Chapter

Perception/
Motivation/Learning/Conflict/Change
Management /

By
Utkarsh
Perception

Perception is like beauty that lies in the eyes of the beholder. Individual differs in how he
sees, interprets, and understands a particular event. A manager may perceive
nonattendance of duty by the subordinate differently. Individuals may also differ in their
opinion though the event or situation may be the same.

Definition
Perception is “a process by which individuals organize and interpret their sensory
impressions to give meaning to their environment (Robbins).
What one perceives may be different from objective reality. A person coming late on duty
may be perceived as casual and tardy, while facing social problems.
Factors Influencing Perception

Perceiver Situation Object /Target

Attitude Time Shape
Motives Work settings Size
Interests Social settings Shade
Experience Sound
Expectations Movement
Background
Perceiver
• When an individual looks at an object and attempts to interpret it, what he or she
sees is primarily influenced by personal characteristics. Perception is a matter of
attitude that can be positive or negative.
• Motive is another factor that plays a vital role in perception. Motive is nothing
more than an unsatisfied need. This exerts considerable influence on perception. An
insecure boss perceives a subordinate who does well as a threat to his position.
Personal insecurity threatens personal survival in a job, especially if one is
frequently transferred.
• Interest is a person's liking for a particular thing in an individual. Some people
may be drawn to a girl's eyes because they are interested in the eyes, whereas
others may be tempted to her hair style; thus, different people will perceive a girl
based on their respective interests. It has also been observed in the workplace that
workers display interest according to their preferences. Students in the class who
are preoccupied are not attentive in the class.
• Experience also plays a vital role in perception. Just as interest
narrows down one’s perception, so does experience. In contrast
experience nullifies an object interest. For example second or
subsequent visit to a historic place.
• Expectations can distort one’s perception of what one sees and
expects to see. For example, power hungry police officer to be strict
regardless of his traits.
Common Errors While Judging Others

• Selective Perception: People selectively interpret what they see based on their attitude,
interest, background, and experience. An individual might have been appointed to a
critical position on the day of the visit of the CEO, and the appointment may have been
incidental. Still, we may perceive the appointment as a consequence of the CEO’s visit.
In an organization, so many things keep happening. Still, different people will perceive
one fact differently based on their selectivity, which is generally based on their
experience and attitude toward work. It is critical that when we read others, we avoid the
trap of reading quickly and putting a stamp on what the perceiver has selectively seen.
For correct perception, an individual must be observed, studied, tested, and later
perceived without an individual bias.
• PEOPLE TEND TO SEE WHAT THEY WANT TO SEE.
• If you like x car u, always looking at x car only, only pros.
The Situation
Change in situation leads to incorrect perception about a person. Time is one facto, which
influences the perception. Time is related to work setting and social setting. A person
decked up for party may not be noticeable but the same dress in office would be
noticed distinctly, though the person has not changed. You would have frequently heard
people say their manager is different during working hours and opposite in a social setting.
An infect person is the same, but the perceiver perceives the manager as per business like
setup while on work, while the person is observed on a private or a personal platform when
meeting him in the club or at home. What is essential to that remember is that the
perception should be done correctly, not to be led due to work or social setting, that the
situation is not allowed to perceive wrongly. An object can be identified by its size, shade,
shape, sound it makes and background. It can be distinguished based on its movement. In
the darkness it may be determined by its silhouette, for example, caravan moving on the
skyline at the dawn.
Attribution Theory of Perception
• Fundamental error or attribution effect- Underestimating the
influence of situational factors and overestimating the power of the
personal element in evaluating a person’s behavior. “ Blaming the
people first, not the situation.

• Self - Serving bias – Attributing their success to internal factors while

blaming failure on external factors.
Attribution Theory of Perception
• In day-to-day life, we come across people with whom we interact. People's motives, intentions,
beliefs, and attitudes impact their behavior. It has been seen that our perceptions of people are
greatly influenced by our assumptions about them and not by reality. Two factors have an impact on
human behavior. There are two types of behavior: "internally caused behavior," which refers to
internal factors over which the individual has complete control, and "externally caused behavior,"
which refers to behavior caused by external factors over which the individual has no control.
Attribution theory suggests that when we evaluate human behavior, it is either internally caused or it
is caused due to external factors. ( Behavior internal or external).

• Distinctiveness- (Different situation, different behavior) If an employee comes late and has
many complaints, (Natural Behavior of employee )

• Consensus – One employee is late, but the rest is on time with the same route (external
causes not responsible ).

• Consistency – Always late ( internal causes)

Halo Effect: The "halo effect" refers to judging an individual based on single
characteristics, such as intellectual ability, sociability, and appearance. A sales
manager’s visit to a sales territory and the consequent increase in sales volume
may be attributed to the sales manager's visit to a particular region. The perceiver
in this situation overlooked the cause of increased sales, which was probably
higher demand, a change in market forces, subordinate sales employees' past
efforts to woo customers to buy the product, and a host of other factors that go
with an increase in sales volume. This type of perception is quite common in any
organization and is called the "halo effect" in perceiving an individual or situation.
A rater may rate a subordinate based on the dominance of a single trait of the aid.
The halo effect has been very frequently noticed in performance appraisals.
• Projection: You assume a person is based on your traits, not what he possesses. If you were
hard-working and dependable, you would expect others to be so.

• Contrast Effect: We generally hear people say that Mr. X’s presentation was good,
meaning it was better than others who would have made presentations in a particular session.

