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Principles & Practices of

Management &Organizational Behavior

- Prof. Rutuja Jadhav



Defining Management y Working with and through individuals, groups, and

other resources to accomplish organizational goals and

objectives

y A process of designing and maintaining anenvironment in which individuals, working together in

groups accomplish effectively organizational goals



Definition of Managementy B y Griffin:

A set of management functions directed at the efficient

and effective utilization of resources in the pursuit of organization goals.



Definition.contd.y B y Koontz

Management is the process of designing andmaintaining an environment in which individuals working together in groups, efficiently accomplishselected aims.



Management..y Is based on a systematic body of knowledge-laws,

principles and concepts

y And this knowledge is universaly If a manager has this fundamental knowledge

y And knows how to apply it to a given situation

y He should be able to perform the managerial functions

efficiently and effectively



Managementy Management Practice is regarded as an art

y But, organized knowledge about management is a

sciencey THUS MANAGEMENT IS BOTH AN ART AND A

SCIENCE



Management ..Is also a profession

y

Separation of ownership from control

y The rules and regulations framed by the govt to protectcitizens from exploitation

y The growth of trade union movementy The desire of business leaders for social status



The Functions of

Management

Management

Planning

activities to

achieve theorganization's

objectives

Organizing

resources theactivities toachieve theorganization¶sobjectives

Staffing

the

organizationwith qualified

people

Directing

employees¶activitiestowardachievementof objectives

Controlling

the

organization¶s

activities

to keep it

on course



What does a manager do?y Plans

y Organizes

y Motivatesy Communicates

y Directs and co-ordinates

y Controls



How does a manager get work done?y Allocate and co-ordinate work

y Delegate responsibility (giving details of what needs to

be done)y Communication

y Co-operation and encouraging participation

y Motivation



Wh

at qualities does a manager need?y Judgment

y Initiative

y Integrity

y Energy

y Foresight

y Decisiveness

y Dependability

Fortune (American business journal)

y Fairness

y Ambition

y Emotional stability

y Co-operation

y Objectivity

y Human Relations skills



Q ualities of a good manager?

A good manager = A good leader

Edward and Townsend (1958)



Q ualities of a good manager (..contd.)y Strength and willingness to work hard

y Perseverance and determination

y

An understanding of the market place and financesy Audacity and willingness to take risks

y Ability to inspire enthusiasm and co-operation

y Toughness



oles of Managery Interpersonal Role A. Figurehead- as a leader, Ceremonial dutiesB. Leader- Motivate & Encourage peopleC. Liaison- Cultivate contactsy Informational Role

A. Monitor- Environmental scanningB. Disseminator- Passing some of privileged informationC. Spokesman- Gives information to various people linked with

org.y Decisional Role A. Entrepreneur- Looking out for new ideasB. Disturbance Handler- fire-fighter roleC. Resource Allocator- divide work & delegate authority D. Negotiator- with suppliers, trade unions on issues like strikes



EARLY MANAGEMENT APPROACHES

y Scientific Management

The credit of systematic study and practice of management goes to F. W. Taylor, very wellknown as FATHER OF SCIENTIFICMANAGEMENT



Behavioral Approachy Emphasizes on People

y Practical & situational constraints for decision making

y Participative & group decision makingy Self-direction

y Self-control

y Leadership



System Approachy It provides integrated approach to management

problems

y System is a set of interdependent parts which togetherform a unitary whole that performs some functions



Contingency Approachy Management Principles & Concepts are not applicable

under all conditions

y

There is no one best way of doing things under allconditions

y Methods & techniques which are effective in onesituation may not work proper in other situation



F.W Taylors Principles of Scientific

Management

1. Time & Motion Study

2. Differential Payment

3. Drastic Reorganization of Supervision4. Scientific Recruitment & Training

5. Intimate Friendly Cooperation betweenManagement & Workers



Henry Fayols Principles of Management

1. Division of work

2. Authority &Responsibility

3. Discipline4. Unity of Command

5. Unity of Direction

6. Subordination of individual interest toGeneral Interest

7. Remuneration

8. Centralization

9. Scalar-Chain: Hierarchy of Authority

10. Order: keep things right11. Equity: Fair treatment

12. Stability of Tenure

13. Initiative: Freedom tothink out & execute plans

14. Espirit-de-corps- TeamSpirit



PlanningPlanningy Planning : most important and difficult managerial

function.

y Planning meant looking ahead and to foresee both toassess the future and make provision for it

y

features of a good plan of action -unity, continuity,flexibility and provision

y A GOOD PLAN IS A PRECIOUS MANAGER I ALINSTRUMENT

y A GOOL PLAN ALSO HAS TO BE IMPLEMENTA BLE



PlanningManagement functions that involves theprocess of defining goals, establishing strategies forachieving those goals and developing plans to

integrate and coordinate activities



Importance of Planning1. Minimizes Risk & Uncertainty

2. Leads to Success

3. Focuses attention on Organizations Goals4. Facilitates Control



Advantages of Planning

1. Better coordination

2. Increases & balances utilization of facilities

3. More efficient control of operation

4. Easier delegation

5. More economical use

6. Better decision making



Limitations of Planning

1. Planning is limited by accuracy of information &future goals

2. Planning costs too much

3. Planning has psychological barriers

4. Planning delays action

5. Planning is overdone by planners

6. Planning forces managers



Steps of Planning1. Being aware of opportunities

y The Market

y Competition

y Customers Needs

y Strength & Weakness

2. Establish objectives3. Developing planning premises

4. Determine alternative course of action

5. Evaluate & Select course of action

6. Develop Derivative Plans

7. Measuring & Controlling the Process



Pl

anning Decisionsy Anticipates the future, sets goals and objectives and

identifies the actions necessary for the organization to

attain these goals and objectivesy Determining where you want to go and how and when

youre going to get there

y It involves specifying a target, a path or route to be

followed and a time schedule for achieving that target



Determining planning

premises

Establish objectivesDevelop Strategies

Establish policies

Develop program for

accomplishments

Establish schedulesand budgets

Establish proceduresIdentify potential

problems

Develop preventive&/or contingent

action

Coordinate

throughout the

planning

How does a manager Plan?



