3. UNIT - I
Organizational behaviour – definition –
features of Organizational behaviour –various
approaches to study of Organizational
behaviour –process of Behaviour- Models of
UNIT – II
Group dynamics-definition –types of groups –
theories of group formation –problems of
informal groups –group norms -types ,meaning
of group cohesiveness –five stages of group
4. UNIT - III
Definition of Motivation -Theories of motivation –
Maslow’s needs Hierarchy theory, Alfred’s ERG
theory, Herzberg motivation theory. Motivational
UNIT – IV
Definition of morale-factors affecting morale –
cause of low morale – factors improving morale –
Measurement of Morale.
UNIT – V
Meaning of Change –forces for changes –types of
changes –managing planned change –planning,
assessing and implementing the change –causes
of resistance to change –overcoming resistance to
6. Introduction & Background
The productivity of Americans went low
1948 to 1966 – 2.8%
1966 to 1973 – 1.6%
1973 to 1978 – 0.8%
Inflation & rising cost
Employees unwillingness to work up to
their fullest capacity
Lot of studies were undertaken to focus on
the above problems
Better Working condition will lead to
8. Management Comprises of
1. Technical & Managerial expertise in
accountancy or engineering or marketing.
Technical Competence was high
2. Conceptual comprises of ideas which
was also high among managers
3. Human relations aspect – Managers
ignored them and did not have much idea
9. Traditional Approaches
Employees lazy, interested in making
money and money will give the motivation
to increase the productivity. Focus was on
Traditional approach did not work in
Human aspect was overlooked
10. OB Assumes
Employees behaviour complex
Widely accepted OB – widely accepted to
OB is a study of human behaviour in
organizatoion with a view of stimulating
human performance to achieve
organizational objectives as well as
Keith Davis - “OB is an academic
discipline concerned with understanding
and describing human behaviour in an
organizational environment. OB seeks to
shed light on the whole, complex human
factor in organizations by identifying the
causes and affects of human behaviour.
12. Historical overview of OB
(Egyptians and Romans)
mgmt in practice before
Adam Smith (factors of
J.B. Say (Entrepreneurial
13. 1850’s – 1920’s Captains of Industry
1. William C. Durand
(Founder of GM, Autocratic
leadership let to loss of $100
million) (refused to utilise
2. J.P. Sloans was made MD
for GM bought by DuPond
3. Henry Ford
(specialization, division of
Labour, paid incentives and
4. John T Rockfeller
F.W. Taylor (Division of
Frank Gilberth & Henry L.
Gnatt (Techniques involving
time and Motion study)
Henry Fayol (Father of
Scientific Management –
Getting things done through
Human relations movement
– Great depression
– Labour Movement
– Hawthrone Studies
15. 1970’s to Present OB Approaches
HRM (Treat people as
human being, acknowledge
their needs and belongings,
involving division of labour,
good working condition –
Motivation morale will
increase will lead to better
16. Nature of OB
A field of study and not a discipline
An applied Science
Humanistic and Optimistic approach
Normative and Value centred
Oriented towards organizational objectives
Total systems approach
17. A field of study and not a discipline
A discipline is an accepted science with a
theoretical foundation that serves as the
basis for research and analysis.
OB because of its broad sense and recent
emergence and interdisciplinary orientation
is not accepted as a science. Thus a field of
study and not a discipline
18. Interdisciplinary approach
Draws heavily from psychology, sociology
and anthropology plus from relevant things
like economics, political science,L&
OB is an integrates the relevant contents of
19. An applied Science
OB is an application of various researches
to solve organizational problems relevant
to human behaviour aspect.
OB concentrates on applied researches
carried out in Laboratory situations and
controlled conditions meant for general
applications in organozations.
20. Humanistic and Optimistic approach
Belief that needs and motivation of people
are of high concern.
Acceptance of individuals as a thinking,
feeling organism, optimum of man to be
independent, creative, productive and
capable of contributing positively to the
objectives of the organization.
21. Normative and Value centred
Normative science suggests only cause –
effect relationship which can be applied to
get organizational results acceptable to the
society or individuals engaged in an
23. Total systems approach
Living system of organization if viewed as
an enlargement of a human beings.
It takes in account all the variables
affecting organizations functions.
Organizational analysis is developed by
OB does not takes human being in
isolation but as product of socio
psychological factors like psychology,
interpersonal orientation, group influence,
social and cultural factors
24. Role or Features of OB
human behaviour Controlling &
1. Individual Level
cultural & others)
1. Use of Power &
Sanction (Action to punish
2. Leadership (Ability to
command and guide others)
(relationship between persons,
role analysis, transactional
3. Group Level
Norms, Cohesion, Goals,
Leadership & membership
(Communication effectively to
4. Inter group level
interaction, rotation of
members among group, win-
4. Organizational Climate
(Refers to the total
affecting human behaviour)
25. Approaches to OB
Changes in training or paying leads to more
Hawthorne Studies proved the treatment of
employees & behaviour of supervisors
towards subordinates will increase
productivity (Group Behaviour)
How the employees are treated , groups let to be
26. Types of Approaches
1. Human resource approach
HR is a central force and its development
contributes to the success of the
HR provides changes in managerial role
Instead of controlling provides active
support to employees as a group
Employees given opportunities,
encouragement develop as matured adults
which leads to attainment of individual
goals & Organizational goals
27. 2. Contingency approach
There is no single way to manage
effectively under all circumstances.
Organizational structure functioning
depends up on external environment and
Effective management varies from various
situations, individuals and groups in an
Job and technological environment facing
the organization and its various structures
28. 2. Contingency approach Contd….,
The management task is to identify the
method of leadership to bre adopted
depending upon the situation,
circumstances and time best suitable to the
attainment of organizational objectives.
29. 3. Productivity approach
It is the numerical value of the ratio of
Output : Input
Higher ratio value indicates greater
efficiency and effectiveness which depends
upon the pay.
Lower the ratio suggest workers
inefficiency, social economical issues.
Therefore the greater the treatment of
employees greater will be the productivity
30. 4. Systems approach
Organization is a powerful system with
several subsystems which are highly and
closely inter connected.
An action taken to solve a problem in one
subsystem will have an effect on the other
This approach suggest a manager should
view an organization as a whole before
taking any decissions.
31. Process of Behaviour
The behaviour of an individual is caused
by number of variables.
Depending upon these variables the
following specific process of behaviour
have been developed.
32. S-R Model: ( Stimulus – Response)
The human behaviour as per this model are of
1. Internal feeling – internal feelings are the
requirements of a persons day to day
2. External environment – This internal feeling
depends upon the external environments like the
availabilities of so many facilities of the
These various factors are called stimulus which
directly influences the activity of a person . There is a
direct relationship between stimulus and response
that’s why this process is called S-R Process.
34. R-S Model
Response leads to Stimulus.
This approach states that first a person
experiences a response. Depending upon
this response it leads to stimulus.
35. S-O-B-A Model
S-O-B-A Model is a comprehensive model of
human behaviour which combines S-R
situation and human being.
S – Stimulus which includes aspects like
environment- immediate stimulus, physical
environment and socio-cultural environment.
O – Organism in a person which includes
Physiological being as well as the process
within the person. e.g. heredity, maturity,
knowledge, skills, personality, perception and
36. B – Behaviour including both overt and
covert behaviour such as body movements
– talking, facial expression, emotions,
sentiments and thinking.
A stands for Accomplishment and
37. Models of an Organization
Model is a technique helps to understand complex
things and ideas of human behaviour.
OB is a study of human behaviour of an organization
where an interface between human behaviour and
organization is analysed.
A number of variables complicate the ability of the
managers to understand and manage people
Different models are being followed by the
management based on certain assumptions.
38. Various models of OB
– Normative model
– Empirical model
– Neo-Ecological model
– Ideo graphic model
– Nomothetic model
39. Autocratic model
The entire power is with the superior
Power is defined as the ability to influence flow
of available energy and resources towards certain
Employees are expected to obey what the
It is concerned with authority in an autocratic
Successful in situations where workers are lazy.
Employees feel insecure and afraid.
In today’s world autocratic model is not
applicable and management cannot afford to
threaten the employees.
40. Custodial Model
The insecurity, frustration felt by the workers and
autocratic lead to aggression which paved the
way for development of a new model known as
success of an organization depends upon the
economic resources to reward the employees.
Employees depend on the organization for their
welfare and their development.
Employees are satisfied and happy.
There is security and satisfaction for employees.
This model is quiet difficult to adopt for it
depends upon the material reward
41. Supportive model
Originated from the principles of
It depends upon the leadership
(Democratic instead of Autocratic) where
the employees are helped to grow.
Leader assumes the employees to take
Should support the job performance of the
Safety needs of the employees are to be
taken care of.
42. Collegial model
It is an extension of supportive model.
