ob final notes

8/4/2019 Ob Final Notes

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Part Four – For IIPM Curriculum (Sections SA1 and SA3)

1. Work Stress

2. Decision Making

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1. Work Stress

A. Definitions

B. The Fight or Flight Syndrome

C. The General Adaptation Syndrome (GAS)

D. Stress Related Disease

E. Causes of Stress

F. Stress Management Techniques

G. There are currently at least three different organizational stress management strategies.

H. Personality Types (A and B)

2. Organizational decision-making

A. Three phases in the decision-making process

B. Two important criteria in classifying decisions

C. Further types of managerial decisions (pp. 327-328)

D. Models of decision-making. (pp. 329-331)

E. Some techniques of decision-making in organizations

F. Group decisions

G. Overcoming barriers

H. Ethical decision-making (pp. 343-345)

Part One--Understanding the background of OB

1. Introduction to Organizational Behavior

2. Historical Overview

3. Behavioral Research

I. Introduction to Organizational Behaviour

Organizational Behavior, as a field of study, began in the late 1940s and early 1950s.Organizational behavior concentrates on how people behave--in organizations. OB is

defined as,

"A field of study that investigates the impact of individuals,

groups, and structure on behavior within organizations for the

purpose of applying such knowledge toward improving an

organization's effectiveness."

Theory Base (Where do these ideas and theories come from?)

Organizational Behavior (OB) is not a completely new or isolated discipline of study. It has



borrowed heavily from the social sciences, particularly psychology and sociology.

psychology, sociology, social Psychology, anthropology, and political science have all

contributed to what we now call the field of OB. Check out the contributions that

each of these disciplines has made.

From the field of psychology, for example, we have borrowed theories about personality,learning, motivation, perception, and leadership--key components of OB theory.

From the field of sociology, we have borrowed theories about group behavior and dynamics,

communication, and decision-making.

From social psychology, OB has borrowed expertise on behavior and attitude change; from

anthropology theories about values and culture have led to key areas of focus within OB

today.

Finally, the field of political science has given the OB folks a lot of information about

politics, power, and conflict.

Levels of Analysis

OB has five units or levels of analysis--(l) individual, (2) group, and (3) the organization as a

total system. and (4) change. (5) The external environment influencing the organization is

also important. (Singh, pp. 23-24).

When we look at the individual, we study topics such as perception, values, attitudes,

personality, and motivation. When we look at the group as our focus of analysis, we study

topics such as group dynamics, group decision-making, communication, and leadership.

Finally, when we look at the organization as a whole, we study topics like organizational

development, decision-making and corporate culture.

Some of the concerns organizations have is productivity, absenteeism, job turnover, and job

satisfaction. With regard to attitude, we particularly study job satisfaction (salary,

professional development, relationships with superiors, relationships with colleagues, and the

job itself.)

5 approaches have been used in understanding organizations.

1. The systems approach--nothing is seen in isolation-- but works together as a whole.

2. The socio-technological system (F1 racing metaphor--who wins the race, the man or the

machine?)

3. The democratic approach--thanks to the behavioural school human dignity is valued, and

participation and involvement of employees is encouraged.

4. The contingency approach (the Modern Era)--No universal solutions,

Action = f (situation)

5. The interactional approach--this looks at the cause and effect relationships. No

relationships are seen as one-way.

Beware: the danger of structural solutions in organizational problems may neglect theprocesses and the underlying behavioural dimensions and group dynamics.



These thoughts are taken from Udai Pareek's Understanding Organizational Behaviour (p.

11).

The Organization as a System

OB sees any organization as a complex system of interrelated parts.

Every system has three main components: inputs, transformation process, and outputs.

Inputs include such things as human resources and raw materials.

Transformation Process refers to any and all activities which are included in the production of

the goods or services that the organization produces

Outputs include the results of the transformation process such as the goods or services

produced but also the customer satisfaction, taxes, profits, etc.

All systems operate in a complex environment and their success depends on the successful

interaction with environmental influences such as governmental regulatory agencies,

competing companies, customers, financial institutions, etc.

To better understand the current importance of organizational behavior, let's put it in a

historical context.

Six Competencies to develop for effective and efficient workers

1. Self Competency

2. Communication Competency

3. Diversity Competency

4. Cross-cultural Competency

5. Team Competency

5. Change Competency

Competency is the ability to do something well because of an increasing understanding of the

requirements: (knowledge (head), attitudes (heart) and hands (skills).

II. Historical Overview (Three Eras)

A. What work looked like before 1900.

Prior to the industrial revolution, most societies were engaged in farming or small businesses

such as shopkeeper or shoemaker. There was no history of working in large groups (with the

exception, perhaps, of the military) and people generally lived and worked in the same small

geographic area--probably most of their lives.

With the advent of the industrial revolution, however, towns began to grow around factories

and people began to work under one roof with numerous other people. Supervisors were

needed; management was needed. The tradition of growing food for one's family or workingwhere an end product was easily identified and "owned" was gone. Much has been written



about the resulting alienation from work that people felt with the early factory system; the

nature of work did indeed drastically change.

What were the early factories like? No air conditioning, carpeted floors, or comfortable

surroundings--that's for sure. Yet, employees at that time worked without much complaint in

the US and northern Europe thanks to the dominant Protestant Work Ethic of the time. TheProtestant Work Ethic taught that work was inherently moral and that your reward for hard

work would come to you in Heaven.

Today, there are at least two other work ethics in evidence at work. One, the Worth Ethic,

says that employees, especially professional employees, demand meaningful work. They are

willing to work hard but conditions must be motivating and the work satisfying.

The other, the Leisure Ethic, suggests that employees only work to earn the money to pursue

their real interests -- travel, hobbies, family, for example.

Management developed starting with the Classical School.

B. The Classical School (1880-1930) (Singh, p.7)--Prescriptive thinking.

The Classical school of thought began around 1880 and continued into the 1920s. Its

underlying assumptions were that people did not really want to work but they did want to be

told what to do and how to do it. The theorists of the classical school believed in the concept

of "economic man", i.e., employees were motivated by money. Payment at that

time was made on the "piece rate," i.e., employees got paid per unit produced. There were

two important streams of thought during the Classical period: scientific management and the

administrative theorists.

1. Scientific Management

Scientific managers were efficiency experts. They believed in finding the one best way to do

things. Then, managers had the responsibility of training workers in this one best way.

Efficiency would be improved and productivity would go up.

2. Administrative Theory

At about the same time, Henri Fayol, a French industrialist, was working to develop a

framework for studying management. Known as the Father of Modern Management, Fayolgave us the now-famous "5 functions of managers". Managers, said Fayol, plan, organize,

command, coordinate, and control. Studying these five activities is the way to study

management. This is significant given the fact that there were no management majors and no

business schools at this time. "Management" was a newly developing field.

Today I heard in many of our classes the functions of planning, organizing, directing,

controlling and staffing.

Fayol also gave us the famous "14 principles" of management (Singh p. 8)

Other Important Theorists during the Classical Period



Max Weber (1864-1920). The Father of Modern Sociology, Weber also had an influence on

organizational theory.

Weber introduced the 6 goals of a bureaucratic organization: speed, precision, order,

unambiguity, continuity and predictability. (Gardner, p. 46--back section of your photocopy).

3. Dominant features of the Classical Model (Gardner, p. 48)

I. Control oriented management practices

II. Mechanistic (bureaucratic) organization design

A. A controlling organization

B. A machine view of the organization

1. rigid and highly structured

2. well defined hierarchy of authority

3. power concentrated at the top of the organization

4. division of labor based on functional specialization

5. routine jobs with a short time cycle6. rules defining the rights and duties of employees

7. well-defined work procedures

8. impersonality of interpersonal relationships

9. pre-programmed system

10. closed system

III. Model of the employee--"Economic Man"--rational and economically motivated

C. The Behavioural Era (1930-60) (Singh p. 7)

During the 1930s, the dominant management philosophy changed drastically based on

psychological concepts of man, e.g., man needs to be needed and that the work group is very

important psychologically. Instead of the philosophy of "economic man," the concept of

"social man" emerged. Managers became more concerned about employees as people and

company social events and communication devices such as suggestion boxes.

Dominant features of the Behavioural Model (Gardner p.60)

I. Involvement-oriented management practicesII. Organic organization design

A. Organization is a social system (human community)

B. Involvement-oriented organization

1. flexible structure

2. dynamic tasks, loosely defined

3. consultative communications

4. authority flows from knowledge and expertise, not from position

5. low levels of standardization

6. extensive use of groups/teams

10. open system

III. Model of the employee--"Social Man"A. Human relations movement--social being



B. Human resource movement--growth being (see each with potential)

D. The Modern Era (1960s onward) (Singh p. 9)

Beginning in the early 1950s, the human resources school began to dominate. This school of

thought represented a substantial progression from human relations. While the latter believedfervently that "A happy worker is a productive worker," the human resources advocates knew

that sometimes happy workers are just happy. It takes

more to motivate the increasingly educated and professional workforce.

In 1950, the United States was enjoying unprecedented prosperity. The workforce was

becoming more well-to-do and job opportunities were plentiful. It was not by chance that

employers began to worry about how to keep their most productive employees--motivation

became a topic of great concern. In India in the last 10 years IT companies have had similar

questions--how do we keep our engineers--how to stop attrition--absenteeism--

The basic assumptions of the human resources school of thought are that employees are verycreative and competent, and that much of their talent is largely untapped by their employers.

Employees want meaningful work and they want to contribute. Employees want to participate

in decision making and leadership functions. These beliefs can be seen in their natural

extension in today's self-managed work teams which have taken over many responsibilities

previously left to managers.

With the rise of the human resources school of thought, organizational behavior as a field of

study was a logical step.

Today, it is widely believed that employees are our single greatest resource.

Employees make it happen. Organizational behavior helps us understand why employees

behave as they do and how to channel that behavior into goal-directed behavior which is

designed to achieve organizational and personal goals. This is where our course of study

begins.

In the Modern Era we have contingency theories where each situation warrants a different

solution or process. HR departments today talk about Talent Management.