Types of Plans

Operational

Plans

Tactical

Plans

Strategic

Plans

Specify actions to

achieve tactical plans

(very short-term)

Designed to implement

strategic objectives

(usually one year or less)

Establish long-range

objectives



MANAGEMENT BY OBJECTIVES

AND SELF-CONTROL

The concept is credited to Drucker and GeorgeS.Odiorne.

The MBO is the central point of discussion in his book The practice of Mangement-writes :

Management is not just a creature of the economy; it isa creator as well. And only to the extent to which itmasters the economic circumstances, and alters themby conscious, directed action, does it really change.

To manage business means, therefore, to manage by objectives.



Why MBO?

The specialized work of the manager

The hierarchy in organizations

The existence of difference in vision inbusinesses

Such factors cause conflict and breakdown in theorganization and MBO overcomes thesedeficiencies by relating the task for eachmanager to the overall goals for the company.



y MBO is a managerial philosophy and technique thatattempts to draw on peoples needs for achievement,competence and anatomy by allowing them to set their

objectives, goals, and performance criteria

y This concept applies to employees at any position



ORGANIZINGORGANIZING

Means : to organize a business is to provide it with everything useful to its functioning, rawmaterials, tools, capital, personnel.

It is the process of defining & grouping theactivities of enterprise & establishing the

authority relationship among them.



Importance of an Organization

y promotes specialization and speedy performance of tasks

y helps in avoiding duplication of work and overlappingresponsibilities among employees

y Scientific division of work

y Organisation creates a solid foundation for focusing managerialattention and actions on the accomplishment of enterpriseobjectives

y Organisation encourages creative thinking on the part of

employees

y Providing the optimum use of technological improvements

y Sound organisation increases managerial efficiency



Organising Process

Step:1

Division

Step: 4

Flow of

information

Step: 2

Coordination

Step: 3

Control of tasks



Within Organising we have

y Division of work

y Line and staff

y Levels of authority y Organisation charts

y Decentralisation

y Job description



Principles of Organising

1. Objectives

2. Specialization

3. Span of Control

4. Exception

5. Scalar Principle

6. Unity of Command

7. Delegation

8. Responsibility

9. Authority

10. Efficiency 11. Simplicity

12. Flexibility

13. Balance

14. Unity of Direction

15. Personal Ability



Types of Organizational Design

1. FunctionalOrg

2. ProductOrg.

3. Territorial Org.

4. Customer Segmentation

5. MatrixOrg.

1 F ti l O



1. Functional Org

- Divide by Functions

CEO

Marketing HR ProductionAccounting Finance R & D



Advantagesy Division of labour

y Encourages specialization

y Easy for understandingy Eliminates Duplication



Disadvantagesy Narrow set of tasks

y Horizontal communication among departments

y No accountability of each functiony Department functions as a stand alone unit



2. Product Org.

- Divide by product

UK Germany Spain France

South America

Africa AustraliaEurope

Chief ExecutiveOfficer

Product CProduct A Product B

Functions Functions Functions Functions



Advantagesy Specific needs of customers

y Specific marketing strategies

y New technologiesy Serving multiple customers

y New geographic markets



Disadvantagesy Complexity

y Uncertainty of companys business environment

y Diverse customersy New product lines

y Technological Advances



3. Territorial/Geographical Org

- Divide by regions



4. Customer Segmentation

PresidentBank

Investment

BankCommunity

Bank

Commercial

BankAgriculture

- Divide by services provided



5. Matrix Org



Advantagesy Reduces functional barriers

y Opens up communication among depts

yMaximize use of skilled professionals

y Dual Focus-Cost & Quality

y Motivates Employees



Disadvantagesy Conflict among people

y Feeling of insecurity

yExcessive workload

y Dual staffing of bosses

y Unnecessary complexity

y Confusion about report to whom

y Sense of reporting to none



5. Virtual Org.y Latest type of designy Networked design- Cyberspace

y Computer-mediated communication technology

y People use computer network to work



Centralisation & Decentralisation

of Authorityy Centralisation: The decision making authority is

concentrated in a few hands at the top management.

y Decentralisation: The decision making authority isdelegated to middle & lower level management wherethe work is to be performed.



Centralization & Decentralization

of Authority

In the words of Fayol,

´ Everything that goes to increase the importance of the

subordinate·s role is Decentralisation & Everything that

goes to reduce it is Centralization.µ



Advantages of Centralization1. CEOs are provided with power & prestige

2. Uniformity of policies, practices, & decisions

3. Duplication of functions is minimized4. Elaborate & extensive controlling procedures &

practices are not required

5. A strong coordinated top Mgt Team is developed

6. Highly qualified specialists can be utilised



Advantages of Decentralization1. It stresses delegation of decision making & lightens

the load of top managers

2.Intimate personal ties & relationships are promoted,resulting in greater employee enthusiasm &

coordination

3. Reduces problem of communication

4. Quicker & Better Decision Making5. Ensures Development of more competitive managers



What is Leadership?Leadership is the ability to influence, motivate,

and enable others to contribute toward the

effectiveness of the organizations of which they

are members

CP/Nina Long



Leadershipy Ability to direct a group towards the attainment of

goals

y Influence

y Voluntary

y What makes a great leader?

y Leader emergence vs leader effectiveness

y Leadership vs management



Distinctions Between Managers

and LeadersLeaders

y Innovate

y Develop

y Inspire

y Take the long-term view

y Ask what and why

y Originatey Challenge the status

quo.