• Stereotyping: classify people and events into To simplify matters, we often tend to organize
people and events into already-known categories. For example, we generally perceive men as
executives and women as secretaries, even if the situation may be different. For police officers, it is
usually believed that they are generally strict and law-abiding, which may need to be revised.
• 2-All police officials are corrupt.

• Perceptual Set/ Mental Set- Perceiving based on previously held beliefs for the same
object/person. ( Adipurush)

• First Impression – The first impression is the last

Implicit Personality - Associated one trait of an individual with his
other characteristics.
For example - if a person is honest, he will work hard.

Expectancy – Also known as a self-fulfilling prophecy, Perceiving the

people based on perceiver expectations
Example – A person of high status is perceived based on an expectation
that he has certain desirable traits.
INDIVIDUAL DECISION MAKING

• Managers have to make decisions and communicate the same to

subordinates for implementation. Decisions can be routine or may
have strategic consequences. It is the judgment of the individual to
arrive at a particular solution. The process that takes place in mind is
fast and based on the ability, nature, skill, and experience of the
individual. Hilter decided to attack Europe in the West while he had
captured half of Russia. Opening war on two fronts led him to defeat
Factors Affecting Decisions
• Information: Adequate information must be available to the decision-maker. Due to
computers, a lot of information may now be available, but it is of little consequence. What is
essential is the amount, quality, and format in which the information is available to the
decision-maker. Inadequate information is as dangerous as too much information.
• Bias: Every individual's decision is highly affected by values, attitudes, and beliefs. An
individual has preconceived ideas about an issue, accepts what he wants, and throws away
unacceptable information. Prejudice and bias may lead to faulty decisions.
• Personal habits: Some people are rigid and stick to their own decisions, even if they are
wrong. Others blame their subordinates for failure and take credit for a successful job.
• Time constraints: A problem is identified, and a solution is sought within a specified time.
As the complexity of the impact of external variables increases, more time may be required.
In the fast-moving era, it is necessary to carry out a time- and space-based appreciation of
the problem involved. A rigid schedule may be necessary that can be followed.
• Risk-taking: Risk is related to various factors. A manager’s risk-taking attitude depends on
personal characteristics, an organizational culture where risk is rewarded and not penalized
for failed decisions, intelligence level, and the decision-makers expectations. High-
intelligence managers are found to be generally conservative and do not take bold steps.
Motivation
• Motivation is the willingness of a person to make intense and persistent efforts to achieve
desired goals.
• You are thirsty
• You will drink water

• Content-Based - How the motivation occurs

• Process Based- What Motivates People
• Motivation is derived from the Latin word “Movere,” which means TO MOVE.
• Motivation is a psychological term that cannot be forced on employees.

NEED Tension Goal Directed Behaviour Need Satisfaction

Feedback
Hierarchy of Needs Abraham Maslow
“ Alderfer’s” ERG Theory
Theory X and Y
• Earlier theory related to organizations, but according to Mc Gregor, the
employees are good or bad.
• Theory X- employed dislikes the work, lazy , must be coerced to perform ,
low commitment.

• Theory Y – employee like work , are creative seek responsibility and can
exercise self direction.
Two factor Theory , 1959, Two Factor Theory / Dual
structure theory
• Interviewed over 200 professionals – including Highly satisfied or less
satisfied.

• Identified factors first Hygiene factors, and second is motivational

factors.
Hygiene Factors (Maintenance Factors/ Dissatisfies Less), Job-Related.
• Related to the condition under which the job is performed.
• If you have not maintained that level, it leads to a dissatisfied employee.
• Company policy and administration
• Technical supervision
• Interpersonal relationship
• Salary
• Job security
• Personal life
• Woking conditions and Status
• Necessary to maintain a reasonable level of satisfaction among
employees.
• Any decrease in the level will dissatisfy them.
Motivating Factors ( Satisfiers)
• Related to job
• Achievement
• Recognition
• Advancement
• Possibility of growth and responsibility
• Training and development
• Any decrease in the factors will not affect satisfaction**
• Any increase in these factors will satisfy the employees
• Used in motivating them for higher performance
David McClelland's Theory of Needs 1961/ Learn need theory

• Develop according to the environment; every person has at least one factor.
• Need for achievement- To excel in achieving, about a set of standards, strive
to succeed. Moderate risk Achiever, Immediate feedback work performance
( student )
• Need for affiliation- Teamwork, social relationships, making friends, self-
initiator, never hesitating to talk with new people. (Example – Cubical series
and Kulcha ).
• Need for power – Influencer, politician, desire for control ( Other individual
behavior as per your wish ), Higher Position, requires more hard work.
• KGF
Process Based Theory, John Stacy Adams 1963
• Adams Equity Theory – Equality, Rewards, and performance for the same level of employee.
Job Input = Job output

Person Person
Compare

Input,
Exp,
Outcome Input Input
Qualification ,
Competence

Referent Comparison-
Self Inside- Personal exp, compare within self
Self Outside
Overlap Inequity
Person outcomes Other Outcomes
Persons inputs Other Inputs

Underpaid Inequity = With another employee

Person Outcomes Other Outcomes
Person Inputs Other Inputs

Equity
Person Outcomes Other Outcomes
Persons Inputs Other Inputs
Goal Setting Theory
• Goal Setting Involves establishing “SMART” Goals.
• Specific, measurable, Attainable, Relevant, Time-bound.

