UNIT - III ORGANIZATIONAL CULTURE

INTRODUCTION –
Organizational Culture refers to the shared values, beliefs, attitudes, and behaviors that characterize a
company or institution. It encompasses the norms and practices that shape how individuals within the
organization interact with each other, approach their work, and perceive the organization's mission and
objectives. Organizational Culture is often considered the personality of a company, influencing
employee engagement, decision-making processes, and overall performance.
Organizational culture is the collective behaviour of people who form part of a firm and the senses they
attach to their actions. It entails the values, visions, norms, working language, systems, symbols, beliefs,
and habits. It embodies a firm's values, traditions, and interactions.
COMPONENTS OF ORGANIZATIONAL CULTURE
o Values: Values are the beliefs that a firm holds dear. They are the basis of the firm's culture,
and they guide the way that employees behave.
o Beliefs: Beliefs are the beliefs that a firm makes about the world. They are often assumed, but
they have a powerful influence on the way that employees think and act.
o Norms: Norms are the unspoken rules that govern how people behave in a firm. They tell
workers what is hoped of them and what is not.
o Symbols: Symbols are the things that represent the firm's culture. They can be anything from
the firm logo to the way that workers dress.
o Language: Language is the way that people express themselves in a firm. It can be used to
support the firm's culture or to doubt it.
TYPES OF ORGANIZATIONAL CULTURE
1. Hierarchical Culture: Hierarchical Culture can be characterized by the rigid organizational
structure where decision-making is centralized, communication goes from the top down, and strict
adherence to the prescribed procedure is encouraged. The power is concentrated in the hands of the
most senior leaders. This can provide the stability and efficiency needed to compete in some markets,
but it can be very inflexible.
2. Clan Culture: A clan culture involves the organization functioning as an extended family. A clan
culture is one in which employees work together as they support one another with a touch of a feeling
of belongingness. The leaders work as coaches as they promote the spirit of open communication and
trust. Members of the culture are motivated as they feel that they are being appreciated by their
leaders.
3. Adhocracy Culture: Adhocracy Culture is a kind of corporate culture that focuses on innovation,
flexibility, and creativity. It is a dynamic and entrepreneurial culture, typical for organizations that
operate in a stable environment with little hierarchy. Adhocracy Culture is characterized by a dynamic
and entrepreneurial place where employees are encouraged to take risks for the benefit of the
organization. This culture is focused on external flexibility, with employees encouraged to challenge
the prevailing situation and innovate .
4. Market Culture: A market culture is associated with the organization’s focus on competitiveness,
results, and goal achievement. In a market culture, organizations have a strong external orientation
and are actively focused on meeting needs and exceeding competitors. Employees are motivated by
metrics, goals, and market share, and a strong emphasis is put on their accountability.
5. Bureaucratic Culture: Bureaucratic Culture is a term that is used to refer to a type of
organizational culture that is characterized by formalized procedures or rules, hierarchical structures
and adherence to rules and regulations. In a bureaucratic culture, the one who has the power to make
decisions is the management and the lower employees are bound up by the protocol and the process
set.
6. Innovative Culture: Innovative Culture is a work environment designed to promote creativity,
experimentation, and the provision of new ideas. This type of culture allows employees to think
outside the box, take risks, and deviate from the existing conditions. It is focused on the development
of collaborative practices and an open-minded approach to multiple views.

SCOPE OF ORGANZATION CULTURE

Communication style: How employees communicate with each other, including formality, directness,
and openness.
Decision-making processes: How decisions are made, including the level of employee involvement
and the criteria used.
Innovation and risk-taking: The degree to which employees are encouraged to think creatively and
take risks
Work-life balance: The organization's attitude towards personal time and flexibility
Teamwork and collaboration: How employees work together to achieve goals
Employee engagement: The level of commitment and enthusiasm employees have for their work
NATURE OF ORGANIZATIONAL CULTURE
1. Shared Values: These are the basic assumptions and operational norms that an organization employs
to guide its members. The primary objective of these values is to unite individuals by regulating their
actions, to direct and support its operations, and to enable people to trust each other.
2. Norms and Expectations: These are the unwritten guidelines that let employees understand how
they need to behave and interact with other employees. Some of the most common elements of these
norms include communication style, ethics, and collaboration model. They are essential for the
organization as they create unity and consistency while helping to remind the employees of the goal the
organization is trying to achieve.
3. Communication Style: It relates to how information is transferred among employees of a company
and the organizational hierarchy. It denotes both the frequency and the means of communication, as
well as the tone and language used. It can vary from more open and transparent to more hierarchical
and formal.
4. Leadership Style: It is the way in which the managers interact with their team members and the
manner in which decisions are made. There are several approaches to this notion, such as autocratic,
democratic, transformational, or laissez-faire. The leadership style adopted with the organization is
likely to affect its organizational culture.
5. Work Environment: Work Environment refers to the physical, social, and psychological
atmosphere, in which employees carry out their tasks. Therefore, it includes the layout and design of
the office, the facilities provided for the staff, the extent to which interpersonal relationships are
encouraged on the premises, and the overall “vibe”.
6. Rituals and Traditions: These are defined as recurring symbolic practices, either formal or informal,
through which the company articulates and stabilizes its values and identity. They improve connection
and create an affiliation between employees. Traditions also allow determining continuity shifts and the
possibility of building relationships with others.
ORGANISATIONAL CLIMATE
Organisational Climate refers to the prevailing emotional and psychological atmosphere within an
organisation. It encapsulates the collective perceptions, attitudes, and feelings of employees regarding
their workplace environment. This intangible quality influences the overall well-being, motivation, and
productivity of employees.
A positive organisational climate is characterised by trust, open communication, job satisfaction, and a
supportive work environment, while a negative climate might be marked by distrust, poor
communication, and high levels of stress. It is a dynamic aspect of an organisation that can change over
time due to various factors, including leadership, culture, and employee interactions. Understanding
and nurturing a healthy organisational climate is essential for fostering employee engagement,
satisfaction, and overall organisational success.
MOTIVES OF ORGANISATIONAL CLIMATE
1. Achievement
Achievement as a motive within the organisational climate reflects the drive and aspiration of
employees to attain success and excellence in their work. When achievement is a prominent dimension
of the organisational climate, it means that the organisation encourages and rewards a culture of setting
and reaching goals, both at the individual and collective levels. Employees are motivated by a desire to
excel, take on challenging tasks, and experience a sense of accomplishment. This motive can lead to
higher levels of productivity and innovation as employees are more inclined to push their limits and
contribute to the organisation's success. An organisational climate that fosters an achievement-oriented
mindset often supports and recognizes employees' efforts and provides opportunities for growth and
development, ultimately creating a dynamic and high-performing work environment.
2. Influence
Influence as a motive of organisational climate refers to the power dynamics and the extent to which
employees have the ability to shape decisions, policies, and the overall direction of the organisation. In
organisations where influence is valued and encouraged, employees feel empowered to contribute their
ideas and opinions, which can lead to a more participative and democratic climate. When employees
perceive that their input matters and can influence decisions, they are more likely to be engaged,
satisfied, and committed to their work. This motive for organisational climate is particularly relevant in
today's knowledge-based and innovative industries, where fostering a culture of collaboration and
shared influence can lead to improved problem-solving, creativity, and adaptability. An organisational
climate that prioritizes influence, can contribute to a positive and dynamic workplace where employees
are motivated to actively contribute to the organisation's success.
3. Control
Control, as a motive in organisational climate, pertains to the level of authority and influence that
individuals within an organisation possess over their work and decision-making. This dimension reflects
the degree to which employees feel they have autonomy and ownership in their roles. When employees
perceive a higher degree of control over their work, they tend to experience a more positive and
empowering climate. This sense of control can lead to increased job satisfaction, motivation, and a
greater sense of ownership in achieving organisational goals. It is crucial for organisations to strike a
balance between providing employees with a sense of control over their work and maintaining necessary
operational standards, as this balance can significantly impact the overall climate and, ultimately,
organisational success.
4. Extension
Extension as a motive of organisational climate refers to the desire for an inclusive and expansive
workplace environment where employees feel valued and their roles are extended beyond their job
descriptions. It involves fostering a sense of belonging and empowerment among employees. In
organisations motivated by extension, the climate is characterised by open communication,
opportunities for employee input, and a commitment to diversity and inclusion. Employees are
encouraged to contribute ideas, collaborate, and take on responsibilities that go beyond their traditional
roles. This approach not only promotes a positive and inclusive atmosphere but also often leads to
increased innovation, employee engagement, and a sense of ownership, which can ultimately enhance
organisational performance and success.

5. Dependency
Dependency, as a motive in the context of organisational climate, refers to the extent to which
employees within an organisation rely on various aspects of their workplace. This dependence can
manifest in several ways, such as reliance on job security, a stable income, or access to essential
resources and support systems. When employees feel a strong sense of dependency on their
organisation, it can impact the overall climate. For instance, in environments where job security is a
dominant factor, employees may be less likely to voice concerns or challenge the status quo out of fear
of jeopardising their stability. On the other hand, in organisations that prioritise employee well-being
and provide dependable support systems, a positive climate can emerge as employees feel more secure
and valued. Understanding the role of dependency as a motive helps leaders and organisations shape
their policies and practices to create a climate that fosters trust, support, and stability, ultimately
benefiting both employees and the organisation as a whole.
6. Affiliation
Affiliation, as a motive within the organisational climate, refers to the innate human need for social
connection and a sense of belonging within the workplace. It represents the desire of employees to form
positive relationships, build camaraderie, and feel a sense of community within their organisation. An
organisational climate that fosters affiliation recognises the importance of creating a friendly and
supportive atmosphere where employees feel valued, respected, and included. When individuals
perceive a strong sense of affiliation, they are more likely to be engaged, motivated, and satisfied in
their work. This not only enhances their overall well-being but also contributes to a positive and
cohesive organisational culture, ultimately leading to increased productivity and employee retention.
Organisations that prioritise affiliation as a motive tend to build stronger teams and a more harmonious
work environment, which can, in turn, lead to greater success and employee loyalty.
DIMENSIONS OF ORGANISATIONAL CLIMATE
Organisational climate is a multifaceted concept, and its dimensions represent the various aspects of the
workplace environment that collectively define the atmosphere within an organisation. These
dimensions help assess and understand the overall climate. They are interrelated and collectively
contribute to the organisational climate. Managing and enhancing these aspects can help create a more
positive and productive workplace environment. It is essential for organisations to regularly assess and
address these dimensions to maintain a healthy and supportive climate. Here are some common
dimensions of organisational climate:
1. Leadership Style: This dimension relates to the leadership and management approach within the
organisation. It includes the leadership style of top executives, managers, and supervisors. A
participative and supportive leadership style tends to create a more positive climate.
2. Communication: Effective communication is vital for a positive organisational climate. It involves
both the clarity of communication from management and the quality of interpersonal communication
among employees.
3. Job Satisfaction: Employee satisfaction with their roles, responsibilities, and tasks is a critical
dimension. Content and motivated employees tend to contribute positively to the climate.
4. Conflict Resolution: This dimension relates to how conflicts and disagreements are handled within
the organisation. Effective conflict resolution processes can contribute to a healthier climate.
5. Teamwork and Collaboration: The degree to which employees work well together, collaborate, and
support each other impacts the organisational climate. A culture of teamwork fosters a more positive
atmosphere.
6. Safety and Well-being: This dimension addresses both physical and psychological safety within the
workplace. A safe, harassment-free, and inclusive environment enhances the overall climate.
7. Recognition and Rewards: How the organisation recognises and rewards employees for their
contributions is an important dimension. Fair and consistent recognition can boost the organisational
climate.
8. Work-Life Balance: The extent to which employees can maintain a healthy work-life balance is
another crucial dimension. An organisation that supports work-life balance contributes to a more
positive climate.
9. Diversity and Inclusion: The degree to which diversity and inclusion are valued and practiced within
the organisation is a significant dimension. An inclusive workplace tends to have a more positive
climate.
10. Performance Feedback: The quality and frequency of feedback provided to employees concerning
their performance is important. Constructive feedback and performance evaluations can affect the
climate.
11. Organisational Values and Culture: The alignment of the organisation's values and culture with
employee beliefs and expectations is a dimension that impacts the climate. A mismatch can create
tension and a negative climate.
12. Organisational Policies and Procedures: The clarity and fairness of the organisation's policies and
procedures, such as those related to promotion, compensation, and disciplinary actions, can affect the
climate.
13. Employee Empowerment: The extent to which employees are empowered to make decisions and
have a say in their work can shape the climate. Empowerment can contribute to a more positive
atmosphere.
14. Job Security: Employee perceptions of job security and stability within the organisation can also
influence the climate. A sense of job security can lead to a more positive atmosphere.
15. Training and Development: The availability of opportunities for training and skill development is
a dimension that affects employee satisfaction and the overall climate.
LEADERSHIP –
Leadership can be defined as the ability of the management to make sound decisions and inspire others
to perform well. It is the process of directing the behavior of others towards achieving a common goal.
In short, leadership is getting things done through others.
Leader Vs Manager
A leader is someone whom people follow or someone who guides or directs others. A manager is
someone who is responsible for directing and controlling the work and staff in an organization, or of a
department within it.
The main difference between the two is that a leader works by example, while a manager dictates
expectations. If a manager goes against the rules, that will tarnish his position as a manager. If a leader
goes against the example he or she is trying to set, that will be seen as a setback. Following are a few
subtle differences between the two −
 A leader is an innovator and creator whereas a manager is a commander.
 A leader can’t be a manager but the opposite is possible, a manager is more than a leader.
 A leader does what is right, while the manager makes things right.
 A leader deals with change whereas a manager plans for a change.
 A leader gives direction to do something whereas the manager plans for everything that is to be
done.
 A leader encourages people whereas the manager controls people.
 A leader handles communication, credibility, and empowerment whereas a manager deals with
organizing and staffing.
FEATURES OF LEADERSHIP
 Influence the behaviour of others: Leadership is an ability of an individual to influence
the behaviour of other employees in the organization to achieve a common purpose or goal so
that they are willingly co-operating with each other for the fulfillment of the same.
 Inter-personal process: It is an interpersonal process between the leader and the followers. The
relationship between the leader and the followers decides how efficiently and effectively the
targets of the organization would be met.
 Attainment of common organizational goals: The purpose of leadership is to guide the people
in an organization to work towards the attainment of common organizational goals. The leader
brings the people and their efforts together to achieve common goals.
 Continuous process: Leadership is a continuous process. A leader has to guide his employees
every time and also monitor them in order to make sure that their efforts are going in the same
direction and that they are not deviating from their goals.
 Group process: It is a group process that involves two or more people together interacting with
each other. A leader cannot lead without the followers.
 Dependent on the situation: It is situation bound as it all depends upon tackling the situations
present. Thus, there is no single best style of leadership.
IMPORTANCE OF LEADERSHIP:
 Initiating Action: Leadership starts from the very beginning, even before the work actually
starts. A leader is a person who communicates the policies and plans to the subordinates to start
the work.
 Providing Motivation: A leader motivates the employees by giving them financial and non-
financial incentives and gets the work done efficiently. Motivation is the driving force in an
individual’s life.
 Providing guidance: A leader not only supervises the employees but also guides them in their
work. He instructs the subordinates on how to perform their work effectively so that their efforts
don’t get wasted.
 Creating confidence: A leader acknowledges the efforts of the employees, explains to them
their role clearly and guides them to achieve their goals. He also resolves the complaints and
problems of the employees, thereby building confidence in them regarding the organization.
 Building work environment: A good leader should maintain personal contacts with the
employees and should hear their problems and solve them. He always listens to the point of
view of the employees and in case of disagreement persuades them to agree with him by giving
suitable clarifications. In case of conflicts, he handles them carefully and does not allow it to
adversely affect the entity. A positive and efficient work environment helps in stable growth of
the organization.
 Co-ordination: A leader reconciles the personal interests of the employees with the
organizational goals and achieves co-ordination in the entity.
 Creating Successors: A leader trains his subordinates in such a manner that they can succeed
him in future easily in his absence. He creates more leaders.
 Induces change: A leader persuades, clarifies and inspires employees to accept any change in
the organization without much resistance and discontentment. He makes sure that employees
don’t feel insecure about the changes.

LEADERSHIP STYLES
Different leadership styles exist in work environments. The culture and goal of an organization
determine which leadership style fits best. Some organizations offer different leadership styles within
an organization, depending on the necessary tasks to complete and departmental needs.
LAISSEZ-FAIRE:
A laissez-faire leader does not directly supervise employees and fails to provide regular updates to those
under his supervision. Highly experienced and trained employees with minimal requirement of
supervision fall under the laissez-faire leadership style.
But, not all employees possess these features. This leadership style blocks the production of employees
needing supervision. The laissez-faire style implements no leadership or supervision efforts from
managers, which can lead to poor production, lack of control and increasing costs.

AUTOCRATIC:
The autocratic leadership style permits managers to make decisions alone without the input of others.
Managers access total authority and impose their will on employees. No one opposes the decisions of
autocratic leaders. Countries like Cuba and North Korea operate under the autocratic leadership style.
This leadership style benefits those who require direct supervision. Creative employees who participate
in group functions detest this leadership style.

PARTICIPATIVE:
This is also known as the democratic leadership style. It values the input of team members and peers,
but the responsibility of making the final decision rests with the participative leader. Participative
leadership motivates employee morale because employees make contributions to the decision-making
process. It accounts to a feeling that their opinions matter.
When an organization needs to make changes within itself, that is internally, the participative leadership
style helps employees accept changes easily as they play a role in the process. This leadership style
meets challenges when companies need to make a decision in a short period of time.

TRANSACTIONAL:
Transactional leadership style is formed by the concept of reward and punishment. Transactional leaders
believe that the employee's performance is completely dependent on these two factors. When there is
an encouragement, the workers put in their best effort and the bonus is in monetary terms in most of the
cases. In case they fail to achieve the set target they are given a negative appraisal.
Transactional leaders pay more attention to physical and security requirements of the employees.