Managers

Administer

Maintain Control Have a short-term view

Ask how and when

Imitate

Accept the status quo



Charismatic Leadershipy Identification by Followers

y Create a Vision

y

Tries to Establish Culturey Confident and Energetic Leadership

y Effective Impression Management



Charismatic Leader Behaviors

1. Innovative visioning

2. Unconventional Behavior

3. Impression Management4. Self-sacrifice and Personal Risk

5. Role model exemplary behavior

6. Show confidence in followers

7. Enhance team identity 8. Share power for key decisions

9. scan and analyze environment



Problems with Charismatic Leadersy Reduced input by subordinates

y Delusions of Infallibility

y Difficulty in Understanding Other Perspectives

y Transitory Effects

y Lack of Successors



Leadership Styles



Leadership Styley Autocratic/ Authoritarian Style:

y Leader makes decisions without reference to anyone else

y

High degree of dependency on the leadery Can create de-motivation and alienation of staff

y May be valuable in some types of business wheredecisions need to be made quickly and decisively



Leadership Styley Democratic Style:

y Encourages decision makingfrom different perspectives leadership may beemphasised throughout the organisationy Consultative: process of consultation before decisions

are taken

y Persuasive: Leader takes decision and seeks to persuade

others that the decision is correct



Leadership Styley Democratic Style:

y May help motivation and involvement

y

Workers feel ownership of the firm and its ideasy Improves the sharing of ideas

and experiences within the business

y Can delay decision making



Leadership StyleyLaissez-Faire/ Free-Rein Style:

y Let it be the leadership responsibilitiesare shared by all

y Can be very useful in businesses where creative ideas are important

y Can be highly motivational,as people have control over their working life

y Can make coordination and decision makingtime-consuming and lacking in overall direction

y Relies on good team work

y Relies on good interpersonal relations



Leadership Styley Paternalistic Style:

Leader acts as a father figure

Paternalistic leader makes decision but may consultBelieves in the need to support staff



Staffing

Staffing is defined as filling and keeping filled positions inthe organisation structure through :

1.Identifying work force requirements

2.R ecruiting, selecting, placing3.Induction and Orientation

4.Training/developing

5.Promoting,appraising,planning the

careers, compensating6.To accomplish their tasks efficientlyand effectively.



Decision-making

y Set boundaries and limitations

y Define objectives

y

Recognise limitationsy Varies from company to company

Decision Making is about deciding what action to take, itusually involves choice between options. A leader whoaspires to excellence obviously has a vested interest thatthe best decisions are taken.



THE ART OF EFFECTIVE

DECISION MAKING

In decision making there is a classic five-step approachthat you should find extremely helpful. That does not mean

you should follow it blindly in all situations. It is a fairly natural sequence of thought, however, and so even withoutthe formal framework you would tend to follow this mentalpath. The advantage of making it conscious is that it iseasier to be swiftly aware when a step is missing or moreprobably has been performed without understanding orintention.



THE CLASSIC FI VE STEPS APPR O ACHTHE CLASSIC FI VE STEPS APPR O ACHTO DECISION MAKINGTO DECISION MAKING

Step 1 Define the objective

Step 2 Collect relevant Information

Step 3 General feasible options

Step 4 Making the decision

Step 5 Implement and Evaluation



DEFINE THE OB JECTI VE

Do you know what you are trying to achieve ? You do need to be clear or as clear as possible about where you want to get to. Otherwise the whole process of decision making is obscured in a cloud. As theproverbsays,

If you do not know what part you are heading for, any wind is the right wind.

COLLECT RELEVANT INFORMATIONThe next skill is concerned with collecting and sifting relevant

information. Some of it will be immediately apparent, but other datamay be missing. It is a good principle not to make decisions in theabsence of critically important information that is not immediately tohand, provided that a planned delay is acceptable. Remember the

distinction between available and relevant information. Some thinkersdo not, however, look at the information at their disposal and askthemselves, Is this relevant ? Instead they wonder, How can I use it ?They are confusing two kinds of information.



Contd..COLLECT RELEVENT INFORMATION

Life would be much simpler if you could just use the

information at your disposal, rather than that which you reallyneed to make the decision ! So often quantities of data areadvanced there are acres of it on the internet that merely

add bulk to, say, a management report without giving itsrecommendations any additional weight.

GENERAL FEASIBLE OPTIONSNotice the word options rather than alternatives. An alternative is literally

one of two courses open. Decision makers who lack skill tend to jump far too

quickly to the either or alternatives. They do not give enough time an mentalenergy to generating at least three or four possibilities. As a Major in the saysto his men, You can be sure that if the enemy has only two courses of actionopen to him, he will choose the third.



MAKE THE DECISION

The critical preliminary activity here is to establish theselection criteria. It is worth dividing them into differentlevels of priority.



Contd««..MAKE THE DECISION

Unless an option meets the MUST requirements you should discard it.

But after the essentials have been satisfied, the list of desirables ² highly

desirable SHOULDs or pleasant addition MIGHTs ² comes into play.

Choosing a car is a relatively simple case, because there is a finite number

of models to choose from and a relatively simple list of criteria. In order

to help you choose in more complex cases, remember that you can make a

decision by :

Listing the advantages and disadvantages,

Examining the consequences of each course,

Testing the proposed course against the yardstick of your aim or objective,

Weighting the risks against the expected gains.



IMPLEMENT AND EVALUATE

Decision comes from a Latin verb meaning ¶to cut off ·. It is relatedto such cutting words as ¶scissors· and ¶incision·. What is ¶cut off · when you

make a decision is the preliminary activity of thinking, especially the

business of weighing up the pros and cons of the various courses of

action. You now move into the action phases.

The decision should be seen as part of the overall process. You may

hardly notice the actual point of decision, just as passengers on a ship may

be asleep when their ship crosses the equator line. The ¶cut off · point, be it

conscious or unconscious, is when thinking ends ² your mind is made up ²

and you move into the action or implementation phase. But you are still

evaluating the decision, and up to the Point of No Return (PNR), you can

always turn back if the early signs dictate.

Not to decide is to decide



MODELS OF DECISION MAKING

1. Economic Man Model

2. Administrative Man Model

3. Social Man Model



C ontroll ing Defined y The process of monitoring activities to ensure they are

being accomplished as planned and of correcting any significant deviations



Controlling

y Controlling is the measurement and correction of performance in order to make sure that enterprise

objectives and the plans devised to attain them areaccomplished.

y Planning and Controlling are closely related.