The dictionary meaning of Collegial model is “a
body of Persons having a common purpose”.
This based on the partnership between employees
It provides favourable climate to work where
employees are also the part of the management.
It indicates high morale and employees accept
Workers have high job satisfaction, job
involvement, commitment and a sense of
43. Other Models
a. Normative model
seeks to find out solutions for problems
like what should be done to produce
It is concerned with more actions
b. Empirical Model
Describes the activities of the employees
like actually what they perform.
Integral part of OB for it is concerned with
what is actually taking place in an
organization and how do people actually
44. Other Models Contd.......,
c. Neo-Ecological Model
Deals with the changes which takes place
in the environment and understand the
complexity of environment.
Environment is dynamic in nature and
hence the organizations are also forced to
45. Other Models Contd.......,
d. Ideo graphic Model
Helps to deal with specific cases or unique
situations called ideo graphic model
e.g. Single nation , single Organization, single
This model is unique when the organizations are
of very small micro level.
46. Other Models Contd.......,
e. Nomothetic model
Deals with general situations on the macro
It is concerned with theory building on
macro level organizations like
generalization, laws, hypothesis etc......,
which indicates the regularity of behaviour
and correlation between different variables.
49. DEFINITION OF A GROUP
• In a layman’s view, a number of people together at a given
place and given time can be considered as a group.
• However, from the organisational point of view a group has two
different meaning and definition
• In a broad sense, a group is any collection iof individuals who
have mutually dependent relationship.
• Aformal definition of group is that “it refers to a collection of
two or more individuals with a stable pattern of relationships
between them; who share common goals and who perceive
themselves as being a group.
50. • According to Marvin Shaw
• “A group is two or more persons who are interacting
with one another on such a manner that each persons
influences and is influenced by each other person.
51. DEFINITIONS OF GROUP DYNAMICS
• Group dynamics is concerned with the interaction
of individuals in a face to face relationship.
• The social process by which people interact face
to face in small group is called group dynamics.
52. • Kurt Lewin popularised this term in 1930s, but throughout the years
different connotations have been attached to it.
• One Naormative view is that group dynamics describes how a group
should be organised and conducted. Democratic leadership, member
participation and overall coopertion are stressed.
• Another view takes group dynamics as a set of techniques. Here role
playing, brain stroming, buzz groups, leaderless groups, group therapy,
sensitivity training, team building, transactional analysis and the Johari
Window are traditionally equated with group dynamics.
53. • Athird view is the closest to Lewin’s original conception.
Group dynamics is viewed from the perspective of the
maternal nature of groups, how they form, their structure
and process and how they function and affect individual
members, other groups and the organization. This view is
more prevalent and this chapter is devoted to the third
view of group dynamics.
55. Formal Groups
• Formal groups are defined by organization’s structure, with
designed work assignments and establishing tasks.
Formal groups are part of organizational structure
These are created deliberately and consciously by the
management to perform the assigned duties.
The pattern of communication is also defined and the rules are
laid down to regulate the behaviour of group members.
These groups may be either permanent in the form of top
management team such as Board of Directors or staff groups
providing specialised services to the organization.
56. i) Command Groups
• The command group is the most frequent type of
• It is relatively permanent and is specified by the
• It comprises of Managers or Supervisors and
Subordinates, who meet regularly to discuss general
and specific ideas to improve product or service.
• In business organizations, most employees work in
such command groups.
57. ii) Task Force
• Task groups are also organizationally determined. But it
is a temporary group representing the employees who
are working together to complete a job task or particular
• However a task group’s boundaries are not limited to its
immediate hierarchical superior.
• For example.
• If a problem involving many departments arises , a
task force made up of representatives from each of
affected departments, might be formed to examine the
problem and suggest solution.
58. iii) Committees
• The committees are also set up for some special
• These can be permanent such as planning committee,
or a budget committee and may become an integral
part of the organization structure.
• A Committee can also be temporary such as special
task force which is set up for a particular purpose and
is disbanded when the purpose is achieved.
• For Example
• The committee constituted to elect the President of the
company is temporary and is disbanded after election.
59. • Informal groupsIa
environment that appear in response to the common interest
of the organization member such as self defense.
• Informal groups are alliances that are neither formally
structured or organizationally determined.
1. Formed by the members of such groups rather than by the
2. These groups arise spontaneously in the organization
because of social interaction between the people.
3. These are based on common interest, language, taste, caste,
religion, background etc.......,
60. Features of Informal Groups
4. These groups exit outside the formal authorities system and without any
set rigid rules.
5. Though officially unrecognised, these groups exist in the shadow of the
formal structure as a network of personal and social relations which must
be understood and respected by the management.
6. These groups have their own structure, with their own leaders, and
followers, group goals, social roles and working patterns. They have their
own unwritten rules and a coded of conduct which every member accepts
implicitly. Members trust and respect each other.
7. The informal groups are mote flexible than the formal groups. Rules and
procedures being unwritten, they can change from situation to situation.
8. Since these groups concentrate on the personal contact between the
members, they represent the human side of enterprise as compared to
technical side represented by the formal group.
61. i) Interest and Friendship Groups
• People who may or may not be aligned into common command or
task groups may affiliate to attain a specific objective with which
each is concerned.
• This is called an interest group.
• For instance, the employees who group together to pressurise the
management for subsidised transport constitute an interest group.
• Afriendship group includes close friends or relations.
• These groups arise because members know each other very well
before joining the organization and in the initial stages, they
recognise each other only.
• These social alliances, which frequently extended outside the work
situation, can be based on similar age or ethnic heritage or for
holding similar political views or for having the same hobbies etc....,
62. ii) Cliques
• Consists of Colleagues or those who
commonly associate with each other and
observe certain social norms and standards, but
the number of members tends to be smaller,
and only rarely exceeds five or six.
• The objectives is to provide recognition to
each other and exchange information of mutual
63. Types of Cliques
1. Vertical Cliques:
This group consists of people working in the
same department drawing membership
regardless of ranks.
In this case, the superior may be a member in
the group consisting mainly of subordinates.
Such groups which cut across hierarchical lines
develop becuase of the earlier acquaintance of
people or because the superior is dependent upon
the subordinates for some formal purposes like
Filling gaps in his abilities
64. 2. Horizontal Cliques:
This group consists of people of small or less
than same line and working more or less in the
Members are able to find some points of
commonness and keeping the objectives in
mind, come together.
This is the commonest type of informal group.
65. 3. Random or Mixed Cliques:
This groups draws members from different
ranks, departments and physical locations.
Again, people having some similarities come
together for a common purpose.
The members may be residing in the same
locality, travelling by the same bus or may be
members of the same club.
66. 4. Sub-Cliques
• This group consists of some members of a
clique inside the organization forming a group
along with persons outside the organization.
• The members of the cliques give these
outsiders due recognition because of some
members of the group being associated with
them. Such groups are recorded as partially
external to the organization.
67. Sayles’ Classification of Group
• On the basis of the pressure tactics adopted by the
groups L.R. Sayles’identified four kinds of
groups in the organizations which are discussed
A. Apathetic Groups: This group is characterised
by relatively few grievances and it hardly ever
uses pressure tactics. This groups are composed
of relatively low paid and low skilled assemble
line workers who lack unity and power and
hardly ever use pressure tactics. Such groups are
generally indifferent to formal organization.
68. B. Erratic Groups
• Members in the erratic groups are easily
inflamed and easily pacified. There is lack of
consistency in their behaviour.
• These groups are composed of semi-skilled
workers who work together in performing hobs
that require some interaction.
• They display considerable unity, but it is very
difficult to predict their behaviour.
69. C. Strategic Group
• The members are such group are able to prepare a
strategy for putting pressure on other groups and
• Members of such groups are generally performing
technologically independent jobs and are
comparatively better placed than members of
• These people are highly united and actively
participate in union activity. These people
maintain a relatively consistent antagonism.
70. D. Conservative Groups
• Professionals and highly skilled employees.
• Higher levels of the organization and display
considerable self confidence.
• They work on their own and the nature of their
jobs is such that they can shut down the plant
if they so desire.
71. Theories of group formation
• Propinquity Theory
• Homan’s Theory
• Balance Theory
• Exchange Theory
72. Theories of Groups Formation
• Propinquity means that individuals affiliate with one
another because of spatial or geographical proximity.
1. Propinquity Theory: the most basic theory explaining
affiliation is propinquity.
In an organization employees who work in the same area
of the plant or Office or Managers with officers close to
one another would more probably form into groups then
would those who are not physically located together.
There is some researches evidence to support the
propinquity theory and on the surface, it has a great deal of
merit for explaining group formation.
The drawback of this theory is that it is not analytical and
does not begin to explain some of the complexities of
group formation. Some more theoretical and practical
reasons need to be explored.