TRANSFORMATIONAL:
Transformational leadership has the ability to affect employee's perceptions through the returns that
organization gets in the form of human capital benefits. These leaders have the ability to reap higher
benefits by introducing knowledge management processes, encouraging interpersonal communication
among employees and creating healthy organizational culture.
It helps in flourishing organizational innovation by creating a participative environment or culture. It
promotes a culture where the employees have autonomy to speak about their experiences and share
knowledge.It has been seen that transformational leaders are more innovative than transactional and
laisse-faire leaders.
Other Leadership Styles:
1. Coach-style Leadership
Coach-style leadership involves identifying and nurturing individual strengths and formulating
strategies for the team to blend and work well together, cohesively and successfully.
2. Charismatic Leadership
Charismatic leadership employs charisma to motivate and inspire followers. Leaders use eloquent
communication skills to unite a team towards a shared vision. However, due to the charismatic leaders’
overwhelming disposition, they can see themselves as bigger than the team and lose track of the
important tasks.
3. Strategic Leadership
Strategic leadership leads the company’s main operations and coordinates its growth opportunities. The
leader can support multiple employee layers at the same time.

LEADERSHIP THEROIES:
TRADITIONAL THEORY:
Trait Theory
Trait theory, also known as the “Great Man Theory,” posits that leadership is influenced by a collection
of innate personality traits. It is one of the oldest leadership theories and seeks to explain the exceptional
qualities leaders possess. According to this theory, leaders possess inherent personal qualities that set
them apart from ordinary followers.
Researchers have identified various traits associated with effective leaders:
1. Physical Qualities: These include good health, vitality, endurance, energy, enthusiasm, and
assertiveness.
2. Intellectual Qualities: High intelligence, sound judgment, the ability to teach and employ a
scientific approach, decisiveness, self-awareness, ambition, and a drive for achievement.
3. Moral Qualities: Integrity, honesty, fairness, moral courage, willpower, a sense of purpose, a
desire for achievement, and objectivity.
4. Social Qualities: The ability to inspire others, tact, persuasiveness, self-confidence, empathy,
initiative, a deep understanding of human nature, and a positive attitude towards human
relations.
Initially, it was believed that these traits were innate and inborn, leading to the notion that leaders are
born and not made. However, experts later recognized that these qualities can also be developed through
education, training, and experience.
Criticism of Trait Theory of Leadership
Trait theory is valuable in distinguishing leaders from followers and in designing training programs for
managers at various levels. However, it has faced criticism for several reasons.
 Firstly, no universally agreed-upon list of traits defines successful leaders, as different
researchers identify different traits.
 Additionally, some individuals who do not achieve leadership positions may possess similar
traits to successful leaders. Moreover, accurately measuring traits can be challenging, making
it difficult to determine the specific level of a trait required for effectiveness.
 Furthermore, effective leadership is not solely determined by traits but is influenced by the
specific leadership context, which shapes the essential traits for success. Trait theory also falls
short in guiding how to develop these qualities, limiting its practical application in the business
world.
 Finally, there is no direct correlation between the level of traits and the level of success, as
many individuals possessing these traits have failed as leaders.
So, trait theory suggests that leadership is influenced by a set of innate personal traits that differentiate
leaders from followers. However, the theory has limitations and has faced criticism for its lack of
universality, difficulties in measurement, neglect of the leadership context, absence of guidance for
development, and the absence of a direct correlation between traits and success.

BEHAVIORAL THEORY
Behavioral Theory directs our attention to leaders’ observable actions, behaviors, and responses in
various situations.
This theory explains the effectiveness of leadership. According to this theory, leadership has two
qualities i.e., initiating structure and consideration. These qualities are tested with higher and lower
levels with proper intersection of each other.

Initiating Structure
It is the level up to which a leader is task oriented and directs the employee towards achieving a goal.
In this case, the leader gives instruction, makes plan and schedules work activities.

Consideration
It is the level up to which a leader is concerned with the sub-ordinates, ideas and feelings. Considerate
leaders are friendly, they show concern for sub-ordinates’ well-being and satisfaction.

This type of leadership is achieved by performance and is found to be effective. But it is not the best
way as situational factors are not taken into consideration.

CONTINGENCY LEADERSHIP
Contingency leadership theory is a practice of leadership. It believes there is no singular best way to
structure an organization. Instead, the best leadership style will be contingent on the situation.
Effective leadership is one of the most attractive qualities in an employee. There are a variety of
theories that explore different leadership styles. Each approach has its take on what works best to boost
team productivity.
The contingency viewpoint will help you to -
 Combine management approaches in the best possible way.
 Increase management’s ability to align employees with the leaders.
 Focus on the concept of adaptability.
The contingency theory of leadership effectiveness states that leadership styles are dependent on the
situation.
When determining distinct leadership styles, contingency theory highlights three main factors. They are
as follows:
 Traits.
 Behavior.
 Situation.
Contingency theory emerged in the 1960s. It is founded on the principle that no single leadership style
is appropriate for every circumstance.
The approach emphasizes the importance of -
 The leaders’ personality and,
 The situation in which that leader operates.
The contingency approach to management is multifaceted and has many implications. In support of this
theory, various contingency models of leadership were developed.

Fred Fiedler Contingency Model or LPC Contingency Model

Fred Fiedler, in the 1960s, developed one of the first contingency theories. In Fiedler’s Contingency
Theory, leadership styles are fixed.
Fiedler’s Contingency Theory has two factors:
a) Leadership Style: In this factor, you determine your style of leadership. Fielder developed a scale
called the least preferred co-worker scale (LPC).
The scale asks you to do the two simple things to understand your leadership style-
 Think about the person who you’ve least enjoyed working with.
 Then rate how you feel about this person for each factor and add up your scores.
According to this scale-
 The more you rate the person you least like to work with, the more relationship-oriented you
are. I.e, High LPC = Relationship-oriented leader.
 The less you rate the person you like the least working with, the more task-oriented you are.
I.e, Low LPC = Task-oriented leader.
b) Situational favourableness: It is the second step that determines a particular situation’s
favorableness. It depends on three distinct factors:
 Leader-Member Relations: This factor measures how much your team trusts you. Greater trust
increases the favorableness of the situation, and less confidence reduces it.
 Task Structure: This factor measures the task’s performance. It refers to the type of task you’re
doing: clear and structured or vague and unstructured. Unstructured tasks are viewed
unfavorably.
 Leader’s Position Power: This is determined by the level of authority you display to reward or
punish subordinates. The more ability you have, the more favorable your situation. Fiedler
identifies power as being either strong or weak.
Criticism:
 One of the biggest criticisms is the lack of flexibility. Fiedler believed that an individual’s
natural leadership style is fixed. Hence, the most effective way to handle situations is to replace
the leader. He didn’t allow for flexibility in leaders.
 LPC scores can fail to reflect the personality traits they are supposed to reflect.
 The model’s validity has been disputed, despite many supportive tests.
 The model does not consider the percentage of in-between situations and unfavorable
situations. A clear comparison between low-LPC leaders and high-LPC leaders is missing.
BLAKE AND MOUTON’S MANAGERIAL GRID
The treatment of task orientation and people orientation as two independent dimensions was a major
step in leadership studies.
Many of the leadership studies conducted in the 1950s at the University of Michigan and the Ohio State
University focused on these two dimensions.
Building on the work of the researchers at these Universities, Robert Blake and Jane Mouton (1960s)
proposed a graphic portrayal of leadership styles through a managerial grid (sometimes
called leadership grid).
The grid depicted two dimensions of leader behavior, concern for people (accommodating people’s
needs and giving them priority) on y-axis and concern for production (keeping tight schedules) on x-
axis, with each dimension ranging from low (1) to high (9), thus creating 81 different positions in which
the leader’s style may fall. (See figure 1).
The five resulting leadership styles are as follows:
1. Impoverished Management (1, 1): Managers with this approach are low on both the
dimensions and exercise minimum effort to get the work done from subordinates.
The leader has low concern for employee satisfaction and work deadlines and as a result disharmony
and disorganization prevail within the organization. The leaders are termed ineffective wherein their
action is merely aimed at preserving job and seniority.
2. Task management (9, 1): Also called dictatorial or perish style. Here leaders are more
concerned about production and have less concern for people. The style is based on theory X
of McGregor.
The employees’ needs are not taken care of and they are simply a means to an end. The leader believes
that efficiency can result only through proper organization of work systems and through elimination of
people wherever possible.
Such a style can definitely increase the output of organization in short run but due to the strict policies
and procedures, high labour turnover is inevitable.
3. Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries to
maintain a balance between goals of company and the needs of people.
The leader does not push the boundaries of achievement resulting in average performance for
organization. Here neither employee nor production needs are fully met.
4. Country Club (1, 9): This is a collegial style characterized by low task and high people
orientation where the leader gives thoughtful attention to the needs of people thus providing
them with a friendly and comfortable environment.
The leader feels that such a treatment with employees will lead to self-motivation and will find people
working hard on their own. However, a low focus on tasks can hamper production and lead to
questionable results.
5. Team Management (9, 9): Characterized by high people and task focus, the style is based on
the theory Y of McGregor and has been termed as most effective style according to Blake and
Mouton.
The leader feels that empowerment, commitment, trust, and respect are the key elements in creating a
team atmosphere which will automatically result in high employee satisfaction and production.
Advantages of Blake and Mouton’s Managerial Grid;
The Managerial or Leadership Grid is used to help managers analyze their own leadership styles through
a technique known as grid training. This is done by administering a questionnaire that helps managers
identify how they stand with respect to their concern for production and people.
The training is aimed at basically helping leaders reach to the ideal state of 9, 9.
Limitations of Blake and Mouton’s Managerial Grid;
The model ignores the importance of internal and external limits, matter and scenario. Also, there are
some more aspects of leadership that can be covered but are not.
TRANSACTIONAL VS TRANSFORMATIONAL LEADERSHIP –
TRANSACTIONAL LEADERSHIP –
The transactional style of leadership was first described by Max Weber in 1947 and then by Bernard
Bass in 1981. This style is most often used by the managers.
It focuses on the basic management process of controlling, organizing, and short-term planning. The
famous examples of leaders who have used transactional technique include McCarthy and de Gaulle.
Transactional leadership involves motivating and directing followers primarily through
appealing to their own self-interest. The power of transactional leaders comes from their formal
authority and responsibility in the organization.
The main goal of the follower is to obey the instructions of the leader. The style can also be mentioned
as a ‘telling style’.
The leader believes in motivating through a system of rewards and punishment.
If a subordinate does what is desired, a reward will follow, and if he does not go as per the wishes of
the leader, a punishment will follow. Here, the exchange between leader and follower takes place to
achieve routine performance goals.
These exchanges involve four dimensions:
1. Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations,
provide necessary resources, set mutually agreed upon goals, and provide various kinds of
rewards for successful performance. They set SMART (specific, measurable, attainable,
realistic, and timely) goals for their subordinates.
2. Active Management by Exception: Transactional leaders actively monitor the work of their
subordinates, watch for deviations from rules and standards and taking corrective action to
prevent mistakes.
3. Passive Management by Exception: Transactional leaders intervene only when standards
are not met or when the performance is not as per the expectations. They may even use
punishment as a response to unacceptable performance.
4. Laissez-faire: The leader provides an environment where the subordinates get many
opportunities to make decisions. The leader himself abdicates responsibilities and avoids
making decisions and therefore the group often lacks direction.
Assumptions of Transactional Theory
 Employees are motivated by reward and punishment.
 The subordinates have to obey the orders of the superior.
 The subordinates are not self-motivated. They have to be closely monitored and controlled to
get the work done from them.
TRANSFORMATIONAL LEADERSHIP
Creating high-performance workforce has become increasingly important and to do so business leaders
must be able to inspire organizational members to go beyond their task requirements. As a result, new
concepts of leadership have emerged - transformational leadership being one of them. Transformational
leadership may be found at all levels of the organization: teams, departments, divisions, and
organization as a whole. Such leaders are visionary, inspiring, daring, risk-takers, and thoughtful
thinkers. They have a charismatic appeal. But charisma alone is insufficient for changing the way an
organization operates. For bringing major changes, transformational leaders must exhibit the following
four factors:
Figure 1: Model of Transformational Leadership

 Inspirational Motivation: The foundation of transformational leadership is the promotion of

consistent vision, mission, and a set of values to the members.
Their vision is so compelling that they know what they want from every interaction. Transformational
leaders guide followers by providing them with a sense of meaning and challenge.
They work enthusiastically and optimistically to foster the spirit of teamwork and commitment.
 Intellectual Stimulation: Such leaders encourage their followers to be innovative and
creative. They encourage new ideas from their followers and never criticize them publicly for
the mistakes committed by them.
The leaders focus on the “what” in problems and do not focus on the blaming part of it. They have no
hesitation in discarding an old practice set by them if it is found ineffective.
 Idealized Influence: They believe in the philosophy that a leader can influence followers
only when he practices what he preaches. The leaders act as role models that followers seek to
emulate.
Such leaders always win the trust and respect of their followers through their action. They typically
place their followers needs over their own, sacrifice their personal gains for them, ad demonstrate
high standards of ethical conduct. The use of power by such leaders is aimed at influencing them to
strive for the common goals of the organization.
 Individualized Consideration: Leaders act as mentors to their followers and reward them for
creativity and innovation. The followers are treated differently according to their talents and
knowledge. They are empowered to make decisions and are always provided with the needed
support to implement their decisions.
The common examples of transformational leaders are Mahatma Gandhi and Obama.
Criticisms of Transformational Leadership Theory
 Transformational leadership makes use of impression management and therefore lends itself
to amoral self promotion by leaders.
 The theory is very difficult to be trained or taught because it is a combination of many
leadership theories.
 Followers might be manipulated by leaders and there are chances that they lose more than
they gain

Differences Transactional Leadership Transformational Leadership

Focus Maintains the status quo and focuses on Inspires change, innovation, and personal
tasks and performance growth

Motivation Relies on rewards and punishments to Motivates through vision, values, and
motivate followers personal development

Transactional Emphasizes a transactional exchange Fosters a transformational relationship based

Exchange between leaders and followers on trust and mutual respect

Communication Communication is directive and task- Communication is open, empowering, and

Style oriented visionary

Decision-Making Centralized decision-making by leaders Decentralized decision-making, involving

and empowering followers

Leadership Reactive and responsive to problems Proactive, anticipatory, and strategic

Approach and crises approach to leadership

Creativity and Limited focus on creativity and Encourages creativity, innovation, and new
Innovation innovation ideas

Leadership Impact Maintains stability and efficiency in Inspires and transforms individuals and
established systems organizations for long-term success

Employee Less emphasis on individual growth and Focuses on personal and professional growth
Development development of followers

Leadership Style Directive and transactional leadership Inspirational and transformational leadership
style style
QUALITIES OF GOOD LEADER –
Leaders are individuals who possess attributes of leadership. They focus on satisfying the behavior of
each member of the group and the realization of group goals. A leader inspires employees, provides
psychological support, helps in implementing changes, handles conflicts effectively, and works towards
the development of individuals in an organisation.
A Good leader should possess certain qualities and skills in order to lead, guide, and influence the
actions of the people in a group or organisation. Some of the qualities that are needed to make a good
leader are as follows:

Physical Features
The personality of an individual is an important factor in determining the success of leadership. The
personality of an individual is determined by physical features like height, weight, energy, health,
appearance, etc. A person who is physically fit is likely to appeal as a leader and attract people.
Knowledge
A leader must be knowledgeable and competent. He should possess a thorough knowledge of all the
subjects, principles, procedures and operations of his field. Intelligent and knowledgeable leaders
are taken seriously by the group and they are able to instruct and influence people in the workplace.
Integrity
Every leader should have a high degree of integrity and honesty. His way of working will influence
his image amongst his followers. High moral standards should be maintained to act as a role model.
Vision
A good leader should have vision. He should be able to see the big picture of where the
organisation or team they are working within is headed, what it’s capable of, and what it will take to
get there.
Initiative
A leader should take initiative to grab the opportunities. He should be creative and capable of
evolving new ideas and methods of doing things. He should be able to lead the group and show them
the correct path to achieve team and organisational goals.
Communication Skills
Communication skills play a very important part in influencing people. So, a leader should be good at
communicating his ideas, feelings and decisions. He should be able to persuade and direct
subordinates. In order to be an effective leader, an individual should not only be a good speaker, but
also a good listener.
Motivation Skills
A leader should be an effective motivator, as he has to influence the actions and intentions of people
through motivation. A good leader should understand the needs of people and motivate them by
satisfying their needs.
Self-Confidence
A good leader should be confident. Self-confidence is essential to motivate and boost the morale of
the followers. A confident leader is able to create confidence among others.
Decisiveness
A good leader should be able to take decisions according to the need of the
circumstances. Decisions should be taken at the right time after the analysis of the alternatives
available. Once decisions are taken, they should not be changed frequently in order to maintain stability.
Social Skills
A good leader must be friendly and sociable with his followers. He should recognize the problems of
followers and should help them in every possible way. He must possess the ability to win the confidence
and loyalty of his subordinates.
A leader may not necessarily possess all the qualities of a good leader. But, an understanding of these
qualities will help him to acquire the missing qualities through training, effort and practice. The above
mentioned qualities will help them to bond better with their team and help them to keep their team
motivated and work as a team.
CONFLICT MANAGEMENT –
Conflict management is the process of addressing disagreements in a way that reduces negativity and
increases positivity. The goal is to find mutually acceptable solutions that benefit all parties.
Steps to conflict management
1. Identify the source of the conflict
2. Look beyond the incident
3. Request solutions
4. Identify solutions that both parties can support
5. Agree on a solution
Tips for conflict management
 Focus on the facts, not personal opinions
 Allow everyone to speak
 Be mindful of the language you use
 Approach the problem with empathy
 Refocus the conversation on solutions
 Talk directly to the person you have the problem with
 Don't blame or name-call
 Give information
 Listen
Organisational Conflicts: Consequences and Types
Conflict is a common occurrence in organisations and can take various forms, such as disagreements,
hostility, contradictions, or incompatibilities among individuals or groups. It can arise due to differences
in values, goals, policies, or the scarcity of resources. According to Robbins, conflict is a deliberate
process where one person or unit purposely obstructs another, resulting in frustration and hindrance to
the achievement of their goals or advancement of their interests.
Consequences of Organisational Conflicts
Positive Consequences of Conflict:
1. Stimulating Change: Conflict acts as a catalyst for change in organisations. It brings attention
to problems and highlights the need for change. Conflict forces individuals and groups to
understand the issues better and find solutions.
2. Encouraging Creativity and Innovation: When faced with conflict, group members become
creative in finding different ways to address the problem. Conflict stimulates their thinking
process and can even lead to innovative ideas for improving policies and procedures.
3. Strengthening Group Cohesion: Inter-group conflict can bring groups closer together. When
faced with internal conflicts, groups tend to unite and cooperate more. This solidarity helps
them face the challenges posed by conflict.
4. Releasing Tension: Conflict provides a healthy outlet for releasing pent-up tensions and
frustrations. It allows individuals to express their feelings and negotiate without harming the
organisation’s functioning.
5. Testing Abilities: Conflict serves as a test of individuals’ learning and growth. Successfully
managing conflict can boost satisfaction and motivation.
Negative Consequences of Conflict:
1. Upsetting Balance: Conflict disrupts the balance within an organisation. The energy spent on
conflict can create imbalances between contributions and rewards. It can also create hostility
between groups.
2. Increased Tension and Stress: Conflict generates tension and stress, affecting the well-being
of individuals. It leads to feelings of anxiety, guilt, and frustration. Cooperation becomes
difficult due to suspicion and lack of trust. Conflict can also leave the losing party dissatisfied.
3. Diversion of Energy: Conflict diverts attention away from organisational goals. Individuals
may focus more on personal agendas and tactics to win the conflict rather than working towards
common objectives. In extreme cases, conflict can lead to destructive actions.
4. Rigidity: Conflict can result in stricter authority and responsibility relationships, making the
organisational structure more inflexible. Groups become more focused on tasks, and leadership
becomes more directive.
TYPES OF ORGANISATIONAL CONFLICTS
Conflict within an organisation can occur at the individual level or between multiple individuals. It
can arise from divergent goals and the various roles individuals are expected to fulfil. Organisational
conflicts can be broadly classified into the following categories:
 Intra-personal conflict
 Inter-personal conflict
 Inter-group conflict
 Inter-organisational conflict
1.Intra-personal Conflict
This conflict arises within an individual or between two or more individuals. It occurs when an
individual faces difficulty in choosing between alternative courses of action. Intra-personal conflict can
be caused by divergent goals and multiple roles expected from the individual.
1. Goal Conflict: This type of conflict occurs within an individual. It occurs when an individual faces
difficulty in choosing between alternative courses of action. One common form of intra-personal
conflict is goal conflict, where an individual must choose among competing goals. There are three
subtypes of goal conflict:
 Approach-approach Conflict: This conflict arises when a person must choose between two
or more equally appealing goals. Selecting one goal means giving up the others, leading to a
challenging decision and for instance, deciding between two equally lucrative job offers.
 Approach-avoidance Conflict: In this conflict, an individual is presented with an alternative
that has both positive and negative aspects. They are attracted to the positive aspects while
being repelled by the negative aspects. For example, being offered a well-paid job in a location
they dislike, creates a dilemma.
 Avoidance-avoidance Conflict: This conflict occurs when a person must choose between two
undesirable goals, both of which have negative aspects. It’s a situation where neither option
seems appealing. For instance, disliking a current job but finding the alternative of resigning
and searching for a new job equally unattractive.
2. Role Conflict: Role conflict arises when there are conflicting expectations placed on an individual
in a specific position. It occurs when the expectations of a role are materially different or contradictory,
making it challenging to fulfil one expectation without neglecting others. Role ambiguity, which arises
from unclear duties and responsibilities, can also contribute to role conflict. Here are the different forms
of role conflict:
 Person-role Conflict: This conflict occurs when a person is asked to perform a job that goes
against their values. For example, being asked to engage in unethical practices that contradict
one’s values.
 Inter-role Conflict: Inter-role conflict arises when an individual is confronted with multiple
and conflicting roles. For instance, having to make a decision that is unfavourable to workers
while serving as a member of a works committee.
 Intra-sender Role Conflict: This conflict occurs when a person is assigned a job for which
they lack the necessary capability or when there is insufficient time and resources to complete
the task.
 Inter-sender Role Conflict: Inter-sender role conflict arises when different sources provide
conflicting role expectations. For example, being asked to follow accounting practices that
differ from the professional standards set by the relevant institute.
2.Inter-personal Conflict
Inter-personal conflict occurs between individuals or groups within an organisation. It arises when there
are differences in opinions, values, or interests among individuals. This type of conflict can be between
peers, supervisors and subordinates, or among team members.
1. Personality Differences: Some individuals may find it challenging to establish cooperative
relations with others due to differences in their personalities.
2. Perceptions: Conflicts can arise when individuals from diverse socio-cultural backgrounds
hold different perceptions, leading to disagreements, especially regarding task-related matters.
3. Clash of Values and Interests: Differences in personal values and interests can create
misunderstandings and conflicts between individuals. Varied perspectives on ethical
considerations or strategic decisions may contribute to such conflicts.
4. Power and Status Differences: When there is an unequal distribution of power and status
within a group or organisation, conflicts may arise. Individuals with higher positions may exert
control or give orders that conflict with the opinions or interests of those with lower positions.
5. Scarcity of Resources: Interpersonal conflicts can emerge when individuals compete for
limited resources, such as budget allocations, promotion opportunities, or access to essential
tools or equipment.
3.Inter-group Conflicts
Inter-group conflict refers to conflicts that arise between different groups within an organisation. It
occurs when there are competing goals, limited resources, or differences in power and authority between
groups. This type of conflict can be detrimental to collaboration and coordination within the
organisation.
1. Divergent Goals and Interests: Conflict arises when the goals and interests of two or more
groups are incompatible. For instance, conflicts often arise between labour and management
when labour demands higher wages, potentially impacting the profitability desired by
management. Additionally, unclear boundaries and reward systems based on group
performance can further exacerbate goal incompatibility.
2. Task Interdependence: Conflict potential increases when groups rely on each other for
resources or information. If one group’s work is dependent on another group’s completion,
conflicts may emerge if the dependent group fails to meet expectations.
3. Limited Resources: When multiple groups compete for limited resources like funds,
personnel, information, or power, conflicts arise as each group strives to secure a larger share
of the available resources.
4. Collaborative Decision-making: Conflicts can arise during joint decision-making processes
when groups have access to different information sources, communication channels suffer from
leaks or blockages, or groups employ varying techniques for processing information.
5. Dealing with Uncertainty: Interactions between organisations and their environments often
entail uncertainties. Conflicts may arise when one group establishes rules or guidelines that
contradict the expectations or preferences of other groups, such as when the accounting
department enforces travel expense rules that clash with the marketing department’s
expectations.
6. Attitudinal Differences: Conflicts can stem from attitudes of distrust, secrecy, or closed
communication held by members of different groups. These attitudinal disparities can give rise
to aggressive behaviours or strained relationships.
7. Organisational Ambiguity: Conflict can result from competition between groups for new
responsibilities or when there is a lack of clarity regarding job roles and communication issues
like noise, distortion, omission, or overload.
8. Managing Change: Introducing organisational changes, such as mergers, can trigger inter-
group conflicts due to power struggles and differences in organisational culture and practices.
9. Communication Challenges: Each group may develop its own specialized vocabulary or
jargon, hindering effective communication and mutual understanding between groups.
4.Inter-organisational conflict
Inter-organisational conflict refers to conflicts that arise between different organisations or entities.
These conflicts occur when there are disagreements, tensions, or competition between organisations
that can impact their relationship and interactions. Inter-organisational conflicts can arise due to various
reasons, including:
1. Competition for Resources: Organisations often find themselves in competition for limited
resources such as funding, customers, market share, or skilled personnel. This competition can
lead to conflicts as organisations strive to gain an edge over one another.
2. Conflicting Interests: When organisations have divergent goals, objectives, or interests,
conflicts can emerge. For instance, two organisations operating in the same industry may have
different strategies or business models, resulting in competition and conflicts.
3. Power Dynamics: Imbalances in power and influence among organisations can give rise to
conflicts. Larger or more influential organisations may exert control or dominance over smaller
counterparts, leading to tensions and disputes.
4. Contractual or Agreement Disputes: Organisations frequently enter into contracts or
agreements with one another for various purposes, such as partnerships, joint ventures, or
supply chain relationships. Conflicts may arise when there are disagreements or breaches of
these contractual arrangements.
5. Differences in Organisational Culture: Each organisation possesses its own set of values,
norms, and ways of operating. Conflicts can arise when organisations with contrasting cultures
collaborate or interact, as differences in communication styles, decision-making processes, or
work approaches come to the forefront.
6. Misaligned Interests or Strategies: Organisations may have differing priorities, strategies, or
approaches to conducting business. When these differences are not effectively managed or
aligned, conflicts can emerge, impeding cooperation and collaboration.
7. External Factors: Changes in the external environment, such as shifts in market conditions,
regulatory requirements, or technological advancements, can create conflicts between
organisations as they navigate new circumstances or vie for opportunities.
RESOLTIONS or STRATEGIES FOR CONFLICT MANAGEMENT/ ISSUES OF CONCERN:
Conflict Management Styles (Thomas-Kilman Conflict Modes)
Conflict management styles take many forms and may reflect a particular style of leadership.
 Collaborating − win/win
 Compromising − win some/lose some
 Accommodating − lose/win
 Competing − win/lose
 Avoiding − no winners/no losers
COLLABORATING
This technique follows the rule "I win, you win". Collaborating means working together by integrating
ideas set out by multiple people. The objective here is to find a creative solution acceptable to everyone.
It calls for a significant time commitment but is not appropriate for all conflicts.
This technique is used in situations where −
 There is a high level of trust
 We don't want to take complete responsibility
 We want others to also have "ownership" of solutions
 People involved are willing to change their thinking
 We need to work through animosity and hard feelings
However, this process takes a lot of time and energy and some may take advantage of other people's
trust and openness.
Example − A businessman should work collaboratively with the manager to establish policies, but
collaborative decision-making regarding office supplies wastes time better spent on other activities.
COMPROMISING
This technique follows the rule "You bend, I bend". Compromising means adjusting with each other’s
opinions and ideas, and thinking of a solution where some points of both the parties can be
entertained. Similarly, both the parties need to give up on some of their ideas and should agree with
the other.
This technique can be used in situations where −
 People of equal levels are equally committed to goals
 Time can be saved by reaching intermediate settlements on individual parts of complex
matters
 Goals are moderately important
Important values and long-term objectives can be derailed using this technique. This process may not
work if initial demands are high and mainly if there's no commitment to honor the compromise
solutions.
Example − Two friends had a fight and they decide to compromise with each other through mutual
understanding.
ACCOMMODATING
This technique follows the rule "I lose, you win". Accommodating means giving up of ideas and
thoughts so that the other party wins and the conflict ends. This technique can be used when −
 An issue is not that important to us as it is to the other person
 We realize we are wrong
 We are willing to let others learn by mistake
 We know we cannot win
 It is not the right time and we would prefer to simply build credit for the future
 Harmony is extremely important
 What the parties have in common is a good deal more important than their differences
However, using this technique, one's own ideas don't get attention and credibility, and influence can
be lost.
Example − When we fight with someone we love we choose to let them win.
COMPETING
This technique follows the rule "I win, you lose". Competing means when there is a dispute a person or
a group is not willing to collaborate or adjust but it simply wants the opposite party to lose. This
technique can be used when −
 We know you are right.
 Time is short and a quick decision is to be made.
 A strong personality is trying to steamroll us and we don't want to be taken advantage of.
 We need to stand up for our rights.
This technique can further escalate conflict or losers may retaliate.
Example − When in a debate the party with more facts wins.
AVOIDING
This technique follows the rule "No winners, no losers". Avoiding means the ideas suggested by both
the parties are rejected and a third person is involved who takes a decision without favoring any of the
parties. This technique can be used when −
 The conflict is small and relationships are at stake
 We are counting to ten to cool off
 More important issues are pressing and we feel we don't have time to deal with this particular
one
 We have no power and we see no chance of getting our concerns met
 We are too emotionally involved and others around us can solve the conflict more
successfully
Using this technique may lead to postponing the conflict, that may make matters worse.
Example − Rahul and Rohit had a fight, their mother came and punished both of them.

EVALUATING LEADER.
1.Key Areas to Assess:
 Communication: How effectively does the leader communicate their vision, expectations, and
feedback
 Decision-Making: Are their decisions well-reasoned, timely, and effective
 Problem-Solving: How do they approach and resolve challenges
 Emotional Intelligence: Do they understand and manage their own emotions and those of
others
 Teamwork and Collaboration: Do they foster a positive and collaborative team environment
 Delegation and Empowerment: Do they effectively delegate tasks and empower their team
members
 Adaptability and Flexibility: How do they respond to change and unexpected situations
 Vision and Strategy: Do they have a clear vision for the future and a strategy to achieve it
 Motivation and Inspiration: Do they inspire and motivate their team to achieve their best
 Ethical Conduct: Do they uphold ethical standards and act with integrity
2. Methods for Evaluation:
 360-Degree Feedback: Gather feedback from superiors, peers, and direct reports.
 Performance Reviews: Conduct regular performance reviews to discuss goals,
accomplishments, and areas for improvement.
 Observation: Observe the leader in action and note their behaviors and interactions.
 Surveys and Questionnaires: Use surveys and questionnaires to gather feedback on the
leader's strengths and weaknesses.
 Data Analysis: Analyze data related to team performance, project outcomes, and other relevant
metrics.
 Leadership Assessments: Utilize structured leadership assessments to evaluate specific skills
and competencies.
 Self-Reflection: Encourage leaders to reflect on their own strengths and weaknesses and areas
for development.
UNIT - IV GROUP DYNAMICS
INTRODUCTION –
Group dynamics deals with the attitudes and behavioural patterns of a group. It can be used as a means
for problem-solving, teamwork, and to become more innovative and productive as an organization. The
concept of group dynamics will also provide you with the strengths, success factors and measures along
with other professional tools.
Group dynamics deals with the attitudes and behavioural patterns of a group. It can be used as a means
for problem-solving, teamwork, and to become more innovative and productive as an organization. The
concept of group dynamics will also provide you with the strengths, success factors and measures along
with other professional tools.
The term ‘group dynamics’ means the study of forces within a group. Since human beings have an
innate desire for belonging to a group, group dynamism is bound to occur. In an organization or in a
society, we can see groups, small or large, working for the well-being.
The social process by which people interact with one another in small groups can be called group
dynamism. A group has certain common objectives & goals. Because of which members are bound
together with certain values and culture.

IMPORTANCE OF GROUP DYNAMISM

1. Firstly, a group can influence the way the members think. The members are always influenced
by the interactions of other members in the group. A group with a good leader performs better
as compared to a group with a weak leader.
2. The group can give the effect of synergy, that is, if the group consists of positive thinkers then
its output is more than double every time.
3. Group dynamism can furthermore give job satisfaction to the members.
4. The group can also infuse the team spirit among the members.
5. Even the attitude, insights & ideas of members depend on group dynamism. For example,
negative thinkers convert to positive thinkers with the help of the facilitator.
6. Also, if the group works as a cohesive group, the cooperation and convergence can result in
maximization of productivity
7. Furthermore, group dynamism can reduce labour unrest. Lastly, it reduces labour turnover due
to emotional attachment among the group members.
STAGES OF GROUP DEVELOPMENT
The following are the five stages of group development
1. Forming
2. Storming
3. Norming
4. Performing
5. Adjourning

 Little Agreement
Forming  Unclear Purpose
 Guidance & Direction

 Conflict
Storming  Increased clarity of Purpose
 Power Struggles

 Agreement & Consensus

Norming  Clear Roles and Responsibility
 Facilitation

 Clear Vision and Purpose

Performing  Focus on Goal Achievement
 Delegation
 Task Completion
Adjourning  Good feeling about Achievement
 Recognition

SCOPE OF GROUP DYNAMICS-

Group dynamics refers to the processes, interactions, and psychological forces that influence group
behaviour, decision-making, and performance. The scope of group dynamics extends across various
fields, including psychology, sociology, management, education, and communication. Below are the
key areas where group dynamics play a crucial role:
1. Organizational Behaviour and Management
 Team building and collaboration
 Leadership styles and their impact on group performance
 Conflict resolution and negotiation
 Decision-making in groups
 Organizational culture and group cohesion
2. Social Psychology
 Group formation and structure
 Conformity, norms, and group influence
 Social roles and status within groups
 Groupthink and its effects on decision-making
 Minority influence and resistance to group pressure
3. Education and Learning
 Group-based learning strategies (e.g., cooperative learning, peer tutoring)
 Classroom dynamics and student participation
 The role of social interactions in cognitive development
 Teacher-student relationships and their impact on learning
4. Communication and Media
 Influence of group discussions on opinions and beliefs
 Role of social media in shaping group behaviors
 Persuasion and group influence in marketing and advertising
 Group identity and online communities
5. Sports and Team Performance
 Team cohesion and its effect on performance
 Role of leadership in sports teams
 Motivation and morale in team settings
 Managing conflicts within sports teams
6. Social Work and Community Development
 Group therapy and support groups
 Community mobilization and social movements
 Group interventions for behavioral change
 Social identity and group belongingness
7. Political and Legal Systems
 Group influence in political decision-making
 Jury deliberations and group decision-making in courts
 Role of lobby groups and interest groups in policymaking
 Public opinion formation through group interactions
8. Military and Defense
 Teamwork and coordination in military operations
 Leadership in high-pressure group environments
 Psychological resilience and group solidarity
 Conflict resolution in military units
Conclusion
Group dynamics is a multidisciplinary field with applications in various domains. Understanding group
behaviour helps improve teamwork, leadership, communication, and overall group effectiveness in both
professional and personal settings.
NATURE OF GROUP DYNAMICS:
Group dynamics refers to the behavioural patterns, interactions, and psychological processes that occur
within a group. The nature of group dynamics can be understood through several key characteristics:

1. Group Formation and Structure

 Groups are formed based on common goals, interests, or social needs.
 They have a structure that includes roles, norms, and status hierarchies.
 Leadership plays a crucial role in guiding group activities and maintaining order.