Controlling Process

1. Establish Performance standards

2. Monitor actual performance

3. Measure performance4. Correct deviations from

standards



C

ontrollingT

echniques1. Budget

2. Statistical Data

3. Reports and Analysis4. Time Budgeting

5. Program Procedural

Planning & Control.



C ontroll ing Decisions

y Evaluates the performance of an organization and itsunits to see whether the organization is progressing inthe desired direction, and taking corrective action

when and where necessary

y Making sure what you want to happen does indeedhappen!



C ontroll ing Decisions (..contd.)y THE QUALITY AND QUANITY OF CONTR OLLING

DECISIONS DEPENDS A GREAT DEAL ON THEQUALITY OF PREV IOUSLY MADE PLANNING,ORGANIZING AND DIRECTING DECISIONS

y The better the planning, organizing and directing, thebetter will be controlling!

The Well Balanced



The Well BalancedOrganisation



I

n conclusionall else fails th

en..



Organizational BehaviorOrganizational Behavior

--Prof.Prof. RutujaRutuja JadhavJadhav



Organizational BehaviorOrganizational Behavior

y Study of Human Behavior

y Study is about behavior in org.

y Knowledge of Human Behavior would be useful inimproving an orgs effectiveness

DefinitionsDefinitions



DefinitionsDefinitionsy OB refers to behavior of individuals & groups within

org. & interaction between organizational members &their external environment.

y OB is the field of study & application of knowledgeabout how people as individuals or groups act within

the org.y OB is a complex & exciting field of knowledge, in the

management of people at the organizational setup.



Features of OBFeatures of OB

y OB is the study of human behaviour

y The study is about the behaviour in organisations

y Knowledge about human behaviour would be useful inimproving an organisations effectiveness



Importance of O.BImportance of O.By Provides road map to our lives in org.

y Tool for human benefit

y Technique to improve human productivity in org.

y Vital for managerial work

y

Describes complex human behaviory Helps to understand organizational events

y Helps to maintain cordial industrial relations

Models of OBModels of OB



Models of OBModels of OB

1. Autocratic Model:-

y In this model disobedient employee will be penalised.

y Model depends upon power .

yManagement does the thinking process and employeesobey the orders.

y Employees feeling of insecurity, frustrations andaggressions towards authorities are the outcome of autocratic model

y R elationship among community members get disturbed.

y As a result increase in Welfare facilities.

2 The Custodial Model:-



2. The Custodial Model:

y This model leads towards employee¶s dependency on the

organisation, rather than on the boss. y Employees depend on organisations for their security and

welfare.

y Managerial orientation is towards money to pay wagesand benefits.

y Model leads to security and satisfaction of workers

y Happy employee is not necessarily the most productiveemployee.

3 The supportive model:-



3. The supportive model:-

y This model does not depend on power or money, butdepends on leadership.

y In this approach it is assumed that workers are not passiveand resistant to organisational needs

y Through effective leadership managements approach is tosupport the employee¶s job performance.

y This model leads to employees feeling of participation andtask involvement in the org.



4. Collegial Model:-

y This model depends on managements building a

feeling of partnership with employees.y Managerial orientation is towards teamwork, sense of

responsibility.

y Outcome of the collegial approach is cultivation of

self-discipline among employees.

A t ti C t di l S ti C ll i l



Autocratic Custodial Supportive Collegial

Basis of Model

Power EconomicResources

Leadership Partnership

Managerial

orientation

Authority Money Support Teamwork

E¶ee

Orientation

Obedience Security

and

Benefits

Job

Performance

Responsible

Behaviour

E¶eepsychologic

al Results

Dependenceon boss

Dependence on

organisati

on

Participation Self-discipline



Autocratic Custodial

Supportive Collegial

E¶ee needs

meet

Subsistence Security Status &

Recognition

Self

Actualisation

Performance

Results

Minimum Passive

Cooper

ation

Awakened

Drives

Moderate

enthusiasm

yySOBC MODELSOBC MODEL



S- Stimulus

O- Organism

B- BehaviorC- Consequence

yySOBC MODELSOBC MODEL



MotivationMotivation

CHAPTER 2CHAPTER 2

Motivation



Motivationy The process that account for an individual¶s intensity,

Direction and persistence of effort toward attaining agoal

y Desire to succeed

y Motivation is a set of forces that cause people to behavein a certain way.

y Performance = ability X motivation



Importance of Motivationy Better performance ± Increased Productivity

y Quality output

y Increase in efficiency

y Increase in Job Satisfaction

y R eduction inA bsenteeism

y R eduction in Labour Turnover

y Healthy relations between employee and employer

y Increase in Loyalty

T f M ti



Types of Motives

y Primary Motives:- which are unlearned

Physiological, Biological

Eg:- Hunger, thirst, sleep, avoidance of pain.

y Secondary motives:- which are learned

Eg:- Need for achievement, Power, Affiliation, Security,

Status



Motivatorsy Financial

Wages

B

onusProfit sharing

Leave with pay

Reimbursements



Motivators-Non financialy Appraisal

y Recognition

y

Statusy Competition

y Authority

y Participation

y Job security

y Job enlargement

y Job enrichment

y Job rotation

y Moral support

y Quality of work life

y Flexi time

y Job sharing



Maslows Theory of Needsy Hierarchy of needs

Physiological

Esteem

Self-

actualization

Social (Love)

Safety & Security

Air, Food, Drink,Shelter, Basic Needs

Protection, Security, OrdLaw, Stability

Family, Affection, Relationship, Work Groups

Achievements, Status,Responsibilities, Reputation

Personal Growth & Fulfillment



Food, Clothing, Shelter, Self-support

Physiological Needs

Equitable compensation, Good working

conditions, Efficient flow of work

Security, Favoritism, Due Process

Safety Needs

Pensions, seniority, Insurance plans,

Grievance procedure

Friendship, Group membership,

Interaction with others

Social needs

Group cohesiveness, Teamwork,

Opportunity to interact with others.

