GAGE UNIVERSITY COLLEGE

FACULTY OF BUSINESS AND ECONOMICS

ORGANIZATIONAL BEHAVIOR
(MGMT 2028)

Address

[Link]

Tel: +251 11 465 2067 /09 05818181 / 09 88415600

P.O. Box: 23115

Email: - adtsm@[Link]

ADDIS ABABA, ETHIOPIA

JANUARY, 2024
 Table of Contents
Contents Page
Table of Contents ..................................................................................................................... ii
Chapter One: Fundamental Concepts of Organization Behavior ...........................................5

1.1. Introduction .........................................................................................................................5

1.2. Understanding employees and managers behavior ................................................................5
1.3. Background of organizational Behavior ................................................................................6
1.4. Definition of organizational behavior ...................................................................................9
1.5. Multidisciplinary anchor of OB .......................................................................................... 11
1.6. Why to study organizational behavior? ............................................................................... 12
1.7. Approaches to organizational behavior ............................................................................... 12
1.8. Trends of organizational behavior....................................................................................... 15
1.9. Check list ........................................................................................................................... 19
1.10. Progress Questions ........................................................................................................... 20
Chapter Two: The Individual and The Group: ..................................................................... 22

2.1. Introduction: ....................................................................................................................... 22

2.2. Individual and Organizational Behavior.............................................................................. 22
2.2.1. Types of Individual Behaviors in Organizations............................................................... 24
2.2.2. Personality and Individual Behavior ................................................................................ 30
2.2.3. Perception and Individual Behavior ................................................................................. 33
2.3. Foundation of Group Behavior ........................................................................................... 37
2.3.1. Characteristics of Groups................................................................................................. 39
2.4. Understanding Work Team ................................................................................................. 41
2.5. Power and Politics .............................................................................................................. 42
2.6. Conlict and Negotiation ...................................................................................................... 45
2.6.1. Symptom of Conflict ....................................................................................................... 45
2.6.2. Sources of Conflicts ........................................................................................................ 46
2.6.3. Types of Conflicts ........................................................................................................... 46

2.6.4. Conflict Triggers and Stages ............................................................................................ 47

2.6.5. Strategies for managing conflict ...................................................................................... 48

2.6.6. Problem solving principles .............................................................................................. 48

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2.6.7. Options in dealing with conflict ....................................................................................... 49

2.7. Check List .......................................................................................................................... 51

2.8. Progress Questions ............................................................................................................. 52

Chapter Three: Communication ............................................................................................ 54

3.1. Introduction ....................................................................................................................... 54
3.2. Communication overview ................................................................................................... 55

3.2.1. Background of the role of communication ....................................................................... 55

3.2.2. Communication Defined .................................................................................................. 55

3.2.3. Nature and Development of Communication ................................................................... 55

3.2.4. Characteristics of communication .................................................................................... 57

3.2.5. Process and types of communication in organizations ...................................................... 56

3.2.6. Choosing a Medium for communication .......................................................................... 57

3.3. Communication in Organizations ....................................................................................... 71

3.4. Decision Making ................................................................................................................ 75

3.4.1. Decision Making Styles ................................................................................................... 79

3.5. Theories of leaderships ....................................................................................................... 82

3.6. The organizational structure ............................................................................................... 86

3.6.1. Elements of organizational structure ................................................................................ 86

3.7. Organizational Culture ....................................................................................................... 89

3.8. Progress Questions ............................................................................................................. 89

Chapter Four: Organizational Development Andmanaging Change ................................... 93

4.1. Introduction ........................................................................................................................ 93

4.2. Organizational development ............................................................................................... 93

4.2.1. Characteristics of organizational development ................................................................. 93

4.3. Managing Change .............................................................................................................. 97

4.3.1. Pressures for change ................................................................................................. 99

4.3.2. Why people resist change ....................................................................................... 113

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 4.3.3. Choosing a change strategy .................................................................................... 116
4.4. Work Stress and its Management ...................................................................................... 121

4.5. Check List ........................................................................................................................ 122

4.6. Progress Questions ........................................................................................................... 123

4.7. Apendex........................................................................................................................... 124

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 Organizational Behavior
Chapter One
Fundamental Concepts of Organization Behavior
[Link]
Dear learner, well come to the first unit of this module. The unit deals with fundamental concepts of
organizational behavior. Organizational behavior as a concept started before many thousands of years.
However as a distinct field of disciple it is recognized stared from 1940s and now it become one of the
most important subject matter which is important for both managers and employees of any organization.
It is still evolving field which is mainly concerned with employee productivity of a given organization.

This introductory unit provides you with the fundamental concepts of organizational behavior: Back
ground definitions, approaches, reasons to study the subject matter of organizational behavior and its
trends. I wish you good reading.
Objectives of the Unit
After completing this unit you will be able to:
- Explain basic concepts of organizational behavior (OB)
- Define the term organizational behavior
- Discuss the back ground of organizational behavior
- Describe the basic approaches to study OB
- Explain the importance to study OB
- Discuss the trends of OB
- Explain transformation model
- Discuss the multidiscipline anchor of OB

[Link] employees and managers behavior

In text question
Dear student, how do you think one can understand the behavior of managers and employees in most
organizations?
Four fundamental concept can help in understanding the behavior of employees and mangers inmost
situations this includes:
- Basics of human behavior
- Situational perspectives
- Organizational and social systems, and

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 - Interactions between structure and process

i) Basic of human behavior

One of the primary concepts of psychology is that people are different for each other from birth reach
person is unique, and experiences in life increase the differences among people. This means that
managers can get the best performance from employees by treating them as individuals.
Both internal and external factors shape a person’s behavior in the job. Some of the internal factors that
affect a person’s behavior are learning ability, motivation, perception, attitudes, and personality. Among
the external factors that affect a person’s behavior are the organizations reward system and organizational
structure.

ii) Organizations as social systems

People in organizations have both psychological and social needs. They have needs for approval, status
and power and power and they play various roles (inter – personal, informational and decision making).
Since individual’s behavior is influenced by their groups, managers my be able to use groups to improve
performance and also to satisfy employees needs for belonging. An example is united parcel services
employees and having no reserved parking spots.
iii) Situational perspectives
For many years, behavioral sciences have stressed that individual behavior is a function of the interaction
between the personal characteristics of the individual and the situation. To understand a person’s behavior
in a work related situation. To understand a person’s behavior in a work related situation, we must analyze
the pressure that the situation places on the person.
All the factors in a situation is complex and can be every time consuming. The contingency approach
should be used to identify and diagnose only the significant factors involved. The components of a specific
situation organizational structure peer group pressures, leadership, job related stress, organizational
politics are examined, and the significant one are analyzed.
iv) Interaction Between structure and process
Accomplishing something in organizations often involves knowing who to see and how to present an
idea to that person. Structure refers to how people are grouped within an organization process refers to
how the tasks of the organization are carried out. Decision making, leadership communication, motivation
and conflict resolution practices are process.
[Link] of organizational Behavior
In text question
Dear student, when do you think the concept of organizational behavior started and recognized as a
distinct field of discipline?

The field of organizational behavior has existed for many thousands of years people have alwaysattempted
to understand and predict how other people will behave in work situations of all types, but the magnitude

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of this need is largely determined by the size and types of organization in existence. By the size it means
that the number of individuals working together toward a specific set of goals: by type we mean whether
membership in the organization is voluntary or involuntary.
i) Douglas McGregor
In 1960, Douglas McGregor introduced a powerful perspective of the behavior of employees in
organizations. The labeled his perspectives as
- Theory X and
- Theory Y
Theory X:- This theory implies an autocratic approach to management. According to theory X, people
dislike work and try to avoid it if possible; people are not willing to make a 100 percent effort because
they are lazy they have little ambitions and will avoid responsibility if they can. They are self-centered,
indifferent to organizational needs, and resistant to change. The ordinary rewards given by organizations
are not enough to overcome employees‟ dislike for work. Thus, the only way that management can get a
high level of performance is to coerce, control, and threaten employees. Some managers deny that they
hold this view of people, but their actions prove that theory X represents their view of employees.

Theory Y:- This theory implies a humanistic and supportive approach to meaning people, According to
theory Y, people are not lazy. If employees are lazy, this behavior grew out of their experiences with
organizations. If management were to provide the proper environment torelease the employees‟ potential,
work would become as natural to them as play or rest. People will exercise self-direction and self-control
to achieve goals to which they have become committed. They fore management’s role are to provide an
environment in which this potential can be released at work.
McGregor argued that management and employees thinks differently, i. e, managers believe in theory X
while employees believe in theory X while employees believe in theory Y. Thus he stressed that
management needed to adapt a new theory, theory Y, for working the people.
ii) System Approach
The systems approach emphasizes that the interrelatedness of parts and suggests that the importance of
interpreting a single part (person, work group department, or organization) only in the context of the
whole. For example; assume that you requested the purchase of PCs for your newly opened department
under you. The purchasing department may fail to respond you by the time you needed what is your
thinking or reaction?
The response for the given example could be two. You may say this is the weakness of purchasing
department. This is one possible way of thinking. The second possible way of thinking is systems
approach. There you see the whole system. The specification of your order, the financial rules and
regulations, the availability of suppliers the existence of budget, the activity of bid committee etc…
all this factors contributes for the delay of your purchase order of PCs for your department.
The idea of systems assumes multiple causation and complex interrelation ships: everything is related to
everything else. You should think of organizations as numerous subsystems, such as work flows, reward
structures, communication networks, and role structures. All of these subs – systems, functioning together,

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are what we commonly refer to as an organization.
This approach leads to a different understanding of organizational behavior than that presentedby the
traditional approach that discussed above.
The basic elements of systems approach can be represented by a simple transformation model below.

Transformation
Process Out put
Input

Feedback Fig. 1.1 the Transformation model.

Input could be physical, human, financial and information resources that an organization uses to produce
guides and services. The transformation process is the technology (know how) that the organization uses
to transform (change inputs into outputs. outputs include the goods and services that the organization
offers to its customers or clients outputs also include wastes. Feedback is knowledge of results, which
influences the selection of inputs for the next cycle of the process. This transformation process not only
by internal forces (inputs) of the organization but also its effectiveness and goals can be affected by
external wider macro environment like.
- Demographic forces
- Technological forces
- Economic Forces
- Global competition
- Political forces and
- Cultural forces
Take any work process of your organization. Are your inputs, process of transformation and outputs?
Discuss the influence of internal and external forces on your organization selected process goal and
effectiveness.
iii) Contingency Approach
The contingency approach is based on the belief that there is no one way of managing that is best in all
situations. It rejects the notation that universal principles can be applied to managing behavior in
organization. Further, it means no situation falls into a neatly defined classification. Thus, each situation
must be analyzed separately and then managed accordingly. However; principles can give managers
insight in a vague, general way. They have their places in the contingency approach and are used when
the situation call for them
The contingency approach has many advantages

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 - It helps the manager to become more successful because it creates ability to the manger to
diagnose a situation correctly to make sound decision
- It helps the organization to adapt to situation where it operates in high pressure betweenexternal
forces and internal forces.
- It helps to the organization to recognize the ever changing nature of environment so as to make
necessary adjustment.
As distinct field of study, it emerged in 1940s. but it is originated when organized human activitystared
earlier. Between the years 1984 – 1966 average annual productivity in America was 2.8
% increase. Between the years 1966 – 1973 productivity slipped down 1.6 % in average annually. It
became dismal i.e. 0.8 % in average between the years 1973 – 1978. The cause of the decline in
productivity can be traced to a number of problems such as:
 Inflation
 The rising cost of Government intervention
 Employees not producing up to their capacity (this is the problem existing in many organizations
even now days). From these problems organizations started to understood a better working
climate to increase productivity. Improving the workers performance is possible through
improving the quality of work life for employees. So, a better understanding of the basic quality
of work life elements of organizational behavior is crucially needed.

[Link] of organizational behavior

In text question
Dear student using your own words how do you define organizational behavior?

. Before we come to the definition of organizational behavior let us ask our selves the following
questions.
- Why do people behave way they do?
- Why some organizations more successful than others, even through they appear to be managed
in the same manger?
- Why managers spend much of their time trying to “figure out what makes people tick”?

All of those questions and more are the substance of what organizational behavior is all about. An
understanding of the behavior of people organizations has become increasingly important as more and
more of us find ourselves involved with organizations and management of people, not only at work but
in all facets of our lives.
Even though one might not be a manager, it is still important to understand as much as possible about
how people behave at work is we want to make our organizational lives more pleasant and productive.
Consider the following situations as a few examples that illustrate common patterns of behavior in

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organizations:
- The boss of a given organization finds that his driver always late
- The physics teacher notice that his lab assistant close the lab and disappear most of the time
- The personnel manager of a sugar factory notices that the company is having increased difficulty
recruiting new production workers, even though its wage rate is the highest in the local area.
- The university president observed that improved communication and greater faculty commitment
after a reorganization of academic unit.
- A new employee in the typing pool notices that none of the other typists are acting very friendly.
- The director of nursing in a small rural hospital discovers that the surgical nurses resent being
transferred temporarily to the hospital desk during slack periods in the surgical word.
The above mentioned examples show the need for understandings behavior at all levels of management
and in all types of organizations.
- Manufacturing
- Service giving
- Schools
- Universities
- Hospitals and so on.
In all cases, it is important to have the ability to solve problems and to prevent them from occurring. To
have this ability we must have an understanding of why people behave as they do, so; this is the main
concerning of organizational behavior.
Organizational behavior can be dependency
- The study of individual and group behavior within the organization and the application ofsuch
knowledge. It is more concepts oriented.
- The study of what people think, feel and do in and around organizations.
- Organizational behavior is the study of human behavior, attitudes, and performance within an
organizational setting draw in on theory methods, and principles from such disciplines as
psychology, sociology, and cultural anthropology to learn about individual perception’s values,
leading capacities and action while working in groups and within thetotal organization analyzing
the eternal environment’s effect on the organizational and its human resources, mission, objectives,
and strategies.
- As it is known management is generally considered to comprise three major dimensions
i.e. technical, conceptual and human. The technical dimension consists of the manager’s expertise
in computers or accounting or engineering or marketing. There seem little questions that managers
are technically competent. They know the technical requirement of their jobs inside and outside.
But the conceptual and human dimensions of modern management didn‟t get much consideration.
This is where the field organizational behavior comes in to the picture, thus organizational
behavior is directly concerned with the conceptual and human side of management.

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 Φ Activity 1.1
Attempt the following Questions
1. Explain the basic concepts to understand employees and managers in
organizations

2. Discuss the back ground of organizational behavior

3. Define the term organizational behavior

1.5. Multidisciplinary anchor of OB

In text question
Dear student, from what other disciplines do you think organizational behavior emerged andwhat
does its multidisciplinary nature illustrates?

Traditional disciplines
Psychology Drive perception, attitudes, personality job stress, emotions, leadership Sociology Team
dynamics, roles, and socialization communication patterns Organizational Power, organizational
culture
Anthropology Corporate culture organizational rituals, cross – cultural dynamics, organizational
adaptation
Political Science Inter group conflict, coalition formation, organizational power and politics
Economics Decision making, negotiation, organizational power Industrial Engineering Job design,
productivity work measurement
Emerging discipline
Communications knowledge management electronic e-mail, corporate culture, employee socialization
Information systems
Team dynamics, decision making, knowledge management
Marketing knowledge management, creativity, decision making
Women’s studies organizational power, perceptions

The multidisciplinary anchored view of organizational behavior illustrated a number of points.

OB is a way of thinking Behavior is viewed as operating of individual, group andorganizational level. So,
during analysis we have to consider these levels.
OB is multidisciplinary. This means if utilized models, theories and methods from other disciplines. The

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study of OB is not a discipline of a generally accepted science with an established theoretical foundation.
It is a field that only how is beginning to grow anddevelop in stature and impact
OB is a distinctly humanistic orientation within organization
OB is performance oriented
The field of OB relies heavily on recognized disciplines, the roles of the scientific methods.
The field has a distinctive application orientation: it concerned with providing usefulanswers to
questions which arise in the context of managing organizations.
1.6. Why to study organizational behavior?
To understand the reason why we study organizational behavior first we have to understand what we mean
by organizations.
An organization implies structuring and integrating activities in which people are working or cooperating
together in interdependent relationships towards some purpose. The notation of interrelations suggests a
social system. Therefore we can say that organizations are:
Goal oriented: people with purpose
Psychology system: people interacting ion groups
Technological systems: people using knowledge and techniques; and
An integration of structured activities people working together in patterned relationships. Reasons to study
OB include:
- To understand organizational events, to predict and make influence.
- To help managers on important issues such as
- Employee productivity
- The quality of work life
- Job stress and career progression
- To help the managers of the organizations to answer the following questions too
- Why do employees behavior as they do in organizations
- Why is one individual or group more productive than others?
- Why do managers continually seek, wages to design job and delegate authority?
1.7. Approaches to organizational behavior
In text question
Dear student, what are the basic approaches to study the discipline organizational behavior.
Most of concept and ideas we use to try to understand the behavior of individuals and groups in
organizations are based on knowledge from the behavior sciences that represent a systematic body of
knowledge drawn from sociology psychology, and anthropology that helps us to understand why and how

8
people behave as they do.

There are three approaches to study organizational behavior. These include:

- The traditional approach
- The systems approach and
- The contingency approach

i) The Traditional approach

Originally mangers thought that there was only one way to manage people because all organizations were
the same, managerial tasks were identical, and all employees‟ Job were similar also these beliefs may
have been valid to some extent during the early 1900s such approaches now are considered to be overly
simplistic and in fact, incorrect. The traditional approach to organizational behavior emphasized the
development of principles that were appropriate to all organizations and managerial tasks. These universal
principles were generally prescriptive there was only one way to manage organizations and employees.
That perception began to change with Frederick, W Taylor, Elton Mayo, G.J. Roethlisberger, and Douglas
McGregor who sought to develop concepts that would increase managers understanding of behavior.
Their work was the beginning of a more modern and realistic approach to human resources management
let us know discus the contribution of management writers.
Taylor
Frederic W. Taylor advocated the scientific management of factory production, using time and motion
studies, standard parts and standard processes, among other scientific and efficiency techniques. Taylor
observed production operations to determine how they could be performed most efficiently. He believed
in a system of rewards and punishments based on performance and output. Taylor also advocated setting
up a system of rewards and punishment based on performance and output. Taylor also advocated setting
up a system of management controls so first line managers would have to deal only with the exceptional
and not have to personally supervise routine tasks.

Elton Mayo and Roethlisberger

In the 1920s and 1930s, Elton Mayo and F.J. Roethlisberger carried out research on how the structure of
the group affects its member’s behavior. Their result should that an organization should be viewed as a
social system and that the social setting could influence worker’s behaviors more than management’s
rule. The result of their experiments emphasized that workers are not simple tools. They are rather
complex set of personalities interacting in the group situation that is often difficult for managers to
understand. Mayo and Roethlisberger believed that instead of trying to improve employee job
performance according to Taylor’s principles of scientific management, managers could improve
performance by humanizing the work situation.

Thus, managers should adept participative leader ship styles and pay attention to the social setting in

9
which employees work. It has only been since the industrial revolution of the ninetieth century that
relatively large numbers of individuals have been required to work together in manager subordinate
relations prior to this, most organizations were of the informal type so that few formal organizational
relationships were required. In addition to the size differences among organizations, there are also
differences in the influence systems that can be used to affect behavior. Many of the large organizations
that did exist before the industrial revolution were military ones in which the authority of the leader was
supreme and practically unquestioned, since membership was not voluntary behavioral problems
assuming they exist, are relativelyeasy to deal with under these conditions. It is certainly no accident
that much of our current knowledge about human behavior has been derived from organization in which
influencing behavior consists of more than just giving orders.
Scientific Management
The study of organizational behavior becomes the scientific study of why people behave the waythey do
in organizations in early 1900s.
It was Frederick W. Taylor who concerned with the inefficiencies in manual labor jobs and believed that
by scientifically studying the specific motions that made up the total job, a more rational, objective, and
effective method of performing the Job could be determined. In his early years as a foreman in the steel
industry, he saw different workers doing the same job in different ways. It was his opinion that each man
could not be doing his job in the optional way, and he set out to find the “ one best way‟‟ to perform the
job resulted in productivity over existing levels. This theory stated that.
1. Physical work could be scientifically studied to determine the optional method ofperforming a
job.
2. Workers could therea fter be made more efficient by being given prescriptions for howthey were
to do their jobs
3. Workers would be willing to adhere to these perceptions. If paid on a “d i f f e r e n t i a l
piecework” basis.
There were some critics on Taylor’s work which includes his dehumanizing the work place and treating
workers as machines, never the less, his overall contribution to management was significant. Although
others were studying similar methods at the same general time, Taylor was one of the first to take the
theory and practice of management out of the realm of intuitive judgment and into realm of scientific
inquiry and reasoning. While his work had same serious implications for manager and workers like, and
was therefore quite controversial, Taylor nevertheless made major advances in the field by showing that
management could be studied and developed scientifically.
Taylor’s ideas have been evaluated many times since his death and on balance the evaluation of his work
are positive. In a review of Taylor’s ideology and relevance to today’s managerial practices, Locke
maintains that Taylor’s ideas on time study, standardization of work practices, goal setting, money as a
motivator, scientific selection of workers, and rest pauses have all proved to successful techniques of
management today.

The Human Relation Movement

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The second major step on the way to current organizational behavior theory was the human relations
movement that began in the 1930s and continued in various forms until the 1950s. popularized by Elton
Mayo and his famous Hawthorne studies conducted at the Hawthorne plant of the western Electric
company, in many ways in remains the foundation of much of our management thinking of today the
initial experiments reflected strongly the physical orientation of scientific management predicted a
positive relationship; i.e., as lighting increased, productivity would increase up to a point, of course
logically, at some (high) level of illumination, productivity should begin to decline, so the original
experiment way designed to determine the optimal level of illumination.
However, the researchers found no predictable relationship between lighting and outputs and because the
research result could not be explained by existing knowledge, the researchers were forced to find new
explanations. Further research indicated that the lack of a predictable relationship between lighting and
output was related to the mental and emotion side of organizations rather than the physical, mechanistic
side recognized by scientific management. Additional studies showed that economics factors such as
incentives systems were equally Part in predicting behavior.
According to human relation movements the very important elements to predict behavior are social factors
which were important determinants or employee behavior and productivity than where physical economic
factors. Something called “Moral” was suggested as being related to productivity and moral found to be
related to factors such as style of supervision. Personal relationships, on the job, freedom to choose work
methods, and a concept called “group norms”,
The human relation movement has two short comings:
1. Its simplistic view of the relationship between morale and productivity which researchhas not
been able to verify.
2. It didn‟t indicate the “correct” management method.
[Link] of organizational behavior
In Text question
Dear student what are the current changes trends are their implication to organizationalbehavior?
There has never a better time to learn organizational behavior. The pace of change is accelerating, and
most of the transformation is occurring in the workplace. There are five trends in the workplace.
- Globalization
- Information technology
- The changing workforce
- Emerging employment relationships
- Workplace values and ethics

Globalization refers to economic, social and cultural connectivity with people in other parts of the world.
It is all about the ongoing process of increasing interdependent with each other aroundthe planet whether
through trading goods and services sharing knowledge, or interacting with people form different cultures

11
ad locations in the world. Organizations globalize when they extend their activities to other parts of the
world, actively participate in their markets and compete against organizations located in other counties
many firms have had international operations for many years, but these were usually import – export
businesses or fairly independent subsidiaries that served local markets.
Globalization on the other hand, connects and co – ordinate these geographically dispersed segments so
they serve global customers and competes against other global businesses.

Implication for Organizational Behavior

Globalization influences several aspects of organizational behavior some good, some not so good.
Globalization is applied for increasing organizational efficiency and providing a broader net to attract
valuable knowledge and skills. It potentially opens up new career opportunities and provides a greater
appreciation of diverse needs and perspectives.
But globalization also presents new challenges; the debate about whether globalization makes developing
countries wealthier or poorer adds a new ethical dimension to corporate decisions. Firms also need to
adjust their organizational structure and forms of communication to assist their global reach.
Globalization adds more diversity to the workforce, which affects the organization’s culture and
introduces new forms of values, based conflict among employees.
Globalization is also identified as one of the main sources of increased competitive pressures,, mergers,
and market volatility. These environmental conditions, in turn reduce job security, increase work
intensification, and demand more work flexibility from employees. Thus, globalization might partly
explain why many of us work longer hours, have heavier workloads, and experience more work family
conflict (due to mainly lack of time to fulfill both obligations) than at any time in recent decades. Lastly,
globalization influences the study of organizational behavior; we cannot assume that organizational
behavior practices are equally effective around the world, so scholars are paying more attention to cross
– cultural difference.

Information Technology and OB

The internet and other forms of information technology are changing our lives. They are connecting
people around the planet and allowing small businesses in developing countries to compete in the global
market place. Within organizations, information technology blurs the temporary and spatial boundaries
between individuals and the organizations that employ them. It redesigns jobs, reshapes the dynamics of
organizational power and politics, and creates new standards for competitive advantages through
knowledge management. Also generates newcommunication patterns unheard of a decade or two ago.
They task to the group verbally while communicating wirelessly through a personal digital assistant
(PDA) to specific people in the same room. Two other emerging work activities attributed to information
technology are telecommuting and virtual teams.
Telecommuting is working from home usually with a computer connecting to the office also called Tele
working. Employees at remote site can also work with this system 27% of American employees consider
themselves Tele workers. This helps to avoid travel cost and in some casesto over come terrorist attacks.
Virtual teams are cross functional teams operate across space, time and organizational boundaries with

12
members who communicate mainly through information technologies.
The Changing workforce
We can see the work force from two dimensions i.e. primary and secondary dimensions:
Primary dimensions include:
- Ethnicity
- Race
- Sexual Orientation
- Gender
- Age
- Mental/ physical Qualities
Secondary dimension includes: occupation, religion, First language, Life experiences, geographic
location Behavioral style, Education, income, work experience, work style, parental status and marital
status.
Diversity presents both opportunities and challenges in organizations; To be sure, the relationship
between workforce diversity and the effectiveness of a team or organization is very complex. In some
circumstances and to some degree diversity can become a competitive advantage by improving decision
making and team performance in complex tasks: for many businesses, a diverse workforce is also
necessary to provide better customer service in the global market place.
Along with its benefits, workforce diversity presents new challenges. These includes
- Less effectiveness in some situations
- Discrimination
- Racism
- Emerging Employment Relationships
Employees face increasing turbulence in their work and employment relationships due to mergers,
corporate restructuring, and privatization of government managed organizations from this turbulence a
new deal “employment relationship called employability has emerged that replaces the implied guarantee
of life long employment in return for loyalty.
Employability is employments relationship in which people performs a variety of work activities rather
than hold specific jobs and are expected to continuously learn skills that will keep them employed.

