor’s principles,
• Prevent the wastage of time.
• Reduce the Secure the labor cost and production cost.
• Increase the efficiency of the workers.
• Develop the relationship between workers and managers.
Fayol’s principles of management
1. Henri Fayol, a French Industrialist, called as father of modern
management.
2. Division of Work
3. Authority and Responsibility
4. Discipline
5. Unity of Command
6. Unity of Direction
7. Subordination of Individual Interest
8. Remuneration
9. The Degree of Centralization
10. Scalar Chain
11. Order
12. Equity
13. Stability of Tenure of Personnel
14. Initiative
15. Esprit de Corps (a feeling of pride and mutual
16. Loyalty shared by the members of a group)
1. Division of work:
Based on specialization and individual skill work should be
divided w.r.t.to no. of individuals and groups to ensure the effort
and attention focused on task.
Namely, work specialization is the best way to use human
resources.
According to Fayol, the specialization promotes efficiency of the
work force.
Subdivision of work makes it simpler and results in efficiency.
It also helps the worker in reaching speed and accuracy in his
performance.
2. Authority and responsibility:
Authority and responsibility are closely related to any kind of work
• The rights to give orders and the power to exact obedience.
3. Discipline:
• All the personnel serving in an organization must follow
discipline.
• Discipline is obedience or application of behavior & energy
shown by an employee.
• Discipline may be self employed or command discipline.
Discipline can be obtained lower remuneration, dismissal,
demotion of position. While applying such circumstances proper
proof should be taken into account. (demotion - reduction in an
employee's rank)
4. Unity of Command:
• If tasks and related responsibilities are given to the employee by
more than one manager, this may lead to confusion which may
lead to possible conflicts for employees.
• Each employee should receive order from single manager. In the
organization structure it should be clearly stated that who is
responsible to whom? & who should receive order from
whom?
Negative effects of Unity of command which leads …
- weakens discipline
- creates confusion
- delays the work
- escaping from responsibility
5. Unity of Direction:
• The entire organization should move towards a common
objectives in a common direction
• All employees deliver the same activities that can be linked to the
same objectives (unidirection).
• All activities must be carried out by one group that forms a team
• People engaged in the same kind of activities must have the same
objectives in a single plan. This is essential to ensure unity and
coordination in the enterprise
6. Subordination of individual interest to general interest:
• In an organization there are two types of interests
1. Individual interest 2. General interest
• Less importance should be given to individual interest compare
to general interest. If not the organization will collapse.
• For example change of plant location and profit sharing ratio
7. Remuneration:
• Remuneration is the price for services received. If an
organization wants efficient employees and best performance,
then it should have good remuneration policy. This policy will
give maximum satisfaction to both employer and employee.
• The remuneration may be financial or non-financial incentives
(free education, medical and residential facility, insurance etc.)
8. The Degree of Centralization:
• Decision making authority is at top management
• Decision making with little input from subordinates is said to be
more centralization
• But in decentralization, the decision making is disposed ie
decision making authority is shared with subordinates or sub
groups
• According to Fayol, degree of decentralization depends on
following factors,
- size of business
- experience of supervisor
- ability and dependability of subordinates etc
• Anything which increases the role of subordinate is called
decentralization and anything which decreases it is called
centralization.
• Fayol suggested that absolute centralization or decentralization is
not feasible. So, one way is possible out of two.
8. Advantages of Centralization:
• Better coordination
• Focus on the most important decisions
• Improved quality of work
• Flexibility
• Personal leadership
• Uniformity in action
• Reduced cost
Disadvantages of centralization:
• Delay in work, Over burden
• Remote control
• No loyalty
• No secrecy
• No special attention
8. Limitations of centralization:
• Opportunity giving to group leaders of low level is negligible
• It creates problems of effective communication
• No scope of specialization
Decentralization:
• Decision making is achieved from bottom levels of different
groups in an organization
Advantages of decentralization:
• Better control can be achieved
• Chances will be given to managers from sub groups
• Several individual responsible for decision making and running
the organization
• Growth and diversification
• Better communication and development of executives
• Improvements in motivation and moral
• More efficient decision making
Disadvantages of decentralization:
• It delays decision making action
Limitations of decentralization:
• More cost, no specialization required
• No uniform action
• Work distribution is uneven
Disadvantages of decentralization:
• It creates problems in coordination between different units of the
organization
• It creates higher administrative expenses for qualified managers
from different groups
• Inconsistency may arise due to different policies and procedures
from each unit heads
9. Scalar Chain:
• Scalar chain is a line of authority. This line joins top to bottom
and each and every persons responsibility and who is superior
who is subordinate. So, this is an effective communication for
every organization.
• Scalar chain should broken in any circumstance, if it is necessary.
If this scalar chain breaks which is called “Gang plank”.
• Gang plank is a temporary arrangement between two different
ends to facilitate quick and easy communication.
• From figure, F has to communicate with
P through E,D,C,B,A and L,M,N,O.
This concept may not perform well.
So, the Quick plank will form instantly
and communicate each other.
10. Order:
• It means “order for things and people” in the organization.
• Order for things means material order and order for people
means social order.
• Material order refers “a place for everything” and “everything
in its place”.
• Social order refers selection of “right man in the right place”.
• There must be orderly placement of the resources. Namely, men,
women, money, material, and machines in the right place.
Otherwise (misplacement) it leads misuse and disorder.
11. Equity:
• All employees should be treated as equally as possible with
fairness, kindness and justice if devotion is expected of them
• The managers should not be partial while dealing with the
subordinate
• Manager should give similar treatment to the people of similar
position in the organization
• Managers should not discriminate with respect to age, caste, sex,
religion, and relations etc
• Equity is very essential to create and maintain cordial relations
between the managers and sub-ordinate
• Equity does not get any wrong meaning like mass cut or
absenteeism
12. Stability of Tenure of Personnel:
• Employees work in better manner if job security and carrier
progress are assured to employees. An insecure tenure and a high
rate of employee turnover will affect the organization adversely
• According to Fayol, time is required to an employee to get
• Management always give high priority to high productive
employees for retaining them
• Employee work better if management provides job security,
future carrier progress. Otherwise insecure job security will lead
to negative direction in the form of money.
• Stability of job security will create team sprit among workers
• Material, money spent on training to worker will go waste if these
are essential
• The following factors are considered for retaining the employees
• Recruitment and selection costs
• Product rejection rate
13. Initiative:
• Management should encourage the workers towards achieving
management's objectives and encourage them to say ideas,
suggestions etc which should be achieving towards management’s
goals.
Fayol’s & Mayo’s principles of management
14. Esprit de Corps:
• Management should encourage harmony and sharing of general
good feelings among employees up to a certain limit.
Mayo’s Hawthorne experiments:
Mayo is known as founder of human relations movement
Hawthorne experiment objectives – Increase the production
through maintaining human relations in organization. Individual
human behaviour at work
List of Hawthorne experiments:
1. Illumination experiment
2. Relay assembly test experiments
3. Relay assembly room
4. Mica splitting test group
5. Plant interview group
6. Bank wiring observation group
Introduction to management
Social Responsibilities of Management:
• Social responsibility is a duty of every individual has to perform
so as to maintain an ethical balance between both economy and
eco-systems in best manner
• Also, obligation and commitment of managers to take steps for
protecting and improving societies welfare along with protecting
their own interest
• It is an ethical balance between their environment and society to
act in best interest
• Also, obligation and commitment of managers to take steps for
protecting and improving societies welfare along with protecting
their own interest
To owners:
• Business should be managed profitably
• Fair and regular return on capital with capital
appreciation
• Financial position should be strong

• Company should build its image and reputation in the market
To employees:
• Fair selection, training and promotion
• Fair wages and incentives
• Safe and comfortable working conditions
• Labour welfare schemes
• Proper recognition, appreciation and encouragement of special
skills
• Installation of efficient grievance handling system
To consumer:
• Supply goods at reasonable rate
• Provide after sales and service
• Avoid creation of artificial scarcities
• Not to give a false statement
• Producing and distributing only quality goods without any side
effect
• Company should build its image and reputation in the market
• To provide same information like weight, composition etc marked
on package and product
• Provide full information
• To improve product distribution
• To hear and redress genuine grievances of the customers
• Understand customers needs and to satisfy them
To community:
• Provide pollution free environment and preserve ecological
balance
• Assisting in overall development of the locality
• Provide jobs
• Promotion of small scale and ancillary industries
• Promotion of education and literacy
To government:
• Comply or adopt government rules and regulations with legal
setup (requirements)
• Paying taxes honestly
• Executing government contracts
• Making services of executives available for government
• Working as willing partner with government
Advantages of social responsibility:
• Justification for existence and growth
• The long-term interest of the firm
• Avoidance of government regulation
• Maintenance of society
• Availability of resources with business
• Converting problems into opportunities
• A better environment for doing business
• Holding business responsible for social problems
Planning – meaning, significance, and types of plans
Planning:
• Meaning of planning and plan
• Planning: It is a process which consists of various steps
• Planning is deciding in advance what to do, when to do, where
to do, how to do and who is going to do it.
• Namely, planning is a process of thinking about the activities
required to achieve a desired goal in future.
• So, planning is the function that determines in advance what
should be done
• Plan: Plan is a commitment to a particular course of action which
is necessary to achieve specific results.
eg- preparing nation’s five-year plan which consist of various
actions to be taken and results to be achieved and resource to be
used.
Planning – meaning, significance, and types of plans..,
• So, before starting any programme planning (a set of activity) is
very important and primary function of management. Planning
involves deciding in advance what to do and how to do it.
• Planning is considered the first primary function of management.
• In an organization, managers define the organizational goals and
allocate resources of the organization to achieve such goals.
• So planning will also define all the future functions of management.
• It acts as bridge between where we are and where we want to go.
• Planning includes the selection of objectives, policies, procedures
and programmes from alternatives
• Concluding,
• Planning - It is a primary function of an organization
- It is the ground work of all future plans
- It is acting as bridge between from where we are and
- where we want to go and decision making process
• Planning – significance and nature of planning
• Planning has assumed great in all types of organizations. If you
have planned well means half of your work is done. The most
important differentiator between successful and unsuccessful
organization is planning. So, top management of all successful
companies spend maximum time on planning. The importance of
planning is given as below.
1. Direction for action:
- A good plan is like a road map
- It shows final destination and best way to get management
goal
2. Reducing risk of uncertainty:
- It means involving imperfect or unknown information.
3. Reducing overlapping and wasteful activities:
- It reduces overlapping and wasteful activities by prescribing
• What is to be done and how this can be done. Because this
prescription allows only necessary activities are performed. So,
unnecessary activities are reduced.
Promoting creativity and innovation:
• Since planning is a mental exercise, it promotes creativity and
innovation.
• Creativity is generation of new ideas which are unique in some
way to solve problems.
• Creativity and innovation help an organization to increase its
market standing.
• Increasing complexities of business is tackled.
• Effective utilization of resources.
• Effective control
• Avoiding business failure
• Economy in operation
• Helping in coordination
Planning:
• Planning is looking into future
• Planning discovers best alternative out of available many
alternatives
• Planning is continuous process
• Planning is required at all levels of management
• Planning directs the members of an organization in direct
direction
• Planning reduces uncertainty
• Planning brings co-operation and co-ordination among various
sections in an organizations
• Planning is goal oriented
Planning:
• Planning is goal oriented
• Planning is a primary function
• Planning is all-pervasive
• Planning is a continuous process
• Planning is forward looking
• Planning involves choice
• Planning is directed toward efficiency
Steps followed in planning process are
1. Define the task
2. Identify the resources
3. Consider alternative
4. Create the planning
5. Work the plan
6. Evaluate
Planning is used to convert uncertainty into certainty. Planning provides
necessary provisions to face the uncertainty predicted by forecasting
• Reduces uncertainties and risks
• Provides sense of direction
• Encourages innovative and creativity
• Helps in co-ordination
• Guides in decision making
• Provide efficiency in operation
Steps of Planning
• It helps uncertainty into certainty
Steps of planning:
1. Analysis of external environment
2. Analysis of internal environment
3. Determination of objectives
4. Determine planning sources and its constraints
5. Examination of alternative course of action
6. Weighing alternative course of action
7. Selection of the best alternative course of action
8. Establishing the sequence of activities
9. Formulate and implement the action programme
10. Determine secondary plan
11. Securing participation of employees
12. Follow-up and evaluation
Limitations of planning:
• No flexibility
• Limitation of forecasts
• Unsuitability
• Time consuming
• Costly
• False sense of security
• Delay during emergency period
• Capital investment
• Political climate
• Trade unions
• Obstacles of planning:
• Unreliability of forecasts, expensive
• Recurrence of same type of problems, loss of initiative
Types of planning:
1. Corporate planning
2. Functional planning
3. Long term planning
4. Short term planning
5. Proactive planning
6. Reactive planning
7. Formal planning
8. Informal planning
9. Strategic planning
10. Operational planning
Corporate planning – planning for whole organization
• Determine long term objectives of an organization as whole
• Generate plans to achieve these objectives
• Future oriented
• Integrated
Functional planning:
• Undertaken for sub functions within each major functions
• Derived from corporate planning
• Segmental
Long term planning:
• It involves 3-5 years
• It relates to matters like new product and product diversification
(the practice of expanding the original market for a product)
Short term planning:
• It is less than one year to assist the long term planning to towards
long term planning gradually
• Examples are skills of the employees and their attitudes and
condition of production equipment or product quality are also
short term concerns
Proactive planning:
• Designing suitable course of action in anticipation of likely
changes in relevant environment
• To take decision in advance (eg: emergency organizations)
Reactive planning:
• Reactive planning is the process whereby future action is dictated
as a response to whatever has already or is now occurring
Formal planning:
• It is a structure plan
• It has some procedure to follow
• Written record is followed
• Example – Five year plan of a company
Informal planning:
• It is an unstructured plan
• It does not have any procedure to follow
• No record is maintained for future purpose
Strategic planning:
• It sets future directions of the organization in which it wants to
proceed in future
• It involves a time horizon of more than one year and for most of
the organization it ranges between 3 and 5 years
• This type of strategic plan is actually developed by top level
management
• Example – diversification of business into new line
Operational planning:
• Operational plans are developed to determine the steps necessary
for achieving tactical goals
• They are used as a guide for day to day operation by department
managers
• These plans may cover a time frame of few months, weeks or
even a few days
Advantages of planning:
1. Planning facilitates management objectives
2. Planning minimizes uncertainties
3. Planning facilitates co-operation
4. Planning improves employee’s moral
5. Planning helps in achieving economies
6. Planning facilitates controlling and provide competitive edge
7. Planning encourages innovations
Decision making
Decision and decision making
Decision:
• A decision is a choice made between two or more available
alternatives.