Self-respect, responsibility,

Importance.

Esteem Needs

Participating in important

decisions, High status, R ecognition.

Full use of abilities

Independence

Total self-direction

Self-actualization needs

A ble to be creative

Performing work that is

preferred

Merits



y Theory provides various factors for motivation

y Theory focuses on both the interpersonal andintrapersonal variations in human behaviour

y Theory provides base to the managers for motivation

y

Theory can be applicable to all class of workers

Limitations



y Needs are not measurable

y Difficult to follow of hierarchy

y Individual differences

y Availability of time to diagnose each level need

b ' h f



Hertzberg's theory of motivationy

Motivation hygiene theory/Dual Factor Theory y Frederick Hertzberg carried out survey of 200

accountants and engineers

y When did you feel particularly good about your job?

y

When did you feel exceptionally bad about your job?y It was found that factors which made respondents feel

good were totally different from those which madethem feel bad

H b ' T F Th



Hertzberg's Two Factor Theory

Hygiene factors (Extrinsic)

Policy & Admin

Supervision

Salary

Interpersonalrelationship

Working condition

Motivators (Intrinsic)

Recognition

Achievement

Work it self

Responsibility

Advancement



y Intrinsic Factors/Motivators Job Satisfaction

1. Achievement

2. Recognition of achievement

3. Work itself

4. Responsibility 5. Advancement

6. Growth

y Extrinsic Factors/Hygiene Factors :- Job



Extrinsic Factors/Hygiene Factors : JobDissatisfaction

1. Company policy & Administration

2. Supervision

3. Interpersonal Relations

4. Working Conditions5. Salary

6. Status

7. Security

Mc Gregor's Theory X And Theory Y



g y y

Assumptions for theory X

1. Employees inherently dislike work and whenever possible will attempt to avoid it

2. Since employee dislike work they must be coerced,controlled or threatened with punishment to achieve

goals3. E¶ee will avoid responsibilities and seek formal directionwhenever possible

4. More workers place security above all other factorsassociated with work and will display little ambition.

Assumptions as per theory Y



Assumptions as per theory Y

y E¶ee can view work as being as natural as rest to play.

y People will exercise self-direction and self-control it

they are committed to the objectives

y The average person can learn to accept, even seek

responsibility

y The ability to make innovative decisions is widely

dispread throughout the population and is not

necessarily the sole province of those in mgmt positions

Evaluation



y As per theory x human beings are basically negative

y As per theory Y human beings are basically positive

y Identification of individual characteristics

y For motivation:- Participative Decision making,

Responsible and Challenging Jobs, Good GroupRelations will motivate the employees.

Vrooms Expectancy Theory



Vroom s Expectancy Theory

y VroomsE-to-P

Expectancy P-to-O

Expectancy

Outcomes& Valences

Outcome 1Outcome 1+ or+ or --

EffortEffort PerformancePerformance





VroomsyEfforts Individual performance

Organizational rewards

Personal goals



Expectancy theory in practicey Increasing the E-to-P expectancy

y training, selection, resources, clarify roles, providecoaching and feedback

y Increasing the P-to-O expectancy y Measure performance accurately, explain how rewards

are based on past performance

y Increasing outcome valencesy Use valued rewards, individualize rewards, minimize

countervailing outcomes



GroupsGroupsy Collection of individuals who have mutually

dependent relationship.

y A collection of two or more interesting individuals with a stable pattern of relationships between them, who share common goals & who perceive themselvesas being group.



CharacteristicsCharacteristics

InteractionInteractionamong membersamong members

People seePeople see

themselvesthemselvesas a memberas a member

SharedShared

GoalsGoals

Two orTwo ormoremore

peoplepeople

Group CharacteristicsGroup Characteristics

Types of GroupsTypes of Groups



yp pyp p

Change of Change of

MembershipMembership

Stages of Group Development



Awareness, Commitment, Acceptance

Conflict, Clarification,Belonging

Cooperation,Development, support

Productivity, Achievement,Pride

Separation, Recognizing,

Satisfaction



Why People Join Groups??y Interaction & Influence

y Security

y

Esteemy Affiliation

y Power

y Identity



Group Dynamicsy Group dynamics is the study of groups, and also a

general term for group processes.

y Relevant to the fields of psychology, sociology, andcommunication studies, a group is two or moreindividuals who are connected to each other by socialrelationships

h



Group Cohesivenessy It is the degree to which members of group are

attached to & motivated to remain part of group

y Group Cohesiveness can be affected by:

1. Interaction2. Threat

3. Co-operation

4. Shared Goals

5. Attitudes & Values6. Size of Group

Advantages Di d



y Increased morale

y Higher productivity

y Better Communication

y Similarity

y Influence

y Group Think-people loosesight of group goals

y Lower productivity- whenperformance norms arelow

Advantages Disadvantages



Team Building

Meaning of Team

Team is a small no. of people who are committedto a common purpose, common performance goals, &

an approach for which they hold themselves mutually accountable.

Characteristics of Teams



Characteristics of Teams

yEmpowered to share management & leadershipfunctions

y Plan, control & improve their own work processes

y Set their own goals & inspect their own work

y Create their own schedules & reviews performancey Prepares own budgets & coordinates with other

departments

Groups vs Teams



Groups vs. TeamsGR OUPS

y Performance based on individualmembers

y Individual performance isconsidered while rewarding

y Share common goal

y Groups are required to beresponsive to demand frommanagement

y Influenced by Management

TEAMSy Performance depends on both

individual & team members

y All team members represents their joint contribution

y Share common commitment topurpose

y Freedom & f lexibility to do job without interference

y Self Managing & autonomous

Importance of Team-Building



Importance of Team-Building

y Enhances performance

y Employee Benefits

y Reduced Costs

yImproved Processes-Coordination among members

y Contributes to global competitiveness to org.

y Increased Innovation

y Creativity & Flexibility



Types of TeamsTypes of TeamsTEAMS

WOR K TEAMS

PROBLEMSOLVING

TEAMS

MANA GEMENTTEAMS

VIRTU ALTEAMS



Effectiveness of TeamIt depends ony Cooperation

y Trust

y Communication

y Support

y Respect

y Fairness

y Predictability

y Competencey Leadership In Teams

y Training

y Rewards

Ways for Effective Teamwork



Ways for Effective Teamworky

Make team highly focusedy Handle conflicts

y Actively participate & encourage others

y Keep sensitive issues private

y Communicate openly & positively

y Monitor what is going on within team

y Work with underperformers to keep them in flow

y Energize team when motivation is lowy Be supportive of your team members

Conflict Management



Conflict Management WHAT IS A CONFLICT?