Another work (employment shift) is the increasing percentage of the workforce is contingent work.
Contingent work includes any jobs in which the individual does not have an explicitly or implicitly
contract for long term employment, or one in which the minimum hours of work can very in a non-
systematic way.

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 Workplace value and Ethics
A value is stable long lasting beliefs about what is important in a variety of situations that guide our
decisions and actions. They are evaluative standards that help us define what is right or wrong, or good
or bad. In the world, values dictate our priorities, our preferences and our desires.
Cultural, personal, professional and organizational values have been studied by organizational scholars
for several decades.
Value has big importance in workplace. First, they foster a common bond and help to ensure that everyone
in the organization regard less of job rank has aligned goals.
Second, As globalization has raised our awareness of and sensitivity to differences in values across
cultures values help to manage these differences.

Ø Activity 1.2.
Attempt the following questions
1. Describe the basic approaches to study organizational behavior
2. Explain the impotence to study organizational behavior
3. Discuss the current change trend in the world and indicate their implications toorganizational
behavior
4. Explain transformation model and illustrate its application in your ownorganizational or
the organization you know
5. Discuss the indication of the multidisciplinary nature of organizational behavior

Third, Organizations are under increasing pressure to engage in ethical practices and corporate social
responsibility. Ethics refers to the study of moral principles or values that determine whether actions are
right or wrong and outcomes are good or bad.
Unit summary
Four fundamental concepts can help to understand the behavior of employees and managers in most
organizations: Basics of human behavior, situational perspectives, organizational and social systems and
interactions between structure and process. People are different both at birth psychologically and in their
experience environmentally. This partially contributes for their difference in performance in organizational
context and therefore managers should understand these differences among employees. To get the
maximum output from employees treating employees treating employees as individual based on difference
is important. Not only psychological element but also understanding people as social system, in
organization is important: they have needs for approval, status and power and play various roles.
Furthermore, situational factors: Organizational structure, peer group pressures, leadership, job related
stress. Organizational politics etc… Affects Individual performance including how the tasks of the
organization are carried out.

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The field of organizational behavior has existed for many thousands of years. But as a distinct field of
disciplining it is recognized starting from 1940s. it is a multidisciplinary subject innature. The field is
still emerging field so that there is not agreed final definition up on the subject matter of organizational
behavior by organizational experts. For only the matter of understanding simple definitions have been
driven in this teaching material
Organizational behavior become the most important subject recently both for managers and employees
for many reasons: to understand organizational event, to predict and make influence; to help managers in
areas of employee productivity, Quality of work life, Job stress and career progression; and to help
managers to understand the behavior of employees, Job design and delegation of authority.
There are there approaches to study organizational behavior the traditional, systems and contingency
approaches. The traditional approach is a thought emphasized the development of principles that were
appropriate to all organizations and managerial tasks. Originally managers thought that there was only
one way to manage people because all organizations were the same.

Although these beliefs have been valid to some extent during the early 1900x such approaches now are
considered to be overly simplistic and in fact, incorrect. In early 1900s scientific management made the
study of human behavior more scientific Although scientific management criticized as dehumanizing the
work place and treating workers as machines it has contributed mush for today’s managerial practices.
The human relation movement which began in 193s was the second major step which contributed for the
study of organizational behavior with its other short comings this method indicated social factor is the
important determinants to predict behavior that economic factor.
There are five trends in work places in every organization now a days: Globalization, the fast growing of
information technology, the changing work force in different dimensions, emerging employment
relationship and the change of work place values and ethics. This change has certain implication on
employee’s behavior and the managing of organization so that managing of organization so that managers
has to manage accordingly.

[Link] list
Read each of the points below and tick whether or not you have understood it. If your answer is “yes‟ go
to the next Question. If however, it is „no‟, go back to that topic and read again until you have fully
understood it.

Point Yes No
I can explain basic concepts of organizational behavior
I can define the term organizational behavior
I can discuss the background of organizational behavior
I can discuss the basic approaches to study OB
I can explain the importance to study OB

15
 I can discuss the trends of OB with their implications to organizational behavior
I can explain basic concepts to understand employees and managers
I can explain when OB started as concept and distinct field of discipline
I can discuss what does the multidisciplinary nature of OB illustrates

1.10. Progress Questions

Multiple choices
Instruction: Choose the letter which carries the best option
1, Which of the following concept can not basically help to understand behavior of employees and
managers in most organizations
A, Human B, Organizational culture C, Situational perspectives D, Interaction between structure and
processes
2, Which of the following basic concept best explains individual differences in organization.
A, Basic of human behavior B, Organization as social systems C, Situational perspectives D, Structure and
process interaction
3, The theory which indicates employees are naturally productive given supportive frommanagement
is
a, Theory “Y” B, Theory “Z” C, Theory “X” D, Contingency approach
4, All are element of systems approach except______.
A, Input B, Output C, Process D, Feed back E, None
5, “there is no one way of managing things best in all situation”, This refers to
A, Contingency approach B, situational perspectives C, Systems approach D, The traditional approach
6, Which of the following is not true about organizational behavior as discipline?
A, No agreed definition by organizational behavior experts B, It is still emerging discipline
C, It is started as distinct field started thousands of years before D, It is multidisciplinary E, None of these
7, Organization as a system consists all except______
A, People B, Technology C, Psychology D, Structure E, culture
8, Which of the following is / are the importance to study organizational behavior?
A, Understanding organizational events B, Increases employee productive C, Manage quality of work life
D, Manage job stress and conflict E, All
9, All are trends of organizational behavior recently except_______

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A, Globalization B, The change of customer demand C, The change of work force e D, Development of IT
E, none of these
10, The economic, social and cultural connectivity with people in other parts of the world is_____
A, Internationalization B, Globalization Trade C, information Technology

Part II; Descriptive Questions

Instruction : Briefly describe the following concepts

1, Describe systems approach and explain its application in your work situation using transformation
model.
2, Explain the advantages of contingency approach to managers in modern organizations

3, Compare and contrast systems approach and contrast the traditional approach with both contingency
approach and systems approach in managing organizations and draw your own lesson from the comparison.

Chapter Two
The Individual and The Group

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2.1. Introduct
The central concern of organizational behavior is to explain why individuals behave the way they do and
perform well on work place. This has the Holy Grail of much research in organizational behavior and it
is one of the central concerns of the second unit. The basic model to understand the dynamics of individual
behavior is what known as MARS mode will be explained here. MARS is the abbreviation for motivation,
ability role perception and situational factors. Individual behavior is what this unit deals with our much
focus in this part of the unit will work related ones. We will also see factors for forming personalities.
Furthermore the perception process which indicates the process of receiving selecting, organizing,
interpreting, checking, and reacting to sensory stimuli to data will be explained.

It is not only individual but groups which will be formed from two or more individuals which affects the
success of the organization. To this end types of groups, reasons for formation of groups, the stages of
groups, characteristics of a group, the relationship between group and teams and how groups and teams
affects organizational success will be explained in this unit. You will also see sources of conflict and
methods to resolve them in work.
Objectives of the Unit
At the end of this unit you should be able to
 Describe the MARS model
 Explain work related behaviors
 Discuss factors forming personalities
 Discuss the perception process
 Explain why groups formed in organization and implication to managers
 Compare and contrast group and team
 Explain sources of conflict and strategies to resolve them.

[Link] and Organizational Behavior

In text question
Dear learner, think different employees in certain organization. Do you think these different
employees in the organization do in the same way? Can you jot down the reason why?
Why do individuals behave the way they do and perform well or poorly in the workplace? This
question has been the Holy Grail of much research in organizational behavior and it is the focus
of this chapter. As you might imagine, OB scholars have looked at numerous variables drawn from
several disciplines and theoretical perspectives to understand the dynamics of individual behavior
is MARS model. According to this model individual behavior is influenced by motivation, ability,
role perceptions, and situational factors (MARS)

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 Values Role
Personality perception
Behavior
Perceptions Motivation
and result
Emotional and
attitudes
Ability Situational
Stress factors

Fig. MARS model of individual behavior and result

Employee Motivation
Motivation represents the forces a person that affects his or her direction intensity, and persistence of
voluntary behavior, direction refers to the fact motivation is goal oriented, not random, people are
motivated to arrive at work on time, finish a project a few hours early, or aim for many other targets,
Intensity is the amount of effort allocated to the goal.
Ability
Employee abilities also make a difference in behavior and task performance. Ability includes both the
natural aptitudes and learned capabilities required to successfully complete a task. Aptitudes are the
natural talents that help employees learn specific tasks more and perform them better. There are many
different physical and mental aptitudes and our ability to acquire skills is affected by these aptitudes.
Learned capabilities refer to the skills and knowledge that you have actually acquired. This includes the
physical and mental skills you possess as well as the knowledge you acquire and store for later use.

Employee competencies
Skills, knowledge, aptitudes, and other personal characteristics that lead to superior performance are
typically bunched together into the concept of competencies. Competencies are generic, meaning that they
are relevant for a wide variety of jobs.

Person Job Matching

There basic methods are used to match individuals and their competencies with job requirements. One
strategy is to select applicants whose existing competencies best fit the required tasks. This includes
comparing each applicants whose existing competencies best fit the required task. This includes
comparing each applicant’s competencies with the requirements of the job or work unit. A second
approach is to provide training so employees develop required skills and knowledge. The third Job

19
matching strategy is to redesign the job so employees are only given tasks within their capabilities.

Role Perceptions
A person’s belief about the specific tasks assigned to them, their relative importance, and the preferred
behavior to accomplish those tasks.
Organizations improve role perceptions through ensuring employees to understand their required
responsibilities and to show how these goals relate to organizational goals. Employees also clarify their
role perceptions as they work together over time and receive frequent and meaningful performance
feedback.
Situational Factors
Situational factors include conditions beyond the employee’s immediate control that constrain or facilitate
his or her behavior and performance. Some situational constrain or facilitate his or her behavior and
performance. Some situational characteristics such as consumer preferences and economic conditions
originate from the external environment and consequently, are beyond the employee’s and organizational
control. However, some situational factors such as time, people, budget, and physical work facilities are
controlled by others in the organization.

Φ Activity 2.1
1. Describe components of MARS model of individual behavior
2. Define the following terms and what each of them consists
a) Motivation c) Situational factors
b) Ability b) Role perceptions
3. Indicate how the above factors (indicate under question number two) Behavior
and result by taking example from you own practice.
4. Explain how managers can best use of those factors to influence behavior and
improve results?

2.2.1. Types of Individual Behaviors in Organizations

In text question
Dear learner, can you mention any work related behavior in your organization or the
organization you know? What is the implication of such behavior to managers?

Peoples engage in many different types of behavior in organizational settings. There are five behaviors
most often shown in the organizational behavior literature: task performance, organizational citizenship,
counterproductive work behaviors, Joining and staying with the organizational and work attendance.

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 Task Performance

Maintaining work Counter productive

attendance work behaviors
Types of Work –
related behavior

Joining staying with

Organizational
the organization
citizenship

Fig. Types of Work – related behavior

Task performance:- Goal directed behaviors under the individual’s control that support
organizational objectives.
Organizational Citizenship:- Behaviors that extend beyond the employee’s normal job duties.
Counterproductive work Behaviors (CWBS):- voluntary behaviors that are potentially harmful to the
organization’s effectiveness, scholars have recently identified five categories of CWBS:abuse of
others (e.g. insults and nasty comments), threats (threatening harm), work avoidance(e.g. tardiness),
work sabotage (doing work incorrectly, and over acts (theft). Notice from this list that CWBs includes
both acts of commission (deliberately harming the organization and itsemployees). Several factors that
influence counterproductive behaviors includes: stress a known cause of workplace violence and
aggression, perceptions of organizational injustice predict theft, sabotage, and failure to comply with rules
and directives from management.
Joining and staying with the organization
In the modern world, corporate leaders chatting about attracting and keeping talented employees. The war
for talent includes the best people, not just hiring them because much of an organizational intellectual
capital is the knowledge of employees carry around in their heads.
People quit their Jobs when there is job satisfaction. This is when a person’s evaluation of his or her job
and work context is not good.
Maintaining work attendance
Along with attracting and retaining employees organizations need to show up for work at scheduled times.
Organizations high absenteeism has difficulty making products or providing services because key people
are missing from the work processes.

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 Φ activity 2.2.
Attempt the following
1. Briefly describe work related behaviors.

2. Identify between harmful and useful work related behavior by taking as an

example from your experience.

3. Indicate how is it possible to overcome the problems with some harmful work
related behavior in work situations.

Values, Attitudes and Job Satisfaction

In text question
Dear learner using own words can you differentiate between values, Attitudes and job
satisfaction? How these relates to organizational success?

Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a
variety of situations. They are perceptions about what is good or bad, right or wrong. Values don‟t just
represent what we want; they state what we “ought” to do socially desirable ways to achieve our needs.
They influence our choice of goals and the means for achieving those goals. Indeed without values to
guide us, it would be difficult to make any decisions.
Value system
An individual’s values arranged in a hierarchy of preferences, called a value system. E.g. Challenges Vs
conformity or generosity Vs Frugality.

Each person’s unique value system is developed and reinforced through socialization from parents,
religious institutions, Friends, personal experiences, and the society in which he or she lives,

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Types of Values
Values come in many forms, and different scholars have devoted considerable attention to organizing
them into coherent groups. Shalom Schwartz’s model received considerable research support across more
than 40 countries. The reduced dozens of personal values in to 10 broader domains of values and further
organized these higher order bipolar dimensions.

The 10 broader domains includes universalism, Benevolence, Conformity, Tradition, Security, Power,
Achievement, Hedonism, Stimulation and self-direction. The four clusters of the model include self –
transcendence, conservation, self – enhancement and openness to change, the two higher order bipolar
dimensions are:-
(a) Openness to change at one extreme and conservation at the other extreme.
(b) Self enhancement to self-transcendence.

Values Congruence
Value congruence refers to situations where two or more entities have similar values systems.
Incongruence between the value systems of employees and their organizations has a number
consequences, values are guide posts, so employees whose values different nakedly from the
Organization’s value might make decisions incompatible with the organizational goal. Incongruence also
heads to lower Job satisfaction and organization commitment, as well as higher stress and turnover among
employees.
Values across Cultures
We need to understand differences in cultural differences in cultural value to avoid unnecessary conflicts
and misunderstanding between people from different countries. Some cultures value group decisions
whereas others think that the leader (Individual) should take charge.
Individualism:- the extent to which a person values independence and personal uniqueness e.g. Taiwan
 Power distance: - The extent to which people accept unequal distribution of power in a society.
Those with high power distance accept and value unequal. Power, where as those with low power
distance expect relatively equal power sharing. In high power distance cultures, employees are
comfortable receiving commands from their superiors, and resolving conflicts through formal rules
and authority. In contrast people in low power distance cultures prefer being involved in decisions
and resolving conflicts more through personal networks and coalitions.
 Uncertainty Avoidance:- The degree to which people tolerate ambiguity (low uncertain avoidance)
or feel threatened by ambiguity and uncertainty (high uncertainty avoidance). Employees with high
uncertainty avoidance values structured situations where rules of conduct and decisions making are
clearly documented. They usually prefer direct rather than indirect or ambiguous communications.
 Achievement versus Nurturing:- Achievement oriented value assertiveness competitiveness, and
materialism, they appreciate people who are tough and favor the acquisition of money and material
goods. In contrast people who are tough and favor the acquisition of money and material goods. In
contrast, people in nurturing – oriented cultures emphasize relationships and the well – being of

23
 others. They focus on human interaction and caring rather than competition and personal success.
Long – term Versus short term orientation:- people in different cultures also differ in their long –or short
term orientation. Those with a long – term orientation anchor their thoughts more in the future than in the
past and present. They values thrift, savings, and persistence, whereas those with a short term orientation
place more emphasis on the past and present, such as respect for tradition and fulfilling social obligations.

Φ Activity 2.3.
Attempt the following
1. Define the term “ value “ using your own words
2. Explain value system and indicate how it could be developed and reinforced.
3. What types of values do you know? (Mention as much as possible).
4. Discuss individual value congruence and its consequences on organization
5. Describe the importance of understanding the difference of value across
cultures by giving, some examples from your own experience.

Ethical Values and Behavior

Ethics refers to the study of moral principles or value that determine whether actions are right or wrong
and outcomes are good or bad. Most ethical principles which help to better understand the ethical
dilemmas facing organizations are:
Utilitarianism:- This moral principle stating that decision makers should seek the greatest good for the
greatest number of people when choosing among alternatives.
Individual rights principle:- The moral principle stating that every person is entitled to legal and human
rights.
Distributive Justice Principles:- the moral principles stating that people who are similar should be
rewarded similarly and those dissimilar should be rewarded differently in proportion to those differences.
Care principle:- The moral principles stating that we should benefit those with whom we have special
relationship.
Attitudes
Attitudes represent the complex of beliefs and feelings that people have about specific ideas, situations,
or other people. Attitudes are crucial since they serve as the mechanism by whichmost people express
their feelings.
Stephen P. Robbins has defined attitudes as the evaluative statements – ether favoring or disfavoring
objects, events, or people. They reflect how one feels about something. For example, and employee’s
statement that he feels underpaid by the organization reflects his feelings about his pay.
Characteristics of Attitudes
 Directed toward specific objects, events, or people.
 Learned and less stable.
 Define one’s predisposition toward given aspects of the world.

24
  Provide emotional basis of one’s interpersonal relations and identification with others.
 Some are persistent and enduring, but attitudes are subject to change. Components of Attitudes
Attitudes have three components. These components are:
A) Affective – consists of the feelings, sentiments, moods, and emotions about some person, idea,
event, or object. It is the emotional or feeling component of an attitude that is learned from parents,
teachers, and peer group members. Eg. “ I don‟t like Mr. Y because he discriminates against
minorities.”
B) Behavioral (intentional) – refers to the intention and predisposition to act in a certain way. It is a
C) person’s tendency to behave toward someone or something in a certain way. For example, I might
choose Mr. Y because of my feeling about him.
D) Cognitive – constitutes perception, opinions, beliefs, knowledge, or information held by an
E)
individual. This component is the thought process, with special emphasis on rationality and logic
e.g. “discrimination is wrong.”
People try to maintain consistency among the three components of these attitudes and among all their
attitudes. But conditions may arise that lead to conflicts. The conflict individuals may experience among
their own attitudes is called cognitive dissonance. E.g. when a person has more than one job offers and
is forced to choose one he/she may end with a conflicting final decision. Cognitive dissonance can be
resolved by attitude & behavior change.
Work – Related Attitudes
Include job satisfaction, job involvement and organizational commitment.
A) Job satisfaction
 An individual’s general attitude toward his/her job.
 High level of job satisfaction implies employee’s positive attitudes toward the job.
 Dissatisfied person holds negative attitudes about his/her job.
B) Job involvement
 An extent to which a person identifies intrinsic satisfaction psychologically withhis/her
job and attempt to exceed the normal expectations associated with the job.
 Those who have little job involvement see their job just as something done to earn living.
(extrinsic motivation).
 A state in which an employee identifies with a specific organization and its goal, and
wishes to maintain membership in the organization.
 High organizational commitment is characterized by low absenteeism andturnover.
 Less committed employees see themselves as outsides, express more dissatisfaction about
things, and not see themselves as long – term members of theorganization.

25
 Φ Activity 2.4.
Attempt the following
1. Explain what we mean by “Ethics” and list the most Ethical dilemmas which
fact may organization including h organization you know.
2. In you understanding, what is attitude? Mention its characteristics.
Briefly describe the three components of attitudes

3. Discuss job related attitudes

How do you think attitude affects behavior and results? Give examples from your own
experiences

2.2.2. Personality and Individual Behavior

In text question
Dear learner, what is personality? What factors do you believe shapes personality? Howdo you
think personality affects individual behavior and organizational success? Personality refers to a
relatively stable set of feelings and behaviors that have been significantly formed by genetic and
environmental factors. It consists of psychological and behavioral attributes that distinguish one
person from another.
Personality Formation
The basic personality of a manager or employee is formed before she or he ever becomes a members of
an organization. Indeed, personality formation stats at birth and continues throughout adolescence.
Broadly speaking, personality (of an adult) is considered to be made up of both heredity and
environmental factors, moderated by situational conditions.
Heredity - refers to those factors that were determined at conception. This aspect holds that the ultimate
explanation of an individual’s personality is the molecular structure of the genes, located in
chromosomes. Evidence shows that traits such as shyness, fear, and distress are most likely caused by
inherited genetic characteristics. But personality attributes are not completely dictated by heredity.
Environment – comprises factors such as, culture in which we are raised, our, Early conditioning, the
norms among our family, friends, and social groups, and other influences that we experience. Hence, the
environment to which we are exposed plays a substantial role in shaping our personalities.

26
 Cultural forces

Hereditary forces Individual personality Social class and other

group membership force

Family Relationship
forces

Figure factors forming personalities.

Situation:- influences the effects of heredity and environment on personality. An individual’s personality,
although generally stable and consistent, does change in different situations. The varying demands of
different situations call for different aspects of one’s personality.
Personality traits
Personality traits are enduring characteristics that describe an individual’s behavior. Recent studies have
reported that certain personality traits predict certain work related behaviors, stress reactions, and
emotions fairly well under certain conditions. Several large companies, therefore, use personality tests
and assessments to hire executives. Personality traits can more understoodby looking in to the Big five
personality Dimensions‟.
The Big five personality Model: demonstrates five basic dimensions underlie all others and encompass
most of the significant variation in personality. These vital personality dimensionsare discussed below.
1. Extroversion – characterized people who are outgoing, talkative, sociable, and assertive. The
opposite is introversion, which refers to those who are quite, shy, and cautious. Introverts are more
inclined to direct their interests to ideas than to social events.
2. Agreeableness – an individual’s propensity to defer to other. It includes the traits of being
courteous, good – natured, empathic, and caring. Also may be labeled as “friendly compliance”
with its opposite being “hostile noncompliance” individuals with low agreeableness tend to be
uncooperative, short tempered and irritable.
3. Conscientiousness – is a measure of reliability. It characterizes people who are careful,
responsible, dependable, and self – disciplined. Those with low conscientiousness are easily
distracted, disorganized and unreliable.
4. Emotional stability – taps a person’s to ability to withstand stress. People with positive emotional
stability tend to be calm, self – confident, and secure. The opposite is neuroticism that refers to
high levels of anxiety, hostility, depression and insecurity.
5. Openness to experience – addresses a person’s range of interests and fascination with novelty.
Open people are sensitive, flexible, creative and curious. Those who score lowon this dimension

27
 tend to be more resistant to change, less open to new ideas, and more fixed in their ways.
Personality Attributes influencing OB
 Locus control – refers to the degree to which a person believes that behavior has a direct impact
on the consequences of that behavior. Some people believe that they are masters of their own fate,
and hence are said to have an internal locus of control. In contrast, other people think that happens
to them in their lives is a result of fate, chance, luck or the behavior other people. These people
have an external locus of control. Individuals who have high scores in externality are less satisfied
with their jobs, have higher absenteeism rates, are more alienated from the work setting, and are
less involved on their jobs than are internals. The internals have strong desire for participation,
prefer decentralizedorganization, require freedom and autonomy, and appreciate a reward system
for individual performance and contributions.
The self – concept
It is people’s attempts to understand themselves. The self is a unique product of many interactingparts
and may be thought of may interacting parts and may be thought of as the personality viewed from within.
It includes crucial concepts of self – esteem and self – efficacy.
 Self – Esteem – is the extent to which a person believes that he/she is a worth while and deserving
individual. A person with high self – esteem is more likely to seek high – statusjobs, be more
confident in his or her ability to achieve higher levels of performance, and derive intrinsic
satisfaction from his or her accomplishment. In contrast, a person withlow self – esteem may
be more content to remain in a low – level job, be less confident ofhis/ her ability, and focus more
on extrinsic rewards.
 Self – efficacy – is concerned with self – perceptions of how well a person can cope with situations
as they arise. In other words, it refers to an individual’s‟ set of beliefs about her/ his capabilities to
perform a task. Those with high self – efficacy believe they can perform well on a given task or
job in a situation. They feel capable and seek challenging jobs. In contrast, those with low self –
efficacy are more prone to doubt their capabilities, will exhibit low self – confidence, and may
seek out tasks that are relatively easy and less challenging.
Authoritarianism – the extent to which a person believes that power and status differences are
appropriate within hierarchical social systems, like organizations. A highly authoritarian person tends to
accept directives from someone with more authority purely because the other person is “the boss.” A less
authoritarian individual may carry out appropriate and reasonable directives from the boss, but he/she also
questions things expresses disagreement with the boss, and even refuses to accomplish orders if they are
for some reason objectionable.

Risk propensity – the extent to which an individuals is willing to take chances and make risky decisions.
A manager with high risk propensity leads the organization in a new and different direction. He or she
might be a catalyst for innovation. But this manager might jeopardize the continued well – being of the
organization is the risky decisions prove to be bad ones. A manager with low risk propensity may lead to
a stagnant and overly conservative organization or help the organization successfully survive turbulent

28
and unpredictable times by maintaining. Stability calm.. hence risk propensity depends on the
organizations environment.

Φ Activity 2.5.
Attempt the following
1. Using your own words how do you explain personality? What factors do you
think forms personality?
2. What is a personality trait? Explain it using the “Big Five personality model?
3. What are the personalities attributes that influence organizational behavior?
4. How do you think personality influence behavior and result? Give examples.

2.2.3. Perception and Individual Behavior

In text question
Dear student, How the perception process take place? What is the implication for the managers?
Perception is the process of receiving, selecting, organization, interpreting, checking, and reacting to
sensory stimuli or data, it is a process by which individuals organize and interprets their sensory
impressions in order to give meaning to their environments.

As the sketch above shows, perception represents the psychological process where by propel take
information from the environment and make sense of their world. It further includes the world – events,
people objects, situations, and soon on an involves searching for obtaining and processing information
about the world.
Sensation deals chiefly with very elementary behavior that is determined largely by physiological
functions. It relies upon the sense organs which are only tools or way physiological functions. It relies
upon the sense organs which are only tools or way stations, receiving and transmitting signals that are
then processed by the CNS (brain)
However, perception is more complex and much broader than sensation, it is a complicated interaction of
selection, organization, and interpretation, it uses the cognitive process to filter, modify, or completely
change the raw data received through the senses.
Factor that affect perceptual Selection
Factors which influence a perceptual selection are of two categories – External and internal External
Factors; size- large size perceived more
Intensity – more intense factors are more likely to be perceived
- E.g. bright lights, loud noises)
- Contrast – external factors that stand against the background or that arenot what
people expect are better perceived.
- Motion – a moving thing is more likely to be perceived than a stationaryone

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 - Repetition – a repeated event is better perceived than a single situation
- Novelty & familiarity – a familiar of a novel factor can easily be perceived

A combination of these or other factors may be operating at any time to affect perception. They in
conjunction with certain internal factors of the person doing the perceiving, determine whether any
stimulus is more or less likely to be enticed.
Internal Factors: aspects of the perceiver that influence perceptual selection some of the more important
internal factors include personality, learning and motivation.
Personality – is shaped, in part by perception in turn, personality affects what and how people perceive.
An aspect of personality known as field dependence/ independence best, describes the relationship
between personality and perception. A field dependent person tends to pay more attention to external
environmental cues, whereas a field independent person relies mostly on bodily sensations, A field
dependent person will take longer to find hidden figures embedded in complex geometrical designs than
will the field independent person.

