organisational behaviour chapter (iv)

7/29/2019 organisational behaviour chapter (iv)

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UNITIV : LEADERSHIP AND POWER

LEADERSHIP

Definition: - Leadership is defined as the process of influencing group activitiestowards the accomplishment of goals in a given situation. Leadership isunanimously agreed as a psychological process of influencing followers and

providing guidance to them. Leadership is essential to influence people to achieve

mutually compatible objectives. In fact, all organizational success can be

attributed to leadership.

FUNCTIONS OF A LEADER

1. Leader develops team work2.

Leader is a representative of subordinates

3. Leader is an appropriate counsellor4. He uses power properly5. Leader manages the time well6. He strives for effectiveness

MANAGING AND LEADING

Leading and managing are not synonymous. The differences between these towterms leading and managing are as under.

1. Relationships: The managerial relationship arises within the organizationalcontext, whereas leadership does not have to originate in the context of theorganization. For example, a mob can have a leader but cannot have a

manager. Further, in an organization informal groups have leaders not

managers.

2. Sources of influence: Managers obtain authority from the organization andthe leader gets power from his followers.

3. Sanctions: A manager has control over the positive sanctions such aspromotion and awards for high task performance and the contribution to

organizational objectives. He is also in a position to exercise negative

sanctions such as withholding promotion or increments, demotion in somecases of extreme default or mistakes, etc. In a sharp contrast, a leader has

altogether different type of sanctions to exercise and grant.


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He can grant or withhold access to satisfying the very purpose of joiningthe groups social satisfaction and related task rewards. These sanctions

are essentially informal in nature. These informal sanctions are relevant to

the individual with belongingness or ego needs; whereas the organizational

sanctions granted or exercised by the manager are geared to thephysiological and security needs of individual.

4. Role continuance: A manager may continue in office as long as hisperformance is satisfactory and acceptable to the organization. On thecontrary, leader maintains his position through the wish of the followers i.e.

how well he facilitates his group in accomplishing their objectives.

5. Reasons for following: People follow managers because their jobdescription, supported by a system of rewards and sanctions, requires them

to follow. On the other hand, people follow leaders on voluntary basis.Further, if there are no followers, leader ceases to exist. But even if there

are no followers a manager may be there.

6. Accountability: Managers are accountable for the job behaviour of thosemanaged as well as their own behaviour. Leaders are not accountable for

the behaviour of their followers in the similar fashion of the managersaccountability.

LEADERSHIP STYLES

Basically, three styles are listed outAutocratic, Democratic and Free-rein.

Autocratic/Authoritative/Directive style: An autocratic leader centralizes power

and decision making in himself and exercises complete control over the

subordinates. He holds over the head of his subordinates the threat of penalties

and punishment. He sets the group goals and structures the work. He runs hisown show. The leader gives order and the subordinates are to follow them

ungrudgingly and unquestioningly. The problem with this style is that

subordinates are made aware of what to do but not why. In autocratic situations,

frustration, low morale and conflict develop easily. Subordinates are induced toavoid responsibility, initiative and innovative behaviour. Autocratic leadership

can be only as good as the leader i.e. if the leader is weak and incompetent, the

followers will be weak and incompetent.


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Autocratic style permits quick decision making and hence can be applied with

success in situations where.

1. The subordinates lack knowledge of company goals.2.

The subordinates are inexperienced or lack in training

3. The company endorses fear and punishment as accepted disciplinarytechniques

4. The leader prefers to be active, and dominant in decisionmaking and5. There is little room for error in final accomplishment

Again under condition of stress or when great speed and efficiency are required

autocratic leadership can yield positive outcome. It can increase productivity, and

somewhat more surprising it can also enhance morale.

Fig. 1: Leadership styles

Democratic/Participative style: In contrast to the autocrat, the democratic leader

practises leadership by consultation. He is like a theory Y leader and invitesdecision sharing. Here authority is decentralized. Decisions are arrived at after

consultation with followers and participation by them. The subordinates are also

encouraged to exploit their potentials and assume greater challenging

responsibilities. This style improves job satisfaction, group cohesiveness andmorale of employees.

L

Autocratic

L

Participative

L

Freerein


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Participative leadership style is appropriate where:

1. The organization has communicated its goals and the objectives to thesubordinates and the subordinates have accepted them.

2. Rewards and involvement are used as the primary means of motivation andcontrol.

3. The leader truly desires to hear the ideas of his employees before makingdecisions.

4. The leader wishes to develop analytical and self- control abilities in hissubordinates.

5. The workers are reasonably knowledgeable and experienced.6. The subordinates desire active and true involvement in matters that affect

them.

7. The time for task completion allows for the participation.Participative style is appreciated on the grounds that:

1. The leader cultivates the decisionmaking abilities of his subordinates.2.

The leader seriously listens to and thoroughly reviews the ideas of hissubordinates and accepts their contributions wherever possible and

practical.

3. Participative style is not always a bed of roses. It is attacked on thefollowing grounds:

a. Participative style is a misleading term. There is always a danger ofmisinterpretation of decision sharing. Subordinates may view theleader as incompetent to handle crisis independently. Participation

may also be interpreted as a sign of inefficiency on the part of the

leader to deal with the problems and taking decisions.

b. Participative leadership is timeconsuming.c. It is a mean of abdication of the responsibility for some leaders.


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Table : 1 Authoritative Vs Participative Styles

Authoritative Participative

1. Manager exhibiting this style islabeled as a Theory X leader

2. Leader is autocratic, task orientedand restrictive

3. Leader structures the task strives tofind out better methods, and keeps the

employees busy on tasks.

4. One way communication5. Centralized decision making andquick decision6. Because of greater resistance change

winning over employee confidence

and obtaining commitment to task is

difficult.

Manager exhibiting this style is labeled

as a Theory Y leader.

Leader is democratic, follower oriented

and permissive.

Leader is considerate of hissubordinates, recognizes their needs and

respects their human dignity.

Twoway communication

Decentralized decision-making andslow process of making decision.

Because resistance to change is

minimum, leader gains a consented and

cohesive group confidence

Freerein Leadership Style:

Freerein leader is a rather complete delegation of authority into the handsof the subordinates so that they must plan motivate, control and otherwise be

responsible for their own actions. The free rein leader avoids power andrelinquishes the leadership position due to lack of selfconfidence and fear of

failure.

(i) The organizational goals have been communicated well and areacceptable to the subordinates.

(ii) The leader is interested in delegating decisionmaking fully.(iii)

The subordinates themselves are well trained and highlyknowledgeable concerning their tasks and are ready to assume

responsibilities.

The problem with this abdicate style is that is tends to permit various units of anorganization to proceed at cross-purposes and can degenerate into chaos. Hence, it

should be the rare exception not a general rule.


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MANAGERIAL GRID

The two dimensions of leadership, viz., concern for people and concern for

production have been demonstrated by Robert R.Blake and Janes S.Mouton in theform of a grid. The word grid means an iron grating, a frame-work of parallel

bars. Blake and Mouton identified five basic leadership styles of practicingmanagers representing various combinations of the aforesaid two dimensions as

shown in the following figure. It is, however, important to point out that thesebasic styles are a matter of convenience rather than a fact. A brief description of

these styles is given below:

1. The 9, 1 Managerial Style (Task)

People are regarded as an instrument of production under the 9, I

managerial style. It is an autocratic style of leadership. This style places a heavyemphasis on task and job requirement. The use of power in the authority

obedience is the basis of control. Human relationships and inter-actions are

minimized. The relationship between the manager and his subordinates is based

on the exercise of authority and obedience. Subordinates are expected to carry outorder with an unquestioning obedience. They are taken as merely means for doing

the tasks assigned to them. Little attention is given to their development or

communicating with them beyond the issue of instructions and orders. When a

conflict erupts among the subordinates, the manager following this style tries to

suppress it because of the possible ill-effects that conflict may have on the work. If

the conflict is between a subordinate and the boss, the goal of the boss is to win.