Decision making:
• Decision making is the process by which an individual choose
one best alternative among several alternative sources for
reaching the desired objectives.
Decision making factors:
1. Perception 2. Priority 3. Acceptability 4. Risk 5. Resources 6.
Goals 7. Values 8. Demands 9. Style 10. Judgement
Perception – The ability to see, hear or become aware of something
through senses
Priority – Giving more importance than others
Decision making
Acceptability – It is the characteristics or the quality of being
accepted
Risk - A situation involving with uncontrolled loss of something of
value.
Resources - resource is a source from which a benefit is produced
Goals - goal is an idea of the future or desired result that a person or a
group of people envision, plan and commit to achieve.
Values - individual belief that motivate people to act one way or
another
Demands – people’s or customer purchasing capability during a given
period of time
Decision making
Decision making factors:
1. Construct – A clear picture of precisely what must be decided
2. Compile – List of requirements
3. Collect – Collect the information and alternatives to meet the
requirements
4. Compare – Compare the alternatives to meet the requirements
5. Consider – Consider only right things to meet the objectives
6. Commit – A decision and follow through with it
Decision making
Decision making characteristics:
• Before taking decision all possible alternatives are considered and
evaluated . It is a choice between different available alternatives.
• Decision making is a selection process in which the best possible
alternatives is chosen.
• Decision making is a mental process. Decisions are the outcome
of logical debates.
• Every decision making affects the past, present and the future.
Past cannot be alter by present decision. But present decision can
alter the future activities. Similarly, future decision making will
helpful to next coming activities
Decision making
Elements of decision making:
1. Concept of good decision
2. Environment of decision
3. Psychological elements in decision
4. Timing of decision
5. Communication of decision
Concept of good decision
• A good decision is acceptable to all persons and is based on
sound judgment and factual information
• No decision should be taken without examining the situation
and scientifically analyzing and correlating facts
Environment of decision:
• The organizational environment and formal structure decides the
relationship between units on the one hand to other
Decision making
Psychological elements:
• Every managers takes decision on the basis of the given facts,
information and scientific analysis.
• Actually the manager will take decision based on his habits,
temperament, social environment, upbringing domestic life and
political learning.
Timing of decisions:
• In common sense, thinking is the intentional use of cognitive
capabilities for some purpose.
- recall some kind of information
- make sense of some incoming stimulus
- develop a judgment on some person or thing
- make a decision
Decision making Process
Steps:
1. Identify/define the problem/decision
2. Gather information and resources
3. Identify the alternatives
4. Develop alternatives
5. Weigh and compare the alternatives
6. Selection of best alternatives for making decision
7. Implement best alternatives to reach the goal/objectives
8. Evaluate the decision
Decision making steps/process:
1. Identify/define the problem/decision
Try and clearly define the nature of the decision you must make
2. Gather relevant information
Collect some pertinent information before you make decision ie
what information is needed, the best sources of information, and
how to get it. This step involves both internal and external work.
3. Identify the alternatives
As you collect information, you will probably identify several
possible paths of action or alternatives. You can also use your
imagination and additional information to construct new
alternatives.
In this step you will list all possible and desirable alternatives.
Decision making steps:
4. Weigh the evidence
Draw on your information and emotions to imagine what it would
be like if you carried out each of the alternatives to the end.
Evaluate whether the need identified in Step 1 would be met or
resolved through the use of each alternative.
5. Choose among alternatives
Once you have weighed all the evidence you are ready to select
the alternative that seems to be best one for you. You may even
choose a combination of alternatives. Your choice in Step 5 may
very likely be the same or similar to the alternative you placed at
the top of your list at the end of step 4.
6. Take action
You’re now ready to take some positive action from beginning to
implement the alternative you chose in step 5.
7. Review your decision and its consequences
In this final step consider the results of your decision and
evaluate whether or not it has resolved the need you identified in
Step 1. If the decision has not met the identified need. you may
want to repeat certain steps of the process to make a new
decision. For example you might want to gather more detailed
or somewhat different information or explore. additional
alternatives.
organizing
Organizing:
• Organizing is the word actually derived from ‘organism’. It is
assumed or related to human body
• Organizing is the detailed arrangement of work and working
conditions in order to perform the assigned activities in an
effective manner.
Or
• Organizing is the process of identifying and grouping of the
works to be performed, defining and delegating responsibility
and authority and establishing relationships for the purpose of
enabling people to work most efficiently.
Or
• Organizing is the process of arranging and allocating work,
authority and resources among an organization’s members so that
they can achieve organizational goal.
• In general sense, organizing is the systematic arrangement of
activities.
Organizing
Importance of organizing:
• Organizing gives a sense of security and oneness to the
employees
• Organizing provides better coordination among various
departments
• Employees accomplish tasks within the stipulated time frame as
a result of effective organizing management.
• Employees stay loyal (constant support) towards their job and do
not treat work as a burden.
• Effective organizing management leads to a peaceful and
positive ambience at the workplace.
Purpose of organizing
Purpose:
1. Coordinate activities
2. Cluster complicated job (unit) into no. of sub-units
3. It ensures optimum use of resources
4. Establish relationship among individual groups
5. It facilitates growth, creativity
Nature or characteristics of organization:
1. Group of persons 2. Common objectives 3. Division of work 4.
Cooperative efforts 5. Communication 6. Central authority 7.
Rules and regulations 8. Dynamic element
Organizing
1. Group of persons:
An organization is a group of people working together for the
achievement of common objectives. The group may be large or
small
2. Common objectives:
Every organization has a common objectives which are distinct
from personal objectives of the members. The common goal is
the basis of cooperation among members
3. Division of work:
The total task of an organization is divided into the members of
the group. One individual cannot do all the work. For increasing
effectiveness and efficiency the work is divided into members
of a group.
4. Cooperative efforts:
The members of an organization are willing to help each other
for the achieving desired goals. The cooperative
relationships are stabilized both vertically and horizontally
Organizing
among different units of the organization.
5. Communication:
In an organization, workers are communicating each other in
order to integrate or coordinate there efforts to reach
objectives.
6. Central authority:
In every business organization, a central directing authority is
required to control or monitor the performance of workers. So,
the chain of authority and responsibility relationship is known
as the chain of command.
7. Rules and regulations:
For the orderly and systematic working of the members, rules
and regulations are laid down and enforced by the central
authority.
Organizing
8. Dynamic element:
• An organization is not a mere (small or insignificant things)
mechanical structure. But the living organism has some feelings
in the form of sentiment, attitude and behaviour of people or
worker. So, people are the material of construction that holds the
structure together and gives it vitality.
Importance of organizing
• Specialization,
• Role clarity
• Clarifies authority and power
• Avoid duplication of work
• Coordination
• Promotes human relations
Steps in the process of organizing
1. Division of work
2. Grouping of jobs into departmentation
3. Assigning duties
4. Establishing authority and responsibility
5. Delegation of authority
6. Effective communication
7. Coordination of activities
1. Facilitates Administration:
Achievement of the objectives of an enterprise by providing a framework of
coordination and control. It provides a system of authority and network for
effective communication. Individual goals can be coordinated towards group
organization facilitated both management and operation of the enterprise.
2. Encourages growth and diversification:
It has enabled organizations to grow and expand to giant sizes.
Systematic division of work and consistent delegation of
authority facilitate taking up of new activities and meeting new
demands. It provides flexibility for growth without losing
control over various activities.
3. Optimum use of new technology:
It is made through a sound structure manned with competent
employees. In addition, optimum use of technology permits
optimum utilization of human resources. Sound organization
ensures that every individual is placed on the job for which one
is best suited.
4. Stimulates Innovation & creativity:
It stimulates creative thinking and imitative on the part of
employees. It provides for effective management of change
and responds favourably to change in environment. It
provides recognition for the professional and the specialist in
terms of their achievement.
5. Encourages good human relations:
The assignment of right jobs to right person improves job
satisfaction and inter-personal relations. Well defined jobs
and clear lines of authority and responsibility ensure good
human relations.
6. Ensures continuity of enterprise:
It provides scope for the training and development of future
management. It provides avenues for development and
promotions through delegation and decentralization.
7. Coordination:
It facilitates cohesiveness in the enterprise. Division of
labour, better utility of technology and human talent helps to
improve the efficiency and quality of work. Clear channels of
communication among the members of the organization leads
to coordination.
Features of organizing:
The following are the features of organizing. These are,
1. Planning 2. Organizing 3. Staffing 4. Leading 5. Control 6. Time
Management 7. Motivation
Principles of organization
Principles of organization:
1. Delegation of Authority13. Principle of Continuity and Flexibility
2. The Scalar Principle 14. Principle of Span of Control
3. Unity of Command 15. Principle of Scalar Chain
4. Principle of Objective 16. Absoluteness of Responsibility
5. Specialization or Principles of depart mentation
6. Principle of Unity of Efforts
7. Principle of Authority
8. Principle of Responsibility
9. Principle of Definition
10. Principle of Co-Extensiveness
11. Span of Management
12. Principle of Balance
1. Delegation of Authority:
• It is the legal right of a person or a superior to command his
subordinates.
• Authority can be delegated by a superior to a subordinate
• It flows from top to bottom.
• Authority is attached to the position of a superior in concern.
Responsibility:
• It is the obligation of subordinate to perform the work assigned to
him.
• Responsibility arises out of superior-subordinate relationship in
which subordinate agrees to carry out duty given to him.
• Responsibility cannot be shifted and is absolute
• It flows from bottom to top.
2. The Scalar Principle:
• Scalar principle is the chain of superiors.
• The line of command or the line of authority flows form the
highest rank to the lowest rank (including all intermediate
levels) in the organization.
• Also states the superior- subordinate relationships in the
organization.
3. Unity of Command:
• Every individual in the organization should report to a single
boss.
• It is necessary to avoid confusion even if any individual receives
direction/instruction from more than one supervisor.
4. Principle of Objective:
The organization as a whole as well as its parts must have a clear-cut
idea about the objectives of an enterprise. Every organization is evolved
for a specific purpose. It does not exist in a vacuum. Every part of the
organization and the organization as a whole must be geared to the
objectives laid down for the enterprise. This will secure unit of
objectives.
5. Specialization or Principles of departmentation:
• The workload is so divided into specialization of each member of the
organization to perform a single function.
• To maximize the productivity of an organization is based on
breakdown of activity into different activities w.r.to
departmentalization.
• Overburdening and diverse duties are avoided.
• The term “departmentation” stands for the division and classification
of an industrial enterprise into several distinct departments or sections.
Departmental budget and planning activities are performed well.
6. Principle of Unity of Efforts:
• For the good performance of different activities, the enterprise
itself is divided into a number of divisions, departments and
sections.
• Though there are different divisions, departments and sections
carrying out specific activities, all these activities ultimately aim
at bringing the unity of efforts.
• Coordination is necessary to move in the direction of the given
objectives. It will avoid bottlenecks, frictions, conflicts and
rivalries.
7. Principle of Authority:
• The line of authority, must be well defined in advance. So that
every subordinate knows who is his superior. The authority of
different individuals, at different levels are well defined.
• Decision making, issue instructions, recruit staff, control work,
must be fixed in advance.
8. Principle of Responsibility:
• A superior is always responsible for the success or failure of his
subordinates.
• In any organization, the superior is held responsible for the
actions of his subordinates and the subordinates are accountable
for the work to their superiors.
9. Principle of Definition:
• Everyone in the organization must know what is his authority and
what is his responsibility and how he stands in relationship with
other positions in it.
10. Principle of Co-Extensiveness:
The authority and responsibility must be coextensive and
coterminous. For the discharge of responsibility, a subordinate must
be given adequate authority. Authority without responsibility will
make him irresponsible, while responsibility without authority will
make him impotent. Responsibility can be carried out effectively
only with adequate authority.
11. Span of Management
• The span of management is the number of subordinates that a
manager can supervise.
• It includes
a) how many subordinates should be assigned to a
supervisor
b) the organizational structure is narrow or wide
c) which type of organizational structure involved in it
12. Principle of Balance:
An organization is made up of different units. All these units should
be kept in balance. Each function should be given its proper
emphasis with regard to its basic purpose in the organization.
Moreover, a good organization must be balanced with respect to
centralization and decentralization, authority and responsibility,
span of control and line of communication.
13. Principle of Continuity and Flexibility:
• An organization is a continuous process.
• The organizational structure must be readily adaptable and
flexible with respect to environmental (technological and
business) changes and growth of the organization.
14. Principle of Span of Control
• No executive is required to supervise more subordinates
than he can effectively manage on account of the limitation
of time and ability.
• There is a limit on the number of subordinates that an
executive can effectively supervise. However, the exact
number of subordinates will vary from person to person
depending upon the nature of job, and basic factors that
influence the frequency and severity of the relationships to
be supervised.
15. Absoluteness of Responsibility:
• The responsibility of the subordinate to his superior is absolute.
No executive can escape responsibility for the delegation of
authority to his subordinates.
Organization chart:
• Organization chart is a diagrammatic representation of
organization structure which shows designation and functions of
personnel from top to bottom of the organization.
Organization chart
Types of organization
Organization is an instrument for achieving organizational goals in the
form of identifying, grouping the work to be performed.
