Unit 1

Introduction to Organizational Behaviour

• Organizational Behaviour – Definition – Scope & Characteristics - Key Elements of
OB – Disciplines contributing to OB – Models of OB.

CONCEPT AND NATURE OF OB: Organisational behaviour (OB) is the study and
application of knowledge about how people as individuals and as groups - act within
organisations. It helps to identify ways in which people can act more effectively.
Definition:
1. Newstrom and Davis define Organisational Behaviour as, "the study and application
of knowledge about how people - as individuals and as groups - act within
organisations".
2. According to Robbins, "Organisational Behaviour is a field of study that investigates
the impact that individuals groups and structure have on behaviour within
organisations for the purpose of applying such knowledge toward improving an
organisation's effectiveness".
3. According to Fred Luthans "Organisational behaviour can be defined as the
understanding, prediction, and management of human behaviour in organisations."

From the definitions given above we can conclude that OB is a scientific discipline and it is
concerned with development of concepts as well as research, and the application of such
knowledge in order to increase the effectiveness of organisations. Further, it studies behaviour
at many levels of analysis, namely, individual, group and organisational.

Organisational Behaviour studies human behaviour at the following levels:

A. Individual Behaviour: OB is concerned with the behaviour of individuals with an
organisation.
B. Interpersonal Behaviour: OB is concerned with interpersonal relationships within
an organisation. For instance, OB aids managers to understand the behaviour of two
employees when they interact with each other.
C. Behaviour within Groups: OB also studies the behaviour of formal and informal
groups in an organisation.
D. Intergroup Behaviour: Managers examine intergroup relationships, when there is a
need to coordinate the efforts of two or more groups.
 E. Interorganisational Behaviour: OB examines the Interorganisational relationships
in matters relating to mergers, joint ventures, etc.
Nature and Characteristics of OB:
The main characteristics of the field of organisational behaviour are briefly stated as follows:
1. Interdisciplinary in Nature: Organisational Behaviour is interdisciplinary as it combines
behavioural sciences with other social sciences to better understand people and organisations.
Key contributors include psychology, which offers insights on learning, perception,
personality, leadership, and motivation; sociology, which adds knowledge on group
dynamics, work team design, and organisational culture; and social psychology, which
contributes to attitude change and group decision-making. Anthropology enhances
understanding of organisational culture, environments, and cultural differences, while
political science informs on power allocation and conflict. Its interdisciplinary approach is
comparable to medicine, which integrates physical, biological, and social sciences into
practice.
2. Interaction of Theory, Research and Practice:

Practice

Theory Research

Theory: Organisational behaviour has grown because, it has effectively combined theory
development with research and managerial practice. Theories try to explain how and why
people behave in a particular manner. Theory development occurs when important variables
are identified and linked through tentative propositions. But mere theory development is not
enough. It must be supported by research.
Research: Research is the ongoing process of gathering and interpreting relevant evidence
that will either support a behavioural theory or modify it. Research involves developing
testable statements (hypotheses), which are then tested through data collection. Data is
collected using case studies, field and laboratory experiments, surveys, etc. Both research and
theory by themselves would be of little use without managerial practice.
Practice: Practice is the conscious application of conceptual models and research results to
improve individual and organisational performance. There is a healthy flow from theory and
research to practice, and at the same time managers can also give feedback to improve theories
and models. A major strength of organisational behaviour is the increasing acceptance of
theory and research by practicing managers. Managers today are more receptive to new
models. They support related research and experiment with new ideas. Thus, it can be
concluded that as a result of the close interaction of theory, research, and practice;
organisational behaviour has progressed substantially.

3. Goals: Most sciences share four goals to describe, to understand, to predict, and to control
some phenomenon. OB also embraces these goals. This is because -
• OB tries to describe how people behave under a variety of conditions.
• OB makes an attempt to understand why people behave in a particular manner.
• OB makes an attempt to predict future employee behaviour.
• OB tries to control some human activity at work.

4. People: OB focuses primarily on people. Technology, structural relationships, environment

and other elements are considered as they relate to people.

5. Group/Individual Behaviour: OB may be individual behaviour or group behaviour. The

behaviour of individuals as well as that of groups in an organisation has direct bearing on the
performance of the organisation.

6. Behaviour Directed at Different Parties: OB relates to behaviour of the members of the

organisation towards each other, towards other groups in the organisation, and towards
outsiders, including customers, suppliers, dealers, etc.

7. Employee and Organisational Needs: OB seeks to fulfill both employee needs as well as
organizational objectives. It tries to have a balance between organizational productivity and
employees' satisfaction.

GOALS OF OB:- The study of OB helps in understanding human behaviour, which in turn
helps in achievement of organisation's goals. The overall goal of an organisation is to increase
productivity.
Productivity implies a concern for both effectiveness and efficiency For instance, a retail
store is said to be effective when it meets the needs of its customers and successfully attains
its sales target. It is efficient when it can meet the needs of its customers (attains the sales
target) at a low cost. Therefore, it can be said that effectiveness relates to achievement of
goals, and efficiency is the relation between returns to costs.
Apart from the goal of raising productivity, organisations tend to achieve certain other
objectives with the help of the study of OB.

The other organisational goals include:

Reduction in Absenteeism: Absenteeism is the failure of employees to report to work, which

can cost organisations significantly and disrupt not only the absentee’s tasks but also those of
connected employees. While some level of absenteeism is inevitable, organisations benefit
when it is low, as high absenteeism hampers efficiency, disrupts workflow, and delays
decisions. However, not all absences are harmful—at times, they allow employees, such as
stressed managers, to rest and return with improved performance, preventing poor decisions
under pressure.
Reduction in Employee Turnover: Turnover is the permanent withdrawal of employees
from an organisation, either voluntarily or involuntarily. High turnover increases costs for
recruitment, selection, and training, and disrupts operations, especially when experienced staff
leave. However, not all turnover is harmful—losing inefficient employees can benefit the
organisation by creating opportunities for motivated individuals with fresh ideas. Managers
should focus on retaining the right people while allowing ineffective ones to exit.

Organisational Citizenship: It refers to discretionary employee behaviour beyond formal job

requirements that enhances an organisation’s effectiveness. In today’s team-oriented and
flexible work environment, such “good citizenship” includes helping colleagues, volunteering
for extra tasks, avoiding conflicts, caring for organisational property, following rules, and
tolerating minor inconveniences. Organisations with such employees tend to outperform those
without them.

Job Satisfaction: It is an employee's general attitude towards his/her job. It is normally

believed that satisfied employees are more productive than dissatisfied [Link] job
satisfaction is associated with lower employee turnover. When an employee is satisfied with
the job, he will not think in terms of quitting or searching for other jobs. He is less likely to
find alternatives, and therefore, less likely to quit. If an employee is dissatisfied, either because
the job is not challenging, or he receives no recognition, or has conflicts with supervisors or
peers, he will think of quitting. Also absenteeism may be high when job satisfaction is low.
All absences, however, need not be due to low job satisfaction. A satisfied employee may also
remain absent due to valid reasons, such as health problems, important personal work, etc.

Goals of OB: Organisational behaviour has four main goals, which helps to study human
behaviour, and to accomplish the goals of the organisation. The goals of OB are as follows:

1) To Describe Behaviour: The first goal of OB is to provide a systematic and accurate

description of human behaviour. It aims at describing individual behaviour under a variety of
situations, at this stage, OB is concerned with how individuals behave and it is a necessary
step before we try to understand the causes of behaviour. Once this goal is achieved, it is easier
for managers to communicate about human behaviour.

2. To Understand Behaviour: Once a complete description of human behaviour is achieved,

OB moves on to the next goal, namely, that of explaining the behaviour. An inquisitive
manager is not satisfied by merely describing the behaviour of an employee. He is curious to
know the reasons for the behaviour. At this stage OB is concerned with the Why of behaviour.
For example, if an employee's work behaviour is described as that of low productivity, then
at this stage OB investigates the causes underlying the low productivity, like poor training,
lack of motivation, etc.