1-9

(Country Club)

9-9

(Team)

(Impoverished)

1-1

(Task)

9-1

5-5

(Middle Road)

(Low)-C

oncernforPeople

(High)

(Low)Concern for Production (High)

1 2 3 4 5 6 7 8 9

Fig. 2 Managerial Grid

1

2

3

4

5

6

7

8

9


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2.The 1, 9 Managerial Style (Country Club)

Under this style of management, work is done leisurely. At best people are

regarded rather than driven. Subordinates are expected to turn out some work toavoid trouble. The boss is more of a big brother than the autocratic leader. Social

relationships are more important. The group, not the individual, is the key in theorganization. The aim is to achieve friendliness and harmony among the members

of the organization.

3. The 1, 1 Managerial Style (Impoverished)

A manager with this orientation exerts minimum influence on the contacts

with group members. He expresses little concern for production or people. In a

supervisory position, he is most likely to be found executing messenger-carrier

functions, communicating orders from the layer above to the layer below. He is anexpert in passing on blame to others for failures in such a way that he absolves

himself from responsibilities, yet he rarely initiates criticism spontaneously. His

criticism is strictly in selfdefence. Minimum involvement in organisations

purpose and with its people is all that he wants.

4. The 5,5 Managerial Style (Middle Road)

The people dimension in the work situation is as important as the

production dimension. The 5,5 style seeks to maintain a balance between the

two. A basic assumption of this style is that people will work willingly and so as

they are told if the reasons for doing so are explained to them. However, just

enough is communicated so that people have a general sense of what is going on.If too much is told, it is feared that they might resist. Enough concern is shown for

the people so that adequate production may be achieved. This is seen in the 5,5

approach to management development, communication, and performance reviews.Meetings are held to listen to their suggestions and to create a sense of

participation in decision-making.

5. The 9,9 Managerial Style (Team)

A basic need of people that is met by the 9,9 style is the need to be involved

and committed to work. A major difference between 9,9 style and other

managerial styles is in goal setting and its use as a basic management approach toa large variety of problems. The capability of people to be involved in

organizational objectives through commitment to objectives is fundamental. In

other words, the 9,9 orientation aims at integrating the people and productiondimensions of work under conditions of high concern for growth. The key is the

involvement and participation of those responsible for it in planning and execution

of work. This brings about the kind of team spirit that leads to high organisationalaccomplishment.


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TRI-DIMENSIONAL LEADER EFFECTIVENESS MODEL

W.J.Reddin added effectiveness dimension to the two dimensions of

Managerial Grid and other models. This was done to integrate the concepts ofleadership style with situational demands of a specific environment. When the

style of a leader is appropriate to a given situation it is termed effective and

when the style is inappropriate to a given situation, it is termed ineffective.

In Reddins 3-D Management Style Theory, three-dimensional axes

represent task orientation (similar to initiating the structure or concern for

production), relation orientation (similar to consideration or concern for people)

and effectiveness orientation as illustrated in the following figure.

Fig. 3: Three Dimensions of Leadership Style

The difference between the effective and ineffective styles is often not theactual behaviour of the leader but the appropriateness of the behaviour to the

environment in which it is used. In fact, the third dimension is environment. It is

the interaction of the basic style with the environment that results in a degree of

effectiveness or ineffectiveness.

RelationshipDimension

Task Dimension


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THEORIES OF LEADERSHIP

1. Trait theories of Leadership:

The trait approach is concerned mainly with identifying the personality

traits of the leader. Keith Davis summarized four major personality traits, which

seem to have an impact on successful organizational leadership.

1. Intelligence: Research generally shows that leaders have higherintelligence than the average intelligence of their followers. Interestingly,however, leaders cannot be exceedingly much more intelligent than their

followers.

2. Social maturity and breadth: Leaders tend to be emotionally stable andmature and to have broad interests and activities. They have an assumed

respectful selfconcept.

3. Inner motivation and achievement drives: Leaders have relativelyintense motivational drives of the achievement type. They strive for

intrinsic rather than extrinsic rewards.

4. Human relations attitudes: Successful leaders recognize the worth anddignity of their followers and are able to empathise with them. Leaderspossess consideration. They are employee rather than production centered.

This approach to leadership implies that understanding leadership effectiveness inorganizations requires the identification and measurement of the personality traits,

abilities and social skills of the leaders.


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Table:2 Personality Traits, Abilities, and Social skills Most Frequently

Associated with Effective Leadership

Personality Traits Abilities Social skills

Adaptability Intelligence Ability to enlistcooperation

Adjustment (normality) Judgement &

decisiveness

Administrative ability

Aggressive andassertiveness

Cooperativeness

Dominance Knowledge Popularity and prestige

Emotional balance &

control

Fluency of speech

Independence Sociability (inter personalskills)

Originality & creativity

Personal integrity (ethical

conduct)

Social participation

Self confidence Tact and diplomacy

II. BEHAVIOURAL THEORIES OF LEADERSHIP

Trait theories of leadership focus upon personal characteristics of the leader andtry to explain leadership effectiveness on the basis of what type of person theleader is. An alternative approach is to focus instead on what the leader actually

does when he or she is dealing with subordinates.

Behavioural theories of leadership effectiveness focus upon leader behaviour and

seek to understand the relationship between what the leader does and how

subordinates react emotionally (their levels of satisfaction with work) and

behaviourally (their job performance).

The Ohio State studies: Researchers at Ohio State University identified two

distinct, relatively broad categories of leader behaviour. The two categories were

labeled consideration and initiating structure.

Consideration refers to the extent to which a leader is considerate of subordinates

and concerned about the quality of his or her relationship with subordinates.


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Initiating structure refers to the extent to which a leader is task-oriented and

concerned with utilizing resources and personnel effectively in order toaccomplish group goals. The nature of these two dimensions of leader behaviour is

summarized below:

Table:3 Examples of behaviours associated with Leader considerationand Initiating structure.

Leader consideration Leader initiating structure

Friendliness Planning

Consultation with subordinates Coordination

Recognition of subordinates Directing

Open communication with

subordinates

Problem solving

Supportiveness Clarifying subordinates roles

Representation of subordinates

interestsCriticizing poor work

Pressuring subordinates

Relationship to effectiveness: Consideration and initiating structure are thought

of as two relatively independent dimensions of a leaders behaviour. In other

words, a leader with a high degree of consideration need not necessarily be low oninitiating structure. Similarly, a leader who is characterized by a high level of

initiating structure may be high or low on consideration.

The following figure plots these two dimension of leadership behaviour in the

form of a grid wherein the positions of four hypothetical managers are plotted.

Fig.4: The Ohio state dimensions of consideration and initiating structure

High

High

Low

Manager 3

Manager 2Low

Consideration

Initia

ting

Struc

ture

Low

Manager 1

Manager 4


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Manager 1, who rates high on both dimensions, has a leadership style

characterized by a high degree of directing and controlling subordinates and a highlevel of concern and warmth towards employees. Manager 2 shows neither of

these characteristics in his leadership style and would probably be characterized as

a laissez-faire or a do nothing manager. Manager 3 does a lost of planning,

directing and so on but does little to show his concern or interest in subordinates.Manager 4 is just the opposite of Manager 3. He is very friendly and supportive

toward his subordinates but does little to control, direct or plan their work.

The key question that must be addressed is : Which style of leadership is mosteffective? As we would expect, leaders who rate high on consideration tend to

have subordinates who are more satisfied, who express fewer grievances, and who

stay with the organization longer. However, when we turn to the issue of

subordinate performance, the pattern of results is much less clear-cut. It does notappear that being either high or low on consideration or initiating structure alone

has a straight forward impact on the performance of subordinates. There is someevidence, however, to indicate that leaders exhibiting high levels of both

consideration and initiating structure generate higher levels of subordinateperformance. Thus, the main conclusion that can be drawn from the behavioural

theories of leadership is that a more considerate leadership style will cause

subordinates to be more satisfied.