• Goal Setting and feedback go hand in hand, making feedback a two-

way communication process.
Reinforcement theory, Operant Conditioning by BF
SKINNER

• Positive Behaviors- Positive Reinforcement ( manager praises the

employee)
• Negative Reinforcement – Positive behavior followed by removal of
negative consequences ( Manger stops nagging the employees )
• Punishment- Negative behavior followed by adverse effects ( Manager
demotes the employees)
• Extinction- Negative behavior followed by removal of positive
consequences ( manager ignores the behavior )
Vroom Expectancy Theory, 1964
• Who believes that people are motivated to perform activities to achieve some goal to
the extent they expect actions on their part would help them achieve the goal?
• TO WHAT EXTENT DO YOU BELIEVE JRF IS CLEAR?

EXPECTENCY INSTRUMENTLY VALENCE

The perceived likelihood is that belief that there is a connection degree to which rewards are
effort will result in good between activity and goal valuable
performance.

Motivation = Reason to perform

(Expectancy) (Instrumentally)
Effort * Performance = Outcome
Expectancy ( Focus on EFFORT): A person believes that more effort will result in working more complex
and better performance.
Instrumentally ( Performance ): A person’s belief that there is a connection between activity & goal. If you
perform well, you will get rewarded.
Valence ( OUTCOME, REWARD)- The degree to which a person values the rewards, THE RESULT OF
SUCCESS.
Leadership
• Leadership is one of the essential aspects of studies of human behavior
in an organization. It is the leader who creates a working environment.
The success of an organization depends upon the efficiency of the
leader. The attributes, positive approach, and problem-solving ability
make a person a leader. The leader should be able to turn the hopeless
situation in favor.
Manager characteristics Leader characteristics
Administers Innovates
Copy An original
Maintain Develops
Focuses on systems and structure Focuses on people
Short-range view Long-range view
Relies on controls Inspires trust
Asks how and when Asks what and why
Definition
Leadership can be defined as influence, the area or process of influencing
people so that they will strive willingly and enthusiastically toward achieving
group goals.
Leadership has been defined as group processes, personality, compliance,
particular behavior, persuasion, power, goal achievement and interaction, role
differentiation, initiation of structure, and a combination of two or more
(Bernard 1990). A leader can lead effectively.
Leadership can be defined as influence, the area or process of influencing
people so that they will strive willingly and enthusiastically toward achieving
group goals.
Ingredients of Leadership
• The ability to use power effectively: A leader inherits power by
appointment. Known as the legitimate power apart from the above, he
achieves willing obedience by using one or more power bases like expert
power, referent power, reward, and coercive power. Line authority also
facilitates influencing subordinates.

• An ability to comprehend: Human beings have different motivational

needs at other times and situations. The ability to learn relates to
understanding people, their needs, expectations, and what a leader has been
doing to satisfy them. This is a continuous process that gives a leader the
understanding of his subordinates and an ability to explore the situation to
his advantage to get the organizational goal achieved
Ability to inspire: Inspiration is best judged when subordinates work
zealously in a hopeless situation. A leader must identify each
individual’s capabilities and skills and encourage them. Inspiration
emanates from a leader who may have charm, an appeal, and devotion
to duty, which subordinates want to enhance by loyally obeying the
leader willfully. Inspirations also come from the charismatic personality
of the leader. Subordinates promote what the leader desires.
Leadership Theories
• Great Man Theory-Given By Gordan Alport,
• Leaders are Born, Not made
• This approach emphasizes that a person is born with or without the
necessary leadership traits.

“Charismatic Leadership”
Trait Theory of Leadership
• What characteristics or traits make a person a leader
• Trait theory of leadership seeks personality social, physical, or intellectual
traits that differentiate leaders from nonleaders.
• Such as Energy, appearance, height, intelligence, ability and personality
traits such as adaptability, aggressiveness, enthusiasm and self-confidence.
They also have task related characteristics such as achievement drive,
persistence and initiative and social drive like cooperativeness,
interpersonal skills and administrative ability.
• Not all leaders possess all the traits. Trait theory of leadership gives no
guidance as to how much of any trait a leader should have. The theory is not
conclusive. Most of the traits identified in successful leaders are actually the
pattern of behaviour.
Leadership Skills and Style
• Another way of analyzing leadership behavior is in terms of the skill possessed by the leader.
Three types of skills are required to be used appropriately at different levels of management.
• Human skills are essential for all levels of management. They are concerned with the
interpersonal relationships between managers and other persons who come in contact with the
leader. The leaders apply internal motivation to the employees to obtain their willing obedience
and cooperation.
• Technical skill involves the ability of employees to know the technical aspect and operation and
maintenance of machine, tools and allied fixture they work with. Lower level managers who are
in close contact with workers have to know it in greater details as compared to higher managerial
cadre. The former spends considerable time on utilization of technical skills.
• Conceptual skill involves the ability to view the organization in strategic term. It is most
important for top level management where long term planning and futuristic thinking is required.
As managers move to higher position in the organization they must develop and utilize the
conceptual skill increasingly. But at times managers are found wanting of this skill. Training,
development and exposure to various situations would make the managers to cope up with higher
responsibility, based on skill, maturity and understanding
Leadership styles based on authority
Autocratic leadership:
This type of leadership is practiced by managers concentrating on power and
authority within themselves. The leader expects a high degree of compliance
from subordinates. He is dogmatic and positive in his approach. Manager
exhibiting this type of style has the ability and enforces decision by use of
rewards and fear of punishment. Communication tends to be primarily in one
direction from the manager to the follower.
Autocratic