It is disagreement

Opposition arising from disagreements due toinconsistent objectives, thoughts, or emotions withinor among individuals, teams, departments ororganizations.



Effective Negotiation1. Understand and predict the strategy of the opposingparty

2. Create a climate of trust

3. Start with the positive approach. yield to minordifference.

4. Address issues .Not the individual.

5.B

e a good listener.



Modern viewy Human relationist recognized the inevitability of

conflict and advised managers to live with it.(1970)

y OB specialists realized conflict had both positive &

negative outcomes, depending on its nature&intensity.

Functional v ersus Dy sf unctional

Conflict



Conf lict

Functional Conflict

Conflict that supports the goals of the groupand improves its performance.

D ysfunctional Conflict

Conflict that affects group

performance.(Negative)

(Positive)

Levels & Sources of ConflictLevels & Sources of ConflictIntergroup Conflict



Intergroup Conflict

Changes within each

group

Task Interdependence

Task Ambiguity

Goal incompatibility

Limited resources

Reward system

Changesbetweengroup

Intra-Group Conflict

Disputes among group members

Interpersonal Conflict

Conflict between two individuals

Intra-Personal Conflict

Conflict from frustration,Goal Conflict, Role Conflict

OrganizationalConflict

Within groups,

depts, sections

Between two

people in org

Among some/

all groupmembers

Within Individual

PsychologicalD ynamics of

Individuals Mind



Process of C

onflict

LatentConflict

PerceivedConflict

FeltConflic

t

ManifestConflict

FunctionalConflict

D ysfunctionalConflict

Conflict Management StylesConflict Management Styles



Uncooperative

Forcing

Avoidance

Collaboration

Smoothing

Person¶s desire to satisfy own concerns

Compromise

Cooperative

Assertive

Unassertive

P e r s o n ¶ s d e s i r e

t o s

a t i s f y

c o n c e r n s o

f o t h e r s

AVOIDANCE STYLE (Withdrawing)

I d ¶t h h ti



I don¶t have enough time

I don¶t have enough facts

Perhaps the best way is to proceed as you think

best

Criticism:The conflict is not solved

Example situations where avoidance style is appropriate

Minor issues

Inadequate facts and power

Others can more effectively resolve the conflict

SMOOTHING STYLE

(Self-Sacrificing Style)



(Self Sacrificing Style)If it makes others happy, I wont challenge their views

I don¶t want to hurt the feelings of others

We should not risk our friendship, so let¶s not worry too much

about the problem, things will work out

Criticism: It encourages individuals to cover-up or gloss over

their feelings

Example situations where smoothing style is appropriate

Emotional conflicts

Talented employees

FORCING STYLE (Fighting)



If you don¶t like the way things are run get out

If you cant learn to cooperate, I am sure others who will, can be hired

Criticism:The subordinates¶ interests are ignored. The conflict is not analyzed

Example situations where forcing style is suitable

Inadequate time

Stopping people from taking advantage of him/her

COMPR OMISE STYLE



I let other people win something, if they let me win something

I try to find out a position between theirs and mine

Criticism: people may encourage compromise on stated issues rather than on real

issues

Example situations where compromise style is acceptable

It is not possible to achieve a win-win agreement

When conflicts block important agreements

COLLABOR ATIVE STYLE

(Mutual Problem Solving)



I try to get all view points & issues out in the open

Best alternatives must be arrived through analyzing

Criticism: It is not suitable when win-win situation is not possible

Example situations where this style is appropriate

The parties disagree over the best means to achieve the common goals

When there is a need for high-quality decisions



Effective Negotiation1. Understand and predict the strategy of the opposingparty

2. Create a climate of trust

3. Start with the positive approach. yield to minordifference.

4. Address issues .Not the individual.

5. Be a good listener.



WHAT IS STRESS

S i i f h di b ¶ h l h



y Stress is any interference that disturbs a person¶s healthy

mental and physical well-being.It occurs when body isrequired to perform beyond its normal range of capabilities.

y Stress is your mind and body¶s response or reaction to a real

or imagined threat, event or change

STRESS IS THE PRESSURE PEOPLESTRESS IS THE PRESSURE PEOPLE

FEEL IN LIFEFEEL IN LIFE



Types of Stress

y Positive Stress

y Negative Stress

Positive Stress



Positive Stress

Positive stress occurs when your level of

stress is high enough to motivate you to

move into action to get thingsaccomplished.

DISTRESS/ Negative Stress



Distress or negative stress occurs when your level of

stress is either too high or too low and your body

and/or mind begin to respond negatively to the

stressors.