Leadership effectiveness depends upon the existence of a fit between the

leaders behaviour and the demands of the situation. This basic notion is

diagramed in the following figure.

Fig.5 Leadership effectiveness depends on a fit between the leaders

behaviour and the demands of the situation.

Leader

Behaviour

Demands of

the situation

Leadership

effectivenessFIT


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III. Group and Exchange Theories of Leadership:

The group theories of leadership have their roots in social psychology. Classic

exchange theory, in particular, serves as an important basis for this approach. This

means simply that the leader provides more benefits / rewards than burdens costs

for followers. There must be a positive exchange between the leader and followersin order for group goals to be accomplished. A through review of research

indicated that leaders who take into account and support their followers have a

positive impact on attitudes, satisfaction, and performance.

A few important research studies indicate that followers / subordinates may

actually affect leaders as much as leaders affect followers / subordinates.

IV. Contingency Theories of Leadership:

Fred Fielder proposes a widely recognized situation-based model for leadershipeffectiveness. Fiedler developed a unique operational technique to measure

leadership style. Measurement is obtained from scores that indicate the LeastPreferred Coworkers (LPC). This LPC approach calculates the degree to which

leaders favourably perceive their worst coworkers and relates to leadership style in

the following manner.

1. The human relations, or lenient, style is associated with the leader whogives a relatively favourable description of the least preferred coworkers.

2.

The task-directed, or hard-nosed, style is associated with the leader whogives a very unfavourable description of the least preferred coworker.

Fiedlers contingency model of leadership effectiveness

This model contained the relationship between leadership style and the

favourableness of the situation. Situational favourableness was described by

Fiedler in terms of three empirically derived dimensions.

1. The leader-member relationship, which is the most critical variable indetermining the situations favourableness.

2. The degree of task structure, which is the second most important input intothe favourableness of situation.

3. The leaders position power obtained through formal authority, which is thethird most critical dimension of the situation.


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Situations are favourable to the leader if all three of the above dimensions are high

and vice-versa.

When Fiedler examined the relationships among type of leader situational

favourability, and task performance, the pattern diagramed in the following figure

emerged.

SITUATIONAL FAVOURABILITY

Very

Favourable

Moderately

Favourable

Very

unfavourable

High

Low

Task oriented

leader

Relationship

oriented leader

Task oriented

leader

Relationship

oriented leader

Task oriented

leader

Relationship

oriented leader

Fig. 6: Relationships among leadership style, situational favourability,

and performance effectiveness

V.Path-Goal Leadership Theory:

It is derived from the expectancy framework of motivation theory. This is a

healthy development because leadership is closely related to work motivation onthe one hand and power on the other. The House Version of the theory

incorporates four major types or styles of leadership. Briefly summarized, these

are:

1. Directive leadership: Subordinates know what is expected of them, andspecific directions are given by the leader. There is no participation by

subordinates.

2. Supportive leadership: The leader is friendly and approachable and showsa genuine concern for subordinates.

3. Participative leadership: The leader asks for and uses suggestions fromsubordinates but still makes the decisions.

4. Achievement-oriented leadership: The leader sets challenging goals forsubordinates and shows confidence that they will attain these goals andperform well.

PERFORMANCE

EFFECTI

VENESS


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Two of the situational factors that have been identified so far are the personal

characteristics of subordinates and the environmental pressures and demandsfacing subordinates.

Using one of the four styles contingent upon the situational factors as outlined

above, the leader attempts to influence subordinates perceptions and motivatethem, which in turn leads to their role clarity, goal expectancies, satisfaction and

performance. This is specifically accomplished by the leader as follows:

1. Recognizing and / or arousing subordinates needs for outcomes overwhichthe leader has some control.

2. Increasing personal pay offs to subordinates for work-goal attainment.3. Making the path to those payoffs easier to travel by coaching and direction.4. Helping subordinates clarify expectancies5. Reducing frustrating barriers.6. Increasing the opportunities for personal satisfaction contingent on

effective performance.

The following figure summarizes this path-goal approach.

Subordinate characteristics

Locus of control & / or ability

Leader Behaviour / Styles

Directive

Supportive

Participative

Achievement-oriented

Environmental Forces

Task characteristics

Formal authority system

Primary work group

SubordinatesPerception

Motivation

Outcomes

Satisfaction

Role clarity

Goal clarity

Performance

Fig. 7: A summary of path-goal relationship


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VI. A social Learning Approach:

Social learning theory can provide a model for the continuous, reciprocal

interaction between the leader, the environment and the behaviour. These

interactions are shown in the following figure.

LEADER

(includes cognitions)

LEADER BEHAVIOUR ENVIRONMENT

VII. EMERGING THEORETICAL FRAMEWORKS FOR LEADERSHIP

1. Charismatic Leadership Theories: The modern development of charismatic

concept is attributed to the work of Robert House. On the basis of the analysis ofpolitical and religious leaders, House suggests that charismatic leaders are

characterized by self-confidence and confidence in subordinates, high expectations

for subordinates, ideological vision, and the use of personal example. Followers of

charismatic leaders identify with the leader and the mission of the leader, exhibitextreme loyalty to and confidence in the leader, emulate the leaders values and

behaviour and derive self-esteem from their relationship with the leader.

Charismatic leaders have superior debating and persuasive skills and technical

expertise, and foster attitudinal, behavioural, and emotional changes in theirfollowers.

Charisma is an attributional phenomenon and it varies with the situation.

Leader traits that foster charismatic attributions include self-confidence,impression-management skills, social sensitivity, and empathy. Situations that

promotes charismatic leadership include a crisis requiring dramatic change, or

followers who are very dissatisfied with the status quo. Included in the extensions

of charismatic leadership is also the recognition of a darkside. Charismatic leaderstend to be portrayed as wonderful heroes, but as the following table shows there

can also be unethical considerations associated with charismatic leaders.

Fig. 8: A Social Learning approach to Leadership


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Table: 4 Ethical and unethical characteristics of charismatic leaders.

Ethical charismatic leader Unethical charismatic leader

Uses power to serve others Aligns vision with followers

needs and aspirations

Considers and learns fromcriticism

Stimulates followers to thinkindependently and to question

the leaders view.

Open, two-way communication Coaches, develops and supports

followers; shares recognition

with others

Relies on internal moralstandards to satisfy

organizational and societalinterests

Uses power only for personalgain

Promotes own personal vision Censures critical or opposing

views.

Demands own decisions beaccepted without question

One-way communication Insensitive to followers needs

Relies on convenient, externalmoral standards to satisfy self

interests.

2. Transformational Leadership Theory:

Identifying charismatic characteristics of leaders can become very

important organizations transform traditional ways of being led to meet thechallenge of dramatic change. It is this transformation process that has led to the

transformational theory.

Burns identified two types of political leadership: transactional andtransformational. The more traditional transactional leadership involves an

exchange relationship between leaders and followers, but transformational

leadership isbased more on leaders shifting the values, beliefs and needs of their

followers. The following table summarizes the characteristics and approaches oftransactional versus transformational leaders.


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Table:5 Characteristics and Approaches of Transactional Versus

Transformational Leaders.

Transactional Leaders

1. Contingent Reward: Contracts exchange of rewards for effort, promisesrewards for good performance, recognizes accomplishments.

2. Management by exception (active): Watches and searches for deviationsfrom rules and regulations and standards, takes corrective action.

3. Management by exception (passive):Intervenes only if standards are notmet.

4. Laissez-faire: Abdicates responsibilities and avoids making decisions.

Transformational Leaders

1. Charisma: Provides vision and sense of mission, instills pride, gainsrespect and trust.

2. Inspiration: Communicates high expectations, uses symbols to focusefforts, expresses important purposes in simple ways.

3. Intellectual stimulation: Promotes intelligence, rationality and carefulproblem solving.

4. Individual Consideration: Gives personal attention, treats each employeeindividually, coaches and advises.

On the basis of his research findings, Bass includes that transactional leadership isa prescription for mediocrity and that transformational leadership leads to superior

performance in organizations facing demands for renewal and change. He suggeststhat fostering transformation leadership through policies of recruitment, selection,

promotion, training and development will pay off in the health, well-being, and

effective performance of todays organizations.