2. Interdependence and Interaction

 Members of a group depend on each other for achieving shared objectives.
 Frequent interaction fosters relationships and strengthens group cohesion.
 Communication within the group shapes decision-making and problem-solving.
3. Influence and Conformity
 Groups exert social influence on members, shaping their behaviors, attitudes, and opinions.
 Norms develop within groups, leading to conformity and uniformity in actions.
 Peer pressure and social expectations impact individual decision-making.
4. Conflict and Resolution
 Differences in opinions, values, and interests can lead to conflicts within the group.
 Effective conflict resolution strategies, such as negotiation and mediation, help maintain
group harmony.
 Constructive conflicts can lead to innovation, while destructive conflicts can weaken the
group.
5. Cohesion and Motivation
 Strong group cohesion leads to unity, trust, and a sense of belonging among members.
 Motivation within the group is influenced by rewards, recognition, and shared purpose.
 High levels of cohesion improve group performance, while low cohesion can lead to
dysfunction.
6. Leadership and Decision-Making
 Leadership styles (authoritative, democratic, or laissez-faire) shape group dynamics.
 Decision-making in groups can be collective (consensus-based) or hierarchical.
 Effective leadership fosters collaboration, while poor leadership can cause instability.
7. Group Development and Change
 Groups evolve over time, progressing through stages such as forming, storming, norming,
performing, and adjourning (Tuckman’s Model).
 External factors (e.g., organizational changes, social trends) can influence group behavior.
 Adaptability and flexibility help groups survive and remain effective.
8. Social Identity and Belonging
 Individuals develop a sense of identity through group membership.
 Groups provide emotional support and reinforce social identity.
 Strong group identity fosters loyalty and commitment among members.
Conclusion
The nature of group dynamics highlights the complex and ever-changing interactions within a group.
Understanding these dynamics helps in managing teams effectively, improving productivity, and
fostering positive relationships in various social and professional settings.
TYPES OF GROUPS –
Definition of Group :A group can be defined as two or more interacting and interdependent individuals
who come together to achieve particular objectives. A group behaviour can be stated as a course of
action a group takes as a family. For example: Strike.
One way to classify the groups is by way of formality – formal and informal.
FORMAL GROUPS
 Definition: Defined by an organization or institution with a specific purpose or task. They have
a predetermined structure with designated roles, rules, and procedures.
 Examples: Work teams, committees, sports teams, project teams, government agencies.
 Characteristics:
 Explicit hierarchy and leadership.
 Clearly defined goals and objectives.
 Established rules and procedures to guide behaviour.
 Focus on achieving organizational goals efficiently.
 Communication often follows formal channels.
COMMAND GROUPS:
Definition: Command groups are hierarchical structures defined by an organization chart. They consist
of a supervisor and their direct reports, forming a chain of command for decision-making and tasks.
Example: A market research firm CEO and their research associates form a command group. Here, the
CEO leads and assigns tasks to the associates, who report directly back to them.

Key characteristics:
 Clear hierarchy and leadership: Decisions and tasks flow from the supervisor down to the
subordinates.
 Formal structure: Roles and responsibilities are clearly defined based on positions within the
hierarchy.
 Focus on efficiency: The primary goal is to achieve objectives efficiently through established
procedures.
TASK GROUPS:
Definition: Task groups are temporary ensembles formed to achieve a specific, focused goal within a
defined timeframe. These groups, often called task forces, are disbanded once the goal is achieved.
Examples:
 A team developing a new product.
 A group improving a production process.
 A committee designing a syllabus.
Key characteristics:
 Shared goal: Members are united by a defined objective they work together to accomplish.
 Time-bound: The group exists only for the duration needed to complete the assigned task.
 Flexible structure: Roles and responsibilities may be adaptable depending on the task
requirements.
 Collaborative approach: Success relies on teamwork and effective communication among
members.

FUNCTIONAL GROUPS:
Definition: Functional groups are permanent structures within an organization established to achieve
specific, ongoing goals. Unlike task groups, they continue to exist even after completing their initial
objectives.
Examples:
 Marketing department responsible for promoting and selling products.
 Customer service department handling customer inquiries and issues.
 Accounting department managing financial records and transactions.
Key characteristics:
 Enduring structure: The group has a defined structure and remains in place over time.
 Ongoing goals: Focuses on achieving consistent objectives within its functional area.
 Specialized expertise: Members possess skills and knowledge specific to their function.
 Collaborative workflow: Teams within the group work together towards shared departmental
goals.

INFORMAL GROUPS
 Definition: Form organically based on shared interests, friendships, or common experiences.
They lack a formal structure and often arise spontaneously.
 Examples: Friend groups, hobby clubs, online communities, support groups.
 Characteristics:
 Flexible and dynamic structure.
 Loosely defined goals and objectives, focused on social interaction and support.
 Informal rules and norms established by members.
 Emphasis on building relationships and social connection.
 Communication flows freely and organically.
INTEREST GROUPS:
 Definition: Enduring groups united by a shared interest beyond organizational goals.
 Characteristics: Long-lasting, informal structure, diverse composition, specific goals
unrelated to organizational objectives.
 Example: Students forming a study group for a specific class.
FRIENDSHIP GROUPS:
 Definition: Informal groups based on shared activities, beliefs, or values.
 Characteristics: Formed voluntarily, enjoy shared activities outside work, provide social
connection.
 Example: Employee yoga group, regional cultural association, monthly kitty party lunch
group.

REFERENCE GROUPS:
 Definition: Groups individuals use for self-evaluation and comparison.
 Characteristics: Shape behavior through social validation and comparison, influence
attitudes and values.
 Examples: Family, friends, religious affiliations.
PRIMARY GROUPS:
 Definition: Small, intimate groups with close personal interaction and high interdependence.
 Characteristics: Key to socialization, develop and sustain attitudes, values, and orientations.
 Examples: Family, close friend circles.
SECONDARY GROUPS:
 Definition: Larger, formal groups with less frequent, impersonal interaction.
 Characteristics: Supplement primary socialization, often organized around shared interests
or goals.
 Examples: Trade unions, member organizations (National Trust).
DETERMINANTS OF GROUP BEHAVIOUR –
Group behavior gets molded by various components which determine the connection, communication
and cooperation of individuals in a team. These factors, if well-understood, will enhance the success
of group work and the efficiency of the organization.
INTERNAL FACTORS:
 Group Composition: The types of people within the group, their skills, and personalities can
significantly impact behavior.
 Group Norms: Unwritten rules and expectations that guide member behavior.
 Roles and Accountabilities: The roles individuals play and their responsibilities within the
group affect interactions and outcomes.
 Leadership Approach: The leadership style and effectiveness can shape group dynamics and
performance.
 Communication Patterns: How information is shared and how members interact influences
group cohesion and decision-making.
 Cohesion and Group Identity: The sense of belonging and shared purpose within the group
can foster collaboration and motivation.
 Group Size: The number of members can affect interaction patterns and decision-making
processes.
 Decision-Making and Leadership Processes: How decisions are made and who leads the
group can influence outcomes and member satisfaction.
 Conflict Management: How disagreements and conflicts are handled impacts group dynamics
and productivity.
 Individual Attitudes and Beliefs: The values and perceptions of individual members can
influence group behavior.
 Interdependence: The extent to which group members rely on each other to achieve goals.
 Social Interaction: The way members interact and communicate with each other.
 Perception of a group: How members perceive their own group and other groups.
 Commonality of purpose: The shared goals and objectives that unite the group.
 Favoritism: The potential for bias or favoritism within the group.
 Skills and Role Clarity: Complementary skills and clear understanding of roles are crucial for
effective teamwork.
EXTERNAL FACTORS:
 Environment: The physical and social surroundings can influence group behavior.
 Technology: Technological advancements can impact communication, collaboration, and
productivity.
 Political Factors: Political climates and policies can affect group dynamics and decision-
making.
 Social Factors: Cultural norms, values, and social expectations can shape group behavior.
 Economic Factors: Economic conditions and resources can influence group activities and
outcomes.
 Organizational Culture: The overall culture of the organization can impact group behavior.
 External Pressures: Time constraints, deadlines, and external expectations can affect group
cohesion and decision-making.
 Cultural Diversity: Different perspectives and approaches stemming from cultural diversity
can enrich group dynamics.
 Threats and Competition: External threats or competition can lead to increased cohesion or
conflict within the group.
 External Expectations: The expectations of stakeholders outside the group can influence
group behavior.
 Structure: The organizational structure and hierarchy can influence group dynamics and
communication.
GROUP PROCESS –
The term "group process" is used to describe the method through which individuals within a given group
accomplish their goals. In most cases, organizations put in much effort to establish and pursue
objectives. However, they pay scant attention to the interactions among and within the group's most
valuable resource: its members. It is critical to attend to members' needs while working hard to achieve
goals. Supporting a cause, raising money, or educating the campus community greatly benefits from
joining a club.

Communication
Communication patterns are a simple indicator of group dynamics.
 Who is the one who is talking? How much longer? How frequently does it occur?
 Whom do individuals gaze at while they are talking to someone? Who follows whom in a
conversation? Whom does one interrupt? How do you typically interact with others (through
statements, questions, tone of voice, body language, etc.)?
 Where do we sit? Does everyone tend to cluster around the same seats?
 We can learn much about what else might be going on in the group based on the types of
observations we make (e.g., who leads whom or who influences whom).
Participation
Active verbal engagement is one sign of engagement. Check to see if there are any big differences in
how much the group members participate.
 Who are the major players, if anyone? Just who are these low-level contributors?
 Any changes in participation (lows becoming vocal, highs becoming silent)?
 In what ways might the group's interaction have contributed to this?
 How are those who do not speak to you dealt with? What does their seeming lack of response
mean? Consent? Disagreement? Disinterest? Fear? Etc.?
 Who is communicating with whom, if anyone?
 Is there a logical explanation for this based on how the team works together?
 Answering the question, "Who keeps the ball rolling?" Why? Is there a rationale for this,
according to how the group interacts?
Decision Making
Companies often make decisions without considering the consequences.
 Group-wide influence. Some group members like to make all the decisions, while others strive
to impose their will.
 Want more consensus or member participation in decision-making?
 Is there someone who self-authorizes (takes charge)? A person could start a debate by selecting
a topic.
 What happens when the group discusses it?
 Is conversation unfocused? Subject-changers Your thoughts?
 Who supports collective ideas and judgments? Does this cause them to
 Members pick agenda items. How will this affect another group?
 Does the group majority override certain members' dissent?
 Is everyone allowed to vote? How is this for the team's influence?
 Anyone who donated without being thanked or acknowledged
Organizational Roles
In order to reach common goals, members of a team must take on several essential responsibilities.
There are three basic categories for roles
 Task predominantly manifested in attempts to complete collaborative projects. Initiator-
contributor, information seeker-provider, elaborator, organizer, energizer, and recorder are all
roles that can be played.
 Maintenance is concerned with fostering better ties among participants. Patronizers,
Harmonizers, and Compromisers are all examples of such individuals.
 Indiscriminately Interested in One's Happiness Putting one's demands first, even at the
collective expense, Aggressor, attention whore, dominant, and obstructive are all examples.
Observing a process takes time and requires paying attention to every team member. By paying
attention to these questions and roles, you can learn more about how the group affects you.

Synergy
When two or more chemicals mix, their combined influence is greater than their independent effects,
and synergy describes this. This concept helps us understand teamwork. Two or more minds are more
effective than one in "group synergy." Teams can accomplish more and make better decisions than
individuals. Building synergistic partnerships take time and effort. Most people only invest if there is a
considerable gain and downside. Social loafing illustrates harmful synergy, and the whole appears
weaker than its parts. Research teams are often used in labs because they can draw on the experience of
their members to perform more research than if each researcher worked alone. They complement each
other synergistically, and their benefits exceed the costs. The social facilitation effect studies group
dynamics. The social facilitation effect occurs when a person's performance improves or degrades in
their presence. Social facilitation is more likely in a group but is not essential (people can work in the
presence of others even if they are not members of the group). Synergy requires four skills
 Interacting − When people from different backgrounds listen to each other's thoughts,
beliefs, and values, they learn new things from each other.
 Recognize − This is a supportive community where members value each other's opinions.
 Integrating − Once people appreciate one another's perspectives, they will seek ways to
combine them into shared ways of thinking and to do. At this level of integration, people
devise new ways to broaden their minds.
 Implementing − It is not enough to combine different perspectives. Effective transitions need
planning, goal-setting, self-discipline, and many change facilitation tools.
With a well-structured deployment plan, synergy is likely.
Conclusion
A study of model specification introduces heuristic, technological, and organizational models for more
accurate and verifiable models of group performance. One school of thought suggests that group-
process factors take a back seat to more technological and economic ones when modeling team success.
It talks about how to choose the right level of analysis, plan research on how well work groups work,
define work groups, and do tests with samples representative of the whole.

8 Processes from Executing Process Group (PMP Exam)

The Executing Process Group requires work on the following key things.
Do note that these are not actual Process names as defined in the PMBOK guide, but the actual
work required. It may not be in sequence, and you can do these activities in any order as they are
required on your project.
 Acquire the team who will do most of the work.
 Work to produce product scope.
 Recommend changes, defect repair, preventive and corrective action coming from Planning,
Executing and Monitoring and Controlling process groups.
 Send/Receive communications to stakeholders.
 Implemented approved changes, defect repairs, preventive and corrective actions as required.
 Continuous process improvement to the processes, documentation and plans.
 Team Building exercises
 Give recognition and rewards to team members and keep them motivated.
 Hold Progress meetings to ensure project is on track and any deviations are attended to at the
earliest.
 Use Work Authorization systems to allocate work.
 Request Seller responses to your tender and outsourcing needs.
 Select Seller for your procurement needs.
GROUP DEVELOPMENT –
A group can be defined as the interaction and interdependence of two or more people who come together
to achieve some common goals, and/or objectives. When two or more people come together to achieve
some particular objective or to fulfil social contact, they are thus forming groups. There are various
types of groups based on their motives. Generally, groups are classified as Formal Groups and Informal
Groups. Formal groups can be defined as the groups which are formed in organisations (to contribute
to organisational goals) based on the similarities of objectives, streams, and qualifications. Informal
groups can be defined as groups formed by instincts for the objective of social contact.
STAGES OF GROUP DEVELOPMENT
For evolution, there are some predefined sequences of group development. Although not all the
groups follow the same sequence, the five-stage model is most prevailing and easy to follow.

TUCKMAN’S FIVE-STAGE GROUP DEVELOPMENT is a pre-defined process of group

development involving stages like Forming, Storming, Norming, Performing, and Adjourning.
1. FORMING
Forming stage is the very first stage of developing any group. At this point, the group’s objectives,
structure, leadership, and characteristics are not well-defined. There exists a great deal of uncertainty.
Members decide on what type of behaviours are acceptable, what kind of leadership type is to be
followed, and what similar characteristics the members of the group must possess. This stage is
completed and finished when people begin to identify themselves as a part of the group.
2. STORMING
The storming stage is one of the intragroup conflicts. Although there exists a sense of group acceptance,
the trait of individuality is over the counter. There is a conflict over who will control the group. This
stage is completed when there is a relatively clear hierarchy of leadership within the group.
3. NORMING
In this stage, close relationships develop, and the group of demonstrators cohesively. Group identity is
now formed at this stage. This norming stage is complete when the group structure solidifies and the
group has decided upon a common set of expectations of what defines correct member behaviour.
4. PERFORMING
The fourth stage is performing. At this stage, the structure and functioning of the group are clearly
defined and performed. The people are done with knowing and understanding the other group members
and now it is the time to do the tasks.
5. ADJOURNING
For temporary committees, teams, task forces, and similar groups that have a limited task to perform,
the adjourning stage is for wrapping up activities and preparing to disband. Some group members
remain satisfied and happy with the accomplishments of the group. Others may be sad over the loss of
friendships gained during the work group’s life.
GROUP NORMS
“Norms” are the unwritten rules that govern social behaviour and interactions. It informs the person
how to act within a particular group or society. They serve as a guide for individuals to understand
what is considered acceptable or unacceptable behaviour in a given situation. A norm is a rule of conduct
that has been recognised by group members to maintain uniform personal and group behaviour.
Group norms are “the oughts” or “should be” behaviour. They comprise sets of beliefs, feelings
and attitudes shared commonly by the group members. These are also called rules or standards of
behaviour that apply to members of the group. All groups have established norms, that is, satisfactory
standards of behaviour that are exchanged by the members of the group. Norms inform members what
they should do and what they should not do in certain situations thereby governing the behaviour of the
group members.
It can vary depending on social, cultural, and historical contexts. When norms are agreed to and
accepted by the group, they serve as a method of influencing the behaviour of the group members with
the least external controls. All groups, communities and societies have some norms however they can
differ among them.
TYPES OF GROUP NORMS
Group norms can be classified as given below:
1) Performance Norms: Working groups normally give their members precise ideas about how hard
they have to work, how to complete the given job, their degree of output, the exact level of delay that
is allowed, etc. These norms control the performance and productivity of each member.
2) Appearance Norms: These incorporate things like suitable dress, loyalty to the workgroup of
the organization, etc. Some organisations include formal dress codes.
3) Arrangement Norms: These norms emerge from informal workgroups and especially control social
informal workgroups and communication within the group.
4) Resource Allocation Norms: These norms may arise in the group or within the organisation and
encompasses things like pay, allotment of difficult job and allocations of new tools and equipment.
DEVELOPMENT OF GROUP NORMS:
1) Clear Statements Made by a Group Member: Clear statements made by the supervisors or
powerful members may be considered norms. For example, the supervisor may clearly state that coffee
breaks should be limited to ten minutes and this becomes a norm.
2) Critical Events in the Group’s History: Sometimes there is a crucial event in the history of the
group to sets an important standard. For example, a person who was standing near a machine got injured
in a workgroup. After this accident happened, a standard was established in this group that no one except
the operator is permitted to get within five feet of any machine.
3) Primacy: Primacy refers to the initial behaviour pattern that occurs in a group. For example, when
the first meeting of the group is conducted in a very formal manner between supervisors and
subordinates then the group anticipates future meetings to be conducted similarly.
4) Past Experience: The norms are developed as members bring their past experiences from other
groups in different organisations.
ASSUMPTIONS RELATED TO GROUP NORMS :
Various assumptions related to groups are as follows:
1) One assumption is that the person exists outside any group and that joining a group is in some form
doing something different from everyday life.
2) A second assumption is that entry into a group will take away the autonomy of any individual who
enters a group.
3) A third assumption is that there is something God has given about the individual and something
less than satisfactory about the power or influence of a group.
4) A fourth assumption is that it is possible for the psychological functioning of an individual to exist
independently of the groups to which the individual belongs.

GROUP COHESIVENESS –
Group cohesion refers to the degree to which members of a group are attracted to each other
and the group as a whole, leading to unity and a sense of belonging. It's essentially the "glue"
that holds a group together, fostering collaboration and shared goals.
Features of Group Cohesion
 The cohesive group have fewer members.
 Members of the cohesive teams are of similar interests or backgrounds.
 It has a high degree of status within organizations.
 Members are accessible to each other to maintain easy communication.
 Each cohesive team is physically remote from other groups in the organization.
 Cooperative behavior is rewarded regularly.
 Cohesive groups have a history of past success.
Factors Affecting Group Cohesiveness
Factors that affect group cohesiveness are:
1. Similarities of Attitudes and Values:
One of the major factors affecting team cohesion is the similarity in attitudes and values among group
members. It is basic human nature people enjoy and get attached to the people who have similar
opinions, morals, beliefs, and code of conduct as people with the same opinions provide the same kind
of social validation.
2. Size of the Group:
It is assumed that cohesiveness will decrease as the size of the group decreases. When the size of the
group increases the interaction with the members becomes more difficult and hence the goal is
hampered.
3. Time:
When people spend time with each other the more they will get close and hence it strengthens the
degree of cohesiveness.
4. Inter Dependency:
When each member has autonomous action, the cohesiveness between the members of such a group
would be less as opposed to the group whose members are doing the procedure and are relying upon
each other.
5. Management Behaviour:
If we talk about factors affecting group cohesiveness then management behavior plays a major role in
it. When a manager makes a close relationship with a few in groups that may cause unhealthy
competition amongst members of the group. It is important that managers reward cooperative
behavior so that the bond grows amongst the groups.