73. 2. Homan’s Theory:
• According to George C Homans, “ The more activities persons
share, the more numerous will be there interactions and stronger
will be their shared activities and sentiments, and the more
sentiments people have for another, the more will be their shared
activities and interactions”.
• It is very comprehensive theory and based on activities,
interaction and sentiments. These three elements are directly
related to each other. The members of a group share activities and
interact with one another not just because of physical proximity
but also to accomplish group goals.
• The key elements is interaction because of which the develop
common sentiments for one another.
• These sentiments gradually get expressed through the formation of
in formal groups. If any disturbance is caused to any of the three –
activities, interactions and sentiments, it is likely to disturbance the
75. 3. Balance Theory
• Balance theory response that there must be balance in
the relationship between the group members for a
group to be formed and for its survival.
• Another very comprehensive theory is a balance
theory of group formation.
• This theory has proposed by Theodore New Comb
states that “Persons are attracted to one another on
the basis of similar attitudes towards commonly
relevant objects and goals. Once a relationship is
formed, it strives to maintain a symmetrical balance
between the attraction and the common attitudes. If
an imbalance occurs, attempts are made to restore the
balance. If the balance cannot be restored, the
76. Balance theory - Diagram
C Life Style
Common attitudes and Values Work
(ABalance Theory of Group Formation)
77. 4. Exchange Theory
• This theory is based on reward-cost outcomes of
attractions. To be attracted towards a group, a person
thinks in terms of what he will get in exchange of
interaction with group members.
• A minimum positive level (rewards greater than cot)
of an outcome must exists in order for attraction or
affiliations to take place. Rewards from attractions
gratify needs while costs incur anxiety, frustrations,
embarrassment, fatigue. Propinquity, interaction and
common attitude all have roles in the exchange
78. Practical Reasons for Group Formation
A. From members point of view
1. Companionship: The need for relationship with other
people is one of the strongest and most constant of
human drives. Relationships give an individual, who
earlier felt lonely and miserable, recognition and his
work life pleasant and comfortable.
2. Identity: We try to understand ourselves through the
behaviour of others towards us. If others praise us, we
feel we are great. Groups provide many others who will
laugh, praise or admire us.
79. 3. Information: The formal group to which a member
belongs is a source of communication or information to
him.Apiece of information available to one member will
nearly reach all the members in a short span of time.
4. Security: Perhaps, the strongest reason for group
formation is a people’s need for security. By joining a
group, a person can reduce his insecurity. He feels
stronger, has lesser self doubts and his more resistant to
5. Esteem: membership in a prestigious group is a source of
enhanced self esteem. The members will feel good about
themselves by virtue of the group’s power, prestige and
social standing. They will get opportunities for
recognition and praise that are not available outside the
80. 6. Sense of Belongingness: It is an emotional need
for friendship, life, affection and affiliation. Most
people have strong need for being with others
who can understand, support and help them when
they are in need.
7. Outlet for frustrations:An individual may be
faced with several problems relating to his family
life and work life. At times, he feels tremendous
stress in life and gets frustrated. If he shares his
feelings and anxieties with some one, his tension
is released to great extent.
81. 8. Perpetuation of Cultural Values: Common
cultural backgrounds brings people together
and he is a strong cementing. People sharing
a common culture, are able to maintain their
cultural identity and ever propagate their
9. Generation of New Ideas: Informal groups are
a breeding ground for new ideas as they
provide a supportive environment in which
the members can engage themselves in
creative thinking. Quality circles in Japan are
an important example
82. Problems or Difficulties of Informal
1. Residence to Change: The dysfunctional
aspects of informal groups create difficulties
in the functioning of the organization.
2. Role Conflict: organization interests are likely
to suffer in case of conflicts between formal
and informal roles. Every member of the
group is also a member of the formal
organization. Since informal groups try to
meet the social needs of other members.
83. 3. Rumours: Rumour is phenomenon of informal
communication which supplements the
transmission of information through formal
communication. This is not desirable from
organization’s point of view because rumour
deals with temporary events in a way that
implies that whatever is said is true even though
there is not much information to support it.
4. Conformity: The conformity to informal group
implies that members becomes subject to wilful
control of an informal leader who may
manipulate the group towards selfish or
undesirable ends. This will lead to dilution of the
effect of organizational policies and practices on
the group members.
84. Group Norms
• “Group norms are a set of beliefs, feelings and attitudes
commonly shared by group members. These are also
referred to as rules or stan lards of behaviour that apply
to group members”.
• According to D.C. Feldman (in the academy of
management review) “Group norms are the informal
guidelines of behaviour and a code of conduct that
provides some order and conformity to group activities
and operations. These rules are expected to be followed
by all the group members. These norms or rules
generally develop gradually and informally as group
members learn as to what behaviours are necessary for
the group to function effectively”.
85. Characteristics of Group Norms:
1. Just as an individual’s characteristics are
revealed through his personality, the
characteristics of a group are revealed or
represented through FORMS.
2. Norms are the basis of behaviour of members
in the group. For example, it is an unwritten
norm that employees don’t criticise their
bosses in public. Thus, this norm is related to
the behaviour which is considered important
by most group members.
86. 3. The norms are the basis for predicting and
controlling the behaviour of good members. For
example, norms may include behaviour in a
particular manner both within and outside the
4. The norms are applied to all members, though
very stringent uniformity is not followed. In
certain cases, some deviations may be allowed
but not to the extent of jeopardising group goals.
For example, if a code of dress for the meetings
or for the work place is there, it is to be followed
by all the members
87. 5. Norms also identify the values and ethics of the
group members. They are established the basis
of what is right and deceit and expected of
6. Though formalised norms written up in
organizational manual setting out rules and
procedures for employees to follow, but by far
the majority of norms in organization are
informal. For example, you don’t have to tell
some one that it is unacceptable to gossip while
the main thing is going on.
88. Types of Norms
1. Performance Norms: Performance norms regulate
the performance and productivity of the individual
2. Appearance Norms: These include things like
appropriate dress, loyalty to the work group or the
3. Arrangement Norms: These norms come from
informal work groups and primarily regulate social
interaction within the group. With whom group
members eat lunch, friendship on and off the job,
social games and the like are influenced by these
89. Why are ‘Norms’ Enforced
1. If it facilitates the group’s survival. Groups
don’t like to fail, so they strongly enforce those
norms that increase their chances of success.
2. If it increases the predictability of group
3. If it reduces embracing interpersonal
4. If it allows members to express the central
value of the group and clarify what is
distinctive about the group’s identity.
90. 3. Allocation of Resources Norms: These norms
can originate in the group or in the organization
and cover things like pay, assignment of difficult
job and allocations of new tools and equipment.
4. Behaviour Norms: These are rules and
guidelines defining the day to day behaviour of
people at work. This behaviour pattern may
include punctuality as a habit, completing any
given assignments within the required time
framework, not loosing temper, showing respect
for other member’s opinions and so on. Certain
professionalism is expected from all members
and this professionalism is predictable form of
• Cohesiveness is the degree to which the
group members are attracted to each other
and are motivated to stay in the groups.
• Cohesiveness defines the degree of
closeness that the members feel with the
• It is understood as the extent of liking each
member has towards others in the group
and how far every one wants to remain as a
member of the group.
• “Cohesiveness refers to the extent of unity in
the group and is reflected in members’
conformity to the norms of the group, feeling
of attraction for each other and wanting to be
co-members of the group”.
95. Managerial actions for increasing or
• Amanager can follow any one or more of the following suggestions
to encourage cohesiveness
1. Make the group smaller
2. Encourage agreement with group goals
3. Increase the time members spend together
4. Increase the status of the group and the perceived difficulty of
getting membership of the group
5. Stimulate competition with other groups
6. Give rewards to the groups rather than to members
7. Physically isolate the group
8. Increase membership homogeneity
9. Increase interaction among members
96. Managerial actions to decrease or
• Sometimes high cohesiveness adversely affects the
productivity. In such cases managers have to reduce
the cohesiveness of the group.
1. Induces agreement on group goals
2. Increase membership heterogeneity
3. Restrict interaction among members
4. Increase group size
5. Reduce the time members spend together
6. Allocate rewards to individuals rather than to group
7. Remove physical isolation
8. Disband the group
9. Introduce a dominating member
97. Group Development
• Groups do not form and become effective
• It involves a long process to develop a
group of strangers to a unit of cohesive
and well coordinated group members.
• From the 1960’s it has been believed that
groups pass through standard sequences
of five stages.
98. Stages of Group Development
1. Forming: The forming stage is when
the group is just formed and members
are formally placed together in a work
group. At this stage, group members try
to comprehend where they stand in the
group and how they are being perceived
by others in the group.