The implications of the field dependence/ independence for behavior are that the field independent person
interacts more independently with other people and seems to be more aware to important differences tin
other’s roles, status and need.
Learning perception is strongly affected by past experiences and what was lathed from those experiences.
A lot of what a person “sees” in the world is a result of past experience and learning. Though the
past experience may not be relevant to the resent situation, it is nevertheless used by the perceiver. For
instance solution for a poor output record in the operations departmentof a manufacturing plant can be
perceived differently by different persons. The engineer perceives the solution as one of improved systems
design. The human resources manager perceives the solution as one of more training and better wage
incentives. The department head perceives the solution to be more effective organizing, planning, and
controlling. The workers may perceive low output with pleasure because it is a way of “ getting back” at
their supervisor, whom they dislike. This shows that all the relevant personnel perceive the same situation
in completely different ways. These differences are the results of the subjects‟ life experiences both from
their specific environment and schools.

Motivation also determines what a person perceives. A person’s most urgent needs and desires at any
particular time can influence what he or she perceives. For example, a hungry person is more sensitive to
the dour of food cooking then is a person who has just eaten. In general, people perceive things that
promise to help satisfy their needs and that they have found rewarding in the past. They tend to ignore
mildly disturbing things (a barking dog) but will perceive very dangerous ones (the house being on fire)
the relationship between perception and motivation can best be summarized by the Pollyanna principle
pleasant stimuli are processed more efficiently and accurately then less pleasant ones.
Perceptual Errors
The perceptual process can result in errors in judgment or understanding in several ways, including
perceptual defense, stereotyping, the halo effect, etc.

30
 Perceptual defense:- is the tendency for people to protect themselves against ideas, object, or culturally
unacceptable or threatening. People hear what is, people can become psychologically deaf or blind to
disturbing parts of their environment. Three general explanations of perceptual defense are:
 Emotionally distributing information has a higher threshold (i.e., we do not perceive it readily)
than neutral or no disturbing information. That’s why a chain of events may be seen differently by
those who are not personally involved and by those who are involved.
 Disturbing information and stimuli are likely to bring about substitute perceptions that aredistorted
to prevent recognition of the distributing elements.
 Emotionally arousing information actually does arouse emotion, even though the emotion is
distorted and directed elsewhere.

The above explanations help to understand why some people, especially supervisors and workers in an
organization, have a “blind spot”. They do not “see “ or they consistently misinterpret certain events or
situation.
Stereotyping:- This refers to the tendency to perceive another person as belonging to a single class or
category. Common categories (attributes) from which people often stereotype are race, sex and status. In
stereotyping attributes or traits are assigned to someone solely on the basis of a category in which that
person has been laced.
Example
Women perform only simple tasks. This person is woman
This person performs only simple tasks
The perceiver may dwell on certain expected characteristics and fail to recognize the attributes that
distinguish the person as an individual.
Stereotypes generally have some inaccuracies, some overestimations or underestimation of real
differences, and some degree of accuracy. Still, we should remember that stenotypes are never as accurate
as our personal knowledge of a person.

Halo effect:- This is the process by which the perceiver evaluates all dimensions of another person solely
on one impression, either favorable or unfavorable. A halo blinds the perceiver to other attributes that
should be evaluated in attaining a complete, accurate impression of the other person. It often plays a major
role in employee performance rating. That is, a manger may singleout one trait and use it as the basis for
all other performance measures. For instance, an excellent attendance may produce judgments of high
productivity, quality work, and industriousness – whether they are accurate or not.
 Other perceptual errors include:
*Primacy effect:- holds that “first impressions are lasting impressions.” It is a tendency to quality form an
opinion of people based on the first information we receive about them.
 Recency effect:- happens when most recent information dominates our perception of
 others. The most recent information has the greater influence on our perception of
someone when the first impression has worn off with the passage of time

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Attribution
Attribution is the process of observing behavior and explaining the causes of such behavior. The behavior
that is observed may be our own or that of others. Two general types of attributions are.

i) Dispositional attributes: Which ascribe a person’s behavior to internal factors such as

personality traits, motivation, or ability?
ii) Situational attributions: Which attribute a person’s behavior to extant factors such as
equipment, social influence from others, the situations, or chance?
The basic framework around which attributions are formed consists of three major factors:
a) Consistency – extent to which the person perceived behaves in the same manner at different
times when faced with the same situation.
b) Distinctiveness – extent to which the person perceived acts in the same manner in different
situation.
c) Consensus – extent to which others, faced with the same situation, behave in the mannersimilar
to person being perceived.
Attribution Errors
Two potent biases when people make attributions are:
Fundamental Attribution Error – is the tendency to underestimate the impact of situational or external
causes of behavior and overestimate the impact of personal or internal causes of behavior. When seeking
to understand why people behave the way they do.
Self-serving Bias – People readily accept credit when told they have succeeded (attributing to the
ability & effort), yet often attribute failure to such external, situational factors as bad luck or the problem’s
inherent “impossibility”. In general, individuals often attribute their own (and others) success or failure
to four causal factors: ability, effort task differently, or luck.

32
 Φ Activity 2.6
Attempt the following
1. Explain how perception process takes place.

2. Describe factors which affects perceptual selection and how by giving

examples

3. What are perceptual errors and how they happened? What are their
implications to managers and employees?
What do you understand by the term attribution? What types of attributions
do you know?
4. Discuss the three frame works around which attribution formed giving some
examples from your experience

5. Explain the two types of attribution errors people usually make

[Link] of Group Behavior

In text question
Dear learner, what is a group? Is there any group know in your organization or the
organization you know? Why groups formed?

Groups (Dynamics) In Organization

Definition:- A group may be defined as two or more people who bear an explicit psychological
relationship to one another.
Members interact regularly to accomplish a common purpose or goal. Meet the requirements of inter –
dependence and also share an ideology.
Group Dynamic
It is the adjective changes in the group structure as a whole produce by changes in any part of the group.
Types of Groups
Generally, there are two types of groups in organizations – Formal and informal – with their
subdivisions.
a) Formal Groups – created by the organization to undertake various organizationalpurposes and
processes. These include command groups and task groups.
Command (Functional) group

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  Specified by organizational chart and is made up of the subordinates andsupervisor.
 Permanent existence e.g. Business Management department of AU,

Task group
 Employees who work together to complete a particular task or project.
 Limited (specified) time period. E.g. committees and task forces.
b) Informal Groups – They evolve naturally.
 Created by members of the organization for purposes that may or may not berelevant
to organizational goals.
 Consists of interest and Friendship groups:

Interest Groups
 Individuals who may not be members of the same department or task group but cometighter
to attain some mutual objective.
E.g. a group of employees requesting management for more benefits
 Group formed due to some common bond among the members.
 Common bond may be age, Political beliefs, sports, or ethnic background

Why People Join Group?

A) Organizational requirement (formal group)
 Profession
 Earning money
 Goal achievement – to pool talents, knowledge and/ or power to completecertain
job.
B) Individual demands (informal)
 Security – reduce insecurity
 Self – esteem – obtain feelings of self – worth
 Status – membership in an important group
 Affiliation – fulfill social needs.
 Power – to achieve power in groups.
The Five stages of group Formation
1. Forming – initial stage which is marked by uncertainty and even confusion.
- Hesitation as to propose, structure, task, or leadership.

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 2. Storming – Characterized by conflict and confrontation.
- Development of group structure and patterns of interaction.
3. Norming – Marked by cooperation and collaboration
- “We “fit with high cohesion and group identity.
- Acceptance of roles sense of Unity.
4. Performing – Fully functions of group.
- Devoted to effectively accomplishing tasks agreed upon.
- Play group roles and make effort toward achieving goals.
5. Adjourning – End (dissolution) of the group.
- Will never be reached in permanent groups.
- Common for project teams or task forces with a specific objective, once theobjective
is met.
2.3.1. Characteristics of Groups
Groups are characterized by some crucial of erasures as they pass through the five basic stages of
development. These group attributes are:
 A role structure
 Norms
 Cohesiveness, etc.
Role is a set of expected behavior patterns attributed to some occupying a given position in agroup.
It is the part an individual plays in his/her group to help the group reach its goals.
Example: a person may be a leader, doer, facilitator, etc.
Role structure – the set of defined roles and interrelationships among those roles that the groupmembers
define and accept
- Can be described by the role development model as shown below

Group Process Individual Processes

Expected Role Sent Role Perceived Role Enacted Role

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 - Leads to a failure to know what to do.
Fig. Role Structure
Role Ambiguity – arises when there is no clear information as to playing one’s role
- When role expectations are not clear
- Possible causes poor job descriptions, vague instructions from a supervisor or unclear
information from colleagues.
Role conflict – situation when a person is confronted by divergent role expectations. Example: Inter
conflict – conflict between roles.

Intra role conflict – conflict within the same role due to opposing demands fromdifferent
sources.

Role Overload – happens when expectations for the role exceed the individual’s capabilities todischarge.

Example – giving several work assignments to an employee to perform at once

- Taking on too many roles at one time.

Behavioral Norms
 Norms are acceptable standards of behaviors that are shared by the group members.
 State what the members should and should not do under some conditions.
 Define boundaries between acceptable behaviors.
 Can be counterproductive – don’t produce any more than you have to.

 Norm conformity
 Tendency to change one’s attitude and behavior to adhere to the group’s standard.
 If an individual desires acceptance by the group.
 When one perceives the group is important – reference group in which the personfeels as
the group members and is aware of other members.
 Socialization
 A generalized norm conformity which occurs as a person passes from being anoutsider
to being an insider in the organization.
 General learning of things such as dress, working hours, and human relation.

36
 Φ Activity 2.7
Attempt the following
1. What is a group in organization? How and why is it formed from the
experience you know?
2. Discuss the types of groups you known in the organizations.
3. What are the stages of group formation and special features of each stage?
4. What are the characteristics of all groups in common
5. What makes groups ineffective? Mention measures to be taken to make a
group effective?

[Link] Work Team

In text question
Dear student, what is a team? Do you think it is similar or different with a group?

Team is a special form of task group which operates as a unit with little or no supervision to accomplish
organizational objectives. Some types of teams include:
 Problem solving team – knowledgeable workers – most popular
 Management team – manager’s formality departments who coordinate highly popular.
 Work team – responsible for the daily work of the organization.
 Virtual team – work teams which interact by computer
 Quality circle – workers and supervisors meet intermittently to discuss workplaceproblems.
Team Building
Various Approaches of Team Building

Family groups (members from the same Special groups (start – up teams
organizational unit task forces, committees
interdepartmental groups)

Task accomplishment (e.g. problem solving, 1 Task accomplishment (e.g.

decision making, role clarification goal setting special problems, roles and
etc.) goal clarification, resource
utilization, etc…)

37
 Building and maintaining effective 2 Relationships (e.g.
interpersonal relationships (e.g. boss – interpersonal or inter unit
subordinate relationships and peer conflict, and underutilization
relationships) of each other as resources.

Understanding and managing group processes 3 Process (e.g.

and culture communications, decision
making, and task allocations)

Role analysis technique for role clarification 4 Role analysis technique for
and definition role clarification and
definition

Role negotiation techniques 5 Role negotiation

[Link] and Politics

In text question
Dear learner, do you think groups and teams are the same? Can you explain some
differences or similarities?

Organizational politics is how one can pragmatically get ahead in an organization. Companies are
always engaged in internal political struggles, political struggles, power struggles, infighting and so on,
that is normal life.

Organizational politics consists of international acts of influence undertaken by individuals or groups to

enhance or protect their self – interest conflicting course of actions are possible. The political behavior or
organizational participations tends to be traditionally viewed as opportunistic for the purpose of
maximizing self – interest.
But a recent counterargument is that organizational politics is actually the cornerstone of organizational
democracy as one theoretical analysis recently noted:
Politics is central to the development of real organizational democracy. It provides practical advice on
how to work with a constructive political “ mindset” and highlights how such behavior underpins, rather
than undermines, the process of redistributing organizational influence.
Research on organizational politics has identified several areas that are particularly relevant to the degree
to which organizations are political rather than rational. These areas can be summarizes as follows.
1. Resources:- There is a direct relationship between the amount of politics and how critical and
scarce the resource core, also, politics will be encouraged when there is an infusionon new,
“unclaimed” resources.
2. Decisions:- Ambiguous decisions, decisions on which there is lack of agreement anduncertain,
long – range strategic decisions lead to more politics than routine decisions.

38
 3. Goals: The more ambiguous and complex the goals become, the more politics there willbe:
4. Technology and external Environment: in general, the more complex the internaltechnology
of organization operating in turbulent external environments:
5. Change: Reorganization or a planned organization development (OD) effort or even aplanned
change brought about by external forces will encourage political maneuvering.
Specific political Strategies for power Acquisition
 A supervisor focused political strategy
 A job – focused political strategy
 Information strategy
 Financial strategy
 Constituency building strategy
 Controlling access to information and persons
 Neutralizing access to information and persons
 Neutralizing potential opposition
 Forming a winning coalition
 With drawing from petty disputes
 Maintain Alliances with powerful people
 Embrace or Demolish
 Divide and rule
 Attacking and Blaming others
 Wait for a crisis
 Take counsel with, caution
 Be aware of resource dependence
Game playing in politics
According to Henry Mint berg the games played at all organizational levels by both managers and
managers, are intended to accomplish a variety of porpoises.
Games are played to:
1. Resist authority (the insurgency game)
2. Counter the resistance to authority (the counterinsurgency game)
3. Build power base (the sponsorship game and coalition building game)
4. Defect rivals (The line versus staff game), and bring about organizational change (Thewhistle

39
 blowing game)
Political Influences Tactics
Influence is what playing political about research has identified nine specific tactics used by
individuals to influence their superiors, coworkers, and subordinated to do what they want to do.
These tactics are:
1. Consultation used to gain your support for a course of action by letting you participate in the
planning for the action.
2. Inspirational appeals used to gain support by app to your values or idealism or byincreasing
your confidence that the desired cause of action will be successful.
3. Rational Persuasion Used to convince you that a particular cause of action is “logically”the best
cause because it is in your best interest.
4. Ingratiating tactics Used to create a sense of obligation because some one is doing something
nice for you. Designed to make it difficult for you net to support the cause of action desired by the
ingratiatory.
5. Coalition tactics Used to gain your support by seeking the help of others to persuade you, or by
using the support of others as an agreement for you to also give your support.
6. Pressure tactics the use of demands intimidations, or threats to gain your support fro particular
courses of action.
7. Legitimating used to gain your support is consistent with organizational – policies or rules.
8. Personal appeals used to gain your feelings of Loyalty and Friendship in order to gain your
support.
9. Exchange tactics Used to gain your support by the promise that you will receive a reward or
benefit, If you comply, or by reminding you of prior favors which you must now reciprocate.
Note: that not all of these tactics are necessarily equally effective in bringing about desired results.
Ethical Consideration of Politics
Understanding Ethical concern of politics is important for managers who manage modern organizations
of the 10 most unethical activities one study identified, there are directly political:
1. Making arrangements with vendors for the purpose of personal gain
2. Allowing differences in pay based on Friendships
3. Hiring training and promoting personal favorites rather than those who are morequalitative.
To help overcome the negative impact the organizational politics can have on the ethics of an
organization the following guidelines can be used.
1. Keep lines of communication open
2. Role model ethical and nonpolitical behavior
3. Be wary of game players acting only in their an self-interests
4. Protect individual privacy interests
5. Always use the value Judgment “is this fair?”. As one analysis pointed out” when it comes to the

40
 ethics or organizational politics, respect for Justice and human rights should prevail for its own
sake.
Φ Activity .8
Attempt the following questions.
1. What is a team? What types of team do you know? (Give example)

2. Explain approaches to build teams

3. What is organizational politics? What evidences can you explain to show

organizations are political than rational?

4. List some political strategies for acquisition of power in organization.

5. What is the importance of political influence? Discuss by giving practical
examples how some political influence tactics implemented in organizations?
[Link] and Negotiation
In text question
Dear student, what is conflict? How do you now the existence of conflict in your work
situations?

A conflict is a clash in expectations, duties, ideas or inters 3 sts. It can be positive and
productive or negative and unproductive.
[Link] of Conflict
Most organizations have and need some level of conflict, but when conflict becomes divisive; it damages
both morale and productivity. People no longer think of the competition as the firm across the street but
vies with the group across the hall. Deadliness and opportunities may be missed, employees may get
promotions based on politics rather than performance, management turnover may increase and
accountability may become a game in which any mistake or shortcoming is always someone else’s fault.
Managers have to resolve conflict in early stage.
Conflict may have three stages Early symptoms spreading conflict symptoms and intense conflict.
Early Symptoms
People avoid interaction and hide away in their offices speaks whispers and don‟t makeeye contact
People are quiet in meeting for fear to saying the wrong thing
The rumor mill grinds unchecked

Symptoms of spreading conflict

41
Memos are loaded with blame laying, and self-justification
Meetings drag on forever and issues are studied to death for fear of making the wrongdecision
Accountability leads to backstabbing
Defeatism runs rampant and negative attitude forward organizational goals take place.

Symptoms of intense conflict

 There is no unified vision or mission
 Internal disagreements lead to missed deadlines
 Departments become so busy competing against one another than they are not realistic in
projection about cost production or revenues.
2.6.2. Sources of Conflicts
Conflict occurs in organizations for as many reasons as there are people in them. Some majorcauses
include:
- Differing goals and interests
- Change in procedures, goals even equipment
- The change in composition of work force
- The values, background, languages, and education of different age groups and culturallydiverse
workers give rise to conflict.
- Cultural bias.
2.6.3. Types of Conflicts
The types of conflict explained here are common to many organizations, indeed, more than onetype may
be occurring at the same time.
a) External conflict these are conflicts caused by pressures coming from outside theorganization
itself
 Completion
 Government regulations and
 Takeover bids are examples or external conflict
b) Management style and process conflicts stemming from management style and process involved
leadership, compensation and reward systems, and other structural causes. These types of
conflicts are more numerous and troublesome than any others.
c) Mission and value conflict in which there are opposing factions tying to lead the organization in
different directions.
d) Operation and system conflicts generated by the systems that turn out the product, operation and
system conflict involve schedules, the transition from design to production, information system,
income possibilities between systems, and differences in judgment on priorities.

42
 e) Interdepartmental conflict comprise strife between divisions, departments, teams or functional
groups that should be working cooperatively, instead they fight over resources, turf, autonomy,
compensation, prestige, recognition, or power.
f) Interpersonal conflicts arise when two people have opposing goals that interfere with the other’s
reaching his or her goal.

2.6.4. Conflict Triggers and Stages

Conflict Triggers: this is circumstances in which conflict stimulated, conflict triggers includes:
understanding triggers helps the managers to manage conflict.

a) Over lapping Jurisdictions: back of clear boundaries may create competition for responsibilities
and those of associates and peers.
b) Scarce resources: personnel, funds, authority and information are all resources whose scarcity
can create conflict in an organization.
c) Poor communication: Barriers impedes two way communications or understanding of messages
managers can ask feedback observe, and review communication channels.
d) Time pressure: managers should evaluate the ability to cope with time pressures when setting
deadlines and making assignments.
e) Unreasonable rules and standards: these lead to negative conflict between supervisors and
associated supervisors try to uphold them, whereas associated have difficult complying.
f) Personality conflict: some people have difficulty getting along with one another and it’s more
productive to move one person to another area.
g) Status Difference: the organization hierarchy creates power differences that bread resentment
managers can minimizes them by demonstrating that they value the contribution of all associates
h) Unrealized expectations when expectations are not fulfilled, the resulting dissatisfaction may lead
to conflict clarifying the expectations individuals and groups have of one another as well as of the
organizations eliminates this type of negative conflict,

Stage of conflict:

Stage 1: Individuals seek allies and support Stage 2: polarization and conflict become visible
Stage 3: Conflict touches every aspects of the organizationStage 4: Emotions and hostilities are pervasive
Stage 5: conflict theaters survival of the organization

43
 Φ Activity 2.9
Attempt the following
1. Discuss what do we mean by conflict

2. Explain each stages of conflict

3. Describe sources of conflict and conflict Triggers

4. What types of conflict did you might come across in your work situation

2.6.5. Strategies for managing conflict

 Avoidance : if the issue is not important or if confronting the problem will damage a critical
relationship
 Smoothing: This is asking the parties to hold on until later or calm down.
 Accommodation: This strategy of a commendation requires are party to give in to the other, thus
it satisfies are side but ignores the needs of the other. It works when maintaining the relationship
is more important than any other considerations, or when thechanges are not important to the one
giving in
- Appealing to higher goals: the parties that disagree are brought together and applied to in the
name of some higher good
- Compromise: since everyone gains something but also has to give up something in a compromise
this strategy satisfies no one completely, but all involved can move forward compromise is most
effective if the problem is compels, time is short and those inconflict are committed to different
situations.
- Forcing: a manager steps in and orders the parties to handle the problem in a specific way. The
strategy relies heavily on authoritative leadership and may increase the problems rather than
resolve them.
- Problem solving: this strategy attempt to resolve problems by finding the best solution that is
acceptable to all parties sometimes called collaborating. It is the only strategy that works to
achieve a win – win solution.
2.6.6. Problem solving principles
- Win – Win for mutual Gains: Classic negotiation involves bargaining over positions eachside
takes a position makes concessions, and agrees or doesn’t agree to ultimate result. Such
negotiation seldom leads to wise agreements.
- Separate the people from the problem: Negotiators are people first and must be dealt with in a
sensitive way. Separating the substance of the problem from the relationship makes if possible to

44
 maintain good feelings by understanding the individuals‟ perceptions.
- Focus on interests: the basic problem for resolution is not in the positions taken by each sides but
in their conflicting needs and fears.
- Invent options for mutual Gain: the assumption that the size of the pie is fixed or sticking to a
reestablished position is likely to defeat creativity.
- Use objective criteria: it is important to find objective criteria and facts on which to base
agreements that both agreements that both parties can accept e.g. policies, standards, costs etc…..
2.6.7. Options in dealing with conflict
They are four other options to deal with conflicts
The use of five steps to conflict resolution
The use of in Effective and Effective options
The XYZ model and
Handling a fight effectively no let us see each in short.

Five steps to conflict resolution

Using a methodical approach to solving conflict has the same benefits and much in common with the
problem solving techniques following these steps provides a focus, in formation and alternatives. Here
are the steps.
1. Define both content and relationships issues as specifically as possible
2. Create alternative solutions that will resolve the conflict
3. Test the solution by trying if over the short term of with small group
4. Evaluate the solution by looking at if critically.
5. Decide whether to make the solution permanent or try another

No effective and Effective Options

 Flight or fight this is an instinctive response to conflict flight means avoidance which means
physically leaving, closing your mind to other viewpoints, or immersing yourself in work so that
you do not have to deal with the issue.
 Force or Talk in many cases, people in conflict choose to force their solution on others, either
physically or emotionally. This creates a win – lose result in which the real issues are avoided and
the person able to exert the most force wins.
 Blame or Empathy trying to assess blame is a fruitless strategy that often involves attributing
nonexistent motives to your opponent.
 Gunny sacking or present focus Gunny sacking as a conflict strategy means that you store up past
grievances, as if in a large bag, so you can un hold them during a fight.
 Personal rejection or Acceptance Expressing personal rejection or disapproval of an individual

45
 can be demoralizing and demeaning.
 Fighting foul or fair when people work together there is usually a personal side to the relation ship,
as well as formal one. They learn where the other person is vulnerable and can hurt.
 The XYZ model The XYZ model implies that X = the behavior Y= consequences and Z
= feelings. If is three step method that stresses planning implementation and getting anagreement
to change can help you tackle conflict in this fashion
E.g. The person is the next office slams his door when – ever he goes in or out, startling you and
interrupting your concentration you are the person who is disturbed so it is your problem. So you
solve this conflict using XYZ model
 Confronting this challenge or conflict idea (slams of door) steps to resolve.

Step 1: plan what to say:

- When y do x (the behavior), y (consequences) happen, and you feel Z (feelings). For example,
you could say.
- “When you slam the door” (x behavior), “I‟m startled enough to lose my concentration” (y
consequence), “ and I feel frustrated and annoyed” (Z feelings). You may even want to open
the discussion by asking the other person to help you solve your problem.

Step 2: Stick to your plan (Implementation) once you have made your XYZ statement, give the other
person time to respond. If response negative explain it defiantly.
Step 3: Getting an agreement to change seek an agreement on actions that you will both take to resolve
the conflict collaborating to find mutually agreeable solutions is the desired outcome.
Handling a Fight Effectively
Three methods to handle a fight effectively
 Step the disruptions
 Work to ward a long – term solution and
 Criticizing constructively
Unit summary
Individual behavior dynamism can be explained interims of motivation ability. Role perceptions and
situational factors (MARS). According to MARS model behaviors and results of individuals can be
affected by the above factors. Additionally the values. Personality perceptions, Stress, Emotional and
attitudes of an individuals has direct influence on the motivation, ability, role perception and situational
factors which intern influences behavior and result. There fore managers should understand these factors
to understand individual differences to best use out of them.
Groups are very important aspects of organization in addition to individuals which positively or negatively
influence organizational productivity. There is a time when group is productive to organization or
counterproductive to organization. To this end it is important understand group concepts, its types, its
stage of development and its role. Group is simply two or more people who bear an explicit psychological

46
 relationship to one another. They may be formal or informal. People join group join group for
organizational requirements (formal) or for individual demands (informal). There five stages of group
formation namely. Forming, Storming. Norming, performing and adjourning with own characteristics.
For groups to be effective there should be clear role structure, group norms and cohesiveness. There is a
special form a group known as a team in organizations. Teams are relatively autonomous or they operate
with little or no supervision. There are different types of teams which can be established different
approaches to achieve some organizational goals.

The concept of power and politics are very important in organizational behavior organizational politics is
the normal life of an organization which consists of international acts of influence undertaken by
individuals or groups to enhance or protect their self-interest conflicting course of actions are possible.
Politics is central to the development of real organizational democracy. Research on organizational
politics has indentify several area that are particularly relevant to the degree to which organizations an
political rather than rational. There are specific political strategies for power acquisition and political
influence tactics. Understanding these strategies and tactics are very important for modern managers to
influence behavior and results.
Conflict is a clash in expectation, duties, ideas or interests. It can be positive and productive or negative
and unproductive. There may be different symptoms for the existence of conflict. Managers have to be
aware of this before problems created. The sources of conflict are different based on different situations.
There are different strategies to resolve conflict. The strategies or method could be implemented based
on the stage of conflict, the types of conflict and the source of conflict.