_________________________________________________________________

Part Two. Individual Processes

1. Understanding and individual's behaviour in an organization

2. Personality

3. Perceptions

4. Attitudes and Values

5. Work Motivation (including Learning and Reinforcement)

2. Personality

"Personality" is the complex of unique and measurable characteristicsthat distinguishes one individual from all others. How does personality



develop? Personality is commonly believed to be a product of both nature

and nurture--that is both heredity and environment play a role. There are

three general classes of factors that play a role in personality: genetic,

environmental, and situational.

Genetic Determinants

Genes are largely responsible for one's physical build and general appearance. In addition,

genes may determine various potentialities in an individual.

An interesting area of current study is the field of split-brain research. The work in this field

is based on the belief that the right and left hemispheres of the brain each control different

abilities and ways of thinking. The table below separates these characteristics into left and

right brain functions, according to the latest research. Scientists hasten to caution, however,

that it is the integrated functioning of both hemispheres of the brain that produce any mental

accomplishments.

Environmental Determinants

The environment is often thought to be the most important determinant of personality. As a

powerful environmental influence for most people, the family is seen as particularly

important in this process. How you are treated by parents and siblings helps determine your

earliest development. As the child gets older and enters the school system, peers

become an important force in personality development. What is expected by others becomes

even more important as the child develops into adolescence.

Experiences and opportunities play a large role in molding a child's personality. What

educational background is provided? What knowledge is learned? What different kinds of

people have been encountered?

Situational Determinants

The general environment within which the child is raised also influences the developing

personality. A child reared in harsh economic times, for example, may reflect a more serious,

stricter personality than one raised in more secure times. Likewise, children reared in a

totalitarian system may be much more guarded in their speech than those

brought up in a democratic society.

A. The "Big Five" Personality Theory (Singh, p, 41)

All five factors have a substantial impact on job behavior and performance.

1. Extraversion (comfort level in interactions--assertive (extrovert) to reserved (introvert)

2. Agreeableness (friendly and cooperative, behaviour towards others)

3. Conscientiousness (dependability, thoroughness, consistent and reliable behaviour--can

trust)



4. Emotional stability (ability to control one's emotions)

5. Openness to experience (well-developed intellect, likes new things)

Any of the above factors can be important for good job performance, with conscientiousness

having the best research support. The combination of openness to experience ("can do") withconscientiousness ("will do") is especially important for job performance. Personality factors

are also important for performance as a team member.

B. Personality Traits (Singh, pp. 48-50)

Understanding several continuums or high or low on the scale can help locate a person in

their preferences and personalities. This can be useful when hiring and promoting. Seven

personality traits include: Type A behavior (relates to stress management)

1. Locus of Control

There are two kinds of people in the world. First, there are "externalizers," people who feel

that other people are responsible for what happens to them. They don't get promoted, for

example, because their boss doesn't like them. These people have an external locus of control.

Secondly, there are "internalizers," people who feel they are responsible for deciding their

own destiny. These people blame themselves if they

don't get promoted; they didn't make it happen. This group are said to have an internal locus

of control.

Depending on your locus of control, you see the world differently, and you behave differently

in the workplace. Externalizers are not career-planners; after all, fate will have its way.

Internalizers are planners and more active in pursuing their career goals.

2. Authoritatianism (how ranked can an organization be)--if inequalities are OK then people

tend to be autocratic and demanding with subordinates--high or low.

3. Dogmatism (One's flexibility or rigidity of personal views)

4. Machiavellianism (willingness to manipulate others for one's own good--high or low)

5. Risk Propensity (how willing are you to take risks--high or low)

6. Self-Concept (Self-Esteem)

Regardless of how personality develops, a person's self-concept is central to understanding

how best to work with that person. Self-concept refers to how people see themselves and how

they think others see them. People who are confident and have a healthy self-esteem are

generally easier to manage and need less direct attention. Those who lack confidence and

think of themselves as less intelligent or competent usually require more patience and

coaching from the manager. Self-concept is also directly related to how open and honest

people are about their thoughts and feelings.

7. Self-monitoring (The degree of sensitivity to others around you)



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With regards to stress, two Personality Types are discussed.

Type A behavior (relates to stress management)

Type A Personality Type (Singh, p. 181-182)

Friedman and Rosenman identified two different personality types and labeled them Type A

and Type B. The main characteristics for people with Type A personality are that they are

impatient, competitive, aggressive, restless and under intense perceived time pressure, always

attempting to accomplish several things at once.

The Type Be personalities do not feel rushed even under pressure and they take things in a

more relaxed manner and enjoy a variety of non-work-oriented activities.

Type A personalities usually face more stress.

C. Four Types of Problem-solving Behaviours

Psychological Types and Cognitive Styles (Myers-Briggs) (Singh pp. 46-48)

Personality also influences a person's cognitive style, or the mental processes used to

perceive and make judgments from information. Jung's analysis of cognitive style became the

basis for the Myers-Briggs Type Indicator.

Gathering information. Sensation-type individuals prefer routine and order, and prefer to

work with established facts. Intuitive-type individuals prefer an overall perspective, or the big

picture, and dislike routine.

Evaluating information. Feeling-type individuals have a need to conform and adapt to the

wishes of others. Thinking-type individuals rely on reason and intellect to deal with

problems; they downplay emotion in problem solving and decision making.

The four cognitive styles. The two dimensions of gathering information and evaluating

information are combined to produce a four-way classification of cognitive (or problem-

solving) styles, as follows: sensation/thinking (ST); intuitive/thinking (IT); sensation/feeling

(SF); intuitive/feeling (IF).

D. Emotional Intelligence (p. 120-121)

How effectively people use their emotions has a major impact on their success. The topmost

layers of the brain govern analytical intelligence. The innermost areas of the brain govern

emotion, such as dealing with rage. Emotional intelligence refers to qualities such as

understanding one's feelings, empathy for others, and the regulation of emotion to enhance

living. Five key factors included in emotional intelligence are as follows:

1. Self-awareness (understanding own feelings)

2. Self-regulation (such as controlling impulsiveness)



3. Motivation (passion for the work and resilience)

4. Empathy (understanding another's situation)

5. Social skill (competency in managing relationships)

3. Perception

A. What is Perception?

A person's mental image of the world. What you think IS (as opposed to "should be").

Why should managers study perception?

Managers have to take many decisions. A decision-making process requires collection and

analysis of data. Sometimes decisions are based on logical analysis of data, but often it has

been found that they are based on common sense and observation. (Singh, p. 58)

This may lead to wrong assumptions.

B. The Perceptual Process (SOI leading to R--Selection then Organization leading to

interpretation and then response--action)Selection of stimuli, organization of stimuli, interpretation of stimuli which leads to a

response (action.)

Two key elements: attention and organization.

Perception is the way a person interprets reality. Individual perception may vary greatly. One

employee thinks his supervisor is a fair, encouraging leader; another employee thinks the

same supervisor is demanding and overbearing. Why do people see things so differently?

How is perception formed? The key to perception can be summed up in

three P's: physical attributes, psychological characteristics and past

experience.

The Three P's

1. Physical attributes (external factors) such as size, race, body shape, and appearance

influence how people perceive the world and themselves. When people first meet others they

cannot help noticing certain highly visible and distinctive characteristics: sex, race, and

physical appearance.

2. Psychological characteristics (internal factors) also have a very large effect on howwe see the world. Values and attitudes are psychological characteristics that everyone

possesses. So, too, are the various defense mechanisms we all use to cope with the world

around us. Each has the ability to distort the user's perception.

3. We code and decode messages and events using the "Code of Past Experience" locked

deep within ourselves. We carry in our memories every event and corresponding emotional

response that we have experienced. For example, if our employees have found through hard

experience that supervisors do not want any input from them, we will find it difficult to tell

them differently. Rather, we will have to use patience and repetitive attempts to change the

coding processes of the past.

C. Factors Influencing Perception--and some reasons why perception leads to wrong



decisions (pp. 62-66)

There are many factors influencing perception, but we will look at a few of them here. These

include: closure, selective perception, halo effect, stereotyping, and framing effect.

1. Closure

Closure refers to our tendency to fill in the blanks. Thus, if you

see an abstract painting; you might try to figure out what it is in

concrete terms. Our mind automatically "fills in" the missing parts

according to our past experience. This causes us to jump to conclusions

when we only have half the picture or half the facts.

2. Selective Perception

Selective perception is the personal filtering of what we see and hear so as to suit our ownneeds. Much of this process is psychological and often unconscious. Have you ever been

accused of only hearing what you want to hear? In fact, that is quite true. We simply are

bombarded with too much stimuli every day to pay equal attention to everything so we pick

and choose according to our own needs.

3. Halo Effect

The halo effect has to do with judging or evaluating a person, place, or event by a single trait

or experience. This overall impression can be good or bad but will prejudice our further

involvement with the stimulus. Each of us can remember making a snap judgment about

someone based on a first impression. Often we try to perceive further interaction

with the individual based on this first impression, regardless of whether it was positive or

negative. If this impression is incorrect, it often takes considerable pressure to concede this

fact and break the halo effect.

Examples are plentiful in business. A plush office convinces us someone is an important

person in the organization and must be taken seriously. A sloppily typed letter by our new

secretary proves to us the individual is going to be an unsatisfactory employee. The halo

effect often shows up most conspicuously on performance appraisals where our

overall good or bad opinion of the workers interferes with our ability to evaluate weaknessesor strengths accurately on individual job functions.

4. Stereotyping

Stereotyping is a process whereby we categorize people or events according to similarities

that we perceive them as having. Some people, for example, feel that older workers cannot

keep up to the pace of work. Others think women aren't as serious about their careers as men.

Stereotypes annoy people at best and seriously alter our perception.

5. Framing Effect



When a person was described as warm or cold and people (strangers) were asked to rank

characteristics of that person from 1 to 7 with 7 being "very" and 1 "not at all". The person

described as warm was rated higher on generous, happy, popular, and sociable.

D. The Attribution Theory (Singh, pp. 66-69)--The explanations people give for cause andeffect.

Attribution refers to how people in situations like the workplace construct explanations of

other people's behavior. People are not exactly rocket scientists: these explanations can be

highly simplified and strongly biased. What is interesting and helpful is that people's biases

tend to be systematic and predictable.

For example, people tend to overestimate personal/individual causes (abilities, motives,

morals) and tend to underestimate situational causes, like nature of the job, compensation

system, the economy, luck, and the percentage of the population who are young.