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Tichy and Devanna conducted interviews with top executives of major companies

and found that effective transformational leaders share the followingcharacteristics.

(1)They identify themselves as change agents.(2)They are courageous(3)They believe in people(4)They are value-driven(5)They are lifelong learners(6)They have the ability to deal with complexity, ambiguity and

uncertainty.

(7)They are visionaries.POWER & POLITICS

According to Stephen P.Robbins Power is the ability to get things done inthe way one wants them to be done.

Power is broader than authority. It includes organizational authority plus

the personal elements of the power holder. Power is the ability to influence andcontrol others in the organization. Power has both positive and negative aspects.

1. Power is interpersonal in nature2. It is person-specific, time-specific and issue-specific.3. Power includes dependency and reciprocal relationships4. Power can expand and contract5. Power is the most important dimension of any organizational activity.6. It arises from a source. The greater and stronger the source, the greater is

the power.

7. If an authority or person does not exercise his power he is failing in hisduty. May be, somebody else will exercise that power.


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SOURCES OF POWER

1. Legitimate powerIt is based on position in the organization.2. Random powerIt is the ability to reward or punish.3. Coercive power It is the ability to pressurize others into obedience,

indirect methods of bringing about compliance.

4. Expert powerIt arises from knowledge or skill of the boss.5. Information powerIt arises due to possession of valuable information.6. Connection powerpower that arises on account of ability to co-ordinate

or liaise with many people.

7. Apparent power which the power holder shows, though he may notpossess.

8. Reflected power which a person exercises in the name of anotherauthority.

BERLES LAW OF POWER

1. Without power chaos will exist. Power will fill any vacuum in theorganization.

2. Power is a personalized aspect of management.3. Power co-exists with responsibility.4. Power is exercised through institutional positions.

MANAGEMENT OF POWER

Herbert Goldhammer and Shills have proposed the following measurement:

THE AMOUNT OF POWER OF AN INDIVIDUAL = Successful events orexercise of power, divided by attempts of power exercise.


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MULDERS THEORY OF POWER DISTANCE

No two individuals can be in same position in the organization when it comes

to power. There has to be a difference in their powers which is called powerdistance. Generally individuals try to reduce power distance with superiors

and increase power distance with subordinates.

POWER DYNAMICS

DISTRIBUTIONPower is never distributed equally across managers in anorganization. There are variations.

DEPENDENCYPower is exercised in a situation of dependency. The more

y depends on x, the more x can exercise powers on y.

COMPLIANCEPeople comply with legitimate power and expert power more

often than other forms.

UNCERTAINITY OF POWERPower is uncertain like all other aspects of anorganization.

POLITICS

When power is exercised for personal gains it is politics. It exists in all

organizations. Many times organizational decisions are made not in rational

manner but due to compromise, accommodation and bargaining- HERBERT

GOLDHAMMER AND SHILLS. Very often people feel that politicking is necessaryfor advancement of career. Generally, greater the power, more the politicking.

That means more politics is involved at top management than in lower levels.

DIMENSIONS OF POLITICAL BEHAVIOUR

1. Scapegoating others.2. Passing the buck-not taking responsibility3. Red herring tactics (giving false leads or ideas)4. Sabotage.5.

Manipulation of information6. Discrediting othersdenying credit or robbing credit

7. Forming cliques and coteries8. Building bad image / label on others9. Creating quid-pro-quos, or reciprocal behaviour.


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UNITV DYNAMICS OF ORGANISATIONAL

BEHAVIOUR

ORGANIZATIONAL CLIMATE

Concept:According to Joe Kelly, Climate may be thought of as the perception of

the characteristics of an organization. Organizational climate conveys theimpressions people have of the organizational internal environment within which

they work. It may also be viewed as the degree to which organizational rules are

enforced by the administrative component.

Forehand and Gilmer have defined organizational climate as a set of

characteristics that describe an organization and that: a) distinguish one

organization from another, b) are relatively enduring over a period of time, and c)

influence the behaviour of people in the organization.

DIMENSIONS OF ORGANIZATIONAL CLIMATE

1. Members Orientation2. Interpersonal relationships3. Individual Freedom4. Degree of control5. Type of Structure6. Management Orientation (Style)7. Reward System8. Communication9. Conflict Management10.Degree of Trust11.Risktaking


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Factors Influencing Organizational Climate

Lawrence James and Allan Jones have classified the factors that influence

organizational climate into five major components.

1. Organizational Contextmission, goals and objectives, functions etc.2. Organization Structure size, degree of centralization and operating

procedures

3. Leadership Process leadership styles, communication, decision making and related processes

4. Physical Environment employee safety, environmental stresses,working conditions and physical space characteristics

5. Organizational values and norms conformity, loyalty, impersonalityand reciprocity.

Improving Organizational Climate

The following techniques may be helpful in improving the organizational climate

1. Two- way Communication2. Concern for people3. Participative decisionmaking4. Change in policies, procedures and rules5. Technological changes


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JOB SATISFACTION

Meaning: Job satisfaction will be defined as the amount of overall positive affect(or feelings) that individuals have towards their jobs. When we say that an

individual has high satisfaction, we mean that the individual generally likes and

values his job highly and feels positively towards it.

Sources (causes) of Job satisfaction

1. Pay: Wages do play a significant role in determining job satisfaction, andare as significant to whilecollar workers as to bluecollar workers. Payis such an important determinant of job satisfaction because it is

instrumental in fulfilling the needs. Moreover, pay can serve as a symbol

of achievement and a source for recognition.

2. The work itself : The two most important aspects of the work itself thatinfluence job satisfaction are variety and control over work methods and

work place.

In general, jobs with a moderate amount of variety produce the most job

satisfaction. Jobs with too little variety cause workers to feel bored and

fatigued. Jobs with too much variety and stimulation cause workers to feel

psychologically stressed and burned out.

Jobs that give workers some autonomy in how they do their work also

provide the greatest job satisfaction. In contrast, management control overwork methods and work place consistently leads to high levels of jobdissatisfaction.

3. Promotion: Promotional opportunities have a moderate impact on jobsatisfaction. A promotion to a higher level in an organization typicallyinvolves positive changes in supervision, job content, and pay. Jobs that

are at the higher levels of an organization usually provide workers with

more freedom, more challenging work assignments, and higher salary.

Executives gain comparatively greater rewards from their promotions than

bluecollar and whitecollar clerical workers.

4. Supervision: Like promotion, supervision is a moderately important sourceof job satisfaction. Two dimensions of supervisory style in particular, seemto have some impact on employee job satisfaction. The first dimension is

employee centeredness or consideration. Supervisors who establish a

supportive personal relationship with subordinates and take a personalinterest in them contribute to their employees satisfaction.


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The other dimension of supervisory style that seems to contribute toemployees satisfaction is influence, or participation, in decision making.

Employees who participate in decisions that affects their jobs display a

much higher level of satisfaction with their supervisors and with their

overall work situation.

5. Work Group: Having friendly and cooperative coworkers is a modestsource of job satisfaction to individual employees. People like the

opportunity to have conversation with each other as they work, andespecially dislike jobs in which they are physically separated from each

other. The work group also serves as a social support system for

employees.

6. Working conditions: Working conditions, too, contribute in a modest wayto job satisfaction. Features such as temperature, humidity, ventilation,lightning and noise, work schedules, cleanliness of the workplace, and

adequate tools and equipment can all affect job satisfaction.

A Model of Job Satisfaction

The model of job satisfaction presented in the following figure summarizes whatwe know about what determines whether employees will be generally satisfied.