[Link] List
Read each of the points below and tick whether or not you have understood it.

Point Yes No
I can describe the MARS model
I can explain work related behavior
I can discuss factors forming personalities
I can discuss the perception process
I can explain why groups formed in organization and their implications to
mangers
I can compare and contrast group and team
I can explain value system and factors which helps to develop and reinforce
it
I can draw a lesson on how value can influence behavior and result
I can explain ethical dilemmas which fact many organizations

47
 I can explain how attitude affect behavior and result
I can list some political strategies for acquiring of power
I can explain the importance of political influence in organization

[Link] Questions
Multiple choices
Instruction: Choose the letter which carries the best option
1. Which of the following is not the components of MARS model
A. Ability C. Structure
B. Situational factor D. Motivation E. Role
2. The match of individuals and their competencies with job is
A. Ability C. Person Job matching
B. Employee competency D. Role perception
3. All are work related behavior except
A. Task performance C. organizational citizenship
B. Maintaining work attendance D. Work promotion
4. The extent to which people value duty to groups to which they belong, and to groupharmony
is
A. Individualism C. Power distance
B, Collectivism D. Uncertainty avoidance
5. One of the following is correct about attitude
A, It is directed towards specific objects, events or people
B, It is learned and stable
C, They can not be changed
D, It explains ones new experience.
6. The component of attitude which emphasis on rational and logic is
A. Affective C. Cognitive
B. Behavior D. Intentional E. None
7. Work related attitudes include
A. Job satisfaction C. Organizational commitment

48
 B. Job Involvement D. All
8. The extent to which an individual believes that he/she is a worth while and deserving individual
is
A, Self esteem B, Authoritarianism
C, Self efficacy D. Risk propensity
9. Conflict is a clash in expectation ____________.
A. duties C. expectation
B. ideas D. interests E. All
10. “All women perform simple tasks. Almaz is a woman, therefore Almaz perform simpletasks.”
The above perceptual error is:
A. Perceptual defense C. Halo effect
B. Stereotyping D. Primacy effect

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 Chapter Three
Communication
[Link]
Dear student, well come to unit three. This unit deals with important management concepts;
communications, Decision making, leadership process and style, conflict and Negotiations,
Organizational structure and culture.
As you might know 75% of the managerial role is communication. The early managers did not gave much
attention on communication but recently, communication get much attention including in organizational
behavior. So here we will focus on the background of communication, the communication process and
forms of communication. Moreover, we will seebarriers of communications and methods to overcome
them.
The second important component of this unit is decision making. Decision making is also one major task
of any manager in given organization. To this end, you will see phases of decision making using different
models. Additionally, we will focus on decision making styles and some helpful techniques on creative
decision making.
The third component of this unit is leadership process and styles. Leadership is still evolving concept.
However, you will see it from traditional theories of leadership perspectives and modern concepts of
leadership perspectives. The concept of leadership is very crucial for a managers of modern organizations
as it helps how one can become influential than beingpositional manager. This is also the important part
in which you will see the different types of leader ship style and the situation in which you apply them.
Finally you will see organizational structures and cultures which are very important in managing
organization.
Objectives of the Unit
At the end of this you should be able to:
 Discuss the process of communication
 Explain how to overcome communication barriers in you work situations
 Discuss the role of communication for organizations
 Compare and contrast behavioral decision making models
 Explain decision making styles and their implication to managers
 Make creative decisions using different techniques
 Describe basic organizational structure
 Explain the importance of culture to organizations.

[Link] overview
50
3.2.1. Background of the role of communication
In the part communicating et little attention by managers. The early theorists never fully developed or
integrated into management theory. At the same time, they did generally recognize the role of informal
communication in relation to the problem of supplementing the formal, hierarchical channels. But the
pioneering theorist Chester Barnard, in his classic functions of the executive, was the first to develop
the idea of the central, important role communication plays in organization.
According to him communication is the major force in the organization. To him, communication both
makes the organization cooperative systems dynamic and links the organization purpose to the human
participants.
Barnard listed seven specific communication factors that are especially important in establishing and
maintaining objective authority in an organization. The believed them, in brief, to be following.
1. The channels of communication should be definitely known
2. There should be a definite formal channel of communication to every member of an
organization
3. The line of communication should be a direct and short as possible
4. The complete formal line of communication should normally be used
5. The persons serving as communication centers should be competent
6. The line of communication should not be interrupted while the organization functioning every
communication should be authenticated
3.2.2. Communication Defined
The term communication is freely used by everyone in modern society, including members of the general
public, organizational behavior scholars and management practionaries. In addition, as note earlier, the
term is employed explain a multitude of sins both tin the society as a whole and in work organizations.
Despite this widespread usage, very few members of general public and not a great many more
management people can precisely define the term. Part of the problem is that communication experts
have not agreed on a definition themselves.
However; there are some definitions in different literatures, these includes
1. Communication is a word of Latin origin it means sharing of information or intelligence
2. Communication is the transmit ion of information, and feelings that are the message from one
person one person the source, to another, the receiver, in such a way that the intended meaning is
understood.
3.2.3. Nature and Development of Communication
The ability to speak clearly & effectively has been recognized as attribute or an educated person since the
beginning of recorded history.
Today communication and its study are especially relevant. Modern day communication studies are
keeping up with and in most cases staying ahead and also the common in the fields of anthropology,
psychology sociology, linguistics and other fields.
3.2.4. Characteristics of communication
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Dynamism: Prior attitudes, planned thoughts and people to whom the message is addressed affect
communication it is thus a dynamic phenomenon without beginning, without end continually
responding & continuously changing.
Uniqueness: is involves from the nature of dynamism, No two communications events are like b/c of
change in the sender the receiver, deliver time situation etc…
Transactional in Nature: In communication each person affects the other b/c each communication
involves reciprocal exchanges of feeling, meanings & responses.
In text question
Dear student, what is the role of communication.

How do you define communication?

3.2.5. Process and types of communication in organizations

In text question
Dear student, what is the process of communication? How does this process of
communication take place?

The communication process is the sequence of steps needed to transmit a message from a
source to a receiver, as show in the following figure.
1. Source creates 2. Select channel 3. Send message
message message

Noise

6. Interprets 5. Filters 4. Receiver Gets

Message - Experience Message
- Knowledge

Figure. The communication process

It is a complex process, and there are many opportunities for misunderstandings to occur, communication
begins when someone the source – has an idea, information, or a feeling to transmit. The source then
cheeses the words, pictures or non- verbal behaviors that express the information that is he or she creates
a message. The message will reflect the knowledge and experience of the source.
The source also cheeses a channel or a way to transmit the message. Some examples of channels are:
- Face to face conversations
- Fax machines
- Memos
- Telephones
- Newsletters and
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 - Meeting

The source is responsible to send the message in understandable way and through appropriatechannels.
The source is also responsible to look for feedback from the receiver for a response of reaction that tells
the source whether the message has interpreted for a response of reaction that tells the source whether the
message has interpreted correctly. Sometimes noise, a distortion of the message occurs and becomes a
barrier that prevents the receiver from understanding what the sender meant. No matter how well –
designed the system, noise exists to the extent that the message received is different from the message
sent. A good guideline is to eliminate as much as noise from your communication as possible, and to do
so, you need to be aware of where the noise may come from compute. In addition to both a wireless
system and wide system built around fiber optic links.
The wireless communication technology is beginning to replace phones anchored by copper wires.
However there may be a price paid by working people for this wireless technology.
Telecommuting
An outgrowth of the communications technology explosion with special relevance to organizational
behavior is telecommuting. This development has resulted, among other things, in the creation of new
words that have become part of the everyday language of business. The termtelecommuting is used and
defined in many different ways and includes both flexible scheduling and the use of advanced information
technology.
Telecommuting has both advantages and disadvantages. Some of its advantages include:
 Increasing retention rate
 Maximizing office space
 Reducing absenteeism
 Sick time and overtime pay

 Increase employee productivity and job satisfaction

 Reduce transportation cost
The disadvantages of telecommuting include:
 Decreases face to face communication and flexibility
 Demand greater coordination
 May be suitable only for certain Jobs, and may be abused by employees
 Feeling of loneliness
3.2.6. Choosing a Medium for communication
In communication affectively, it is important to choose “right‟ medium and there are a wide range of
choices some of their medium for communication includes:
 Telephone

53
  E – mail
 Voice mail postal mail
 Interoffice mail
 Fax post it notes
 Telephone message ships
 Pager message
 Cell phone
 Overnight couriers of messengers
 Express mail. All of these are important, but the most effective medium forcommunication
depends on the information richness and complexity
Management Information System (MIS)
Closely related to media is communication technology applied through management information systems.
MIS involves computer hard ware and software, information knowledge, and people both MIS personnel
and users at all levels of the organization.
MIS is usually associated with integrated with integrated networking of information the support
management decision making planning; improve customer service and communication in different sector.
Telecommunications
Closely related to computerize MIS is the telecommunications explosion, In fact, the boundaries between
computing and communicating are becoming very blurred. Today, computers communicate
telecommunication networks.

Forms of communication
In text question
Dear student, what forms of communications do you know?

a) Verbal communication: This form of communication uses written or spoken words to transmit
messages. Creating a message that will be understood requires matching the form it will take,
spoken or written, to the situation. The importance of the message, the need for a response and
personalities of the people involved and a variety or organizational and personal factors all affect
the choice of symbols and channels for transmitting a message. Notification of a pay raise, for
example, should be made in writing.
i) Written communication: As already indicated one form of verbal communication is written
communication words recorded on papers films, or computer disk it shouldalways be used for
verbal messages that are important to individuals and that need to be retained. Policies, rules and
training materials should be in writing so that they can be referred as needs. Written
communications is more likely to be used when upper management communicates with employees

54
 at lower levels of the organization, since a written message is leys subject to Misinterpretation
than a spoken one an can also be kept for future reference. In addition as noted earlier should record
discipline interviews in writing because the information may be needed in the future. They should
do the same with performance appraisals.
Preparing written communication on significant matters is an important part of the manager job,
and you should approach it as a project requiring research, planning, and evaluation. You can use
the following process to develop effect tive writtencommunications.
How to prepare Written communication
1. Seek information. Before you start a written communication, you should ask several questions,
don‟t assume you know what management wants in a specifics situations unless it is a well –
established routine? You should know.
 The purpose of the communication
 The necessary format, whether a form or something original
 The audience that will be receiving it
 The style, tone, content, and policies governing it
 The deadlines
 You resources, such as assistance from your boss
 Your basis for evaluating your communication
2. Plan and write a draft. Once you have done some research and have determined the purpose of
your communication, you will be able to develop a draft. You should
 Organize the information you want to communicate in a logical order
 Outline the key points in short phrases
 Support each of the major points with related facts
 Write a draft by changing the phrases in the outline to full sentences

3. Seek feedback. You should seek and accept feedback on your written communications. It is helpful
to ask your manager and colleagues to read drafts of your and give you feedback. When they do,
 Accept in it good faith and assume it is given with the intention of turning out agood
document
 Compare drafts to develop techniques and approaches that will apply to subsequent
assignments
4. Be responsible for your writing. Both the content and the style of your writtencommunication
are your responsibility. You should take care to
 Evaluate your own work using a “ Checklist‟‟ such as the one in the student studyguide f
or this text.
 Double – check personally to ensure appearance and accuracy of language and
presentation (typos)

55
  Verify information before you use it
 Use feedback to improve the document and if frequently returned to you forrevisions,
improve your skills.
You may have your own standards for written communication, but so do both your boss and the
organization for which you work, you should know the standards and forms used in your organization,
such as when it is necessary to use a formally written memo as a reprimand instead of giving it orally.
The standard you set for yourself will transmit a message about you beyond your own work group, as
written communications are often shared in other areas of the organizations or kept in files as
documentation for actions taken by your or others, setting high standards for your written communication
and improving your skills is important. As with most skills, practice will increase both your competence
and your confidence in writing.
ii) Oral Communication and the Listening Process: The other form of verbal communication, oral
communication, is the sending and receiving of a message using spoken words, as in a
conversation or a meeting. It is richer then written communication, for it conversationor a
meeting. It is richer then written communication, for it conveys body language, as well as words
and emotional tones. Oral communication is most effective when immediate feedback is needed
that is, when the source needs to know right away that the receiver has fully understood the
message. For instance, a supervisor explaining how a machine’s safety guard is used should do it
orally and in person. The machine’s operator will be able to ask questions and the supervisor can
rephrase instructions if necessary.
Being a good receiver by listening well is as important in communicating as sending clear oral messages.
People actually spend more time listening than using any other communication process. Adults from a
wide range of occupations spend about 45 percent of their time listening,
30 percent speaking, 16 percent reading, and 9 percent writing, as shown in figure 2.2 understanding the
listening process will contribute greatly to improving your communication skills. Listening can be thought
of as a circular process that consists of five steps: receiving, understanding, remembering, evaluating, and
responding. These steps, shown in Figure 3.2. are discussed in the rest of this section.
Receiving is the discerning of auditory stimuli such as words, tone and loudness, as well as nonverbal
messages (discussed in the next section). It is more.

56
 6

3 Series 1
Series 2
2

0
Listening Speaking Reading Writing

Source: Adapted from Joseph A. Davit messages, Building Interpersonal communication skills, 2nd ed.
(New York: Harper Collins College publishers 1993), P.85.

Receiving

Responding Understanding

Evaluating Remembering

Fig. 3.3 The circular listening process

Source from Messages: Building interpersonal communication skills, 2nd edition by Joseph A. Davit.
Copyright @1993 by Harper Collins publishers, inc. Reprinted by permission

Than hearing, Gestures and facial expressions are part of the message received, as is recognizing that
which is omitted.
Understanding
Is the interpretation of what the speaker means. It uses the thoughts expressed and the emotionaltone to
make sense of the message an d learn other aspects, such as its urgency, joy, or sorrow.
Evaluating
Is the analyzing of the message that was heard and the judging of its intent? Consciously or unconsciously,
we try to determine e the underlying reasons for the message . the better you know someone, the more
likely you are to judge his or her intentions correctly. Not only do we judge the underlying intentions of
57
the person sending the message , but we also analyze the facts and actions involved.
Responding
Is the returning to the sender of some information about the message? Some responses are madewhile a
person is speaking to let the speaker know that the listener is paying attention. Other responses may
come when the speaker has finished- for instance, the listener may ask for clarification, challenge the
message, or agree with it
A combination of oral and written communication, that is, a spoken message followed by a written
confirmation, is useful for summing up and clarifying information and for preserving it supervisors often
use a combination of oral and written communication in performance appraisals to allow feedback from
the employee but also document performance to assist the organization with future planning. Minutes of
meetings combine oral and written communication as well, providing a written record of discussions,
plans, decisions made by groups so that everyone will know what was decided and by whom.
b) Nonverbal Communication
Nonverbal communication transmits messages without words, primarily through body language.
Body language is any body movement, conscious or unconscious, that conveys a message about a
speaker’s or listener’s thoughts or feelings. Body language includes not only facial expressions,
gestures, and body position (such as leaning forward in a chair), but tone of voice as well. When
introduced to a new member of your work group, you are likely to smile, shake hands. And say a
few words in a pleasant tone to express welcome. Frowning at the newcomer or putting an arm
around his or her shoulders might indicate a hostile or patronizing attitude. Nonverbal
communication may also involve the use to space, especially the physical distance at which one
talks with others.
It is important to be aware of nonverbal communication in the workplace because it should be
consistent with the verbal message. Telling employees that it is wrong to take paper, computer
disks, and pens home for their children will have a different impact if done with a broad smile
rather than with a serious look. If you keep someone waiting or read your mail instead of giving
full attention to a visitor in your office, send a messageof disrespect and disinterest to the person.
j) Body Language:
Interpreting the body language of those with whom you work can give you important clues as to
what they are thinking. Although culture and personality affect body language, some gestures and
expressions pre commonly understood learning back, for instance, usually indicates relaxation
whereas learning forward shows attentiveness or anxiety. A person who crosses arms or legs or
turns away from you then you are speaking may be sending you a defensive or negative message
about is being said.
When combined with a verbal message, hand gestures can indict ate a person’s feelings. People
often use them when they are very excited. Large and frequent hand and arm gestures often signal
that the person is relaxed and feeling expansive. When people get angry, they may show stress
through a stiffening of the body and reduction of hand movements. If you notice that someone is
clenching his fists, drumming on the table withher fingers, or tugging at his nose or ears, your
message is probably getting a negative reception or creating nervousness or discomfort in the
listener. If you observe stroking of the chin or forehead, the receiver is probably thinking or trying
58
 to decide.
i) Facial expressions
Facial expressions are the best indicators of our feelings and are more likely to be believed than verbal
messages. Fear, humor, interest, surprise, and anger are easy for us to distinguish as we watch others.
When verbal and facial messages conflict, the facial message will prevail. A compliment delivered
with a smile will be believed while onesaid with a frown will not. An associate who avoids looking
at you when telling you why his report is late may be holding information or lying.
People often use body language to help them understand what others really mean. It is essential
for supervisors to know that sending the same message both verbally and through body language
will make it more effective, whether it is a reprimand or a compliment.
The increasing cultural diversity of the work is another reason managers should be aware of nonverbal
communication, as body language differs from culture to culture shaking hands firmly, while looking
someone in the eye sends an American business acquaintance a message of confidence and
trustworthiness. In France, a kiss on each cheek is an appropriate greeting between friends, and often
between business colleagues as well.
j) Use of Space
The distance at which people are comfortable interacting may vary depending on the culture of the
individuals. For example, while the English and the Germans stand farther apart during conversations than
Americans, the Arabs and the Japanese stand closer together Eduard T. Hall identified four basic distances
for interacting: intimate space for a close friend (touching to eighteen inches) personal space (eighteen
inches), personal space (eighteen inches to four feet), social space
(four to twelve feet), and public space (twelve feet and beyond). Violatinga person’s intimate space can
create uneasiness and is likely to provoke a movement away from you. A supervisor who invades an
associate’s intimate space or touches the person could be misunderstood as intimidating or sexually
harassing the individual.
Space can be used in other ways to influence interactions between people, and furnishings can play a part
as well. Both express status, relationship, the nature of the interaction. The content and affect of
communication between people change considerably when spatial zones change. A supervisor reviewing
an associate’s report from behind a desk sends the message that be or she is in charge and is evaluating
performance. If the two sit side by side at a table, the message is more supportive one of working together.
If chairs are placed at right angle to one another people can more easily move into one another’s space.
When a desk is between two people, the interaction shift from a personal space to a social space.

The level of importance and formality of a meeting is expressed and influenced by the location and
furnishings provided. Fro example, a supervisor who distributes an agenda a week ahead and arranges for
a special room, with refreshments, is sending a message to those who will be attending the meeting.

3.2.7. Dealing with communication Barriers

In text question
Dear learner, How do you understand communication barriers? What communicationbarriers you know
59
in your situations?
It is not enough for managers to understand the process by which communication takes palace. They must
also realize that there are barriers creating noise in the channel and often preventing the message from
being understood
Barriers to communication are breakdowns in the communication process that prevent the receiver from
understanding the message as it was intended. The next section considers what cause these breakdowns.
Causes of communication Barriers
Given the n umber of messages sent, the differences in receivers, and the many variables in the process,
it is not surprising that misunderstandings occur. However, you can build your communication skulls and
avoid misunderstandings by recognizing the major communication barriers and knowing how to ever
come them. These barriers include poor timing, inappropriate channels, differences in culture and
language, differences in perception, emotions, poor listening, and information overload.
Poor timing:- timing refers to when a message is sent and received; poor timing can be a barrier to
communication because either the sender or the receiver is not ready to focuson the message or needs
more time to respond. Both supervisors and associate can communicate more effectively by stopping to
consider the circumstances and choosing anappropriate time. For example, bob tried to explain the
company’s new customer service program an hour after the department heard that there would be layoffs
before Christmas. It is unlikely that his group received much of the information on the new program. A
sender has the responsibility to ensure that the timing of a message is as appropriate as possible by
considering the circumstances under which it will be received, as well as the need to send it.
Inappropriate channels:- choosing an inappropriate channel will not only reduce the effectiveness a
communication, but can also cause it to be completely misunderstood.
Differences in Culture and Language:- We perceive the world around us according to the culture in
which we were raised. In addition, most people understand only their own culture. Cultural differences
are compounded by differences in language, creating serious barriers to communication. As organizations
become more international in scope and the work force grows more culturally diverse, supervisors need
to learn what messages their actins
Send to people brought up in a different culture and language. For instance, whenmanagers try to involve
their week groups in decision – making, they may lose the respect of the workers from south America or
India, who might think their managers too weak to make their own decisions. Manger can prevent such
misunderstanding by recognizing and explaining the difference in cultural values, but is some of the
workers are not proficient in English and the manager is not fluent in their language, the explaining must
be done with great care, to ensure full understanding.
Cultural patterns of socialization also affect the way men and women communicate with each other, in her
best – selling book, you just don‟t Understand, Deborah Tannen, who has researched the subject, explains
that for women conversation is primarily a means of establishing intimacy and report. Women emphasize
finding similarities and sharing experiences with other to make connections and negotiate relationships.
For men, however, conversation is “a means to preserve independence and negotiate and maintain status
in a hierarchical social order.” Men strive toward this end by exhibiting their knowledge and becoming ht
center of attention through storytelling, joking, or imparting information. As with other generalizations,
these distinctions are not absolute, characteristics ascribed to each gender may overlap in both men and

60
women.
Differences is perception:- Perception is the process of accepting, organization and interpreting the many
messages that constantly bombard us. To help us make sense of our surroundings, perceptions filter out
some of these messages, people perceive thingsdifferently for a number of reasons, including difference in
personality, learning styles, age, gender, culture, and education.
Emotions:- Emotions triggered in the sender or the receiver may cause breakdown in communication. We
all experience emotions, such as jealousy, anger, love, and fear. Sometimes emotionally loaded words or
slogans are deliberately used to manipulate people. But even when there is no ill intent, such terms and
phrases may ser off an unexpected reaction. Asking “aren‟t you done with that year” may send the message
that the employee had better woke faster without regard to circumstances or quality. Asupervisor could
send a more encouraging message by asking is the worker had all the needed information or had a problem
with the task.
Poor listening:- We spend more time listening than we do reading or writing, as shown earlier in Figure
However, May people are poor listeners for a variety of reasons. They may be busy, preoccupied with what
they themselves want to say, focused on the speaker instead of the message, or simply distracted. Poor
listening behavior sends a clear message to the other person that he or she does not matter. However, good
listening skulls can be learned, and this chapter’s sections on survival tips for supervisors provide some
suggestions.
Information Overload:- Changes in technology have had a phenomenal effect on communication.
Computers are able to analyze and produce great quantities of information to assist with decision – making.
But this same phenomenon may also create an information overload, when too much information is
received for people to process effectively.

Breaking down barriers between individuals

An individual who wants to communicate will be able to ever come barriers. Organizations are becoming
increasingly aware of the importance of effective communication for productivity and quality management.
Your own organization may offer training to improve interpersonal skill such as listening, interpreting and
using body language, observation, speaking, and understanding different cultures. Some basic rules for
breaking down barriers follow.
Consider the Timing:- Stanley has concluded that doing performance appraisals on a Friday afternoon
gives members of his group time to think about the discussion over the weekend. By Monday they have
had a chance to consider bothnegative and positive comments and gain some perspective. Good timing
requires that managers thank about the purpose of the communication. It is useful to consider the time of
year, day and workweek, as well as what is happening in the organization. When training employees, for
then progress can be better to do so early in the week day, for then progress can be observed and
assistance givenuntil the new pattern is established. Holding counseling and discipline interviews early in
the day, and early in the week provides an opportunity for managers to watch for improved performance.
But a brainstorming session on new products held right after the company has announced imminent
downsizing is likely to bear little fruit since people would be too upset at the new to engage in concentrated,
creative thinking.
Select the Appropriate Channel:- Terri supervises six sales representatives and had found that the best

61
way to introduce new products is to get the group together for a demonstration. All six receive information
at the same time, have the opportunity to ask questions, and can give her feedback about the product.
Supervisors who consider how best to communicate information whether in person, in a group meeting, or
in a memo, for instance are more likely to communicate is successfully. As noted earlier, complex or
important information, such as new safety rules and procedures, should be transmitted in face – to face
communication, which should be recorded and handled privately, but exceptional performance should be
commended publicly to communicate that positive behavior will be rewarded.