Emotional Signs of Stress



g

RejectionRejection

FearFear

DepressionDepression

SorrowSorrow

AngerAnger

WorryWorry

UncertaintyUncertainty

HopelessnessHopelessness

HelplessnessHelplessness

Feeling lostFeeling lost

Wishing to hideWishing to hide

AnxietyAnxiety

PanicPanic

InappropriateInappropriateEmotionsEmotions

Cognitive Signs &

Symptoms



Symptoms

Difficulty in Making Decisions

Conf usion

Difficulty in Naming Familiar Items

Poor Concentration

Blaming Others

Memory Problems

Replaying Events Over & Over

Behavioral Signs of Stress



Behavioral Signs of Stress

Withdrawal

Suspiciousness

ExcessiveHumor or Silence

Increased Smoking, Alcohol or Food

Change inActivity Level

Angry Outbursts

Crying Spells

CAUSES OF STRESSS



y POOR WORKING CONDITIONS

y SUSTAINED CONFLICTS

y INTENTIONAL HARR ASSMENT

y DISTR UBING EVENTS

y FAMILY ISSUES

JOB Related CAUASES OF STRESSJOB Related CAUASES OF STRESS



1. NEW WORK PROCEDURES

2. WORK OVERLOAD3. TIME DEADLINES

4. POOR QUALITY OF SUPERVISION

5. INSECURE CLIMATE

6. ROLE AMBIGUITY/ ROLE CONFLICT7. JOB NOT WELL DEFINED

8. INADEQUATE AUTHORITY

9. DIFFERENCE IN VALUES

10. ROTATING SHIFTS11. RELATIONSHIPS AT WORK

Relaxation TechniquesRelaxation Techniques



Abdominal Breathing Abdominal Breathing Active Progressive Muscle Relaxation Active Progressive Muscle Relaxation

VisualizationVisualization

Self Self--Analysis Analysis

Meditation Meditation

Music Music

Stretching Stretching

Exercise Exercise


http://slidepdf.com/reader/full/ppmob-sem-i 156/192Factors that influence



Individual Be

havior:

y Biographical Characteristics

y

Abilities

y Personality

y Emotional Intelligence

Biographical Characteristics



y These variables are more manageable when it comes to

finding and analyzing variables that have an impact onturnover, satisfaction, etc.

y Age- older workers are less likely to resign

y G

ender - women have higher rates of absencey Marital Status Married employees have fewer

absences, less turnover, & more satisfied.

y Tenure- negatively related to turnover, positively

related to satisfaction



Who Cares what value do biographical characteristics have

for managers and organizations?

y It can help in making choicesamong job applicants.

Abilities



y Intellectual Abilitiesy That required to do mental activities.

y *Found to be strong predictors of future jobperformance.

y Physical Abilitiesy That required to do tasks demanding stamina,

dexterity, strength, and similar characteristics.

Ability-Job Fit



y The Ability - Job Fity Employee performance is enhanced when there is a

high ability - job fit.

y We need to keep this in mind from an HR

perspective as well as an individual trying to make a job decision.

y What predictions can we make if the fit is poor?y If employees lack the required abilities?

y If employees abilities far exceed the requirements of the job?



Personalityy What is Personality?

y The sum total of ways in which an individual reacts toand interacts with others

y Measurable traits that a person exhibits.y An enduring combination of motives, emotions, values,

interests, attitudes and competencies.

Determinants of Personality



y

Heredity/ Physiological Determinantsy physical differences, IQ, potential, temperament

y Environment

y culture, norms of family, friends & social groups,other influences

y Situationy in class vs. at a party y on-the-field/court vs. off-the-field/court

Personality Traits



y Myers-Briggs Type Indicator

y Extraverted/Introverted

y Sensing/Intuitive

y Thinking/Feeling

y Judging/Perceivingy Big 5 Model

y Extraversion

y Agreeableness

y Conscientiousness

y Emotional stability

y Openness to Experience

Type As & Type Bs



y Type A Personality y Always moving, walking, and eating rapidly.

y Feel impatient with the rate at which most events take place.

y Strive to think or do two or more things at once.

y Cannot cope with leisure time.

y

Are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire.

y Type B Personality y Never suffer from a sense of time urgency with its accompanying

impatience.

y Feel no need to display or discuss either their achievements or

accomplishments unless such exposure is demanded by the situation.y Play for fun & relaxation, instead of exhibit their superiority at any cost.

y Can relax without guilt.

Why is it important that we understand

personality & individual differences?



personality & individual differences?

y To help you learn more about the dimensions of your own personality.

y To understand why individuals think, feel, and actdifferently.

y To help managers create a good fit betweenpeople and jobs.y B y selecting people with the right attributes

y B y redesigning jobs to fit individuals strengths

y To help organizations create a good person-organization fit



Wh

at is Personality?s People differ from

each other in

meaningful ways

s People seem to showsome consistency inbehavior

Personality is defined as distinctive and relativelyenduring ways of thinking, feeling, and acting

Personality



y Personality refers to a persons unique andrelatively stable pattern of thoughts, feelings,and actions

y Personality is an interaction between biology and environment

y Genetic studies suggest heritability of personality

y Other studies suggest learned components of personality



F Th i f P lit



Four Theories of Personality

1. Trait

2. Psychoanalytic

3. Humanistic

4. Socio-Cognitive

The First Trait Theor



The First Trait Theory

y Two Factor TraitTheory of Personality

UNSTABLE

STABLE

cholericmelancholic

phlegmatic sanguine

INTROVERTED EXTRAVERTED

Moody

Anxious

Rigid

Sober

Pessimistic

Reserved

Unsociable

Quiet

Sociable

Outgoing

Talkative

Responsive

Easygoing

LivelyCarefree

Leadership

Passive

Careful

Thoughtful

Peaceful

Controlled

Reliable

Even-tempered

Calm

Touchy

Restless

Aggressive

Excitable

Changeable

ImpulsiveOptimistic

Active

Personality Traitsy Traits are relatively stable and consistent personal



y Traits are relatively stable and consistent personal

characteristicsy Trait personality theories suggest that a person can

be described on the basis of some number of personality traits

y Allport identified some 4,500 traits

y Cattel used factor analysis to identify 30-35 basic traits

y Eysenck argued there are 3 distinct traits in personality y Extraversion/introversion

y Neuroticism

y Psychotocism

Allport

Overview of the Big 5



Evaluating Trait Theoryy Trait theory especially the Big 5 model is able to



y Trait theory, especially the Big 5 model, is able to

describe personality y Cross-cultural human studies find good agreement for

the Big 5 model in many cultures

y Appear to be highly correlated not only in adulthood, but

also in childhood and even late preschoolersy Three dimensions (extraversion, neuroticism and

agreeableness) have cross-species generality

y Problems with trait theory include:

y Lack of explanation as to WHY traits developy Issue of explaining transient versus long-lasting traits