Types:
• Line structure
• Line and staff structure
• Functional structure
• Committee structure
• Project structure
• Matrix structure
• Virtual organization
• Cellular organization and Team structure
Line structure:
• It flows from top to bottom level
• It is a simplest and oldest method followed in many organizations
• It is also called as, military organization
• General manager
• Production manager
• Assistant manager
• Supervisors
• Workers
Merits of line organization:
• Simple and easy to establish
• Authority and responsibilities are clearly defined
• Prompts decision, it provides better scope for supervision
• Speedy action taken
• Unity of command is maintained due to full control over
subordinates
• Ensures better discipline
• It is economical since it is a simple structure
Demerits of line type structure:
• Lack of specialization
• Over burden with lots of administrate work
• It may result in autocratic control
• Manager enjoys monopoly in the matter of decision making (He
himself take decision)
• Always downward communication is possible
• Upward communication is very difficult (not possible)
• It is suitable for small concerns with less number of workers
Line and staff organization:
• The staff is attached to line and the staffs are experts with
specialization in specific areas
• They give ideas to personnel and support the line personnel also
Merits of line and staff organization structure
• Expert advice
• Relief to top executive
• Quality decisions
• Flexible
• Specialization is not violated
• Unity of command is not violated
Demerits:
• Conflicts will arise frequently between line and staff
• Confusion will continue if responsibilities are not well defined
• Ineffective staff
• This is suitable for large organization
Functional organization:
• There will be a separate department for different actions or
activities
Merits of functional organization:
• Specialization is possible
• Work load is less
• Better control over subordinates
• Scope for expansion
• Higher efficiency
Demerits:
• Unity of command is violated
• Inter departmental conflicts
• Delay in decision making
Committee organization:
• A group of person entrusted in a task.
• It is a method of collective thinking, corporate judgment and
common decision. The main reason for committees is to secure
common judgment on administrative matters.
Types:
• Standard or permanent committee
• Temporary or adhoc committee
• Executive committee
• Advisory committee
• Formal committee
• Informal committee
Merits:
• Scope for group judgment
• Proper coordination and control among individuals and
departments
• Motivation through participation is possible
• Various interest groups and check against misuse of powers
Demerits of committee organization:
• Expensive affair to constitute a committee
• Time consuming or slow decision
• Compromise decision
• Suppression of ideas
Project organization:
• A project organization is a structure that facilitates the
coordination and implementation of project activities.
• Its main reason is to interact team members with a minimum
amount of disruptions, overlaps and conflict.
• Project organization is created when the project is big in size and
subject to high standards of performance.
• Any organization execute for a long period of time adopt this
organization. Usually some company has large number of small
projects then the team leader organize the experts or specialist
Project organization
Merits of project organization:
• Maximum use of specialized knowledge and skill
• Flexibility of operation
• Fixation of individual responsibility for results
• Focuses only on specific project
• Provides better coordination
Demerits:
• Difficulty in decision making
• Pressure and uncertainty due to some specialist
• Difficult in coordination
• Evaluation of performance of various specialist is difficult
• This is same as project organization
Matrix organization structure
Matrix organization:
• Matrix management is an organizational structure in which some
individuals report to more than one supervisor or leader. The matrix
organization structure is blend of projectized organization and takes
the best of both ways.
• Knowledge, skill and talent of an employee is shared between
functional department and project mgmt. In this organization worker
work under more than one boss. T he first boss will be functional
manager and second boss will be project manager
Merits of matrix organization:
• Better utilization of organizational resources
• It promotes communication
• Permits higher degree of flexibility and adaptability
Demerits: It is against the principle of unity of command
• Quick decision may not be possible
• It will create conflicts
Virtual organization:
• It is temporary network goal oriented enterprise composed of
multiple members (Independent company, suppliers, employees
etc)
• Its goal is to deliver highest quality product at lowest possible
cost in timely manner
• Eg., Amazon, Nike, Dell, Wikipedia
Virtual organization:
• Small sized partners
• Virtual organization has its own identity
• No organizational chart
• Semi-stable organization
• Based on trust
• Dependent on opportunism
• Shared ownership
• Flexibility and quick responsibility
Virtual organization Traditional organization
No physical presence Physical presence required
No face to face communication Face to face communication is
required
Flatter hierarchy Vertical hierarchy
Performance evaluation and work They are actual and simple
control are virtual and difficult
HR practices are not required Well established
Self managed External command and control
Skills and knowledge developed They developed through real
thro the learning process only training and development
programmes
Advantages:
• Lower overhead cost
• Improved employee satisfaction
• Improved employee efficiency
• Access to new market
• Improved employee retention
Cellular organization:
• In biological body, cell mimics how natural
systems within biology work, with individual 'cells' or 'nodes’
• Generally organizations are structured around the units/cells that
complete the entire assembly process are called cellular
organization
• In cellular organization, the entire departments, sections,
workers, subassemblies in teams are inter connected to each
other
• Every team (cell) of workers has responsibility to improve or
maintain the quality and quantity of its products
• Each team is free to recognize itself to improve performance and
product quality
• The cellular type management is both lean and flat structure
• These cells compromise and managed themself
Team structure:
• A structure in which the entire organization is made up of work
group or teams is known as “team structure”
• Team structures are both permanent and temporary in nature as
situation demands
• “We report to each other” is the main concept of team structure
• It leads to boundary less organization in a borderless world
• In team structures, we find cross-functional teams are available to
improve lateral relationship for solving problems, completing
special projects and accomplishing the routine tasks
• A cross-functional team compromise members from different
functional departments such as marketing, finance, HR,
production etc
• In this organization, the employees are more involved and
empowered because of reduced barriers among functional areas
Boundaryless organization structure:
First of all we should know what are problems we are facing in
traditional organization. These are,
– Slow/poor in responding customer requirement
– Failure to get things to done
– Customer/vendor has a hard time dealing with the
organization
– Lack of flexibility to change mission needs/rapidly changing
world
What are the boundaries?
• Vertical and horizontal boundaries
Vertical boundaries:
• Vertical boundary is the boundary between layers towards
upward within an organization
Horizontal boundaries:
• Boundaries which exist between organizational departments
Boundaryless organization:
• Boundaryless organization is defined as an organization structure
that can avoid all the barriers
• Boundaryless organization allows free flow of
ideas/information/resources throughout the organization and into
others
• All the name indicates, a boundaryless organization eliminates
internal boundaries among subsystems and external boundaries
with external environment
• It is combination of team and network structures with the addition
of temporariness
• The key feature of boundaryless organization include knowledge
sharing, absence of hierarchy and bureaucracy
• Creativity, quality, timeliness, increase in speed and flexibility are
the benefits of boundaryless organization
External barriers:
• Boundaries between the organization and the outside world
(Customers, suppliers and other government committees etc)
Geographics barriers:
• Barriers among organization units located in different countries
Inverted Pyramid organizational structure:
• This is an alternative to the traditional chain of command
• This is a structure, which is narrow at the top and wide at the base
• For instance, sales people and sales support staff sit on the top as
the key decision makers for all the issues related to sales and
dealing with the customers
• Since the sales staffs are in touch with customer and aware of the
requirements of the customers, they are given all the freedom to
follow their own best judgement at all levels
Flat organization structure:
• Flat organization also known as horizontal organization
• Few or no levels of intervening management between staff and
managers
• Well-trained workers are more productive when directly involved
in the decision making process
• Not closely supervised by many layers of management
• Flat organization promotes employees involvement through a
decentralized decision making process
• Elevates the level of responsibility of baseline employees and
eliminating layers of middle management
• Comments and feedback reach all personnel involved in decisions
more quickly
• Response to customer feedback becomes more rapid
• Depends upon a much more personal relationship between
workers and managers
Advantages of flat organization:
• More/greater communication between management and workers
• Better team sprit
• Less bureaucracy and easier decision making
• Fewer levels of management which includes benefits such as
lower costs as managers are generally paid more than worker
Disadvantages:
• There may be chance to limit/hinder the growth of the
organization
• Structure limited to small organizations such as partnership, co-
operatives and some private limited companies
• Function of each department/person could be blueered and merge
into the job roles of others
Example for flat organization structure:

• Small/Large independent restaurants
• There is a chance to maintain sales level in all restaurant
• A restaurant can recover from bad sales performance
Lean organization structure:
• Lean management is creation of continuous stream, which
delivers customer values with least waste within the shortest time
• It is a customer focused waste elimination method that makes the
process and there by organization lean
• In a lean organization company, employees always look to
improve their skills and improve the processes.
• Products, service are driven in right amount, to right time and at
right place with right quantity and right conditions
Building blocks of lean management:
It consists of four elements
1. 5S
2. 8 waste
3. Visual management
4. Standardized work
Lean management building:
Benefits of lean management:
Individual concerned
• Develops leadership thinking
• Improved decision making skills
• Ability to use problem solving tools and techniques
• It helps to become individual and manager to shine superior
Organizational concerned:
• Improved quality of product or service
• Reduced process time
• Development of staff skills
• Common language throughout the organization
Applications of lean management:
Types of industry Types Function
• Manufacturing Customer service
• Telecom Production
• Banking and Insurance Administration
• Health Sales and Marketing
• Education Finance
• Hospitals Research and Development
• Airlines Operations
• Construction Training and Development
• Software Human resource Management
• Space research and military IT and Quality
Unit II Motivation and Leadership:
Motivation and Leadership:
Motivation- Definition; Theories: Maslow’s need of Hierarchy,
Herzberg two Factor, Mc Gregor Theory X and theory Y and Alderfer’s
ERG.
Leadership- Definition; Styles and Theories: Trait, Behavioural and
Contingency.
Motivation- Definition:
• The term motivation has been derived from the Latin word
‘Movere’ which means to move or ‘to energize’ or ‘to activate’
• Motivation is the act of stimulating process, which includes
inspiring, energizing the people to work willingly with zeal,
initiative, induce to build self-confidence, satisfaction and an
integrated manner to achieve desired goals. It is a moral boosting
activity
• Motivation is a kind of internal energy which drives a person to
do something in order to achieve something
UNIT I Part A Short Questions
1. What is management?
2. What is the importance/necessity of management?
3. State the functions of management?
4. What is scientific management?
5. Explain briefly about Taylor’s management principles
6. State objectives of management
7. What is Job Analysis?
8. Differentiate centralization and decentralization
9. What is planning?
10. What are the steps followed in planning process?
11. What is decision making?
12. What are the factors to be considered for decision making?
13. What is the importance of organizing?
14. What do you mean about organizational chart?
15. What is cellular organization?
16. What is boundaryless organization?
17. How can we identify boundaryless organizational structure?
UNIT I Part A Short Questions
18. What is inverted pyramid organizational structure and draw its
structure?
19. What is lean management structure?
20. State the applications of lean management.
21. List out the benefits of lean management
UNIT I Part B Questions
1. Discuss in detail about nature and functions of management.
2. How Fayol’s principles will helpful to an effective management and
explain it.
3. How does management of an organization fulfilling social
responsibility?
4. Discuss about types of planning and its process.
5. Explain in detail about nature and characteristics of organizing.
6. Discuss about principles of organization
7. Explain in detail about types of organization and differentiate
traditional and virtual organization.
8. Discuss in detail about different organizational structures.
Motivation
“A great man is one who can make a small man feel great , and
perform great
Theories of motivation:
• Drive theory
• Incentive theory
• Maslow’s theory of hierarchy
• Herzberg two Factor
• Mc Gregor Theory X and theory of Y and
• Alderfer’s ERG.
Drive theory
• It might be described as ‘push theory’ of motivation
• The behaviour of an employee is pushed towards goals
Incentive theory:
• It is a pull theory of motivation
Type Motivation
Push motivation An activity that an individual pushes
themselves to complete
Pull motivation An activity that an individual feels naturally
pulled towards
Examples for push type Staying late and missing dinner with your
motivation family due to complete some research work
An athlete who pushes themselves to break a
personal record
Examples for pull type A customer who sees shoes in a shop
motivation window that they can't resist buying
Incentives can be positive incentives and negative incentives
Positive incentives: Wages, Salaries, Bonus, Vacation etc
Negative incentives: Punishment, Electric shock etc.
Types of motivation:
• Achievement Motivation: It is the drive to pursue and attain
goals. ...
• Affiliation Motivation: It is a drive to relate to people on a social
basis. ...
• Competence Motivation: ...
• Power Motivation: ...
• Attitude Motivation: ...
• Incentive Motivation: ...
• Fear Motivation:
Unit II Motivation and Leadership
1. Achievement Motivation:
• It is the drive to pursue and attain goals. An individual with
achievement motivation wishes to achieve objectives and
advance up on the ladder of success (eg. doing research and
complete within the specified period)
2. Affiliation Motivation:
• It is a drive to relate to people on a social basis. Persons with
affiliation motivation perform work better when they are
complimented for their favorable attitudes and co-operation.
This motivation is of greater use where money cannot be used to
motivate, especially minimum-wage employees and contingent
professionals.
3. Competence (skill/ability) Motivation:
• It is the drive to be good at something, allowing the individual
to perform high quality work. Competence motivated people
seek job mastery, take pride in developing and using their
problem-solving skills and strive to be creative when confronted
with obstacles. They learn from their experience. Specialists,
like heart surgeons would feel motivated if they get chances to
operate upon unique cases.
4. Power motivation:
• It is the drive to influence people and change situations. Power
motivated people create an impact on their organization and
are willing to take risk to do so. Ms Mayawati, Chief Minister
of UP, is power motivated
5.Attitude Motivation:
• Attitude motivation is how people think and feel. It is their self-
confidence, their belief in themselves, and their attitude to life. It is
how they feel about the future and how they react to the past
6. Incentive Motivation:
• It is where a person or a team reaps a reward from an activity. It is
“you do this and you get that”, attitude. It is the type of rewards and
prizes that drive people to work a little harder. Most of the unorganized
job workers get motivated when they are offered more money
7. Fear Motivation:
• A person who act against organization ‘s interest. It is
instantaneous and gets the job done quickly. It is helpful in the
short run. In Indian army, this kind of motivation is very popular
(X theory)
Maslow’s theory of motivation:
• Maslow’s – focusing mainly on motivation of human being
needs
• Maslow’s pyramid concept - Imagine all needs as a pyramid
• After completing each level (need), we can think about next
level.