Another kind of bias occurs with the nature of a person's participation in a situation, and how

it comes out. For example, if a student gets high marks on a test, the student thinks it was

because he or she is smart. But if they get low marks, it's because the teacher is not qualified,or the book is a poor choice, or some other reason. In general, people seem to think this way:

• if my outcome is good (I become president of company), I'm responsible for it (my hard

work, my brains)

• if my outcome is bad (I'm in-between jobs), it's society's fault: I'm just a victim

Another basic principle is that people tend to attribute motives to people's behavior. So when

people don't behave as you expect them to, you think they are doing it on purpose (usually,

just to annoy you). In other words, people tend to assume a common understanding of a

situation, but different motives and interests. They also tend to assume that other people do

everything consciously: no oversight is truly an oversight; no inconsiderate action was just

thoughtless.

Attribution theory tries to find the cause of a specific behaviour. This may be for internal

causes (personality traits, emotions, motives, or ability). This may also be for external causes

(other people, the situation, or chance).

Which is it?

One looks at three aspects of the behaviour

1. Consistency. Is this behaviour regular? Does he often come late? If so, this reflects high

consistency and therefore there is probably an internal cause.

2. Distinctiveness. The person acts differently in different situations. This variety of

behaviour, high distinctiveness, is probably due to the surrounding circumstances which is anexternal cause.

3.Consensus. Most people in a given situation will do this sort of behaviour. High consensus

is often due to external behaviour.

Knowing the source of this behaviour is a beginning point to address problems that need

attention.

E. Know yourself better, and make better informed decisions (Singh, p. 74)

Knowing yourself and understanding your own motives can remove your biases and help you

avoid making wrong decisions because of skewed perceptions. One tool is the Johari Window(named after Joe + Harry).



In this model four windows into your life are available: open (known to you and co-workers),

blind (you do not know, but others know), hidden (known to you, and unknown to others),

and unknown (unknown areas of your values and beliefs to both you and others).

Sometimes co-workers can help you where you have blind areas. If information is known to

both, then preemptive choices on both parties can make the organization run more smoothly.

4. Attitudes and Values

A. Definitions

Values and attitudes are a basic part of human behavior. Values are our gut level beliefs

about what is right or wrong, good or bad, normal or abnormal. We learn our basic values at a

very young age from everyone and everything around us. By the time we are twenty, we havepretty well developed our value system which we will use in relating to

the world from then on.

During the first few years, children are value programmed mostly by their parents and

immediate families. Media, especially TV, are important value programmers also. As the

child enters school, the latter becomes a major source of values. In the teenage years, parents

and family become secondary to peers as the primary source of values. Values are relatively

stable over time. After the value system has been established, only a truly significant

emotional event is likely to cause these values to

change.

In OB we are interested in the attitudes we have about work--especially job satisfaction, and

organizational commitment. (Singh, pp. 117-123)

An important thing to realize about attitudes is that all humans struggle for consistency

among their attitudes and between their attitudes and behavior. When you are in a situation

which demands that you behave against your beliefs and attitudes you suffer from what

Festinger identified as "Cognitive Dissonance". (Singh, p. 112)

Cognitive dissonance refers to an uneasy feeling when beliefs and behavior are in conflict.

Individuals will struggle to reorient either their attitudes or behavior in order tobring them back into harmony.

B. Theories of Values (Singh pp. 126-127)

Allport believes there are six types of values: theoretical, economic, aesthetic, social,

political, and religious. The combination of these values and their relative strength,

can predict one's success in certain occupations. People attracted to the same occupations

tend to show the same value profiles.

While people hold only a limited number of core values, they may have thousands of

attitudes. Attitudes are how we feel about something or somebody--either positive ornegative. Attitudes have three components:



1.Cognitive Component: What you believe to be true.

Example: I believe higher education is very important.

2. Affective Component: What you feel about the belief.

Example: I disapprove of parents who discourage their children from going to

college.

3. Behavioral Component: What does that feeling lead you to do.

Example: I argue with Mr. Saxena because he is trying to lead

his son to take job now instead of going to college.

C. Job Satisfaction

Five requirements: salary, professional development, good relations with your boss (vertical),

good relations with your co-workers (horizontal) and the job (and its environment) itself.

Job satisfaction is also partially determined by mentally challenging work, fair rewards, and

supportive working conditions. The job-personality fit is also very important.

Job satisfaction is an elusive variable. We try to measure it often using attitude surveys. Some

research suggests that productivity leads to job satisfaction. Other research says just the

opposite--that job satisfaction leads to productivity.

Even as the workforce globally is getting increasingly professional (an item often associated

with increased job satisfaction), worldwide the workforce is less satisfied today than in the

past because of turbulent times of downsizing and destruction of

long-standing cultures in some MNCs which can lead to increasing anxiety among

workers as to the security of their jobs. A feeling of security is a basic tenet of a motivated

workforce.

D. Organizational Committment

While the relationship between productivity and job satisfaction is

not clear, studies show that job satisfaction and absenteeism are at least

moderately negatively correlated. In other words, as job satisfaction

goes up, absenteeism goes down. There is even a stronger negativecorrelation between satisfaction and turnover. Logically, if we like our

job, we are likely to stay there.

We discussed five behaviours to identify which indicate commitment to the organization

1. Identification with the organization

2. Involvement in the organization

3. Adoping the values, goals and beliefs of the organization

4. A willingness to work hard

5. A desire to stay



5. Work Motivation (including Learning and Reinforcement)

A. Definitions and Background

Motivation is one of the most important topics you will study in organizational behavior.Everyone wants to know how to motivate employees. Motivate comes from the Latin verb,

movere, which means to cause movement. Basically, we want to cause our employees to

move toward some objective.

Psychologically, motivation deals with employees' needs. Unsatisfied needs cause a tension

which leads to a drive to satisfy the need. The drive leads to search behavior and an

examination of alternative ways of potentially satisfying the need. The need is either

satisfied or frustrated in which case the search behavior continues.

A good starting point in our study of motivation is an understanding of Theory X and Theory

Y popularized by Douglas McGregor.

According to the Theory X model, managers believed that workers disliked work and were

basically lazy. Therefore, they need to be told what to do and how by autocratic managers.

This theory explains choices in the Scientific Era where prescriptive instructions were given

for expected rational behaviour by employees in organizations.

Y is the contrast to this theory. According to Theory Y, workers enjoy work and especially

crave involvement and meaningful work. Workers want responsibility and thus the correct

way to lead is through delegation. This reflects more the sentiments in the Behavioural Era.

While Theory Y is widely believed to be the better operation system, please note that not all

workers want responsibility and autonomy. This dichotomy between autocratic and

participative leadership, however, permeates the motivation and leadership literature.

B. Content Theories (What things motivate?) and Process Theories (How are people

motivated?)

As for the other motivational theories, they can best be grouped under the categories content

and process theories of motivation. Content theories of motivation answer the question,

"What things motivate people?" Content theories look for external or extrinsic

motivators.

Process theories of motivation answer the question, "How are people motivated?" Process

theories look at internal or intrinsic processes of motivation. What is the cognitive process by

which people become motivated.

C. Content Theories of Motivation (Maslow, Herzberg, McClelland)

1. Maslow's Hierarchy of Needs (A Content Theory) (Singh, pp. 143-144)



Abraham Maslow (in the 1950s) was a practicing psychologist who noted through his

experience that people seemed to have certain categories of needs. In fact, he defined five

specific levels of needs and said that they were organized in a hierarchy. The five needs are

as follows:

Self-ActualizationSelf-Esteem

Social

Security

Physical

Starting with physical needs, people are motivated by anything that assures them of food and

shelter.

Once these needs are satisfied, they "move up" the hierarchy and become motivated by

security issues. At the organizational level, for example, the health benefits or pension planmay be motivational at this level.

Once satisfied, the person again moves up the hierarchy to the "social needs" level where

good interpersonal relations are motivational. Many of our social needs to

belong and feel needed are played out at work where we spend so much of our time.

When these needs are met, the individual becomes motivated by self-esteem which considers

such things as recognition, opportunity for growth and autonomy.

At the top of the hierarchy, often depicted as a pyramid or ladder, is self-actualization. At this

level, the individual is free from all mundane concerns and may pursue their dreams, become

all that they can be. It is doubtful that many of us ever reach this level.

Maslow's theory is the most popular motivational theory ever. It is easy to understand but

lacks either a research base or confirmation by other studies. Yet, Maslow's theory does give

us two important things:

1. It tells us that not all people are motivated by the same thing.

2. It tells us that the same person is not always motivated by the same thing since their needs

change over time

These two insights are extremely important to managers.

2. Herzberg's Two Factor Theory--Maintenance and Motivator (A content theory)

(Singh, p. 145)

One factor Herzberg called hygiene or maintenance factors. These were things that made

people very unhappy when they weren't taken care of but did not motivate them when they

were. In other words, hygiene factors, or maintenance factors, prevented dissatisfaction but

did not lead to motivation. Hygiene factors include a safe working environment, salary, andsatisfactory working relationships with peers and superiors. Note: The placement of money as



a hygiene factor is particularly controversial

since many feel that money is still a good basic motivator.

The other factor, Herzberg called motivators. These were the things that, when present, cause

motivation, but when absent, cause a lack of motivation--not dissatisfaction. Motivators were

such things as the work itself, autonomy, authority, and responsibility.

Note that Herzberg's motivators are roughly equivalent to Maslow's "higher order

needs" of self-esteem and self-actualization.

Herzberg's hygiene factors are roughly equivalent to Maslow's "lower order needs" of

physical, security, and social.

Herzberg went on to describe a process he calls "job enrichment" which entails making sure

the hygiene factors are taken care of and then building motivators into the job.

3. McClelland's Achievement Theory (A content theory) (Singh pp. 146-148)

The Need for Power (control), Achievement (things) and Affiliation (social)

David McClelland looked at motivation from another perspective. McClelland also was a

psychologist and he devoted much of his time to studying the need for achievement. He felt

that people had either a high need for achievement, affiliation, or power and that this

motivation would result in different behaviors in the workplace.

Specifically, McClelland felt that high achievers only made up 10-15% of the population, but

that these people were the real high producers in organizations. He found that high achievers

had the following characteristics:

1. They love moderate challenge (They don't like to fail so high challenge or risk is out! Low

risk or challenge is boring!)

