MODULE 1.

1.Group
• Group is defined as two or more individuals, interacting and
interdependent, who have come together to achieve particular
objectives
• Formal Groups, Informal Groups.
• Command Groups (determined by the Organization Chart)
• Task Groups (individuals working together to complete a task)
• Interest Groups
• Friendship Groups

For Security, Status, Self-Esteem, Affiliation, Power, Goal achievement

2. Importance of groups in an organization are:

Informal groups are important not only from the point of view of their members; they
have a great utility from organisation’s point of view also.

1. Filling in Gaps in Manager’s Abilities:

Informal organisation may act to fill in gaps in a manager’s abilities. For example, if a
manager is weak in planning, one of his subordinates may help him informally in such a
situation.

2. Solving work problems:

Informal organisation helps in solving the work problems of members. It allows sharing
job knowledge and taking decisions which affect a number of jobs.

3. Better coordination:

Informal groups evolve short-cuts and eliminate red tapism. They facilitate smooth flow
of information and quick decision-making. All these ensure better coordination among
various individuals and departments.
4. Channel of Communication:

Informal groups act to fill up the communication gaps which might arise in the
organisation. Informal communication cuts across the hierarchical and departmental
boundaries and transmits information with greater speed.

Management can use informal channels to share information with the workers and get
their reaction to management’s proposals. Informal communication can be of great use
to organisation, if it is handled by the management properly.

5. Restraint on Managers:

Informal groups do not allow the managers to cross their limits. They restrict them from
getting unlimited power and from using their power injudiciously.

6. Better relations:

A manager can build better relations with his subordinates through informal contacts.
He can consult the informal leaders and seek their cooperation in getting the things done
from the workers.

7. Norms of Behaviour:

Informal groups develop certain norms of behaviour which differentiate between good
and bad conduct and between legitimate and illegitimate activities. These bring
discipline and order among the employees of the organisation.

8. Developing Future Executives:

Informal groups recognise talented workers as their leaders. Such leaders can be picked
by the management to fill vacancies at the junior executive level in the future.

A group is a collection of individuals who interact with each other such that one
person’s actions have an impact on the others.

In other words, a group is defined as two or more individuals, interacting and

interdependent, who have come together to achieve particular objectives.

In organizations, most work is done within groups.

What is a Group?
Groups where people get along, feel die desire to contribute to the team, and are
capable of coordinating their efforts may have high-performance levels. Group can
be defined as a collection of individuals who have regular contact and frequent
interaction, mutual influence, the common feeling of camaraderie, and who work
together to achieve a common set of goals.

The definition of a group can be given by some other simple ways like:

 Several people or things that are together or in the same place.

 Several people who are connected by some shared activity, interest, or quality.

 Several individuals assembled or having some unifying relationship.

 A set of people who meet or do something together because they share the same
purpose or ideas.

The term group can be defined in several different ways, depending on the
perspective that is taken.

A comprehensive definition would say that is a group exists in an organization, its

members:

 Are motivated to join.

 Perceive the group as a unified unit of interacting with people.

 Contribute in various amounts to the group processes (that is, some people
contribute more time or energy to the group than do Others).

 Reach agreements and have disagreements through various forms of interaction.

Functions of Groups

The organizational functions of groups help to realize an organization’s goals.

Such functions include the following:

 Working on a complex and independent task that is too complex for an individual to
perform and that cannot be easily broken down into independent tasks.
 Generating new ideas or creative solutions to solve problems that require inputs from
several people.

 Serving liaison or coordinating functions among several workgroups whose work is

to some extent independent.

 Facilitating the implementation of complex decisions. A group composed of

representatives from various working groups can coordinate the activities of these
interrelated groups.

 Serving as a vehicle for training new employees, groups teach new members
methods of operations and group norms.

The list is not comprehensive. The importance of groups in organizations cannot be

overemphasized because most of the organizational activities are carried out by
groups.

Since jobs in organizations are becoming more complex and interdependent, the use
of groups in performing task functions will become increasingly important.

One of the most common findings from the research on groups in organizations is
that most groups turn out to have both formal and informal functions, they serve the
needs of both organizational and individual members.

Read more: Group Decision Making

Psychological groups, therefore, may well be the key unit for facilitating the
integration of organizational goals and personal needs.

For example, a formal workgroup in an industrial establishment often evolves into a

psychological group that meets a variety of its members’ psychological needs.