Be Aware of Cultural Differences: Nancy, who supervises a group of social workers, has found that when
an employee’s behavior surprises her, her surprise may be due to cultural differences. She realized that
George seldom answered her phone calls and was abrupt when he did, yet he was pleasant and friendly in
person. When she asked him why he did not respond to her phone calls, he explained that he knew it was
silly of him, but he hated telephones. He had been raised in a rural village in Libya and sometimes felt
overwhelmed by the technology that now surrounded him. Mangers who respect individuals and are aware
of the effect of culture on their actions are able to reduce cultural barriers. Informal talks with employees
from different cultures about favorite foods, holidays, and religious customs give work groups and
managers a chance to about differences that shape an individual’s personal needs and behavior on the job.
Consider employees’ Personal Lives:- Martin, a fifty – year – old bank manager, has learned that he
should consider how his employee’s personal lives affect their decisions. He used to think of Sam was
asked to work overtime or come in on a Saturday, he refused. Martin believed that such opportunities to
earnmore money or demonstrate commitment to the company were too good to turn down. His opinion of
Sam changed, however, when he finally asked him why he refused to stay late. He learned that Sam shares
child care responsibilities for his three children and his wife cannot leave for work until he gets home.
State Messages simply:- Bonita, the creative director in an advertising agency now writes memos as
simply and briefly as possible. When she has something important to communicate to her group, she can
be sure that what she has said in the memo is what she meant to say. She realized that AMA meant
American Marketing Association to one group and American Medical Association to another when people
came to a meeting prepared to discuss brochures for two different groups. The result was a feeling of
frustration fro all involved, as well as resentment over wasted time and effort. Now she seldom uses
abbreviations and acronyms, but spells the words out.
Reduce the impact of Emotions:- Seiki has the following quotation on his wall: “If you can keep your
head, when all about you are losing theirs…” whether the issue is pressure to complete a job or a conflict
between workers, managers can be helpful by focusing on facts rather than emotions managers are more
effective if they are able to stay calm and logical. Negative emotions between workers or toward the
organization can create unpleasant work climates and lower moral, so it is important to find ways of
reducing such feelings. Giving employees an opportunity to get to know one another and perhaps discover
common interests also helps make work relationships more predictable and comfortable, for people tend
to e uneasy when they do not know what to expect from others.
Improve Listening Skills:- When Julie invites Hans to come to her office to discuss a problem, she
shows that she is interested in what he has to say and thinks his contribution is significant. She puts
aside her other work, does not accept phone calls, looks Hans in the eye, and leans forward in there chair
while she listens. Ability to listen, kike any other skill, improves with practice.
62
Improve Observation skills:- Juanita has found that she can learn a lot by observing, everything from the
cleanliness of the work space to the clothing of the people in it sends a message to the managers. Some
workers, for example, are habitually careful and neat with tools, clean the desktop before leaving, or put
dust covers on computers. To an observant manager change in that behavior may indicate stress, an extra
ordinarily heavy work load, or some other pressure.
Get Feedback:- It is a good idea to check your own perceptions of a situation by obtaining feedback. Make
sure your message has been received by asking fro a response or a restatement of the message. After giving
instructions on how to operate a machine, for example, a supervisor could check his or her perception that
the worker understands by asking for a demonstration or a restatement of the instructions.
Be Accessible and Develop a Climate of Trust:- Stefan has told his employees that he wants to know if
they have a problem of if they make a mistake. His door is open to them for apart of each workday. Since
he wants to find out about mistakes as soon as possible, he has let the group know that he expects some.
Employees will not share information that they think may be used against them in the future. It is essential,
too, for a supervisor to be discreet and let employees know that information about personal matters or
professional progress will not be shared inappropriately with others. It is especially important not to discuss
one employee with another in a negative way because that person will wonder if tomorrow you will be
discussing his or her problems with someone else.
In learning to communicate effectively, you need to remember that all the parts in the communication
process are related. Getting just one or two right is not enough supervisors who communicate well
recognize the importance of coordinating the entire process to ensure that the message intended is the
message received.
Those who hold managerial positions in organizations must also be able to communicate successfully
outside their own work group. They are responsible for sharing information about, as well as with, their
own group and coordinating their group’s work with the work of others. As a manger you will save as an
important communication link between hierarchical levels in the organization and yourpeers from other
departments. The next part of this chapter explains the flow of communication in organizations and
discussed some of the barriers.
Communication Barriers in Organization:
Most organizations have structural hierarchical, and social barriers to communication structural result
when the organization’s department or divisions are physically separated in various cities, states, or,
increasingly, in different countries when organization systems foster negative internal competition.
Structural barriers result when the organization’s departments or divisions are physically separated in
various cities, states, or increasingly in different countries when organization systems foster negative
internal competition. Hierarchical barriers arise when people at one level (such as assembly line workers)
are reluctant to communicate with people at other levels (such as plant mangers). Social barriers: develop
when people in one part of an organization for instance, the sales force – have different education,
experience, and organizational roles than those in another – for example, production workers or accounts
receivable employees.
Some organizations have other barriers, such as a compensation system that crates competition rather than
collaboration, or an atmosphere of fear and distrust, which blocks understanding. Both of these situations
erect barriers to communication, it is the responsibility of all managers and supervisors to try to reduce
such barriers by communicating the organization’s mission and goals and the impotence of working
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together to achieve them. If they fail to do so, competitive attitudes between groups and individuals may
decrees the organization’s production level and ultimately, its survival. The next part of the chapter
offers additional pointers on breaking down barriers in organizations.
Breaking Down Barriers In Organization
Although it may not be possible to eliminate the barriers crated by an organization’s structure, it is possible
to span them. More and more, technology is enabling offices around the world (or across town) to be
linked by E – mail or video conferencing. Hierarchical barrier are being dissolved in organization to
advance its goals.
Social occasions can be used to eliminate social barriers by encouraging people from diverse areas to
mingle. Getting to know others better at an occasion such as a promotion or retirement part can reduce
fear and distrust.
Survival Tips for Mangers
Your communication skills as manager are crucial both to your own success and to that of your work
group. Some tips to improve your communication with people from different cultures and your active
listening skills follow.
a) Communicating Across Cultures
Communication across cultures is a challenge because both verbal and nonverbal messages are
affected by the cultural orientation of the supervisor and associates. Studies have shown that an
employee’s attitudes about work, time risk taking, authority, change and leadership style are all related
to the culture of origin.
Here are some ways that you can gain a greater understanding of people from other cultures and
communicate with them better:
1. Respect different philosophies and ethical systems. Giving and receiving gifts is an important part
of a business transaction in many Eastern cultures but poses an ethical dilemma for Americans
unless they are aware of company policy and can explain them totheir hosts.
2. Be willing to learn and try different ways of doing things. Mangers who travel to Japan may find
fish so fresh it still wiggles on their plates, as they are honored with the best that can be offered.
3. Be sensitive to ethnocentrism, the idea that one’s own group is superior. Recognize that no one
group is superior to others, just different,
4. Be aware of the need to adapt to cultures with different living standards, customs, and religious
beliefs. For instance, in countries that are very hot, siestas at midday are common, but so are
working late into the evening.
Many companies have developed grogram to orient their employees to countries in which they will be
living or raveling. The programs provide information on culture, language, housing, transportation
systems, and even grocery shopping. Table 1 given example of some contrasting behaviors from different
cultures.
Table 1 Contrasting Behaviors from Different Cultures

Behavior Example

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Eye contact Many U.S. blacks young Spanish – speaking people, and
women avoid direct eye contact as a sign of respect.
Body Language Some African cultures view direct face – to face contract as too
aggressive and challenging. Middle Eastern and Latin cultures
have a much closer conversational distance than
Europeans.

Vocal Tone and speech Spanish and Italian groups may speak more rapidly than others.
rate Americans may talk louder, whereas Britons may
unconsciously communicate feelings of superiority by their
clipped, often abrupt, patterns of speech.

Adherence to Topic Americans and Germans tend to be direct, whereas Japanese

and people from some of the other Asian cultures may be

more subtle, not closing a contract until the last minute.

Americans will want to address the agenda firs t and socialize
later, but individuals from many Eastern and Middle Eastern
cultures prefer to socialize first and deal with business later,

b) Listening Skills
Although most of us believe we are good listeners, we often understand less than we think we do.
Improving your listening skills will help you in many ways. You will grasp assignments better, be able to
do them right the first time, and not need to ask for additional clarification as often. People will see you
as a bright and sensitive person who understands their ideas and feelings. If you listen carefully, you will
also learn to identify the words, spoken and unspoken, that signals problems in relationships. Here are
some tips for improving your listening skills.
Pay Attention:
1. Control distractions and give the speaker your full attention. If you can not avoid taking a phone
call, warn the person you are with that you may have to do so and than keep the call short. Listen
to only one conversation at a time.
2. Identify the speaker’s purpose as you can respond appropriately. Is it to solve a problem, share
information, socialize, or below off steam.

3. Don’t interrupt of finish other people’s sentences. You may have acquired this rude habit because
you are thinking of what to say. Bright people often fall into this trap, especially if they are anxious
to show off what they know. It can result in Jumping to an incorrect conclusion be fore the speaker
has finished and make the interrupter appear arrogant. If you are uncertain whether the speaker
has finished, be sure to ask.
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 4. Don’t a speaker’s bad habits distract you. We have all been subjected to a whiner, a throat clearer,
or a person who repeats a phrase as “you know” at the end of very sentence. A speaker’s slow
style or poor logic may be irksome, but he or she may be sharing something you should know.
5. Don’t be distracted by emotion – packed labels such as “feminist,” “ workaholic,” or “bean
counter.” Try to remove the noise they create and understand the real points thatare being made.
6. Sometimes what is left unsaid is more important than what is said. Many people avoid
confrontation and will use stilted phrases, make long pauses in the conversation, avoid eye
contact, or fidget. Body language – particularly facial expressions and posture when delivering a
message – speaks volumes, especially if it conflicts with what is being said. Be alert to these hints
that there is more to the situations and ask probing questions to find out what is really going on.
7. Make brief notes as you are listening to remind you of questions to ask later or of a task you must
do as a result of the discussion.
8. Use active listening techniques. And body language to let the speaker know that you are paying
attention and understanding what is being said.
9. Postpone evaluating the message until you have heard it all. Weight all of the information instead
of jumping to a conclusion.
Another way to improve your communication skills is by participating in conversations. Speakers are not
the only ones who take an active role in a conversation. If you use the tools for active listening provided
in the next section, you will be able to participate as a listener.
Use Active Listening Tools
1. Ask open ended questions to bet a general picture of the problem. Ask “what” or “why”to get
feelings and values about the facts.
2. Encourage explanation of the other person’s or group’s key words. Ask for mote complexfacts or
personal knowledge
3. Paraphrase to fee back key facts and to verify that you have understood correctly.
4. Restate feelings to ensure that you have understood them.
5. Summarize to organize facts and feelings systematically and logically
6. Use a variety of cues to encourage the speaker, such as “uh – Hum,” “I see,” smiling, orlearning
forward.
Writing is another crucial communication skill. Practice writing a business memo or report using “How to
make your writing Readable.

[Link] in Organizations
Communication is the process that enables organization members to work together, to continue
evoke coordination, and to interpret ever – changing organizational needs and activities. No one
can choose not to communicate. Each member of the organization must be able to recognize and
interpreter the wide variety of messages available to him/her that enable him/her to respond
appropriately to different people and situations. Whatever purposes communication has,
organizational communication is broadly classified into two divisions on the basis of
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 organizational relationship: formal communication. These and their subdivisions are further
defined and elaborated as follows:
In text question
Dear learner, what types of communications you know in organizations
a) Internal Communications
A formal communication:- is the flow of information through formal communication channels. These
channels are dictated by the planned structure established for the organization. Formal communication
is further classified into four. These are:
 Downward communication
 Upward communication
 Horizontal communication
 Diagonal communication
i) Downward Communication:- The flow of information from individuals at higher levels of
hierarchy to those in the lower levels of the organization. The most common types are:
 Job instruction
 Official memo’s Job rationale
 Organizational policy
 Procedures and practices
 Employee performance feedback
 Indoctrination of organizational goal
The common weaknesses in downward communication include:
 Failure to notify of something subordinates should know.
 Giving incomplete information
 Telling about something too late.
 Using the wrong method
 Bypassing in the chain of command
 Giving wrong information
 Actions fails to support communication
ii) Upward communication:- Communication from lower level employees to those higher level
managers in the organizations. It is vital in providing tip management with organizational
information essential for decision making. Upward communication is primarily non directive and
is usually found in participative and democratic organizational environments. Typical means for
upward communication besides the chain of command are suggestion systems, reports, appeal and

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 grievance, procedures, thecomplaint systems, counseling sessions, joint setting of objectives, the
grapevine group meeting sessions, joint setting of objectives, the grapevine group meetings, the
practice ofopen door policy, morals questionnaire.
Managers should encourage upward communication because it provides feedback on how well
employees understand the downward communication. It can encourage employees to submit
valuable ideas. Upward communication to be effective, it must be allowed tooccur freely, not
just at the whim of the manager. Upward communication can provide an emotional release and at
the same time, give the employee and at the same time, give the employee a sense of personal
worth because management listens.
The manager should be aware, however that certain failures may occur in upwardcommunication.
 Few employees want their boss to learn anything negative about them, so they usuallyscreen
out of their communication anything that is not positive.
 Most employees try to impress their superior by exaggerating their contributions
(achievements).
 Some try to make themselves look better by pointing out how others in the department have not
contributed.
 Employee’s personal anchors, aspirations and system of beliefs and values almost invariably
color what he or she says. How many of you would feel the manager of your organization that
his administration is very poor? Few would because of the fear thatthe manger would hold this
against you when determining your promotion. Salary increment etc.
 The employee may be competing for the manager’s job and thus willing to sit by and let the
manger stumble into problems.
iii) Horizontal Communication:- Occurs between staff and other employees on the same level,
for example between principals of different schools, Messages usually relate to task
coordination, information sharing, and conflict resolution. Besides, horizontal communication
furnishes emotional and social support among peers. In effect, it serves as socializations in the
organization, the greater the need to formalize horizontal communication.
iv) Diagonal Communication:- Flows with personas at different hierarchical levels who no direct
reporting relationships. This kind of communication is used to speed information flow, to
improve understanding and to coordinate efforts for the achievement of organizational
objectives. A great deal of communication does not follow the organizational hierarchy but
each occurs as the chain of command.
b) External Communication
There is a great deal of informal communication in organizations. Most of us are familiar with the
term “grapevine”. Used to describe a network of informal communication. Grapevines present in
all organizations. In fact in larger organizations there are many grapevines moving up down and
across departments. Grapevines flourish because communication is a natural human tendency.
People who know each other in the organization talk together informally. One thing they have in
common is the organization talk together informally. One thing they have in common is the
organization they work for, so they talk about eh happenings in the organization.
Grapevines carry two types of information: work related and people related. As we said earlier,
employees want to know what is going on in the organization. When they are not kept informed
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 through formal channels. They seek information from the grapevine.
Likewise they are curious about the people they work with. Grapevines carry the type of personal
information not generally communicated through formal channels.
Some employee considers the grapevine their main source of information. It is fast they get
information quickly and more information is given is normally include in face and with people
they know. Thus the grapevine often has a strongest impact on them than formal downward
communications which are often written and may originate from someone they do not know
personally.
How accurate is the grapevine? There seems to be some debate. Some have claimed 75 percent of
the information is accurate? However there is a danger of incorrect understanding of the message
as it is passed from person to person. A slight error at each step can greatly change the message.

Mangers often become frustrated with grapevines, particularly when they carry incorrect rumors.
But grapevines exist. Managers cannot stop them managers can however increase the accuracy of
the grapevine by feeding it correct information. And they can try to reduce the relevance placed on
the
grapevine by making certain that formal communication is complete and timely.
Φ Activity 3.2.
Attempt the following
1. Explain the nature and development of communication

2. Define communication using your own words

_
3. Discuss how the process of communication takes place

4. Describe the following

a) Written communication
b) Oral communication
c) Body language
d) Use of space
5. List some barriers of communications and indicate how to overcome them.

Most discussions of the decision making process break it down into a series of steps. For the most part,
the logic can be traced to the ideas developed by Herbert A Simon, the well-known Nobel Prize winning
organization and decision theorist, who conceptualized three major phases in the decision making process.
1. Intelligence activity: Borrowing form the military meaning of “intelligence” Simon described this
initial phases as consisting of searching the environment for conditions calling for decision
making.
2. Design activity: During the second phases, inventing, developing, and analyzing possible courses
of action take place.
3. Choice activity: The third and final phage is the actual choice selecting a particular course of
action from among those available.

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 Closely related to these phases, but with a more empirical basis (that is, tracing actual decisions in
organizations, are the stages of decision making of Mintzberg and his colleagues).
1. The identification phase, during which recognition of a problem or opportunity arises and
diagnosis is made. It was found that severe, immediate problems did not receive a very systematic,
extensive diagnosis but that mild problems did.
2. The development phase, during which there may be a search for existing standard procedures or
solutions already in place or the design of a new, failure made solution. It was found that the
design process was a grouping, trial and error process in which the decision makers had only a
vague idea of the ideal solution.
3. The selection phases, during which the choice of a solution made. There are three waysof making
this selection by the judgment of the decision maker, on the basis of experience or intuition rather
than logical analysis by analysis of the alternatives on a logical, systematic basis, and by
bargaining when the selection involves a group of decision makers and all the political
maneuvering that this entails, once the decision is formally accepted, an authorization is made.

PHASE 1 PHASE 2 PHASE 3

IDENTIFICATION DEVELOPMENT SELECTION
1. Recognition 1. Search 1. Judgment
2. Diagnosis 2. Design 2. Analysis
3. Bargaining
Fig. Mintzberg’s empirically based phases of decision making in organizations.
The above figure summarized these phases of decision making based on Mint berg’s research.

Whether expressed in Simon’s or Mint berg’s Phases, there seem to be identifiable preliminarysteps
leading to the choice activity in decision making. Also, it should be noted that decision making is a
dynamic process, and there are many feedback help in each of the phases. “Feedback helps can be caused
by problems of timing, politics, disagreement among managers, inability to identify an appropriate
alternative or to implement the solution, turnover, of managers, or the sudden appearance of a new
alternative. The essential point is that decision making involves making the right strategic choice does
lead to successful decisions for making involves making the right strategic choice does lead to successful
decisions for the organization, but there are still many problems of managers making the wrong decisions.
To go beyond the recent dominance ofthe role information technology plays in the analysis and practice
of effective decision making this relevance to the study and application of organizational behavior is
what has become known as behavioral decision making.
3.4. Decision Making
Before we came to the explanation of behavioral decision making let us try to answer the following
questions:
 Hoe do managers make the right decisions and learn from the wrong ones?
 Why a decision maker does chose one alternative over another?
Classical decision theory operated under the assumption of rationality and certainty. However, the new
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behavioral decision theorists argue that individuals have cognitive limitations and, because of the
complexity of organizations and the world in general, they must act in situations where uncertainty
prevails and in which information – is often ambiguous and in complete: Some times this risk and
uncertainty leads organizational decision makers to make questionable, if not unethical decisions. Because
of this real world uncertainty and ambiguity, a number of models of decision making have emerged over
the years. The foundation and point of departure for developing and analyzing the various models of
behavioral decision making remains the degree and meaning of rationality
Decision Rationality
Rationality in decision making is that it is a means to an end. If appropriate means are chosen to reach
desired ends, the decision is said to be rational. However there are many complications to this simple test
of rationality. To wit, it is very difficult to separated means from ends because an apparent end may be
only a means for some future end. This idea is commonly referred to as the means ends Chain or
hierarchy. Simon pointed out that “that means end hierarchy is seldom an integrated, completely
connected chain often f connection between organization activities and ultimate objectives is obscure, or
their ultimate objectives are incompletely formulated, or there are internal conflicts and contradictions
among the ultimate objectives, or among the means selected to attain them.

Besides the complications associated with the means ends chain it may be even be that the concept is
obsolete. Decision making relevant to the rational adjustments in the economic systemmay in fact produce
undesirable, or at least unanticipated, end results, Simon also warned that a simple means ends analysis
may have inaccurate conclusions one way to clearly means end rationality in to attach appropriate
qualifying adverbs to the various types of thus, objective rationality can be applied to decisions that
maximize values in a given situation. Subjective rationality might be used if the decision maximized
attainment relative to knowledge of the givensubject conscious rationality might be applied to decisions
in which adjustment of means to ends is a conscious rationality might be applied to decisions in which
adjustment of means to ends is a conscious process. A decision is deliberately rational to the degree that
the adjustment of means to ends has been deliberately sought by the individual or the organization a
decision is organizationally rational to the extent that is aimed at the organization’s goal and a decision is
personally rational if it is directed forward the individual’s goals.
In text question Attempt the following
1. Discuss the three major phases in decision making
2. Explain each phases of decision making based on Mint berg’s Model of decision making
3. What are the assumptions of classical decision theorotists? How it is different fromBehavioral
decision making?
4. What is decision making rationality?
5. Briefly explain the behavioral decision making model
Models of Behavioral Decision Making
There are many descriptive models of behavioral decision making. In effect, there have become models
for much of management decision making behavior. The models attempt to describe theoretically and
realistically how practicing managers make decisions. In particular, the model strives to determine to what
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degree management decision makers are rational. The model ranges from complete rationality, as in the
case of the economic rationality model, to complete irrationality, as the case of the social model.

Economic rationality Simon’s bounded Judgmental heuristics and Social Model

Rationality model biased model

Fig. 3.5. The continuum of decision making behaviorLet us now see each model below
a) The economic rational model:
Comes from the classical economies model in which the decision maker is perfectly and completely
rational in every way regarding decision making activists, the following conditions are assumed.
1. The decision will be completely rational I the means end sense:
2. There is a complete and consistent system of preferences that allows a choice among the
alternatives
3. There is complete awareness of all the possible alternatives
4. There are no limits to the complexity of computations that can be performed to determine the best
alternatives.
5. Probability calculations are neither frightening or mysterious
With this almost infallible ability, the decision maker always strive to maximize out comes in
business firm, and decisions will be directed to the point of maximum profit where marginal cost
equals marginal revenue (MC = MR)
Most economists and quantitative decision theorists believe that the economic rational model is a realistic
descriptive model of modern decision making behavior. But there is a critics that rational model is not
the all and end all of effective decision making and that, if carried to the extreme, it may at least be
misleading and at most be harmful to the decision making process.
b) New Rational Techniques ABC EVA. And MVA

Recently traditional accounting and Finance techniques based on the economic rationality model gave
been undergoing radical change. Some companies started to use the above techniques to manage their
costs in a better way let us now see each of these:

ii) ABC
Better Manage costs. Companies use Activity Based Costing (ABC) .ABC determines costs according to
what is paid for the different asks employees perform. Under this technique costs associated with activities
such as processing sales order, expecting supplier and / or delivery problems, and retooling of machine
are calculated. Both the traditional and ABC provides decision makers a much more accurate breakdown
of the cost data.

iii) EVA
The Economic value add? EVA/is along standing of the economic model had been that a traditional
decision is one that results in earnings higher than cost of capital. Traditionally, the cost over capital has
72
simply been equated with the interest paid on borrowed capital. UnderEVA, however, the true cost of all
capital is determined E. g., the true cost of equity capital (the money provided by the shareholders) is the
opportunity cost (what shareholders could earn in price appreciation and dividends if they invested in a
similar company).

Also, what a firm spends on research and development or employees‟ training has been traditionally
treated as expenses, but under, Eva, it is treated as capital investments and is added into the costs of
capital. The EVA is determined by subtracting this total cost of capital from the after tax operating cost.
EVA has become popular because both companies and shareholders see it as a useful gauge for making
decisions about issues ranging from acquisitions and divestitures to compensation. Firms with a positive
EVA are making rational decisions: those with a negative EVA are destroying capital and are in trouble.

iv) MVA
Market Value Added /MVA/ is a more recent techniques it is the difference between total market value
(the amount the investors can take out of the company ) and the invested capital (the total amount the
investors have out into the company) A positive MVA show shows how much capital has been wasted.
EVA and MVT has usually direct relationships. If firm may has positive EVA is the long termso is
MVA. But in the short term the result may be opposite.

c) The social model

Economic rationality model is the social model drawn from psychology. Sigmund freud viewed humans
as bounder of feelings, emotions, and instincts, with their behavior was gilded Longley by their
unconscious desires. Obviously if this were the complete description, people3 would not be capable of
making effective decisions:
Why decision makers stick with bad decision alternatives or escalate of commitment
1. Project characteristics e.g. delay or temporary problems
2. Psychological determinants e.g. negative information ignorance, defensive shieldsand ego
involved
3. Social forces e.g. peer pressure
4. Organizational determinates e.g. communication, organizational politics and resistance to
change.

Simon’s bounded rationality model

To present a more realistic alternative to the economic rationality model Herbert Simon proposedand
alternative model. He felt that management decision making behavior could describe as follows.

1. In charring between alternatives, managers attempt to satisfies, or look for the one that is satisfactory
or “good enough,” examples of satisfying criteria would be adequate profit or share of the market and
fair price.
2. They recognize that the world they perceive is a drastically simplified model of the real world. Is
mostly empty anyway.
3. Because they satisfies rather than maximize they can make their choices without first determining all
possible behavior alternatives and without ascertaining that these are in fact all the alternatives
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 4. Because they treat the world as rather empty they are able to make decisions with relatively simple
rules of thumb or tricks of the trade or from forces of habit. There techniques do not make in possible
demands on their capacity for thought.

In comparison with the economic rationality model, Simon’s model is also rational and maximizing but
it is bounded. Decision maker’s end up satisfying because they do not gave the ability to maximize. The
case against maximizing behavior has been summed up by noting that objectives are dynamic rather than
static: information is seldom perfect; there are obvious time and cost constraints; alternatives seldom lend
themselves lend themselves to quantified preference ordering and the effect of environmental forces
cannot be disregarded. Simon’s modelrecognizes these limitations the traditional economic rationality
model’s assumptions are viewed as unrealistic. But in the final analysis, the difference between the
economic rationality model and Simon’s model is one of degree because, under some conditions;
satisfaction approaches maximizing, where as in other conditions, satisfying and maximizing are very far
apart.

d) Judgmental heuristics and biases model

This model is the one that taking the bounded rationality model we explained above one step further, a
cognitively based model that identifies specific systematic biases that influence judgment has emerged in
the field of organizational behavior.
The judgmental heuristics and biases model is drawn mostly from kahneman and tversky cognitive
decision theorists, who suggested that decision makers rely on heuristics (simplifying strategies or rules
of thumb) such judgmental heuristics reduce the information demands on the decision maker and
realistically help in the following ways.
1. Summarize past experiences and provide and easy method to evaluate the present
2. Substitute simple rules of thumb or “standard operating procedure” for complex information
collection and calculation
3. Save considerable mental activity and cognitive processing.
However, even though these cognitive heuristics simplify and help the decision maker, under certain
condition their use can lead to errors and systematically biased out comes due to decision makers‟
tendency to 0 make assessment deference in events and the relationship between making judgment by
starting to initial value and then adjusts to final decisions.
 Activity 3.3
 Attempt the following
1. Discuss the three major phases in decision making
2. Explain each phases of decision making based on Mint burg’s model of decision making
3. What is the assumption of classical decision the different from behavioral decision making?
4. What is decision making rationality?
5. Briefly explain the behavioral decision making model?

3.4.1. Decision Making Styles

Besides the models of decision rationality, another approach to behavioral decision making focuses on
the styles that managers use in choosing alternative. These styles reflect a number of psychological
74
dimensions including how decision makers perceive what id happening around them and how they process
information look at the following figure how behavioral decision making can be categorized.
As you can see from the above figure, there are four styles of decision making:

 Analytical
 Directive
 Conceptual and
 Conceptual and
 Behavioral

a) Analytical: these types like to analyze situations; Infect they often tend to overanalyze things. They
evaluate more information and alternatives than do directive decision makers. They also take a long
time to make decisions, but they do respond will to new or in certain situations. They also tend to have
an autocratic leadership style

b) Directive: these decision makers tend to be efficient, logical, and systematic in their approach to
problem solving Directive decision madders also kike to focus and get things done quickly. They also
are action oriented, tend to tend to have a very short run focus, liketo exercise power, want to be in
control and in general display an autocratic leadership style.

c) Conceptual: these decision makers discuss things with as many people as in order to gather a great
deal of information and then rely on intuition in making t heir decisions conceptual decision makers
are also willing to take risks and end to be good at discovering creative solutions to problems . at the
same time, however. They can foster an idealistic and indecisive approach to decision making
d) Behavioral style: these decision makers often have a difficult time saying not to people, and they do
not like making tough decisions, especially when it will result in someone being upset with the
outcome.
e) Implications of style: Research reveals that decision makers tend to have more than one dominant
style. Typically managers rely on two or three decisions styles and these will vary by occupation, job
level, and culture. These styles can be used to note the strong and weak points of decision makers. For
example, analytical decision makers make fast decisions, but they also tend to be autocratic in their
approach to take risks, but they are often indecisive. These styles also help explain why different
managers will arrive at different decisions after evaluating the same information. Overall the analysis
of decision making style is useful in providing insights regarding how and why managers make
decisions, as well as offering practical guidelines regarding to deal with various decision making
styles.
Participative Decision Making

As a decision making technique, participation involves individuals or group in process. It can be formal
or informal, and it entails intellectual and emotional as well as physical involvement.