99. 2. Storming: Sometimes after the formal group is
created, internal sub groups get developed. Due to
the newness of the group, there are limited
interactions initially among the members of the
group. Once his sub grouping process takes place
and members begin to feel somewhat more
comfortable in the groups, they try to establish
their positions and test their powers in the bigger
group. At this stage, disagreements tend to get
expressed among the group members and feelings
of anxiety and resentment are also expressed.
Some power struggle may issue at this stage to
determine who should assume the role of informal
leader. This storming stage is also known as the
sub grouping and confrontation stage.
100. 3. Norming
• Where the disagreements differences and
power issues which where dominant at the
storming stage gets worked out.
• The group sets norms, tries to attain some
degree of cohesiveness, understands the goals
of the group, starts making good decisions,
expresses feelings openly and make attempt to
resolve problems and attain group
101. 4. Performing
• Matured fully.
• The group evaluates members’performance so
that the group members develop and grow.
• Feelings are expressed at this stage without
fear, leadership roles are shared among the
members and the members’activities are
102. 5. Adjournment
• For permanent work groups, performing is the
last stage in their development.
• In this stage the group prepares for its
• High task performance is no longer the groups’
top reality rather attention is directed towards
wrapping up group activities.
106. Find out the correct problem
It is not easy to define the problem
It should be seen what should be causing the problem and
what will be its possible solution.
No problem presents itself in a manner that an immediate
decision is taken.
If the problem is not correctly defined then the efforts and
money spend on a wrong decision will go waste.
Moreover, a wrong problem may create fresh difficulties
instead of solving them.
Before defining the problem the manager has to identify
critical or strategic factor’of the problem.
107. • CHESTER BERNART has pointed out
theory of strategic factor is necessary
appreciation of the process of decision making. He
emphasis that in decision making the analysis
required is actually a search for the strategic factors.
These factors may be the route cause of obstacles in
developing a propoer solution to the problem under
discussion. If we wish to increase the yield of grain
in a certain field, on analysis it may be found that
there is lack of potash. The Potash will be a strategic
or limiting factor in this case. Once the problem is
properly defined then it will be easily solved. So the
first important factor is the determination of the
108. • After defining the problem, the manager should
analyse it. He should collect all the possible
information regarding the problem.
• Decide whether it will be sufficient to take a
decision or not.
• Generally the managers complain that they
seldom gets sufficient information which they
would have liked to have.
• Sometimes, it may be costly to have additional
information or further information may not be
109. • In the words of PETER DRUCKER, “To make a
sound decision, it is not necessary to have all the
facts, but it is necessary to know what information
is lacking in order to judge how much of a risk the
decision involves, as well as the degree of
precession and rigidity that the proposed course of
action can afford”. Whatever information is
available should be used to analyse the problem.
If there are deficiencies in information then
manager must judge the degree of risk involved in
110. • Every problem has a number of solutions. If there
is only one solution then there is no need for
• A manager must try to found out various
alternatives in order to get satisfactory results of
decision. Unless manager develops several
alternative solution, he is only to prone to fall into
the either or kind of thinking.
• Having more alternatives is not a guarantee
against wrong decisions.
• There are several alternatives in discouraging
111. • This step is selecting the right one among the
• The pros and cons of different proposals
should be foreseen.
• It enable the manager to see the risk involved
in each course of action.
• Only that alternative which gives maximum
economy is selected.
112. • Experience is the best teacher – proverb
• Its is helps in decision making based on
pervious or past experience.
• The past situation and the present situation will
not be the same, it may vary, but sometimes it
may be same one as the past.
• Hence decision is made upon the time being.
113. • It is applying in practice.
• The alternatives are put to actual practice and
the one giving better results is selected
• It will be costly and time consuming
• It will be rather applied in management
• It will always the better to take decisions on
the basis of facts, study, analysis of results etc.,
114. • When various alternatives are properly evaluated,
then final decision is taken.
• The decision is communicated to the concerned
persons for action
• The implementation of decision will require the
cooperation of subordinates
• Its not enough to take a decision, it should also be
seen weather it is properly implemented or not
• To follow up is also and important aspect of
115. Techniques of Group Decision
1. Brain storming:
Used to enhance creative responses to
problem solving and opportunity finding
It is “generation of ideas” rather than on
“evaluation of ideas”
116. Rules governing Brain Storming
1. Ideas however unusual and undisciplined are
neither censored or nor criticised during the
brain storming session. No judgement or
devaluation of ideas is to be made till the idea
generation process has been completed.
2. Free wheeling of ideas is welcomed in this
session. The wilder or more radical the idea, the
better it will be because sometimes the wildest
ideas result in any solution. The idea which are
unfeasible can be discarded later on.
117. 3. Another rule says to strive for quantity not
quality. The greater the number of ideas,
greater will be the chance of obtaining the
superior idea. Quality can always be judged
in the end.
4. Participants are encouraged to improve or
modify other participants’ideas or to combine
two or more ideas to make a still better idea.
This process results in free association and
unrestricted thinking and may generate some
new idea which may not had been thought of
• More number of participation, enthusiasm,
deferred judgements, greater task orientation,
team work and stimulated thinking.
• This technique is very effective when the
problem is comparatively specific and can be
simply defined. A complex problem can be
broke up into many parts and each part can be
taken up superlatively in time being.
• This process is very time consuming and it is
quite possible that none of the ideas generated
would be optimal. But the washed time can be
minimised if the members of the group are
chosen carefully so that they understand the
problem and feel that their contribution
towards the idea generation will be substantial.
120. 2. Nominal Group Technique
• It is a group in name only as no verbal exchange is allowed
I. Members meet as a group, but before any discussion takes
place each member independently writes down his or her
ideas on the problem.
II. This silent period is followed by each member presenting
one idea to the group. Each member takes his or her turn,
going around the table, presenting a single idea until all the
ideas have been placed (difficulty on a flip chart or a chalk
board). No discussions takes place until all the ideas have
III. The group now discusses the ideas for clarity and
IV. Each group member silently and independently rank orders
the ideas. The final decision is determined by the idea with
the highest aggregate ranking.
• This technique integrates the advantages of both
individuals creativity and group creativity.
• In many situations its saves a great deal of time
• There is possibility of equal participation by all
• This technique is therefore, improves group
decision making under otherwise difficult
122. Delphi technique
• In Delphi technique members do not meet face to
face.All communication is in writing.
• Steps involved in Delphi Technique
i. The problem is defined by the Delphi leader or
ii. Asample of experts is selected
iii. Questionnaires are developed and sent out to
iv. Responses are compiled and summarised into a
123. v. Participants are asked to re-evaluate the responses.
vi. The new responses are compiled and new questions may be
vii. Cycle stops only when consensus is reached
viii. Ultimately a solution is reached
Objectives of Delphi Technique
1. To determine or develop a range of possible programme
2. To explore or expose underlying assumptions or information
leading to different judgement
3. To seek out information which may generate a consensus on
the part of the respondent group.
4. To correlate informed judgements on a topic spanning a wide
range of disciplines.
5. To educate the respondent group as to the diverse and
interrelated aspects of the topic.
i. This technique offers the advantages of group
decision making circumstances when it is not
physically possible to convene a group meeting.
ii. The members are totally independent and are not
influenced by the opinion of other members.
iii. Another advantage is anonymity. Keeping the
responses of the panel persons anonymous it
eliminates the problem of face saving and
encourages panel experts to be more flexible,
iv. This technique is most efficiently used in
education, health, business, government and the
• The main criticism
technique lies in
consumption and cost involved.
• It lacks scientific basis or support
• This technique eliminates the sense
of motivation that arises in a face to
face interacting group.
126. 4. Fish Bowling Technique
• It is similar to Brain Storming but it is more
structured and to the point
i. In this technique, the decision making group of
experts is seated around a circle and there is a
single chair in the center of the circle
ii. One member of the group or the group leader is
invited to sit in the chair in the center and give
his views about the problem and his ideas about
the solution of the problem.
iii. The other group members can ask him questions
but there is no irrelevant discussions or cross
127. iv. Once the member in the centre chair finished talking and
his view point is fully understood, he leaves the center
and joins the group in the circle.
v. Then the second member is called upon to sit in the
center chair and offer his ideas and opinion in the light of
the views expressed earlier.
vi. The members can ask questions based upon the new
ideas present by the member in the center chair as well as
the ideas discussed by the previous central members
vii. The exchange will continue between the central person
and the group members till the chair is vacant.
viii.This process will continue till all the members have
expressed their views.
ix. After all the experts have discussed their views, the entire
group discusses the various alternatives suggested and
pick the one with consensus.