Follower Follower Follower

Democratic or Participative Leadership
• Democratic or participative leader consults subordinates and encourages
participation in decision-making. In the process of interaction with associates, a
democratic leader suggests actions or decisions and obtains the views of those
under him. He respects subordinates’ opinions and does not act without their
concurrence. The leader is supportive. This leadership style has various
advantages, including high morale and support of associates and smooth
implementation due to assistants being party to decision-making.
Democratic or
participative
leader

Follower Follower Follower

Laissez-faire Leadership
• A leader who practices laissez-faire leadership is also called a “free rein”
leader who uses his power very little, giving subordinates complete freedom
of action and independence for setting their goals and means of achieving
them. This type of leader depends heavily on assistants and sees their role
as aiding the operation of followers by furnishing required information
when asked for and acting only as contact between various departments and
outside agencies (external environment).

Free Rein

Follower Follower Follower

Likert’s four Systems of Management
• Prof. Rensis Likert carried out studies relating to patterns and styles of leadership at the
University of Michigan for almost 30 years. He has developed a model called the Likert Four
System relating to leadership styles. His ideas and approaches are essential for understanding
human behavior in organizations. Likert’s four systems of management are as follows:
• System-1 Exploitive-authoritative Managers who practice an exploitive-authoritative
management system are highly autocratic, distrust subordinates, and point a finger
everywhere. They believe in motivating people through fear and punishment, occasionally
rewarding them. They engage in downward communication and limit decision-making to the
top levels of management only. (100 percent utilization of resources)

• System-2 Benevolent-authoritative Managers practicing benevolent-authoritative leadership

display complete trust and confidence in their subordinates. They motivate the employees by
giving occasional rewards but maintain fear amongst subordinates and award punishments
wherever required. They believe in minimum upward communication and invite ideas relating
to the issue. Managers permit specific decision-making and delegate authority to a limited
degree. They exercise a strict control policy when leading their subordinates. ( For the
followers)
• System-3 Consultative management has substantial but not full confidence and
trust in their subordinates. Usually they make use of the ideas and opinions of
subordinates. They believe in upward and downward communication when
dealing with subordinates. To motivate, the managers issue rewards, but
occasional punishment is also awarded. They lay out broad policies and keep
decision-making on important matters at the top level. However, specific decision-
making is left to subordinates, which may relate to day-to-day functions within the
policy parameters.
• System-4 Participative-group Likert’s fourth management system is called
participative-group leadership. In this system, managers have complete
confidence and total trust in subordinates on all matters of organization. They
always get ideas from subordinates and use them constructively. They give
economic rewards for participation and involvement in goal setting.
• Grid Development- Blake and Mouton Model
Managerial grid
• The Managerial Grid” leadership style was developed by Robert Blake
and Jane Mouton (1969). The managerial grid model explains concern
of a manager for production and people.
• Blake and mouton’s model helps to measure a managers relative
concern for people and task and reflects bi-directional nature of
leadership
• Impoverished Management [Link] Under this style (as shown in the figure's left bottom
corner), it is referred to as impoverished management or laissez-faire management.
Managers do not involve themselves with the work or people; they only mark time and
abandon their job. They act as messengers to pass information from superiors to
subordinates. They neither display any concern for people nor production. They display
minimal involvement in the job they are assigned to. This amounts to the exertion of
minimum efforts on the part of the leader to get the required work done, which is
appropriate to sustain organizational membership.

• Team Management 9:9 At the extreme opposite is the team management style of
leadership, where managers mesh the interests of people and production needs in a
balanced manner. Their involvement is total. They are real team leaders with complete
knowledge, skill, and aptitude for the job and also a concern for the welfare of workers.
Blake and Mouton argue strongly that style 9:9 is the most effective management style.
In all situations, they believe this leadership approach will result in improved
performance, low absenteeism and turnover, and high job satisfaction.
• Country Club Management 1:9 Leaders who follow this leadership style display
high concern for people and little interest in production. They create a very
relaxed and friendly environment. There are no organizational goals and a very
loose style of functioning. The working environment is welfare-oriented.

• Autocratic-task-oriented (9:1) This leadership style concentrates on setting

organizational goals, developing effective operations systems, utilizing corporate
resources, achieving objectives, and stressing the quality of work and production.
The leader functions in an autocratic way with little concern for people.

• Middle of the Road Management 5:5 Managers are concerned with people and
production. They set reasonable production goals and achieved them. They have
equal concern for people and work. They achieve reasonably satisfactory results
by maintaining high worker morale and meeting production requirements.
Learning
• Learning brings relatively permanent change in human behaviour that
occurs due to experience.
• Learning brings a relatively permanent change in human behaviour
that occurs as a result of experience.
• We cannot see learning, but we can see changed behaviour as a
consequence of learning.
• We cannot see learning but we can see changed behaviour as a
consequence of learning.
• We cannot see learning, but we can see changed behaviour as a
consequence of learning.
Theories of Learning
• Classical Conditioning – behaviorist theory “Classical conditioning
can be defined as a process in which a formerly neutral stimulus, when
paired with an unconditional stimulus, becomes a conditioned
stimulus that illicit a conditioned response.
• In stage one, he presented the dog meat (unconditional stimulus). He
noticed a great deal of salivation (unconditional response).
• In stage two, he only rang the bell (neutral stimulus), and the dog was
not salivated.
• Pavlov was to accompany the offering of meat to the dog along with
ringing up of bell
• After doing this several times, Pavlov rang up only a bell (without
offering meat to the dog). This time the dog salivated to the ringing up
of the bell alone.
• Pavlov concluded that the dog had become classically conditioned to
salivate (response) to the bell sound (stimulus).