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Participation techniques are being applied informally on an individual or a team basis or formally on a
program basis. Individual participation techniques are

That in which an employee somehow affects the decision making of a manager group participation utilizes
consultative and democratic techniques.

There are many positive and negative attributes of participative decision making Balancing these
attributes in evaluating the effectiveness of participative decision making is difficult because of
moderating factors such as leadership style of personality f the parties involve. Situational, environmental,
and contextual factors and ideology Creativity in group Decision Making
There are two widely recognized dimensions which help to explain the creative process.
1. Divergent thinking: this refers to a person’s ability t generate novel, but still appropriate, responses to
questions and problems. This is in contrast to convergent thinking, which leads to responses these are
based mainly in knowledge and rational logic.
2. Cognitive comple4xity: This refers to a person‟ s use f and preference for elaborate, intricate, and
complex stimuli and thinking patterns; creative people tend t have such cognitive complexity and
display a wide range of interest, are independent, and are interested in philosophical or abstract
problems. It is important to note, however, that creative people are not necessarily more intelligent (if
intelligence is defined by standard tests of intelligence or grades in schools, which tend to focus more
n convergent thinking skills).
3. Creativity Techniques for Management Decision Making
Some techniques that managers can use t make creative decisions include:
 Guided imagery
 Self-hypnosis
 Journal keeping and lateral styles f thinking
Group decision making
Group decision making is god however we have to careful group think problems and phenomena such as
the risky shift (that a group may make more risky shift (that a group may make more risky decisions than
individual members on their own ) helps one better understands the complexity of group decision making
recently a number of social decision schemes have emerged form social psychology these include:

1. Majority wins scheme: this is a type f decision in which the group arrives at the decisionthat was
initially supported by the majority.
2. The truth win scheme: In this scheme as more information is provided and pinion arediscussed,
the group comes to recognize that one approach is objectively correct.
3. The two thirds majority scheme: it is the decision in which two third of the jury initiallyfavors
conviction
4. The first- shift rule: in this scheme, the group tends to adapt the decision that reflect the first shaft in
opinion expressed by any group tends t adapt the decision that reflects the first shift in opinion
expressed by any group member
Decision that reflect the first shift in pinion expressed by any group member

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 In addition t the above schemes group decision can be made using the flowing guide lines during the
resistance t change:
- When things are going well, decision makers should still be vigilant in examining
alternatives:
- Et can help to haves separate groups monitor the environment, develop newtechnologies,
and generate new ideas
- To reduce the tendency t neglect gathering negative long term information, managersshould
solicit worst cases scenarios as well as forecasts that include long term costs.
- Build check pints and limits into any plan
- When limits are reached, it may be necessary to have an outside, independent orseparate review
of the current plan
- Judge people on the way they make decisions and only on outcomes, especially when the
outcomes may not be under their control
- Shifting emphasis t the quality f the decision process should reduce the need f thedecision
maker to appear consistent or successful when things are not going well .
- Organizations can establish gals incentives, and support systems that encourageexperimenting
and taking risks

The Delphi Technique

This is the recently popularized group decision making technique for long range forecasting Today,
numerous organizations in business, educating, government health, and the military are using it. The
technique can work as follows:
1. A group (usually of experts, but in some cases no experts may deliberately be used ) is formed,
but importantly, the members are not in face to face interaction with one another. Thus, the
expenses f bringing a group together are eliminated.
2. Each member is asked to make anonymously predictions input into the problem decision the group
is charged with
3. Each member than receive composite feedback from what the others has inputted in some
variations the reasons listed (anonymously )but mostly just a composite figure or list is used.
4. On the basis of the feedback, another round f anonymous input is made. These interactions
take place for a predetermined number of times or until the composite feedback remains the
same, which means everyone is sticking with his r her position.

The nominal Group Techniques

A nominees group is simply a paper „‟group‟‟ in name only because n verbal exchange is allowed
between members. It is closely related to Delphi techniques

When the pure nominal group approach is expanded into a specific technique for decisionmaking
in organizations, it is labeled the nominal group technique (NGT(and consists of the following steps.

1. Silent generation of idea in writing

2. Round-robin feedback from group members, who record each idea in a terse phase on a flip chart r
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 black board.
3. Discussion of each recorded idea for clarification and evaluation
4. Individual voting on priority idea with the group decision being mathematically derivedthrough
rank ordering or rating
Leadership Process and Styles
in text question
Dear student, using your own words how do you define the term „leadership? Is there anydifference
between le4adership and management?
Definitions of leader ship
Ducker defines generals leadership as

The lifting f a man’s vision t higher sights the raising of means performance too higher standard, r the
building of man’s personality beyond its normal limitations‟
Another definition of leadership:

Leadership is the ability t shape the attitudes and behavior or others adership is the process of
influencing others to facilitate the attainment oforganizationally relevant goals.
It is using influence in an organizational setting or situation, producing effects that aremeaningful and
haves a direct impact on accomplishing challenging goals
In the above definition, it is not

In order to exert leadership behavior Differences in definitions, leadership that are part of allleadership
situations the people, the task and the Environment
[Link] of leaderships
Theories of leadership can be divided into traditional theorist and modern theories ofleadership
A) Traditional theories of leadership
 Trait theory
 Group and exchange theory
 Contingency theory and
 Path-goal theories

i) This is an attempt to identify specific characteristic s(physical, mental, personality

associated with leadership success. The theory relies. The theory relies on research that relates
various traits to certain success certain the theory concentrates on the leaders themselves and
through the years showed little promise for either the understanding of the leader sip process
or the relationship with effective leadership performance.
Trait theory fall short because it fail to take account the interaction among the people being
led, the task being performed and the Environment.
Behavioral Approaches

In the 19405, researchers began to explore the notion that shows a person are act determines that person’s
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leadership effectiveness Instead of searching for traits, these researchers examined leader behavior and
their impact on the performance and satisfaction of followers.
They divided leaders as Job- centered and employees centered. This approach also falls short dueto that
fact that fact that it ignores environment and task.
ii) Contingency leadership
These models made a significant contribution to leadership theory and potentially to the
practice of human resource management according to this theory leadership tend to be more
situational based.
According fielder, a factor in the contingency model refers to the degree of confidence trust
and respect that the leader obtains from the followers.
iii) The path- goal approach h

This theory also made an important contribution to leadership understanding it incorporates

expectancy motivations concepts. In essence, this theory attempts to explain the impact that
leader behavior has on subordinate motivation, satisfactionand performances. The theory
incorporates four major types, or styles of leadership which are:
 Directive leadership-no participatory be subordinate
 Supportive leadership- genuine concerns for subordinate
 Participative leadership – asks and uses suggestion form subordinates but stillmake
decisions
 Achievement-oriented leadership- sets challenging goals for subordinates andshows
confidence that they will attain these goals and performance well
iv) Group and exchange theory

This theory emphasize the importance of followers, and although the leader member exchange (or LMX)
model still generals research. According to this theory the leader provides more benefits (rewards than
burdens) costs for followers. There must be a positive exchange between the leaders and followers in
order group goals to be accomplished.
This theory is criticized because it seems more descriptive of the typical process of role making by leaders,
rather than prescience being the pattern of downward. Exchange relations optimal for leadership
effectiveness.
B) Modern theories of leadership
 Activity
Attempt the following
1. Briefly discuss the following traditional theories of leadership
a) Trait theory
b) Group and exchange theory
c) Contingency theory
d) Path- goal- theory
2. Define the term leadership using your own words.

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 The Modern theories of leadership include:
I) Charismatic leadership theory
II) Transformational leadership theory
III) Social cognitive approach and
IV) Substitute of leadership
V) Authentic leadership
Charismatic leaders
In text question
Dear student how do you explain charismatic leaders? Can you give examples?

Charismatic leaders are characterized by self-confidence and confidence e 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, exhibit extreme loyalty to and
confident e with the leader and the mission of the leader, emulate the leader’s value and behavior, and
derive self- esteem from their relationship with the leader. The profile of charismatic leaders include:
superior debating and persuasive skills as well as technical expertise and the fostering of attitudinal,
behavioral, and emotional changes in their followers.
There is Ethical and Unethical characteristics of charismatic leader compare the following

Ethical charismatic leader Unethical charismatic leader

 Use power to serve others use power charismatic leader

 Aligns Vision with followers needs and aspirations promotes own personal vision
 Considers and learns from criticism
 Stimulates followers to think independently and to censures critical or opposing views
 questions the leader’s view Demands own decisions beaccepted
 Coaches, develops, and supports followers, shares without question recognition with others
insensitive to followers’ needs
Open two- way communication
Relies on internal moral standards to satisfy organizational One way communication
Moral standards to satisfy organizational and society relies on interest standards to satisfy
self-interests.
II) Transformational leadership
This leadership is based more on leaders shifting the values, beliefs, beliefs, and needs of their followers.
The transformational leaders are felt to be especially suited to today’s organizations asthey experience
dramatic change.
III) A social cognitive an approach
The social cognitive approach emphasizes the importance of behavior and the continuous, interacting
nature of all the variables in leadership.
IV) The substitutes approach
Recognize that certain subordinate for or neutralize the impact that leader behavior has in subordinate
performance and satisfaction.

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 V) Authentic Leadership
A process that draws from both positive psychological capacities and a highly developed organizational
context, which results in both greater self-awareness and self-regulated positive behaviors on the part of
leaders and associates, fostering positive self-development. The authentic leader is confident hopeful,
optimistic resilient, transparent, moral/ethical, future oriented and gives priority to developing associates
to be leaders.
Leadership styles
Leadership styles can be classified based on how leaders use their authority. This includes:
In text question
Dear student, what types of leadership styles do you know? Which one is better?

Autocratic style – the autocratic leaders is seen as one who commands and expects compliance, which is
Dogmatic and positive, and leads by the ability to give or with hold rewards or punishment .
Democratic /Participative –the leader who adopts this style consults subordinates on proposed actions and
decisions and enc our ages participation from them.
The third style of leadership is one in which the leader gives subordinates a substantial degree of
Independence in their works, leaving them to set their own goals and discover their own way achieving
Them. The leader adopting this style perceives his/ her role as one of facilitation the operations of followers
by providing them with information, and action as a contact with the group’s external environment.
Leadership is a important aspect of a manager’s Job. A manager who is a good leader will achieve better
results than one who is a poor leader, by organizing and guiding the people working for him, and by
enabling them to do their jobs well. The way in which this can be done will vary according to the
particular needs of the situation. Sometimes a manager may need to use a more autocratic approach than
normal and at other times a participative approach.

 Activity 3.6
Attempt the following
1. Describe the following modern theories of leadership
a) Charismatic leadership theory
b) Transformational leadership theory
c) Social cognitive approach
d) Authentic leadership
2. Compare and contrast traditional theories of leadership with modern theories
ofLeadership
3. Explain the leadership styles and the situation under which they should exercise.

[Link] organizational structure

In text question
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Dear student, what we mean by organizational structure? What are the elements of it?

foundation of organization structure

Organizational structure-refers to the division of labor and the patterns of coordination, communication, work
flow, and formal power that direct organizational activities. An organizational structure reflects the
organization’s culture and power relationships. It is also usedto make organizational design.
Organization design- is the process of creating and modifying organizational structure
Division of labor and coordination- all organizational structure includes two fundamental requirements
the division of labor into distinct tasks and the coordination of that labor so that employees are able to
accomplish common goals.
Coordinating work activities-as soon as people divide work among themselves coordinating mechanisms
are needed to ensure that everyone works in correct. There are three coordination methods used by every
organizations of different size
i) Informal communication sharing information on mutual tasks forming common mental models
to synchronize work activities.
ii) Formal hierarchy assigning legitimate power to individuals who then use this powerto direct
work processes and allocate resources.

3.6.1. Elements of organizational structure

There are four elements of organizational structure
a, Span of control c) formalization
b, Centralization d) departmentalization
a) Span of control: this refers to the number of people directly reporting to the next level inthe
hierarchy.
The underlying principle here is that the span of control depends on the presence of other
coordinating mechanisms. Self-directed work teams supplement direct supervision with informal
communication and specialized knowledge. In a situation s where employees perform similar tasks
a wider span of control is possible and the organization. Organizations may have span of control
with tall or flat structure.
C) Centralization and decentralization centralization means that formal decision making authority is
held by a small group it people, typically those at the top of the organizational hierarchy. Mot
organizations begin with centralized structures, as the founder makes most of the decisions and tries to
direct the business towards his or her vision. But as organizations. Grow, they diversity and their
environments become more complex, senior executives aren‟t able to process all the decisions that
significantly influence the business. Consequently, larger organizations tend to decentralize, that is, they
disperse decision authority and power throughout the organization.
d) Formalization it is the degree to which organizations standardize behavior through rules,
procedures, formal training and related mechanism e.g McDonald’s corporation has a formalized structure
because it prescribes every activity in explicitly detail
Mechanistic Versus Organic Structure
Mechanistic structure is an organizational structure with a narrow span of control and high degree of

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 formalization and decentralization. Mechanistic structures have many rules and procedures, limited
decision making at lower levels, tall hierarchies of people in specializedroles, and vertical rather than
horizontal communication flows. Tasks are rigidly defined and are altered only when sanctioned by higher
authorities, companies with an organic structure have the opposite characteristics.
Organic structure is an organizational structure with a wide span of control, little , formalization, and
decentralized decision making.
e) Forms of departmentalization - the organizational chart represents that fourth element in
the structuring of organizations, called departmentalization. Departmentalization specifies
how employees and their activities are grouped together it is a fundamental strategy for
coordinating organizational activities because it influences organizational behavior in the
following ways
 Departmentalization establishes the „‟Chain of command,‟‟ that is the systems of common
supervision among positions and units within the organization
 Departmentalization usually creates common measures of performance members of the same work
team, for example, shared common goals and budgets, giving the company standards which to
compares subunit performance
 Departmentalization encourages coordination through informal communication among people and
sub units, with common supervision and resources, members within each configuration typically
work near each other so they can use frequent and informal interaction to get the work don
Types of Structures, Advantages and Disadvantages
In text question
Dear student, what types of organizational structures do you know? Can you mention theadvantages and
disadvantages of each?

Type of structure Advantages disadvantages

Simple structure  flexible  depends on owner
 Few employees report to  difficulty to operate under
owner complex conditions
Functional structure  Foster  Emphasize subunit goals over
 Organize employees around professional identity and super ordinateorganizational gals
specific knowledge clarity career  Have higher dysfunctional
or paths conflict and poorer
other resource  Permit greater specialization coordination with other workunits
 Create commonpools of talents  Need substantial formal controls
when functional structures are
used
Divisional structure  Accommodated growth relatively easily  Duplicate and insufficiently use
 Groups employs around  Helpful in their resources
geographic areas, clients Growth and complex situations helpful  Creates ”silos of knowledge”
or in  Reduce cooperation across
outputs groups

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Matrix structure  Optimize the use to resources and  Need morecoordination
 The overlays of two expertise  Dilute
organizational forms  Improve communications efficiency, accountability as it has two bosses
in order to leverage the project flexibility  Tend to generate conflict,
benefits of both and innovation Organizational politics and stress

Team Based(Lateral)structure  More responsive and flexible  High training cost

 It is flat hierarchy and relatively  Empower employees, reduce  Takes more to coordinated
little formalization, consisting costs and reliance onmanagerial  Stress due to role ambiguity
of self- directed work teams hierarchy byemployees
responsible for various work  Improve communication and  Stress on team leader due to
processes cooperation To loss of control. increased
Conflict, an clear progression

Network structures  Help to Go with fast  Expose the cope firmto market
 An alliance of several Developing technology and Forces
organizations for the purpose of environment  Less control
creation a product or serving a  Offer efficiencies
client

Contingencies of organizational Design

The best organizational structure depends on the firm’s size. technology and environment, Generally,
larger organizations are decentralized and more formalized, with greater fob specialization and elaborate
coordinating mechanism the work unit’s technology including variety of work and analyzability of
problems influences the decisions to adopt an organic or mechanistic structure. The best structure also
depends on whether the external environment is dynamic, complex, divers, and hostile.
Although size, technology, and environment influence the optional organizational structure, these
contingencies do not necessarily determine structure, Rather, organizational leaders formulate and
implement strategies to define an manipulate their environment strategies to defineand manipulate their
environments. These strategies, rather than the other contingencies, directly shape the organization’s
structure.\

[Link] Culture
In text question

Dear student what is organizational culture? What is its importance?

Organizational culture the basic pattern of shared assumptions values, and beliefs that govern behavior
within a particular organization Assumptions are the shared mental models or theories- in- use that people
rely on the guide their perceptions and behaviors. Beliefs represent the individual’s perceptions of reality.

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Values are more stable, long- lasting beliefs about what is important. they help us define what is right or
wrong, or good or bad in the world, culture content refers to the relative ordering of beliefs, values and
assumptions.
Organizations have subcultures as well as the dominate culture. Some subcultures enhance the dominate
culture, whereas countercultures have values that oppose the organization’s core values. Subcultures
maintain the organization’s standards of performance and ethical behavior, they are also the source of
emerging values that replace aging core values.
Artifacts are the observable symbols and signs of an organization’s culture. Four Broad categories of
artifacts include organizational stories and legends, rituals and ceremonies, Languages, physical
structures and symbols Understanding an organization’s culture requires painstaking assessment of many
artifacts because they are subtle and often ambiguous.

Organizational culture has three main functional. It is a deeply embedded form of social controlit is also
the “social glue” that bonds people together and makes them fell part of the organizational experience,
finally, corporate culture helps employs make sense of the workplace
Companies with strong cultures generally perform better than those with weak cultures, but only when
the cultural content is appropriate for the organization’s environment. Also the culture should not be so
strong theta it drives out dissenting values that may form emerging values for the future, organizations
should have adaptive cultures so that employees focus on the need for change and support initiatives and
leadership that keeps pace with these changes.
Organizational culture relates to business ethics in two ways. First, corporation cultures can support
ethical values of society thereby reinforcing ethical conduct second, some cultures are so strong that they
rob a person’s individualism and discourage constructive conflict.
Mergers should include a bicultural audit to diagnose the compatibility of the organizational cultures. The
four main strategies for merging deferent corporate cultures are integration, enculturation, assimilation,
and separation.

Organizational culture is very difficult to change. However, this may be possible by creating an urgency
for change and replacing artifacts that support the old culture with artifacts aligned more with the desired
future culture. Organizational culture may be strengthened through the actions of founders and leaders,
introducing culturally consistent rewards, maintaining a stable workforce, managing the cultural network,
and selecting and socializing employees.
Organizational socialization is the process by which individuals learn the values, expected behaviors, and
social knowledge necessary to assume their roles in the organization. It is a process of both learning about
the work context and adjusting to new work roles, team norms and behaviors.
Employees typically pass through three socialization stages. Per employment socialization occurs before
the first day and includes conflicts between the organization’s and applicant’s needto collect information
and attract the other party Encounter begins on the first day and typically involves adjusting to reality
shock Roles management involves resolving work network conflicts and settling into the work place. To
manage the socialization process, organizations should introduce realistic fob previews (RJPs)and
recognize the value of socialization agents in the process. RJPs five job applicants a realistic balance of
positive and negative information about the job and work context. Socialization agents provide

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 information and social support during the socialization process.

Activity
Attempt the following
1. What is organizational structure?
2. Discuss the element of organizational structure.
3. Explain different types of organizational structure with their advantages and disadvantages
4. Define organizational culture?
5. Describe- the importance of organizational culture to organization and employees of the organization
6.
Unit Summary
Three fourth of manager work is communization in the post communication get little attention by
management. However; it becomes very important topic these days. There is no universality accepted
definition of communication by communication experts. But some literature gave their definitions. The
process of communication involves the sender, the channel, the receiver and feedback. There are different
forms of communication; the major one includes verbal and nonverbal for communication successfully
take place managers should overcome communication barriers using many methods explained here.

Decision making is one key activity of every manager conceptually organizations make decisions through
three phases; intelligence, Design and choice activities. The classical decision theory’s operated under the
assumption of rationality and certainty. However; there are much argument from behavioral decision
making theorists sue to cognitive limitations of individuals, the complexity of organizations and the ever
change world. As a result a number of models of decisions making have emerged over the years. Some
of these modules are economic rationality, Simon’s bounded rationality, judgmental of this models have
their own strength and weakness. However they are helpful for decision making. there are four decision
making styles. Analytical Directive, conceptual and behavioral they are based on two dimensions;
tolerance for ambiguity and Value orientation. There is creative decision making in group which includes.
Group decisions, the Delphi technique and the nominal group techniques.
Leadership the ability to shape the attitude and behavior of others; it is the process of influencing others
to facilitate the attainment of organizationally relevant goals. There are traditional and modern theories
of leadership which tried to explain leadership concepts. But leadership is still the evolving concept. There
are three leadership styles. These leadership styles can be fit based on given situation. Therefore
leadership style to be exercised.

Organizational structure refers to the division of labor and the patterns of coordination, communication,
work flow power that direct organizational activities. It is very important as it reflects the organization’s
culture and power relationships It is used as tools for change and to make organizational design. There
are four elements of organizational structure span of control, centralization, formalization and
departmentalization. Organizations may have a narrow span of control (Mechanistic structure) or wide
span of control(organic structure) there are differenttypes of organizational structure simple, divisional
Matrix, functional, lateral, and network structures. Each of this structure has its own advantages and
disadvantages. The organizational design depends on the size of the organization, technology and
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 environmental influences.
Organizational culture is the basic patterns of assumptions values, and beliefs that governbehavior within
a particular organization. Have subcultures as well as the dominant culture. Understanding organizational
requires the assessment of many artifacts like organizational stories and legends, rituals‟ ceremonies,
language, physical structures and symbols. Organizational culture has three main functions. It help as
a social control; it is help full as
„Social glue‟ and it helps employees make sense of the work place.

[Link] Questions

Multiple choice

Choose the best appropriate answer form given alternatives

1, One of the following is advantage of telecommuting in organization.

A, Decreases face to face communication B, Reduce transportation cost C, Increase employee productivity
D, Increase employee job satisfaction

2, Verbal communication communication uses ___________ to transmit messages.

A, singn languge B, notices C, written or spoken words D, all

3, Which one of the followigs is not part of Non-verbal Communication?

A, Body Language B, Facial expressions C, A&B D, written or spoken words

4, All are causes of communication barriers except _______.

A, Poor timing B, Emotions C, Differences is perception D, Differences in Culture and Language E, none

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5, Flow of information from individuals at higher levels of hierarchy to those in the lower levels of the
organization is called _____.

A, Horizontal communication B, Upward communication C, Diagonal communication D, none

6, The process of communication involves the sender, the channel, the receiver and feedback.

A, true B, false

Chapter Four
Organizational Development Andmanaging Change
4.1. Introduction

Dear student, how do you understand the term organizational development? what are their
importance’s?

Dear student, well come to the last unit of this module. This last unit will deal with three main concept.
Firstly; it deals with organizational development /OD/organizational development is the applied arm of
the field of organizational behavior which mainly concerned with planned change of complex
organizations. You will see the characteristics of OD, its deferent approachestraditionally and the modern
one.
Secondly; the unit will deals with managing change . As you know both individuals and organizations to
survive to-grow and to develop they need to make major adjustments to overcome challenges. To this
end, change is unavoidable part of individual and organizational life. There fore managing change is an
important component of this unit. In this part of the unit you will be introduced with importance of change,
reasons for change choosing change strategy and managing change programs.
Lastly; you will be introduced with stress management which is important concept in organizational

88
 behavior stress is and adaptive response to a situation that is perceived as challenging or threatening to
the person’s wellbeing. To make individuals productive managing stress is and important aspect. In this
part of the unit you introduced with the cause of stress and methods to deal with tem Good reading.
Objectives:
At the end of this unit, you should be able to
 Explain the main concerns of organizational development
 Discuses characteristics of organizational development
 Describe different approaches to organizational development
 Explain why change is now so important in organizations
 Recognize a range of pressures for change originating inside and outside organizations
 Compare and contrast the advantages and disadvantage the three change approaches
 Describe a change situation in which you have been involved
 Describe courses of stress in work situations
 Discuss how to mange work related stress.

4.2. Organizational development

Definition of organizational development
The term organization development or simply OD has recognized as the applied arm of the Field of
organizational behavior and is mainly concerned with the planned change of Complex organizations . The
development of an organization’s human resources and its Improved performance are the major aims of
OD efforts
4.2.1. Characteristics of organizational development
 Planned change
 Comprehensive change
 Emphasis upon work group
 Long-range change
 Participation of change agent
 Emphasis upon intervention and action r3esearch
Approaches to organizational development (OD)
There are to approaches to organizational development (OD) these are the traditional approaches to
organizational development and modern approaches to organizational development.
A) Traditional approaches to OD
There are two major historical stems for ODs these are:
a) Laboratory training and
b) Survey feedback
i) Laboratory training: laboratory training applications to OD have two major techniques one is
the historically significant T-group or sensitivity training approach, and the other is the widely
used grid training
The sensitivity training or (training) group approach evolved from the group dynamic concept of Kurt
lewin sensitivity training has become a technique wisely used by a variety of professionals‟
psychotherapists, counselors, educators, nurses, social workers, religious workers, and organizational
trainers and consultants

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Goal of sensitivity training
 Some stress the professional development aspects
 Others stress the ways to become a more effective group members, and still others stressboth
 Over all, traditional sensitivity training is process instead of task oriented
Grid training is an outgrowth of the managerial grid approach to leadership which is Instrument
approach to laboratory training.
ii) Survey feedback: As the terminology indicates, this approach OD surveys the unit of analysis (e.g.
work group, department, or whole organization) by means of questionnaires and feedback the data
to those who generated them. The data are used in the action research sense of diagnosing
problems and developing specific actions plan to solve theproblems.
B) Other modern OD techniques
As indicated above the two major historical stems in OD are laboratory training
(sensitivity and grid) and survey feedback. Both these are still important OD intervention strategies.
However, today there are many other important techniques used in OD
As shown, sensitivity training can be used as a major OD intervention at both intra individualand
interpersonal levels: survey feedback is applied at both the interpersonal inter group and total
organizational level and grid training in its various phases or as a whole is applied to all three levels
Although there are other OD interventions that are sometimes used at the intra individual
(e.g. life and career planning, which helps individuals identity strength and weakness in order to focus on
their life and career objectives and how they can achieve them) and total organization(e.g. techno
structural interventions that strategically improve the technical or structural inputs) levels, most of the
modern, widely used OD efforts are aimed at the interpersonal. Inter group level are process consultation
there party peacemaking, and
Team building
i) Process consultation

Processes variables were introduced in the discussion of sensitivity training, and as the terminology
suggests the process consultation, or p-c, approach to OD is concerned with the process that take place
within a group or between groups and consultant
Specific areas in which p-c is aimed include communication functional roles of group numbers, group
problems solving and decision making, group norms and growth, leadership and authority, and inter group
processes.
1. Initiate contact:- this is where the is where the client contacts the consultant with problem that can
not be solved by normal organization procedure of resources.
2. Define the relationship :- psychological contact between the consultant and client
3. Selecta setting and method this step involves and understanding of where and how the consultant
will do the job that needs to be done
4. Gather data and make a diagnosis. Through a survey using questionnaires, observation, and
interviews, the consultant makes a preliminary diagnosis. This data gathering occurs simultaneously
with the entire consultative
5. Intervene, Agenda – setting, Feedback, coaching, and/ or structural interventions can be made in
the p – c approach

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 6. Reduce involvement and terminate, the consultant disengages from the client organization by mutual
agreement but leaves the door open for future involvement.
ii) Third party peacemaking
A special case of process consultation is third – party peacemaking which is specifically aimed
at resolving interpersonal/inters group conflict. Like p – c, it examines the processes involved,
makes a diagnosis of the reasons for the conflict, and through the third – party consultant
facilitates a constructive confrontation and a resolution of the conflict.
The consultant takes the following types of steps.