128. 5. Didactic Interaction
• This technique is applicable only in certain
situations . But when such a situation arises, it
is an excellent method. The type of problem in
such a situation should be such that it results in
YES-NO solution. For example, to buy or not
to buy, to sell or not to sell etc...,
129. Steps involved:
• The whole group required to make the decision is
split into two subgroups, one favouring the
“YES” decision and the other favouring the “NO”
• The first group will list all the ‘pros’of the
problem solution and the second group will list al
• Both the groups meet and discuss their findngs
and the reasons.
• After the exhaustive discusion, the groups switch
sides and try to find weakness in their own
original view points.
130. This interchange of ideas and tolerance
and understanding of opposing
viewpoints result in mutual acceptance
of facts as they exist so that a solution
can be built around these facts and
opinions relatind to these facts and
thus a final decision is reached.
133. Nature of Motivation
Fromthe definitions given earlier the following inferences
1. Motivation is an innerfeeling which energiesaperson to
2. The emotionsordesiresof apersonprompthimfor doing
3. Thereareunsatisfied needsof apersonwhichdisturbs his
4. A personmovesto fulfil hisunsatisfiedneedsby
5. Therearedormantenergiesin aperson which are
activated by channelizingtheminto actions.
134. Types of Motivation
1. Positive Motivation orIncentiveMotivation – it isbased
onreward. Theworkers areoffered incentives for achieving
the desired goals. Theincentive may bein the shape of more
pay, promotion, recognition of work, etc,. Theemployeesare
offered the incentives and try to improve their performance
2. Negative orFearMotivation –it isbasedonforceorfear.
Fearcausesemployeesto act in acertainway. In case,they
demotions orlayoff. Thefear acts asapush mechanism. The
avoid the punishments. Though employeeswork up to alevel
where punishment is avoided. But this type of motivation
causes angerand frustration.
135. Importanceof Motivation
1. High performance
2. Low employeeturnover and absenteeism
3. Better organizational image
4. Better industrial relations
5. Acceptability to change
136. Techniquesto increaseMotivation
A. FinancialMotivators:in theformof morewages
and Salaries,Bonuses, Profit-Sharing, leavewith
pay, MedicalReimbursement, Companypaid
insuranceorany of theotherthingsthat may be
givento employeesfor performance.
B. Non-financial Motivators: in the nature of better
status, recognition, participation, job security etc,
137. 1. Recognition
• It is may beintheformof awordof Praise,a
pat ontheback, awordof praise,aletter of
appreciation, entry inannualconfidential
report etc,. Theremay alsobeawards,
certificates plaqueetc. Therecognition may be
for better output, saving the time, improving
quality of products, suggestionsfor better ways
of doingthings etc.
138. 2. Participation
• It hasbeenconsideredagoodtechniquefor
• It impliesphysicalandmentalinvolvementof people
• It satisfiesegoand self esteemof persons.
139. 3. Status
• It refersto asocialstatus of apersonandit satisfies
• A management may createsomestatus symbolsin the
• This canbedoneby way of givingvarious facilities to
• Thismaybesuperiorfurniture,carpets onthe floor,
attachmentsof peons,personal assistants ,housing
• In someorganizations competition isusedasa
• Various personsaregiven certain objectives and
everybodytries to achieve them that of others.
• Theremay bepraises,appreciation letter,
financial incentives to those who reachthe
• That competitions encouragepersonstoimprove
• It has beenrecognizedas an important motivators by
• Thejobis mademoreimportant andchallengingfor
the workers maybegiven wide latitude to deciding
• Theemployeeswill alsoperformthemanagement
functions of planning and controlsofar asthe work
143. • A humanneed,createstension in themind of the
individual and this needtransformsitself into want
depending uponthe environment.Again, there will be
tension in themind which will besatisfied only by a
particular behaviourof theindividual which will release
the tension. That particular behaviourmaybecausedby
the incentives, which exist to satisfy the need.
Satisfactionof oneneedwill leadto thefeel of another
different needorthesameneedat ainterval of time.
Thus, this processis acontinuous one.
• However,if the needisnot satisfied becauseof some
reasons,the personmayfeel frustration. Frustration can
bedefinedasthe accumulationof tensionbecauseof the
non-fulfilment of needs.
144. Somecommonformsof Behaviour
1. Aggression: apersonwho is denied the need satisfaction
may becomeaggressive. Different forms of aggression
may bedisplacement (attacking the sourceof frustration
ortowards someotherobject),negativism (Passive
resistance operating consciously orunconsciously) and
fixation (non –adjustive reaction)
2. Withdrawal: another way of overcoming frustration is
withdrawing fromthe scenephysically or
psychologically . Thedifferent formsof withdrawal
may befantasy, regressionorflight.
145. 3. Compromise:theindividual try to compromisethe
Various formsof Compromisemay be
147. Maslow'sHierarchyof NeedsTheory
• It was in 1943 a Psychologist Mr. Abraham Harold
Maslow suggested his Theory of Human Motivation.
His theory is one popular and extensively cited theory
of motivation. Maslow's theory is based on the
• According to Maslow, human behavior is related to
his needs. It is adjusted as per the nature of needs to
be satisfied. In hierarchy of needs theory, Maslow
identified five types / sets of human need arranged in
ahierarchyof theirimportanceand priority.
148. • He concluded that when one set of needs is satisfied,
it ceases to be a motivating factor. Thereafter, the
next set of needsin the hierarchyordertakes its place.
These needs in hierarchy can be compared to a
pyramid. At the lowest level, there will be first set
of needs which can bedescribed as basic needs and are
universal in character. This will be followed by other
sets of needs.
149. AssumptionsinHierarchyof NeedsTheory
Maslow's Assumptions in Hierarchy of Needs Theory
1. Man is a wanting being, i.e. his wants are growing
continuously even when some wants are satisfied.
Human needs are of varied and diversified nature.
They can be arranged in a hierarchy of importance
progressingfrom alowerto ahigherorderof needs.
150. 2. Needs have a definite hierarchy of importance. As soon
as needs on a lower level are fulfilled, those on the next
level will emerge and demand satisfaction. This suggests
that bread (food) is essential and is a primary need of
According to Maslow, "Man lives by bread alone when
However, he feels the other needs when his physiological
needs are fulfilled. In brief, bread is important but man
does not live by bread alone. There are other needs
(security / safety, social, esteem and self actualisation
which influence behavior of people (employees) to work.
Thisis the basicfeatureof Maslow'sneedhierarchy.
151. • Attention to all human needs is essential for
motivation of employees. Attention to the provision
of bread alone is not adequate for motivating
employees. Bread can act as motivating factor when
there is no bread but when it is available, its use as
motivator comes to an end. Here, other motivators
(e.g. security of job, social status, etc.) will have to be
introduced for motivating employees. Attention to
other needs such as security needs, social needs,
esteem needs and self actualisation needs is equally
important and essential for the motivation of
different categoriesof employees.
152. • Maslow, in his theory, has referred to different needs
and suggested that attention needs to be given to all
such needs as attention to physiological needs alone is
not adequate for motivatingemployees.
• According to Maslow, "Man does not live by bread
alone". This conclusion of Maslow is a practical
reality and needs to be given adequate attention
156. 1. Physiological Needs :
Physiological needs are taken as the first of
starting step for motivation theory because these
are the strongest needs until they are reasonably
There are the basic bodily needs comprising of
hunger, thrust, shelter, clothing, air and another
necessities of life.
Human beings first try to acquire these basic
necessities of life, only then they tend to move the
secondlevel of needs
157. 2. Security / Safety Needs :
In the hierarchy of needs, the second needs are safety and security
Once a reasonable level of physiological needs are satisfied (what
is reasonableis asubjective thing, differing from personto person).
The human beings tend to satisfy the second level of needs which
are security and stability, in today’s civilized society a person is
usually protected from physical danger or threats of violence etc,
so that the safety and security needs dwell upon economy and job
security, security of source of income, provision for old age,
insurance against risk, medical insurance and other protective
measures to safe guard the satisfaction of physiological needs in
158. 3. Social Needs :
Once the second level is satisfied, the human beings
strive to satisfy their socialneeds.
Man is a social animal, hewants to belong to a social
group where his emotional needs for love, affection,
Social needs can be satisfied being in the company of
friends, relatives or other groups such as work groups
159. 4. EsteemNeeds :
Fourth in the hierarchy is ego or self
esteemneeds which areconcernedwith self
applause, prestige, power
These needs give the individuals a sense of
self worth and egosatisfaction.
160. 5. Self-actualisation Needs :
At the top of the hierarchy is the need for self
actualisation or the need to fulfill what a person
considersto bethe missionin hislife.
After all his other needs are fulfilled, a man has the
He wants to do something which is challenging and since
this challenge gives him enough push and imitative to
work, it is beneficial to himand the society.
The sense of achievement gives him a sense of
161. Limitations of Hierarchyof NeedsTheory
1.Maslow's theory is over simplified and is based on
human needs only. There is lack of direct cause and
effect relationship betweenneedandbehavior.