2. They seek concrete feedback. They want to know how they are doing and they want to

know that you, the supervisor, know how they are doing also.

3. High achievers want to take personal responsibility for the work. They will be very

productive, but they are not necessarily good managers.

McClelland felt that high achievement was largely learned in childhood as we modeled

ourselves after high-achieving adults. He also felt that managers could have influence over

encouraging high achievement by urging people to have goals, face challenges, take risks,

enjoy personal responsibility, etc.

D. Process Theories of Motivation (Vroom, Adam, Skinner--note this comes under our

section of Learning and Reinforcement)

1. Vroom's Expectancy Theory (Singh, pp. 150-153)

Vroom took a different approach to studying motivation. He looked at the internal, cognitive



processes that people go through in order to satisfy needs. Basically, Vroom explains that the

behavior we decide to display depends upon what we expect to achieve from that behavior.

What is the ROI--Return on Investment?

According to the Expectancy Theory model, the individual effort you are motivated to exert

depends on your judgment of how well you can perform (first level) and what you think thatperformance will earn you (second level outcome. To be more specific:

"Expectancy" is the probability that the level of effort you put in will achieve for you the

desired level of performance. E.g., if you work hard, you have an 80% expectancy that you

will achieve high productivity. Expectancy is a number between 0 and 1.

"Instrumentality" is the probability that performance (first-level) will lead to the desired

second level outcome or reward. Instrumentality is also measured on a scale of 0 to 1.

"Valence" is the value of the reward or how much you want or do not want the second level

outcome. Valence can be measured from -1 to +1. Thus, if a promotion brings with it a moveto another city, it may either be very attractive to you (+1) or totally unacceptable (-1). More

likely, it is somewhere in between.

Expectancy theory seems quite logical. We have just so much time and we have to decide

where we can best put our effort, in other words, where is the biggest payoff?

Therefore, we turn our attention to the things that are most important to us and often to those

things we figure we can control--in other words we have a high expectancy of getting results!

2. Adam's Equity Theory--Comparisons with others (Singh, p.154)

Adams says that motivation comes and goes for the individual employee at least in part by his

or her perception of equity in the workplace. Adams says the individual compares his or her

inputs (skills, experience, time on job, for example) and outputs (job title, benefits, salary,

responsibility, for example) with the inputs and outputs of a "referent" person (whom you are

comparing yourself with.)

Depending upon that comparison, the individual concludes that his or her own input/output

ratio is equitable or inequitable.

When inequity is perceived the employee will feel ill at ease and probably try one of two

things. First, he may reduce his own inputs ("I'm not working any more overtime!). Secondly,

she may increase her own outputs ("I'm taking more of the credit from now on!)

Inequity may arise from faulty perception in which case the manager needs to correct the

inaccuracy. If, however, true inequity exists, the manager needs to examine the situation

carefully and find a remedy.

3. Learning and Reinforcement Theory (Rewards and punishments) (Singh pp. 83-85)

Reinforcement theory is based on concepts of how people learn. You remember hearing



about Pavlov's dogs where dogs were taught to salivate at the ringing of a bell because they

connected the bell with being fed. That type of "learning" is called classical conditioning--it

is a trained stimulus-response reaction.

A more appropriate model to describe human behavior is "operant conditioning". In this case

the expectation of a consequence determines a person's behavior.

One of the most famous names in this area is B.F. Skinner who made the concept of

"behavior modification" famous. Behavior modification depends upon various types of

reinforcement techniques with the basic belief that you tend to get the behavior you reinforce.

There are four basic reinforcement techniques as follows: (Singh, pp. 91-95)

1. Positive Reinforcement: A technique used to increase the incidence of a desired behavior.

Telling someone they are doing a good job or giving someone a raise are examples of

positive reinforcement.

2. Negative Reinforcement. Also designed to increase the incidence of a desired behavior,

negative reinforcement is a bit trickier. If someone walks into my class late and I jokingly

chide him or her by saying, "Good afternoon, Rahul, nice that you could make it..." the

student will likely be embarrassed into coming on time next time. On

the other hand, the student may love the extra attention and continue to come late.

3. Punishment: Designed to decrease the incidence of an undesired behavior, punishment

does not fit in well with today's values and may breed frustration and resentment. Examples

of punishment include scolding someone in front of his or her peers or sending someone

home from work. Naturally, there are some incidents which do

deserve immediate punishment such as violence in the workplace.

4. Extinction: This strategy also serves to decrease the incidence of an undesired behavior.

Extinction entails simply ignoring a given behavior and hoping it will disappear. It is often an

appropriate response for a minor behavioral problem.

4. Applying motivation theory among employees in an organization.

The use of goal setting and empowerment. SMART goals are specific, measurable,

achievable, relevant, and time-bound.

1. Goal Setting

There has been much research on the usefulness of concrete goals in motivating employees to

higher productivity. Studies conclude that employees with challenging, concrete, measurable

goals tend to be more productive than those who do not have these goals. Employees also

need feedback on how they are doing as they try to attain their goals.

The concept of "self-efficacy" also enters here. Self-efficacy refers to one's perception that he

or she is able to do a given task. If a person has concrete goals that he or she accepts, believesthey have the ability to do the job, and are receiving adequate feedback from their supervisor



or through self-monitoring techniques, then you are likely to have a

higher degree of motivation than when these variables are not present.

2. Empowerment

Empowerment is a key managerial concept in today's workplace. Gone are the days when the

autocratic supervisor makes the rules and tells everyone how to do things. For one thing, we

have realized that such a system does not make the best use of our valuable human resources.

The concept of empowerment delegates much of the traditional management authority to the

line employees who are doing the production or service work.

Can you see you empowerment fits right in with Herzberg's job enrichment theory.

Empowerment provides the second of the two factors, "Motivators". High achievers love the

additional challenge and participation. But, does every worker want to be empowered and

shoulder more decision-making responsibility? In reality, probably not.

5. Part of Learning and Reinforcement was Kolb's model of Participative Learning

Concrete Actions lead to Reflection leading to Abstract Theory leading to Experimentation

leading to new Concrete Actions

Diverger...Assimilator...Converger...Accomodator

Managers must think on their feet and make decisions all the time.

6. Recall the Mintzberg's Roles of a manager in light of the task and relational work loads an

organization will put on you.

Interpersonal 1. Figurehead 2. Leader (in the organization) 3.Liaison (outside the

organization.

Informational 4. Monitor 5. Disseminator of information in the organization

6. Spokesman of information outside the organization

Decisional 7.Entrepreneurial, 8. Disturbance Handler, 9. Resource Allocator, Negotiator

Here Mintzberg has expanded Fayols earlier model of P-O-D-(S)-C (Planning, Organizing,

Directing, Staffing and Correcting)

Part Three--For sections using the University Syllabus (SB1, SC4 only)

1. Communication and relationships

2. Group Dynamics3. Leadership



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1. Communication and relationships

Many experts today contend that effective management is synonymous with effective

communication. These notes will cover the following topics: definition of communication,directions of organizational communications, informal versus formal communication,

nonverbal behavior, and common barriers to communications.

A. Communication defined

Communication is "the transfer of meaning from sender to receiver." Here is a simple model

of how communication occurs:

Sender encodes a message, message is transferred (variety of channels can be used), message

is received, receiver decodes the message, "understanding" occurs, and feedback is given.This whole exchange is surrounded by "noise".

Note from the model that the message is "encoded" by the sender and "decoded" by the

receiver, thus much room for misinterpretation exists. We encode/decode or put into words

according to our own past experience and assumptions. Thus, if I tell you to get this report to

me as quickly as possible, I may mean I need it now, and you may think that next week is

OK.

"Understanding" is put into quotes because what the sender wants you to understand may be

far different than what you actually get out of the message.

Also, all communication occurs in the midst of "noise" which is defined here as anything

which interferes with the communication process, thus someone walking by your office door

and diverting your attention from the conversation you are having is "noise."

B. Directions of Organizational Communication

Organizational communication can take place in one of four directions: upward, downward,

horizontal, or diagonal.

Downward communication is the most traditional. In scientific management days, it was the

only sanctioned communication in most organizations. Supervisors gave directions to

employees and there was no need for upward response. Downward communication channels

are still the way employees find out about policies and procedures with which they are not

directly involved.

Upward communication became popular with the advent of human relations. This channel is

used to find out what employees are thinking and to give them routine ways to have input.

Meetings and suggestion boxes are two forms of upward communication channels.

Horizontal or lateral communications take place between people at the same level in theorganization. A work group engages in horizontal communications as do department heads



when they have their weekly meeting.

Diagonal communications take place between people at different levels in the organization

and also in different departments. Perhaps an employee in one department calls the H.R.

director to ask about a transfer--an example of diagonal communication.

C. Informal vs. Formal Communication

Every organization has a formal and informal system. The formal system is established by the

organization and illustrated by the organization chart. Formal communications follow

established paths and are largely written and slow.

Informal communications are often referred to as the grapevine. The organizational grapevine

has gotten a bad rap over the years. It is not as much a rumor mill as you may have heard.

Studies show that 75% or more of the information communicated in the grapevine is factual!

The informal communication system is controlled by employees, but effective managers aretuned in so that they know what people are talking about.

Unlike the formal system, the informal system is largely verbal, not written, and information

travels fast. Informal communications are particularly active when employees are anxious

about something or feel that management is not giving them enough information.

D. Nonverbal Behavior

Nonverbal behavior is extremely important in communication. Often what we say is

contradicted by how we look or our tone of voice. In those cases, the nonverbal behavior is

believed, not the verbal!! Nonverbal behavior can be broken into three categories: kinesics,

proxemics, and paralanguage.

E. Kinesics (Body Language)

Kinesics refers to body language and facial expression and is the type of nonverbal behavior

we usually think about. Be warned that gestures and other types of body language are notuniversal but vary from culture to culture. In the U. S., for example, parents teach their

children to look them in the eye when talking. If our kids won't look us in the eye, we feel

they are lying to us. In some Latin American cultures, however, children are taught that

looking an adult in the eye is disrespectful. When these kids refuse to look their U.S. teacher

in the eye when asked a direct question, what does the teacher wrongly conclude?