• A person attempts to satisfy the more basic needs before
directing behaviour toward satisfying upper-level needs
• Lower order needs must be satisfied before a higher order need
begins to control a person’s behaviour
Types of human needs or deficiency needs
1. Physiological – Air, water, food, sleep, shelter etc
2. Safety – living in a safe area, medical insurance, Job security,
Financial reserves
3. Social needs – friendship, belonging to a group, Giving and
receiving love
4. Love and Esteem – self-respect, achievement, attention,
recognition, reputation
What are the things (needs) required to work without
selfishness to
achieve management’s goal, these needs are called deficiency
needs.
• According to Maslow’s theory of hierarchy of motivation, he
focus mainly on motivation of basic human needs or
deficiency needs
• This theory mainly focused on human motivation
• According to Maslow’s theory, a person expects more about his
basic needs (lower level) before starting any kind of further
work (upper level). This is actual behaviour or mentality of
anyone.
• Lower level – Basic needs such as physiological (related to
physical things, human body organs), safety, love and esteem
• Deficiency needs – work without selfishness to achieve
managements goal is called as deficiency needs
Maslow’s hierarchy of human needs:
Esteem – self respect
Self-actualization
Esteem
needs
Love, affection,
and belongingness
needs
Safety needs
Physiological or survival needs

Self actualization;
• This is very important. Because the employee or worker must
satisfy or fulfill his needs initially. This is prime motivation
before motivating anybody
Physiological needs:
• Air
• Water
• Food
• Sleep
• Shelter - living in safe area
So, once physiological needs met to satisfy a person’s needs then the
concerned person will work without fear or emotional harm
Douglas McGregor’s theory X and Y:
• This theory is the modification of Maslow's hierarchy needs and
mainly focused on human motivation
• According to Douglas McGregor's there are two types of theories
which are theory X, theory Y and these are grouped (based on
their behaviour and working environment) as lower and higher
order respectively.
• Theory X assumes that employees are naturally unmotivated and
dislike working - this type of management is called an
authoritarian style of management. So, according to this view, the
management must actively intervene to get good things
• Naturally motivated employees are called as Y theory but better
results are gained by the use of theory Y rather than theory X.
• He suggested that the management could use either set of needs
to motivate employees, but better results would be gained by the
use of Theory Y, rather than theory X
• At any cost, employees work in good manner with prides and
more participation style
Symptoms of authoritarian style (theory X) are,
• Dislike
• No responsibility
• Not obeying the guidelines and work instruction
• To deliver required outcomes the employees are controlled,
forced and threatened
• Supervision is needed at every step with necessary controls
• Highly talented manager and supervisor are needed at every step
to control the workers and a centralized authority is required
• Theory Y is participation style of management (ie decentralized )
• Under this type of category workers will work creatively and
motivated and working with happiness with greater responsibility
Alderfer’s ERG theory:
• American psychologist, introduced ERG theory, E – Existence, R
– Relatedness, G – Growth
• This is simplification of Maslow’s Hierarchy concept exista
• E – it means the need of basic material like physiological health
and safety
• R – it means the need for interpersonal connection, social status
and recognition
• G – it means personal development, including creative and
meaningful work
Difference between ERG theory and Maslow’s theory
• This is theory of human need mainly focusing on basic needs on
three categories
• It suggests that employee can be motivated by needs from more
than one level at the same time. There is not necessarily a strict
progression from one level to other level
• The importance of the needs varies for each person and
circumstances change. Some worker put a higher value on
growth than certain level
• It has a “frustration-regression” element. This means unsatisfied
at one of the higher level and go back to lower level needs again
• In a work context this need is satisfied by money earned in a job
for the purpose of food, shelter, clothing etc
Existence needs
• Providing basic needs and requirements for material existence
such as physiological, safety needs
• In a work context this need is satisfied by money earned in a job
for the purpose of food, shelter, clothing etc
Related needs
• It focus on desire to establish and maintain interpersonal
relationships with friends, co-workers and employers
• Interact with other people, receive public recognition and feel
secure around people
• The amount of time most people spend at work. It means
satisfying others like relationship maintained with friends and
managers etc
Growth needs:
• It means fulfilment of desires about creatively, productively and
complete meaningful task
• All about personal development regarding job, career etc.,
Unit II Part A questions
1. What is motivation?
2. What is Maslow’s theory of motivation?
3. List out different types of human motivational needs
4. What is Alderfer’s ERG theory of motivation?
5. How does Alderfer’s ERG theory of motivation differ from
Maslow’s theory of motivation
Unit II Part B questions
1. Explain briefly about different motivational theories.
2. Explain in detail about McGregor theory X and theory Y and
Alderfer’s ERG theory.
UNIT - III INTRODUCTION TO ORGANIZATIONAL BEHAVIOUR
Organization:
• Organization is the study of structure, functioning and
performance of organization and the behaviour of groups and
individuals within them
Behaviour:
• The way in which an animal or person who behaves in response
to a particular situation or stimulus.
• Organizational behaviour is the study of human interaction
between their behavioural activities and manufacturing tasks
• OB is the study and application of knowledge about how people
act within the organization
• It is human tool for human benefit
Organizational behaviour:
• A set of complex forces affects the nature of organizations
today. It can be classified into four areas. These are,
- People
- Structure
- Technology
- Environment
• People join the organization to accomplish the goals or
objectives. It requires some kind of structure, which are
machinery, gadgets and technology to achieve the organizational
goals. At the same time they influenced by external environment
Nature of organizational behaviour:
• OB is directly concerned with the understanding, predicting, and
controlling of human behaviour in organization. So, the following
are nature of OB.
• Integral part of management
• Field of study
• Inter – disciplinary approach
• Analysis of behaviour
• Goal oriented
Integral part of management:
• This is a part of general management and not the whole management
Field of study:
• This is related to ergonomics and anthropometric studies of
employees at work place
• This study helps in understanding the human behaviour in work
place
• This will help to solve human related problemsd through creative
thinking among manager’s
Inter – disciplinary approach:
This is influenced by several other behavioural sciences and social
sciences such as
• Psychology
• Sociology, and Anthropology
Analysis of behaviour:
This analysis is related to individual, group, and organization
Goal oriented:
• This is goal oriented or action oriented. The major goals of OB
are,
• Understand, Explain, Predict
Human Tool:
• OB is a human tool for human benefit. It helps in understanding
and predicting the human behaviour of individuals
• Human tool provides generalized information to managers to
take action against on human behaviour
Arts & Science:
• OB is both arts and science
• The systematic knowledge about human behaviour is a science
• The application of behavioural knowledge & skills are about art
• It cannot provide specific answer to all organizational problems
Fulfillment of employees need:
• OB seeks to fulfill employees needs and aspirations
• Every employee in the organization want to fulfill his needs
through organizational activities
• It is organization’s responsibility to provide suitable environment
so that people may get need satisfaction & the organization may
attain its objectives
Evolution of OB:
Robert Owen (1800) - Father of personal management
• He emphasize the human needs and refused child labour
• Taught workers to improve working conditions
Andrew Ure (1835):
• Value for human factor in manufacturing
• Recommended to provide welfare facilities to workers
• J.N.TATA in 1986 Instituted a pension fund & 1895 began to pay
accident compensation
Henry Fayol (1916):
• Administrative management, Principles of Governing Behaviour,
and Management quality
Elton Mayo (1920 & 1930):
• Human behavior, Hawthorne's Experiments/Plant
Abraham H. Maslow (1954):
• Need Hierarchy Motivation model
Douglas McGregor (1960):
• Theory X and Theory Y Managerial Style
Henry Herzberg (1960) :
• Managerial Roles : Interpersonal, Informational and Decision
making
Peter Drucker (1909 -2005)
• Father of modern management
• Importance of change
• How to bring best out of people
• Innovation
• Entrepreneurship
Major Contributing Disciplines to the field of organizational
Behavior:
• Psychology: how individuals behave in response to a
stimulus.
Sociology:
• how individuals relate to groups and to each other.
Social Psychology:
• How individuals and organizations perceive conflict, threats and
undergo stress.
Anthropology:
• understanding customs traditions and social mores of
people since the organization is a microcosm of the larger
society.
Challenges for OB:
• Globalization to Respond
• Managing Diversity
• Improving Quality and
Productivity
• Improving Customer Service
• Improving People Skills
• Stimulating Innovation and
Chang e
• Coping with Temporariness
• Working in network
organization
• Helping employees balance
work-life conflicts
• Creating Positive work
environment
• Improving Ethical Behaviour
The Scope Of The Organizational Behaviour:
• Impact of personality on performance, Employee motivation
• Leadership, How to create effective teams and groups
• Study of different organizational structures
• Individual behaviour, attitude and learning
• Perception
• Design and development of effective organization
• Job design
• Impact of culture on organizational behaviour
• Management of change
• Management of conflict and stress
• Organizational development
• Organizational culture
• Transactional analysis
• Group behaviour, power and politics
• Job design
• Study of emotion
Importance of OB:
• OB provides a road map (strategic plan to reach goal or
objectives) to our lives in organizations.
• OB uses scientific research to understand and make
• organization life, as it helps to predict what people will do
under various conditions
• It helps to influence organizational events – to understand and
predict events
• It helps individual understand herself/ himself in better fashion.
• It helps manager to manage human resources effectively.
Eg. Motivation
• It helps organizations for maintaining cordial industrial
relations.
• It is also useful in the field of marketing.
Linkages with other social Sciences:
• Social science applied to disciplines which are committed to the
scientific examination of human behaviour
• The scientific study of human society and social relationships –
social science
• The disciplines directly committed to human behaviour are
Economics, Political science, Sociology, Social psychology and
social anthropology
• Economics is the study of individuals and societies make
decisions about scarce resources (facility/processes/manpower
required to make a final product) to fulfill the requirements
• Economics deals about relnshp with production, distribution,
consumption and ownership
• Scarcity – unlimited demands and needs but limited resources
• Economics is divided into macro and micro economics
• Micro economics – how individuals make economic decisions
• Macro economics – how large groups make economic decisions
on growth, employment etc. i.e. big picture
What is political science?
• Scientific methods of analysis ie state and its organs or study of
the system of laws and institution which constitute govt of whole
society
Socio means – society, logo means science, about a society
Sociology - Study of social life, social change, and the social
causes and consequences of human behavior.
Social psychology - Social psychology is the study of how
individual or group behavior is influenced by the presence and
behavior of others.
Social anthropology - the study of human society and cultures
Approaches and models of organizational behaviour:
Organizational behavioural approach:
• Organizational behaviour is the study of human interaction
between their behavioural activities and manufacturing tasks or
machine
• According to F.W.Taylor – Scientific management. According to
his concept production first and people second
• Organizational behaviour is a scientific approach/method to
simplify the work through reducing the workers to machines
using time study and motion study techniques
• Time study – It is a method of direct observation. It is a work
measurement technique for recording the time of performing a
certain specific job
• This is employed to improve the activities in production
• Motion study – It is the systematic recording and critical
examination of existing and proposed ways of doing work
• Method study - develop and apply easier and effective method

and reducing cost and increase productivity
Types of approaches:
• Hawthorne experiment – Light illumination test – productivity
and light intensity are directly increased
Models:
1. Autocratic model
2. Custodial model
3. Supportive model
4. Collegial model
5. SOBC model
Autocratic model:
• Autocratic - relating to a ruler who has absolute power
• Autocratic leadership is one of the management styles wherein
one person controls all the decisions and takes very little inputs
from other group members. Autocratic leaders make choices or
decisions based on their own beliefs and do not involve others for
their suggestion or advice.
• The custodial model is based around the concept of providing
economic security for employees
• Manager’s can stimulate their employees by offering them
facilities and benefits
• Supportive model – Manager’s support their employees and
encouraging and supporting them to perform a better job
• Collegial, model – Everyone having normal enthusiasm, self

discipline and responsible behaviour towards their tasks
• SOBC model
• S – Stimulus
• O – Organism
• B – Behaviour
• C – Consequence
Unit III Part A questions
1. Explain briefly about organizational behaviour.
2. List out the challenges of organizational behaviour.
3. List the different types of organizational behavioural approach
models
Unit III Part B questions
1. Explain briefly about scope and importance of organizational
behaviour.
2. Explain briefly about organizational behavioural approach
UNIT - IV Perception and Personality
Perception: (Opinion, knowledge, way of understanding,
interpreting something)
• Perception is a process by which individuals, organizes and
interpret their sensory impressions in order to give meaning to
their environment.
• Each individual perceives the same situation differently (different
approach, different angle/views)
• Differs from one person to another, depending on the needs,
values and expectations
Importance of perception:
• Perception plays a very important role in shaping the
personality of an individual
• Perception will act as center theme to know about world around
us and used to interpreting it.
• Perception affects the outcomes of our behaviour because we act
on the basis of what we see and managers should be able to
distinguish b/w a perceived world and the reality
UNIT - IV PERCEPTION AND PERSONALITY
Factors influencing the perceptual process:
• Characteristics of the perceiver
• Characteristics of the setting
Characteristics of the perceiver:
• The perpetual process is influenced by the perceiver’s following
factors,
• Past experience
• Attitude
• Motives
• Interest
• Experience and
• Expectations
Factors in the situation:
• Time
• Work setting
• Social setting
Factors in the perceived:
• Novelty
• Motion
• Sound
• Size
• Background
• Proximity
• Similarity
Characteristics of the setting:
• Physical context
• Social context (surrounding situation) and organizational context
(organizational situation)
Perpetual inputs:
• Objects
• Events
• People
To describe a particular activity these three things are contributing
to get some clarity. So, these things are called as perpetual inputs
Perpetual Mechanism:
• In this mechanism there are three elements are involved. These
are
• Selection of stimuli
• Organization stimuli
• Interpretation of stimuli
Perpetual output:
• Attitudes, Opinions, Feelings and values
Result:
• In this scenario, the result is “BEHAVIOUR”
Perceptual (permanent) Selectivity - ability to interpret
(understanding) or become aware of something work system
Perceptual selectivity is the process by which individuals select certain
stimuli for attention instead of others. Selective attention which is
influenced by both external factors (e.g., physical or dynamic properties
of the object) and personal factors (e.g., response salience)
External factors:
• Intensity
• Size
• Contrast
• Repetition
• Motion
• Novelty
• Familiarity
Intensity:
• According to the intensity principle of attention, the intensity of
external stimuli determines its probability of being perceived
Size:
• A larger size object is more likely to be noticed than a small
object
Example:
Contrast:
• According to the principles of contracts, the stimuli that
contradict most with the background or the expectations of
people receive maximum attention
Example:
Which quite square is very small?