2.The theory has to refer to other motivating factors
3.Needs of all employees are not uniform. Many are
satisfied only with physiological needs and security of
162. 4.The pattern of hierarchy of needs as suggested by
Maslow may not be applicable uniformly to all
5.Maslow's assumption of 'need hierarchy' does not
hold good in the present ageas each person has plenty
of needs to be satisfied, which may not necessarily
follow Maslow's needhierarchy.
6.Maslow's theory is widely accepted but there is
little empirical evidence to support it. It is largely
tentative and untested. Maslow's writings are more
163. Importanceof Hierarchyof NeedsTheory
• Although Maslow's Hierarchy of Needs Theory has
been criticized on above grounds, still it holds many
advantages or merits. It helps the managers to
understand the behaviour of their employees. It also
helps the managers to provide the right financial and
non-financial motivation to their employees. This
overall helps to increase the efficiency, productivity
and profitability of the organization.
164. Alderfer’sERG Theory
• ClaytonAlderfer reformulatedMaslow’sNeed
• TheERG wordis derived from the first letters of each
of theselevels of needs. Thesethreeneedsare
165. Existence Needs
• Theexistenceneedsmaybethe physiological
andsafety needsof Maslow’smodel.
• Theexistence needsaresatisfied by material
• Theseneedsinclude the basic survival needsof
human beings, needsfor physical and
existence and well being.
166. Relatedness Needs
• Relatedness needs include Maslow’s social
and esteem needs, which are derived from
• These include relationships with other
• These needs are satisfied by personal
relationships andsocial interactions.
167. Growth Needs
• TheseneedsaresimilartoMaslow’sself actualization
• Theseneedsinvolves personsmaking creative efforts to
achieve full potential in the existing environment.
• TheERGtheoryonthe otherhandassumesthat more
thanoneneed may beoperativeat thesametime.
• It is not necessarythat the existenceneedsmust be
satisfiedfirst, only thenhecanmoveontorelatedness
• A person maybeworking onhis growth needseven
though his existence needsmaybeunsatisfied.
• FredrickHerzbergandhisassociates developedthe MOTIVATION
HYGIENETHEORY,commonlyknown asthe two factor theory in
thelate 1950sandearly 1960s.
• Aninterview was conductedbasedon200 EngineersandAccountants
wholookedfor11 differentfirmsin Pittsburg, U.S.A. Thepurposeof
theresearchwas to find outasto what variablesareperceivedto be
• During the course of the interviews, these mens were asked to describe
afew previous jobexperiencesin which they felt “Exceptionally good“
or“Exceptionally Bad”about jobs.
• Theywerealso askedto rate the degreeof whichtheir feelingswere
influenced– forbetterorworse– byeachexperiencewhichthey
169. • Based upon the answers receivedfrom these 200 people,
tendto be consistentlyrelatedto job satisfactionand
ontheotherhand, therearesomefactors, whichare
consistently relatedto jobdissatisfaction.
• Thelast of jobconditions,hereferredto us
MAINTANACE ORHYGIENE factors and the first
jobconditions asMOTIVATIONAL factors.
• The MOTIVATIONAL FACTORS are intrinsic in
nature and the HYGIENE factors are extrinsic in
170. HYGIENE FACTORS
• Hygienefactors arethe maintenancefactors don’tmotivate
people, they simply prevent dissatisfaction andmaintain
• Suchfactors don’tproducepositive results but prevent
• If these factors arenot there it will lead to job
motivation orin otherwords, thisfactorsdon’t provideany
satisfaction but eliminate dissatisfaction.
• According to the Herzbergthereareten Maintenanceor
• Morale is defined by various terms from
• In military situation morale means enthusiasm
to accomplish the assigned task or espirit-de-
corps, in sports it may mean self confidence of
a team, in education it may be the eagerness to
learn by students.
176. • According to Prof. Jucius, morale consists of
i. What is it? : it is an attitude of mind, an espirit-de-
corps, a state of well being, and an emotional force.
ii. What does it do? : it affects output, the quality of
product, cost, cooperation, enthusiasm, discipline,
initiative and other ingredients of success.
Where does it reside? : it resides in the minds and
emotions of individuals and in the reaction of their
iv. Where does it affect? : it affects the employees and
executives in there interactions. Ultimately it affects
consumers and the community
177. v. Whom does it affects? : it affects on
employee’s, group’s will do work and
cooperate in the best interest of the
individuals or groups and the organizations
for which they work.
178. Individual group morale
• It is a single person’s attitude towards work,
environment etc. There as group morale
reflects the general attitude of a group of
• The individual’s personal perception of the
present conditions high but the group’s
perception may be low or vice versa.
179. High or Low Morale
• Morale may be referred to as high morale or low
morale. In the words of Mc. Farland, high morale exist
when employee attitudes are favourable to the total
situation of a group and to the attainment of its
• Low morale exist when attitudes inhibit a willingness
and ability of an organization to attain its objectives.
• The words such as Zeal, enthusiasm, loyalty,
dependability denote high morale. Low morale may be
described by words like lack of interest, laziness,
apathy, bickering, jealousy, quarrelsome, pessimism
180. Morale and Motivation
• Morale and motivation and interrelated but differ from
• Morale refers to the attitude of a person towards his
work and environment while motivation is a process to
• Motivation is an inner feeling which energies a person
to work more for satisfying his unsatisfied demands.
• Morale is a group phenomenon while motivation is an
individual’s readiness to work more.
• Morale is related to the combination of various factors
operating at work but motivation concerns to the job
181. Morale and Productivity
• Morale reflects the attitude of employees
towards their work.
• High morale may lead to higher productivity
but in some cases the production may go down
• It is generally felt there is a positive relations
between morale and productivity but the
degree may not be the same.
182. • Miller and Form have given four combinations
of productivity and model viz...,
1. High productivity - high morale
2. Low productivity – high morale
3. High productivity – low morale
4. Low productivity – low morale
183. Factors affecting Morale
1. The organization : the first factor affecting the
employee morale is the organization itself. The
organization influences the worker’s attitude to their
2. The Nature of work : the worker is expected to
perform also affects his attitude towards the job as
well as his morale.
3. Concept of self: the morale of persons who have lots
of self confidence or who enjoy good mental and
physical health is generally high as compared to those
who lack of self confidence or suffer from poor
physical or mental health.
184. Causes of Low Morale
1. Morale of the employees will be low if some people
are allowed to get away with insufficient work, if
work is inadequately divided, if there is any hint of
partiality or if there are considerable differences of
pay among those with similar length of service and
class of work
2. If one employee is getting higher emoluments but
doing less important work compared to the one who
is doing more important and quality work but is
receiving less salary, the morale of the latter is
definitely going to be adversely effect.
185. 3. If the supervisor makes a big fuss over a little fault
of the worker, the morale is definitely being
undermined. This is one of the most frequent cause
of lowering the morale of employees.
4. If a worker is not well, physically or mentally it is
always a cause of discomfort, especially when it is
due to maladjustments in the work.
5. Morale may be seriously affected if the lines of
authority which have been established or not
adhered to. If the superior short circuits his
immediate subordinates and gives order directly to
his subordinate’s subordinate, it violates a
fundamental principal of management. When this
things happen repeatedly it undermines the morale
of the subordinates who is shifted to the position of
a figure head only.
186. 6. When there is no chance of promotion and the
employee feels that while remaining the same
organization, there are no future prospects he
loses a sense of belongingness.
7. If the employee does not get any sense of
achievement while working in the
organization, his morale tends to below this,
usually, happens in the situations where a
persons feels that the underlying aim of
building morale and routine work is personal
advancement of the superiors or maximum
profits for the organization, they will consider
themselves fools for working harder then they
187. Warning signs of Low Morale
• Perceptive managers are constantly on the look
out for close to any deterioration in the morale
of the employees. Signs of low morale are,
generally, not noticed till it is obviously low or
when something has gone amiss.
188. Warning signs of Low Morale
• Among the significant of the warning signs of
low morale are:
i. High rate of absenteeism
iii. High labour turnover
iv. Strikes and Sabotage
v. Lack of pride in work and
vi. Wastage and spoilage.
189. Signs of High Morale
1. A tendency for the group to hold together not
merely as a result of external pressures but rather
through internal cohesiveness.
2. Alack of tendency of its members to divide into
3. An ability of the group to adapt itself to
changing circumstances and to handle internal
4. Afeeling of belongingness and togetherness
among the members of the group.
190. 5. Acommonness of goals among the members
of the group.
6. A passive attitude of the members with
respect to the objectives of the groups and to
7. Adesire on the part of members to retain the
group and a regard for its positive value.