IMPORTANCE OF GROUP COHESIVENESS

 Performance: If there is great bonding amongst the group then the performance of the group
will become better. If management wants good performance it should encourage its employees
towards group cohesion.
 Satisfaction: When there is group cohesion the performance will increase and hence it will
bring satisfaction to the employees and they will work harder to achieve the goal.
 Assurance Pressure: When we talk about group cohesiveness characters and the behavior is
the most important factor. When there is a great bonding between the group then it is assured
that surely the task will be completed.
 Emotional Factors: When people work together and have strong bonding people feel
emotionally attached and hence people will work with each other in harmony and achieve the
goal together.

SMALL GROUPS –
In organizational behavior, small group behavior refers to the actions, thoughts, and feelings of
individuals within a group, often influenced by shared goals, norms, and interactions, impacting
individual and group performance.
Small groups, typically consisting of 3-10 people, are characterized by their size, allowing for more
intimate interactions and individual contributions compared to larger groups, and can be formed for
various purposes.
A small group is generally defined as a collection of three or more individuals who interact about some
common problem or interdependent goal and can exert mutual influence over one another.
Small groups, often consisting of 3 or more individuals, interact to achieve shared goals, exerting mutual
influence on one another.
There are various types of groups, including task-oriented and relational-oriented groups. Task-oriented
groups are formed to solve a problem, promote a cause, or generate ideas or information, while
relational-oriented groups are formed to promote interpersonal connections.
 Characteristics:
 Shared Goals: Groups are formed to achieve a common purpose or task.
 Interdependence: Members' actions affect each other, creating a sense of shared
fate.
 Shared Identity: Groups develop a sense of belonging and identity, often based on
their task or purpose.
 Norms and Roles: Groups establish rules and expectations for behavior (norms) and
assign roles to members.
 Cohesion: The degree to which members are attracted to and connected to the group.
 Size:
While the minimum is three, the upper limit can vary depending on the group's purpose, with groups
beyond fifteen to twenty members becoming difficult to classify as "small".
 Purpose:
Small groups can be formed for social gatherings, work projects, study sessions, or other activities.
 Examples:
 Family groups
 Friend groups
 Business partners
 Club groups
 Associations
 Committees
Advantages:
 Intimate Interactions: The smaller size allows for more personal and direct
communication.
 Individual Contributions: Each member has a greater opportunity to contribute and
participate.
 Stronger Relationships: The close-knit nature of small groups can foster stronger
bonds between members.
Disadvantages:
 Potential for Conflict: The close proximity and shared goals can sometimes lead to
conflict if not managed effectively.
 Dominance by Certain Members: Some individuals may dominate the discussion or
decision-making process.
 Lack of Diversity: Small groups may lack the diversity of perspectives and
experiences that larger groups can offer.
Small Group Learning:
 Small group learning is an educational approach that focuses on individuals learning
in small groups and is distinguished from learning climate and organizational
learning.
 Small group work can range from short, informal exercises to formalized problem
sets that make up the majority of class.
 Instructors can incorporate small group work into large lectures as well as seminars
and discussion sections.
Communication in Small Groups:
 Communication in small groups is a key aspect of their functioning.
 It involves members sharing information, ideas, and perspectives to achieve a
common goal.
 Effective communication is crucial for successful small group dynamics
TYPES OF SMALL GROUPS:
Small groups can be categorized as task-oriented (focused on achieving a specific goal or solving a
problem) or relational-oriented (focused on building connections and relationships), with examples
including study groups, clubs, teams, and family groups.
TASK-ORIENTED GROUPS:
Problem-Solving Groups:
These groups are formed to address a specific issue or challenge, such as a project team tackling a
complex task or a committee investigating a problem.
Decision-Making Groups:
These groups are tasked with making a decision or reaching a consensus, like a jury deliberating a
verdict or a board of directors voting on a proposal.
Project Teams:
These groups are formed to complete a specific project or task, such as a research team conducting an
experiment or a construction crew building a building.
Service Groups:
These groups focus on providing a service or meeting a need, like a volunteer organization or a
charity.
Advocacy Groups:
These groups aim to promote a cause or raise awareness about an issue, like a political group or a
social justice organization.
RELATIONAL-ORIENTED GROUPS:
Primary Groups:
These groups are characterized by strong emotional bonds and frequent interactions, such as family
and close friendship groups.

Secondary Groups:
These groups are formed based on shared interests or activities, and interactions are less frequent and
less emotional than in primary groups, like a book club or a sports team.
Social Groups:
These groups are formed for social interaction and enjoyment, such as a club or a hobby group.
Support Groups:
These groups provide emotional support and understanding to members facing similar challenges, like
a therapy group or a weight loss group.

Leisure Groups:
These groups are formed for recreational activities, such as a sports team or a hiking club
Other Types of Small Groups:
 Buzz Groups: Short, informal discussions in a classroom or meeting setting.
 Student-led groups: Students decide on the topic and how it will be discussed.
 Self-help groups: Students run by students using the tutor as a resource.
 Debates: The teacher or students set up a debate between two opposing positions.
 Role play: Students take on specific roles and act out the views or actions associated with
those roles.
 Virtual Groups: Groups that meet primarily or exclusively online.

GROUP DECISION MAKING

Group decision-making commonly known as collaborative decision-making is a situation faced when
individuals collectively make a choice from the alternatives before them.
The decision is then no longer attributable to any individual group member as all the individuals and
social group processes like social influence contribute to the decision outcome.
The decisions made by groups are mostly different from those made by individuals. For example, groups
tend to make decisions that are more extreme than those made by individual members, as individuals
tend to be biased.

ADVANTAGES OF GROUP DECISION MAKING

Group decision making has two advantages over individual decision making.
Synergy
It is the idea that the whole is greater than the aggregate of its parts. When a group makes a decision
collectively, its judgment can be powerful than that of any of its members. Through discussing,
questioning, and collaborative approach, group members can identify more complete and robust
solutions and recommendations.
Sharing of information
Group decisions take into account a wider scope of information as each group member may contribute
distinct information and expertise. Sharing information increases understanding, clarifies issues, and
facilitates movement towards a collective decision.
Disadvantages of Group Decision Making
The major disadvantages of group decision making are as follows −
Diffusion of Responsibility
Group decision making results in distribution of responsibility that results in lack of accountability for
outcomes. In this way, everyone is responsible for a decision, and no one really is. Moreover, group
decisions can make it easier for members to refuse personal responsibilities and blame others for bad
decisions.
Lower Efficiency
Group decisions can sometimes be less efficient than individual decisions. It takes additional time
because there is a need of active participation, discussion, and coordination among group members.
Without good facilitation and structure, meetings can get eliminated in trivial details that may matter a
lot to one person but not to the others.
Groupthink
One of the biggest disadvantage of effective group decision making is groupthink. It is a psychological
phenomenon that occurs within a group of people in which the wish for harmony or conformity results
in an illogical or dysfunctional decision-making outcome.
By refraining themselves from outside influences and actively suppressing opposing viewpoints in the
interest of minimizing conflict, group members reach a consensus decision without critical evaluation
of substitute viewpoints.
GROUP DECISION-MAKING TECHNIQUES
In order to eliminate group think and group shift from a group, we can use four different techniques that
will help us make a collaborative decision that is best for the group. These techniques are −
 Brainstorming
 Nominal group thinking
 Didactic technique
 Delphi technique
BRAINSTORMING
This technique includes a group of people, mostly between five and ten in number, sitting around a
table, producing ideas in the form of free association. The main focus is on generation of ideas and not
on evaluation of these ideas.
If more ideas can be originated, then it is likely that there will be a unique and creative idea among
them. All these ideas are written on the blackboard with a piece of chalk so that all the team members
can see every idea and try to improvise these ideas.
Brainstorming technique is very effective when the problem is comparatively precise and can be simply
defined. A complex problem can be divided into parts and each part can be dealt with separately at a
time.
NOMINAL GROUP THINKING
This technique is similar to brainstorming except that this approach is more structured. It motivates
individual creativity. Members form the group for namesake and operate independently, originate ideas
for solving the problem on their own, in silence and in writing. Members do not communicate well with
each other so that strong personality domination is evaded.
The group coordinator either collects the written ideas or writes them on a large blackboard so that each
member of the group can see what the ideas are. These ideas are further discussed one by one in turn
and each participant is motivated to comment on these ideas in order to clarify and improve them. After
all these ideas have been discussed, they are evaluated for their merits and drawbacks and each actively
participating member is needed to vote on each idea and allot it a rank on the basis of priority of each
alternative solution.
The idea with the highest cumulative ranking is selected as the final solution to the problem.
DIDACTIC INTERACTION
This technique is applicable only in certain situations, but is an excellent method when a situation
actually demands it. The type of problem should be such that it generates output in the form of yes or
no. Say for example, a decision is to be made whether to buy or not to buy a product, to merge or not
to merge, to expand or not to expand and so on. These types of decision requires an extensive and
exhaustive discussion and investigation since a wrong decision can have serious consequences.
There are many advantages as well as disadvantages of this type of situation. The group that makes the
decision is divided into two sub-groups, one in favor of the “go” decision and the opposing in favor of
“no go” decision.
The first group enlists all the “pros” of the problem solution and the second group lists all the “cons”.
These groups meet and discuss their discoveries and their reasons.
After tiring discussions, the groups switch sides and try to find weaknesses in their own original
standpoints. This interchange of ideas and understanding of various viewpoints results in mutual
acceptance of the facts as they exist so that a solution can be put together around these facts and
ultimately a final decision is reached.

DELPHI TECHNIQUE
This technique is the improvised version of the nominal group technique, except that it involves
obtaining the opinions of experts physically distant from each other and unknown to each other.
This isolates group members from the undue influence of others. Basically, the types of problems sorted
by this technique are not specific in nature or related to a particular situation at a given time.
For example, the technique could be used to explain the problems that could be created in the event of
a war. The Delphi technique includes the following steps −
 The problem is first identified and a panel of experts are selected. These experts are asked to
provide potential solutions through a series of thoughtfully designed questionnaires.
 Each expert concludes and returns the initial questionnaire.
 The results of the questionnaire are composed at a central location and the central coordinator
prepares a second set of questionnaire based on the previous answers.
 Each member receives a copy of the results accompanied by the second questionnaire.
 Members are required to review the results and respond to the second questionnaire. The
results typically trigger new solutions or motivate changes in the original ideas.
 The process is repeated until a general agreement is obtained.
ELECTRONIC MEETINGS
Electronic Meeting is defined as a virtual meeting held on Google Meet, Zoom, or any other platform,
to discuss the problem and find various potential solutions. This approach is less costly and there is no
need for physical availability. In this way, anyone can take part in the decision-making process
anywhere in the world. This technique is mostly used by remote workers to discuss things. This is the
most interesting and unique approach to decision-making. This came into use at the time of COVID-19
and after that, this approach or technique was continued in most organisations or firms.
TEAM BUILDING
Team building is a crucial process that aims to strengthen the effectiveness and efficiency of a
group of individuals working together towards a shared goal. It involves the formation of cross-
functional teams that engage in regular interaction, mutual influence, and information sharing to achieve
collective objectives. The concept of team building recognizes the value of complementary skills, a
common purpose, performance goals, and shared accountability among team members.
In the early 1900s to 1950s, management scholars, such as Frederick Taylor, focused on dividing tasks
into smaller components for unskilled workers to perform repetitively. However, the contemporary
understanding of team building acknowledges the significance of teams as social entities within
organisations. Teams are now recognized as catalysts for cost reduction, quality improvement,
productivity enhancement, innovation stimulation, and positive worker-management relationships.
Objective of Team Building
 The ultimate objective of team building is to foster effective teamwork, where individuals
collaborate harmoniously towards a collective goal. It entails activities that encourage team
members to reflect on their behaviours, develop actionable plans, and enhance the overall
efficiency and effectiveness of the team.
 Team building can be applied to existing teams comprising managers and subordinates, as
well as newly formed groups.
 Its purpose is to assist teams in identifying, diagnosing, and resolving their challenges,
thereby improving task completion and achieving exceptional outcomes.
 Team building aims to cultivate a positive work environment, promote collaboration, and
drive effective team performance through enhanced communication, trust, and alignment
toward shared objectives.
 It plays a pivotal role in fostering a cohesive and productive team that thrives on synergy and
achieves remarkable results.
PROCESS OF TEAM BUILDING
Lupin Laboratories implemented a well-defined team-building process consisting of several key phases:
1. Selection: The initial phase involved a careful screening process to identify individuals who
demonstrated exceptional performance. The focus was on handpicking executives who
exhibited the potential to contribute significantly to the teams.
2. Grooming: This stage emphasized the development of business acumen and the transformation
of team members into well-rounded business managers, surpassing their functional expertise.
The selected individuals underwent a comprehensive three-month cross-
functional training program, enabling them to gain a deep understanding of the company and
its overarching corporate strategies.
3. Training: Building upon their functional expertise, team members then underwent an intensive
one-month training program designed to enhance their leadership skills. The training module
aimed to foster team spirit, improve communication skills, and foster strong interpersonal bonds
within the company. It encompassed various aspects, including effective presentations,
proficient communication techniques, adept verbal and non-verbal behaviour, active listening
and questioning skills, polished public speaking abilities, assertiveness training, and impactful
presentation skills.
4. Appraisal: A vital aspect of the team-building process was the appraisal phase, which spanned
five days. This phase incorporated self-evaluations and evaluations from colleagues. The
program focused on assessing crucial competencies such as recall, concept retention,
commitment to improvement, receptiveness to feedback, alignment with the company’s values,
accurate assessment of others’ abilities, and honed observation skills.
ADVANTAGES OF TEAM BUILDING:
1. Improved Communication: Team building activities encourage open and effective
communication among team members. By promoting active listening, expressing ideas, and
providing constructive feedback, communication barriers are reduced, leading to better
understanding and collaboration.
2. Enhanced Problem-Solving Skills: Team-building exercises often involve problem-solving
tasks that require teams to work together to find solutions. This fosters the development of
critical thinking, creativity, and innovative approaches to overcome challenges, ultimately
improving problem-solving skills within the team.
3. Strengthened Trust and Relationships: Team building activities build trust among team
members, as they engage in shared experiences, rely on each other’s strengths, and support one
another. This trust creates a foundation for stronger relationships, improved cooperation, and
effective conflict resolution.
4. Increased Diversity and Inclusion: Team building promotes diversity and inclusion by
bringing together individuals with different backgrounds, perspectives, and skills. This
diversity contributes to a broader range of ideas, creativity, and innovation within the team,
leading to improved decision-making and problem-solving capabilities.
5. Enhanced Team Morale and Motivation: Team building initiatives boost team morale by
fostering a positive and supportive work environment. When team members feel valued,
included, and recognized for their contributions, their motivation and commitment to achieving
shared goals are heightened.
LIMITATIONS OF TEAM BUILDING
1. Limited Consideration of Organisational Variables: One limitation of team building is its
tendency to focus solely on working groups, overlooking other important organisational factors
such as technology, structure, and external variables. Taking a holistic approach that considers
these variables is crucial for comprehensive team development.
2. Challenges with New Group Formation: Forming new groups can present challenges in
team-building efforts. Introducing new members can disrupt existing dynamics, creating
confusion around roles and relationships. Differences in technical competencies and integration
difficulties may hinder effective collaboration.
3. Task-Oriented Approach over Relationship-Building: In some instances, team-building
activities may inadvertently prioritize task completion rather than fostering strong interpersonal
relationships among team members. Striking a balance between task-oriented goals and
nurturing relationships is essential for long-term team success.

UNIT - V ORGANIZATIONAL CHANGE AND DEVELOPMENT

INTRODUCTION –
Organizational Change
Organizational change refers to alterations in a company's structure, culture, technology, or processes,
often driven by external factors like competition or internal factors like strategic shifts, aiming to
improve performance or adapt to changing circumstances.
Organizational change refers to the actions in which a company or business alters a major component
of its organization, such as company culture, the underlying technologies or infrastructure it uses to
operate, or its internal processes.
Importance of Organizational Change Management:
 Adaptability: Organizations must be able to adapt to changing environments to survive and
thrive.
 Improved Performance: Change can lead to increased efficiency, productivity, and
profitability.
 Innovation: Change can foster innovation and the development of new products or services.
 Employee Engagement: Effective change management can improve employee morale and
engagement.
Examples of Organizational Change:
 Implementing new technology: Adopting new software or hardware to improve
operations.
 Restructuring: Changing the organizational structure or hierarchy.
 Changing company culture: Fostering a more collaborative or innovative work
environment.
 Developing new products or services: Expanding the company's offerings to meet
changing customer needs.

ORGANIZATIONAL CHANGE OCCURS/ REASONS:

 External Factors:
 Market Dynamics: Changes in customer preferences, competition, or market trends.
 Technological Advancements: New technologies that can disrupt industries or offer
new opportunities.
 Economic Conditions: Economic downturns, recessions, or shifts in global markets.
 Regulatory Changes: New laws, regulations, or industry standards.
 Social and Cultural Shifts: Changes in consumer behavior, values, or demographics.
 Disasters: Natural disasters or other unforeseen events that disrupt operations.
 Internal Factors:
 Strategic Shifts: Changes in a company's mission, vision, or strategic goals.
 Organizational Growth: Expansion into new markets or product lines.
 Leadership Changes: New leadership may introduce new strategies or cultures.
 Operational Inefficiencies: Identifying areas for improvement in processes or
technology.
 Employee Skill Gaps: Addressing a need for new skills or training.
NATURE OF ORGANIZATIONAL CHANGE:
 Dynamic and Multidimensional: Organizational change is not a static event, but
rather a continuous process that involves various aspects of an organization.
 Inherent in Business: Change is an inevitable part of the business environment, as
organizations must adapt to remain competitive and relevant.
 Driven by Internal and External Factors: Change can be triggered by both internal
factors (e.g., changes in management, internal inefficiencies) and external factors
(e.g., technological advancements, market trends, economic shifts).
 Impacts Various Levels: Organizational change can affect individuals, groups, and
the organization as a whole.
 Can be Reactive or Planned: Change can be a response to unforeseen circumstances
(reactive) or a deliberate strategy to achieve specific goals (planned).
 Requires Management: Effective change management is crucial for successful
implementation, including planning, communication, and employee buy-in.