Fig. 1: A Model of job satisfaction

EXPECTATIONS

ABOUT JOB

Pay

Work itself,

Promotions,

Supervision,Coworkers,

Working conditions

ACTUAL JOB

CONDITIONS

Pay

Work itself,

Promotions,

Supervision,Coworkers,

Working conditionsEMPLOYEEJOB SATISFACTION

DISCREPANCIES


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Basically, job satisfaction is determined by the discrepancy between what

individuals expect to get out of their jobs and what the job actually offers: Aperson will be dissatisfied if there is less than the desired amount of a job

characteristic in the job. For instance, if a person expects to be promoted in six

months and then is not, the person will be dissatisfied. A person will be satisfied

if there is no discrepancy between desired and actual conditions.

CONSEQUENCES OF JOB SATISFACTION

Now, we examine the ways in which job satisfaction affects employee behaviour.

1.Performance: Of all the behaviours that job satisfaction or dissatisfaction could

affect, there is none some important to managers as performance. Are satisfied

workers more productive workers? It seems somehow natural that more positivefeelings about work would lead to greater output and higherquality work.

Unfortunately, five decades of research into this issue does not lend support to thisbelief.

First, the relationship between job satisfaction and job performance is weak.

Empirical research studies suggest that these tow variables are not closely related

to each other in any simple fashion. Other factors, besides job satisfaction for

instance, the condition of the work equipment or the workers own abilities havea much greater impact on how much a person can produce than his or her job

satisfaction does.

Second, there is substantial evidence to suggest that job performance leads to jobsatisfaction, rather than vice- versa. As the following figure indicates,

performance leads to satisfaction and rewards play a major role in the relationship.

Perceived equity of rewards

Performance(accomplishment) Satisfaction

Intrinsic

rewards

Extrinsic

rewards

Fig . 2:The relationship between satisfaction and performance


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Employees who perform well should receive both more intrinsic rewards and more

extrinsic rewards. Workers who have successfully completed their jobs willreceive more intrinsic rewards (e.g. feelings of accomplishment) as a result of their

efforts. Moreover, employees who perform well should also receive more extrinsic

rewards (e.g. pay and promotions) in recognition of their superior work. As a

result of all these rewards, the best performers will also be the most satisfiedworkers.

In contrast, employees who perform poorly will probably feel worse about their

competence and will probably also receive less pay and fewer promotions.Consequently, the model would predict that these poor performers will be less

satisfied with their jobs.

2. Withdrawal behaviour:

a) Turnover: Turnover is of considerable concern to managers because itdisrupts normal operations and necessitates the costly selection andtraining of replacements. Workers who have relatively low levels of jobsatisfaction are indeed the most likely to quit their jobs. However, while

the relationship between job satisfaction and turnover is strong, it is

important to note that the availability of other places of employment

also influences turnover.

b) Absenteeism: Job satisfaction is also highly related to absenteeism.Workers who are dissatisfied are more likely to take mental health

days (i.e. days off not due to illness or personal business). Relativelylow-paid workers are especially likely to take days off when they are

frustrated with work. This is because low paid workers will incur

relatively little loss of income if they are absent.

3. Union Activity: Job dissatisfaction is major cause of unionization. In an

important study of union organizing, researchers found that employees interest in

unionization is based on dissatisfaction with working conditions and a perceived

lack of influence to change those conditions. Employees become frustrated bylow wages, by arbitrary and strict discipline, and by uncorrected safety hazards.

When employers fail to respond to employee complaints employees realize that

their power is not sufficient to deal with their employers. Collective action-

unionization may be their best solution. Satisfied employees are seldom interestedin unions; they dont perceive that they need them.


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It is also not surprising that job dissatisfaction has an impact on other union

activities, such as calling strikes or filing union grievances. Work units with lowlevels of job satisfaction do have more strikes and file more grievances than units

with high levels of job satisfaction.

Recent changes in Job satisfaction Levels

Lets look at the changes in attitudes among three large groups of workers: the

young (under 30); middle managers; and blue collar workers

Table: 1 Changes in Attitudes of workers

Job Satisfaction surveys:

Now, we shall discuss the use of job satisfaction surveys in organizations. More

specifically, we are concerned with three issues: 1) What are the most reliable andvalid methods of measuring job satisfaction? 2) When should job satisfaction

surveys be utilized? 3) How should job satisfaction surveys be administered?

I. Measuring Job satisfaction: While a wide variety of instruments are available

for use in surveying job related attitudes, a few stand out as especially useful: the

Job Descriptive Index (JDI), the Minnesota Satisfaction Questionnaire (MSQ) andthe Porter Need Satisfaction Questionnaire (NSQ).

Three Dissatisfied Work Groups

Young Workers

1. Unrealistic job expectations2. Over-qualification for jobs3. Unresponsiveness to authoritarian

management

Middle Managers

1. Lack of influence in decision making2. Frequent layoffs during recessions3. Declining earning power

BlueCollar Workers

1. Lack of mobility out of bluecollar jobs2. Lack of respect given by media3. Low pay, uninteresting work


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a) Job Descriptive Index: Probably the most well known job satisfactionsurvey is the Job Descriptive Index (JDI). The JDI has separate

satisfaction scales for pay, promotion, supervision, work and coworkers.

It has been used in a large variety of organizations with employees fromall different levels of education and income. It requires only ten to

fifteen minutes to administer and is also available in a Spanish

language version.

For example,

Work on Present Job Present Pay Opportunities for

Promotion

Routine Satisfying Good Uninteresting

Adequate Insecure Less than I deserve High paid

Promotion onmerit

Promotion onseniority

Deadend job Unfair promotion

policy


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b) Minnesota Satisfaction Questionnaire: The Minnesota SatisfactionQuestionnaire (MSQ) has 100 items, 5 items for each of the following

20 factors.

VeryDissat

Dissat N Sat. VerySat.

1 Ability utilization :

2 Achievement :

3 Activity :

4 Advancement :

5 Authority :

6 Company policies & Practices :

7 Compensation :

8 Coworkers : 9 Creativity :

10 Independence :

11 Moral Values :

12 Recognition :

13 Responsibility :

14 Security :

15 Social Service :

16 Social Status :

17 Supervision-human relations :

18 Supervisiontechnical :

19 Variety :

20 Working conditions :

General satisfaction can be measured by summing the scores for all twenty items.

While the JDI gives abroad picture of employees attitudes towards five majorcomponents of their jobs, the MSQ gives a more detailed picture of employees

specific satisfaction and dissatisfaction.

c. Porter Need Satisfaction Questionnaire: The NSQ is typically used formanagement workers only. Its questions focus mostly on the particular

problems and challenges of managerial jobs. Sample items appear in the

following figure.


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Sample Items from the Porter Need Satisfaction Questionnaire

Instructions: Circle the number on the scale that represents the amount of the

characteristic being rated. Low numbers represent low or minimum amounts,

and high numbers represent high or maximum amounts.

1. The opportunity for personal growth and development in my managementposition.

a. How much is there now?(Minimum) 1 2 3 4 5 6 7 (Maximum)

b. How much should there be?(Minimum) 1 2 3 4 5 6 7 (Maximum)

2. The feeling of security in my managerial positiona. How much is there now?

(Minimum) 1 2 3 4 5 6 7 (Maximum)

b. How much should there be?(Minimum) 1 2 3 4 5 6 7 (Maximum)

Attributes of Good Surveys

There are several characteristics that make these three instruments so well

respected:

1. Validity: These instruments measure what they are intended to measure.2.

Reliability: These instruments have been demonstrated to produce stable,consistent results, and provide clear instructions to respondents.

3. Content: These survey instruments identify the wide range of factors thataffect work life and organizational effectiveness.

4. Languages Level: The item in these scales are clearly and unambiguouslyworded and can be used in many different firms.


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II. Uses of Job Satisfaction Surveys:

1. To diagnose potential problems in organizations.2. To discover the causes of absenteeism and turnover3. To assess the impact of organizational changes on employee attitudes.4. To stimulate better communication between management and workers.5. To provide accurate information about the degree to which employees may

be willing to vote for a union if given the chance.

III. Survey Administration:

Some important factors that managers might want to consider in conducting job

satisfaction surveys include the following.

1. Timing: Satisfaction surveys are most effective if they are set up as part of aregularly scheduled, long-term programme.