3. To Predict Behaviour: Predicting future behaviour of employees or groups is an important

goal of OB. Managers should have the capacity to predict behaviour of individuals and/or
groups within an organisation. For instance, managers may predict, which employees might
be committed and productive, and which ones might be not. Predicting behaviour would
enable the managers to take preventive action.

4. To Control Behaviour: The final goal of OB is to control and change (wherever possible)
the behaviour of employees, so that both the individual as well as the organisation benefits.
Here managers are concerned with how to change behaviour. For example, if the employee's
productivity is low due to poor training, then the manager would implement suitable training
programs to increase productivity.

Managers need to remember that organisational behaviour is a human tool for human benefit.
In every organisation, there is a need to describe, understand, predict and better manage
human behaviour.

IMPORTANCE OF OB: The study of OB helps in understanding human behaviour, which

in turn helps in achievement of organizational goals. The importance of OB can be explained
as follows:

1. Description of Employee Behaviour: OB is important as it provides a systematic and

accurate description of human behaviour. It aims at describing individual behaviour under a
variety of situations. At this stage, OB is concerned with how individuals behave and it is a
necessary step before we try to understand the causes of behaviour. Once this goal is achieved,
it is easier for managers to communicate about human behaviour.
2. Understanding of Employee Behaviour: Once a complete description of human
behaviour is achieved, OB moves on to explain the employee behaviour. An inquisitive
manager is not satisfied by merely describing the behaviour of an employee. He is curious to
know the reasons for the behaviour. At this stage OB is concerned with the Why of behaviour.
For example, if an employee's work behaviour is described as that of low productivity, then
at this stage OB investigates the causes underlying the low productivity, like poor training,
lack of motivation, etc.
3. Prediction of Employee Behaviour: Predicting future behaviour of employees or groups
is an important goal of OB. Managers should have the capacity to predict behaviour of
individuals and/or groups within an organisation. For instance, managers may predict, which
employees might be committed and productive, and which ones might be not. Predicting
behaviour would enable the managers to take preventive action.

4. Controlling of Employee Behaviour: OB helps to control and change (wherever possible)

the behaviour of employees, so that both the individual as well as the organisation benefits.
Here managers are concerned with how to change behaviour. For example, if the employee's
productivity is low due to poor training, then the manager would implement suitable training
programs to increase productivity.
5. Increase in Productivity: Productivity implies a concern for both effectiveness and
efficiency. For instance, a retail store is said to be effective when it meets the needs of its
customers and successfully attains its sales target. It is efficient when it can meet the needs of
its customers (attains the sales target) at a low cost. Therefore, it can be said that effectiveness
relates to achievement of goals, and efficiency is the relation between returns to costs.
6. Reduction in Absenteeism: Absenteeism is the failure of employees to report to work,
which can cost organisations heavily and disrupt the tasks of both the absentee and connected
employees. While some absenteeism is unavoidable, low levels benefit organisations by
maintaining efficiency, workflow, and timely decisions. However, not all absences are
harmful—occasional breaks, such as for a stressed manager, can improve performance and
prevent poor decisions.
7) Reduction in Employee Turnover: Turnover is the permanent, voluntary or involuntary,
withdrawal of employees from an organisation. While high turnover raises costs and disrupts
operations, losing inefficient staff can benefit the organisation by creating space for motivated
individuals with fresh ideas. Managers should focus on retaining the right people.
8. Organizational Citizenship: It is discretionary behaviour beyond formal job duties that
supports an organisation’s effectiveness, such as helping teammates, volunteering for extra
tasks, avoiding conflicts, caring for property, and following rules. Organisations with such
“good citizenship” employees tend to perform better.
9. Job Satisfaction: Job satisfaction is an employee’s overall attitude toward their job, with
higher satisfaction leading to greater productivity, lower turnover, and reduced absenteeism.
Dissatisfaction from lack of challenge, recognition, or workplace conflicts increases the
chances of quitting, though absences can also occur for valid personal or health reasons.
10. Working Relationships: OB establishes and maintains desirable working relationships
among all the members of the organization. Authority and responsibility of each job is clearly
defined. Clear lines of authority and responsibility develop good relations between the
superior and subordinates and also among the various departments. OB also develops and
maintains effective working relationships with various other stakeholders like customers,
shareholders and other members of society. This enables the organization to build goodwill in
the market.
DISCIPLINES AND SCOPE OF OB: OB is an inter-disciplinary approach. OB is an
applied behavioural science that is built on the contributions from a number of behavioural
disciplines, such as:
Psychology
Sociology
Social Psychology
Anthropology
Political Science

Psychology: Psychology is a behavioural discipline that studies and explains human and
animal behaviour, with contributors to OB including learning and personality theorists,
counselling, and organisational psychologists. Earlier, organisational psychologists focused
on issues like fatigue and working conditions, while today they address factors such as
learning, perception, personality, emotions, motivation, leadership, job satisfaction, decision-
making, performance appraisals, employee selection, work design, and stress—helping
organisations improve efficiency and overcome performance-related challenges.
Sociology: Sociology as a behavioural discipline studies people in relation to their fellow
human beings. While psychologists focus their attention on individual behaviour, the
sociologists study the social system in which individuals perform their roles. Sociologists have
contributed to OB through their study of group behaviour in organisations, particularly formal
and complex organisations. Some of the areas within OB that have received valuable input
from sociologists are group dynamics, design of work teams, organisational culture, formal
organisation theory and structure, organisational technology, communications, power and
conflict.
Social Psychology: Social psychology is a behavioural discipline that combines the concepts
from both psychology and sociology. It focuses on the influence of individuals on one another.
One of the major areas receiving considerable investigation from social psychologists has
been change, i.e., how to implement the change and how to reduce barriers to its acceptance.
The modern social psychologists are making significant contributions in the areas of
measuring, understanding, and changing attitudes, communication patterns, building trust, the
ways in which group activities can satisfy individual needs, and group decision-making
processes.
Anthropology: It is the study of societies to learn about human beings and their activities.
Anthropologists work on cultures and environments has helped to understand differences in
fundamental values, attitudes, and behaviour between people in different countries and within
different organisations. The contributions of anthropolists have helped us to understand the
intricacies of organisational culture, organisational environments, and differences between
national cultures.
Political Science: It studies the behaviour of individuals and groups within a political
environment. The political scientists have contributed to the understanding of behaviour in
organisations, in areas such as structuring of conflict, allocation of power, and how people use
power tactics for achievement of individual and s organisational goals. The political scientists
have done extensive research on power and politics in organisations. A popular view of
organisational politics is how one can pragmatically get ahead in an organisation. Alvin
Toffler, the famous author of Future Shock, The Third Wave, and Powershift, observed that
"companies are always engaged in internal political struggles, power struggles, infighting, and
so on. That's normal life."
MODELS OF OB: According to Keith Davis, there are five models of organizational
behaviour. They are:
1. The Autocratic Model
2. The Custodial Model
3. The Supportive Model
4. The Collegial Model
5. The System Model
Every organization practices one or more OB models, depending upon factors, such as:
• Management philosophy
• Organizational goals
• Business environment, etc.