TYPES OF ORGANIZATIONAL CHANGE:

1. Strategic change
Organizations implement strategic changes to their businesses to achieve goals, boost competitive
advantage, or respond to market opportunities or threats. A strategic change includes changes to the
business’s policies, structure, or processes. Upper management and the Chief Executive Officer are
often responsible for strategic change.
Here are three examples of strategic change in an organization:
 Updating your mission as you grow: When companies first launch, the initial focus is often
on lead generation and client acquisition. However, once the company has an established
customer base, the focus could shift to upselling. When the main mission changes, the
company’s mission also needs to evolve.
 Innovation: Strategic change through digital innovation refers to using skills and resources to
develop new ideas or improve existing offerings to meet customers’ new and changing
demands. Focusing on innovation often requires investing heavily in research and
development activities and the latest technology.
 Restructuring: Restructuring leads organizations to reorganize aspects of their company to
survive a massive blow or to maximize their already profitable business. Restructuring can
result in downsizing or upsizing the workforce. For example, during COVID-19, the tourism
and hospitality sectors were two of the worst-hit industries regarding employee lay-offs and
losses.
2. People-centric organizational change
While all changes affect people, people-centric organizational changes include instituting new
parental leave policies or hiring new hires. When implementing a people-centric change, leaders must
remember that employees naturally resist change.
A people‐centric change requires transparency, communication, effective leadership, and an
empathetic approach.

3. Structural change
Structural changes are changes made to the organization’s structure that might stem from internal or
external factors and typically affect how the company is run. Structural changes include major shifts in
the management hierarchy, team organization, the responsibilities attributed to different departments,
the chain of command, job structure, and administrative procedures.
Circumstances that lead to structural change include mergers and acquisitions, job duplication, changes
in the market, and process or policy changes. These changes often overlap with people-centric changes
as they directly affect most, if not all, employees.
4. Technological change
Increased market competition and constantly evolving technology lead to technological change within
organizations. Technology change often involves introducing new software or systems to improve
business processes through SaaS change management. However, technology project goals are often
improperly defined and poorly communicated, which scares and frustrates employees and ultimately
leads to resistance.
Technology change management is about identifying new technology and implementing a digital
strategy for improved productivity and profitability.
Here are two examples of technological change:
 Digital transformation: Digital transformation is defined as the integration of digital
technology across all business domains, resulting in fundamental changes to how a business
operates and delivers value to its customers. While technology is the cornerstone of digital
transformation, a human component of change management evolves along with your
technology. This is why change management must be the center of your digital transformation
vision. Manage change empathetically and help your employees understand how it can improve
their work life. It’s important to allow your employees appropriate timelines to adapt to the new
technologies and the new agile, customer-centric, design-thinking mindset.
 Introduction of new technology: Technology is designed to make our lives easier, but learning
curves can make technology-related changes tricky to implement. People generally prefer to
stick with what they know. When introducing new technology, you must have a solid transition
plan. People want to know why the technology is necessary, what makes it better than previous
solutions, and how you will support them during the transition.
5. Unplanned change
Unplanned change is defined as a necessary action following unexpected events. Unplanned change
cannot be predicted but can be dealt with by effective change management.
Here are two examples of unplanned change:
 Shift to remote work: Situations such as the unexpected mass shift of employees to remote
work due to pandemics like COVID-19 or economic downturns require efficient organizational
change management skills. Draft a well-defined change management strategy that specifies the
aim, goal, purpose, and direction you want the change to follow. The strategy defines the
change’s features and characteristics, the timeframe, risks, limitations, and potential employee
resistance.
 Loss of critical personnel: An unplanned change can also occur if another company or a
competitor wooes away one of your most valued team members with an exciting promotion or
higher salary. In the event of employee turnover in critical roles, succession planning is the
most effective way to minimize the affect of such change. A succession plan identifies critical
positions, future staffing needs, key knowledge documentation and transfer, and the people who
could fill these future roles within an organization and helps develop action plans accordingly.
6. Remedial change
Remedial changes are reactionary. This type of change occurs when a problem is identified and a
solution needs to be implemented. As these changes are designed to address an issue, they call for
immediate action.
Reactionary change may not be ideal, but it’s inevitable. The benefit of the remedial change is that
judging its success is quick and simple with just one question – was the problem solved or not?
TRANSFORMATIONAL CHANGE VS. INCREMENTAL CHANGE
Transformational Change
Transformational change occurs when an organization significantly changes or shifts its operations,
technical stack, product offerings, culture, or structure. Examples of types of transformation change
include:
 Merging with or acquiring a company.
 Changing revenue models from one-time payment to subscription-based.
 Pivoting to a new line of products.
 Implementing a new, organizational-wide HCM that replaces manual people processes.
Incremental Change
Incremental change occurs gradually in a phased approach. This type of change is typically easier to
implement, requires fewer resources, and has less impact. Examples types of incremental change
include:
 Slowly releasing new product updates over time. An example is the smartphone, which has
kept the core phone concept but has evolved over a decade.
 Implementing minor process updates over time to improve operations.
 Transitional periods when c-suite or other leaders retire.

5 Strategies to Drive Successful Organizational Change

1. Clear vision and goals

It’s essential to understand the reasons for the change, how it will impact the business outcomes, and
when it will be considered successful.
Formulating and sharing a comprehensible purpose, vision, and goals helps employees and leaders
understand the “why” of the change and is critical for the overall success of a change’s
implementation.

2. Prioritization

It’s impossible to change everything at once, so it is critical to prioritize the matters you want to tackle
first. For example, implementing three new enterprise applications one after another, not all at once.

3. Secure buy-in from your entire organization

It is essential to include all key stakeholders, from leadership and management to executives, to
minimize an organization’s resistance to change. This helps employees feel heard, included, and valued
– allowing for any conflicts to be aired early in an implementation project and quickly resolved.
Develop a written communication plan to inform all stakeholders about the change. The plan must
address all concerns, including what the new business will look like. The communication must be two-
way that provide employees with opportunities to ask questions and share their concerns.

4. Build a change implementation plan

A successful change implementation requires a detailed plan to highlight critical milestones

systematically. For an effortless rollout, you must plan all of these aspects – project scope, integrations,
resources, communication, time, cost, procurement, and risks. A practical implementation plan
accelerates the pace of change implementation by anticipating and overcoming barriers and resistance
to change.

5. Focus on training & support

On-demand training and support are vital for reinforcing change. You can implement different change
management tools that provide training, create knowledge bases, track progress, etc.

PROCESS OF ORGANISATIONAL CHANGE

THE CHANGE PROCESS: KURT LEWIN’S MODEL

Kurt Lewin’s model of planned change outlines three stages that organisations go through when
implementing change. Stages are explained below:
1. Unfreezing
The first stage is known as “unfreezing,” which involves breaking away from established practices and
preparing individuals to embrace new alternatives. During this stage, outdated beliefs, processes, and
behaviours are discarded in favour of more suitable approaches for the current situation. The goal is to
help organisational members understand that the status quo is no longer viable given the evolving
demands of the environment.
Unfreezing involves several steps:
1. Recognising the Driving Forces: Managers must develop a keen awareness of major
environmental changes and internal issues that necessitate change. By understanding the
pressures for change, they can effectively identify the need for transformation.
2. Increasing the Driving Forces: Once the need for change is recognised, it is essential to
communicate this need to the people involved. By explaining the reasons behind the change,
individuals are more likely to embrace it willingly.
3. Managing the Resisting Forces: Resistance to change often arises when individuals perceive
potential harm or negative impact on their interests. It is crucial to address these concerns and
fears by highlighting the benefits of the proposed changes and alleviating any misconceptions.
To achieve unfreezing, various techniques can be employed, such as:
 Education: Providing information and knowledge regarding the need for change and its
advantages.
 Communication: Engaging in open discussions to clarify the rationale behind the change and
address any uncertainties.
 Participation in decision-making: Involving employees in the change process by encouraging
their input and ideas.
 Negotiation through the exchange of rewards: Offering incentives or rewards to motivate
acceptance of the change.
 Persuasion: Shaping perceptions and attitudes through effective communication and influence
strategies.
 Encouragement and Support: Providing the necessary resources and assistance to facilitate
the transition.
These techniques aim to either strengthen the driving forces that propel behaviour away from the
status quo or weaken the restraining forces that hinder progress. By unfreezing existing mindsets and
behaviours, organisations can create a receptive environment for change and lay the foundation for
subsequent stages of the change process.
2. Changing or Moving
Once individuals embrace the need for change, the proposed changes are introduced systematically,
fostering new learning and the adoption of new behaviours. This moving phase encompasses key
elements that facilitate a successful transition:
 Encouraging Compliance: In some cases, change may be enforced through incentives or
consequences. However, true transformation requires more than compliance; it requires
internalisation and identification.
 Internalisation: Change becomes meaningful when individuals experience situations that call
for new behaviours. Through firsthand encounters, they begin to understand the importance of
change and gradually internalise new ways of behaving.
 Identification: Individuals also identify suitable behavioural models within their environment.
They recognise role models whose actions align with the desired change and choose to emulate
them.
During the implementation of change, unexpected challenges may arise, requiring effective problem-
solving. This period is marked by experimentation, ambiguity, and the need for careful guidance.
To navigate this phase successfully, we should consider the following approaches:
1. Transparent Communication: Communicate the purpose, benefits, and expected outcomes of
the change to all members. This ensures a shared understanding and aligns efforts toward a
common goal.
2. Supportive Training and Resources: Provide comprehensive training programs and resources
to help individuals acquire the skills and competencies needed for new behaviours. Offer
guidance and assistance to address any challenges that emerge along the way.
3. Continuous Feedback and Improvement: Establish feedback channels to gather insights and
suggestions from employees. This enables ongoing refinement of the change implementation
strategy based on real-time input, fostering a sense of ownership and engagement.
4. Foster Adaptability: Cultivate a culture of adaptability and openness to change. Encourage
individuals to embrace new alternatives and behaviours, creating an environment that supports
growth and development.
5. Leadership Guidance: Effective leadership plays a vital role in guiding organisational
members through the change process. Leaders should provide clear direction, and support, and
serve as role models for the desired behaviours, inspiring others to embrace the change.
By providing careful guidance and support, organisations can navigate the implementation of change
effectively. This enables individuals to successfully transition and adopt the new behaviours and
alternatives introduced, ultimately driving positive outcomes for the organisation.
3. Refreezing
The final phase of the change process is refreezing, where the changes implemented during the moving
phase become ingrained as a permanent part of the organisation’s culture. During this phase, members
of the organisation internalise the new beliefs, attitudes, and behaviours they have learned. It is the
responsibility of the manager, acting as the change agent, to ensure the effective integration of these
new behaviours with existing patterns. Without proper internalisation, there is a risk of individuals
reverting to old ways of doing things.
To solidify the changes and prevent regression, organisations must strive for a state of dynamic
equilibrium. This entails maintaining a balance among various components that support the desired
behaviours. Continuous reinforcement is essential to ensure the sustainability of the acquired
behaviours. Acceptance of new practices and stabilisation of change occurs when sufficient positive
outcomes and reinforcements are provided.
We should consider the following approaches during the refreezing phase:
1. Integration and Alignment: Ensure that the new behaviours, beliefs, and attitudes align with
the overall organisational goals and values. Seamlessly integrate them into existing systems and
processes to foster consistency and coherence.
2. Ongoing Support: Provide continuous support and resources to reinforce newly acquired
behaviours. This may include training, coaching, and mentoring to assist individuals in adapting
to the changes. Supportive leadership and a positive organisational climate are critical in
maintaining the desired behaviours.
3. Celebrate Success: Recognise and celebrate accomplishments related to the change
implementation. This helps reinforce positive outcomes and motivates individuals to continue
embracing new behaviours.
4. Feedback and Evaluation: Establish feedback mechanisms to monitor the effectiveness of the
change and gather insights for improvement. Regular evaluation ensures the sustained adoption
of desired behaviours and allows for further refinement, if necessary.
5. Foster an Organisational Culture: Cultivate a culture that values and supports the desired
behaviours. This involves aligning performance management systems, rewards, and recognition
programs to reinforce the change and encourage its continuation.

THE SCOPE OF ORGANIZATIONAL CHANGE encompasses all aspects of an organization that

are affected by a planned or unplanned alteration, including structure, processes, culture, technology,
and employee roles, with the goal of improving performance or adapting to new circumstances.
 Organizational Structure:
This includes changes to the hierarchy, reporting lines, departmentalization, and overall design of the
organization.
 Processes and Procedures:
This involves modifying workflows, systems, and operational routines to improve efficiency,
effectiveness, or compliance.

 Culture and Values:

Organizational change can aim to foster a new culture, strengthen existing values, or address cultural
clashes that hinder performance.
 Technology:
Implementing new technologies, upgrading software, or adopting innovative tools can be a key part of
organizational change.
 Employee Roles and Skills:
Change may necessitate adjustments to job responsibilities, skill requirements, or training programs to
support new processes or strategies.
 Strategy and Vision:
Organizational change can involve shifts in the company's overall direction, goals, and strategic
priorities.

FUNCTIONS OF ORGANIZATIONAL CHANGE

Organizational change management functions to help businesses adapt to a dynamic environment
by managing the effects of new processes, structural changes, or cultural shifts, ensuring a smooth
transition and minimizing disruption.
1. Adapting to a Changing Environment:
 Market Trends:
Organizations must adapt to evolving customer needs, competitive pressures, and technological
advancements to remain relevant and competitive.

 External Shifts:
Change management helps organizations respond to external factors like economic downturns,
regulatory changes, and geopolitical events.
2. Improving Performance and Efficiency:
 Optimizing Processes:
Change management can streamline processes, improve resource utilization, and enhance productivity.

 Cost Reduction:
By implementing changes, organizations can identify and eliminate inefficiencies, leading to cost
savings.
3. Driving Innovation and Development:
 Exploring New Horizons:
Change management encourages organizations to embrace innovation and explore new opportunities,
fostering growth and competitiveness.

 Staying Competitive:
By adapting to changing market trends, organizations can remain ahead of the curve and maintain a
competitive edge.
4. Enhancing Employee Engagement:
 Involving Employees:
Engaging employees in the change process can lead to higher morale, job satisfaction, and improved
performance.
 Building Buy-in:
Clear communication and transparency about the reasons for change can help employees understand
and accept the need for change.
5. Managing the Change Process:
 Planning and Execution:
Change management involves developing a plan for implementing changes and ensuring that they are
executed effectively.
 Communication and Training:
Providing clear communication and necessary training to employees can help them adapt to the changes
and perform their roles effectively.
 Monitoring and Evaluation:
Regularly monitoring the progress of changes and evaluating their impact can help organizations
identify areas for improvement and ensure that the changes are achieving the desired results.

ORGANIZATIONAL CULTURE –
Organizational culture, also known as company culture, encompasses the shared values, beliefs,
attitudes, and practices that shape employee behavior and define how an organization operates. It's the
"personality" of a company, influencing everything from employee interactions to how the company is
perceived externally.
Here's a more detailed breakdown:
 Definition:
Organizational culture is the set of values, beliefs, attitudes, systems, and rules that outline and
influence employee behavior within an organization.
 Importance:
A strong and positive organizational culture can lead to increased employee engagement, productivity,
and job satisfaction, as well as a stronger competitive edge.
 Elements:
 Values: The core principles that guide the organization's actions and decisions.
 Beliefs: The shared assumptions and understandings about how the organization
works.
 Attitudes: The general feelings and opinions employees have about the organization
and its culture.
 Practices: The behaviors and routines that are common within the organization.
 Types:
 Adhocracy culture: Emphasizes flexibility, innovation, and adaptability, thriving in
fast-changing environments.
 Clan culture: Fosters a collaborative, family-like environment by valuing
commitment, participation, and allegiance.
 Hierarchy culture: Is process-oriented, structured, and emphasizes control and
efficiency.
 Market culture: Is results-oriented, competitive, and focuses on achieving goals and
outcomes.
 Benefits of a strong culture:
 Competitive edge: Innovation and customer service can lead to a competitive
advantage.
 Consistent employee performance: A strong culture can lead to more efficient and
effective employees.
 Team cohesiveness: A positive culture can foster strong team relationships and
collaboration.
 High employee morale and job satisfaction: Employees are more likely to be happy
and engaged in a positive work environment.
 Alignment towards goal achievement: A strong culture can help employees
understand and work towards the organization's goals.
 Examples:
 Google: Known for its adhocracy culture, encouraging innovation and
experimentation.
 Companies with clan culture: Emphasize teamwork, collaboration, and employee
well-being.
 Companies with hierarchy culture: Have a strong focus on structure, rules, and
procedures.
 Companies with market culture: Prioritize results, competition, and achieving
targets.
CHANGING THE CULTURE –
Changing organizational culture is a gradual, consistent process of evolving behaviors and values to
align with new goals and vision, requiring leadership alignment, open communication, and employee
engagement.