F. Proxemics

Proxemics is the study of the use of space. It is based on territoriality; man is a territorial

animal just like all the other animals. We value our space and dare anyone to sit on our car oreven walk across our lawn without our permission. Space can be broken down into



three types: fixed feature space, semi-fixed feature space, and personal space.

Fixed feature space refers to the immovable area we are given, such as a classroom. The

walls and floor and ceiling clearly delineate where our space starts and stops. Semi-fixed

feature space refers to the moveable objects within that space--how will we arrange the tables

and chairs, for example. This can be extended to how you arrange your office.The patterns of furniture have an impact on the type of communication that will take place.

Think of a classroom setting where the chairs are all arranged in a circle--isn't there more

individual communication than when the classroom is arranged in typical lecture fashion?

Personal space is even more interesting. In the U. S. culture, people carry about a 3 foot

bubble of "personal space" around us. We are not comfortable with strangers getting closer

than that to us. Again, this is a cultural phenomenon. In some Middle Eastern countries, for

example, business is conducted in much closer proximity than is normal

Here in the U.S. The U.S. business person will back off as the Middle Easterner draws closer,

the latter will be offended or simply step forward to reestablish that closer proximity. What is

the personal space in India?

G. Paralanguage

Paralanguage refers to "how you say what you say." It considers tone of voice, loudness or

softness, rate of speech, insertion of little filler words like "uh", or "OK". Paralanguage is

vocal, i.e., it can be heard, but it is not verbal, i.e., there is no word content to it.

H. Common Barriers to Communications

Several common barriers to communications are filtering, semantics, selective perception,

and listening.

1. Filtering is what we do when we simply have too much information. We sift and sort and

sometimes we don't do a good job at separating out the really important communications

from those that are far less important.

2. Semantics covers a whole area of communication barriers based on language. These

barriers can be a simple case of unshared language such as computer experts trying to explaina problem to someone who does not understand computer terms. Be careful of using jargon

with outsiders! Another instance of a semantical problem is the phenomenon which occurs

when messages are repeated over and over--each time some distortion sets in and by the time

the message is repeated for four or five times, little of the original message remains. (Have

you played Chinese Whispers?)

3. The confusion of inference for fact is another semantical problem. We often pass along

opinion as if it were fact. These are perception problems.

4. Listening is the communication skill many of us do least well. Of the four communication

areas: speaking, writing, listening, and reading, we get the least training in listening.Listening is very different than hearing. While the latter is merely a physical phenomenon,



listening takes concentration and hard work. Listening is very rewarding, however, and is

quite motivational when used with employees. Don't you feel valued when someone really

listens to you?

One of the primary barriers to effective listening is the difference between speech speed and

thought speed. We can think 3 or 4 times faster than we can speak, so when we are listeningto someone speak, we still have a lot of capacity to daydream or think about other things at

the same time. A good way to avoid this loss of concentration is to keep our extra thoughts on

the same general subject. Try summarizing in your mind what the speaker is saying; think

ahead to what the speaker might say next--if you are right, you have reinforced the subject; if

you are not right, the contrast will still reinforce the subject!

2. Group dynamics

A. Types of Groups (p. 238)

1. Formal and Informal groups.

a. A formal group is established by the management and is expected to perform well-defined

tasks to achieve an organization's objectives.

b. Informal groups grow out of the need for friendship, affiliation, companionship, and

communication between people.

2. Heterogeneous and Homogenous groups.

Heterogeneous means made up of a variety of individuals--in gender, age, experience,

ethnicity, and interests. If culture is made of people with varying backgrounds, education,

belief systems, then time to reach a decision may be longer, but will more often produce the

best answer.

Homogeneous means similar. If culture is typified by a group comprised of people with like

experiences and biases, then it will inhibit decision making process through lack of

innovative thinking. Group may move quickly to solution, but will often be the wrong one.

a. Advantages

i. Heterogeneous groups have a competitive advantage in terms of

cost,

resource acquisition,

marketing,

creativity,

problem solving and

organized flexibility.



ii. Markets are becoming increasingly diverse and global and a heterogeneous group will

adapt better to this new climate and will increase productivity and profitability.

iii. Heterogeneous groups respect, value and learn from one another.

iv. Prejudice and discrimination are absent. Minimum inter-group conflict based on race,

gender and nationality.v. Solutions are well thought-out and thorough but take longer time to reach consensus.

b. Disadvantages

i. Increased turnover and absenteeism.

ii. Lower job satisfaction.

iii. Frustration over career growth and cultural conflict.

iv. Costs of attracting and training heterogeneous groups are higher.

B. Functions of a Group are usually two: task and maintenance (pp. 239-40.)

1. Task functions

a. Handling complex tasks

b. Liaison or coordinating function

c. Implementation of complex decisions

d. Generating new and creative ideas.

e. Vehicle for training new employees.

2. Maintenance functions

a. Fulfilling the need for social interaction

b. Providing a sense of identity and self-esteem

c. Solving personal problems

d. Reducing anxiety and uncertainty.

C. Group Development

1. How does group culture affect performance of the group and the individual?

The foundation, composition, and functional aspects of the group will affect the performance

of the group as a whole (i.e., quality of solution and length of time to arrive at best workablealternative) and the individual (ability to express unique opinions through framework of

forum for discussion)

If groups interact well on a personal basis, this then can lead to accountability of actions and

the group can serve to break down bureaucracy and expedite process of problem solving

2. What factors influence whether or not a group is cohesive?

a. Contextual factors such as the background out of which a group rises and in which a group

operates is an important factor.

b. social capital i.e., credibility acquired over time and recognized in the group and the firm.



3. The three major design factors of a group are

a. People--Characteristics of the group members in terms of skills, interests, learning styles,

values and assumptions, and individual tendencies must be analyzed in terms of the work

force structure and activities of the group.

b. Task requirements – what is to be accomplished by the group in terms of interactions,

activities involved, novelty of tasks and pace of work must be defined.

c. Organizational structure of the group in terms of hierarchy, reporting relationships, reward

systems, selection and recruitment procedures must be well defined and understood by the

group and the person(s) creating the group.

To maximize a group's abilities to function as a cohesive group, the above three factors must

be properly managed through sound decisions.

Once a group is formed the culture, norms, roles, rituals and maps of the group that emerges

will further influence the cohesiveness of the group.

4. The Lifecycle of a group--Tuckman's Model of Group Development (Kavita Singh, pp.

240-242)

Form-Storm-Norm-Perform-Adjourn

Stage 1: Forming--awareness, commitment, acceptance

Stage 2: Storming--conflict, clarification, belongingness

Stage 3: Norming--cooperation, involvement, support

Stage 4: Performing--productivity, achievement, pride

Stage 5: Adjourning--mixed feelings, excitement, sadness

5. Group patterns emerge from the Form-Storm-Norm-Perform-Adjourn process.

Patterns of behavior and values that members create constitute culture. These are made to

meet task requirements.

a. Norms are expectations and guidelines shared by group members for group's individuals'

behavior.

b. Roles are the characteristic and expected social behavior of an individual (informal leaders,

social deviants, etc.)

c. Rituals, stories, language- group-specific behaviors.

d. Maps- what members notice in the world around them.



D. Do groups make better decisions than individuals?

The answer to this one is an unequivocal "sometimes'.

It depends on the type of task/problem (routine or complex), and the make-up of the group.

Groups tend to do well on the following types of tasks:

1. Disjunctive Tasks - Tasks which require a group to develop or choose a single "best"

answer. The group decision is as good as the best answer/best person.

Benefits - The larger the group, the better the odds that someone will suggest the optimal

solution.

Drawbacks - the person with the best idea might not be able to express it properly, or might

not be able to gain group consensus. Also, as with any group decision, there is potential for"group-think".

2. Compensatory Tasks - Tasks which do not have a single "best' answer. Typically these are

very complex problems.

Benefits - A heterogeneous group usually arrives at the right answer, but it takes them more

time.

Drawbacks - A homogenous group is able to develop a solution quickly, but it is usually the

wrong answer.

E. When should I use a group?

1. The problem is uncertain or complex and has potential for conflict

2. The problem requires interdepartmental or inter-group cooperation and coordination

3. The problem and its solution have important personal and organizational consequences

4. There are significant but not immediate deadline pressures.

5. Widespread acceptance and commitment to the plan are critical to successful

implementation

F. The Process of problem solving

The project should begin with a decision on the process (i.e. how you will attack the problem)

to be used. Group problem solving has numerous benefits and costs.

Benefits:

1. Resource pooling - allows the group to draw from the combined physical and mental assets

of the group members.

2. Synergy - allows members to build upon ideas that they would not have developed on theirown and perform at higher levels of accomplishment because of the group dynamics.



3. Decision-making benefit - group agreement on the solution creates a sense of "ownership"

and helps to alleviate tension during implementation.

Costs:

1. Time constraints - it takes longer because various options have to be discussed.

2. Potential Dysfunctionality - Someone regarded as an "expert" might be wrong and lead the

group to the wrong decision.

3. Over-conformity/group-think is also a potential problem.

G. Framework for Analyzing Work Groups

1. Contextual factors: background factors out of which a group arises and in which a group

operates.

2. Social capital: credibility, acquired over time, and recognized in the group and the firm.

H. Conflict Resolution

1. What are the advantages/disadvantages of conflict within groups?

Advantages: Conflict and disagreement might lead to evaluation of alternatives that would

not be considered otherwise.

* The most important benefit of conflict is to avoid group-think or over-conformity on an

incorrect answer/solution.

Disadvantages: The group might spend so much time and energy on conflict resolution that it

is unable to come up with an optimal, or even a decent, solution.

2. How can the conflict be managed?

Modes of Conflict Resolution:

a. Smoothing and Avoidance:

1. The group is more interested in maintaining harmony than confronting the problem

2. The group members assume that conflict is destructive

3. The group members are "accommodators"

4. The outcome is that status quo is maintained

b. Bargaining and Forcing

1. The group defines the problem in terms of what each person, subgroup or dept. stands to

gain or lose;

2. The group members assume that conflict is necessary, inevitable and even desirable. It'sgood to win and bad to lose



3. The group members are "adversaries"

4. The outcome is win/lose

c. Confronting and Problem Solving

1. The group defines the problem relative to what is best for the organization as a whole2. The group members feel that being open about differences of opinion and needs will lead

to a better solution; conflict is healthy is handled right

3. The group members are "collaborators"

4. The goals are interdependent; all benefit when total group benefits

References

You can read more at: MBA Boost - Organizational Behavior Course Notes - Groups

http://www.mbaboost.com/content/198/#ixzz0wh5zhboV

3. Leadership

A. Leadership Defined

Robbins defines leadership as "the ability to influence a group toward the achievement of

goals." Another definition sees leadership as, "getting things done through other people," or

"accomplishing organizational goals through other people."