The OB models are explained as follows:

1. The Autocratic Model: The autocratic model lays emphasis on power. An autocrat is the
one who takes all decisions by himself and expects to be obeyed by his subordinates. The
employees have no scope to question the manager. The employees, who do not obey the orders
of their manager, may be punished. The employees are interested in satisfying subsistence
needs for themselves and their families.
Some of the important features of this model are stated as follows:
 1. A formal authority flows from the top level of management to the lower levels of
management.
2. The employees are highly dependent on their superior.
3. The manager assumes that the employees need to be directed, persuaded and pushed
even for minimum performance.
4. The relationship between superiors and subordinates is very formal.
5. Such type of model can be applicable to owner managed enterprises and to small
organizations.
The benefits of this model are, helps to get the work done by the employees because the
manager orders the employees to perform their activities and advocates the principle of unity
of command i.e. the subordinates receive order only from one superior.
The issues of this model are, highly involves human costs as existing employees may leave
the organization and the organization has to bear the cost of selection and training of new
employees and There is lack of motivation and therefore the employees may not provide
suggestions for improvement.
2. The Custodial Model: The custodial model emerged due to the employees feelings of
insecurity, frustration and aggression towards their managers. The employees want a better
quality of work life. To satisfy security needs of the employees, many companies started
welfare programmes like fringe benefits, such as medical allowances, transport allowances,
canteen allowances, etc.
Some of the important features of this model are stated as follows:
1. The superior adopts paternalistic style of leadership.
2. The success of this model depends on economic resources i.e. payment of wages, and
benefits and rewards to the employees.
3. Employees are dependent on the organization for economic needs.
4. Generally, the employees are more interested in gaining financial security.
The benefits of this model are, employees are happy and contented and brings a sense of
security and satisfaction to the employees.
The issues of this model are, does not develop a feeling of strong motivation in the employees
to perform effectively and develops passive co-operation in the employees.
3. The Supportive Model: The supportive model has its origin from the following two
sources, that Rensis Likert stated "the principle of supportive relationships", where he
highlights the interaction of human relationships in the organization and Elton Mayo and his
associates conducted Hawthorne experiments, which concluded that an organization is a social
system and the workers are an important part of it. They further stated that the informal and
interpersonal relations among workers influence the workers' behaviour and performance
more than the formal relations in the organization.
Some of the features of this model are:
1. The focus of this model is on consultative leadership style.
2. Through appropriate leadership style, the management provides a climate conducive
towards employee growth, which in turn helps to accomplish organizational goals.
3. The managers, generally, follow McGregor's Theory Y.
4. The manager supports the job performance of the employees.

The benefits of this model are:

• The morale of employees may be high due to social interaction in the organization.
• The employees may come up with innovative suggestions.
• There may be good superior-subordinate relationships in the organization.
• The employees are strongly motivated as their esteem and ego needs are satisfied by
the organization.
Even though, the managers support this model, it may be difficult for them to practice it in
reality at all times.
4. The Collegial Model: The collegial model focuses on the concept of teamwork. This model
is useful in the following situations: When the nature of work is unprogrammed? , When there
is intellectual stimulation? , When the employees enjoy considerable job freedom?
Some of the features of this model are:
1. The focus of this model is on participative leadership style.
2. The management brings a feeling of partnership with employees, as managers are joint
contributors towards the achievement of organizational goals.
3. The employees are committed and dedicated towards their work.
4. The employees take responsibility for their actions.
5. The employees may fulfill their self-actualization need to some extent.
The benefits of this model are making the organizational climate is improved due to team
spirit among the employees, increasing productivity & efficiency and organizational
commitment and job satisfaction among the employees.
The issues of this model are, there may be delay in decision-making due to participative
leadership style and Organization may incur high overhead expenses as the employees may
have to be given incentives on continuous basis.
5. The System Model: This is an emerging OB model. Today, the workforce in the
organization is quite diverse. The employees search for a higher meaning in the organization,
which goes beyond pay package and job security.
Some of the important features of this model are:
1. The employees expect their work environment to be ethical, integrious and
trustworthy. They prefer to experience a sense of community feeling among their
fellow employees.
2. The managers demonstrate a sense of care and compassion towards their subordinates.
The managers express that the employees are a valuable part of the organization.
3. The role of the manager is that of a facilitator of work performance. The manager
provides a conducive environment to achieve of organizational effectiveness.
The Advantages of this model are:
• The employees develop a feeling of belongingness to the organization.
• The employees are self-motivated and they take responsibility for their own actions
and goals.
• The employees are generally interested in fulfilling their higher level needs, such as
social needs, esteem needs and self-actualization.
The Disadvantages of this model are:
• The employees may take undue advantage of care and concern on the part of the
organization and they may make unreasonable demands.
• The employees may become over-confident and may underestimate the skills and
abilities of others.
Conclusions:
1. The OB models are evolutionary in nature. Due to changes in human behaviour and
changes in social conditions, newer OB models developed over a period of time. There
is no one best model for managers to practice in the long-run. The managers may use
the autocratic model or the custodial model or the systems model as the situation
demands. It is a major challenge for the manager to identify the model for its use and
subsequently measure its effectiveness.
2. The OB models are inter-connected with human needs. For instance:
 • The autocratic model emphasizes on subsistence needs or physiological needs of
human beings.
• The custodial model relates to job security needs.
• The supportive model is concerned with esteem needs,
• The collegial model focuses on self-actualization needs.
• The systems model concerns the higher order human needs like affiliation, status and
recognition and self-actualization.
Each model is built upon the accomplishments of the other. In other words, when employees
satisfy their lower level needs (subsistence needs, job security needs, etc.), they are mainly
motivated by higher level needs (self-esteem needs and self-actualization needs). Acceptance
of one OB model by a manager does not mean rejection of other models.
3. In the competitive business environment, the managers should practice the following OB
models for the benefit of the employees as well as the organization:
• The supportive model
• The collegial model
• The systems model
These OB models are more advanced and its usage will increase with better understanding of
organization and human behaviours.
 Unit II
Individual Behaviour
Concept – Personality – Meaning – Big Five Model – Trait Theories of Personality-
Psychoanalytic Theory of Personality -Freud Stages of Personality – Personality Attributes &
Impact on Behaviour in Organizations – Locus of Control, Self-Monitoring - Case Studies.

Individuals form an integral part of an organisation. The behaviour of individuals are

affected by many factors as shown in the following chart:

INDIVIDUAL BEHAVIOUR

Environmental Personal Organisation

Factors Factors Factors

I. ENVIRONMENTAL FACTORS: Environmental factors are those external variables,

such as economic, socio-cultural and political factors, that influence individual behaviour.
These environmental factors are explained as follows:
1. Economic Factors: Individual behaviour is influenced by economic environment.
Economic environment is generally related to those external forces, which have direct
economic effect upon organisations, especially employees. These external economic forces
are:
i) Employment opportunities: When the employment opportunities in the country is less,
then, the individuals in the organisation get motivated by job security. They work with more
commitment and dedication in the organisation.
ii) Wage rates: Salaries or wages is one of the important factor that affects individual
behaviour. Salaries must be just and fair, and must be paid on time. While fixing salaries, the
organisation must take into consideration a number of factors such as:
4. Cost of living
5. Company's ability to pay
6. Conditions prevailing in the market
7. Capability of the employee, etc.
iii) Economic conditions: Economic conditions in the country also influences individual
behaviour in the organisation. For instance, if a country is faced with the problem of recession,
some employees may experience layoff. Employees who experience layoffs frequently are
motivated by job security than any other motivational factors. On the other hand, if a country
experiences boom, employees may be recalled, and they may be provided with better salaries
and incentives.
iv) Technological change: Automation and modernisation have resulted in computerisation
and other technological changes in the organisation. The manpower in the organisation have
been replaced by computers and other such machines. Hence, employees need proper training
to cope with these technological changes.

2. Socio-cultural Factors: The socio-cultural environment is made up of institutions and

other forces that affect society. The socio-cultural factors that affect individual behaviour are:
i) Values: Values carry an individual's ideas as to what is right, good, or desirable. Values
play an important role in influencing individual behaviour by:
• Developing employee attitudes
• Creating employee perceptions
• Motivating employees
ii) Manners and Customs: It is challenging for managers to monitor changes occurring in
manners and customs. Understanding manners and customs is especially important in
negotiations, because interpretations based on one's own frame of reference may lead to a
totally incorrect conclusion.
iii) Religion: Religion is closely associated with the development of cultural values and
affects individual behaviour. Individuals belonging to same religion and locality may form
groups in the organisation. Such groupism may result in biasness and favouritism in the
organisation. Hence, formation of such groups may prove to be unhealthy for organisations.
iv) Education: Education plays a major role in determining individual behaviour. The
qualification of an individual helps to determine factors, such as:
• Job title
• Salary expectations
• Training required
• Promotion opportunities, etc.
3. Political Factors: Political environment is a comprehensive term and includes political
system, political parties, government agencies, and pressure groups that influence and control
individuals and organisations in a society.