191. Factors motivating Morale
1. Two way communication: there should be
proper communication between management and
employees. All policies and programmes should
be explained to the employees through
downward communication. The feelings,
reactions of the employees should regularly
reach management in an upward communication.
The feedback from employees will help the
management in bringing required changes in
policies etc. Two-way communication will help
in improving the morale of employees.
192. 2. Proper Incentive system: there should be proper
system for monetary and non-monetary benefits for
performance should automatically be
the employees. The employees showing better
incentives. There should be proper promotional
awareness for employees who can undertake higher
3. Human Relations Approach: this approach suggests
that employees should be treated as human beings.
Their feelings and emotions should be given due
weightage. There should not be any discrimination
among employees and groups. The contribution of
every employee to the organization should be
recognised and adequate incentives, rewards should
be offered for higher performance.
193. 4. Welfare Schemes: there should be proper
welfare schemes for the employees and their
families. There should be housing facilities,
medical facilities, school for the children,
recreation facilities, social security etc. All
these measures will develop positive attitudes
in employees, such schemes will also
management’s concern for the employees’
194. 5. Participation in Management: workers should be
made a part of management by opting them in
decision making bodies. It will encourage
industrial democracy in the organization. The
periodical consultation with workers for making
any changes will help in proper implementation.
The workers will be able to understand the view
point of the management on important decisions
concerning the workers. Once workers are
associated with decision making then they will
feel as their responsibility to help in
implementing them. Such a step will enhance the
prestige of persons and their morale will
195. 6. Improve Workers Training: the workers should be given
proper training so that their performance on job is better.
This will give satisfaction and pleasure for working on their
jobs. If a worker is not suitable for a job or he is deficient in
working on a job then it will bring frustration and tension to
him. So better training helps in improving morale of
7. Job Enrichment: job enrichment involves the use of those
factors which are intended to motivate the workers. The job
performance should give satisfaction to the workers. The
basic purpose is to reduce job discontentment by changing
or improving a job to ensure that the worker is better
motivated. Job enrichment opens opportunities for greater
recognition, growth advancement and responsibility.
197. ⦁ Changeis inevitable in the life of an organization.
⦁ Intoday’sbusinessworldmostof theorganizations
arefacing adynamicand changingbusiness
⦁ They should either changeordie.
⦁ Thereis nothird alternatives. Organizations that
learnand copewith changewill thrive and flourish
and otherswho fail to dosowill bewiped out.
198. ⦁ AccordingtoBARNEY andGRIFFIN, “the
primaryreasonsited for organizational problemsis
the failureby managersto properlyanticipateor
weather changeis occuris nolongerrelevant.
⦁ Instead theissueis hoetomangerscopewith the
inevitablebarrageof changethat comeconfront them
daily in attempting to keeptheir organizations viable
and current. Otherwise the organizations will find it
difficult orimpossible to survive .
199. ⦁ In very simple words,we cansay that changemeansthe
alterationof status quoormakingthings different.
disturbedby someinternal orexternal force,changefrequently
structureorprocessof asystem.It maybegoodorbad, the
200. 1. Change results from the pressure of both internal and external forces
in the organization. It disturbs the existing equilibrium or status quo
in the organization.
2. The change in any part of the organization affects the whole of the
3. Change will affect the various parts of the organization in varying
ratesof speedsand degreesof significance
4. Change may affect people, structure, technology and other elements of
5. Change may be reactive or proactive. When change is brought about
due to the pressure of the external forces, it is called reactive change.
Proactive change is initiated by the management on its own to
201. Forcesof OrganizationalChange
Nature of work
202. ⦁ Therearenumberof factors both internal andexternal which
affect organizational functioning.
⦁ External environment affects the organizations both directly
such an environment.
⦁ Accordingly, the organization cannot the changethe
environment but must changethemselvesto align with the
203. 1. Technology:technologyis the majorexternal forcewhich
callsfor change.Theadoption of new technologysuchas
computers,telecommunication systemsand flexible
manufacturing operationshaveprofound impact onthe
organization that adopt them
2. Marketing Conditions:Marketing conditions arenomore
static. Theyarein the processof rapidchangeasthe needs,
desiresandexpectations of the customerschangerapidly and
frequently. Moreover, thereis tough competition in the
market asthe market is floodedwith new products and
innovations everyday. New methodsof advertising areused
to influencethe customer.Todaythe conceptof consumerism
hasgainedconsiderable importanceand thus, the consumers
aretreated asthe Kings.
204. 3. Social Changes: social and cultural environment
also suggest some changes that the organizations
have to adjust for. There are a lot of social changes
due to spread of education, knowledge and a lot of
government efforts. Social equality. Example, equal
opportunities to women, equal pay for equal work,
hasposednew challengesfor the management
4. Political Forces: political environment within and
outside the country have an important impact on
the business especially the transnational
205. 1. Nature of the workforce: the nature of work force has changed
over a passage of time. Different work values have been
expressed by different generations. Workers who are in the age
group of 50 plus gave loyalty to their employers. Workers in the
mid thirties to mid forties are loyal to themselves only. The
youngest generation of workersis loyal to their careers.
2. Change in Managerial Personnel: Change in managerial
personnel is another force which brings about change in
organization. Old managers are replaced by new managers
which is necessitated because of promotion, retirement, transfer
or dismissal. Each managers brings his own ideas and way of
working in the organization. The informal relationship change
becauseof changein managerial personnel .
206. 3. Deficiencies in existing management structure: sometimes
changesnecessarybecauseof somedeficienciesin the existing
organizational structure, arrangement and processes.These
deficienciesmay bein theformof unmanageablespan of
management,largernumber of managerial levels, etc.,
208. ⦁ Individual levelchangemaytake placedueto changesin
jobassignment, transfer of an employeeto adifferent
locationorthe changesin the maturity levelof aperson
which occursoverapassageof time.
⦁ Individual levelchangeswill have impactonthe group
which in turn which influences the wholeorganization.
⦁ Therefore,amanagershould nevertreat the employees
isolation but hemust understand that the individual level
changewill have repercussionsbeyondthe individual.
209. ⦁ Management must consider group factors while implementing any
change, becausemost of the organisational changes have their major
effects at thegroup level .
⦁ Thegroups in the organisaton canbeformal groups orinformal
⦁ Formal groupscanalways resist changefor e.g. Thetrade unions
canvery strongly resist the changes proposed by the management.
⦁ Informal groups canposeamajor barrier to changebecauseof the
inherent strength they contain.
⦁ Changesat thegroup level canaffect thework flows , jobdesign,
socialorganisation influenceand status systemand communication
210. ⦁ The organisational change involves major programmes which affect
both the individuals and the groups.
1. Strategic change : It is the changes in very basic objectives or
missions of the organisation. A single objective may have to be
changed to multiple objectives. For e.g., a lot of Indian companies
are being modified to accommodate various aspect of global culture
broughtin by the multinational ortransnational companies.
2. Structural change : organisational structure is the pattern of
relationships among various positions and various position
holders. Changes in organisational structure is required because old
relationships and interactions no longer remain valid and useful in
the changed circumstances.
211. 3. Processoriented change:Thesechangesrelate to the
recent technologicaldevelopments , information
processingand automation. This will involve
replacingorretrainingpersonnel, heavy capital
equipment investedand operational changes.All
this will affect the organizationalculture andasa
result thebehaviour patternof theindividuals
4. Peopleorientedchange:Thesearedirected towards
dedication and loyalty to the organization aswell
asdevelopingasenseof self actualization among
212. ⦁ A planned changeis achangeplanned by the organization, it does
not happen by itself.
⦁ Thebasic reasons for planned changearea:
I. Toimprove themeans forsatisfyingeconomicneeds of members
II. Toincrease profitability
III. Topromote human work for human beings
IV. Tocontributetoindividual satisfaction and socialwell being.
⦁ In introducing plannedchange,the basicproblembefore
managementis to handle it in such away that there would be
necessary adjustments in various forces.
214. ⦁ Planning for changeinvolvesidentifying the needfor change
and the areasof change
⦁ Thefollowing generalsteps can betaken:
i. Develop New GoalsandObjectives.Themangersmust
identify asto what new outcomesthey wish to achieve.This
maybeamodificationof previous goalsdueto changed
internalandexternalenvironmentorit maybeanew set of
goals and objectives.
215. ii. Select anAgent of Change:Thenext step is that the management
must decideasto who will initiate and overseethis change.One
of the existingmanagersmay beassignedthis duty oreven
sometimesspecialistsand consultants canbebroughtin from
outsideto suggest the various methodsto bring in the changeand
monitor the changeprocess.
iii. Diagnosethe problem:Thepersonwho is appointedasthe agent
of changewill then gatherall relevant data regardingthe areaor
the problemwhere the changeis needed. This data shouldbe
critically analysedto pinpoint the key issues.
iv. Select Methodology:Thenext step is select amethodologyfor
changewhich is commonlyacceptableandcorrect.As the human
tendency is to resist the change,employee'semotionmust be
taken into consideration when devising suchmethodology.