Leadership is as much an art as it is a science. People may be able to teach you effective

leadership techniques, but unless you master the "art" of managing people, the art of

influence, the essence of leadership will escape you.

Did you know that there was a time when scholars thought that a leader was "born, not

made." If that were the dominant theory today, there would be little reason to study

leadership. The old belief in "born leaders", however, is typical of the trait school of

leadership.

The model by Tannenbaum and Schmidt looks at leadership according to how much authority

and influence leaders have as opposed to subordinates.

On one end of the Tannenbaum and Schmidt continuum, leaders make all the decisions andannounce them to their subordinates; employees have no authority. On the opposite end of

the continuum, leaders delegate almost all decision-making authority to employees. In

between, there are many combinations of leader-subordinate authority distribution.

You can relate this model back to the motivational model of Theory X and Theory Y. Theory

X was very authoritarian, you will recall, and said the supervisor should have almost

complete authority; Theory Y, on the other hand, espoused much delegation of authority to

employees.

Throughout the leadership theories that follow, you will find frequent reference to this

dilemma, i.e., how much authority should be given to employees?



B. Trait Theories of Leadership (pp. 264-270)

Trait theories of leadership attempt to define what characteristics make for great leaders.

Countless studies have tried to isolate these characteristics and only one thing has become

clear--there is no consistent answer to this question. In fact, many studies find differentanswers. One of the few frequent conclusions is that leaders have above-average intelligence.

Gradually, trait leadership theories have fallen from favor. Starting in the 1940s, more

interest was focused on how leaders behave.

Some personality traits are often associated with leadership.

1. Self-confidence

2. Emotional stability and maturity

3. Personal Integrity4. Achievement motivation

5. Power motivation

6. Affiliation motivation.

C. Behavioral Theories of Leadership (pp. 270-274)

In the late 1940s the Michigan State Studies separated leadership behavior into employee-

centered or production-centered. They found that production-centered leadership led to

increased productivity, increased absenteeism, increased turnover, and decreased job

satisfaction. While the productivity increase was good, the negative absenteeism, turnover

and job satisfaction findings could be used to predict an eventual downturn in productivity.

Employee-centered leadership fared better. Here, job satisfaction and productivity went up

and turnover and absenteeism went down--a much better combination. The conclusions of the

study naturally favored employee-centered leadership.

The Ohio State Studies also looked at the same factors but called them "initiating structure"

(concern for task) and "consideration" (concern for people). They saw leadership, however,

as a two-dimensional grid, not a one-dimensional continuum. Therefore, you could score highon both initiating structure and consideration--the preferred leadership style according to this

theory.

The best-known behavioral leadership theory is Robert Blake and Jane Mouton's Managerial

Grid which measures leaders based on their "concern for people" and their "concern for task."

You can score from 1-9 on both dimensions with l being low and 9 being high. While there

are 81 possible positions on the Grid, there are 5 main styles as follows:

1,1: Impoverished management or "retired on the job" The 1,1 manager has low concern for

production and low concern for task. This is a laissez-faire person who doesn't get involved

much. Usually, this is a poor leadership style.



9,1: Authority-obedience. This is an autocratic leadership style. This leader has a high

concern for task but very low concern for people.

1,9: Country club manager. This leader has a high concern for people and a low concern for

task. This person believes that if interpersonal relations are maximized then the task will

automatically be taken care of.

5,5: Organization man manager or "the compromiser." This style has a moderate concern for

task and a moderate concern for people.

9,9: Team manager or "integrative manager". This person has a high concern for both people

and task. It is the ideal style according to the Grid.

According to Grid theory, everyone has a primary style and a backup style; thus, a 9,9

manager under pressure may revert to l,9 management. The problem with the 5,5 manager is

when they switch a bit in any direction, they are into a very different style--one day l,9, one

day 9,l. People don't know what to expect from them and spend a lot of time trying to figurethem out.

D. Situational Leadership Theories

Situational leadership theories are referred to as contingency theories.

Regardless of the term, situational theories teach that there is no one best way of leadership--

that it all depends on the situation.

Two of the most influential situational theories are those by Fred Fiedler (Contingency

Leadership) and Ken Blanchard and Paul Hersey (Situational Leadership). Other

situational theories include Leader-Member Exchange Theory and Path-Goal Theory.

1. Contingency Leadership Theory (pp. 275-277)

Contingency Leadership Theory was the original situational leadership theory and belongs to

a man by the name of Fred Fiedler, who defines the "situation" with three factors:

A. Leader-member Relations: How are the leader and followers getting along?

B. Position Power: How strong is the leader's power?

C. Task Structure: Is the task stable and structured or dynamic and changing?

Depending on the situational favorableness, Fiedler teaches that you need either a task-

oriented leader or people-oriented leader

The theory concludes that if the situation is highly favorable or highly unfavorable you need

a task person to lead. Likewise if the situation is moderately favorable or unfavorable, you

need a people person. This seems to make sense. If things are very bad, you need a take-

charge, goal-oriented leader before you go out of business. If things are very good, interpersonal relations are already smooth, and a goal-setter can take



you to the next place. Most situations are somewhat in the middle and might demand

someone with human relations skills.

The secret according to Fiedler is to match the person to the situation. Analyze the situation

and hire or promote the right type of leader. Nor does he think that the average leader can

change from one style to another. Leadership style, according to Fielder, is very much amatter of personality and hard to change

2. Situational Theory (pp. 277-279)

Situational Theory, according to Hersey and Blanchard, however, does not agree. These

theorists are of the mind that leaders can and do change styles depending on with whom they

are dealing. Situational Leadership is the most popular leadership theory of the day. It is very

friendly, easy to understand, and many corporate staffs have received training in

Situational Leadership. The "situation" in this theory is defined by the "readiness" of the

followers. There are four readiness levels:

R1: Unable and unwilling

R2: Unable and willing

R3: Able and unwilling

R4: Able and willing

The four leadership styles that match these readiness levels are as follows:

R1: Requires "Telling" high task-low relationship

R2: Requires "Selling" high task-high relationship

R3: Requires "Participating" low task-high relationship

R4: Requires "Delegating" low task-low relationship

Styles of leadership depend on the relationship behaviour (willing or unwilling to do the job)

and task behaviour (able or unable to do the job).

The style of leadership with the nature of the employee:

Particpating (able but unwilling), Selling (neither able or willing), Telling (willing but

unable), Delegating (willing and able)

Despite the popularity of the Hersey-Blanchard model, there is little confirming research.

3. Path-Goal Theory (pp. 279-283)

According to Robert House's path-goal theory, the leader's job is to clear the path so that

subordinates can attain both their personal and organizational goals. Notice from House's

model in the book that there are two types of situational factors: those that are under the

control of the subordinates and those which are environmental factors. Depending onthe combination of these factors, House believes that there are four leadership styles:



"Directive": task-oriented leadership

"Supportive": relationship-oriented leadership

"Participative": consults with subordinates before making decisions

"Achievement-oriented": sets challenging goals and expects high performance.

E. Recent Approaches to Leadership (pp. 287-290)

Three recent approaches to leadership are attribution theory, charismatic leadership theory,

and transactional versus transformational leadership.

1. Attribution Theory of Leadership

Attribution theory is based on cause and effect leadership. People want to attribute cause and

effect relationships to things they observe. Attribution theory says that leadership is simplythe perception that people make about other people who they see as possessing intelligence,

outgoing personalities, strong verbal skills, aggressiveness, etc.

2. Charismatic Leadership Theory

When US students are asked to think of people that have or had charisma, you will get

answers like Martin Luther King, John F. Kennedy, Elvis, and Franklin D. Roosevelt. For

Indian students? Perhaps Gandhiji, Amitabh Bachin, and Shah Rukh Khan.

Charisma is hard to define but everyone knows it when they see it. A charismatic leader leads

by example. Such a person represents a vision for change--a change for a better future. They

are successful in rallying employees around this vision and they make

exceptional efforts through personal example to achieve the vision. Charismatic leaders are

exciting and energizing to their staffs.

3. Transactional vs. Transformational Leadership

Transactional leaders are those who guide or motivate followers toward accomplishing

organizational goals. Transactional leaders make roles and requirements clear for employees.They establish rewards for good performance and recognize accomplishments. They only get

involved when there is a problem (management by exception).

Transformational leaders have charisma and provide inspiration to their employees. They

tend to have individual relationships with employees and provide intellectual stimulation.

They act as advisors and coaches and instill others with a sense of mission.

G. Contemporary Issues in Leadership

Robbins (1996) ends his chapter on leadership by discussing several contemporary issuesabout leadership. These include the influence of gender on leadership style, the modern



concept of empowerment, followership, national culture, and biology.

There have been some interesting studies on the effects of gender on leadership style.

Successful male and female leaders tend to have many similarities; yet, women as a group

tend to be more democratic in their style than men. The modern concept of managerial

coaching may thus be more natural for women than men.

Empowerment as a modern management technique has serious consequences for how leaders

behave. Far less authority is now centralized with the leader. Leaders have become more like

facilitators than dictators.

Great followers may make leaders look great. While there are many, many leadership studies,

there are few followership studies. Everyone, of course, wants cooperative, talented, hard-

working followers!

National culture is another variable in leadership style. Some cultures rely more on

authoritarian styles. This fits their culture. For example, some Latin American countries usefar more directing leadership while leaders in other countries such as Norway and Sweden are

much more participative in their approach.

The search for a biological basis of leadership has not yielded significant results. Yet, some

researchers have found that certain hormones and brain chemistry equip leaders to deal with

stress and perhaps be more effective. This is a relatively new search about which we may

hear more.

H. The Difference between Leadership and Management

1. Definitions

According to the dictionary, management is conducting, coordinating, being in charge of, and

having responsibility for. Managers master routines and create efficiency. In contrast, leading

is influencing: guiding in direction, course, action or opinion. Leaders acquire vision and

judgment and become effective.