i) Political systems: A country can have either Parliamentary (open) form of government or
Absolutist (closed) form of government.
• Parliamentary governments consult with citizens from time to time for knowing their
opinions and preferences.
• Absolutist system dictates government policy without considering citizen needs and
opinions.
ii) Economic systems: Government may have either controlled economic system or free
economic system. In case of controlled economic system, there are fewer educational and
career opportunities as compared to free economic system. This affects the individual
employment needs. Hence, in case of controlled systems, individual may not be motivated to
fulfil his career aspirations.
iii) Political stability: A stable, progressive and healthy political environment is necessary as
it affects individual behaviour. The stability of government attracts foreign investors and
hence increases the increases the employment opportunities for individuals in our country.
The instability of government affects level of employment in a country and the individuals
may have to take up labour-intensive jobs.
4. Regulatory or Legal Environment: The regulatory environment means those laws, rules,
regulations and procedural formalities prescribed by the government to control the planning
and functioning of organisations. There are several laws or acts relating to employer-employee
relations that affects individual behaviour in organisations. Some of the important laws are as
follows':
i) The Factories Act, 1948
ii) The Payment of Wages Act, 1963.
iii) The Minimum Wages Act, 1948.
iv) The Industrial Disputes Act, 1947.
v) The Payment of Bonus Act, 1965.
vi) The Trade Unions Act, 1926.
vii) The Workmen's Compensation Act, 1923.
viii) The Employees' State Insurance Act, 1948.
II. PERSONAL FACTORS: Personal characteristics of an individual, such as age, sex,
education, etc. are important in understanding individual behaviour in organisations.
1. Age: Age is an important variable that affects individual performance. As age advances,
performance and productivity of individual may decline. Old age is associated with poor
health and so there are high chances of absenteeism. Younger employees can adapt and cope
better with changes in organisation as compared to older employees.
2. Sex: Research has shown that there is no significant differences in organisational skills and
abilities between males and females, however, women employees are less encouraged and
less appreciated for their performance. There may be high rate of absenteeism among women
as they have to shoulder family responsibilities along with their job. Women may take career-
breaks to bring up their children.
3. Education: Education affects individual behaviour. Higher level of education increases
individual expectations in terms of increase in income levels and greater alternative sources
of occupational choice. Individuals may seek specialised education in disciplines such as
engineering, medicine, law, accountancy, etc.
4. Abilities: Abilities refer to an individual's capacity to perform various tasks on job. An
individual's ability can be identified by conducting employment tests, such as:
• Intelligence Test
• Projection Test
• General Knowledge Test, etc.
Other personal factors that affect individual behaviour are:
• Marital status
• Number of dependants
• Creativity, etc.

III. ORGANISATIONAL FACTORS

Individual behaviour can be influenced by organisational factors, such as:

1. Physical Facilities: Individual behaviour and performance is affected by physical facilities
in the organisation, such as:
• Lighting and air-conditioning
• Equipments and machines provided
• Ergonomics, etc.
2 Organisation Structure: Organisation structure refers to the pattern of relationships among
individuals and departments in an organisation. Individual behaviour is affected by
organisation structure as it includes:
• Duties and positions of individuals in organisation
• Relationships of individuals in organisation
• Channels of communication, etc.
3. Organisation Culture: Organisational culture refers to a set of values, beliefs and norms
that are shared by the individuals in an organisation. Individual behaviour and performance
can be influenced by organisational culture. Every organisation have their own set of values,
beliefs, practices, customs, etc. It can be relatively stable over a period of time. However,
there can be changes in the organisation culture, with a change in top management's
philosophy.
4. Leadership Behaviour: Every leader have different leadership styles to manage their
subordinates; which affects the behaviour of their subordinates. For instance, consultative and
participative leadership style encourage employees to come up with ideas and suggestions.
However, in case of autocratic and neurocratic leadership styles, employees have to behave
strictly as per the orders and instructions of their leader.
5. Reward Systems: Organisations develop compensation and reward systems for their
employees. The reward systems greatly influence employee behaviour and performance. A
sound reward system results in employee satisfaction.

NATURE OF PERSONALITY: Personality is the combination of physical, mental and

social qualities of a person. The combination of these qualities helps a person to make a
favourable impression on others. Natural qualities, family upbringing, educational level, and
the general environment influence personality of a person.
Stephen Robbins has defined personality "as the sum total of ways in which an individual
reacts and interacts with others."
Personality can be defined in terms of characteristics (traits) of the individual which are
directly observable in his behaviour or in terms of characteristics, such as unconscious
processes, which are inferred from his behaviours. It can also be defined in terms of the ways
the individuals interact with other individuals or in terms of the roles an individual has
ascribed to him and adopts for himself in his functioning in the society. Personality represents
those structural and dynamic properties of an individual or individuals as they reflect
themselves in characteristic responses to situations.
Gordon Allport defined personality as, "Personality is the dynamic organisation within the
individual of those psychophysical systems that determine his characteristic behaviour and
thought."

The above definition is explained as follows:

Organisation: It points out that personality is a sum of different traits held together and each
trait is related to the individual. A healthy person shows a high degree of organisation; whereas
an abnormal personality shows disorganisation.

Dynamic: It refers to the changing nature of personality. As an individual grows, his physical
and psychological characteristics develop. Hence, from time to time and from situation to
situation, there are changes in the structure of the organisation.

Psychophysical Systems: It consists of habits, attitudes, emotions, sentiments, motives and

beliefs, all of which are psychological but have a physical base in an individual.

Determine: It emphasizes the motivational role of the psychophysical systems. Once an

attitude, belief, habit, or some other element of a psychophysical system has been aroused by
a stimulus, either from the environment or within the individual, it provokes adjustive and
expressive acts by which the characteristic forms of expression of that individual are known.

Characteristic: It refers to the distinctiveness or uniqueness of the person's behaviour as an

expression of the pattern of his particular psychophysical systems.

Behaviour and Thought: It refers to the patterns of behaviour, determined by the

psychophysical systems within the individual, are not aimless, but are directed toward the
specific goal enabling an individual to live in the physical and social environments.

People often confuse personality with character. The two terms are not synonymous and
hence, cannot be used interchangeably. Character implies a moral standard and involves a
judgement of value. Character refers to the individual's behaviour that conforms to ethical
standards.
A person is said to have a good character if he executes those acts which are expected by the
society and refrains from those which are forbidden in the society. Character may be referred
as behaving in accordance with the social expectations.

An individual who shows ability to persevere in a course of action despite distractions, to keep
focused as on a long-term goal rather than seeking immediate pleasure, to sustain tensions
rather than releasing them in impulsive behaviour is often described as having strong
character.

DETERMINANTS OF PERSONALITY

There are several internal and external factors that influence the personality of a person. The
important determinants of personality are as follows:

1. Biological Factors: They include physical structure, facial expression, colour, etc., which
are normally inborn. However, exercises, plastic surgery, etc., may help to change the physical
structure of a person.

2. Home Environment: Parents and other family members can influence the personality of a
person, especially the social behaviour of a person. Well-behaved parents and elders can act
as role models to young ones in the family. Also, when there is peace and harmony in the
house, people tend to be less aggressive and have cool temperament.

3. External Environment: The environment in which a person is brought up also affects the
personality of a person. Apart from home environment, the external environment, i.e., school,
friends circle, workplace, religious place, etc., can influence the personality of a person.
(a) Educational Institutions: Educational institutions, generally promote good values and
beliefs among the students. Well-behaved and disciplined students inculcate good personality
traits, whereas, some hostile students may develop negative personality traits. Some students
consider teachers as their role model.

(b) Friends: Friends circle play an important role in determining individual personality.
Friends having good qualities like hardworking, sincere, etc. reflect positive personality traits
of an individual. On the other hand, friends having poor qualities like aggressiveness, hostility,
etc. reflect negative personality traits.

(c) Organisational Factors: Organisational factors like organisational culture, job factors,
co-workers influence or reinforce personality traits. If the work environment is just and fair,
then, the employees develop positive personality traits. However, if the work environment is
unjust, then, the employees may become aggressive and hostile. In extreme cases, there may
be a possibility of workplace violence.
d) Religious Factors: Normally, people who strongly and sincerely believe in religion (not
fundamentalists), are more peaceful, less hostile, and less aggressive as compared to others.
However, sometimes, atheist reflect well-balanced personality.