216. v. Develop aplan: afterdevising themethodology, thenext step
will beto put together aplan asto what is to bedone. For
example,if themanagement wants to changethepromotion
policy,it must decideasto what type of employyeswill be
affected by it, whether to changethepolicy for all the
departments at onceorto try it on afew selected departments
vi. Strategy for Implementation of the plan: In this stage, the
managementmistdecideonthe ‘when’,‘where’ and‘how’of
theplan. This includes theright time of putting theplan to
orderto havetheleast resistanceand how theimplementation
217. ⦁ The changeprocesscan succeedonly if the management can
overcomethe resistanceto change
⦁ The planned change does not come automatically, rather there
are many forces in individual, groups and organization which
resist such change. The changeprocesswill never besuccessful
unlessthe cooperation of employeesis ensured.
⦁ Lewin assumes that in every situation there areboth Driving
and Restraining forces which influence any change that may
218. ⦁ Driving forcesarethose which after asituation
by pushing in aparticular direction. These
forcesneedto tend initiate the changeand keep
⦁ Restraining forcesact to restrain ordecreasethe
driving forces. Equilibriumis reachedwhen the
sumof the driving forcesequalthe sumof the
restraining forcesasshown in the following
219. A B C D
of Production EQUILIBRIUM
FORCES X Y Z N
220. ⦁ Theremaybethree types of situation, asboth driving and restraining
i. If the drivingforcesarefar out weight the restrainingforces,
managementcan push driving forces and overpower restrainingforces.
ii. If the restraining forces arestronger than driving forces, management
eithergivesupthe changeprogrammeorit canpursueit by
concentrating on driving forces and changing restraining forces into
driving ones orimmobilisingthem.
If driving and restrainingforces arefairly equal, management can
push driving and at thesametime can convert orimmobilise
Thusto make thepeopleaccept thechanges, themanagement must
push driving forcesand convert orimmobilise restrainingforces.
221. ⦁ Oncethe management is able to establish favourable conditions,
the right timing and right channels of communication have been
establishedthe plan will beput into action.
⦁ It maybein the formof simpleannouncementorit mayrequire
briefing sessionsorin houseseminarssoasto gainacceptanceof
allthe membersandspeciallythosewhoaregoingto bedirectly
affectedby the change.
⦁ After the plan hasbeenimplementedthere shouldbeevaluation
of the plan which comprisesof comparingactual results to the
⦁ Feedback will confirm if these goalsarebeingmet sothat if
thereis any deviation between the goalsand actual
222. ⦁ Resistanceto changeprovides adegreeof
stability and predictability to behaviour. The
1. Individual Resistance
3. Organizational Resistance
223. ⦁ EconomicFactors
⦁ Fearthat the changewill leadto technologicalunemployment
⦁ Workersfearthat they will beidle most of the time dueto the
increasedefficiency of the new technology,which in turn maylead
to retrenchment of labourforce.
⦁ Workersmay fearthat they will bedemotedif they donot acquire
the skills requiredfor the new jobs.
⦁ Workersresist the changewhich leadsto settinghighjob
standards, which in turn mayreduceopportunities for bonusor
224. ⦁ Habits
⦁ All human beingsarecreaturesof habit.
⦁ Due to this natureof human beings whenevera person
is confronted with a change, his basic tendency will be
to resist the change.
⦁ for example,wheneveraperson is transferred, his first
reaction, most of the time, is to resist the changebecause
it will leadto alot morecomplexities like shifting the
house,change of schools of children,making
adjustments in the new place, finding new friends,
⦁ Thus, every personwill try to take the easyway out by
resisting the change.
225. ⦁ Insecurity
⦁ Oneof themajorreasonsforresistanceto changeis
uncertainty about the impactof change,speciallyon
⦁ Lackof Communication
⦁ If the workers are given opportunity to participate in
the processof change,the resistance is likely to beless.
⦁ But if the changeis not properly communicated that to
in an acceptablemannertotheemployees, it is likely to
226. ⦁ Psychologicalfactors
⦁ Workers may not like criticism implied in a change that the present
methodis inadequate and unsuitable.
⦁ New changes may lead to reduction of the personal pride of the
workers becausethey fear that new work changeswill doaway
with the need for much manual work.
⦁ Workers mayhave afear that the new jobswill bringboredomand
monotony asaresult of specialisation brought by the technology.
⦁ Theymayresistthe changebecauseharderwork will berequiredto
learn and adapt to new ideasand they donot want to take the
troublein learningnew things.
⦁ Theworkersmaybeincapableof understanding the implications of
new ideasand methods.
227. ⦁ The main reason why the groups resist to change is
that they fear that their cohesivenessorexistence is
⦁ This is particularly true in caseof groupswhich are
very cohesive,where peoplehave avery strongsense
of belongingnessto the groupand where the group
membersconsidertheir groupassuperiorto the other
228. 1. Threatto power:Topmanagementgenerallyconsider
changeasathreat to their powerand influence in the
organization dueto which the changewill beresisted by
2. GroupInertia: Sometimes,the individuals resist change
becausethe groupto which theybelongresists it
3. Organizational Structure: Changeis often resistedby
defined, lines of authority clearlyspelledand flow of
information is stressedfrom topto bottom.
229. 4. Threat to Specialisation: Changes in organization may
threaten the expertise of specialised groups. For example,
5. Resource Constraints: Organizations need adequate
financial resources for training change agents and for
offering rewards to those who support change. An
organization who does not have resources for
implementingthe changeoften resists it.
6. Sunk Costs: the change is generally resisted by the top
management, because to often ends to the problem of sunk
costs. The heavy capital which is already invested in the
fixed assets orthe amount which has alreadybeenspent.
231. A. Participation and Involvement: individuals will find it
difficult to resist the changesin which they participated.
Priorto makingachange, all the decisionmakingprocess.
Theirdoubts andobjectionsshouldberemovedto win their
B. Effective Communication:Inadequateorinaccurate
information canbeareasonfor the resistanceto change.An
overcomingthis resistance. Workerscanbegiven necessary
educationabout the change,its processandits working
throughtrainingclasses,meetings and conferences,the
reasonsabout the changemust becommunicatedveryclearly
and without ambiguity.
232. C. Facilitation and Support: changeagents canoffer facilitations
and supportive efforts to overcomeresistance. Facilitative support
,means removingphysicalbarriersin implementingchangeby
providingappropriatetraining, tools, machineryetc. Supportive
efforts includeproviding guidance,allowing time off after a
difficult periodand providing emotional support.
D. Leadership:Leadershipplays avery important rolein overcoming
resistanceto change.A capableleadercanreinforceaclimateof
psychologicalsupport for change.
E. Negotiation andAgreement: Negotiation andAgreement
benefit of all concernedparties.
233. F. Manipulation andCooptation:this methodis used in the situation,
whereother methods arenot working orarenot available. Managers
canresort to manipulation of information, resourcesand factors to
overcomeresistance. Or they can resort to cooptationwhichmeans
to adopt an individual, perhapsakey personwithin agroup,by
giving him adesirable rolein designingorcarryingout thechange
G. Coercion: Managersmayresortto coercionif all othermethodsfail
orfor somereasonareinappropriate. Coercionmaybein formof
explicit orimplicit threats involving loss of jobs,, lack of promotion
H. Timing of Change:Timing of introduction of changecanhavea
considerableimpact onthe resistance. Theright time will meetless
resistance. Therefore, managementmust bevery careful in choosing
the time when the organizational climateis highly favourable to
234. ⦁ Darwin Cartwright hasidentified the following characteristicsof
groupasameanof overcomingresistanceto change:
1. If boththechangeagent and the peopletarget for changebelongto
the samegroup, the roleof groupis moreeffective.
2. If the peoplehave morecohesivenessand strongbelongingnessto the
group, changeis easierto achieve.
3. Themoreattractive the groupis to the members, the greateris the
influenceof the group to accept orresist achange.
4. Groupcanexert morepressureonthosefactors of the memberswhich
areresponsiblefor the groupbeingattractive to the members,
235. 5. Thedegreeof prestigeof agroup,asinterpreted
by the members will determine the degreeof
influence the grouphasover its members
6. If any attempt is madeto changeany individual
orsomeindividuals whichdeviates the group
normsthere is likelihood of the changeattempt
beingresisted by the group.
⦁ Thus, the management should considerthe group
asthe basic unit of change. Groupinteractions
information by the management.
236. ⦁ Whatever the casechangemust beproperly
planned and members should beproperly to
these changes enthusiastically,
the real world is turbulent,
requiring organizations and their members
to undergo dynamic change if they are to
performat competitive levels.