2. Sampling: Obviously it is much less expensive to survey a representativesubgroup of the population than to canvass or survey the entire population.

3.

Explaining the purposes of the survey: Management has to be honest withemployees about the purposes of the survey and what will be done with the

results. It should not give false promises and create false expectations.

4. Standardizing the conditions of survey administration: Times foremployees to complete the survey have to be arranged and rooms for taking the

survey have to be provided. It is important, too, that survey administrators be

trained in how to answer frequent or typical questions, such as Why are we

doing a survey now?

5. Feedback meeting: It is generally a good idea to hold discussions betweenmanagers and workers after the results of the satisfaction survey have been

tabulated. Moreover, problem solving committees can be set up to work onspecific problems identified by the attitude survey.


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Keys to Effective Management

1. Managers should be especially concerned with employee complaints aboutlow pay and unchallenging work.

2. Managers need to be aware that increasing job satisfaction is not a likelysolution to increasing productivity.

3. Managers should be more concerned about the impact of job satisfaction onemployee turnover, absenteeism and unionization.

4. In assessing the levels of job satisfaction, it is important for managers tolook not only at overall job satisfaction, but also at who is satisfied.

5. It designed and administered effectively, job satisfaction surveys canprovide managers with a wealth of data about their work units.

ORGANIZATIONAL DEVELOPMENT

OD is a practical and systematic approach to launching and diffusing change in

organizations. It is an attempt to improve the overall organizational efficiency. ODaims at improving the work effectiveness of individuals, groups and total

organizational system.

CHARACTERISTICS:

1. Long range effort2. Broad based: OD is used broadly to describe a variety of change

programmes

3. Dynamic process4.

Systems view: It recognizes that organizational structure and managerialperformance are mutually interdependent. The organization is treated as an

interrelated whole and no part of the organization can be changed without

affecting other parts.

5. Researchbased: Most of the OD interventions are research based. Theyconduct surveys, collect data, evaluate and then take decisions.


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6. Goal setting and planning7. Normative re-educative strategy: OD is based on the principle that

norms form the basis for behaviour and change is a re-educative process of

replacing old by new ones.

Objectives:

1. To increase the level of trust and mutual emotional support among allorganizational members.

2. To increase the incidence of confrontation of organizational problems bothwithin groups and among groups

3. To create an environment in which authority of assigned role is augmentedby authority based on knowledge and skill.

4. To increase the openness of communications, laterally, vertically anddiagonally.

5. To increase the level of enthusiasm and personal satisfaction in theorganization.

6. To find solutions to problems with greater frequency7.

To increase the level of self and group responsibility in planning andimplementation.

OD PROCESS

It consists of the following steps:

1. Problem identification and definition2. Collection of necessary data3. Diagnosis4. Planning of change and its implementation5. Evaluation and feedback


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Action Research: A Model of Organization Development:

The model involves an extensive collaboration between the OD consultant and the

client organization.

Joint action planning Action behaviour for Action behaviour

(Objectives) accomplishing theseobjectives

New plan of act

Feedback to client Determination of Discussion and

Objectives & Plan work of thisof action feedback

Data gathering and Discussion and work Feedback to client

Diagnosis by the on these problems group

Co-consultant

Organizational Feedback to client Reassessment of

Perceptions of the group problems things through data

Problem gathering

Data gathering

Fig. 3: The action research model


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Techniques of OD

1. Sensitivity training: It is also known as T- group training. It consists of asmall group of ten to twelve people. The objective is to improve

interpersonal relations. Participants, often strangers to one another, gatherin a T-group. The group begins its activity with no formal agenda. Trainees

are expected to assume heavy responsibility for selecting discussionsubjects, which might include parental influence, empathy, authority, sex

and ethics. The role of the trainer is passive. He primarily tries to get

participants to examine the group behaviour, including their own.

Discussions are often very personal and emotional, and may becomeheated.

2. Team-Building: The process of making teams effective is called team -building. The main purpose is to improve effectiveness of work.

Fig. 4: Team Building Cycle

1

Problem

Evaluation Data gathering

Im lementationDiagnosis

Planning

2

4

35

6


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3. Survey Feedback:Steps:

a. Collection of datab. Feedback the information to the employeesc. Develop an action pland. Followup

4. Grid Training:The objective is to develop managers leadership skills. Itinvolves two parts and six overlapping phases

PartI Management Development

PartII Organization Development

Fig. 5: Grid Training Process

Evaluation

Goal Attainment

Laboratory Seminar Training

Team develo ment

Inter group development

Organizational goal setting

Organization

Development

Management

Development


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5. System Four Management:

System1: ExploitativeAutocratic (strict)No freedom- Threats &

punishments

System 2: BenevolentAutocraticSome freedom for subordinates

Few rewards

System 3: ConsultativeDemocratic

Substantial but not complete confidence Major decisions centralized at the top Some decisions decentralized at lower levels

System 4: ParticipativeDemocratic

Full confidence in subordinates Decision making highly decentralized

6. MBO (Management by Objectives):Steps

1. Setting of Organisational Objectives2. Formulation of Departmental Objectives3. Establishing goals or targets of subordinates4. Establishing quantitative standards for performance5. Appraisal of performance and counseling


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ORGANIZATIONAL CHANGE

Change is an alteration of an organizations environment, structure, technology or

people. Change is an organizational reality. Handling change in an integral part of

every managers job.

Forces for change: More and more organizations today face a dynamic and

changing environment. This, inturn, requires these organizations to adapt. Thefollowing table summarizes six specific forces that are acting as stimulants for

change.

Table : 2 Forces for change

Forces Examples

Nature of the Work force More cultural diversity Increase in professionals Many new entrants with inadequate

skills

Technology Faster and cheaper computers TQM programmes Reengineering programmes

Economic Shocks Asian real estate collapse Russian devaluation of the ruble Change in oil prices

Competition Global competitors Mergers and consolidations Growth of ecommerce

Social trends Attitude towards smokers Delayed marriage by young people Popularity of sportutility vehicle

World Politics Collapse of Soviet Union Opening of markets in China Black rule of South Africa


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Managing Planned change:

Planned change is concerned with change activities that are intentional and goal

oriented, proactive and purposeful. It is also concerned with changing the

behaviour of individuals and groups within the organization.

Changes within an organization need a catalyst. People who act as catalysts and

assume the responsibility for managing the change process are called change

agents. Change agents can be managers or non managers, employees of theorganization or outside consultants.

What can change Agents change?

What can a change agent change? The options essentially fall into four categories:

Structure, technology, physical setting and people.

Fig. 6: Change Options:

Changing structure involves making an alteration in authority relations,

coordination mechanisms, job redesign, or similar structural variables. Changing

technology encompasses modifications in the way work is processed and in themethods and equipment used. Changing the physical setting covers altering the

space and layout managements in the workplace. Changing people refers to

changes in employee attitudes, skills, expectations, perception, and behaviour.

Resistance to change: One of the most-well-documented findings from studies ofindividual and organizational behaviour is that organizations and their members

resist change. The sources of resistance fall into two categories: Individual and

Organizational sources.

TechnologyStructure

What are the change

options?

Physical

setting

People


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Individual Resistance: Individual sources of resistance to change reside in basic

human characteristics such as perceptions, personalities and needs. An individualis likely to resist changes for the following reasons: Habit, Security, Fear of the

unknown, Concern over personal loss, and the belief that the change is not in the

organizations best interest.

a. Habit: As human beings, we are creatures of habit. Life is complexenough; we dont need to consider the full range of options for the

hundreds of decisions we have to make every day. To cope with this

complexity, we all rely on habits or programmed responses. But whenconfronted with change, this tendency to respond in our accustomed

ways becomes a source of resistance.

b. Security : People with a high need for security are likely to resistchange because it threatens their feelings of safety.

c. Fear of the Unknown: Changes substitute ambiguity and uncertaintyfor the known. Employees in organizations have the dislike foruncertainty. If, for example, the introduction of TQM means production

workers will have to learn statistical process control techniques, some

may fear they will be unable to do so. They may, therefore, develop a

negative attitude towards TQM or behave dysfunctionally if required touse statistical techniques.

d. Concern over personal loss:- Another cause of resistance is the fear oflosing what one already possesses. Change threatens the investment inthe status quo. The more people they resist change. Because, they fear

loss of their position, money, authority, friendships, personal

convenience, or other benefits that they value. That is v\why senior

employees resists change more than do relatively new employees.

e. Belief: A final cause of resistance is a persons belief that the change isincompatible with the goals and best interests of the organization.