4. Situations: Different situations in which a person is exposed to, also influences the
personality of a person. Negative situations may have an adverse impact on the personality of
a person, whereas, positive situations may have a positive impact on the personality of a
person. For instance, when a person is exposed to hostile situations such as communal riots,
in such a case, it can have adverse impact on the personality of a person.

PERSONALITY TRAITS

According to Stephen Robbins, personality traits can be referred as enduring characteristics

that describe an individual's behaviour. An individual possesses many personality traits. Some
of the concepts of personality traits are: the Big Five model, locus of control, self-esteem, type
A/type B personality, risk-taking, Machiavellianism and self-monitoring.

1. THE BIG FIVE MODEL: In recent years, researchers have supported that there are five
basic dimensions, which consists of human personality. This five-factor model of personality
is called as "The Big Five Model". The Big Five factors are: o

i) Agreeableness: It refers to the ability of a person to get along with others. It is a personality
dimension that describes someone who is good-natured, co-operative and trustworthy. People
who score low on agreeableness are selfish, self-centred, disagreeable and antagonistic.
ii) Conscientiousness: This personality dimension describes someone who is responsible,
self-disciplined, dependable, persistent, organised and achievement-oriented. A person
scoring low on conscientiousness is disorganised, irresponsible, and unreliable and lacks self-
discipline. Employees who score high on conscientiousness develop good job knowledge and
hence it results in better job performance.

iii) Emotional stability: If refers to the ability of a person to cope with stress. A person
showing positive emotional stability is calm, self-confident and secure. However, a person
showing negative emotional stability is more nervous, depressed and insecure.

iv) Extroversion: It reflects a person's level of comfort with others in the organisation.
Extroverts are friendly, sociable, lively, gregarious, aggressive and expressive. On the other
hand, introvert personalities experience and process their thoughts and ideas within
themselves. They avoid social contacts, are less social, and enjoy a quite and solitude life.
Extroverts can perform well in managerial and sales position as it involves higher level of
social interaction.

v) Openness to experience: This personality dimension is characterised in terms of

imagination, sensitivity, and curiosity. Extremely open people are imaginative, creative, and
curious and have a great sense of aesthetics. However, people who score low on openness to
experience are less creative and curious, are conventional and prefer doing familiar jobs rather
than challenging ones.

2. LOCUS OF CONTROL: Locus of control is another personality attribute that explains

individual behaviour in organisations. Locus of control refers to the extent to which
individuals believe that they can control events affecting them.

Internal locus of control refers to an individual's belief that events are within their control.

External locus of control refers to an individual's belief that events are beyond their control.

Internals have more control over their behaviour and they try to control their environment.
They are characterised as follows:
• Highly motivated
• Less absenteeism
• More job satisfaction
• Analyse the situation before decision-making
 • Take initiative to do a job
• Independent and reliable
• Achievement-oriented

Externals get influenced by others easily. They possess the following characteristics:

• Less involved in their jobs

• Low job satisfaction
• More alienated from work settings
• High absenteeism
• Low on motivation
• Follow directions

3. SELF-ESTEEM: Self-esteem is one of the personality traits that affect individual

behaviour in organisations. It refers to the feeling of like or dislike towards oneself. The degree
of self-esteem differs from person to person. People with high self-esteem have the following
characteristics:

• Ability to succeed at work

• Ability to take more risks in job selection and choose unconventional jobs
• Experience more job satisfaction
• Sets challenging goals for themselves
• People with low self-esteem are characterised as follows:
• Easily get influenced by others' opinion
• Depend on others for recognition and appreciation i.e. lacks self-motivation
• Choose conventional jobs
• Fear of failure
• Conforms to beliefs and behaviours of those they respect and admire
• Engages in pleasing others
• Sets low goals for themselves
4. TYPE A AND TYPE B PERSONALITIES: Personality traits can also be identified by
Type A and Type B personalities

TYPE A PERSONALITY: Type A people possess the following characteristics:

• Hardworking and impatient

• Sense of time urgency
• Aggressive and competitive.

TYPE B PERSONALITY: Type B people are contrast to Type A. They have characteristics
such as:

• Easy-going and sociable

• Free from time urgency
• Non-competitive
5. RISK TAKING: People differ in their willingness to take risks. Some managers take risks
by making rapid decisions, without considering adequate information and facts. On the other
hand, some managers avoid by making It is important to note that research indicates same
accuracy in decision-making by high risk-taking managers as low risk-taking managers.

The willingness to take risks differ from one individual to another, one job to another, and
from one organisation to another.

6. MACHIAVELLIANISM: In the sixteenth century, Niccolo Machiavelli wrote about

organisational power and politics. The personality trait of Machiavellianism (Mach) is named
after him. An individual with high Mach is pragmatic, maintains emotional balance, and
believes that ends can justify means.
High Machs have the following attributes as compared to low Machs:
• More manipulative
• Possess high spirit to win
• Cannot be easily influenced by others
• Uses more persuading tactics
It has been found out that high Mach can be successful in case of the following situations:
i) When they interact face-to-face rather than indirectly.
ii) When there are least rules and regulations, thus leaving scope for improvement.

High Machs may be effective where bargaining skills are required or where an effort provides
substantial rewards.

High Machs can be good employees, depends on the type of job and ethical implications
involved in evaluating their performance.

7. SELF-MONITORING: Self-monitoring is another important personality trait that affects

individual behaviour in organisations. It refers to an individual's ability to adjust his or her
behaviour to external, situational factors, Individuals high in self-monitoring can adapt
themselves to external factors. They can behave differently in different situations. They can
disguise themselves and may be different as public self and private self. They can play
multiple roles. Individuals low in self-monitoring cannot disguise themselves and they display
their true dispositions and attitudes in every situation. They show high behavioural
consistency between who they are and, what they do,

PERSONALITY AND OB

Personality may be understood as the characteristic patterns of behaviour and modes of

thinking that determine a person's adjustment to the environment. Personality is an important
factor that influences organisational behaviour. Organisational Behaviour studies human
behaviour at three levels:

• Individual / Employee level

• Group level
• Organisation level
I. Role of Personality at Individual/Employee Level

Personality plays an important role in employee behaviour. Employees having healthy

personality engage themselves in constructive behaviour. Constructive behaviour of
employees result in:

1. Job Satisfaction: Employees possessing healthy personality traits experience job

satisfaction. They are self-motivated and do not depend on external factors for motivating
them to perform their jobs. The employees work with commitment and dedication.

2. Higher Performance: Employees experiencing job satisfaction put greater efforts, which
results in higher performance. Employees who are ambitious and want to achieve challenging
goals, work hard to the best level of performance.

3. Suggestions to Management: Employee with healthy personality not only works for self-
interest but also for the well-being of the organisation. He may provide suggestions to
management that may be very useful in improving organisational performance.

4. Good Rapport: Employees having assertive behaviour develop good rapport with others.
Assertive behaviour have characteristics, such as:
• Being honest and confident
• Self-respecting and making others feel valued
• Neither humiliating others nor seeking pity from them.
Employees reflecting negative personality traits engage themselves in destructive behaviour.
Destructive behaviour of employees result in:

5. Absenteeism and Tardiness: Employees having negative attitude towards the job remain
absent frequently. Absenteeism refers to the failure on the part of the employees to report to
work. Absenteeism creates a lot of problem to the organisation.

Employees with negative personality traits may show their job dissatisfaction through
tardiness. Tardiness means late report to work. Appropriate managerial action should be taken
to address the problems of absenteeism and tardiness in the organisation.
6. Stress: Negative personality traits of an employee may result in destructive stress. It is
unhealthy for an employee as he may exhibit erratic behaviour. He may lose his ability to cope
with stress and may indulge into alcoholism and drug addiction. Stress may also result in
workplace violence - may be verbal aggression and/or physical aggression.

7. Employee Turnover: Dissatisfied employees may decide to leave the organisation and
may join elsewhere due to their negative personality attributes. These employees are not self-
motivated.