• It will be seen that the learning can take place amongst animals based
on stimulus-response (S-R) connections
Operant Conditioning
B.F Skinner originated the concept
He states that most human behaviour operates based on the
environment.
Operant Conditioning is concerned primarily with learning as a
consequence of behaviour (R-S).
In Operant Conditioning particular response occurs as a consequence of
many stimulus situations.
It is a method of learning that occurs through rewards and punishment
for behaviour.
• Positive Reinforcement- Positive re-enforcement is an institution of reward
for a particular desired behaviour. The intensity of compensation must
stimulate a desired behaviour.

• Negative Reinforcement- Positive behaviour followed by the removal of

negative consequences

• Punishment- Punishment is awarded to an individual for undesired

consequences of behavior. It is a method of decreasing the frequency of
occurrence of unpleasant behavior and a tool generally used by
organizations for corrective or modification of individual behavior
Cognitive Theory – Cognitive Approach

• Edward Tolman was recognized as the pioneer of Cognitive Theory.

The theory involves a relationship between environmental (cognitive)
cues and expectations.
Procedure
In their study, three groups of rats had to find their way around a complex maze. At the end
of the maze, there was a food box. Some groups of rats got to eat the food, some did not,
and for some rats, the food was only available after ten days.

Group 1: Rewarded
Day 1 – 17: Every time they reached the end, they were given food (i.e. reinforced).

Group 2: Delayed Reward

Day 1 – 10: They were taken out every time they got to the end.
Day 11 -17: Every time they reached the end, they were given food (i.e., reinforced).

Group 3: No reward
Day 1 – 17: They were taken out every time they reached the end.
Result
• The delayed reward group learned the route on days 1 to 10 and
formed a cognitive map of the maze. They took longer to reach the
end of the maze because there needed to be more motivation for
them to perform.
• From day 11 onwards, they had the motivation to perform (i.e., food)
and reached the end before the reward group.
Social Learning-behavioural approach
• The approach deals with the learning process based on direct
observation and experience. It is achieved while interacting with
individuals. In social learning, people observe, alter and even
construct a particular environment to fit the social and behavioral
pattern. Individuals learn a lot from watching attractive models,
copying their behavior and displaying the same.

• Children copy the behaviour of their parents, adults, and copy cinema
actors/actresses in various styles. Social learning is practiced in
organizations by observing various cultural, and social practice
• Children copy the behaviour of their parents, adults, and copy cinema
actors/actresses in various styles. Social learning is practiced in
organizations by observing various cultural, and social practice.
Conflict
• In the current corporate environment, the conflict has become a widespread
phenomenon. Conflict is bad as it has adverse effects on individual performance. If
conflict is beyond control, it takes a destructive dimension. When employees do not
cope with the conflict situation, there is an increased absenteeism and exit of
employees.

• “Thomas K.A. process that begins when one party perceives that another party
has negatively affected something that the first party cares about”

• Austin et al. define conflict “as a disagreement between two or more individuals
or groups, with each individual or group trying to gain acceptance of its views or
objective over others.”
Functional and Dysfunctional Conflict
• A conflict that supports the individual and group goals, which leads to
higher performance is called functional conflict while the conflicts
that hinder individual or group performance is called dysfunctional
conflict
Functional Conflict

• Conflict develops cohesiveness within the group members. A group

goal, therefore, becomes a priority. Individual plans are then relegated
to a secondary position.
• Conflict leads to innovation and creativity, as various groups have a
competing spirit.
• Conflict provides a challenging work environment and enhances
opportunities for the self-development of a group, which leads to the
formation of group norms.
• Enhance work culture leads to the upgradation of various systems
within the organization, and therefore, growth is achieved
Dysfunctional Conflict

• When conflict does not lead to a solution

• When the primary goals of the organization are neglected.
• Conflict may lead to absenteeism and subsequently to increased
turnover if not controlled in time
• Disagreement with management may be considered as disloyalty, if
this environment prevails, an opportunity for creativity would be lost
and employees would lose interest in their job. This would lead to
increased conflicting situations
Causes of Conflict
• Inadequate communication: where too much or too little information is
passed from one department.
• filtration effect: where the end receiver receives scant information
with little or no value.
• When information is not received on time: it must be noted that
delayed information has no value as the decision might have already
been taken without the information.
• Barriers of culture, language.
• inadequate training of sender and receiver.
Types of Conflict
• Intra-personal Conflict: Intra-personal conflict is also called the conflict
within the individual (Value conflict).

• Inter-personal Conflict- Inter-personal conflict relates to conflict between

two or more individuals and is probably the most common and recognized
form of conflict. Interpersonal conflict is caused due to disagreement over
goals and objectives of the organization. These are heightened due to
difference of opinion of individuals and when issues are not based on facts.
Every organization is full of unresolved issues, problems and differing
situations that leads to conflict
• Intra-Group Conflict- Intra-group conflict relates to values, status, and roles
played by an individual in the group and the group norms. Individuals may
want to remain in the group for social needs but may disagree with the methods
and procedures followed by the group.