If this process occurs, the group often becomes the source of much higher levels of
loyalty, commitment, and energy in the service of organizational goals that would be
possible if the members’psychological needs had to be met elsewhere.

Types of Groups

Groups may be classified according to many dimensions, including function, the

degree of personal involvement and degree of organization.

Types of Groups are;

Formal Groups
Formal groups are created to achieve specific organizational objectives. Usually,
they are concerned with the coordination of work activities.

People are brought together based on different roles within the structure of the
organization. The nature of the task to be undertaken is a predominant feature of the
formal groups.

Goals are identified by management and short and rules relationships and norms of
behavior established. Formal groups chain to be related to permanent although there
may be changes in actual membership.

However temporary formal groups may also be created by management, for

example, the use of project teams in a matrix organization.

Informal Groups
Within the formal structure of the organization, there will always be an informal
structure.

The formal structure of the organization and system of role relationship, rule, and
procedures, will be augmented by interpretation and development at the informal
level.

Informal groups are based more on personal relationships and agreement of group’s
members than on defined role relationships. They serve to Satisfy psychological and
social needs not related necessarily to the tasks to be undertaken.

Groups may devise ways of attempting to satisfy members’ affiliations and other
social motivations that are lacing in the work situation, especially in industrial
organizations.

Managed Group
Groups may be formed under a named manager, even though they may not
necessarily work together with a great deal. The main thing they have in common, at
least the manager and perhaps a similar type of work.

Process Group
The process group acts together to enact a process, going through a relatively fixed
set of instructions. The classic environment is a manufacturing production line,
where every movement is prescribed.

There may either be little interaction within process groups or else it’ is largely
prescribed, for example where one person hands something over to another.
Semi-Formal Groups
Many groups act with less formality, in particular where power is distributed across
the group, forcing a more collaborative approach that includes- negotiation rather
than command and control.

Families, communities and tribal groups often act as semi-formal ways as they both
have nominal leaders yet members can have a high degree of autonomy.

Goal Group
The goal group acts together to achieve a shared objective or desired outcome.
Unlike the process groups, there is no clear instruction on how they should achieve
this, although they may use some processes and methods along the way.

As there is no detailed instruction, the members of the goal group need to bring
more intelligence, knowledge, and experience to the task.

Learning Group
The learning group comes together to increase their net knowledge. They may act
collaboratively with discussion and exploration, or they may be a taught class, with a
teacher and a syllabus.

Problem-Solving Group
Problem-solving groups come together to address issues that have arisen. They
have a common purpose in understanding and resolving their issue, although their
different perspectives can lead to particular disagreements.

Problem-solving may range along a spectrum from highly logical and deterministic,
to uncertain and dynamic situations there creativity and instinct may be better ways
of resolving the situation.

Friendship Group
Groups often develop because individual members have one or more common
characteristics. We call these formations of friendship groups.

Social alliances, which frequently extend outside the work situation, can be based on
similar age or ethnic heritage, support for Kolkata Knight Riders cricket, or the
holding of similar political views, to name just a few such characteristics.

Interest Group
People who may or may not be aligned into a common command or task groups
may affiliate to attain a specific objective with which each is concerned. This is an
interest group.
Employees who band together to have their vacation schedules altered, to support a
peer who has been fired, or to seek improved working conditions represent the
formation of a united body to further their common interest.

Differences between Formal Group and Informal

Group
Basis for
Formal Group Informal Group
Comparison

Groups created Groups created

by the by the
organization, to employees
Meaning accomplish a themselves, for
specific task, their own sake
are known as are known as
Formal Groups. Informal Groups.

Formation Deliberately. Voluntarily

Comparatively
Size Large.
small.

It depends on
It depends on
Life the type of
the members.
group.

Structure Well Defined. Not well defined.

The importance
Position. Person.
is given to

Relationship Professional. Personal.

Moves in a
Stretches in all
Communication defined
the directions.
direction.

 
Skills for a Healthy Group Climate
To work together successfully, group members must demonstrate a sense of
cohesion. Cohesion emerges as group members exhibit the following skills:

 Openness.

 Trust and Self-Disclosure.

 Support.

 Respect.

 Individual Responsibility and Accountability.

 Constructive Feedback.

Openness
Group members are willing to get to know one another, particularly those with
different interests and backgrounds. They are open to new ideas, diverse viewpoints,
and the variety of individuals present within the group.