II. Role of Personality at Group Level

Personality of group members, as a whole, helps in determining group behaviour. Good

personality of group members fosters healthy group behaviour and vice-versa.

1. Team Spirit: Positive personality traits of group members result in group cohesiveness.
Group members co-operate with each other to achieve group objectives. Hence, constructive
group behaviour fosters team spirit in organisations.

2. Boosts Morale: Employees having positive personality characteristics in a group helps in

higher group performance. This increases the morale of group members. A group member
may act as role model for other group members. For instance, a group member has played an
instrumental role in achieving group objectives, which is looked upon by the others in the
group.

3. Higher Participation: Participation is the mental and emotional involvement of people in

group situations. Friendly and sociable group members seek greater participation in
contributing to group goals.

4. Higher Productivity: Employees with greater commitment and dedication come together
for group decision-making. Group decision-making helps to achieve higher productivity in
the organisation.

5. Opportunity to be Leaders: Group members possessing leadership skills and qualities get
an opportunity to become leaders of their group. The group leaders can negotiate and bargain
with other groups and organisation in order to serve the interest of their group members.

III. Role of Personality at Organisational Level

Personality characteristics are important in influencing organisational behaviour. The factors

included in OB are:
1. Organisational Culture: Employees having positive personality traits adapt to the
organisational culture. However, employees having negative personality traits may go hostile
and aggressive to adjust to organisational culture.

2. Organisational Conflict: Employees having unbalanced personality characteristics may

experience the problem of conflict at the following levels:

• Intrapersonal conflict
• Interpersonal conflict
• Intergroup conflict

3. Status Patterns: Status refers to social rank of a person in a group, organisation or society.
Employees may have personal qualities and abilities that help to achieve certain status in the
organisation. Achieved status refers to the status achieved by an employee through personal
efforts or skills, qualities, experience, etc. Ambitious employees seek personal status in the
organisation.
4. Personal Power: Power is the ability to influence other people and events. Employees may
possess personal power. Personal power is also called as 'power of personality'. It is the
personality of a person that attracts followers. The followers admire their leaders and may
even try to imitate them in terms of behaviour, dress, and in other aspects.
5. Life Positions: There are four life positions:
• I am not OK - You are OK
• I am not OK - You are not OK
• I am OK - You are not OK
• I am OK - You are OK
Out of the four life positions, the ideal one is "I am OK - You are OK". This life position
exhibits healthy personality attributes of an individual. Employees exhibiting this life position
engage in productive conflict and constructive communication.
 Unit III
Organisational Communication:
Importance – Corporate Communication -Need, Importance - Techniques of Organisational
Communication – Johari Window – Transactional Analysis – Life Positions.

CORPORATE COMMUNICATION: SCOPE AND RELEVANCE

INTRODUCTION:
A corporate organisation is formed by a group of people, has a separate legal entity, and
perpetual succession, such as companies, statutory corporations, or co-operatives. Usually
medium or large in size, these organisations require extensive communication internally—
through phones, meetings, emails, memos, etc.—to convey instructions, coordinate work,
solve problems, and achieve objectives, and externally—with customers, vendors, investors,
government agencies, etc.—to negotiate, coordinate, and build cooperation. Corporate
communication involves managers, supervisors, and executives exchanging views internally
and negotiating externally to fulfil organisational goals. In modern global corporations, this
function—once called public relations—now plays a crucial role in reputation management,
media relations, crisis communication, internal communication, and corporate responsibility.
Led by the chief communication officer, it has gained prominence due to its strategic
importance and often reports directly to the CEO.

DEFINITION OFCORPORATE COMMUNICATION:

(1) Jackson defined Corporate Communication as, "the total communication activity
generated by a company to achieve its planned objectives.

(2) According to Joep Cornellisen, "Corporate Communication is a management function

that offers a framework for the effective coordination of all internal and external
communication with the overall purpose of establishing and maintaining favourable
reputations with stakeholders' groups upon which the organisation is dependent."

(3) According to Joseph Fernandez, "Corporate Communication is a long-term strategy

initiative taken by a corporate organisation to communicate the core brand and scored
messages to a spectrum of audiences in a globalised market environment. At its core corporate
communications is very simple, the way communicates." a corporate

MEANING OF CORPORATE COMMUNICATION:

Corporate communication is a management function of department, like marketing, finance

or operations, dedicated to the dissemination of information to key constituencies, the
execution of corporate strategy and the development of messages for a variety of purposes for
inside and outside the organization It is a set of activities involved in managing and
orchestrating all internal and external communications aimed at creating favourable point of
view among stakeholders on which the company depends. It is the messages issued by a
corporate organization, body, or institute to its audiences, such as employees, media, channel
partners and the general public. Organizations aim to communicate the same message to all
its stakeholders, to transmit coherence, credibility and ethic.

Corporate Communications help organizations explain their mission, combine its many
visions and values into a cohesive message to stakeholders. The concept of corporate
communication could be seen as an integrative communication structure linking stakeholders
to the organization. All companies including non-commercial bodies are interested in
corporate communication for building their images and reputations, besides maintaining
relationships with the stakeholders.

CHARACTERISTICS /FEATURE / NATURE OF CORPORATE

COMMUNICATION:
(1) Formal Communication: Most of the corporate communications are formal in nature.
Orders, instructions, information, suggestions, etc. are sent, maintaining formal procedure in
a systematic way. It has to pass through several organisational stages.

(2) Informal Communication: The size and structure of a corporate organisation being large
and complex, informal communication or grapevine communication among different groups
of employees takes place side by side with formal communication.

(3) Internal and External Communication: Exchange of information with a large number
of people within and outside the business is required in corporate communication. Internal
communication with the managers and employees, and external communication with the
customers, vendors, distributors, competitors, investors, government offices, etc. are made.

(4) Oral and Written Communication: While oral communication is used for closer and
internal communication with the employees, written communication is made with the
outsiders and distant people.
(5) Wide Coverage: Corporate organisations are large and a wide range of people are required
to be covered in communication, People within the organisation at different levels in different
departments and a large number of people outside the organisation are required to be
communicated within the course of running the activities of the organisation.
(6) Means of Communication: Phones, face-to-face conversation, e-mail, fax, telegrams,
memos, website, internet, video conference, etc. are used as the mediums or channels of
corporate communication.
(7) Feedback: As in the case of other communication, feedback is an essential element of
successful corporate communication. It is a two-way process of sending information and
receiving response. Through feedback the sender can know the reaction' of the recipient and
take necessary action.
(8) Long-term System: Corporate organisation has a perpetual existence. So, corporate
communication is not a temporary arrangement. It is a long-term system process. or
Communication is carried out continuously through a stable process.
(9) Continuous Flow of Communication: In a corporate organisation, flow of
communication is continuous and uninterrupted; continuous due to the organisation's
perpetual existence, and uninterrupted owing to following the formal or official channel.
(10) Reliable Information: In a corporate organisation, information is collected through
various sources and decisions are taken after necessary scanning, scrutinizing, etc. to make
the information dependable and correct.

SCOPE OF CORPORATE COMMUNICATION:

(1) Create an identity: Many successful companies in India like the Tata, Reliance, and
Kirloskar group have created their own identity as an organisation for their people. In the
current scenario, where every day, the function of corporates are complex and unvivid, finding
an audience for their products, services or companies determine the growth of an organization.
Therefore, a company gives preference to use the tools of communications wisely and timely.
The corporate communicator/public affairs manager/public relation officers/media liaison
officer/media advisor, and corporate communication manager, they all ensure that their
corporate connects build an audience group for the growth of an organization.