Organizational Resistance:- Organizations, by their very nature, are

conservative. They actively resist change. Government agencies want to continue

doing what they have been doing for years, whether the need for their service

changes or remains the same. Educational institutions, which exist to open mindsand challenge established doctrine, are themselves extremely resistant to change.

Size major sources of organizational resistance have been identified. They are as

follows:


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1. Structural Inertia: Organizations have built in mechanisms to producestability. For example, the selection process systematically selects certainpeople in and certain people out.

Training and other socialization techniques reinforce specific role

requirements and skills. Formalization provides job descriptions, rules andprocedures for employees to follow.

The people who are hired into an organization are chosen for fit; they are

then shaped and directed to behave in certain ways. When an organizationis confronted with change this structural inertia acts as a counter balance to

sustain stability.

2. Limited forces of change:- Organizations are made up of interdependentsubsystems. You cannot change one without affecting the others. For

example, if management changes the technological processes withoutsimultaneously modifying the organizations structure to match, the change

in technology is not likely to be accepted. So limited changes in subsystems tend to get nullified by the larger system.

3. Group Inertia:- Even if individuals want to change their behaviour, groupnorms may act as a constraint. An individual union member, for instance,may be willing to accept changes in his job suggested by management. But

if union norms dictate resisting any unilateral change made by

management, he is likely to resist.

4. Threat to Expertise: Changes in organizational patterns may threaten theexpertise of specialized groups. The introduction of decentralized personal

computers, which allow managers to gain access to information directly

from a companys main frame, is an example of a change that was stronglyresisted by many information systems departments in the early 1980s.Why?

Because decentralized enduser computing was a threat to the specialized

skills held by those in the centralized information systems departments.

5. Threat to established power relationships:- Any redistribution ofdecision-making authority can threaten long established power

relationships within the organization. The introduction of participative

decision-making or selfmanaged work teams is the kind of change that isoften seen as threatening by supervisors and middle managers.

6. Threat to established resource allocations:- Those groups in theorganization that control sizable resources often see change as a threat.


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They tend to be content with the way things are. Will the change, for

instance, mean a reduction in their budgets or a cut in their staff size? Thosethat most benefit from the current allocation of resources often feel

threatened by changes that may affect future allocations.

Techniques for overcoming resistance to change

When management sees resistance to change as dysfunctional, what actions can it

take? Several tactics have been suggested for use by managers or other changeagents in dealing with resistance to change. These include education and

communication, participation, facilitation and support, negotiation, manipulation

and cooptation, and coercion. These tactics are described in the following exhibit

Table 3: Techniques for reducing resistance to change

Techniques When used Advantages Disadvantages

Education and

Communication

When resistance is

due to

misinformation

Clear up

misunderstanding

May not work

where mutual trust

and credibility arelacking

Participation When resistershave the expertise

to make acontribution

Increasesinvolvement and

acceptance

Time-consuming;has potential for a

poor solution

Facilitation and

support

When resisters are

fearful and anxiety

ridden

Can facilitate

needed

adjustments

Expensive; no

guarantee of

success

Negotiation Necessary when

resistance comesfrom a powerful

group

Can buy

commitment

Potentially high

cost; opens doorfor others to apply

pressure, too

Manipulation and

cooptation

When a powerful

groupsendorsement is

needed

Inexpensive, easy

way to gainsupport

Can back fire,

causing changeagent to lose

credibility

Coercion When a powerful

groupsendorsement is

needed

Inexpensive, easy

way to gainsupport

May be illegal,

may underminechange agents

credibility


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Approaches to Managing Organizational change

1. LEWINS THREE STEP MODEL: Kurt Lewin argued that successfulchange in organizations should follow three steps: Unfreezing the status

quo, movement to a new state, and refreezing the new change to make it

permanent.

Fig. 7: Lewins Three step Change Model

Unfreezing refers to change efforts to overcome the pressures of both

individual resistance and group conformity.

Refreezing means stabilizing a change intervention by balancing drivingand restraining forces. The status quo can be considered to be an equilibrium

state. To move from this equilibrium to overcome the pressures of both

individual resistance and group conformity- unfreezing is necessary. It can be

achieved in one of three ways.

Fig. 8: Unfreezing the Status quo

Unfreezing Movement Refreezing

Desired

State

Status

Quo

DrivingForces

Restraining

forces

Time


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The driving forces, which direct behaviour away from the status quo, can beincreased. The restraining forces, which hinder movement from the existing

equilibrium, can be decreased. A third alternative is to combine the first two

approaches.

2. Action Research: Action research refers to a change process based on the

systematic collection of data and then selection of a change action based on what

the analyzed data indicate. Their importance lies in providing a scientificmethodology for managing planned change. The process of action research

consists of five steps: diagnosis, analysis, feedback, action and evaluation.

3. Organizational Development: Organizational Development (OD) is a term

used to encompass a collection of planned change interventions built onhumanisticdemocratic values that seek to improve organizational effectiveness

and employee well- being. The following briefly identifies the underlying valuesin most OD efforts.

(i) Respect for people:- Individuals are perceived as beingresponsible, conscientious and caring. They should be treated with

dignity and respect.

(ii) Trust and Support:- The effective and healthy organization ischaracterized by trust, authenticity, openness, and a supportive

climate.

(iii) Power Equalization: Effective organizations deemphasizehierarchical authority and control.

(iv) Confrontation: Problems should not be swept under the rug. Theyshould be openly confronted.

(v) Participation:- The more that people who will be affected by achange are involved in the decisions surrounding that change, themore they will be committed to implementing those decisions.


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ORGANIZATIONAL EFFECTIVENSS

Concept: Many people define effectiveness in terms to a single evaluationcriterion. For instance:

1. Effectiveness could be defined as the degree to which organization realizesits goals.

2. Effectiveness of an organization can be seen in terms of survival of theorganization.

3. Organizational effectiveness is the extent to which an organization, givencertain resources and means, achieves its objectives without placing undue

strain on its members.

4. Effectiveness is the ability of an organization to mobilize its centres ofpower for actionproduction and adaptation.

Efficiency Vs Effectiveness

Effectiveness is the achievement of objectives. Efficiency is the achievement of

the ends with the least amount of resources. Effectiveness means doing the right

things, and efficiency means doing the things right.

Perspectives on Effectiveness

David Lawless highlights the importance of three perspectives of effectiveness.They are individual, group and organizational effectiveness. The relationship

among these three perspectives of effectiveness is shown in the following diagram

Organizational

Effectiveness

Group

Effectiveness

Individual

Effectiveness

Fig. 9: Three different perspectives of effectiveness


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The causes of individual effectiveness include physical attributes, personality

traits, motivation, morale, etc. The causes of group effectiveness comprise ofleadership, communication, socialization etc.

The causes of organizational effectiveness include technology, environmental,

competence and many other variables.

Approaches to Organizational Effectiveness

There are four broad approaches to OE, namely, the goal attainment approach,

systems approach, strategic constituencies approach and the behavioural approach.

A. The Goal Attainment Approach: An organization primarily exists to

accomplish goals. Goal attainment is probably the most widely used criterion of

organizational effectiveness. Organizations effectiveness is appraised in terms ofthe accomplishment of ends rather than means. The goal approach has widespread

common sense and practical appeal.