• Inter-Group Conflict- Conflicts between different groups, sections, and

departments are called inter-group conflict. For example, there is a conflict
between production and sales departments over quality and customer
requirements.
• Inter-Organizational Conflict- Inter-organizational conflict takes place between
two dependent organizations. Conflict can occur between government
organizations, unions, and the operating industry. Government organizations
function to ensure that the organizations follow minimum standards
• Intra-Organizational Conflicts Intra-organizational conflict encompasses
horizontal, vertical, line–staff, and role-based conflicts. Let us briefly study these
situations.
• Horizontal Conflict Horizontal Conflict is caused due to incompatibility of goals,
sharing limited resources, and differences in time orientation. It leads to tension,
misunderstanding, and frustration on the part of both parties. Horizontal conflict
relates to employees or groups at the same level.
• Vertical Conflict- Vertical conflict refers to conflicts that might take place
between different levels of hierarchy. Conflicts between subordinates and
superiors occur due to incompatibility. It is generally caused by differences in
perception, value system, goals that may be assigned, cognition, and individual
behavior. Conflict is also caused due to inappropriate communication between
individuals at two levels.
• Line and Staff Conflict-Line and staff conflict has been traditional. Line
authority creates product and services and contributes directly towards the
revenue generation. While staff authority assists line authority and acts in
advisory capacity. Staff and line authority have different predispositions and
goals.
• Role Conflict- A person in an organization has to perform various roles. Conflict
arises when roles assigned to him have a different expectation
Five Conflict Handling Intentions
• Competing
• Collaborating
• Avoiding
• Accommodating
• Compromising
Avoidance Mode
• Resignation
• Withdrawal
• Diffusion- Conflict resolutions is to buy time for dealing with conflict
• Appeasement- To buy temporary peace , As result conflict remains
unresolved and situation determine further.
Approach Modes
• Conformation-
• Compromise
• Arbitration
• Negotiation
Change Management
• Change is inevitable. Nothing is permanent except the change. The
management must manage change properly. Organizations must closely
watch the environment and incorporate suitable changes if the situation so
demands. Change is a continuous phenomenon.
• Organizations must be proactive in affecting change. Even in most stable
organizations change is necessary to maintain stability.
Understanding Change
• Change refers to any alteration which occurs in over all work environment
of an organization. It may relate to changes in technology, organizational
structure, working processes, work environment, organizational policy, and
even the roles people play. Introducing flux in one part of an organization
forces changes in the other part.
• If the change is beneficial people accept it willingly. If it is not desirable,
there is great resistance.
FORCES OF CHANGE
An organization is an open system that has to interact with the
environment and is solely dependent on it. Any change in climate makes
it necessary for the organization to incorporate change in the internal
systems, sub-systems, and processes. This change has a chain reaction
on the other internal elements of the organization. For example, any
change in consumer preferences may change product features, cost,
technology, marketing strategy.
• External Forces of Change: Technology is a major external force that calls
for change. In recent times information technology has made a remarkable
impact on the ability of managers to use the information to arrive at a
decision. Storage, information retrieval and its utilization are essential parts
of technology.
• Internal Forces of Change: Changes in HR Policy, Top Management
CHANGE PROCESS
• Kurt Lewin proposed a Three-Stage Model of the change process for
moving the organization from the present position to the changed
one. This is as under Stage 1:
• Unfreezing: Creating motivation and readiness to change through.
(a) Disconfirmation or lack of confirmation.
(b) Creation of guilt or anxiety.
(c) Ensure subordinate’s psychological safety.
• Stage 2: Changing through cognitive restructuring:
Helping the client to see things, judges things, and feel things
differently based on a new point of view obtained.
(a) Identifying with a new role model, mentor, etc.
(b) Scanning the environment for new relevant information.