1. Gather relevant data by interviewing the principle in the conflict

2. Select the place and structure the context of the confrontation meeting
3. Make a direct intervention in he process by doing actions such as the following:
a) Refereeing the interaction process
b) Initiating agenda
c) Encouraging and participating in feedback
d) Giving a diagnosis and prescription
e) Assisting the principals to plan prepare for further dialogue after the conformation.
The advantage of third – party peacemaking is that it is a systematic approach to dysfunctional conflict
resolution. The disadvantage is that the conflict can become worse if not handled properly. To avoid
compounding the problem there must be a highly skilled consultant
iii) Team Building
Family groups (members from the same Special groups (start – up teams task
organizational unit) forces, committees
interdepartmentalgroups)

1 Task accomplishment (e.g. problemsolving 1 Task accomplishment (e.g. special

decision making, role clarification goal problems, roles and goalclarification,
setting etc) resource utilization,
etc..)

2 Building and maintaining effective 2 Relationships (e.g. interpersonal or

interpersonal relationship (e.g. boss inter unit conflict, andunderutilization
subordinate relationships and peer of each other as
relationships) resources)

3 Understanding and managing group 3 Process (e.g. communications,

Processes and culture decision making, and
taskallocations)

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 4 Role analysis technique for 4 Role analysis technique for role for
roleclarification and definition role clarification and definition

5 Role negotiation techniques 5 Role negotiation

As an OD process, team building generally follows the classic change product originally formulated by
Kart lewin:
1. Unfreezing: the first task is make the team aware of the need for change . A climate ofopenness
and trust is developed so theta the group is ready for change .
2. Moving: Basically using a survey feedback techniques, the team makes a diagnosis ofwhere
they are and develops action plans to set to where they want to go
3. Refreezing: Once the plans have been carried out and an evaluation has been made, theteam
states to states to stabilize into more effective performance

 Activity 4.1
Note down below some of the opportunities that change can offer to those involved in it you
may have noted some of the following:
 The chance to acquire and/ or practice new skills
 Increased job satisfaction
 Improved working conditions and practices
 Working with new people or new technology
 Better use of your time or skills
 Increased responsibility, autonomy or status
 Improved reward systems
 Increased efficiency.

4.3. Managing Change

In text question
Dear student, why do you think we deal with change?
You may have noticed that the management of change is a thing that recurs time and time again in newspapers and
management journals. As one writer puts it,
Organizations are never static: something about them is always changing. For example, there is turnover
in the membership, new administrative procedures are introduced, or a new customer arrives on the
scenes. None of these events is completely self- contained: each has implications for other aspects of
organizational life. Some of them obviously result from decisions made within the organization, some of
them originate with decisions outside, and others just seem to happen. The common factor is that when
something changes, whether or not it has been planned or decided by variously welcomed, discarded or
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ignored by people within and outside the organization their reactions will, it turn affect other things.
Change is important to any manager: indeed, it is already occupying centre stage, because taking this
course is likely to change your way of managing. When you stand back and look at your own job, as we
encourage you to do. You should be able to see how much of it is taken up with managing changing
situations and with planning future changes. Recognizing the importance of change is the first step in
managing it effectively.

why is change important ?

Individuals, if they are to survive, need to adjust to circumstances and events around them . to go beyond
mere survival- to grow and to develop- they need to make major adjustments and to overcome challenges.
For organizations it is much the same: unless they adapt to changed circumstances and take on new
directions, they are likely to fail and fade away.
Changes that occur in the organization come in may forms. IT (information technology) can be acultural
change where the philosophy values and ways of operating are changed by top management. For instance,
changing form a production focus of producing whatever the company wants and selling it to the public,
to a marketing focus whereby what is produced and sold is contingent on consumer demand, requires a
new organizational orientation, A change may also occur in the organization’s structure which can result
in redundancies, new job assignments and the like, and again require new orientations by the
organizational members. We may also see changes in procedures or polices where employees must be
informed and taught to deal with such occurrences. For instance, an growing concern of organizations
during the mid- to late eighties, still continuing today, has been the development of smoke- free working
environments they must also be made aware of avenues available to them to comply with the new policy.
There can be no question that change is on the increase, and that the pace of change is quickening. Even
the future is not what it once was:
All institutions live and perform in two time periods: that of today and that of tomorrow is being made
today, irrevocably in most cases. Managers therefore have to manage both today- the fundamentals- and
tomorrow in turbulent times, managers cannot assume that tomorrow will be and extension of today on
the contrary, they must manage for change both as an opportunity and a threat
Tom peters, chronicler of excellence in US companies, whose work in this area has identified several
factors that make prediction uncertain:
 Volatility in prices of major world currencies, energy, agricultural products andmetals
 The emergence of new competitors
 Political influences on international trade
 The impact of new technology on manufacturing, design, distribution and product definition
In the 1990s the worldwide recession has resulted in and acceleration of the pace of change .the volatility‟
the peters identifies has led to massive redundancies throughout the western industrialized nations in
recent years.
Change is important, occurs frequently and is on the increase. Yet often when we are involved in change
in our working lives- either trying to implement it or as hapless victims of other people’s efforts- we can
fined it very difficult. It can be unsettling, threatening and disturbingly unpredictable. People resist it, and
for managers already busy enough running things the way they are, changing things can double their
workload.
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But it doesn’t always have to be this distressing. At its best, introducing change can provide and
opportunity for real creativity, especially if there is scope to be involved at the design stage rather than
just implementing someone else’s ideas It is possible to learn a lot from introducing changes.
There is also the need to consider the alternative-what might happen if change doesn‟t take place? There
is always the danger of complacency or failure to see the need for change in time. We take the view here
that tackling change is and important part of a manager’s job-one of the most important parts-and that it
can be challenging and exciting, provided you recognize that there are several ways of approaching it. By
this stage of the course, you wouldn’t expect advice on “the one best way to introduce change” would
you?

 Activity 4.2
Think for a minute about changes that have happened in your life outside work in
the last two years. Select two of these changes and write them in the space below.

Now think about changes that have happened at work: again select two and write them
in at 3 and 4 below
Now try and answer the following questions about each of these four changes: where possible, circle “Y”
for yes and “N” for no .
Change 1 2 3 4

Was it imposed on you? Y/N Y/N Y/N Y/N

Did you initiate it? Y/N Y/N Y/N Y/N

Did you resist it? Y/N Y/N Y/N Y/N

Was it easy to cope with? Y/N Y/N Y/N Y/N

Were its effects useful? Y/N Y/N Y/N Y/N

Was it an important Y/N Y/N Y/N N/N

Change in your life?

You will probably have found that the changes which you initiated were the ones you found the easiest to
cope with and the most useful. They may not, however necessarily have been the most important. The
death of someone we love is not initiated by us but usually marks a tremendously important change in our
lives.
In management, the capable manager is the person who is able to recognize when change is desirable or
inevitable and who is them able to make everyone concerned feel that they are in some way a partner in
the initiative, a partner who is more likely to benefit from the change then to resist it.
This book sets to help you do this by providing some simple tools for analysis some guidelines for your
action and some principle to be aware of. It will sound easier than it really is. Whatever our intentions,
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we get carried away be events, something seems so obvious to us that we assume it must be obvious to
everyone else, so why bother to discuss it, why not just do it? The answer is short and crisp – if other
people do not own the problem then they probably won‟t accept the solution, any solution, but will see it
as imposed change and may become suspicious and defensive. Helping people to own the change will
depend on a number of interrelated factors, such as the speed and level of the proposed change, who it/
affects and to what extent, how it is perceived and bow it is communicated. We will be returning to these
other aspects of managing change throughout this book.
4.3.1. Pressures for change
a) External Pressures for change
External pressures for change can come from a variety of sources. A possible classification isgiven in
Table 4.3.2
Source of Change Examples
Social Changes in taste and social values, such as the increase in health
consciousness and concern about environmental pollution.
Increase availability of new production technologies and information
Technological systems
Economics Political Overall fall in manufacturing: changes in exchange rates; changes in
funding
Market demand Market Change in leadership of local authority or national or international
Supply Chance government; changes in legal requirements
Decline in demand for Particular products or services
Mergers in retail companies; entry of new competitor in to the market
Earthquake, fire accident, storm

Change
It isn‟t likely that you can identify external pressures under every heading. What is
important is that you recognize the wide range of factors at work and begin to see their
interconnection. Many economic changes, such as the revaluation of national currency,
for example, stem from political sources such as developments in the European Union.
If you found if difficult to relate your chosen change situation to external pressures, you
may want to reconsider your views when you have read on
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Ø Activities 4.4
Think back to the change you identified in Activity 1.3. can you identify any external
pressures for the change under the source given above?
Social
Technological
Economic
Political
Market Demand
Market supply

b) Internal pressures for change

As we have pointed out, pressures for change which apparently come from within the organization are
often related to external pressures. These internal pressures might includedesires to:
 Increase productivity
 Improve quality
 Increase sales
 Improve service
 Improve staff motivation and retention and so on. Yet, in many cases; the real pressure is to improve
market share in relation to external competitors and/ or to increase cost- effectiveness, again in relation
to competitive pricing and service outside the organization. True „internal‟ pressures for change are
likely to come not from to mp management from the workforce, and to be related to working
conditions and levels of pay.
Approaches to Change
There are three common approaches to generating internal pressures for change with organizations. These
are:
The top – down approach
The bottom – up approach
The expert approach.
a) The top –down approach: occurs when someone in a position of authority decides to introduce a
change. This usually involves a clear statement by the decision maker(s) as to what is intended,
following by action and dissemination of „necessary‟ information to the relevant parties. Often
there is little opportunity for staff who are affected to influence the decision maker’s proposals.
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 Much energy is put into encouraging people to comply willingly.
The top-down approach used to be thought to epitomize the role of management: taking decisions
for others to implement. More recently, as models of participative management have come in to
vogue, it has been derided for being undemocratic, uncaring and distant and because it is not
effective in ensuring that the change is „owned‟ by others affectedby it. Nevertheless, leadership,
convection and willingness to take decisions may make the difference between poor and excellent
performance. A top-down approach is one way to introduce change, to give direction, credibility
and authority. If changes have to be brought about quickly, the top-down model may be the only
realistic approach since it can usually be implemented very quickly, you need to consider whether
this is because top management failed to see the need for change earlier.
b) The bottom-up approach
Bottom-up approaches to change have become well known through quality improvement teams,
local groups, empowerment and performance initiatives, and so on. Apart form suggestion
schemes and other idea generating mechanisms, this approach almost invariably involves team,
and for this reason the bottom- up approach and a team approach have tended, mistakenly, to
become synonymous.
Bottom-up approaches to change are usually needed when:
 The means for addressing the problem(s) are not clear and the people directly involved with the
problems(S) need to be involved in discovering potential solutions.
 There is local variation in how a problem is experiences and therefore in the potential avenues
for solution, so that a top-down approach is inappropriate.
The definition of „bottom-up‟ does, of course, depend on your viewpoint. The management of a health
authority, for example, might consider their inclusion of unit managers in the decision- making process
as a bottom-up approach, but it would hardly appear so to the staff of the unit managers.
One disadvantage of the „bottom-up‟ approach is that it can be time consuming to plan and implement,
since there is a need for widespread consultation and agreement if it is to beeffective. Such an approach
is also difficult if the organization lacks a structure which is designed to capture and evaluate ideas for
change generated by the workforce. While bottom-up pressure from staff can be very effective in creating
change if senior management are prepared to take notice, it can degenerate into dissatisfaction, frustration
and grievance if ignored.

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Ø Acttivity 4.5
Wi𝑡ℎ 𝑦𝑜𝑢𝑟 𝑜𝑤𝑛 𝑐𝑎𝑠𝑒 𝑠𝑡𝑢𝑑𝑦 𝑜ƒ 𝑐ℎ𝑎𝑛𝑔𝑒 i𝑛 𝑚i𝑛𝑑, i𝑑𝑒𝑛𝑡iƒ𝑦 𝑎𝑛𝑦 internal pressers for
change which were responsible for bringing is about.
𝑡𝑜𝑝 − 𝑑𝑜𝑤𝑛 𝑝𝑟𝑒𝑠𝑠𝑢𝑟𝑒𝑠
Bottom – up pressures
Note down your own feeling about these pressures.
Unless sensitively handled, with widespread and clear communication to everyone involved,
top down pressure for change can often create resentment and resistance and the felling that
it has been imposed bottom-up pressure for change, however, if it is encouraged and seen as
bottom-up pressure for change however, if it is encouraged and seen as beneficial and if the
timescale is appropriate. Can be very effective in creating change.

c) The expert approach

In the „expert‟ approach to change, knowledgeable individuals are asked to analyze and make
judgments about problems or performance and to recommend, and sometimes implement, their
preferred solution. Managers often use expert approaches to change- be it through a management
consultant, a research report, or a new member of staff appointed because of his or he expertise
in a particular area- when they themselves arenot sure how to tackle an issue.
The expert approach can appear to offer a quick and cost-effective way of bringing about change,
particularly when new technology is being introduced while the manager „gets onwith managing‟.
The problem is that the manager often ends up having little influence over what is changed, and
is left with the task changed, and is left with the task of trying to integrate the expert’s solution
with the rest of what is going on in the organization.
The less managers are able to make informed decisions, the more dependent they are on the advice
of experts. Expert input to decision making is obviously useful and there may be a need for more
than one expert: however, experts should not be permitted to make decisions. The key task of a
manager is to take a broad view, along as may dimensions as possible, in making decisions to
achieve the best possible outcome so, when experts are included in your decision-making team,
you need to make sure that the decisions made support the overall objectives of your organization.
Combining all three approaches
In practice, successful planning and implementation of any change is likely to require a mixture
of all three approaches. The exact recipe for the mix will depend on local contingencies, such as
availability of time and resources, and the history, polices and culture of the organization. Table
4.2 summarizes the advantages and disadvantages of the three approaches.
Table 4.2 Advantages and disengages of the three approaches to change.

Top-down Bottom-up Expert

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 Ensures relevance to Taps wide range of Draws on
own organizational skills and best
idiosyncrasies(as engenders practice/state of the
perceived by management) ownership/commitment art
Planned and directed Self- sustaining Objective view: not
constrained in
outlook

Suited to short/medium term Suited to long/medium Suitedto

term short/mediumand
longer term

Equal best for radical change Equal best for Equal best for
incremental; change radical
or
incremental change
Disadvantages of each model

Success dependent on May be erratic/ un Lack of understanding/ interest in local

quality of top managers programmable situation
May fail to inspire or May be subjective May not result in a „unique‟ solution:
motivate people may inappropriately import a solution
from Elsewhere

Cannot cope with local Can be time consuming Can be expensive

diversity

Depends on Often problems with implementation

supporting structure and
culture
The most appropriate approach will depend on the particular circumstance surrounding the change. Some
key criteria for selecting elements from the three approaches are briefly discussed below.
 Who are the main stakeholders involved in the change? You may find that when taking to your line
managers you utilize a bottom-up- approach, but in selling the idea to your staff you adopt a top-
down approach. Where you have a choice, work through the alternatives until you decide which
model to adopt on the basis of the relative chances of success. You should know your own
organization and what your future requirements are. Which approach best supports those
requirements?
 Who will manage the change process? If you have no available experts and insufficient interest or
ability among your staff, you may have to do most of the work yourself. A key issue in managing
change would then be whether your staff have the appropriate skills. Ifnot, perhaps fostering these
skills might be the first item in any plan for change.
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 Do your measures for evaluating the success of the change meet the requirements or priorities that
have been set for the change? If one of the objectives is to get everyone involved, but you opt for an
expert approach to change, don’t be surprised if this objective is not met. If it is important to have
your planned change in place by a tight deadline, don’t go for the bottom-up model. If your changes
need to show a strict cost- benefit relationship, it may be better to go for a top-down or expert
approach, although a bottom-up approach to generate options could be useful.
 Who is responsible for recognizing the need for change and making it happen? This is probably the
most critical criterion for deciding which approach is adopted. If senior managers or the senior
management team are expected to be the sole source of new ideas and change in your organization,
then it is perhaps a little optimistic to try a bottom-up approach without linking this to some sort of
activity to change the organizational culture.

Ø Activity 4.6
Now ask yourself these questions in relation to the change you identified in Activity 4.3.
note down your answer below
1. Who were the main stakeholders involved in the change?
2. Who managed or led the change process?
3. Did the measures(if any) for evaluating the success of the change meet the
requirements or priorities (if any) that were set for the change?
4. Who was responsible for recognizing the change and making it happen?
5. What of the three approaches to change was used in your example?
6. Would either of the other two approaches have been more appropriate?

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Levels of Change
We have been using the word „change‟ in a broad sense, as if all changes are the same. In this session we
need to distinguish the impact on individuals, groups and organizations- that is, the level of change. We
can expect, for example, that a change at work which only effects a single individual should be simpler
to manage and take less time than one which affects a group of people or the whole organization.
Figure 2.1. below gives an idea of the relationships between complexity, time and number of people
evolved in different levels of change.
There is danger, however, in classifying a change as being at a certain level unless you are sure that this
is actually the case. For e4xample, you and your secretary might decide that he or she could henceforth
carry out their duties from home. One the surface, this might appear to be a change at the individual level,
since only one person’s job would change and only at necessary word-processing hardware and software,
and servicing this? Who would take over responsibility for telephone calls in your absence? What would
be done with the vacant office space? And how would other secretarial and clerical staff react?
Organization
Group

Individual

Ø Activity 4.8
Look back at activity 4.3. in session 1- your own change case study. Was the
change focused at the individual, group or organizational level? Would you
agree with the relative time and difficulty estimates outlined in figure 4.1 make
some notes about the level of your case study below.

Attitudes and roles

Some people speak of change with great passion while others see it as a threat. Mangy of us are
ambivalent: we see change as confusing, good and bad at the same time. Visions of the promised land are
mixed with fears of chaos and confusion. We may favor change in principle but become anxious about
where it is all leading. Change usually seems to involve risk, uncertainty and upheaval. Processes of
organizational change can be messy. They can proceed, without conviction, the outcome may not quite
square up to what was expected, and we may be left wondering whether it was all worth the trouble. In
our attitudes and our understanding of change, some much seems to depend on the degree of control we
have over particular changes. Ifwe are or perceive ourselves as the passive recipient of change, a pawn in
someone else’s game, then we are hardly likely to share any sense of excitement; the talk of „challenge‟,
„opportunity‟ and enjoy the feeling of movement and advancement, we may be less than chartable

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towards those who seem to be „dragging their heels‟, „stuck in their ways‟ or „lacking commitment‟.
The management literature on change reflects this ambivalence. Much of it is written for people who are
deemed to be in charge and it has a strongly missionary ring to it. Change is described in very dynamic
and positive converting doubters and backsliders to the glories of the cause. But it also highlights the
difficulties and uncertainties involved and the many ways in which it can „go wrong‟. Organizational
psychologists have demonstrated the high levels of stress that upheavals at work can bring to people’s
lives.

It is worth reflecting on your own general attitude towards change as this will determine how comfortable
you are in taking up particular roles in relation to change. People who feel in change of their lives can
usually tolerate uncertainty and are generally optimistic in outlook. They tendto assume that change is
„a good thing‟ (leading onwards and upwards) and may well consider managing change to be among the
most stimulating and worthwhile aspects of their work. For them, change is an opportunity. Other people
tend to be skeptical about the benefits and less tolerant of uncertainty. They are more likely to see change
as an imposition (from above or outside), a distraction or a necessary evil, a period to endure before
everything settles down again as soon as possible. For them, change is more problematic.

Organizations need both these sorts of people- or at any rate, people or at any rate, people or departments
able and willing to take on both sorts of roles- for they are complementary Enthusiasts are vital in
stimulating and supporting change and making it happen. Skeptics are effective in resisting misconceived
proposals and scrutinizing and improving basically sound ideas, all of which allows continuity in the
organization. The two may appear to be opponents, but each needs the other to avoid instability or
stagnation.
However, most of us are not strongly for or against change in general, although we may feel strongly
about particular changes and the way these are handled. Also, we may agree strongly that change is
necessary, for example because we are losing customers. Agreement on what formthat change should
take, however, may be less easy and result in disagreement and active resistance to the proposed solution.
Moreover, the roles we play in organizational changes depend on more than our attitudes to change.
Being an effective manager of change is not simplya matter of being a positive, entrepreneurial type
(indeed, being seen as a wide –eyed enthusiast may make things difficult for you). The next activity
indicates other factors that can shape your role, and help or hinder you as a manager of change.
Ø Activity 4.9.
𝐻𝑜𝑤 𝑑𝑜 𝑦𝑜𝑢 𝑟𝑎𝑡𝑒 𝑦𝑜𝑢𝑟𝑠𝑒𝑙ƒ 𝑎𝑠 𝑎 𝑚𝑎𝑛𝑎𝑔𝑒𝑟 𝑜ƒ 𝑐ℎ𝑎𝑛𝑔𝑒 i𝑛 𝑦𝑜𝑢𝑟 organization/ department/
section? Listed below are some advantages and disadvantages of being an „ insider‟ when it comes
to managing change. Go through the list, noting which statements are broadly true of you. Take as
much time as you need to relate your response to each statement.

Make a note of any implications that this analysis has for role as a manager of change as part ofyour
change case study. You should also make some notes about possible changes you might need to make in

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your attitudes about change.
Force field analysis
Having considered the levels of change and your own attitude and roles, we return to the pressures for
and against change that we left above. These may drive or restrain change.
A simple and original method for charting change was originally described by the psychologist Kurt
Lewin, who was interested in the behavior of groups of people he suggested that we can look at any
organization, or any situations, as being held in balance, or equilibrium, between the force which are
driving and restraining change. He called the diagram in Figure 4.4 force field analysis, although at first
sight it looks too simple to be called an analysis, let alone anything as formal as a force field analysis. But
when you try working with it, the potential in this little diagram becomes clear.

Driving force
Equilibrium
Restraining force

Figure 4.2 Force field analysis (source: Lewin, 1951)

Take any situation which is causing you a problem. It might be a personal problem such as whether you
should move house or not. It might be a work group problem such as the need to cut costs by 10% or
reallocate office accommodation. It might be a work group problem such as the need to cut costs by 10%
or reallocate office accommodation. It might be an organizational problem such as attempting to increase
the share of the market. In Lewin’s view, if nothing is happening it is because the opposing forces.
Restraining and driving change – are equal.
As we said, the diagram is very simple, but there are ways in which it can be elaborated. First, we need
to identify the driving or restraining forces and them assess their relative strengths. Strength is not
necessarily a function of sheet numbers- one powerful senior manager can have enough driving force to
push through a change despite the restraining force represented by the workforce.
Second, we can identify potential „assets for change‟ which are not currently harnessed as driving forces,
but which could be summoned up. Examples of assets for change might be employee or customer good
will or unexploited strengths in the management team. These are then included on the diagram for later
consideration of how they might be brought into play.
In Figure 4.3. the diagram has been elaborated. The thickness of the arrows indicates the relative strengths
of the forces. We have not identified the forces nor the particular assets for change at this point.
Driving force
Equilibrium

160
103
Restraining force
Figure 4.3 elaborating the force field analysis
Before you begin to try technique for yourself, you need to take certain steps to ensure you have as much
information as possible. Let’s begin with the driving forces.
a) Driving forces
First, have you got a complete list of driving force? Does it include the long term external forces and the
long –term strength of yourself or the organization? Perhaps your colleagues could help here by giving
their views on what forces are driving the change and these views may not be the same as your own. There
may have been forces you did not recognize, or some may not be as strong as you thought (and, therefore,
not able to withstand the strength of the restraining forces). Having listed your driving forces and given
them appropriate weight, you should find the current situation, in respect of driving and restraining forces,
is one of equilibrium. How might you increase the driving force to change that situation? Perhaps, by
making them more visible to others, by spelling them out in more detail, or by letting more people in on
your diagnosis of the situation so that more people can share your perception.
However, some driving forces, at least, are likely to be external to the individual the group and the
organization and therefore beyond immediate manipulation. These still need to be identified and assessed
on their likely importance.