(2) Build a brand: In their day-to-day affairs every corporate interacts with the internal and
the external audiences. The internal audiences who may be in form of shareholders,
stakeholders or employee of the company carry the pride of association with an organization
wherein the external audiences are crucial for the future growth of a brand. To balance both
the audiences, corporate communication practitioner needs to follow the simple approach in
mind.
(3) Manage the reputation: Today media plays a vital role in either creating a good
reputation or damaging the reputation of an organization. Nowadays, the media intervention
is very high. The rumour spreads and impacts on organization's reputation, therefore the
corporate communicate practitioner manage the task of building the organization reputation
and keep its prestige intact.
(4) Develop a communication model: No organization will make progress in their isolation
approach. It is crucial to communicate with their people on a timely basis. An effective
communication model will help an organization to build a strategy which will be beneficial
for them in a long run.
The responsibilities of corporate communication are:
• To promote the profile of the "company behind the brand" (corporate branding).
• To minimize discrepancies between the company's desired identity and brand features.
• To delegate tasks in communication.
• To formulate and execute effective procedures to make decisions on communication
matters.
• To mobilize internal and external support for corporate objectives.
• To coordinate with international business firms.

Internal Functions of Corporate Communications: A common aspect of internal corporate

communications is employee relations ensuring accurate and consistent communication with
employees. This communication can be both formal and informal. The employee handbook,
memoranda and employee reviews are examples of formal communications; personal ad hoc
conversations would be informal or communications. Regular well-executed and employee
communications is particularly critical during tumultuous times for an organization to ease
anxieties, boost morale and inhibit inaccurate information that may trickle outside the
organization.
External Functions of Corporate Communications: Corporate communications serve
several audiences and purposes external to the organization. Companies need to communicate
effectively to the media, so they engage public or media relations professionals. If
organizations need to liaise with government agencies or if they lobby, they need government
relations experts. Public companies need to employ investor relations specialists. Some
companies may have specific individuals to handle relations in the community, such as
charitable or volunteer works.

IMPORTANCE OF CORPORATE COMMUNICATION: Communication is vital in the

corporate world, growing in importance with increasing business complexities. It enables
coordination within the organisation and links with the outside world, helping motivate
employees, facilitate group performance, maintain discipline, resolve misunderstandings, and
ensure work quality. Externally, it connects with customers, vendors, investors, government
bodies, and international partners—essential in global business. Corporations use
communication to present goods and services, report changes, motivate staff, coordinate
actions, maintain client relations, conduct market research, and manage cross-cultural
interactions. Internal communication uses phones, email, memos, and verbal exchanges, while
external communication relies on phones, letters, websites, video conferencing, and more.
Modern technology has sped up the process, giving companies a competitive edge by avoiding
delays in decision-making.
The Importance of Corporate Communication may be described as follows:
(1) Internal Co-ordination: Corporate organisation being large in size, division of work and
specialisation in activities are the characteristics of such organisation. To fulfil the objectives
of the organisation, co-ordination among the employees is necessary and to co-ordinate
various activities communication is essential. Communication helps to co-ordinate such
activities and to develop co-operation.
(2) Connecting Link with the Outside World: In a corporate organisation, communication
with the external people, such as customers, vendors, investors, competitors, government
departments, etc. are essential. Even connecting links with the foreign counterparts and
centres are necessary for proper functioning of the organisation.
(3) Motivation: Communication helps to motivate the employees to obey the orders and
directives of the management authority. The feedback of the employees also enlightens the
managers. The interaction between the managers and the employees improves the relation
between them and encourages all to devote themselves fully to achieve the objectives of the
organisation.
(4) Efficient Management: George Terry's remark that communication works as a lubricant
to increase the efficiency of management is applicable to corporate organisations more
appropriately. Communication supplies the managers and employees with the information,
co-ordinates and motivates the employees. This result in co-operation and better performance,
resolves conflicts, builds confidence and ultimately develops efficient management. The
managers, supervisors and executives get instructions, orders, messages, etc. from their
superiors through communication, become aware of their duties and responsibilities and exact
performance from their subordinates. Thus, communication stimulates efficient management.
(5) Decision-making and Implementation: The success of any corporate organisation
depends largely upon decision-making. Right decision-making, again, depends upon correct
and timely information which is obtained through communication. Again, implementation of
the decision requires proper communication. The managers convey the procedure of
implementing the decision through communication channels and evaluate the work of the
employees. Thus, corporate communication has a meaningful role in decision-making and its
implementation.
6) Leadership: The manager communicates orders and instructions to the subordinates, who,
in turn, carry out the instructions and sometimes send feedback in the form of suggestions,
grievances and complaints. The manager tries to remove the inconvenience as far as possible.
The entire process establishes the basis of leadership. Lack of communication creates distrust,
doubts and misunderstanding among the subordinates. Proper communication helps to remove
them and create an environment of mutual co-operation, trust and dependence and, ultimately,
achieve acceptance of the leadership of the official head.
(7) Corrective Measures: In a corporate organisation the number of employees is large.
Everybody's performance may not achieve required standard and some corrective measures
may become necessary. Such measures against the employees not performing their duties
properly can also be taken through communication. Communication thus protects the interest
of the organisation.
(8) Speed: Speed is the key word of today's corporate world. Modern technologies have made
communication faster. Now, no one has to wait for weeks or months for a reply letter. Email,
fax, internet, etc. have made communication almost instant. Immediate flow of information
helps in taking correct decision in time and anticipates solution to a probable problem.
(9) Discipline and Peace: Maintenance of discipline in large corporate sector is difficult.
Control over a large number of managers and employees is not an easy task. But regular
communication (Two-way) between the management authority and the workers creates a
healthy human relation and sense of co-operation, assistance and unity. Thus, peace is
established and discipline is maintained within the organisation.
(10) Training: Communication is necessary in imparting training to the managers,
supervisors, executives and general employees to upgrade their knowledge and skill of
performance in order to meet the needs of the changing corporate world.
This may include training in the field of science and technology, up-gradation
technical know-how, development of management skill, and even a training in learning a
language for communication.
Transactional Analysis: It is a social psychology and a method to improve communication.
The theory outlines how we have developed and treat ourselves, how we relate and
communicate with others, and offers suggestions and interventions which will enable us to
change and grow. Transactional Analysis is underpinned by the philosophy that, People can
change and we all have a right to be in the world and be accepted
Berne E’s Transactional Analysis: IPC is a contractual approach: A contract is "an explicit
bilateral commitment to a well-defined course of action" Which means that all parties need to
agree:
● why they want to do something
● with whom
● what they are going to do
● by when
● any fees, payment or exchanges there will be
Transactional Analysis: First Order Structural Model: Berne devised the concept of ego
states to help explain how we are made up and how we relate to others. These are drawn as
three stacked circles and they are one of the building blocks of Transactional Analysis. They
categorize the ways we think, feel and behave and are called Parent, Adult, and Child. Each
ego state is given a capital letter to denote the difference between actual parents, adults and
children.

Franklin Ernst‘s OK Modes Model

Life positions in Franklin Ernst‘s OK Modes Model are basic beliefs about self and others,
which are used to justify decisions and behaviour.
Effective mode: A communication is likely to achieve the intended response or result.
Information is received, necessary action(s) follow and good relationships are maintained or
developed communication - an I'm OK, You're OK position. Each of the effective Modes,
dependent on the Mindful Process, communicates "I'm OK and You're OK".
Structuring Mode: This is the boundary setting Mode, offering constructive criticism. In this
Mode we are caring whilst firm.
Supporting Mode: When in this Mode we are affirming and considerate.
Co-creating Mode: From this Mode we develop ways to help us live and work with others.
Playful Mode: This is the creative, fun loving, curious and energetic Mode. We can confront
people playfully as a way of dealing with a difficult situation. This can diffuse a potential
problem and get the message across.
Ineffective Mode: The intended communication is not understood the person receiving the
communication is themselves invited into a "not OK" position.
Criticizing Mode: communicates a "You're not OK" message. When in this Mode you will
believe that others cannot do things as well as you can, or perhaps only certain chosen people
can. If you lead from this position you are unlikely to develop a loyal supportive team or
culture.
Inconsistent Mode: As a leader we might be inconsistent in our style - changing our behaviour
in unpredictable and apparently random ways. This is not helpful for followers (or leaders).
Interfering Mode: communicates a "You're not OK" message. When in this Mode the person
will often do things for others which they are capable of doing for themselves. People who find
it difficult to delegate might be in this Mode.
Reckless Mode: In this Mode we run wild with no boundaries. Here we express a "You're not
OK" message. At work we tend not to take responsibility for our actions and are unlikely to
progress as we need a great deal of management in order to focus our energy and keep
boundaries.