Stage 3: Refreezing:
Helping the client to integrate the new point of view into
(a) The total personality and self – concept.
(b) Significant relationship.
• Unfreezing: Process of unfreezing makes individuals ready for change. Lewin believes that
employees must be informed in advance of impending change and that they should not be
surprised. Unfreezing entails unfreezing the old behaviour or situation. Unfreezing involves
creating motivation and readiness to change by creating an environment of disconfirmation of
existing psychological safety in the modified pattern of behavior. This can be achieved by making
announcements and meetings and promoting the idea throughout the organization through the
bulletin, boards, personal contacts, and group conferences. The unfreezing process cleans the slate
so that new behavioral patterns, customs, and traditions can be imprinted, becoming a new way of
doing things.
• Moving: Once the unfreezing process is completed, moving takes place. Moving is incorporating
change. Persons undergo cognitive restructuring. The process is carried out by the following three
methods as proposed by Kelman.4 •
• Compliance: Compliance is achieved by introducing rewards and punishments. It has been
established that an individual accepts change if rewarded or punished. This is a behaviour
modification tool. •
• Identification: Members are psychologically impressed upon to select their role model and modify
behaviour. If a leader can act as a role model, the change is easier. •
• Internalization: Internalization involves changing an individual’s thought processes to adjust to a
new environment. Members are advised to carry out soul searching and adopt a new behaviour
• Refreezing: It is related to integrate the new behaviours into the person’s
personality and attitude. It is referred to stabilization. The change behaviour
must necessarily fit into the social surroundings. Refreezing takes place
when the new behaviour is adopted in a normal way of life. New behaviour
must replace the old on a permanent basis. New behaviours must be re-
enforced continuously so that it does not diminish. Change process is not a
one time process but it is continuous hence unfreezing, change and
refreezing must also be continuous
TYPES OF CHANGE
• Process-oriented Change: Process changes are necessary to keep pace with
technological development, automation, information technology, free market
environment and availability of trained manpower. The organization must take
advantages of these processes. This however needs heavy investment and entails
various operational changes but cuts down time and energy. This would bring about
change in work environment, organizational culture and modify behaviour pattern of
employees.
• Structural Change: Decentralization of authority and introducing flatter organizational
structure enable employee to experience a sense of autonomy in work environment.
Decentialisation leads to empowerment of lower level employees to take appropriate
decisions pertaining to their job parameters. It has major impact on the social climate of
the organization on one hand and development of team spirit on the other. Structural
changes promote acquision of new skills and improves ability of subordinates to take on
the spot decisions even in critical situation
Cultural Change: Due to electrifying changes in communication, an
individual is exposed to social changes. This has necessitated to the
introduction of the right culture in the organization. It is the
responsibility of the top management to ensure proper organizational
philosophy, instill culture and value system among employees and
practice ethical approach in business. These are essential inputs for
improved performance, group cohesion, devotion to duty, and for
developing the ‘we’ feeling in the organization.
STEPS IN MANAGING CHANGE
• Develop new goals and objectives: Objectives and goals are derived from mission
statements, and objects may need revision due to changes in external or internal forces.
• Select an agent for change: The management’s responsibility is to entrust the execution
of change to the appropriate authority. A manager may be given this responsibility. An
outside change agent can also be employed for the purpose. A specialist or a consultant
can be brought in to suggest change and monitor implementation. He is also called a
facilitator.
• Diagnose the problem: Diagnosis is the first step to implementing change. Suppose an
organization has a significant employee turnover. In that case, the data must be collected
and made available to the consultant to identify the reasons for turnover and take
appropriate corrective measures. The process is of placing of the problem more complex
than it appears. This itself may need research.
• Select Methodology: It is comparatively easy to implement material change as a part of
change of a system. What is important is to protect the emotions they must be made
party to select methods so that it is easier to implement at a later stage.
Develop Pan: If the organization wants to reduce employee turn over, it
may like to carry out comparative study of other organizations in respect
of job content, reward system, employee performance, appraisal system,
promotion criteria, training & development, and the strategy adopted by
the organization for its growth. Based on examination of these factors,
consultant would be able to develop a plan for change.
Strategy for implementation: Timings of implementation of change is
very crutial. A deliberate decision must be taken in this regard like hike
in price of a product, the decision to implement change is critical. If the
change is related to internal employees, it must be communicated at an
appropriate time so that there is no resistance to planned change.
Implementation of Plan : Once the decision to implement the plan and
communication through which the plan is to be implemented is decided,
it is the responsibility of the various departments to implement the
same. This may need notification, briefing sessions or in-house
seminars so as to ensure theacceptance of all the members of the
organizations specially those who are likely to get affected.
Implementation may be for a short duration as one time change of
system or process but its aftermath is of great value
Evaluation & Feedback : The result of the change must be evaluated
and suitable feed back obtained. If modification to training &
development causes decrease in employee turnover, the objective of
change would deemed to have been achieved. If the results contradict
the expectation, then a new change may be required to diagnose cause.
RESISTANCE TO CHANGE
Change is a constant phenomenon. Dynamic forces are always at play;
therefore, individuals must adjust and carry out the change. If the change is
implemented, society will continue and become hopeless.
Job Security, One of the major reasons for change is job security. Recently,
there has been a trend for downsizing the organization as a cost-cutting
measure. Introducing modern technology and systems should lead to the
organization’s productivity growth and not lead to employee turnover.
Lack of Communication Different people will see different meanings in the
proposed change. Management must communicate the need for change and the
process for implementing change. Employees should be co-opted right from the
beginning of the change process so that they are party to change and resistance is
reduced to a great extent.
• Rapidity and Extent of Change Autocratic leader- tends to introduce
change quickly. Resistance, therefore may be expected to the degree that the
persons influenced by the change have pressure put upon them to make it
happen. The resistance would be minimal if the change is minor and
involves routine operations.
• Group Phenomenon, Individuals on occasion resist change because the
group wants it that way. The importance of group cohesion, group norms,
code of conduct, and the security group provides to individuals play a
dominant role in individual behavior that makes them resist change.
• Loss of Power Downsizing of a department or posting of an executive to a
different department, where there is a reduction of the power base, will be
resisted by the affected individuals though it may be of overall interest to
the organization. For example, the superintendent of police of a district will
resist posting as an instructor at the police training academy.
• Technology changes are required for the growth of the organization. People have
now realized to be competitive. The latest technology, which improves human
skills, must be introduced in the organization. It is essential to consider that these
changes should replace no human resources. A certain amount of displacement
should be taken in stride. The introduction of technology that causes economic
loss and disturb social relationship are generally resisted.
• New Practices Due to the advent of technology and education, more and more
female employees are joining organizations. Some of them are serving in the
position of top decision-making. The people do not like women’s domination and
are therefore resisting. For survival, organizations have to adopt the strategy of
acquisitions and mergers, which the employees also resist.
Managing Resistance to Change
• Free flow of information and two-way communication is necessary. Negative attitudes
will likely be formed without proper communication while change is implemented.