Psychoanalytic Theoryy Psychoanalytic theory, as devised by Freud, attempts to



y y y, y , p

explain personality on the basis of unconscious mentalforces

y Levels of consciousness: We are unaware of some aspectsof our mental states

y

Freud argued that personality is made up of multiplestructures, some of which are unconscious

y Freud argued that as we have impulses that cause usanxiety; our personality develops defense mechanisms toprotect against anxiety

TheThe JohariJohari WindowWindow

The Johari Window is a model that can be used to improve understanding



The Johari Window is a model that can be used to improve understandingbetween individuals within a team or in a group setting. Based on disclosure,

self-disclosure and feedback, the Johari Window can also be used to improve agroup's relationship with other groups.

Developed by Joseph Luft and Harry Ingham (the word "Johari" comes fromJoseph Luft and Harry Ingham), there are two key ideas behind the tool:

1.That individuals can build trust with others by disclosing information aboutthemselves.

2.That they can learn about themselves and come to terms with personalissues with the help of feedback from others.

By explaining the idea of the Johari Window to your team, you can help team

members understand the value of self-disclosure, and gently encouragepeople to give and accept feedback. Done sensitively, this can help people

build more-trusting relationships with one another, solve issues and workmore effectively as a team.

Johari window model is a behavior model which is based on Four-Squaregrid representing four different areas of people interaction.



Explaining the Johari Window:The Johari Window model consists of a foursquare grid (think of taking a piece of paper and

di iding it into fo r parts b dra ing one line do n the middle of the paper from top to bottom



dividing it into four parts by drawing one line down the middle of the paper from top to bottom,

and another line through the middle of the paper from side-to-side). T

Using the Johari model, each person is represented by their own four-quadrant, or four-pane,

window. Each of these contains and represents personal information ± feelings, motivation, etc.

± about the person, and shows whether the information is known or not known by themselves or

other people.

The four quadrants are:

Quadrant 1: Open Area

What is known by the person about him/herself and is also known by others.Quadrant 2: Blind Area, or "Blind Spot"

What is unknown by the person about him/herself but which others know. This can be simple

information, or can involve deep issues (for example, feelings of inadequacy, incompetence,

unworthiness, rejection) which are difficult for individuals to face directly, and yet can be seen by

others.

Quadrant 3: Hidden or Avoided Area

What the person knows about him/herself that others do not.Quadrant 4: Unknown Area

What is unknown by the person about him/herself and is also unknown by others.

The process of enlarging the open quadrant vertically is called self-disclosure, a give and take

process between the person and the people he/she interacts with.

As information is shared, the boundary with the hidden quadrant moves downwards. And as

other people reciprocate, trust tends to build between them.



TransactionalAnalysis (T.A)

TA: INTR ODUCTION

Every Man¶s Psychology, People Technology



Scientific Basis, 3R

Explains individual differences and behaviour

Model for studying interpersonal relationships

Framework for Analysing Communication

problems

Helps in dealing with a variety of people

A framework for change

Addressing Human

R ights Issue «

T.A Assumptions:

It is possible to analyse behaviour in a systematic



way;

The past influences present behaviour;

We can always change;

The quality of interpersonal relationships influencesthe quality of

organizational and cultural life;

We are ultimately responsible for our own feelingsand behaviour .

Three philosophical concepts of T.A.

Respect for the dignity of all human beings



R espect for the dignity of all human beings

and empathic acceptance of them as people.

People at all ages and stages of development

are capable of learning to take responsibilityfor their decisions and actions

Educational difficulties can be addressed

effectively with co-operative goodwill and acoherent theoretical framework .

EGO STATES

Critical ParentParent

makes rules and sets limits

disciplines, judges and



Nurturing Parent

Parent

(Recording of earlyexperiences unique

to a person)

disciplines, judges and

criticizes

advises and guides/protects

& nurtures

concerned with data and facts

considers options and estimatesprobabilities

makes unemotional decisions

plans and makes things happen

Free (Natural) Child

Adapted Child

Rebellious Child

Child f un-loving and energetic creative

and spontaneous

Compliant and polite

Rebellious and manipulative

(Recording of internal

events in response to

external events)

Adult

(Reality testing rational

behaviour, problem

solving)



CHANGE CHANGE

MANAGEMENTMANAGEMENT



What is a Change?

Something different from what is existing

Why is change management so

hard?



hard? R ace to ov ercome the Market

Globalization

Technolog y Complexity

What are the business benefits of

change management?



g g Change management helps to low er risks associated w ith

change

Strategic benefits

Increased internal teamwork and external end-user satisf action

Barriers To Changeself interest



self interest

Misunderstanding

Low tolerance of change

Disagreement over the need for change

Organizational barriers to change

Individual barriers to change

Inappropriate change management

Ways to Manage Change Effectively

´B Al F Th Fi Si Of CHANGEµ



y ´Be Alert For The First Signs Of CHANGEµ

y ´Accept CHANGE As A Fact Of Life.µ

y ´Always Look At The Opportunity That ChangeRepresentsµ

y ´Surround Yourself With People Who Are Open To

CHANGE µ

y ´Keep Renewing Yourselfµ I.e. ´Manage Learningµ

y ´Get healthy then stay healthy.Eliminate the tolerations in your life.µ

y ´Manage The Process.µ

y ´Manage Uncertainty.µ

y ´ Play To Win.µ



EVERYONE THINKS OF CHANGING THEEVERYONE THINKS OF CHANGING THE

WORLD, BUT NO ONE THINKS OFWORLD, BUT NO ONE THINKS OF

CHANGINGCHANGING HIMSELFHIMSELF----LEO TOLSTOYLEO TOLSTOY



All The Best«..

ppm.ob sem i

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