Motion:
• People gives more attention to moving objects than stationery
objects
Repetition:
• The more number of times is repeated, the more it is likely to be
noticed
Novelty (new) and familiarity:
• New objects in familiar situation or familiar objects in new
situation draw the perceiver’s attention
Internal factors:
Learning:
• Learning by itself plays a major role in developing the perpetual
set
• Ahead – front
• Terrain – area
• Hilly - mountain
Motivation:
• The primary motives – hunger and thirst
• The secondary motive – need for power, need for affiliation and
the need for affiliation
Expectations:
• People see what they want
Personality:
• Personality of a person influence perception
Perceptual organization -
• Perceptual organization is concerned with process of organizing
the inputs into identifiable whole objects. A person's perceptual
process organizes the incoming information into meaningful
whole.
• Perceptual organization is the ability to understand a particular
object or process through visual, auditory and sensory
information and use this information effectively to complete a
task
Laws of similarity:
• It means the items are similar tend to be grouped together. So,
most of the people will see vertical columns of circles and
squares.
• From this law similarity, an unskilled worker also can understand
the nature of the product or object or process for performing
further
• Example: Traffic signals, symbols for material handling system in
production line
Law of pragnanz: (Before historical miles stone or event)
• An historical event or programme is explained in simple form or simple
method
• The complicated programme or
process is arranged as simple manner
instead of complex one. Hence, people
won’t consider the complexity but
they can see the series of circles instead
of its complexity.
Law of proximity (nearer):
• Objects near each other tend to be
grouped
• The circles on the left appear to be
grouped in vertical columns, while
those on the right appear to be
grouped in horizontal rows
Law of continuity:
• From the figure, the top branch is
seen as continuing the first segment
of the line. This allows us to see
things as flowing smoothly without
breaking lines up into multiple parts.
Law of closure:
• Objects grouped together
• We ignore the gaps and complete contour lines. In the image
above, there are no triangles or circles, but our mind fill in the
missing information to create familiar shapes and images
Social Perception:
• We try to understand other person’s current feelings, moods and
emotions – how they are feeling right now, often provided by
nonverbal clues involving facial expressions, eye contact, body
posture and movements
• The through which we seek to know and understand other people
Process of social perception:
1. Non-verbal 2. Attribution 3. Impression formation 4. Impression
management
• According to non-verbal communication is concerned the non
verbal feelings are communicated in different ways such as
Facial expressions, Eye contact, Body language, touching
Facial expression:
• There is a proverb ie “Face is the index of mind” according to this
human feelings and emotions are often reflected in the face and
can be read there in specific expressions
• There are six different
basic emotions on the
human face. These are
fear, anger, happiness,
sadness, surprise, and
disgust
Eye contact:
• Eye contact is windows to the soul
• We do often learn much of about others feelings from their eyes
• We interpret a high level of gazing (look steadily or intently) from
another as a sign of liking or friendliness
Body language:
• Our current mood or emotions are often reflected in the position,
posture and movement of our bodies, in which provide us with
useful information about others
• It often reveals others emotional states
Touching:
• The most intimate nonverbal cues,
• The factors to consider in touching, who does the touching, the
nature of physical contact, the context in which it takes place
• Touch can suggest affection, sexual interest, dominance, caring or
even aggression
• When touching is considered acceptable positive reactions often
result.
Attribution:
• It refers to the process of understanding and thinking about
people within social situations, as one tends to try and explain the
behaviour of others
Formation and impression management:
• First impression is the best impression. This is the basic concept
for developing future relationship
Personality in Organizational Behaviour:
• The word personality is derived from a Greek word “persona”
which means “to speak through”. Personality is the combination
of characteristics or qualities that forms a person’s unique
identity.
• Personality in Organizational Behavior of an individual plays an
extremely important role in assessing the behaviour of a person in
an organization.
• Personality can be defined as those inner psychological
characteristics that both determine and reflect how a person think
and act in an environment.
Determinants of personality:
• The determinants of personality can be grouped in five broad
categories:
1. Biological Factors
2. Cultural Factors
3. Family Factors
4. Social Factors
5. Situational Factors
1. Biological factors:
• The study of the biological contributions to personality may be
studied under three heads:
– Heredity
– Brain
– Biofeedback
Heredity:
• It means the passing/transferring of physical or mental
characteristics genetically from one generation to another.
• The following are the characteristics passing from parent to their
children such as
– physical stature
– facial attractiveness
– sex
– Temperament (a person/animals nature characteristics or
permanently affect the behaviour)
– muscle composition
– reflexes
– energy level
– biological rhythms
• The heredity approach argues that the ultimate explanation of an
individual’s personality, which is the molecular structure of the
genes, located in the chromosomes.
Brain
• The second biological approach is to concentrate on the role that
the brain plays in personality.
• The psychologists are unable to prove empirically the
contribution of the human brain in influencing personality.
• Preliminary results from the electrical stimulation of the brain
(ESB) research give an indication that a better understanding of
human personality and behaviour might come from the study of
the brain.
Biofeedback:
• It is like biological functions such as brainwave patterns, gastric
and hormonal secretions, and fluctuations in blood pressure and
skin temperature were beyond conscious (feelings) control.
• An individual learns the internal rhythms of a particular body
process through electronic signals that are feedback from
equipment that is wired to the body.
Physical Features:
• An individual’s external appearance, is biologically determined as
follows,
– Tall or short
– fat or skinny
– black or white
• These will influence the person’s effect on others and this in turn,
will affect the self-concept.
Cultural Factors
• The following factors that influence personality formation. These
are,
– previous condition
– development within the family
– friends and social groups
– other miscellaneous experiences
• The culture largely determines attitudes towards,
– independence
– aggression
– competition
– cooperation and
– a host of other human responses.
Family Factors:
• Family experiences
• social group relationship
• home environment created by the parents
• The parents play an especially important part in the identification
of process, which is important to the person’s early development.
• Identification can be viewed as the similarity of behaviour
including feelings and attitudes between child and model.
• Identification can be looked at as the child’s motives or desires to
be like the model.
• It can be viewed as the process through which the child actually
takes on the attributes of the model.
• From all three perspectives, the identification process is
fundamental to the understanding of personality development.
personality.
The home environment also influences the personality of an
individual. Siblings (brothers and sisters) also contribute to
Social Factors:
• Socialization involves the process by which a person acquires,
from the enormously wide range of behavioural potentialities that
are open to him or her.
• Socialization starts with the initial contact between a mother and
her new infant. After infancy, other members of the immediate
family – father, brothers, sisters and close relatives or friends,
then the social group: peers, school friends and members of the
work group – play influential roles.
Situational Factors:
• Human personality is also influenced by situational factors.
• Knowledge, skill and language are obviously acquired and
represent important modifications of behavior.
An individual’s personality, while generally stable and consistent,
does change in different situations.
Theories of Personality:
• Organizational behaviour theory is a branch of academic study
that aims to figure out how and why people act in certain ways
within different types of professional groups. Its applications are
relatively broad.
• Over time, researchers have developed a number of personality
theories and no theory is complete in itself.
• The theories of personality can be conveniently grouped under
four types:
• 1. Psychoanalytic Theory
• 2. Type Theories
• 3. Trait Theories
• 4. Self-theory
UNIT - IV Part A Questions
1. What is Perception?
2. What are called perpetual inputs?
3. What is perpetual mechanism?
4. Write briefly about the importance of perception.
5. List out the characteristics of perceiver.
UNIT - IV Part B Questions
1. Discuss in detail about characteristics and factors influencing the
perception.
2. How does personality play an important role in organizational
behaviour and discuss about determinant factors considered for
organizational behaviour
3. What are the factors influenced for perpetual process and explain
these factors
4. What are the determinants to be considered for personality
improvements in organizational behaviour
UNIT - V INTERPERSONAL SKILLS
Interpersonal skills:
• Interpersonal skill/communication is the process by which people
exchange information, feelings and meaning through verbal and
no-verbal messages. It is face to face communication
• Communication is the process of passing information (sending)
and understanding (receiving) the same from one person to
another
• Interpersonal skills are the life skills we use every day to
communicate and interact with other people , individually and in
groups
• This is not only how we communicate with others, but also our
confidence and our ability to listen and understand
• Interpersonal skill covers including problem solving, decision
making and personal stress management are also considered.
• People with strong interpersonal skills are usually more
successful in both their professional and personal lives.
• They are perceived as more calm, confident and charismatic,
qualities than others
Interpersonal skills:
• One of the most distinctive aspects of human society is social
beings
• In the business world, the term refers to an employee's ability to
work well with others.
• Interpersonal skills are the qualities and behaviors we exhibit
while interacting with other people.
• Strong interpersonal skills are key indicator of success in a
working environment.
• Interpersonal communication is the process of exchange of
information, ideas and feelings between two or more people
through verbal or non-verbal methods. It is a close association
between individuals who share common interest and goals
• Namely, face-to-face exchange of information, in a form of voice,
facial expressions, body language and gestures. The level of one’s
interpersonal communication skills is measured through the
Importance of interpersonal skills:
• Interpersonal skills are extremely important for creating and
maintaining meaningful personal relationships in the workplace.
• People with good interpersonal communication skills can,
therefore, build healthy relationships with their colleagues and
work much better
Need of interpersonal skills:
• Interpersonal communication skills can help you be productive in
the workplace, build strong and positive relationships with your
colleagues and complete team projects smoothly and effectively.
• Conflict resolution and mediation – working with others to
resolve interpersonal conflict and disagreements in a positive way
• Problem solving and decision-making – working with others to
identify, define and solve problems, which includes making
decisions about the best course of action.
Why interpersonal skills are important?
• To develop and foster strong working relationships with each
other and with their clients, contribute to increase team and
organizational productivity.
• To improve good work environment through team work
• Namely, able to work with others in groups and teams, both
formal and informal –
• To increase leadership skills
• To increase productivity
• To get success
Ways/sources of improving interpersonal skills:
• Client meetings
• Employee performance reviews
• project discussions
• Online conversations
• Smile – Smile is a powerful weapon
Be appreciative:
Pay attention to others:
Practice active listening:
• A good listener will listen not only to what is being said, but to
what is left unsaid or only partially said.
• Listening involves observing body language and observing
inconsistencies between verbal and non verbal messages
Bring people together:
Resolve conflicts amicably (Smooth/polite):
Communicative clearly:
Have a sense of humour:
See it from their side/share others feelings:
Tools in interpersonal skill:
• Interpersonal skill is one of tools to integrate the people and
workers through proper and strong communication. There are
seven ways of interpersonal communication. These are,
• Verbal communication
• Non-verbal communication
• Listening skills
• Negotiation
• Problem solving
• Decision making
• Assertiveness
Verbal communication:
• Verbal communication is asking questions,
• It is how and what words are used to communicate with
individuals ie exchange of information between two or more
people
• It is the ability to communicate through words with the correct
tone and manner
Non-verbal communication:
• Non-verbal communication, which consists of facial expressions,
body language and hand gestures
• This non-verbal communication can be positive as well as
negative
• Positive non-verbal communication is always smile on face and
uses hands further explain
Listening skills:
• The ability to hear attentively and process information correctly
• A very ineffective listener do not pay attention
• Most people can hear, but few can really listen
• Hearing is simply the process of perceiving sounds within the
environment
Negotiation (Decision after discussion):
• Negotiation is the next type of interpersonal skill that is important
to effective business communication
• This term means having the ability to discuss and reach an
agreement in a professional manner.
Problem solving:
• This is very important skill and the most complex part of the
process is to look at each potential solution and carefully analyze
it
• Namely, the ability to find a solution to a problem after discussion
Decision making:
• This is the most complex part of the problem solving method that
it requires careful analysis of the outcome of actions and then
selecting best solution for implementation
Assertiveness (conformation):
• Express yourself with confidence, without fear
Interpersonal , organizational communication barriers:
(organizational communication barrier)
• Communication is the process of passing information (sending)
and understanding (receiving) the same from one person to
another
• It requires a sender, a message and an intended recipient
Barrier:
• An obstacle in a place that prevents us from completing certain
tasks
Communication barrier:
• Communication barrier prevents us from receiving and
understanding the messages, ideas, and thoughts
Types of barrier:
1. Physical barrier
2. Cultural barrier
3. Language barrier
4. Emotional barrier
5. Gender barrier
6. Organizational barrier
7. Perceptual barrier
1. Physical barrier:
• Physical barriers are often due to the nature of the environment
• Physical barriers relate to disturbance internal and external
environment
• Poor lighting
• Staff shortage
• Outdated equipment
• Background noise
• Large working areas physically separated from others
• Poor organizational culture, climate
• Stringent rules
• Complexity
• Inadequate facility/opportunities of growth and improvement
Factors causing physical barrier:
• Defects in media
• Distraction in environment
• Distance
• Ignorance of medium
• Physical disability
How to overcome:
• To be updated with latest technologies
• Choosing a suitable environment
• Removing obstacle
• Making signs easier to read
• Self motivation
2. Cultural barrier:
• From different cultures, people can think differently, they hear
differently, they see differently
• Namely, similar words can mean different things to people from
different cultures, even when they talk the same language
Factors causing cultural barrier:
• Diversified cultural background
• Language and accent (meaning or explanation)
• Behaviour and nature
• Religion
How to overcome?