• There is a general impression that benefits from change accrue to the organization and
management at the cost of workers. This is a false impression and must be corrected
by the appropriate authority. It must be remembered that without the full cooperation
of workers, no change can be planned, implemented, and the benefits enjoyed.

• Growth in the organization can only take place if workers bring it about. Management
must understand that workers are the critical element of any organization and must be
involved in the planning stage of change. This will result in increased productivity in
the organization
• Participation should not simply be a mechanical act of calling
employees to “Participate.” It should be clearly understood that no
straightforward panacea should be used in all situations. Participation
is not being universally followed.
• The leader must make conscious efforts to remove the fears of
employees. Participation should be a part of the comprehensive
treatment of change. Such participation of workers would ensure
commitment to the implementation of change.
• Participation
• Education
• Facilitation of change
• Negotiation
• Manipulation and cooperation
• Explicit and Implicit Coercion- Forcefully coercion, show cause
notice.
• Force Field analysis - When a decision to implement change has been
taken, it is necessary to identify and understand what forces are likely to
push change and what forces are likely to restrain it. Determining the
number and strength of driving and restraining force is called force field
analysis.
Organizational Development
• Organizational change is the process by which organizations move from their
present state to some desired future state to increase effectiveness. The goal
of planned organizational change is to find new or improved ways of using
resources and capabilities to increase an organization’s ability to create value
and improve returns to its stakeholders.
• An organization in decline may need to restructure its resources to improve
its fit with the environment. IBM and General Motors, for example,
experienced falling demand for their products in the 1990s and have been
searching for new ways to use their resources to improve their performance
and attract customers back.
• Over half of Fortune 500 companies have undergone significant
organizational changes in the last decade to increase their ability to create
value.
• Organizational development (OD) is a planned, systematic, and collaborative change
process that aims to improve an organization's effectiveness and health. It is a field of
study focusing on developing and implementing effective strategies to enhance
organizational performance, culture, structure, and processes.
• OD includes various interventions and methods, such as training and development
programs, team-building exercises, leadership coaching, communication training, and
performance management. These interventions help employees, teams, and the
organization do their jobs better.
• OD aims to make organizations more productive, efficient, and flexible to deal with
change and reach their goals. Everyone in the organization must work together, from
top managers to people who work directly with customers.
• Overall, OD is a holistic approach that focuses on improving the health and
performance of an organization by addressing its culture, structure, and processes
systematically and collaboratively.
Organizational Development
It is a planned change effort.
An OD program involves a systematic diagnosis of the organization, the
development of a strategic improvement plan, and the mobilization of
resources to carry out the effort.
It involves the total “system.”
An organization-development effort is related to a total organizational
change, such as a change in the culture or the reward systems, or the entire
managerial strategy
It is managed from the top.
In an organization-development effort, the top management of the system has
a personal investment in the program and its outcomes. They actively
participate in the direction of the action. This does not mean they must
participate in the same activities as others, but it does mean that they must
have both knowledge and commitment to the program's goals and must
actively support the methods used to achieve them.
It is designed to increase organizational effectiveness and health.
To understand the goals of organization development, it is necessary to have
some picture of what an “ideal” effective, healthy organization would look
like
• The change is set and planned, improve the change
• organizations should create, enhance, and consolidate strategies, structures,
and procedures. This is accomplished through organizational development, a
scientific method based on empirical research.
• The varied outcomes of OD interventions can include financial
performance, employee engagement, customer satisfaction, and general
change management because OD interventions aim to increase
organizational effectiveness.
Definitions

• OD interventions refer to the range of planned, programmatic

activities the client and consultant participate in during the OD
Program. “French Bell”

• OD intervention is a sequence of activities, actions, and events to help

an organization improve its performance and effectiveness. “Rober
Zawacki.”
• An intervention is a deliberate process by which change is introduced
into peoples’ thoughts, feelings, and behaviors.
Organizational development process
• Organizational development is a process of planned change aimed at
improving the effectiveness of an organization. The process typically
involves a series of steps designed to identify areas for improvement,
create a change plan, and implement and evaluate the changes. The
following are the main stages of the organizational development
process:
• Assessment: The first stage of organizational development is to assess
the organization’s current state. This involves gathering information
about the organization's structure, culture, processes, and systems, as
well as the attitudes and behaviors of employees and stakeholders.
• Planning: Once the assessment is complete, developing a change plan
is next. This involves setting goals and objectives, identifying
strategies and tactics to achieve them, and creating a timeline and
budget for implementation.
• Intervention: The intervention stage is where the actual change
process takes place. This can involve various activities, such as
training and development programs, team-building exercises,
leadership coaching, process improvements, or organizational
restructuring.
• Evaluation: Once the intervention is complete, it is important to
evaluate its effectiveness. This involves measuring the outcomes of the
intervention against the goals and objectives set out in the planning
stage, and making adjustments as necessary
• Maintenance: The final stage of organizational development is to
maintain the changes that have been implemented. This involves
creating systems and processes to ensure that the changes are
sustainable over the long term and continue to deliver the desired
outcomes.

• Overall, the organizational development process is cyclical, with each

stage informing the next, and ongoing evaluation and maintenance are
required to ensure continued improvement.