They listen to others and elicit their ideas. They know how to balance the need for
cohesion within a group with the need for individual expression.

Trust and Self-Disclosure

Group members trust one another enough to share their ideas and feelings.

A sense of mutual trust develops only to the extent that everyone is willing to self-
disclose and be honest yet respectful. Trust also grows as a group the members
demonstrate personal accountability for the tasks they have been assigned.

Support
Group members demonstrate support for one another as they accomplish their
goals. They exemplify a sense of team loyalty and both cheer on the group as a
whole and help members who are experiencing difficulties.

They view one another not as competitors (which is common within a typically
individualistic educational system) but as collaborators.

Respect
Group members communicate their opinions in a way that respects others, focusing
on “What can we learn?” rather than “Who is to blame?”
Individual Responsibility and Accountability
All group members agree on what needs to be done and by whom. Each member
determines what he or she needs to do and takes responsibility to complete the
task(s).

They can be held accountable for their tasks, and they hold others accountable for
theirs.

Constructive Feedback
Group members can give and receive feedback about group ideas. Giving
constructive feedback requires focusing on ideas and behaviors, instead of
individuals, being as positive as possible and offering suggestions for improvement.

Receiving feedback requires listening well, asking for clarification if the comment is
unclear, and being open to change and other ideas.

6 Reasons Why Individuals Join Groups

A small group is a combination of more than two people who are interdependent on
one another.

So communication among the members of a group consisting of a small number of

members is known as small group communication.

Every organization employs small groups to collect, process, and produce

information, solve problems and make decisions.

Group communication helps to get a synergistic benefit. Synergy means combined

efforts of a group result in greater output than the sum of the individual output.

That is, groups can do more for individuals than individuals can do for themselves.
People join groups for many reasons.

Some group members are motivated by working in a group and others are motivated
by creating interpersonal relationships with other members of the group.

Great OB scholar K. Aswathappa said there is no single reason why individuals join
groups.

Since most people belong to many groups, it is obvious that different groups offer
different attractions and benefits to their members.
The most popular reasons for joining a group are related to our needs for security,
esteem, affiliation, power, identity, huddling, and task functions..

Security
Probably the strongest reason for group formation is the people’s need for security.
By joining a group we can reduce our insecurity – we feel stronger, have fewer self-
doubts, and are more resistant to threats.

Security
Probably the strongest reason for group formation is the people’s need for security.
By joining a group we can reduce our insecurity – we feel stronger, have fewer self-
doubts, and are more resistant to threats.

Esteem
An individual can increase his self-esteem through group membership.

First, one may gain esteem by becoming a member of a high-status group.

Associating with high-status people is reinforcing, and one who belongs to such a
group is usually accorded a high status by outsiders.

Second, the close relationship an individual can develop as a group member

provides opportunities for recognition and praise that are not available outside of the
group.

Affiliation
Another reason why people join groups is that they enjoy the regular company of
other people, particularly those who possess common interests. Individuals may
seek out others at work who shares common hobbies or common backgrounds.

Power
Membership of groups offers power to members in at least two ways.

First, there are sayings such as “united we stand, divided we fall” and there is
strength in numbers.” These are driving forces behind unionizations. Workers enjoy
much greater power collectively than they do as individuals.

Second, the leadership of an informal group enables an individual to exercise power

over group members, even if he does not enjoy the formal position of authority in the
organization.

Identity
Group membership contributes to the individual’s eternal quest for an answer to the
question “who am I”. It is common knowledge that’ tries to understand ourselves
through the behavior of others towards us.
If others praise us, we feel we are great, if others enjoy our jokes, we see ourselves
as funny persons, and so on. Groups provide several “others” who will laugh, praise
or admire us.

Huddling
One more reason why individuals want to join groups is for huddling.

Because of the way bureaucracies work, individuals, particularly executives, make

use of informal get-togethers called huddles. There are intimate task-oriented
encounters of executives trying to get something done. Huddling enables executives
to deal with emerging matters and minimize the amount of surprise.

It also serves to reduce red tape by cutting through hierarchical channels of

communication and minimizing misunderstandings.

Because organization charts represent real duties, huddling can compensate for a
lack of leadership by taking collective and unofficial responsibility for getting things
done.