According to Warren Bennis,

a. managers are people who do things right, and

b. leaders are people who do the right thing.

2. Leadership qualities

Warren Bennis, widely known as a modern leadership guru, has identified six personal

qualities leaders should have.

See http://changingminds.org/disciplines/leadership/articles/bennis_qualities.htm

A. Integrity

Integrity means alignment of words and actions with inner values. It means sticking to these

values even when an alternative path may be easier or more advantageous. A leader withintegrity can be trusted and will be admired for sticking to strong values. They also act as a



powerful model for people to copy, thus building an entire organization with powerful and

effective cultural values.

B. Dedication

Dedication means spending whatever time and energy on a task is required to get the jobdone, rather than giving it whatever time you have available. The work of most leadership

positions is not something to do 'if time'. It means giving your whole self to the task,

dedicating yourself to success and to leading others with you.

C. Magnanimity

A magnanimous person gives credit where it is due. It also means being gracious in defeat

and allowing others who are defeated to retain their dignity. Magnanimity in leadership

includes crediting the people with success and accepting personal responsibility for failures.

D. Humility

Humility is the opposite of arrogance and narcissism. It means recognizing that you are not

inherently superior to others and consequently that they are not inferior to you. It does not

mean diminishing yourself, nor does it mean exalting yourself. Humble leaders do not debase

themselves, neither falsely nor due to low self-esteem. They simply recognize all people as

equal in value and know that their position does not make them a god.

E. Openness

Openness means being able to listen to ideas that are outside one's current mental models,

being able to suspend judgment until after one has heard someone else's ideas. An open

leader listens to their people without trying to shut them down early, which at least

demonstrates care and builds trust. Openness also treats other ideas as potentially better than

one's own ideas. In the uncertain world of new territory, being able to openly consider

alternatives is an important skill.

F. Creativity

Creativity means thinking differently, being able to get outside the box and take a new anddifferent viewpoint on things. For a leader to be able to see a new future towards which they

will lead their followers, creativity provides the ability to think differently and see things that

others have not seen, and thus giving reason for followers to follow.

3. Comparisons

A manager has a set of goals (responsibilities), and set of tools (authority) and they use the

tools to accomplish the goals. In this sense, a manager is like a thermostat or single-loop

governor.

In organizational settings, double-loop adaptation refers to reacting to situations not by fixing

things so that everything is back to normal, but instead re-evaluating priorities -- looking

beyond the way things have always been done and asking whether more fundamental change

is needed. This is the job of a leader.I. Strategies of Leadership



Vision

Vision refers to the management of attention. The creation of focus. The provision of an

agenda of agendas. Vision creates commitment, interest and motivation. One kind of vision is

a new and captivating idea of what is possible.

Communication of Meaning

Managers communicate know-how. The leader communicates know-why. The leaderprovides the interpretation of events. Meaning comes from relating events to past events, to

individual lives, and from touching emotions. Symbols and symbolic action can be used to

communicate meaning.

Development of Trust through Action

A leader wears his or her vision like clothing. A leader becomes living epitome of their

visions. This is another way of saying they have integrity -- they are internally consistent and

reliable with respect to key elements that they stand for.

Deployment of self through positive self-regard

Recognize and utilize your strengths and compensate for weaknesses. Nurturing of skills withdiscipline: keep developing talents. Do not dwell on the possibility of failure. Simply trust

that it will work out if you work steadily toward that goal. People who are happy with

themselves can make others happy. Part of leadership is causing others to be touched by what

Freud called the "oceanic" feeling: an almost religious feeling of being part of something

truly grand.

Empower Others. (Mentoring relationships)

Big things cannot be done alone. You cannot achieve great things without great help. Even if

they end up getting the credit, it is better to be an unrecognized part of a successful enterprise

than lord of a failure. And by empowering others, they feel greater due to their connection

with you.

Work the Network. The social world does not consist of independent atoms or molecules, like

a truck full of sand. Instead, people are linked together in a vast network of communication

and influence. To get things done, it is important to manage all the inputs that individuals

have, rather than just the direct connection with the leader.

http://www.polaris.nova.edu/~gibson/wk5notes.html

J. Leaders as mentors (pp. 290-291)

This is a relation that gives mental and emotional support and guidance, usually by an olderperson to a younger person.

In organizations one individual takes the responsibility for the development and progression

of selected individuals.

a. The goal is not achievement of goals but more learning, development and acquisition of

skills.

b. The mentor is expected to be more knowledgeable and have a stronger power base.

c. The mentor has to be a good listener and show empathy.



d. The mentor has a willingness to share experience.

e. Constructive criticism and positive feedback is given from the mentor to the learner

(protégé).

Part Four – For IIPM Curriculum (Sections SA1 and SA3)

1. Work Stress

2. Decision Making

-----------------------------------------

1. Work Stress

A. Definitions

Stress occurs at all levels in organizations as a result of many factors including time pressure,

personnel conflicts, and sheer quantity of work.

Hans Selye, the Father of Stress Management, says that stress is the wear and tear on the

body that occurs in daily life, or more specifically, "the nonspecific response of the body to

any demand made upon it." (The Stress of Life, 1976, p. 1) The word "nonspecific" here

means that everyone responds differently to stress. The body goes through many changes

when under stress. Originally these physical changes served to protect early humans against

environmental stressors--"The fight or flight syndrome."

B. The Fight or Flight Syndrome

The "fight or flight syndrome" is credited to Walter Cannon who taught us that when faced

with an enemy in the environment, animals and early humans had to muster their strength to

do one of two things: run away or stand and fight. Therefore, the body's physical reactions

during stress help prepare us for fight or flight. Some of the most common physical changes

are as follows: increased heart rate, increased respiration rate, increased skin perspiration,

increased dilation of the pupils, increased blood pressure, increased muscle strength,

decreased gastric functioning, decreased abdominal and surface blood flow, and increased

secretion of adrenaline.

Unfortunately, today, we cannot always fight or run away, so the chemical reactions of the

body to stress make us sick instead.

C. The General Adaptation Syndrome (GAS)

Selye taught us that stress goes through three stages that together make up the General

Adaptation Syndrome.

Stage One is the alarm stage. At this point, the stressor has just been recognized and the body

has become mobilized for fight or flight. The body's homeostasis (normal

balance) is disrupted and internal organs become ready for action.

Stage Two, the resistance stage, is the longest stage of the GAS. It begins when the body ispersistently exposed to the stressor. The body struggles to resist the alarm reactions and to



return to a homeostatic stage.

Stage Three the exhaustion stage, occurs only if stress continues longer than the body can

resist. At this stage organ systems break down. The body can no longer adapt to the stress

load placed on it, and the result of the exhaustion stage is a disease of adaptation such as

ulcers or cardiovascular disease.

D. Stress Related Disease

According to conservative estimates in medical textbooks, 50-80 percent of all physical

diseases are stress-related in origin. Stress is believed to be a principal cause of much

cardiovascular disease. It also may be a main contributing factor to the development of

cancer. Also, stress can place one at higher risk for diabetes, ulcers, asthma, migraine

headaches, skin disorders, epilepsy, and sexual dysfunction. Each of these diseases, and a

host of others, is psychosomatic in nature--that is, it is either caused or exacerbated by mental

conditions such as stress. There are, however, other manifestations of stress.

1. Subjective effects of stress include feelings of anxiety, aggression, frustration, guilt, or

shame. Individuals are also apt to feel irritable, moody, tired, tense, nervous, or lonely.

2. Behavioral effects of stress represent readily visible changes in a person's behavior.

Among these effects are such things as increased accidents, use of drugs or alcohol,

outlandish or argumentative behavior, laughter out of context, very excitable moods, and/or

eating or drinking to excess.

3. Cognitive effects refer to diminished mental ability, and may include such effects as

impaired judgment, rash decisions, forgetfulness and/or hypersensitivity to criticism.

4. Organizational effects take the form of absenteeism, diminished productivity, high

turnover, poor relations with workers, and/or general job dissatisfaction. Stress wreaks havoc

on organizational productivity. Highly stressed employees have more frequent accidents, are

often irritable, and are unable to cope with daily situations.

Another organizational consequence that has recently received much interest is corporate

liability for employees whose illness is linked to job stress. Some people are suing and

winning legal cases where work-related stressors cause burnout. Burnout is the work-related

equivalent of a nervous breakdown. The burned-out employee has succumbedto long, continuous stress and is no longer able to function at a reasonable level of

effectiveness. Where does all this stress come from?

E. Causes of Stress

To identify causes of stress, we must look at the nature of stressors. We can divide general

causes of stress into at least three categories: environmental, personal, and sudden stressors.

1. Environmental stressors include conditions in the environment that cause mental or

physical stress. These conditions include noise, pollution, temperature, diet, toxins, and

drugs.



2. Personal stressors include factors such as family or financial problems as well as amounts

of change with which a person has to cope.

3. Sudden stressors refer to intense stimuli, such as narrowly averting an automobile accident,

or the surge of nervous energy felt when someone startles or scares you.

4. Job-related stress is of particular concern to the study of organizational behavior. Some

jobs are more stress-producing than others. For instance, air traffic controllers, who face the

daily pressures of protecting the lives of thousands of people, have an occupation that is

considered highly stressful. Although this is a dramatic example, every job has potential

stressors. Some of the most common are:

a. Information load. Whether individuals are overloaded or under-loaded, they are likely to

experience stress. The underloaded individual is apathetic and bored from being cut off from

necessary communication, whereas the overloaded employee feels harried and frantic. In

either case absenteeism and turnover increase, and productivity decreases.

b. Role ambiguity. Whenever employees are not sure what their job is or the way it relates to

other jobs in the organization, role ambiguity occurs. This in turn leads to confusion, lack of

focus, and stress.

c. Role conflict. Stress occurs when various people seem to be expecting different things

from us. Supervisors are particularly susceptible to role conflict because both management

and their subordinates often look to them as their representative. As they try to satisfy

everyone's expectations, they often experience considerable personal stress.

d. Occupational change. Whenever the work environment changes, stress is inevitable. All

change brings some uncertainty with it, and uncertainty interferes with one's mental and

physical homeostasis.

e. Stress carriers. Employees are often brought into contact with Type A persons, who force

stress upon them. The grumpy boss, the forgetful secretary, and the complaining major

customer are stress carriers.

f. Physical environment. Noise, lighting, uncomfortable furniture, and temperature are

examples of physical surroundings that can produce stress.