A word of warning: the force field idea needs to be applied with some care, especially if you are going to
share your thinking with other people. You need to be clear what you mean when you identify someone
or something as a „force‟, and be sensitive to the dangers of thinking in terms of opposing sides. The aim
of force field analysis is not to create well-defined battle lines-„the push coming to the shove‟ – but to
make a realistic, all –round assessment of what is likely to be entailed by a particular proposal for change.
Introducing force field analysis into a situation which is already tense, and when positions have been
taken with respect to a proposed change, could polarize things further and create the very confrontations
and fixed positions which you were seeking to avoid. Be careful not to let force field analysis draw
you or other people into thinking in „win-lose‟ terms. Likewise, beware of associating restraining forces
with negativity. Opposition to a particular proposal is not the same as opposition to all change in the
organization.
b) Restraining forces
Reducing or decreasing the strength of the force which are inhibiting change is often the easiest solution
and so it is worth taking a ling and honest look at them. They may look fairly daunting, but some, with
proper communication, might even be turned into driving forces. Others may not be as strong as you
suspected or could be weakened in some way. We will look at one common restraining force in the next
section.
However, all this is assuming that the driving forces for change are „right‟: that the change is necessary
and that it is being carried out in the interests of the majority rather for than for individual gain. Analyzing
the restraining forces should include consideration of why they exist all and whether or not there are valid
and in fact stronger than the forces driving the change.
Restraining forces: resistance to change

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People frequently resist change – especially if it is someone else’s change that is imposed on them. For
individuals there may be good reasons – genuine expectation of loss or fear of the unknown. for groups,
planned changes may disrupt or threaten existing norms of behavior and be strongly resisted. At the
organizational level, the structure (especially a bureaucratic one) may have powerful mechanisms for
resisting change. Resistance to change can be a major restraining force-but it can also be overcome.
A summary of some of the main reasons for resisting change is shown in tableTable 4.3 Reasons for
resisting change

Reason Perceived outcome Common reactions

Parochial self-interest Expect to lose something of „political‟ behaviorRumor
Misunderstanding value as a result Open disagreement
Different assessments of the Misinterpretation; low
situation trustand lack of trust
Perceives changes
Low tolerance for change unfavorably; may havedifferent Excuses; face-saving behavior
information
Fear that may not possess skills/
aptitudes

a) Parochial self –interest:- parochial self- interest is a major reason why people resist organizational
change, because it is often human nature to put one’s own interests before those of the organization
(or even the department). The „political‟ behavior of individuals, which often results from parochial
self-interest, is usually fairly subtle. It can also find expression through the formation of pressure
groups whose objective is to ensure that the proposed change either does not take place or fails.

b) Misunderstanding:- occurs most frequently when there is a lack of trust and effective
communication between employees and management . it is also common for people to fail to
understand the implications or benefits of a change, particularly when these have not been fully
thought through and communicated by management.
c) Different assessments different assessments of the situation by employees an managers are only to
be expected given their likely difference in perception. It is a common failing for managers to assume
that everyone sees the same benefits of the change as they do, that everyone shares their values, and
that everyone has the same relevant information.
d) Low tolerance for change some people fear they will not have the ability to learn new skills or
work behavior. This resistance to change is most common when new technology is introduced and
little or no provision has been made for acquiring new skills.
Other reasons for resisting change include mistrust, „change weariness‟ and previous bad experiences
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of change. Mistrust occurs where the motive for the change is not apparent to those involved and
senior management are seen as being manipulative. „Change weariness‟ is the reaction of „change
for the sake of change; when there seems to be no strategy or planning and changes follow one after
the other for no apparent reason.

Under certain circumstances co-option can be a relatively inexpensive and easy way to gain an
individual’s or a group’s support (cheaper, for example, than negotiation and quicker than
participation.) Nevertheless, it has its drawbacks. If people feel they are being tricked into not
resisting, are not being treated equally, or are being lied to, they may respond very negatively. More
than one manager has found that, in an effort to give some subordinate a sense of participation through
co-option, they created more resistance than if they had done nothing. In addition, co-option can
create a different kind of problem if those co-opted use their ability to influence the design and
implementation of changes ways that are not in the best interests of the organization.

Other forms of manipulation have drawbacks also, sometimes to an even greater degree. Most people
are likely to great what they perceive as covert treatment and/or lies with a negative response.
Furthermore, if a manager develops a reputation as a manipulator, it can undermine the ability to use
needed approaches such as education/communication and participation/ involvement. At the extreme,
it can even ruin the manager’s career.
Nevertheless, people do manipulate others successfully – particularly when all other tactics are not
feasible or have failed. Having no other alternative, and not enough time to educate, involve, or
support people, and without the power or other resources to negotiate, coerce or Co-opt them,
managers have resorted to manipulating information channels in order to scare people into thinking
there is a crisis coming which they can avoid only by changing.

E. Explicit and implicit Coercion

Finally, managers often deal with resistance coercively. Here they essentially force people to accept
a change by explicitly or implicitly threatening them (with the loss of jobs, promotion possibilities,
and so forth) or by actually firing or transferring them. As with manipulation, using coercion is a
risky process because inevitably people strongly resent forced change. But in situations where speed
is essential and where the changes will not be popular, regardless of how they are introduced, coercion
may be the manager’s only option.
Successful organizational change efforts are always characterized by the skilful application of a
number of these approaches, often in very different combinations However, successful efforts share
two characteristics: managers employ the approaches with a sensitivity to their strengths and
limitations(see table 2.2) and appraise the situation realistically.

Table 4.4 Methods of dealing with resistance to change

Approach Commonly used in Advantages Drawbacks

these situation

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 Education Where there is lack of Once persuaded, people Can be very time
+ information or will often help with the consuming if many
Communic inaccurate information implementation of people are involved
ation and analysis the change
Participati Where the initiators do People who Can be very time
on + not have all the participate will be consuming if
involveme information they need committed to participators design an in
nt to design the change, implementing change, appropriate change
and where others have and any relevant
considerable power to informationthey have will
resist be integrated into the
change plan
Facilitation Where people are No other approach Can be time consuming
+ resisting
Support because of works as well with expensive and still fail
adjustment adjustment
problems problems

Negotiation + Where someone or some Sometimes a Can be too expensive in

agreement group will clearly lose out relatively easy way many cases if it alerts
in a change and where that to avoid major others to negotiate for The
group has considerable resistance compliance most
power to resist

Manipulation+ Where other tactics will Can be a relatively Can lead to

Co-option not work or are too quick and in future
expensive expense problems problems if people feel
manipulated
Explicit Where speed is essential Speedy and can Can be risky if it leaves
implicit + and the change initiators overcome any kind people mad at
coercion possess considerable of resistance theinitiators
power
common mistake managers make is to only one approach or a limited set of them regardless of the situation.
A surprisingly large number of managers have this problem. This would include the hard-boiled boss who
often coerces people, the people – oriented manager who constantly tries to involve and support people,
the cynical boss who always manipulates and co- opts others, the intellectual manager who relies heavily
on education and communication, and the lawyer- like manager who usually tries to negotiate.
A second common mistake that managers make is to approach change in a disjointed and incremental way
what is not a part of a clearly considered strategy. (Source: Kotter and Schlesinger, 1979) the second
common mistake identified by Kotter and Schlesinger, in the final paragraph of the extract, relates to the
way that managers set about implementing the change – the managing part of planning and managing
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change. The approaches, you decide to use to overcome resistance will depend on the reasons for resistance
and the particular circumstance(yet another – example of a „situational‟ approach to managing).

Ø Activity 4.10
Which of the approaches mentioned in the extract would you consider to be most
appropriate for dealing with?
a) Parochial self – interest
b) Misunderstanding/lack of trust?
c) Different assessments of the situation?
d) Low tolerance for change?
We would favor:
a) Negotiation
b) Education/participation
c) Communication
d) Facilitation and support.

Note, by the way, that although‟ manipulation‟ and „coercion‟ are included as approaches in the
extract, they should both be regarded as exceptional approaches. Unless you know what you are doing
and are clear that these approaches are the only ones possible in the interest of the majority, adopt
them only as a last resort.

Ø Activity 4.11
Return to your case study in activity 1.3. Having already identified one or more reasons
for resistance to change, which approach (es) do you think would be most appropriate
to overcome such resistance? Note them below.

4.3.2. Why people resist change

“Power tends to corrupt” runs the famous saying. But so does powerlessness,
Warns Rosabeth Moss kanter. It turns people into petty dictators, and makes them resist change.
An American engineering company she knows is trying hard to change its culture, and become more
entrepreneurial. But two of its key division chiefs, on whom its revival depends, are threatening
to leave because top management decided on a major reorganization without consulting them.
As author of the best- selling book the change masters- corporate entrepreneurs at work(1984) and
consultant to a string of top US companies, Moss Kanter has a fast – growing following of managers
who want to change their companies‟ ways, but don‟t know how.

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 She cites around ten reasons why people resist change, and has plenty of advice on what corporate
leaders can do about it.
 Loss of control, or the ratio of “done to me versus “done by me”. This is the problem being
experienced so bitterly in the engineering company. The obvious answer, she says, is to involve people
in decision – making, or even to get them to take the decisions themselves. One must be honest from
the very first about the limited choices that may be available. One must build coalitions, one must
even if the situation is so dire that it demands unilateral action, one must leave one’s subordinates to
decide, even if it only how to wild the axe.
 Excessive personal uncertainty, people often feel “like walking off a cliff blindfolded”. The first
question they ask when confronted by changes, say moss kanter, is “what’s it going to mean for may
job?‟ the response should be to provide more information, and especially to explain the personal
implications of the change, including how long uncertainty is likely to last. One should not only
explain what is happening, but why. One should create credibility by being honest.
 Avoid surprises, even when the change is positive. “Springing bright new ideas on people creates
skepticism, if not downright negative ness – people want a change to think things through.” One way
to overcome this hurdle is to make information plans. Another is to hold a series of one-to-one
meetings before an announcement is made.
 The difference effect” people build identities round certain aspects of a business, round corporate
name, even round buildings. So „only change what you have to and honor tradition by keeping familiar
symbols.”
 Loss of face. One of the biggest sources of resistance, this can be at least partly overcome by
acknowledging people’s competence under the old regime, and again – by letting them participate in
deciding the change.
 Concerns about competence. People worry that all I know is that old style of management”. Or “I
don‟t know how to type and now they‟ he taken a way may secretary‟. The solution is to train, coach
and “rehearse” people.
 Ripples. The unexpected effect of action in one area upon another. The solution? Catastrophe – “think
the unthinkable‟
 More work. Change always means more work. One should be open about this, and challenge people
to do it: “acknowledge that it’s a reality, and reward it”.
 Past resentments. People will resist change if its source is a person or an organization about whom(or
which) they have a grievance. “the cobwebs of the be, one should discover them, and remove or repair
them.
 Real threats. Sometimes people are fight to resist change, because it really will threaten them. The
response? Don‟t hide it. Be honest. Make it short – do it first and fast.” And yet again, involve people.
“you can mitigate some of the pain by giving people different options for how to handle the pain.”
Presenting this advice to a management center Europe conference earlier this month, moss kanter
concluded with the caveat that some times – just sometimes – it is, after all, better to act first and explain
afterwards. She called this “the Jesuit principle of management” – that “it is easier to beg forgiveness than
ask permission.”
This was a particularly good principle for middle managers who faced roadblocks but wanted to get things
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done, she argued. After listening politely, but with restraint, to all her advice about consultation and
consideration, many of the executives in her audience visibly relaxed. The were back in the familiar
managerial territory of decide and rule.
(source: Financial Timesm, 29 may 1989)

This article emphasize the value of involvement – even partial involvement – to overcome resistance.
Openness and honesty are stressed, with little mentions of manipulation and coercion. It is widely believed
that individuals and the organizations that represent the always resist change in a determined, unreasoning
way. The general picture of widespread resistance to change by workers and trade unions is not, however,
borne out by the evidence. A major study in relation to the introduction of new technology concluded that:
Overall, our results showed, first, that when it came to the introduction of particular change involving
advanced technology at the workplace, the general reaction of the workers affectedwas favorable.
Secondary, in involved, they tended to support the change even more stronglythan their members.
(Daniel, 1987)
Ø Activity 4.12
Before applying force field analysis your own change situation, try it out on the
following short case study and see if your analysis matches ours.

Marketing services from a high street bank

The UK financial services sector has been undergoing a period of unprecedented change sincethe mid-
1980s, precipitated by a number of factors. First, we witnessed a sustained growth in the use of new
technology, with banks and building societies spending on average three times as much as percentage of
turnover than other industries. Secondary, we saw the increased sophistication of both personal and
corporate customers, with institutional investors becoming particularly important. Thirdly, competition
increased, with trade being conducted on more global a scale than ever before.
Simon is the assistant manager of a high street branch of a national Bank – one of the top four his manager
has told him about directives from head office to increase revenue through the marketing of a wider range
of financial services, including personal pensions, life and health insurance house mortgages and
investment bonds there is extra budget forthcoming to achieve this goal and a headcount freeze rules our
recruitment the bank’s staff, all hired at a time when the bank was in a more stable environment. There is
now much less differentiation between financial institutions with banks building societies and insurance
companies all trying to market a broad portfolio of personal and corporate financial “products.” Such
products typically have a shorter life cycle and are less standardized. Some ambitious experiments, like
moves into estate agency work, have conspicuously failed in the teeth of the recession.
A year ago Simon’s branch was refurbished to increase the space available for meeting customers,
previously a narrow and rather dingy foyer. An on-line database had been recently installed, containing
comprehensive customer information, enabling speedy retrieval and display during the course of a
telephone conversation or consultation. One Clerk, Yvonne, has performed quite and effective marketing
role for the branch, building up an impressive report with a large number of local businesses and clients
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during her long service with the bank; this, however, has been very much as a result of informal and
individual effort. Indeed, she is reluctant to release any of her expertise or accumulation of goodwill to
others.
Draw a force field diagram which shows the forces driving and restraining a change to a more proactive
marketing strategy in Simon’s bank.
Our diagram, figure 4.4, is shown below – don‟t worry if yours is different. Not all the forces we identified
are immediately obvious from reading the case study but, for example, you could make a reasonable
assumption that some of the bank staff would be resistant to a change which involved extra work-
marketing financial services – for which they may not have been trained.

Ø Activity 4.13
The example of force field analysis change in the banking world should give you an idea of how
to use the force field diagram to describe a change situation. Refer back to Activity 4.3and to
your answers in the Activities in this session. Try out your own force field analysis of the
circumstance leading up to change you have described in your own case study.

4.3.3. Choosing a change strategy

In text question
Dear student, what change strategies do you know

So far we have looked at the forces which can drive or restrain change, some reasons for resisting change,
and some ways of overcoming the resistance. In this session we shall consider overall approaches or
change „strategies‟. By „strategy‟ for change we mean a consistent, overallapproach that encompasses
factors such as:
 The pace of change
 The degree of management direction
 The use of external agencies, for example consultants.
There is no one best strategy for planning and implementing change. We may hear successstories
of aggressive managers imposing changes rapidly and with little regard for the views, expertise and
even jobs of the workforce. This may only be successful in the very short term, and yet given a desperately
urgent situation, it may be the only possible approach. However, in most cases, you will be able to choose
the rate of change, and we look at this further in section 3.2 Strategies for change
Ideally, effective change management should be carried out as part of an overall change strategy:
unfortunately, too often there is no recognizable strategy in lace! Think back to case study on change that
you drew up in Activity 4.3. was this part of a clearly defined strategy? Who decided what, and in
consultation with whom? Was there any clear path along which the change was planned, managed and
implemented?
One classification of strategies for change is summarized in table 4.5 and discussed in moredetail
below. The table identifies five strategies for planning and implementing a change. Alongside each

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strategy is a summary of the approach used and examples of the kinds of ways in which it might be carried
out.
Directive strategies
When employing a directive strategy, management decides what is to be done and implementsthe
change with little involvement of others or deviation from the plan . Directive strategies are frequently
adopted fir changes which must be carried out speedily. This may be appropriate reaction in a crisis,
such as major decline in order or overall competitiveness, when thoseaffected are simply required
to comply with the imposed changes or when systems, rather than people, are the focus of change.

Φ Activity 2.14.
Return to Activity 1.3. To which end of the fast – slow continuum was that change pushed by
each of the four factors discussed by the authors of the article?
Fast Slow
By the amount and king of resistance
expected

By the power bases (s) of the initiators

of the

By the need to get information and

commitment from others

by the level of short – run risk to your

organizational performance and survival

Make any notes on your observations in the space below.

Having looked at the pressures and forces for change, resistance and ways to overcome it, and ways in
which an overall strategy can be chosen, we can now look at putting together an overall change
programmed. This is our focus in the final session.
So far in this unit we have focused on a manager’s work in preparation for change. This reflects the need,
in most cases, to spend more time in preparation than in implementation, since the success of the latter
will depend on the quality of the former the preparation phase involves:

 Recognizing the change issue (identifying the problem and a need for change, often due to external

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 pressures on the organization)
 Identifying the level, or kevels, at which the change will take place – individual group or
departmental, organizational – and the likely complexity that will be involved
 Identifying the forces for change and the factors inhibiting the process (force field analysis)

 Identifying the likely extent of resistance to change and the possible reasons for suchresistance,
and considering ways of overcoming it
 Choosing an appropriate change strategy within which the change ca be managedeffectively.
Having gone through the preparation phase, we can actually get on with changing things – the change
programmed – and evaluate the implementation.
a) Three state of implementing change
Kurt Lewin, who conceive the force field diagram used in Session 2, also identified three criticalstages
in the implementation of a change or innovation:
 Unfreezing
 Changing
 Refreezing
In the first unfreezing stage, previous ideas and practices are being softened up and people aregetting
prepare for change. During the changing stage, they have been persuaded to set aside the old ways and
are ready to try out the new. During refreezing, the new harden in to a new, accepted system.
Each of the three stages has its own particular set of problems. Initially, the problem is that of identifying
and overcoming resistance and inducing the right frame of mind in order to adopt and implement the
change. The problems in the second stage are mainly concerned with putting the change in to effect – and
this requires very carefully planning. We must then ensure that the change becomes permanent or
“institutionalized” – that is, embraced so wholeheartedly that is becomes part of the organizational culture.
But this will not happen if those affected by the proposed change turn out to be incapable of coping,
certain aspects of the innovation fail to live up to expectations or the necessary organizational support is
lacking

We now look in more detail at these stages of change.

Stage 1 – Unfreezing

It is crucially important to get everyone into the right frame of mind to adopt and implement any change.
This is when you are likely to encounter resistance for the reasons outlined in Session 2
– parochial self – interest, misunderstanding, different assessments of the situation, low tolerance for
change, mistrust, change weariness and bad experience of change.

Kotter and Schlesinger (1979) also identified ways in which this resistance might be overcome – and the
methods adopted should reflect the overall strategy for planning and implementing change which has
been selected. For example, resistance to a directive change strategy is likelyto be cased by widespread
misunderstanding and lack of trust in the initiators of the cased by widespread misunderstanding and lack

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of trust in the initiators of the change; following a directive strategy, the change manager is more likely
to use manipulation and coercion than education and communication to combat resistance.

However, many change situations require strategies other than the directive one, and kotter and
Schlesinger stressed the importance of communication and education, facilitation and support, aswell as
participation and involvement. New skills are likely to be needed, and so training should be organized
well in advance of the investment in new systems of technology. The point is towin hearts as well as
minds. Early training can build confidence in the individual that they can cope with new technology. This
will help to unfreeze attitudes. Training will be needed new technology. This will help to unfreeze
attitudes. Training will be needed eventually, anyway, if the potential gains of the investment are to be
fully realized, so bring it forward and use it in the unfreezing stage.
It is at this second stage, implementing the change itself, that the choice of strategy will be put to the test.
Preparation for this stage should have been very through, taking into account all the factors identified by
kotter and Schlesinger in Session 3 – and carry out the necessary analyses. Your study of this course has
already offered you ideas on planning and control, managingpeople and the importance of management
style. All these will be crucial to a successfulimplementation of change.
Alexander (1985) undertook a survey of 93 private sector organizations in the UK to determine which
implementation problems occurred most frequently as they tired to put strategic decisions into effect. The
most common problems were:
 The implementation took much longer than had originally been anticipated

 Some major problems arose during implementation that had not been identified earlier

 The co – ordination of activities (fir example, by task force, committees, superiors) wasnot
always effective enough
 Competing crises and activities distracted attention away from managing the implementation.
 The capabilities (skill and abilities ) of some of the employees involve were insufficient to meet
the new challenges
 Training and instruction were sometimes inadequate

 Uncontrollable factors outside the organization (for example, competitive pressures and
economic or governmental changes) had an adverse effect on implementation.

These problems are by no means specific to the private sector and can occur in almost any change
situation. So the best laid plans can come to grief for any number of reasons at this second stage of the
change process.

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Φ Activity 2.15
Look back to your case study in Activity 4.3. did the process of implementing change go as
smoothly as planned? Which of the problems, if any, identified by Alexander arose how could
they have been avoided? Note down your comments in the space below.

Alexander suggests a number of ways in which problems at Stage 2 of the change process might be
avoided:
 A well – formulated strategy
 Clear communication between and across all levels about the changes strategy
 Employee commitment and involvement
 Sufficient finical, human, technical and time resources
 A detailed implementation plan.
It is particularly important that enough time is allowed for this second stage of the change process. Initial
enthusiasm that is aroused during the unfreezing stage may lessen if the change creates problems which
had not been anticipated. Time will be required to deal with any new or latent resistance that may arise.
Stages 3 – refreezing
Too often, a carefully planned change comes to grief through inadequate attention to managing the
consolidation or refreezing stage. Things can still go wrong and new resistances can appear. It is during
refreezing that the innovation will be most at risk, as unforeseen difficulties arise, enthusiasms fail, and
people slip back into comfortable old ways. Then, the refreezing may take place without incorporating
the innovation – the innovation suffers a kind of „tissue rejection‟. Hence, it is necessary to monitor the
change and appropriate managerial action, the refreezing stage will not be satisfactorily accomplished.
The situation may also refreeze without the change being incorporated for many other reasons. For one
thing, the innovation itself may be changed in the hands of the people it is supposed to be affecting.
They may modify the new layout more than you required. A reallocation of responsibilities may „go to
their heads‟ to the extent that they on unexpected roles. Or the new reporting system may be adopted in
form but not in sprit. So people may be taking things much further (or just differently) form what you
intended, or may be „going through the motions‟ suggested by the innovation but without really changing
their thinking. Even more worrying, perhaps, there may become irksome or even insufferable to the people
concerned and they will develop resistance even though they were inclined to accept the innovation to
begin with. Thus there are many reasons to monitor the refreezing stage so that faults or dissatisfaction
can be identified early enough to be remedied.
b) Evaluating change
Evaluation is difficult. Often it is hard to test the outcome against the original objectives sometimes it is

115
 difficult to define suitable criteria, and of course we often don‟t know what would have happened without
the planned change. Often, too, there are untended outcomes. However, if the objectives have been
carefully constructed and measures for each objective clearly described, then some degree of evaluation
should be possible.
Many people ask how it is possible to measure „soft‟ objectives such as attitude of morale. On first sight
these areas appear to be far more subjective than objective but it may still be possible to assess general
trends. Morale, for example, can be monitored over time by using a number of indicators such as the level
of absenteeism, labour turnover, dissatisfaction with payment, criticism or working conditions and
reactions to management directives or request. This sort of data can be collected by survey using
appropriate questions or by keeping records of indicators such as absenteeism. The direction the indicator
is moving is the key point. In similar fashion,the use of questionnaires before and after change has been
implemented can provide indications of the degree to which that change has been accepted or resisted.
As change agents, managers owe it to themselves to set objectives which can be measured and to monitor
the key criteria before, during and after the change has been implemented. Only in this way can the success
of the change be measured and acted.

4.4. Work Stress and its Management

What is Stress?
In text question
Dear Student, what are stress and its cases?

Stress adaptive response to a situation that is perceived as challenging or the cleaning to the person’s well
being. As we shall see stress is the person’s reaction to a situation. Not the situation itself. Moreover, we
experience stress when we believe that something interferes with our well – being, that is, with our innate
drives and need fulfillment. Stress has both psychological and physiological dimensions .
Psychologically, people perceive a situation and interpret it as challenging or threatening. This cognitive
appraisal leads to a set of physiological responses, such as higher blood pressure sweaty hands, and faster
heartbeat.
We often hear about stress as a negative consequence of modern living, people are stressed from
overwork, job insecurity, information overload, and the increasing pace of life. These events produce
distress the degree to physiological, psychological, and behavioral deviation from healthy functioning.
There is also a positive side of stress, called eustress that refers to the healthy positive. Constructive
outcome of stressful event and the stress response eustress is the stress experience in moderation, enough
to activate and motivate.
4.4.1. The causes of Stress
Stressors, the cause of stress, include environmental conditions that place a physical or emotional demand
on the person. There are numerous stressors in organizational settings and other life activities Exhibit 5.2.
lists the four main types of work – related stressors: interpersonal, role – related, task control,
organizational and physical environment stressors.

a) Interpersonal Stressors

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 Among the four types of stressors, interpersonal stressors seem to be the most pervasive at school and
work, The trend toward teamwork generates interpersonal stressors because employees must interact more
with co – workers, Bad bosses, office politics, and various types of interpersonal conflict also take their
toll on employees, For example, one recent study found that employees experienced stress immediately
after exposure to organizational politics, Other interpersonal stressors include sexual harassment,
workplace, and bullying remove the stressor. For instance social support might reduce a new employee’s
stress because co – workers describe ways to handle difficult customers. Finally emotional support from
others can directly help to buffer the stress experience. This last point reflects the idea that “ misery loves
company.” People seek out and benefit front he emotional support of others when they face threatening
situations.

Φ Activity 4.18
Attempt the following
1. Explain individual and the degree to resists stressors
2. Discuss the three main consequences of distress.
3. Briefly describe How to manage work related stress.

Social support is an important way to cope with stress that everyone can practice by maintaining
friendships. This includes helping other when they need a little support form the stressors of life.
Organizations can facilitate social support by providing opportunities for social interaction among
employees as well as their families. People in leadership roles also need to practice a supportive leadership
style when employees work under stressful conditions and need this social support. Mentoring
relationships with more senior employees may also help junior employees cope with organizational
stressors.
4.5. Check List
Read the following statements and the tick if your answer is „yes or go back and refer if youranswer
is „no‟
Yes No
I can explain the main concerns of organizational development

I can discuss the characteristics of organizational development

I can describe different approaches to organizational development
I can explain the importance of change
I can recognize reasons of change
I can compare and contrast the advantage and disadvantages of different
change approaches

I can describe a change situation I came across

I can describe cause of stress in work situations

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I can discuss how to manage work situations
I can discuss ho to mange work related stress.
I can discuss the relationship between occupations and stress
I can explain levels of change
I can describe force field analysis
I can explain common reasons for change resistance
I can plan and implement change

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4.6. Progress Questions
True or False
1, Unfreezing is the first task to make the team aware of the need for change.
2, Some people speak of change with great passion while others see it as a opportunity.
3, Organizations are never static.
4, Excessive personal uncertainty may be a cause for people to resist change.
5, Social support is not important way to cope with stress that everyone can practi ce by
maintaining friendships.
6, Bottom-up approaches to change have become well known through quality improvement
teams, local groups, empowerment and performance initiatives .

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4.7. Apendex
Answer Keys

Chapter No Answer Chapter No Answer

One 1 A Three 1 B
2 A 2 C
3 A 3 D
4 E 4 E
5 A 5 D
6 C 6 A
7 C Four 1 T
8 E 2 F
9 E 3 T
10 B 4 T
Two 1 C 5 F
2 C 6 T
3 C
4 B
5 A
6 C
7 D
8 A
9 E
10 C

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