• Cross culture environment
• Have a thorough knowledge of your counter part’s culture
background
• Conduct effective communication workshop
• Work in groups and run frequent meeting
3. Language barrier:
• Inability to converse in a language that is known by both the
sender and receiver is the greatest barrier to effective
communication
• When a person uses inappropriate words while conversing or
writing , it could lead to misunderstanding between the sender
and a receiver
Factors causing language barrier:
• Multi language
• Region
• Inadequate vocabulary
• Interpreting difference
How to overcome:
• Speak slowly and clearly
• Ask for clarification
• Frequent check for understanding
• Be specific
• Choose your medium of communication effectively
• Be patient
Emotional Barrier:
• The emotional state may influence your capacity to make yourself
understood and hamper (barrier/restriction) your understanding of
others
• Many times, emotional barriers on your part or the part of the
person you are speaking which may inhibit your ability to
communicate on an effective level
Factors causing emotional barrier:
• Fear/insecurity
• Mistrust
• Stress
How to overcome:
• Motivation
• Peer or mentor support
• Practice expressing recognition
Gender barriers:
• Relationships, respect, workplace authority and education are
common ways to men and women are fitted against each other
• Overcoming barriers in gender communication is not simple but
can be made clear with a little patience and understanding
• This barrier arises because men and women have different ways
of thinking and communication
Factors causing gender barriers:
• Fear and shy
• Environment
• Misunderstanding
How to overcome:
• The process of bridging the gap in gender communication
requires the great deal of patience and understanding that only
time and attention will teach
Communication barrier organizational:
• Organizational structure greatly affects the capability of the
employees as far as the communication is concerned
• All the internal factors which stymie or block or prevent or
hinder the process of communication are known as
organizational barriers.
Factors causing organizational barriers:
• Status relationship
• One way flow
• Organization structure
• Rules and regulations
• Too many levels in organization structure
• Status differences
• Gender differences
• Cultural differences
• Prejudices
• The organizational environment
How to overcome:
• Poor structure to the communication
• A weak delivery, and the message is delivered to wrong audience
• A distracting environment, the mixed message, wrong medium to
deliver communication
Perpetual barrier:
• The most common problem is that the people have different
opinion
• The varied perceptions of every individual give rise to a need for
effective communication
• We all have our own preferences, values, attitudes, origins and
life experiences that act as filters on our experiences of people,
events and information
Factors causing perpetual barriers:
• Differences in understanding
• Differences in perception of reality
• Differences in values, attitudes and opinions
How to overcome:
• Start by listening to others
• Clarify if there is confusion
• Stay calm and be positive
Teams and Groups:
Groups:
A collection of people who interact
with one another, accept rights and
obligations as a members and who
share a common identity
Why should form groups in organization?
People form groups to use its numerous benefits. Members of
a group help each other in need, cooperate to reach goals, share
resources, and, last but not least, provide opportunities for social
interaction, companionship, and support
Reasons to form a group:
• For Companionship
– The need for relationship with other people is one of
the strongest and most constant of human drives.
– Relationships give an individual, who earlier felt
lonely and miserable, recognition and his work life
pleasant and comfortable.
Identity:
• We try to understand ourselves through the behaviour
of others towards us.
• If others praise us, we feel we are great. Groups
provide many others who will laugh, praise or admire
us.
• Workers get more identified in small groups and so
small groups tend to enjoy high morale as compared
to large groups.
Security:
• Perhaps, the strongest reason for group formation is the
people’s need for security. Reduce his insecurity; he feels
stronger, has lesser self doubts and is more resistant to
threats
• A person always derives reassurance from interacting with
others and being part of a group. The group protects its
members from the arbitrary policies and orders of the
formal organizations and provides a psychological buffer
between the individual and the organization. This often
explains the concept of unions.
Role in group:
• Task oriented roles
• Maintenance roles
• Individual roles
Five-Stage Model
• Bruce Tuckman, an educational psychologist, identified a five-
ideas for organizational development. These five ideas are called
as five – stage model.
• Forming,
• Storming,
• Norming,
• Performing, and Adjourning.
Forming:
• The forming stage is the first stage in Tuckman’s stages of group
development and is a similar experience to employees first day on
a new job.
• In this phase, most group members are overly polite and are still
extremely excited about what their future may hold. Since the
group dynamics and team roles aren’t yet established, the team
leader will often take charge to direct the individual members.
• During Tuckman’s forming phase, new team members may
discuss team goals, ground rules, and individual roles
The storming stage of group development:
• The storming phase is like when you reach that point with a new
roommate where conflict often arises due to clashing working
styles between team members.
• Some people may start to even doubt the team’s goals discussed
in the earlier stage and will stop performing their necessary jobs
altogether.
Forming group: (formation of group)
Example – starting new project with different members
• Forming group is initial step in any project
• Members skills - different ideas with different approaches
among different unknown members
• Characteristics
• Different relationships
• Different behaviours
• Strength of individuals
The best way to complete the project is interaction between
members by solving above informations.
Storming stage: (potential conflict between members)
• This is the second stage for group development
• members start interaction among themselves in the form of
competing for status, jockeying for relative control, and arguing
for appropriate strategies to be adopted for achieving group’s
goals.
• Because of individual differences, different members may
experience varying degree of tension and anxiety out of this
interaction pattern.
• This conflict usually occurs between individual’s views and
approaches need to be aligned with overall group thinking
Occasionally there are very dominant individuals
Norming:
• In this stage close relationship develop and the group
demonstrates cohesiveness (likeminded things)
• Group norms emerge to guide individual behavior which form
the basis for cooperative feelings and behavior among members.
• After getting final settlement (arrived a final solution from
conflicts)
• This is after the conflict has been resolved from the storming
stage
Performing: (completion of the task.)
• At this stage, the team’s focus on actual activities and tasks
required to complete the project or assigned work
• When group members interact among themselves on the basis of
norms that have emerged in the group, they learn to handle
complex problems that come before the group.
• Functional roles are performed and exchanged as needed, and
tasks are accomplished efficiently.
Adjourning (nearer):
• In the adjourning stage, most of the team’s goals have been
accomplished.
• This is the end stage of group development and there will be
mixed reactions and emotions in regards to the finalization of the
group
• For example, some members may be quite upset whereas others
would be pleased that the project has finalized.
• In the adjourning stage, the group moves their focus from
performing to wrapping (enclose/complete) up tasks.
• As the work load is diminished, individual members may be
reassigned to other teams, and the team disbands.
Characteristics of an effective teams (10 Characteristics):
1. Setting a Clear Direction:
• Organizations are often in a big hurry to get a move on their
projects and deliver them as quickly as possible.
• The battle with the clock often leads to project teams getting
pulled together without deciding on the goals and desired
outcomes first. You just want to get started.
2. Open and Honest Communication:
• Communication is a crucial part of building a sense of belonging
between team members.
• On the other hand, the failure to communicate effectively within
the team is the cause of a multitude of teamwork problems.
• Communicating frequently with freedom is an effective way to
further development of a group.
3. Support for Risk Taking and Change:
• Risk-taking and experimentation in pursuit (aim) of change and
improvement are some of the staples of effective teams.
• For achieving this motto, concerned people should openly
support it and will not always be right (slightly liberal)
4. Defined Roles:
• There are clear expectations about the roles played by each team
member. When action is taken, clear assignments are made,
accepted and carried out. Work is fairly distributed among team
members.
5. Mutual Accountability:
• Effective teams can notice the problems when they arise and start
problem and solving before they escalate.
• They are not happy when problems are arising in the workplace.
It's crucial to define and accept responsibility both as an
individual and as a team.
• A clear overview of everyone's contributions and performances is
essential when problems arise
• When performing towards success your effort will be
accountable for your team's success and celebrate it together.
6. Open Communication:
• Communication is crucial to build a meaningful sense between
workers. Sharing ideas and insights are based on free and
comfortable approach
• The content of the discussion is somewhat relevant.
• Namely, the manner of communication — how freely and
frequently team members communicated — it determines the
team's effectiveness etc.,
7. A common goal:
• One of the ultimate objectives and probably a chief
characteristic of an effective and successful team is setting the
mutual goal above individual agendas and interests.
• Although setting and reaching their own targets is personal
morality, the only way for an organization to function
effectively is to understand and work with a common purpose.
Ultimately, shared goals are the fuel that pushes each team
member's productivity.
8. A Melting Pot of Differing Opinions:
• Although agreeing on a common goal is essential, it shouldn't
come at the cost of suppressing alternative ideas and opinions
• Generally, all groups have conflicts, which are not problems in
and of themselves.
• Conflicts become a problem only when they do not solve or
cause a significant involvement of people it will lead stress and
fatigue.
• Till to get diverse opinions, analyze solution for a particular
problem and it will help your team unearth new perspectives and
ideas.
9. Close Collaboration:
• Working together for a common goal
• Team members have positive attitude and ability to laugh at
themselves
• Be friendly and cooperative with others
• Be open minded and willing to compromise
• Support and encourage others
10. Trust Above Everything:
• Team members rely on each other, understanding their own
strengths and weaknesses
• Members are dependable, performing their duties to the best of
their ability
• All members must function within legal boundaries
Johari Window & Transactional Analysis:
What is Johari window?
• The Johari window model is a simple and useful tool for
illustrating and improving self-awareness, and mutual
understanding between individuals within a group.
• The Johari model can also be used to assess and improve a
group’s relationship with other groups.
• The Johari window model was devised by American
psychologists Joseph Luft and Hurry Ingham in 1955 at
university of California and in Los Angels
• The model was first published in the proceedings of the Western
Training Laboratory in Group Development by UCLA extension
office in 1955, and was later expanded by Joseph Luft
• Luft and Ingham called their Johari Window model ‘Johari’ after
combining their first names, Joe and Harry. Later it is changed as
JoHari
• Today the Johari Window model is especially relevant due to
modern emphasis on, and influence of
• Soft skills
• Behaviour
• Empathy
• Cooperation
• Inter-group development
• Inter-personal development
Use of Johari Model:
• The Johari Window soon became a widely used model for
understanding and training self-awareness, personal
development, improving communications, interpersonal
relationships, group dynamics. Team development and inter-
group relationships
• The main aim of this model is to ‘disclosure/feedback model of
self awareness’ and used as ‘information processing tool’
• This model actually represents the information - feelings,
experience, views, attitudes, skills, intensions, motivation of a
particular person in relation to their group
Areas of Model:
• This window perspectives are called ‘regions’ or areas or
quadrants. Each of these regions contains the information –
feelings, motivation, and other information's about a person.
• These information's are known or unknown by the person or
others in the group
Johari Window four quadrants:
1. What is unknown by the person about him/herself and what is
known by others – blind area, blind self, blindspot
2. What is known by the person about him/herself and what is
unknown by others – hiden area, hidden self, avoided area and
avoided self
• Johari region 1 is also known as the ‘area of free activity’. This is
the information about the person – behaviour, attitude, feelings,
emotion, knowledge, experience, skills, views etc known by the
person and known by the group
• Similarly for unknown person or group conflict
UNIT - V Part A Questions
1. What is interpersonal skill?
2. Why interpersonal skills are important?
3. Define communication?
4. What are the tools used for interpersonal skill?
5. Write short notes on five-stage model
6. What is Johari window transactional analysis?
7. List out the uses of Johari window concept
UNIT - V Part B Questions
1. Discuss in detail about ways/sources of improving interpersonal
skills
2. How communication barrier causing for interpersonal and
organizational skill? Explain briefly.
3. Discuss about factors causing for organizational barriers and discuss
about different communication barrier
4. Explain in detail about ten characteristics for effective team
UNIT – VI Organizational –Conflict, Stress Management, Change and
Development:
Organizational conflict:
• Organizational conflict is difference or disagreement between
two person or group in their idea, opinion, and perception is
called conflict
• Conflict may be defined as friction between individuals due to
differences of opinion, ideas, beliefs, values, needs or objectives
• According to Joe Kelly, “Conflict is defined as opposition or
dispute between persons or groups or ideas
• According to Follett, “Conflict is the appearance of difference,
difference of opinions, and difference of interests”
• A conflict is serious disagreement or argument between two or
more persons
Sources of conflict:
• Organizational change
• Different sets of values
• Contrasting perceptions
• Interdepartmental wrangles
• Personality clashes
Development:
• Threats to status
• Lack of trust and job related issues
• So, conflict is a psychological state of mind when people are in a
state of dilemma whether to do or not to do a thing.
Reasons/Causes of conflicts:
1. Competition for scarce resources
2. Time pressure
3. Unreasonable standards, Policies, Rules or procedures
4. Communications breakdowns
5. Personality clashes
6. Ambiguous or overlapping jurisdictions
7. Unrealized Expectations
8. Competition for resources
9. Task interdependence
10.Status problems
11.Individual traits 14. Inter-relation-dependence of departments
12.Ambiguous objectives and goals 15. Individual differences
Development:
Competition for Scarce Resources:
• The condition of scarcity in the real world
necessitates competition for scarce resources,
and competition occurs "when people strive to meet the criteria
that are being used to determine who gets what". The price
system, or market prices, are one way to allocate scarce
resources. Example sports
Time pressure:
• Time pressure, like deadlines, can increase the performance of an
individual or reduce the performance by triggering destructive
emotional reactions.
• While imposing deadlines, managers must understand and
consider an individual’s capacity and ability to meet the set
targets.
Development:
Unreasonable standards, Policies, Rules or procedures
• When policies, standards, rules, or procedures are unreasonable
and unattainable, they lead to dysfunctional conflicts between
managers and sub-ordinates.
• Managers must frame sound policies, rules and procedures and
correct those policies and procedures that do not help employees
achieve organizational objectives.
Communications breakdowns:
• Communication is a complex process. Barriers to communication
often provoke conflict. When two-way communication is
hampered, it is easy to misunderstand another person or group.
Such misunderstandings have a negative impact on employee
performance.
Personality clashes:
• People have different values and different perceptions of issues.
A production manager, for instance, may be of the opinion that
streamlining the products line and concentrating on a few
products can make the organization more productive.
Development:
• A sales manager may desire a broad product line that will satisfy
diverse customer demands.
• An engineer may like to design the best product regardless of
market demand or cost considerations. It is very difficult to
change one’s personality on the job.
• The practical remedy for serious personality clashes is to separate
the antagonistic (anti or negative) parties by reassigning one or
both to a new job. Showing genuine concern for the ideas,
feelings and values of sub-ordinates helps minimize such
conflicts.
Ambiguous (doubtful/confusion) or overlapping jurisdictions:
• When job boundaries are not clear, they often create competition
for resources and control. A clarification of job boundaries and
jurisdictions of various managers helps in preventing conflicts
from turning into serious problems.
Development:
Unrealized Expectations:
• When expectations are not met, employees feel dissatisfied.
Unrealistic expectations can also result in destructive conflict.