 Strategic Alignment:
Cultural transformation helps organizations evolve to achieve their strategic objectives.
 Improved Employee Experience:
A positive culture fosters a better employee experience, leading to increased engagement, retention, and
morale.
 Achieving Specific Goals:
Cultural changes can be implemented to address specific issues, such as increased customer satisfaction
or improved employee feedback.
 Adaptability and Resilience:
A culture that embraces change is better equipped to navigate challenges and thrive in a dynamic
environment.
Key Steps for Successful Culture Change:
 Assess the Current Culture: Understand the existing culture, including its strengths and
weaknesses, through employee feedback, surveys, and observations.
 Define the Desired Culture: Clearly articulate the values, behaviors, and principles that the
organization wants to embody.
 Ensure Leadership Alignment and Commitment: Leaders must be on board and actively
model the desired behaviors.
 Communicate Openly and Regularly: Transparency and open dialogue are crucial for
building trust and buy-in.
 Focus on Behaviors and Actions: Change the way people act and interact, rather than just
talking about it.
 Provide Training and Development: Equip employees with the skills and knowledge they
need to embody the new culture.
 Celebrate Successes and Learn from Challenges: Acknowledge progress and use setbacks
as opportunities for improvement.
 Measure and Evaluate Progress: Regularly monitor the impact of the culture change
initiatives and make adjustments as needed.
 Be Patient and Persistent: Cultural change is a long-term process that requires ongoing effort
and commitment.
 Create Cultural Continuity: Plan for how the organization will respond to future challenges
and maintain the desired culture.
CHANGE MANAGEMENT –
Change management in OB is a structured approach to leading organizational change,
focusing on the people and processes involved to ensure a smooth and successful transition.
Importance:
It's crucial for organizations to adapt to evolving environments, implement new strategies, and improve
processes, and change management helps navigate these transitions effectively.
 Focus:
Rather than just focusing on the technical aspects of change, it emphasizes the human side, addressing
concerns, managing resistance, and fostering buy-in from employees.
 Key Areas:
 Planning and Communication: Developing a clear vision for the change,
communicating it effectively to all stakeholders, and addressing their concerns.
 Resistance Management: Identifying and addressing potential resistance to change,
whether it's due to fear, lack of understanding, or other factors.
 Training and Development: Providing employees with the necessary skills and
knowledge to adapt to the new processes or technologies.
 Leadership and Engagement: Involving leaders at all levels and engaging employees
in the change process to foster ownership and buy-in.
 Process Optimization: Identifying and improving processes to ensure efficiency and
effectiveness.
 Types of Change:
 Developmental Change: Focuses on incremental improvements and enhancements
to existing processes or products.
 Transformational Change: Involves significant shifts in strategy, culture, or
structure.
MODELS AND FRAMEWORKS:
KOTTER'S 8-STEP CHANGE MODEL: A well-known model that emphasizes creating a sense of
urgency, building a coalition, and ensuring short-term wins.
Kotter's 8-step change model, a framework for leading organizational change, involves creating
urgency, forming a guiding coalition, developing a vision and strategy, communicating the vision,
removing obstacles, generating short-term wins, sustaining momentum, and making change stick.
Here are the eight steps of the Kotter 8 step process, along with a simple explanation of each:
(Source: Adapted from Kotter 1996)
1. Creating an Urgency: This can be done in the following ways:
 Identifying and highlighting the potential threats and the repercussions which might
crop up in the future.
 Examining the opportunities which can be tapped through effective interventions.
 Initiate honest dialogues and discussions to make people think over the prevalent
issues and give convincing reasons to them.
 Request the involvement and support of the industry people, key stakeholders and
customers on the issue of change.
2. Forming Powerful Guiding Coalitions
This can be achieved in the following ways:
 Identifying the effective change leaders in your organizations and also the key
stakeholders, requesting their involvement and commitment towards the entire
process.
 Form a powerful change coalition who would be working as a team.
 Identify the weak areas in the coalition teams and ensure that the team involves many
influential people from various cross functional departments and working in different
levels in the company.
3. Developing a Vision and a Strategy
This can be achieved by:
 Determining the core values, defining the ultimate vision and the strategies for
realizing a change in an organization.
 Ensure that the change leaders can describe the vision effectively and in a manner that
people can easily understand and follow.
4. Communicating the Vision
 Communicate the change in the vision very often powerfully and convincingly.
Connect the vision with all the crucial aspects like performance reviews, training, etc.
 Handle the concerns and issues of people honestly and with involvement.

5. Removing Obstacles
 Ensure that the organizational processes and structure are in place and aligned with
the overall organizational vision.
 Continuously check for barriers or people who are resisting change. Implement
proactive actions to remove the obstacles involved in the process of change.
 Reward people for endorsing change and supporting in the process.
6. Creating Short-Term Wins
 By creating short term wins early in the change process, you can give a feel of victory
in the early stages of change.
 Create many short term targets instead of one long-term goal, which are achievable
and less expensive and have lesser possibilities of failure.
 Reward the contributions of people who are involved in meeting the targets.

7. Consolidating Gains
 Achieve continuous improvement by analysing the success stories individually and
improving from those individual experiences.
8. Anchoring Change in the Corporate Culture
 Discuss the successful stories related to change initiatives on every given opportunity.
 Ensure that the change becomes an integral part in your organizational culture and is
visible in every organizational aspect.
 Ensure that the support of the existing company leaders as well as the new leaders
continue to extend their support towards the change.

Advantages of Kotter’s Model

 It is an easy step by step model which provides a clear description and guidance on the entire
process of change and is relatively easy for being implemented.
 Emphasis is on the involvement and acceptability of the employees for the success in the
overall process.
 Major emphasis is on preparing and building acceptability for change instead of the actual
change process.
Disadvantages of Kotter’s Model
 Since it is a step by step model, skipping even a single step might result in serious problems.
 The process is quite time consuming (Rose 2002).
 The model is essentially top-down and discourages any scope for participation or co-creation.
 Can build frustration and dissatisfaction among the employees if the individual requirements
are given due attention.

BRIDGES TRANSITION MODEL: Focuses on the emotional and psychological aspects of change,
emphasizing the importance of understanding and managing the transition process.
The Bridges Transition Model, a framework developed by change consultant William Bridges, helps
organizations and individuals understand and manage the personal and human side of change by
focusing on the internal, psychological process of transition, which is distinct from the external event
of change itself.
Here's a breakdown of the model:
 Focus:
The Bridges Transition Model emphasizes the emotional and psychological responses of individuals
to change, rather than just the operational aspects.
 Key Concept:
It distinguishes between "change" (an external event) and "transition" (the internal process of adapting
to that change).
 Three Stages:
The model identifies three stages of transition:
 Ending, Losing, and Letting Go: This stage involves acknowledging the end of the
old way of doing things and dealing with the emotions associated with loss and
uncertainty.
 The Neutral Zone: This is a period of ambiguity and uncertainty where the old ways
are gone, but the new ways haven't fully emerged.
 The New Beginning: This stage involves embracing the new reality, building new
identities, and committing to the future.
 Application:
The model can be applied in various contexts, including organizational change, career transitions, and
personal life changes.
 Developed by:
William Bridges, a prominent organizational consultant, in his 1991 book, “Managing Transitions:
Making the Most of Change.”
The Bridges Transition Model helps organizations and individuals understand and more effectively
manage and work through the personal and human side of change. The model identifies the three
stages an individual experiences during change: Ending What Currently Is, The Neutral Zone and The
New Beginning. Developed by William Bridges, the Bridges Transition Model has been used by
leaders and management consultants for more than thirty years.
Bridges Transition Model
difference between change and transition
Change is the external event or situation that takes place: a new business strategy, a turn of leadership,
a merger or a new product. The organization focuses on the desired outcome that the change will
produce, which is generally in response to external events. Change can happen very quickly.
Transition is the inner psychological process that people go through as they internalize and come to
terms with the new situation that the change brings about. Empathetic leaders recognize that change can
put people in crisis. The starting point for dealing with transition is not the outcome but the endings that
people have in leaving the old situation behind.
Change will only be successful if leaders and organizations address the transition that people experience
during change. Supporting people through transition, rather than pushing forward is essential if the
change is to work as planned. This is key to capitalizing on opportunities for innovation and creating
organizational resilience.
stages of transition
Endings
Transition starts with an ending. This is paradoxical but true. This first phase of transition begins when
people identify what they are losing and learn how to manage these losses. They determine what is over
and being left behind, and what they will keep. These may include relationships, processes, team
members or locations.
Neutral Zone
The second step of transition comes after letting go: the neutral zone. People go through an in-between
time when the old is gone but the new isn’t fully operational. It is when the critical psychological
realignments and repatternings take place. It is the very core of the transition process. This is the time
between the old reality and sense of identity and the new one. People are creating new processes and
learning what their new roles will be. They are in flux and may feel confusion and distress. The neutral
zone is the seedbed for new beginnings.
New Beginnings
Beginnings involve new understandings, values and attitudes. Beginnings are marked by a release of
energy in a new direction – they are an expression of a fresh identity. Well-managed transitions allow
people to establish new roles with an understanding of their purpose, the part they play, and how to
contribute and participate most effectively. As a result, they feel reoriented and renewed.
ADKAR MODEL: Aims to facilitate individual transitions by addressing Awareness, Desire,
Knowledge, Ability, and Reinforcement.
The ADKAR Model is one of the most proven change models among enterprise organizations.
Founded by Prosci founder Jeff Hiatt in 1996, it focuses on guiding individuals through the change
journey by helping them realize the need for change, equipping them with the skills and knowledge
they need to adapt to it, and motivating them to embrace it fully.
The ADKAR Model is a goal-oriented change management model that focuses on managing change at
the individual level. ADKAR stands for Awareness, Desire, Knowledge, Ability, and Reinforcement,
representing the five key stages individuals must go through to adopt and sustain change successfully.
The ADKAR Model provides a structured approach for organizations to guide employees through the
change process, ensuring that they understand the need for change, are motivated to support it, have the
necessary knowledge and skills, and can sustain the new behaviors long-term.

 McKinsey 7S Model: Helps organizations understand their current state and identify
areas for improvement by examining seven interconnected factors: strategy, structure,
systems, shared values, style, skills, and staff.
The 5 Stages of the ADKAR Model
ADKAR stands for Awareness, Desire, Knowledge, Ability, and Reinforment. The Awareness and
Desire stages focus on preparing employees for a change (current state), the Knowledge and Ability
stages support employees as they adapt to change (transition state), and the Reinforcement stage helps
sustain the change (future state.)
five stages of the ADKAR Model in more detail:
 Awareness: This stage focuses on making individuals understand why the change is
necessary. It involves communicating the reasons for the change and the potential risks of not
making it. Without awareness, employees may resist the change due to a lack of
understanding or fear of the unknown.
 Desire: After building awareness, fostering a personal desire to support and participate in the
change is essential. This involves motivating employees to embrace the change by addressing
their concerns, demonstrating personal benefits, and securing buy-in. Without desire, even
well-informed individuals may remain resistant or disengaged.
 Knowledge: Knowledge refers to providing the information and training necessary for
individuals to know how to change. This includes teaching employees the new processes, tools,
or behaviors they must adopt. Knowledge is essential to ensure employees are fully prepared
to implement the change successfully.
 Ability: While knowledge equips individuals with the “know-how,” ability ensures they can
apply it in real-world situations. This stage focuses on building the skills and removing barriers
to change that may prevent its successful execution. Practice, support, and feedback are key to
developing the required ability.
 Reinforcement: To sustain the change, reinforcement is necessary. This stage ensures
employees follow new processes and behaviors after the initial change. It involves recognition,
rewards, and continuous monitoring to prevent regression to old habits and ensure the change
sticks long-term.
WORK STRESS MANAGEMENT –
In organizational behavior, work stress management involves understanding the causes and impact of
stress, implementing strategies to reduce it, and fostering a positive work environment to promote
employee well-being and productivity.
 Stress in organizational behavior refers to the physiological, psychological, and behavioral
responses individuals experience when they perceive a mismatch between the demands of their
work environment and their ability to cope with those demands.
 It's a common issue that can negatively impact employee well-being, productivity, and
organizational performance.
Causes of Work-Related Stress:
 Job Demands:
Excessive workload, unrealistic targets or deadlines, and lack of control over work tasks.
 Role Ambiguity:
Unclear job expectations, lack of information, and insufficient support from managers or colleagues.
 Organizational Factors:
Poor working conditions, lack of resources, inadequate equipment, and a lack of opportunities for
growth or promotion.
 Interpersonal Issues:
Harassment, discrimination, and poor relationships with colleagues or supervisors.
 Changes within the organization
Signs of Stress:
 Physical: Headaches, stomach problems, fatigue, changes in sleep or appetite.
 Emotional: Mood swings, increased irritability, anxiety, and feelings of being overwhelmed.
 Behavioral: Withdrawal, decreased motivation, increased errors, and absenteeism.
Strategies for Managing Work Stress:
 Individual Level:
 Time Management: Prioritize tasks, delegate when possible, and set realistic goals.
 Relaxation Techniques: Practice mindfulness, deep breathing, or meditation.
 Seek Support: Talk to trusted colleagues, friends, or family members, or consider
seeking professional help.
 Self-Care: Prioritize physical and mental well-being through exercise, healthy eating,
and sufficient sleep.
 Organizational Level:
 Create a Supportive Work Environment: Foster open communication, provide
adequate resources, and promote a culture of respect and fairness.
 Implement Stress Management Programs: Offer workshops, training, and
counseling services to help employees manage stress.
 Encourage Work-Life Balance: Promote flexible work arrangements, encourage
employees to take breaks, and discourage excessive overtime.
 Address Root Causes: Identify and address the factors that contribute to stress in the
workplace, such as workload imbalances or poor communication.
Types Of Stress Management In Organizational Behaviour
In organizational behavior, stress management techniques can be categorized into several types:
 Individual-Level Techniques: Focus on helping individuals develop coping skills and resilience
through techniques such as time management, prioritization, relaxation exercises, and
mindfulness practices.
 Organizational-Level Techniques: Involve implementing policies and practices that promote
work-life balance, clear communication, employee recognition, and fostering a supportive work
culture.
 Job Redesign and Workload Management: Involves assessing and modifying job roles,
responsibilities, and workloads to reduce stress levels. This can include task delegation,
workload balancing, and ensuring realistic job demands.
 Training and Development: Providing training programs to enhance employees’ skills,
knowledge, and abilities to handle stress effectively, including stress management workshops,
communication skills training, and conflict resolution training.
 Employee Support Programs: Offering employee assistance programs (EAPs), counseling
services, or access to mental health resources to provide professional support for employees
experiencing stress.
Stress Management Techniques In Organizational Behaviour
Effective stress management techniques can significantly contribute to employee well-being and
organizational success. Here are some techniques commonly used in organizational behavior:
 Time Management: Encouraging employees to prioritize tasks, set realistic deadlines, and
manage their time efficiently to reduce work-related stress.
 Regular Communication: Promoting open and transparent communication channels to address
concerns, provide feedback, and ensure employees feel heard and supported.
 Work-Life Balance: Encouraging a healthy balance between work and personal life by
promoting flexible working hours, remote work options, and paid time off.
 Health and Wellness Initiatives: Implementing wellness programs, fitness activities, and
providing access to resources that support physical and mental health.
 Conflict Resolution: Training employees and managers on conflict resolution techniques to
address conflicts in a constructive and collaborative manner.
 Supportive Leadership: Fostering a supportive leadership style that promotes trust, recognition,
and empathy, creating a positive work environment.
.

THE ROLE OF EMPLOYEES IN STRESS MANAGEMENT

Employees play a vital role in managing and reducing stress in the workplace. Here are some key
ways employees can contribute to stress management:
 Self-Awareness: Recognizing their own stress levels, triggers, and signs of burnout, and taking
proactive steps to manage their stress through self-care practices and seeking support when
needed.
 Time Management: Employing effective time management techniques to prioritize tasks, set
realistic deadlines, and avoid unnecessary work overload.
 Work-Life Balance: Striving to maintain a healthy balance between work and personal life,
setting boundaries, and taking time off to recharge and rejuvenate.
 Communication: Expressing concerns, challenges, and work-related issues with managers or
colleagues in a respectful and constructive manner, seeking assistance or collaboration when
required.
 Seeking Support: Utilizing available resources such as employee assistance programs,
counseling services, or support groups provided by the organization to address stress and seek
professional help when necessary.
The Role Of Managers In Stress Management
Managers play a crucial role in creating a supportive work environment and promoting stress
management among their team members. Here are some ways managers can contribute to stress
management:
 Open Communication: Encouraging open and transparent communication channels, actively
listening to employee concerns, and providing timely feedback and guidance.
 Workload Management: Ensuring that workloads are reasonable and balanced among team
members, avoiding excessive or unrealistic expectations, and offering assistance or reallocating
tasks as needed.
 Clear Expectations: Setting clear performance expectations, providing clarity on roles and
responsibilities, and ensuring employees have the necessary resources and support to meet their
objectives.
 Empathy and Support: Demonstrating empathy, understanding, and support towards employees
experiencing stress, providing a safe space for them to express their concerns and offering
assistance or accommodations when possible.
 Recognition and Appreciation: Recognizing and appreciating employees’ efforts and
achievements, celebrating milestones, and fostering a positive work culture that promotes a
sense of belonging and job satisfaction.
.
STRESS MANAGEMENT TECHNIQUES OF ORGANIZATIONAL STRESS
Effectively managing organizational stress is crucial for both employees and employers to maintain a
healthy work environment and enhance overall well-being. Here are some stress management
techniques that can be applied at the organizational level:
1. Promote Work-Life Balance:
 Encourage employees to set boundaries between work and personal life.
 Offer flexible work arrangements, such as remote work or flexible hours.
 Promote the use of paid time off and vacations to recharge.
2. Clear Communication:
 Foster open and transparent communication within the organization.
 Encourage employees to voice their concerns and provide feedback.
 Ensure that information about organizational changes is communicated clearly and in
a timely manner.
3. Reduce Workload and Set Realistic Expectations:
 Assess and adjust workload to ensure it is manageable for employees.
 Set realistic deadlines and avoid overloading individuals with excessive tasks.
 Encourage delegation and teamwork to distribute the workload.
4. Provide Training and Skill Development:
 Offer training programs and resources to help employees develop the skills needed for
their roles.
 Support ongoing learning and professional development.
 Ensure employees are adequately trained to use tools and technology.
5. Enhance Job Control and Autonomy:
 Empower employees by giving them some control over their work and decision-
making.
 Allow individuals to have a say in how they approach their tasks and projects.
 Avoid micromanagement.
6. Promote a Positive Work Environment:
 Encourage teamwork and collaboration among employees.
 Recognize and reward employee contributions and achievements.
 Address and eliminate workplace bullying and harassment.
7. Provide Mental Health Resources:
 Offer employee assistance programs (EAPs) that provide access to counseling and
mental health support.
 Promote mental health awareness and reduce stigma.
 Train managers and supervisors to recognize signs of stress and offer support.
8. Implement Stress Reduction Programs:
 Offer stress management workshops or seminars.
 Provide access to mindfulness and meditation programs.
 Encourage physical fitness and wellness initiatives.
9. Support Time Management and Organization:
 Teach time management techniques and prioritize tasks.
 Offer tools and resources to help employees stay organized.
 Encourage employees to plan and set realistic goals.
10. Promote Social Connections:
 Create opportunities for team-building and social interactions.
 Encourage employees to build supportive relationships with colleagues.
 Foster a sense of belonging and community within the workplace.
11. Monitor Workload and Resources:
 Regularly assess workload and resource allocation to prevent burnout.
 Ensure that staffing levels match the demands of the organization.
 Consider redistributing tasks during peak workloads.
12. Encourage Self-Care:
 Promote the importance of self-care practices, such as regular breaks, exercise, and
healthy eating.
 Provide access to wellness resources, such as on-site fitness facilities or wellness
programs.
ORGANIZATIONAL MANAGEMENT –
Organizational management is the systematic practice of planning, coordinating, and overseeing
resources, processes, and people within an organization to achieve its goals and objectives. It involves
activities like setting objectives, formulating strategies, allocating resources, making decisions, and
fostering a productive work environment.
 Definition:
Organizational management is the process of organizing, planning, leading, and controlling resources
within an entity to achieve its objectives.
 Key Functions:
 Planning: Setting goals, developing strategies, and creating action plans.
 Organizing: Structuring the organization, assigning tasks, and allocating resources.
 Leading: Motivating and directing employees, fostering teamwork, and ensuring
effective communication.
 Controlling: Monitoring performance, evaluating results, and taking corrective
actions.
 Importance:
 Achieving Goals: Organizational management is crucial for an organization to
effectively achieve its objectives and stay competitive.
 Optimizing Resources: It helps organizations use their resources efficiently and
effectively.
 Improving Performance: By implementing effective management practices,
organizations can improve overall performance and productivity.
 Fostering a Positive Work Environment: Organizational management plays a role
in creating a positive and productive work environment where employees feel
motivated and engaged.
 Examples of Organizational Management Activities:
 Setting clear goals and objectives
 Developing strategic plans
 Allocating resources effectively
 Making sound decisions
 Fostering a culture of collaboration and teamwork
 Monitoring and evaluating performance
 Adapting to changing circumstances

MANAGERIAL IMPLICATIONS OF ORGANIZATION’S CHANGE AND DEVELOPMENT-

Organizational change and development (OCD) requires managers to adapt, communicate effectively,
and manage resistance to ensure successful transitions, ultimately impacting employee morale,
performance, and organizational outcomes.
1. Understanding the Need for Change:
 External Factors:
Managers must be aware of external forces like technological advancements, market shifts, and
economic conditions that necessitate change.