Joseph Luft’s Johari Window:

Johari window is a concept model for self-awareness, personal development, and group
development and understanding relationship. This model is a simple and useful tool for
understanding and training self-awareness, personal development, improving communications,
interpersonal relationships, group dynamics, team development and intergroup relationships.
It is developed by American psychologists Joseph Luft and Harry Ingham in the 1950's, calling
it 'Johari' after combining their first names, Joe and Harry.

The Four Johari Window Perspectives:

1. Open area, open self, free area, free self, or 'the arena‘: what is known by the person about
him/herself and is also known by others.
2. Blind area, blind self, or 'blind spot‘: what is unknown by the person about him/herself but
which others know.
3. Hidden area, hidden self, avoided area, avoided self or 'façade’: what the person knows
about him/herself that others do not know.
4. Unknown area or unknown self: what is unknown by the person about him/herself and is
also unknown by others.
‘Open self/area‘, 'free area‘, 'public area', 'arena‘:
1. Information about the person - behaviour, attitude, feelings, emotion, knowledge,
experience, skills, views, etc. – known by the person ('the self') and known by the team
('others').

2. The aim in any team is to develop the 'open area' for every person, because when we work
in this area with others we are at our most effective and productive, and the team is at its most
productive too

3. The open free area, or 'the arena‘- the space where good communications and cooperation
occur, free from distractions, mistrust, confusion, conflict.
‘Blind self' or 'blind area' or 'blind spot‘: what is known about a person by others in the
group, but is unknown by the person him/herself

1. Could also be referred to as ignorance about oneself, or issues in which one is deluded

2. Not an effective or productive space for individuals or groups

The aim is to reduce this area by seeking or soliciting feedback from others and thereby to
increase the open area, i.e., to increase self-awareness. Team members and managers take
responsibility for reducing the blind area - in turn increasing the open area - by giving sensitive
feedback and encouraging disclosure.

‘Hidden self' or 'hidden area' or 'avoided self/area' or 'facade': Represents information,

feelings, etc., anything that a person knows about him/self, but which is not revealed or is kept
hidden from others. It also include sensitivities, fears, hidden agendas, manipulative intentions,
and secrets - anything that a person knows but does not reveal.
Relevant hidden information and feelings, etc., should be moved into the open area through the
process of 'self-disclosure' and 'exposure process.' Organizational culture and working
atmosphere have a major influence on team members’ preparedness to disclose their hidden
selves. The extent to which an individual discloses personal feelings and information, and the
issues which are disclosed, and to whom, must always be at the individual's own discretion.

‘Unknown self‘, 'area of unknown activity‘, 'unknown area'

 1. Information, feelings, latent abilities, aptitudes, experiences etc., that are unknown to the
person him/herself and unknown to others in the group
2. Can be prompted through self-discovery or observation by others, or through collective or
mutual discovery
3. Counseling can also uncover unknown issues
4. Uncovering 'hidden talents' - that is unknown aptitudes and skills, not to be confused with
developing the Johari 'hidden area' .

Managers and leaders can create an environment that encourages self-discovery, and to
promote the processes of self-discovery, constructive observation and feedback among
team members.

Managers and Leaders: Johari Window is helpful for managers and leaders in operating
methods and integrating management. It improves interpersonal communication. By
increasing the ‘open area’ most of the interpersonal conflict can be reduced.

1. Play an important role in facilitating feedback and disclosure among group members, and in
directly giving feedback to individuals about their own blind areas

2. Also have a big responsibility to promote a culture and expectation for open, honest,
positive, helpful, constructive, sensitive communications, and the sharing of knowledge
throughout their organization

3. Encouraging the positive development of the 'open area' or 'open self' for everyone is a
fundamental aspect of effective leadership.

OBJECTIVES

Q-1) Select the most appropriate answer from the options given below

a) OB is concerned with the behaviour of individual with an organisation known as

____________.
(i) Individual behaviour (ii) Interpersonal behaviour (iii) Inter group behaviour
(Iv)Interorganisational behaviour

b) OB focuses ______________ on people

(i) personally (ii) therolly (iii) Primarily (Iv) Secondarily

c) The ____________________ attempt to study and understand individual behaviour.

(i) Sociologist (ii) Neurologist (iii) Psychologist (Iv) Endocrinologist

d) The ___________________ Model lays emphasis on power.

(i) Supportive (ii) Collegial (iii) Custodial (Iv) Autocratic

e) The ___________environment is made up of institutions and other forces that affect society.
(i) Regulatory or Legal (ii) socio-cultural (iii) Political (Iv) Economic
 f) ____________ include physical structure, facial expression, colour, etc., which are normally
inborn.
(i) Religious Factors (ii) External Environment (iii) Biological Factors (Iv) Home Environment
g) ____________ refers to the ability of a person to cope with stress.

(i) Openness to experience (ii) Conscientiousness (iii) Emotional stability (Iv) Agreeableness
h) The scope of corporate communication are ________________.
(i) Build a brand (ii) Manage the reputation (iii) Create an identity (Iv) All of the above

i) Johari window is a concept model for ______________.

(i) group development (ii) personal development (iii) self-awareness (Iv) All of the above

j) ___________ is a social psychology and a method to improve communication.

(i) channel analysis (ii) stakeholder analysis (iii) Johari window (Iv) Transactional Analysis

k) _________________as a behavioural discipline studies people in relation to their fellow human

beings.
(i)Anthropology (ii) Psychology (iii) Sociology (iv) Social Psychology
l) The ____________ emerged due to the employees’ feelings of insecurity, frustration and
aggression towards their managers.
(i) custodial model (ii) Autocratic Model (iii) Collegial Model (iv) Supportive Model

m) The ____________ environment is made up of institutions and other forces that affect society.
(i) Political (ii) socio-cultural (iii) Regulatory or Legal (iv) Economic

n) Individual behaviour and performance is affected by physical facilities in the organisation, such
as: _______________.
(i) Lighting and air-conditioning (ii) Equipment’s and machines provided (iii) Ergonomics (iv) All of
the above

o) Individual behaviour is affected by organisation structure as it includes: __________________.

(i) Duties and positions of individuals in organisation (ii) Relationships of individuals in organisation
(iii) Channels of communication (iv) All of the above

p) _______________ refers to the changing nature of personality.

(i) Dynamic (ii) Psychophysical Systems (iii) Determine (iv) Behaviour and Thought

q) ____________ include physical structure, facial expression, colour, etc., which are normally
inborn.
(i) Home Environment (ii) Biological Factors (iii) Religious Factors (iv) Organisational Factors

r) ________________ reflects a person's level of comfort with others in the organisation.

Extroverts are friendly, sociable, lively, gregarious, aggressive and expressive.
(i) Emotional stability (ii) Extroversion (iii) Agreeableness (iv) Conscientiousness

s) ____________ mode we run wild with no boundaries.

(i) Reckless (ii) Interfering (iii) Inconsistent (iv) Ineffective
t) PAC stands for _____________________.
(i) Parent Ego State (ii) Adult Ego State (iii) Child Ego State (iv) All of the Above

Q.2) Read the following case study carefully and answer the questions given below:

A) Technosavy, a software development company, has recently seen a drop in employee

productivity. The CEO brings in a new manager, Ms. Riya, known for her democratic leadership
style. She encourages team discussions, invites feedback, and involves employees in decision-
making. Within a few months, the morale and performance of the team improve noticeably.
Questions:
1. What type of leadership style does Ms. Riya use?
2. How did her leadership style impact the organization?
3. Mention one advantage and one disadvantage of the democratic leadership style.

B) In the sales department of Alpha Traders, two team members, Sohan and Tina, frequently argue
over client management issues. Their manager, Mr. Arun, notices it’s affecting the team's overall
performance. He decides to address the issue by holding a mediation session, allowing both parties
to express their concerns and helping them find common ground.
Questions:
1. What type of conflict is seen in this case?
2. How did the manager handle the conflict?
3. Why is it important to resolve workplace conflicts?