Organizationaleffectiveness

Causes oforganizational

effectiveness

Group effectivenessCauses of group

effectiveness

Individual

effectiveness

Causes of individual

effectiveness

Fig. 10: Relationship among individual, group and organizational effectiveness


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Some research studies

James L PriceA Conceptual Study

Price has reviewed and analyzed fifty studies and developed a model comprising

of a dependent variable called effectiveness and five intervening independent

variables, namely, productivity, morale, conformity, adaptiveness andinstitutionalization. In his model, there are five systems economic system,

political system,(internal and external system),control system, population system,

and ecology system (or environmental system). These systems through

intervening variables determine effectiveness. The following figure depicts hismodel.

Mahoney and WeitzelAn Empirical Study

Mahoney and Weitzel have developed models for two types of organizations

general business organizations and research and development organizational units.These scholars have identified twenty four variables that are useful in predictingeffectiveness. The important variables in business organization are productivity,

support and utilization, planning, reliability, and initiation. The important

variables for research development are reliability, cooperation, and development.

The difference between these two models is explained in terms of ultimatecriterion. Business organization has ultimate goals of profitability, productivity,

and efficiency and research and developments goals are the professional

competence and development.

The economic systemThe political system

The control systemThe population system

The ecology system

Productivity

ConformityMoraleAdaptiveness

Institutionalization

Effectiveness

Fig. 11: Prices Model of Organizational Effectiveness


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These models are presented here under

Fig.12: General Business Model

Research and Development Model

Overall effectiveness

Reliability

Productivity

Planning

Cohesion Coordination

Supervisory Control

Flexibility

Co-operation Development

Fig. 13: Research and Development Model

General Business Model

Overall Effectiveness

Reliability Initiation

Productivity

Utilization

Development

Plannin

Flexibility

Supervision

& Control

Co-operation

Support

CohensionSupervisory

support


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B. Systems Approach to Organizational Effectiveness:

A systems approach to OE implies that organizations are made up

interrelated and interacting elements. The effectiveness of total system is

dependent on the performance of all its sub-parts. The opensystem perspective

emphasizes the interrelationships between various parts of an organizations andits environment as they jointly influence effectiveness.

Some Research Studies

Seashore and Yuchtman: These researchers at Michigan University have

identified ten effectiveness dimensions in their study of 75 insurance agencies.

These effectiveness dimensions are business volume, production cost, new

member productivity, youthfulness of members, business mix, work force growth,devotion to management, maintenance cost, member productivity, and market

penetration.

According to them, organizational effectiveness can be assessed by the followingsteps:

i. Providing an inclusive taxonomy of resourcesii. Identifying different types of resources that are mutually

relevant for the organizations under study.iii. Determining the relative positions for the compared

organizations on the basis of information concerning the

amounts and kinds of resources available for the organization

and its efficiency in using these resources to get furtherresources.

Georgopolous and Tannenbaum: These organizational scientists have

empirically studied an organization that specialized in the delivery of retailmerchandise. According to them, the concept of effectiveness subsumes the

following three criteria, viz.

i. Organizational productivityii. Organizational flexibility in the form of successful adjustment to

internal organizational changes and successful adaptation to

externally induced changes.

iii. Absence of intra- organizational strain or tension and of conflictsbetween organizational subgroups.


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C. The Strategic Constituencies Approach:

It is similar to systems approach in appearance but with slightly different

emphasis. Like systems view, strategic constituencies approach also considers theinterdependencies among different sub systems in the organization but it is not

concerned with the entire environment. It rather seeks to appease only that part of

environment that can threaten the organizations survival. An effective

organization is one that satisfies the demands of these constituencies in itsenvironment from which it requires support for its continued existence.

To see the effectiveness through this approach certain steps should follow:

1. Management should identify all integral constituencies in the environmenton which the survival of organization depends.

2. The relative power of each constituency should be evaluated by consideringthe degree of dependence of the organization on them.

3. Identify the expectations those constituencies hold for the organization.4. Management should, then arrange these constituencies in order of their

power and expectations.

5.

Organizational effectiveness would, then, be assessed in-terms of its abilityto satisfy these constituencies that are ranked.

D. Behavioural Approach to OE: Behavioural approach to OE emphasizes the

role of individual behaviour as it affects organizational success or failure. Whenemployees agree with the objectives of the organization (employer), then it results

in perfect integration of the individual and organizational goals. This leads to high

degree of organizational effectiveness. The following diagram throws light on the

behavioural theory of OE.

Organizational Goals

Gap

Fig.14: Integration of Individual and Organisational Goals

Individual Goals


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When the integration of both individual and organizational goals is high in degree,it results in high degree of OE and vice versa. The following figure depicts this

view.

Rensis Likert on OE:

Linkert, a famous social scientist, has identified three variables, namely, causal,

intervening and endresult variables- which determine effectiveness.

Causal variables:- These variables include the strategies of a leader, skills of a

manager, decisions of management and the policies and the structure of the

organization.

Intervening variables: Some examples of these intervening variables are

motivation, communication, decision-making and problem solving techniques.

Output or endresult variables:- These variables comprise of production, costs,sales turnover, profit volume, etc.

The relationship among causal variables, intervening variables and output

variables can be seen in the following diagram.

Causal

Variables

Intervening

variables

Output

variablesEffectiveness

Fig.16: The relationship among causal, intervening, and output variables

The degree of

effectiveness is

high

The degree ofeffectiveness is

low

Organizational

Organizational

Goals

Goals

IndividualIndividual

Goals Goals

Fig. 15: The degree of Organisational Effectiveness


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Achieving Organizational Effectiveness

According to Alwin Brown, there are seven reasons for the failure of organizations

to achieve effectiveness:

a. Failure of administrators to act when they need tob. Delay in decisionmakingc. Taking the wrong actiond. Lack of sufficient efforte. Excessive effort in relation to the needf. Excessive quality or effort in relation to the problemg. Wasted effort

Having diagnosed the causes of low effectiveness, the organization can take

necessary and corrective action over the controllable factors. Tannenbaum and hisassociates have constructed a set of diagnostic indices of organizational

effectiveness. They are as follows:

(i)

Understanding: This is the extent to which the relations areaccurately perceived.

(ii) Vormative conformity: This is the extent to which the actualbehaviour conforms to the perceived behaviour.

(iii) Affective conformity: This is the extent to which the actualbehaviour conforms to the desires and reflections.

(iv) Satisfaction and dissatisfaction: This is the extent to which theprescribed, perceived or actual relations are also desired or rejected.

(v) Affective atmosphere: This is the state of balance between theaffectively positive and affectively negative choices in an

organization.


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(vi) Centralization: This is the extent of concentration of choices(prescribed, actual, perceived, or rejected) in a particular person orgroup.

ORGANISATIONAL CULTURE

THE NATURE OF ORGANIZATIONAL CULTURE: People are affected by theculture in which they live. For example, a person growing up in a middle-class

family will be taught the values, beliefs, and expected behaviours common to that

family. The same is true for organizational participants. Society has a social

culture; where people work has an organizational culture.

Definition: When people join an organization, they bring with them the values

and beliefs they have been taught. Quite often, however, these values and beliefs

are insufficient for helping the individual succeed in the organization. The personneeds to learn how the particular enterprise does things.

Edgar Schein, who is probably most closely associated with the study of

organizational culture, defines it as, a pattern of basic assumptions invented,

discovered, or developed by a given group as it learns to cope with its problems of

external adaptation and internal integration- that has worked well enough to beconsidered valuable and, therefore, to be taught to new members as the correct

way to perceive, think, and feel in relation to those problems.

More recently, Joanne Martin emphasizes the different perspectives of cultures in

organizations. She notes:

As individuals come into contact with organizations, they come into

contact with dress norms, stories people tell about what goes on, the organizations

formal rules and procedures, its formal codes of behavior, rituals, tasks, pay

systems, jargon, and jokes only understood by insiders and so on. These elements

are some of the manifestations of organizations culture. However, she adds thatthere is another perspective of culture as well.

When cultural members interpret the meanings of these manifestations

organisational behaviour chapter (iv)

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