 Internal Factors:
Internal factors like employee dissatisfaction, poor performance, or outdated processes can also
trigger the need for change.
2. Managing Change Effectively:
 Communication:
Managers need to communicate the reasons for change clearly and transparently, addressing employee
concerns and anxieties.
 Employee Involvement:
Engaging employees in the change process, from planning to implementation, can foster buy-in and
reduce resistance.
 Training and Development:
Managers must ensure employees have the necessary skills and knowledge to adapt to the changes,
through training and development programs.
 Leadership and Motivation:
Managers play a crucial role in motivating employees to embrace change and maintain high morale
during the transition.
 Change Management Frameworks:
Utilizing established change management frameworks, such as those developed by Prosci or others,
can provide structure and guidance for managing change effectively.
 Addressing Resistance:
Managers should anticipate and address potential resistance to change, using strategies like open
communication, empathy, and addressing concerns.
3. Impact on Employees:
 Morale and Engagement:
Successful change management can boost employee morale and engagement, while poor management
can lead to decreased morale and productivity.
 Performance:
Organizational changes can impact employee performance, either positively or negatively, depending
on how well the change is managed.
 Skill Development:
Change can create opportunities for employees to develop new skills and take on new
responsibilities.
 Job Security:
Managers must address concerns about job security and ensure that employees understand how the
changes will affect their roles and responsibilities.
4. Impact on the Organization:

 Innovation and Growth:

Effective change management can drive innovation and foster organizational growth by adapting to
changing market conditions.
 Efficiency and Productivity:
Changes can improve efficiency and productivity by streamlining processes and adopting new
technologies.
 Competitive Advantage:
Organizations that can adapt to change effectively gain a competitive advantage in the marketplace.

 Sustainability:
Organizational change and development are crucial for long-term sustainability and success.
Organizational change refers to the actions in which a company or business alters a major component
of its organization, such as company culture, the underlying technologies or infrastructure it uses to
operate, or its internal processes. Organizational change management is the process of guiding
organizational change to a successful resolution, and it typically includes three major phases:
preparation, implementation, and follow-through.
Causes of Organizational Change
Many factors make organizational change necessary. Some of the most common faced by managers
include:
 New leadership at the helm of the company or within its departments
 Shifts in the organizational team structure
 The implementation of new technology
 The adoption of new business models
Types of Organizational Change
Adaptive changes are small, incremental changes organizations adopt to address needs that evolve
over time. Typically, these changes are minor adjustments managers fine-tune and implement to
execute business strategies. Throughout the process, leadership may add, subtract, or refine processes.
Adaptive change examples include:
 Training employees in new tools or technologies
 Streamlining communication channels to improve information flow
 Upgrading existing hardware and software to improve security and performance
 Adjusting pricing strategies to remain competitive
Transformational changes have a larger scale and scope than adaptive changes. They can often
involve a simultaneous shift in mission and strategy, company or team structure, people and
organizational performance, or business processes. Because of their scale, these changes often take a
substantial amount of time and energy to enact. Though it's not always the case, transformational
changes are often pursued in response to external forces, such as the emergence of a disruptive new
competitor or issues impacting a company’s supply chain.
Transformational change examples include:
 Adoption of a customer relationship management software (CRM), which all departments are
expected to learn and employ
 Company reorganization of departments and teams to improve efficiency
 New product or service launches to disrupt the market
 Global expansion, which requires adapting to different cultures, legal regulations, or business
practices
Organizational change and development (OCD) present significant managerial implications, requiring
leaders to proactively manage transitions, address employee resistance, and ensure alignment with
business strategy for successful implementation and sustained growth.
1. Understanding the Need for Change and Development:
 Dynamic Environment:
Organizations must adapt to changing market conditions, technologies, and customer expectations.
 Strategic Alignment:
Change and development efforts should be aligned with the organization's overall goals and strategic
direction.
 Proactive vs. Reactive:
Managers should strive for proactive change, rather than simply reacting to crises, to maintain a
competitive edge.
2. Key Managerial Roles and Responsibilities:
 Communication and Transparency:
Managers must clearly communicate the reasons for change, its potential benefits, and how it will
affect employees.
 Employee Engagement and Buy-in:
Involving employees in the planning and implementation of change can foster a sense of ownership
and commitment.
 Managing Resistance:
Anticipate and address potential resistance to change by providing clear explanations, addressing
concerns, and offering support.
 Training and Development:
Ensure employees have the necessary skills and knowledge to adapt to new processes, technologies,
and roles.
 Performance Management:
Establish clear performance expectations during and after change, and provide regular feedback and
support.
 Creating a Culture of Change:
Foster a culture that embraces change, encourages innovation, and values continuous improvement.
3. Impacts of Effective Organizational Change and Development:
 Improved Efficiency and Productivity:
Change initiatives can lead to streamlined processes, better resource utilization, and increased output.
 Enhanced Employee Morale and Engagement:
Effective change management can improve employee morale, job satisfaction, and overall
engagement.

 Increased Innovation and Adaptability:

A culture that embraces change fosters innovation and allows organizations to adapt more quickly to
new challenges and opportunities.
 Stronger Organizational Performance:
Successful change initiatives can lead to improved financial performance, market share, and overall
organizational success.
4. Challenges and Considerations:
 Resistance to Change:
Employees may resist change due to fear of the unknown, loss of control, or perceived negative
impacts.
 Communication Gaps:
Poor communication can lead to misunderstandings, rumors, and decreased employee engagement.
 Lack of Resources:
Insufficient resources (time, budget, personnel) can hinder the successful implementation of change
initiatives.
 Unrealistic Expectations:
Setting unrealistic expectations can lead to disappointment and decreased morale.

 Resistance from Leadership:

If senior management is not fully committed to the change, it can be difficult to gain buy-in from
employees

5 types of organisational change

1. Transformational
Changes that completely reshape business strategies and processes and redefine a business are called
transformational changes. These are dramatic, large-scale changes that fundamentally alter the
organisation. They happen rarely and are usually implemented when businesses pursue entirely
different products or markets, experience radical changes in technology, try to revamp their business
model because of extreme conditions or keep up with rising supply demand.Some common reasons
for transformational change are leadership change, unmatched competition, adverse market
conditions, business growth and decline in revenue. This type of change can affect all sections of a
company, from staff to management. Some kinds of organisational changes brought about by
transformational change are:
 Cultural change: It involves promoting new attitudes that better express the company's core
values or redefining its vision and mission altogether. This transforms the work environment
of the organisation.
 Structural change: This refers to changes in hierarchies and job roles. Incorporating
structural change may involve reorganising departments, creating high-performing teams,
adding employee positions, revising job roles and assignments or promoting valuable
employees.
 Personnel change: This happens when a company experiences massive growth or
downsizing. This involves mass hiring and layoffs that significantly impact employee
engagement and retention.

2. Transitional
In a transitional change, companies replace an existing procedure with a new one for increased
efficiency and performance. This may involve switching from manual to automated production
methods, creating new products or services, implementing new technology and updating long-held,
outdated policies. Companies make these changes periodically to remain competitive in their
marketplace.Transitional changes may happen during mergers and acquisitions, policy changes and
corporate restructuring. This type of change is substantially disruptive, as it may impact relationships,
job functions and culture and may involve substantial retraining. Transitional changes usually result in
the following kinds of organisational changes:
 Technology change: This comprises adopting new technology to phase out old methods and
keep up with technological advancements. This may include automating jobs, introducing
new software platforms and designing new strategies for technological processes.
 Operational change: This might involve updating to a new process or streamlining the
existing process. Companies can implement operational changes by introducing new
technologies or products, focusing on team building and improving employee
communication.


PROACTIVE CHANGE MANAGEMENT

Proactive change management is a process for anticipating and planning for potential changes that
may affect an organization in the future. It involves identifying potential changes that could impact
the organization, evaluating the potential outcomes of those changes, and developing plans to mitigate
any negative effects or take advantage of any opportunities presented by the changes. The goal of
proactive change management is to be prepared for future changes and to be able to adapt to them in a
controlled and strategic manner.

Reactive Change Management is a strategy that involves responding to changes after they occur rather
than anticipating them. This approach often involves immediate action to address unexpected situations,
problems, or crises.

Organizations that rely on Reactive Change Management tend to focus on short-term solutions to
mitigate the impact of sudden changes.
While a reactive approach to Change Management can be effective in managing crises and urgent
issues, it has its drawbacks. This approach often leads to higher stress levels, lower employee morale,
and increased resistance to change.

Additionally, Reactive Change Management can result in missed opportunities for growth and
innovation, as organizations are constantly in a state of reaction rather than planning for the future.
CHANGE AGENT
A change agent, also known as an advocate of change, is a person who acts as a catalyst for the change
management process. They help an organization, or part of an organization, transform how it operates
by inspiring and influencing others. A change agent will promote, champion, enable, and support an
organization’s change implementation.
Responsibilities of Change Agents
 Communicating how change benefits the organization and employees and making key
organizational change announcements.
 Listening to the involved team members and employees to gain feedback and incorporate it
into the implementation process.
 Understanding employees’ reactions to change and reducing resistance to change.
 Actively engaging with employees by conducting change management exercises and change
management training.
 Encouraging and supporting employees to become change champions and promote it.
 Identifying and leading other change agents and change consultants to success.
 Providing feedback on challenges facing the change management lead.
Internal change agents
An internal change agent can be a member of leadership, a people manager, a training coordinator, a
highly-regarded team member with clout in an organization, or an employee with experience driving
change.
A benefit of internal change agents is their awareness of company culture, institutional knowledge,
and the organization’s history and social politics. Internal change agents are often highly regarded
across the organization as team members who are intelligent, influential, and easy to work with. They
work diligently to establish strong relationships to strengthen attitudes and cultural views towards
change – even after the implementation.
External change agents
If an organization lacks an internal employee with change management skills, it must hire external
change agents to support its initiative.
An external change agent is an outside consultant or third-party change practitioner with relevant
expertise to drive change initiatives. Company rules, regulations, and policies do not apply to them,
allowing them to deeply analyze varied scenarios and suggest suitable change management models and
strategies that help prevent change failures.
Though external change agents provide a fresh perspective, their presence can threaten existing
employees, and their appointment can add a costly expense for lengthy change implementations.

Types of Change Agents

Every change initiative has unique requirements for specific change agents to provide support. Here
are three types of change agents to support your organizational change:
1. People-Focused Change Agents
People-focused change agents help individual employees cope with change by boosting morale and
motivation. They investigate absenteeism, turnover, and the quality of work performed by modifying
behavior, enriching jobs, and setting goals.
2. Organizational & Operational Structure Change Agents
These change agents focus on changing the organizational structure to improve team effectiveness and
efficiency. Organizational structure change agents use various analytical approaches such as
operations research, systems analysis, and policy studies to change the organization’s structure or
technology.

3. Internal Process Change Agents

The prime focus of these change agents is internal processes such as intergroup relations,
communication, and decision-making. Internal process change agents opt for a cultural change approach
to etch the change permanently by conducting sensitivity training, team building, and employee surveys.
Roles of Change Agents in an Organization
A change agent assumes one or more change management roles based on the needs and requirements
of a change project. The four distinct roles of change agents are:
1. Consultant
This change agent role behaves as a change consultant to ensure a bidirectional flow of data and then
analyzes the data further to provide actionable insights to the team members.
2. Communicator & Advocator
3. Trainer
In addition to being a consultant, a change manager often takes on the role of a trainer to help team
members act on the insights gained from data analysis and empower them to acquire new skills to
prepare them for the newly implemented software, digital process, or technical change.
4. Researcher
As a researcher, a change agent focuses on solving current problems and anticipating future concerns.
He also conducts competitive analysis, force field analysis, and evaluates the effectiveness of an
organization’s implementation plan and overall change management strategy.
5. Influencer
An influencer is an agent of change that has strong relationships with critical team members across
departments who is viewed positively as a voice of reason. This person may not officially be a part of
a change rollout, but is critical in earning the trust and buy-in from an overall workforce.

ACTION RESEARCH
Action research is a research method that involves solving problems, analyzing data, and reflecting on
the process. It's a collaborative and participatory process that aims to improve situations.
Steps of action research
1. Identify a topic
2. Develop a plan
3. Collect data
4. Analyze and interpret data
5. Implement the plan
6. Observe the effects of the plan
7. Reflect on the effects
8. Re-formulate or reflect the plan
Characteristics of action research
 Systematic: Action research is a systematic process that involves gathering data in a
systematic way
 Collaborative: Action research involves engaging stakeholders in the research process
 Cyclic: Action research is cyclic in nature, involving a cycle of planning, acting, observing,
and reflecting
 Self-evaluated: Action research involves evaluating the results of the research
Benefits of action research
 Helps to confirm successes
 Helps to acknowledge weaknesses
 Helps to modify or remove unproductive activities
 Helps to plan for the future
 Helps to improve practices
 Helps to create positive change

POWER DYNAMICS
Power dynamics in organizational behavior refer to the ways power is distributed, exercised, and
experienced within an organization, influencing interactions, outcomes, and employee
morale. Understanding these dynamics is crucial for effective leadership, conflict resolution, and
fostering a positive and productive work environment.
 Definition:
Power dynamics involve the relationships and interactions between individuals, groups, or entities
where one party possesses or exerts influence or authority over others.
 Sources of Power:
Power can stem from various sources, including position, expertise, charisma, access to information,
and personal relationships.
 Types of Power:
 Coercive power: The ability to punish or control others.
 Reward power: The ability to provide rewards or incentives.
 Legitimate power: Power derived from one's position or authority.
 Expert power: Power derived from specialized knowledge or skills.
 Referent power: Power derived from being admired, respected, or liked.
 Impact on Organizational Outcomes:
 Decision-Making: Power dynamics influence who gets to make decisions and whose
perspectives are considered.
 Conflict Resolution: Power imbalances can lead to conflicts and hinder effective
problem-solving.
 Employee Morale and Engagement: Unequal power dynamics can lead to feelings
of disempowerment, resentment, and reduced engagement.
 Organizational Culture: Power dynamics shape the norms, values, and behaviors
within an organization.
 Managing Power Dynamics:
 Transparency and Accountability: Fostering a culture of transparency and holding
individuals accountable for their actions can help mitigate power imbalances.
 Empowerment and Participation: Giving employees a voice and a say in decision-
making can foster a sense of ownership and engagement.
 Conflict Resolution Skills: Developing effective conflict resolution skills can help
address power imbalances and promote constructive dialogue.
 Collaboration and Teamwork: Encouraging collaboration and teamwork can help
distribute power and create a more equitable environment.
 Leadership Development: Leaders should be trained to recognize and address power
dynamics in a way that promotes fairness and equity.
 Examples of Power Dynamics in the Workplace:
 Hierarchical structures: In organizations with rigid hierarchies, power tends to be
concentrated at the top.
 Informal networks: Informal networks and cliques can exert influence and control,
even outside of formal structures.
 Negotiations: Power dynamics can play a significant role in negotiations, with those
in positions of power potentially exerting undue influence.
 Communication: The way people communicate can reflect and reinforce power
dynamics.
OD INTERVENTIONS
OD interventions are structured activities or initiatives to improve an organization's effectiveness. They
identify areas where a business can improve and then do something about it. These interventions can
take many forms.
OD (Organizational Development) interventions are structured approaches used to improve
organizational effectiveness by addressing specific problems or opportunities through targeted actions
like team building, process improvements, or leadership development.
 OD interventions are the tools and processes used to implement organizational development.
 They aim to enhance organizational performance, facilitate change management, improve
employee satisfaction, and foster a culture of continuous learning.
 OD interventions are designed to address specific issues or opportunities within an
organization.
 They involve a systematic approach to diagnose problems, develop solutions, and implement
change.
Types of OD Interventions:
 Group Interventions:
These focus on improving communication, collaboration, and effectiveness within teams and groups.
 Intergroup Relations Interventions:
These aim to improve cooperation and efficiency between different departments or teams within an
organization.
 Technostructural Interventions:
These focus on aligning technology, structure, and work processes to improve organizational
effectiveness.
 HRM Interventions:
These focus on improving human resource practices, such as talent development, employee
engagement, and performance management.
 Process Consultation:
This involves an external or internal consultant to observe, diagnose, and facilitate the improvement
of organizational processes.
 Team Building:
This involves activities designed to improve team dynamics, communication, and collaboration.
 Change Management:
This focuses on managing the process of organizational change, ensuring smooth transitions and
minimizing resistance.
 Action Planning:
This involves creating a detailed plan to address identified problems, which may include new training
programs or process adjustments.