So what are people and organizations doing to manage stress?

F. Stress Management Techniques

Choices of personal stress management techniques depend on the individual's personality

(Type A's, see below, are usually too impatient to benefit from meditation). Four of the most

popular techniques, however, are time management, physical exercise, biofeedback, and

meditation.



1. Time management helps one control stress by better organizing time and setting priorities.

2. Physical exercise is an appropriate substitute for the fight or flight response of long ago. It

provides a physical release for the chemical reactions caused by stress. Exercise not only

"burns off" the physical effects of stress but also strengthens the body's organ systems to be

better able to withstand stress.

3. Biofeedback refers to a number of techniques that give concrete feedback to the individual

regarding bodily functions such as pulse rate, blood pressure, body temperature, and muscle

tension. By being cognizant of these physical phenomena, one can apparently learn to control

them, thus willing the body to a more relaxed state.

4. Meditation encompasses a variety of mental exercises that focus our attention on

something other than daily thoughts. Regardless of the type of meditation, it is remarkably

useful in lessening one's sensory reactivity and in quieting the stress response. Best of all,

when practiced with some regularity, meditation has a carryover effect--that is, it lowers one's

normal reactivity even when not actively meditating.

G. There are currently at least three different organizational stress management strategies.

1. Job redesign strategies start with an effort to determine what is causing job stress and then

proceed to change the job so as to relieve this stress. Overload is often found to be a

chief contributor. In this case supervisors may follow one of several strategies. Jobs can be

redesigned in such a way that less coordination of effort is needed and thus less information

processing is required. Alternately, supervisors could identify liaisons who are responsible

for coordination efforts, and improve management information systems to provide what is

needed at the appropriate time. In other cases jobs may be frustrating because of lack of

decision-making authority. Traditional job enrichment approaches work well here because

they give workers increased responsibility for decisions in their work area.

2. Environmental reengineering focuses on changing the physical environment by reducing

stressors such as lighting, temperature, noise, vibration, toxins, and so on. Supervisors might

adopt one of two strategies for dealing with these stressors. The first concentrates on

protecting the workers from the negative consequences of the stressors:

workers are required to wear goggles, earplugs, or masks. This strategy is often resisted by

the workers and must be firmly enforced by the supervisor. The second strategy focuses on

lessening the negative environmental stressors by reducing noise, improving lighting, and

lessening the exposure to toxins. This latter choice is far moreacceptable as a stress reducing alternative, but it rests largely on a company's economic

analysis of costs and benefits. Smart managers follow this alternative whenever possible

instead of waiting for court settlements that force companies into compliance.

3. Of all corporate stress management efforts, wellness programs have been receiving the

most attention in recent years. Corporate wellness is part of the current trend to be concerned

about the total human being. Programs vary from companies who shuttle employees back and

forth to a local health spa during lunch hour to those that invest

thousands of dollars to install their own health spa facilities complete with nutritional experts

and meditation rooms.

H. Personality Types (A and B)



Before we leave the topic of stress management, I want to be sure that you know something

about a personality type that seems to be very prone to high stress. We call this Type A.

Type A Behavior

Friedman and Rosenman, two California cardiologists, gave us the now-famous profile of a

high stress individual known as a Type A person. This behavior pattern is highly correlated to

coronary heart disease and is typified by the following characteristics:

1. Always moving, walking, and/or eating rapidly.

2. Feeling impatient with anyone who is moving "slowly," or not talking about

something of interest

3. Indulging in polyphasic activity--that is, doing two or three things at the same time.

4. Feeling unable to relax or abstain from working.

5. Trying to accomplish more and more things in less and less time.

The list could go on and on. The Type A person is in a constant race against time, the

stereotypical "workaholic." People of this personality type cause stress not only for

themselves but also for those around them.

Friedman and Rosenman also described the Type B personality as a low stress individual

with varied interests, and a relaxed but active approach to life.

Should everyone strive to be a Type B? Not necessarily. Some Type A's seem to thrive on a

hectic pace and actually feel invigorated by the pressure of time urgency. New evidence

seems to indicate a difference between coronary-prone Type A's and their healthier cohorts.

Those who combine their Type A tendencies with hostility and anger seem to be the most

likely to suffer serious health problems.

http://www.polaris.nova.edu/~gibson/wk7notes.html

You can find interesting personality tests which you can do for free on-line at

www.queendom.com

2. Organizational decision-making

Decision making is an integral function of management. Decision making involves selecting

or choosing a particular course of action from among the various alternatives available in the

decision making situation.

Rationality in decision making refers to the appropriateness of the chosen means towards

accomplishment of the end objectives.

A. Three phases in the decision-making process

The process of decision making, as described by Herbert A. Simon, a Noble Prize-winningorganization and decision theorist, involves 3 phases, namely intelligence activity phase,



design activity phase and choice activity phase. (p.326)

1. The intelligence activity phase relates to identification of the problem.

2. The design activity phase includes developing and analyzing various courses of action.

3. The choice activity phase involves choosing the best course of action.

B. Two important criteria in classifying decisions

1. Problem complexity--it refers to the amount of information processing required to make

the decision.

2. Outcome uncertainty--how certain can one be of the outcomes?

3. Using these two criteria, four types of decisions can be seen.

a. Mechanistic decisions (have looked at all alternatives and their outcomes)

b. Analytical decisions (many choices (alternatives) and the outcomes can be

calculated)

c. Judgment decisions (limited alternatives and outcomes unknown)

d. Adaptive decisions (many alternatives, but their outcomes are unknown)

C. Settings for a decision

1. Decisions under certainty. (rare)

2. Decisions under risk. (marketing)

3. Decisions under uncertainty (hard to predict)

C. Further types of managerial decisions (pp. 327-328)

A manager is required to take different types of decisions. These can be further classified into

three major types.

1. Basic and routine decisions--taken only once and have a long-lasting impact on the

working of an organization. For example: Basic--deciding to start a new venture and the

decision to invest a sum of money, choosing a location and setting the polices and guidelinesto govern the working of the organization. Routine--day to day choices which do not have

long term impact.

2. Personal and organizational decisions--are the choices made for personal goals or for

organization goals?

3. Programmed and non-programmed decisions--depend on the frequency of occurrence of

the decision making situation.

A programmed decision is the decision that is made when the decision maker has adequate

information pertaining to the decision making situation. These decisions are routinely madedecisions.



Non-programmed decisions, on the other hand, are the decisions made in situations which

occur rarely or are unfamiliar. In this case, the process of decision making involves

identification and evaluation of alternatives without the aid of a decision rule.

D. Models of decision-making. (pp. 329-331)

The role and importance of human behavior is emphasized by the behavioral model of

decision making. Four variations of behavioral models are discussed.

1. The economic rationality model assumes that the decision maker is perfectly rational while

deciding over a particular course of action and follows a logical and systematic sequence of

actions.

2. Simon's bounded rationality model proposes that decision makers operate with a 'bounded'

rationality. Bounded rationality is said to occur when decision makers get satisfied with a'less-than-ideal' solution to a particular problem.

3. The judgmental heuristics and biases model takes the bounded rationality model a step

ahead by clearly identifying the cognitive biases of the decision maker that influence his

decisions. This model identifies three biases - the availability, representative and the

anchoring and adjustment heuristics.

4. Finally the social model, in contrast to the economic rationality model, states that human

feelings and emotions, by and large, affect the decisions made by the decision maker.

Behaviorally oriented decision making techniques emphasize the importance of employee

participation in the process of decision making. Increased employee participation leads not

only to better understanding of the decision making situation but also helps identify a wider

range of alternatives for the problem on hand.

The results--the increased employee participation in decision-making results in increasing

employee productivity and job satisfaction, and reducing employee turnover.

E. Some techniques of decision-making in organizations

1. The Scanlon Plan is one of the most important traditional participative techniques of

decision making. It involves creation of formal committees to encourage labor participation

in the decision making process.

2. Introduction of suggestion boxes is another technique of problem solving.

3. Quality circles and self-managed teams are examples of modern participative techniques of

decision making.

4. The importance of creativity in the process of decision making. Individuals or

organizations are said to be creative when they not only identify the problem accurately butalso possess the ability of generating innovative alternatives to the given problem solving



situation. Two major dimensions of creativity are divergent thinking and cognitive

complexity.

5. Divergent thinking refers to 'out-of-box' or innovative thinking.

6. Cognitive complexity describes the extent to which an individual uses elaborate, intricateand complex stimuli towards solving philosophical or abstract problems. These two

dimensions affect the degree of creativity among different individuals.

F. Group decisions

Decision making in a group involves two phenomena - group polarization and groupthink.

1. Group polarization refers to the shift of employee attitude towards a more extreme and

reinforced state after a discussion within the group, than was the state before the discussion.

2. Groupthink, on the other hand, happens when the group decides upon a course of actionwhich is accepted by a majority of its members, even before actually discovering all the

alternative solutions to the problem. (pp. 340-41)

3. Brainstorming aims at generating all possible alternatives to a given problem without

actually attempting to evaluate or assess these alternatives.

4. The nominal group technique involves employee participation in problem solving, without

the need for any verbal or physical interaction among the members. The nominal group

technique nullifies the dysfunctional effects of group decision making.

5. The Delphi technique is similar to the nominal group technique with a difference that in

Delphi technique, the participants do not actually meet at a common place. Instead, these

members are informed about the problem through mails and are requested to post their

opinions about the problem on hand. Depending upon the decision making situation,

managers employ any of the problem solving techniques. (p. 333)

G. Overcoming barriers

1. Don't be overoptimistic.

2. Do not misuse power

3. Review the results of your decisions4. Think first, and then act.

5. Don't confuse symptoms with problems.

6. Each member should be encouraged to think independently (avoid group think)

7. Invite outside experts if you get stuck, or as a habit of review.

H. Ethical decision-making (pp. 343-345)

1. Self-serving principles (might is right, self-interest and legal, best for the organization

2. Balancing-interest principles (justify end by overall good, weigh the good over thedamage, professional standards)



3. Concern-for-others principles (empathy, equitable treatment, not arbitrary, not illegal,

public response)

ob final notes

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