Open and frank communication with employees can help make
people knowledgeable about what they can expect from their
organization.
• Conflicts can arise from other sources as well. For example, a
superior’s autocratic leadership style may cause conflicts.
Differing educational backgrounds of employees may also lead to
conflict.
Competition for scarce resources:
• Conflicts between the parties may develop when the resources
such as budget funds, space, supplies, personnel, office services,
etc., are scarce and therefore more important to the rival .parties.
For example, two departments demand priority to utilise common
office services like data processing or duplicating.
Development:
Task Interdependence:
• When the two parties or two departments are interdependent for
supplies, information, direction or help and there is greater need
to co-ordinate their activities, we may come across conflicts
between them.
• For instance, conflicts may develop between sales and
production, sales and purchase (in the case of wholesale trade),
purchase and production, or between production department and
research and development department.
Status problems:
• Status is the degree of respect and prestige a person is given in
the status hierarchy. When members do not agree about status
hierarchy, they are frustrated and become resentful.
• Each person tries to protect or improve his position and conflicts
may develop due to status discrepancies. Line and staff conflicts
are mainly due to status problems. Inequitable rewards, job
assignments, working conditions and status symbols are other
types of status conflicts.
Development:
Individual Traits:
• When both the parties are dogmatic (with closed minds) and
autocratic, they are bound to disagree and they cannot discover
any common ground to arrive at a mutual agreement.
• Needs and values cherished by persons with initiative and drive
for autonomy will always conflict with an authoritarian or
autocratic leader. When members in an organization have
different social and political values, sooner or later conflicts are
bound to develop.
Inter-relation-dependence of departments:
• Inter-Relation-Dependence of Departments:
• In a business organization various activities / functions are
divided into various departments. There is a specialization work
and there is inter relationship and interdependency of department,
the departmental executives have to interact and communicate
each other on variety of matters for the attainment of
organizational objectives.
Development:
• During this process there are the chances of difference of
opinion, disagree on some matters, clashes friction and all this
ultimately resulted into the conflicts which harmful to the
organization.
Ambiguous Objectives and Goals:
• If the organizational objectives and goals are not clear cut and
easily understandable conflict may arise and obstruct the smooth
flow of work.
Individual Differences:
• Very individual is differ from the other individual. Every
employee possess a different personality traits and characteristic
or features. This ultimately resulted in behaviour, conduct and
attitude of the employees and may give rise to organizational
conflict. Individual differences is one of the main causes of the
conflict.
Development:
Factors influencing organizational conflicts:
1. Unclear Responsibility
2. Interpersonal Relationship
3. Scarcity of Resources
4. Conflict of interest
5. Personal factors
- Needs and wants
- Self-concept
- Past experience
- Health
Environmental factors
- Management culture
- Uncertainty
- State of business
- Pressure from the clients
- Weather
Development:
Types of conflict:
• Individual level conflict
• Intra individual conflict
• Inter – Individual conflict
• Group level conflict (disagreements that exist between two or
more groups)
• Intra (in-between) group conflict - (conflict between two or
more members)
• Inter – group conflict
• Organizational level conflict
• Intra organizational conflict
• Inter – organizational conflict
Development:
How to solve or handling styles of conflict in an organization:
• Talk with the other person. ...
• Focus on behavior and events, not on personalities. ...
• Listen carefully. ...
• Identify points of agreement and disagreement. ...
• Prioritize the areas of conflict. ...
• Develop a plan to work on each conflict. ...
• Follow through on your plan. ...
• Build on your success
Development:
Resolution to solve conflict:
• Provide conflict resolution training
• By helping employees i.e. develop the skills they need to successfully
resolve the conflicts that occur in their day to day life
• This gives people more confidence in their ability to resolve both
personal and professional conflict.
Provide training facility for developing communication skills:
• By providing communication skills training, employees can increase
their ability to communicate effectively with a diverse range of
individuals, and manage the communication
Help staff to develop positive work relationships.
• Give a chance to employees to know/understand each other in
better manner and to feel more comfortable with each other.
• This can be done by providing opportunities for social interaction
on a continuous basis, by giving assignments that put staff into
contact with people they don't normally interact with, and by
providing cross-training opportunities.
Development:
Provide or create activities to improve team building
• We can significantly improve team relationships and
performance through the team development process.
• Such activities provide an opportunity for team members to get
more comfortable with each other, to identify acceptable
behaviors and modes of interaction, and to determine how team
problems and conflicts will be resolved.
Develop strong communication channels
• You can improve communication within a team or organization
by strategically employing informational and problem-solving
meetings, and by utilizing a diverse range of organizational
communication tools.
• Such tools include face-to-face discussions, e-mail, texting,
videoconferences, online meetings, bulletin boards (both physical
and electronic), voice mail and faxes.
Development:
Create an environment that encourages participation.
• This can be done through formal employee involvement
programs such as self-directed work teams, and suggestion
systems that ask for employee input and reward people for their
participation.
• This is especially important because research has shown that
employee involvement programs have a positive impact on both
individual and organizational performance.
Provide conflict mediation training for leaders.
• These is no meaning in hard work for reducing dysfunctional
conflict
• Namely, organizational leaders should develop their conflict
mediation skills so they can help employees resolve the conflicts
that will inevitably arise.
Provide third-party conflict mediation services.
• A manager or supervisor cannot spare much time for mediating
a conflict between employees.
• In that situation, organization can provide a third-party mediator
where the employee can confidentially address a conflict
situation.
Development:
Make sure employees are clear about organizational goals and
priorities
• Generally speaking, conflicts occur because of differences
over facts, goals, methods or values.
• By ensuring that employees, especially the members of a given
work team are on the same page regarding objectives, priorities
and plans
Treat everyone fairly
• This may seem obvious, but many managers are accused of
preferential treatment, and it is incumbent upon organizational
leaders to make sure they are behaving in an egalitarian
(equality) fashion.
Development:
Levels of conflict:
• Individual
• Group
• Organizational
Development:
Development:
Inter-personal conflict:
Between two or more
• Differences in views about what should be done
• Efforts to get more resources
• Differences in orientation to work and time in different parts of an
organization
Intra-personal conflict:
• Occurs within an individual
• Threat to a person’s values
• Feeling of unfair treatment
Inter-group conflict:
• Between two or more groups
Intra-group conflict:
• Conflict among members of a group
• Early stages of group development
• Ways of doing or reaching group’s goals
Development:
Stress management:
What is stress?
• Stress can be defined as our mental, physical, emotional, and
behavioural reactions to any perceived demands or threats
• Stress is wear and tear of our mind and body experience with
continuous change of environment ie S=P>R
• Stress can be defined as any type of change that causes physical,
emotional, or psychological strain.
• Stress can have a big impact on your body
Indications or symptoms of stress:
• Loss of mental concentration
• Absenteeism
• Depression
• Extreme anger
• Family conflict
• Pains related to headache
Causes of stress:
• Job insecurity, High performance demand
• Bad boss, Workplace culture
• Personal or family problems, Technology
Development:
Stress feelings:
• Worry
• Tense
• Tired
• Frightened (fear)
• Depressed
• Anxious
• Anger
Development:
• External
• Internal
External stress:
• Physical environment
• Noise
• Bright light
• Heat
• Confined spaces
• Social Interaction
• Rudeness
• Bossiness
• Aggressiveness by others (rough)
• Bullying (cruel/ insult)
• Organizational – Rules, regulations, Red-tape, Deadlines
Development:
• Rosenfeld defined red tape as ―guidelines, procedures, forms,
and government. interventions that are perceived as excessive,
unwieldy, or pointless in relationship to decision.
• Major life events
• Birth
• Death
• Lost job
• Promotion
• Marital status
• Daily hassles
• Commuting (to change)
• Misplaced keys
• Mechanical breakdowns
Development:
Internal stress:
• Lifestyle choices
– Caffeine (nervus addiction/problem due to coffee drink)
– Lack of sleep
– Overload schedule
• Negative self-talk – pessimistic thinking, self criticism, over
analyzing
• Mind traps (thinking/subconscious works) – unrealistic
expectation, taking thinking s personally, nothing thinking, rigid
thinking)
• Personality traits – (perfectionists/personality trait is a quality or
characteristic that distinguishes the character, action and attitude
of a person, animal or geographical location)
Development:
Types of stress management:
Acute stress: (heavy mental pressure)
• It is our body’s immediate reaction to a new challenge, event, or
demand, and it triggers your fight
• It is happened for short time may be due to work pressure, meeting
deadline pressure or minor accident, over exertion, increased physical
activity, searching something misplaced by you, back pain, stomach
problems, rapid heart beat, body pain, feel something not favourable
Chronic stress:
• It is a prolonged stress that exists for month, week, years long.
• These stress are due to poverty, broken or stressed families and
marriages (diverse)
Organizational change:
Organizational change refers to the actions in which a company or
business alters a major component of its organization, such as its culture,
the underlying technologies or infrastructure it uses to operate, or its
internal processes.
Development:
Organizational change:
• Making things different
• Organizational change is the process by which organization move
from their present state to some desired future state to increase
effectiveness
• Improving the ability of the organization when adopting the
change in its environment
• Its objectives are identify external forces, organization response,
and understand resistance
Characteristics of O.C:
• Change happened from the pressure of both internal and external
forces in the organization.
• Change in any part of the organization will affect the whole
organization and change may be reactive or proactive
• Change may affect people , structure, technology, and other
element of the organization.
• Affects organization’s rate of speed and degree of significance
Development:
Internal forces and External forces:
Internal forces:
• Work force – It means total number of people in a country or
region who are physically able to do a job and are available
for work.
• There are two types of work force, which are democratization
of work and technological empowerment
• Change in managerial personnel
• Management structure
• Avoid developing inertia
• Changes in work climate
• Deficiencies in existing system and employee expectation
External forces:
• Technology change
• Globalization
• Marketing conditions
• Social & political changes
• Work force diversity
Development:
Types of change:
1. Planned Change
2. Unplanned Change
Planned change:
Process of preparing to alter the entire organization or at least a
significant part of it for new goals or new direction.
It is an intentional, goal oriented activity.
Unplanned change:
An unplanned change occurs randomly and spontaneously without
any specific intention on the part of managers or employees of
addressing a problem.
Process of change:
Unfreezing – Change – Refreezing
Unfreezing – to reduce forces
Changes – developing new attitudes, values, and behaviour
Refreezing – reinforce new attitudes, values, and behaviour
Development:
Change Agent:
• It is anyone who has the skill and power to stimulate, facilitate,
and coordinate the change effort.
• Change agents may be either external or internal
Roles of Change Agent:
- Consulting with others and helping
As a consultant, the manager places employees in touch with data
from outside the organization or helping organization members to
generate data from within the organization.
The overall purpose is to help employees find solutions to problems
through analysis of valid data.
- Training
To help organization members derive implications for action from
the present data
to provide organization members with a new set of skills—the
ability to retrieve, translate, and use new data to solve future
problems.
Development:
Research:
– As a researcher, the manager may train organization members in
the skills needed for valid evaluation of the effectiveness of
action plans that have been implemented.
Change agent:
• A Person in organization responsible for managing change
activities.
• It Can be managers or non managers, current employees, newly
hired employees or outside consultants.
Criteria to consider the change:
• Urgency
• Degree of support
• Amount and complexity of change
• Competitive environment
• Knowledge and skills available
• Financial and other resources
Development:
Types of change agent:
Outside pressure type:
• These change agents work to change systems from outside the
organization.
• They are not members of the company they are trying to change
and use various pressure tactics such as mass demonstrations,
civil disobedience, and violence to accomplish their objectives.
People-Change-Technology Type
• The focus of activity for this type of change agent is the
individual.
• The change agent may be concerned with employee morale and
motivation, including absenteeism, turnover, and the quality of
work performed.
• The methods used include job enrichment, goal setting, and
behavior modification.
Development:
Analysis-for-the-Top type:
• Changing the organizational structure so as to improve output and
efficiency.
• The change agent uses operations research, systems analysis,
policy studies, and other forms of analytical approaches to change
the organization's structure or technology.
Organization-Development Type:
• Focus their attention on internal processes such as intergroup
relations, communication, and decision making.
• Their intervention strategy is often called a cultural change
approach, because they thoroughly analyze the culture of the
targeted organization.
Skills of change agent:
Empathy
• This is ability to understand and share the feelings of another.
Empathy leads to improve communication and understanding
between the change agent and organization members.
Development:
Linkage:
• This refers to the extent to which the change agent and
organization members are tied together in collaborative activities.
• The greater the collaborative involvement (the tighter the
linkage), the more likely the change agent will be successful.
Proximity:
• This refers to the physical and psychological closeness of the
change agent and organization members.
• Proximity has relevance to open door policy and the visibility of
the change agent during working hours.
• Structuring:
• This factor refers to the ability of the change agent and
organization members to clearly plan and organize their
activities concerning the change effort.
• A clearly designed change effort is more likely to be
understood and implemented by the employees.
Development:
Openness:
• This characteristic refers to the degree to which the change agent
and organization members are willing to hear, respond to, and be
influenced by one another.
Reward:
• This refers to the nature and variety of potential positive
outcomes of the change effort that might accrue to the change
agent and organization members. Change efforts should be
designed so that the employees are rewarded for changing.
Resistance to Change:
• Effort to block new ways of doing things
• Resistance to change is the act of opposing or struggling with
modifications or transformations that alter the status
• People will resist change when they perceive it as a threat
Development:
• Employee resist to change because it threatens their needs for
• Security
• Social interaction
• Status
• Competence
• Self-esteem
• Blind resistance
• Political resistance
• Ideological resistance
Types of Resistance to Change:
1. Individual Resistance
2. Organizational Resistance
Individual Resistance
• Individual sources of resistance to change reside in basic human
characteristics such as perceptions, personalities & needs.
Development:
Reasons for individual resistance:
Economical reasons:
• Fear of technological unemployment (losing their jobs)
• Fear of demotion (like De-promotion) & thus reduced pay
• Fear of reduced work hours & consequently less pay
• Fear of loss – When a change is implemented some employee
may get fear regarding losing their job and status (position)
• Security – High need of security is needed to employee
otherwise they will resist change because it threatens their feeling
of safety
• Status – Change may pose disturbance existing comforts of status
• Peer pressure – pressure will be given to individual employee to
accept change but refuse to accept it for the sake of their job
Development:
Disruption of inter-personal relationship – Employee should
maintain meaningful interpersonal relationship with others
otherwise they will get misunderstanding or threatening like lose
their job
Social displacement – When introducing change in the name of
new technology it will make disturbance of the existing social
relationships and breaking up of work group
Organizational resistance – Organizational resistance means the
change is resisted at the level of organization itself. Some
organization is so designed (infrastructure, working system) that
resist new ideas, this is true in many organization
Majority of the business firms are also resistance to change
The major reasons for organizational resistance are
• Threat to power
• Organizational structure
• Threat to specialization, sunk cost, resource constants
Development:
Minimizing resistance to change:
Communication – High priority and first strategy for change
- Improves urgency to change
- Reduces uncertainty (fear of unknown)
- Problems (time consuming and cost)
Training – provides new knowledge and skills
- includes coaching and action learning
- Helps break old routines and adopt new roles
- problems potentially time consuming and costly
Employee involvement – increase ownership of change
- help saving face and reducing fear of
unknown
Stress management – when communication, training, and
involvement do not resolve stress
Development:
Potential benefits – more motivation to change
- less fear of unknown
Development:
Causes of resistance:
• Interference with need fulfilment
• Selective perception
• Habit
• Inconvenience or loss of freedom
• Economic implications
• Security in the past
• Fear of the unknown
• Organizational structure
• Limited resources
Development:
Overcome resistance to change:
• Education & communication
• Participation and involvement
• Facilitation and support
• Manipulation and co-operation
• Negotiation and bargaining
Education & communication
• The starting point for successful change is to communicate
effectively the reasons why change is needed. Honest
communication about the issues and proposed action helps people
see the logic of change
• Effective education helps address misconceptions about the
change including misinformation or inaccuracies
Participation and involvement:
• Involvement in a change programme can be an effective way of
bringing “on-board” people who would otherwise resist
Development:
• Participation often leads to commitment, not just compliance
• A common issue in any change programme is just how much
involvement should be permitted. Delays and obstacles need to be
avoided
Reason for organizational resistance:
• Resource constraint – resources are major constraints for many
organizations. The necessary financial, material & human
resources may not be available to the organization to make the
needed changes
• Structural inertia – some organizational structures have in-built
(internal infrastructure) mechanism for resistance to change
• Sunk cost – some organization invest a huge amount of capital in
fixed assets. If an organization wishes to introduce change, then
difficulty arise because of the sunk cost (money cannot recovered
if invested already)
Development:
Lewin’s Three-Step Change Model:
• One of the cornerstone models for understanding organizational
change was developed by Kurt Lewin back in 1940s, and still
holds true today
• His model is known as unfreezing, Change, Refreeze refers to
the three stage process of change he describes
• Kurt Lewin, a physicist as well as social scientist, explained
organizational change using the analogy of changing the shape of
a block of ice
Development:
Development:
Three stage model:
Development:
• Unfreezing is the process which involves finding a method of making it
possible for people to let go of an old pattern that was
counterproductive in some way
• Unfreezing is necessary to overcome the strains of individual resistance
and group conformity
• Unfreezing can be achieved by the use of these three methods
• Increase the driving forces that direct behaviour away from the
existing situation or status quo
• Decrease the restraining forces that negatively affect the movement
from the existing equilibrium
• Find a combination of the two methods listed above
Moving stage:
• This moving stage involves a process of change in thoughts, feelings,
behaviour or all three or more productive
• Once team members have opened up their mind, change can start. The
change process can be dynamic and, if it is to be effective and it will
probably take some time and involve a transition period
Development:
• In order to gain efficiency, people will have to take on new tasks
and responsibilities which entail a learning curve that will at first
slow the organization down
• A change process has to be viewed as an investment, both in
terms of time and the allocation of resources, after the new
organization and processes have been rolled out
Refreezing:
• Stabilizing a change intervention by balancing driving forces
(forces that direct behaviour away from the status)
• Namely, to stabilize the new situation by balancing the driving
force and retaining forces
Development:
Kotter’s Eight-Step Plan for Implementing Change:
1. Establish a sense of urgency
2. Form a coalition
3. Create a new vision
4. Communicate the vision
5. Empower others by removing
6. Create and reward short-term “wins”
7. Consolidate, reassess, and adjust
8. Reinforce the changes
1. Establish a sense of urgency:
• Develop a sense of urgency around the need for change. This
may help you spark the initial motivation to get things moving
• Open an honest and convincing dialogue about what’s happening
in the marketplace and with your competition
-Identify potential threats, and develop scenarios showing
what could happen in the future
Development:
- Examine opportunities that should be, or could be , exploited
- Start honest discussions, and give dynamic and convincing
reasons to get people talking and thinking
2. Form a coalition:
• Bring together a coalition, or team, of influential people whose
power comes from a variety of sources, including job title, status,
expertise, and political importance
• Once formed , your change coalition and it should work as a team
» Then identify the true leaders within your organization
» Ask for an emotional commitment from these key people
» According to change coalition work as team building within the
organization
» Also check your team for weak areas
Development:
3. Create a new vision:
• Create a link between ideas and concepts to get an overall vision
• A clear vision can help everyone understand why organization
insisting you to do something
• Determine the values which are helpful to the change
• Develop a short summary (one or two sentences) about future of
your organization
• Create a strategy to execute the vision
4. Communicate the vision:
• Communicate the vision more frequently and powerful, and
embed it within the organization
• Utilize the vision daily to make decisions and solve the
problems and this vision should be keep in everyone’s mind
• Talk frequently, about your change vision with open minded and
honest address
• Apply the vision in all aspects of operations from training to
performance reviews
Development:
5. Empower others by removing: (Remove obstacle)
• Put in place the structure for change and continually check for
removing the obstacles
• Removing the obstacles can empower the people you need to
execute your vision, it can help you to move the change forward
• Identify or hire and change leaders whose main roles are to
deliver the change for uniform distribution of such people’s
efforts
• Recognize and reward people for happening change. Similarly,
identify those who are resisting the change
• Finally, take quick action to remove barriers (human or
otherwise)
Development:
6. Create and reward short-term “wins”:
• Create short-term targets instead of long-term goal
• Motivate entire staff to get win on every targets to produce
products
• In a project, implement the critical situation in change strongly
without help from any other sources
• Should not consider early targets that are expensive
• Reward the people those who help you to meet the targets
7. Consolidate, reassess, and adjust:
• Each success provides an opportunity to build on what went right
and identify what you can improve
• After every win, analyze what went right and what is required to
improve the change
• Set goals to continue building on the momentum you have
achieved
• Keep ideas fresh by bringing in new change agents and leaders
for your change coalition
Development:
8. Reinforce the changes:
• Make continuous efforts to ensure that the change is seen every
aspects of your organization
• It is also important that your organization leaders continue to
support the change
• Talk about progress every chance you get including the change
ideas and values when hiring and training new staff
• Create plans to replace key leaders of change as they move on.
This will help to ensure that their legacy is not lost or forgotten
Development:
Organizational development:
Organization:
• A social set-up/unit of people that is structured and managed to
meet a need or to pursue collective goals.
Development:
• The systematic use of scientific and technical knowledge to meet
specific objectives or requirements
Organizational Development:
• Organization development (OD) is a systematic means for
planned change that involves the entire organization and is
intended to increase organizational effectiveness”.
Nature and characteristics of OD:
• Focus on culture and process
• Collaboration
• Accomplishment of task
• Human and social sides
• Participation
• System change
Development:
Focus on culture and process
- To follow suitable and positive culture level and its process
favour to the organization
Collaboration
- Heartfelt involvement/collaboration between managers and
employees and members of the organization
Accomplishment of tasks
- Various kinds of teams and groups play important role for
accomplishment of organization development
Human and social sides
- Organization development focuses on both human and social
sides (technological and structural)
Participation
- Participation and involvement of managers and they can play
an important role in organization development process
Development:
System change
- Organization development focuses on total system change.
Because every change is inevitable for the success of an
organization
Objectives of OD:
• To increase the level of inter-personal trust among employees
• To increase employee’s level of satisfaction and commitment
• To confront problems instead of neglecting them
• To manage the problem or conflict effectively
• To increase the cooperation among employees
• To increase the organization problem solving
• To put in place process that will improve the ongoing operation of
the organization on a continuous bsis
Development:
Process of OD:
1. Problem identification
2. Data collection
3. Diagnosis
4. Planning and implementation
5. Evaluation and feedback
Problem identification:
• The first step in OD process involves understanding and potential
identification of the existing and potential problems in the
organization
To know the awareness which includes knowledge about solving
the problem, growth of or effect of problem, human satisfaction,
usage of human resource and organizational effectiveness
Data Collection:
• Having understood the exact problem in this phase, the relevant
data is collected through personal interviews, observations and
questionnaires.
Development:
Diagnosis:
OD efforts begin with diagnosis of the current situation. Usually, it
is not limited to a single problem. Rather a number of factors like
attitudes, assumption, available resources and management practice
are taken into account in this phase.
There are four steps in organizational diagnosis
1. Structural analysis
2. Process analysis
3. Domain analysis
4. Function analysis
Structural analysis:
• Determines how the different parts of the organization are
functioning in terms of laid down goals
Development:
Process analysis:
Process implies the manner in which events take place in a
sequence. It refers to pattern of decision making, communication,
group dynamics and conflict management patterns within
organization to help in the process of attainment of organizational
goals.
Function analysis:
This includes strategic variables, performance variables, results,
achievements and final outcomes.
Domain analysis:
Domain refers to the area of the organization for organizational
diagnosis.
Planning and implementation:
• After diagnosing the problem, the next phase of OD, with the OD
interventions, involves the planning and implementation part of the
change process.
Development:
Evaluation and feedback:
• Any OD activity is incomplete without proper feedback. Feedback is
a process of relaying evaluations to the client group by means of
specific report or interaction
EFFECTIVENESS OF OD:
• Providing opportunities for people to function as human beings
rather than as resources in the productive process.
• Providing opportunities for each organization member, as well as
for the organization itself, to develop to his full potential.
• Seeking to increase the effectiveness of the organization in terms
of all of its goals.
• Attempting to create an environment in which it is possible to
find exciting and challenging work.
Development:
• Providing opportunities for people in organizations to influence
the way in which they relate to work, the organization, and the
environment.
• Treating each human being as a person with a complex set of needs,
all of which are important in his or her work and life.
Organization Interventions (OI)
• Introduction to OI.
• Meaning of OI.
• Assumptions of OI.
• Factors that Helps change agent.
• Examples of interventions.
Introduction of OI:
• They may be introduced by a change agent as part of an
improvement program, or they may be used by the client
following a program to check on the state of the organization's
health, or to effect necessary changes in its own behavior.
Development:
• "Structured activities" mean such diverse procedures like
experiential exercises, questionnaires, attitude surveys,
interviews, relevant group discussions, and even lunchtime
meetings between the change agent and a member of the client
organization.
• Every action that influences an organization's improvement
program in a change agent-client system relationship can be said
to be an intervention.
• There are many possible intervention strategies from which to
choose.
Assumptions of OI:
• The basic building blocks of an organization are groups (teams).
Therefore, the basic units of change are groups, not individuals.
• An always relevant change goal is the reduction of
inappropriate competition between parts of the organization
and the development of a more collaborative condition.
Development:
• Decision making in a healthy organization is located where the
information sources are, rather than in a particular role or level of
hierarchy.
• Organizations, sub-units of organizations, and individuals
continuously manage their affairs against goals. Controls are
interim measurements, not the basis of managerial strategy.
• One goal of a healthy organization is to develop generally open
communication, mutual trust, and confidence between and
across levels.
• People support what they help create. People affected by a change
must be allowed active participation and a sense of ownership
in the planning and conduct of the change
Factors that help for change agent:
• A real need in the client system to change.
• Genuine support from management.
Development:
• Setting a personal example: listening, supporting behavior.
• A sound background in the behavioral sciences.
• A working knowledge of systems theory.
• A belief in man as a rational, self-educating being fully capable of
learning better ways to do things.
Examples of interventions:
• A few examples of interventions include
• Team Building.
• Coaching.
• Large Group Interventions.
• Mentoring.
• Performance Appraisal.
• Downsizing.
• TQM And
• Leadership Development.
UNIT – VI Part A Questions
1. What is Organizational conflict?
2. List down the Sources of conflict.
3. Mention different levels of conflict
4. What are the different types of conflicts?
5. List down the different levels of conflict
6. What is stress?
7. What are the causes of stress?
8. What is change and state its importance?
9. What is called change agent?
10. What is resistance to change?
11. List out the reason for organizational resistance
12. What is Lewin’s three-step change model
13. What is organizational development?
UNIT – VI Part B Questions
1. Discuss in detail about sources of conflict
2. Explain briefly about different
3. What are the factors influenced for organizational conflicts and how
to solve these conflicts.
4. Discuss in detail about different types of stress.
5. Discuss in detail about types of change agent.
6. Discuss briefly about types of resistance.
7. Briefly explain about causes for resistance.
8. Explain in detail about Lewin’s three-step change model.
9. Discuss in detail about Kotter’s eight-step plan for implementing
change
10. Briefly explain objectives, nature and characteristics of
organizational development
11. Explain about organizational developmental process
12. What is organizational intervention? Explain about assumption,
examples and factors to be helpful for change agent
Assignment Questions
Assignment 1 (Any three questions from each assignment)
1. How Fayol’s principles will helpful to an effective management and
explain it.
2. Explain in detail about nature and characteristics of organizing.
3. Discuss in detail about different organizational structures.
4. Explain briefly about different motivational theories.
5. Explain in detail about McGregor theory X and theory Y and
Alderfer’s ERG theory.
Assignment 2:
1. List out the challenges of organizational behaviour.
2. List the different types of organizational behavioural approach
models
3. Explain in detail about Lewin’s three-step change model.
4. Discuss in detail about Kotter’s eight-step plan for implementing
change
5. What are the factors influenced for organizational conflicts and how
to solve these conflicts.
Submission date: 22.07.21

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