The 5 Stages of Group Formation

Tuckman was responsible for coining the 5 main stages in the process of group
discussion. They are also known as Tuckman’s 5 stages of group development.
Moreover, these stages of group formation are meant to be followed in the exact
sequence as they are below:

Forming

This is a beginning stage and lasts only a few days (or weeks). Members begin by
planning their work and their new roles. Moreover, the emotions here are positive.
The groups should begin by learning about team processes in preparation for the
rough times ahead.

However, it is crucial for them to learn the aspects of conflict resolution,

communication, group decision-making and time management.

Storming

There exists a considerable amount of fights and arguments in this stage. People
begin to feel the stress of frustration, resentment, and anger. Moreover, as the
problem festers, the job remains undone.
Managers also experience frustration and are worried about the situation, thereby,
are tempted to intervene. Members experience a drastic emotional roller coaster
from elation to depression.

Moreover, the situation seems bleak. Usually, the storming period may last 1-2
months. Also, without effective training and support, the team may experience
retarded growth.

Conflicts are usually frowned upon. However, they are the definition of normal,
natural, and even necessary events in an organization. It is critical for the group to
handle it well because they are great in helping to build skill and confidence for the
next stage

Norming

In the norming stage, the group works through individual and social issues. The
group establishes its own norms of behaviour and begin to trust each other.
Moreover, as the group develops interpersonal skills, it becomes all the more
skilled.

Members begin the art and knack of problem-solving. They also cross-train and
learn new and adequate job skills. This stage usually lasts for 4-12 months.

Performing

In this stage, the group is ready to begin performing its respective task and assigned
jobs. In this stage, the group has become well acquainted with one another and has
clarity with regard to what needs to and has to be done. The performing stage
begins when the group is comfortable to work and ends when the job is completed.

Adjourning

Post the performing stage, the group is adjourned. The adjourning stage ends the
process of group formation. Because the group is adjourned once the task that is
assigned to the group is completed.

Apart from the stages of group formation, to know about the formation of a
business/company, Click Here
What Are Group Dynamics?
Kurt Lewin, a social psychologist and change management expert, is
credited with coining the term "group dynamics" in the early 1940s. He
noted that people often take on distinct roles and behaviors when they work
in a group. "Group dynamics" describes the effects of these roles and
behaviors on other group members, and on the group as a whole.

More recent researchers have built on Lewin's ideas, and this work has
become central to good management practice.

A group with a positive dynamic is easy to spot. Team members trust one
another, they work towards a collective decision, and they hold one another
accountable for making things happen. As well as this, researchers have
found that when a team has a positive dynamic, its members are nearly
twice as creative as an average group.
In a group with poor group dynamics, people's behavior disrupts work. As a
result, the group may not come to any decision, or it may make the wrong
choice, because group members could not explore options effectively.

What Causes Poor Group Dynamics?

Group leaders and team members can contribute to a negative group
dynamic. Let's look at some of the most common problems that can occur:

 Weak leadership: when a team lacks a strong leader, a more

dominant member of the group can often take charge. This can lead to a
lack of direction, infighting, or a focus on the wrong priorities.
 Excessive deference to authority: this can happen when people want
to be seen to agree with a leader, and therefore hold back from
expressing their own opinions.
 Blocking: this happens when team members behave in a way that
disrupts the flow of information in the group. People can adopt blocking
roles such as:
 The aggressor: this person often disagrees with others, or is inappropriately
outspoken.
 The negator: this group member is often critical of others' ideas.
 The withdrawer: this person doesn't participate in the discussion.
 The recognition seeker: this group member is boastful, or dominates the session.
 The joker: this person introduces humor at inappropriate times.
 Groupthink : this happens when people place a desire for consensus
above their desire to reach the right decision. This prevents people from
fully exploring alternative solutions.
 Free riding: here, some group members take it easy, and leave their
colleagues to do all the work. Free riders may work hard on their own,
but limit their contributions in group situations; this is known as "social
loafing."
 Evaluation apprehension: team members' perceptions can also create
a negative group dynamic. Evaluation apprehension happens when
people feel that they are being judged excessively harshly by other
group members, and they hold back their opinions as a result.

Strategies for Improving Team Dynamics

Use these approaches to improve group dynamics:

Know Your Team

As a leader, you need to guide the development of your group. So, start by
learning about the phases  that a group goes through as it develops. When
you understand these, you'll be able to preempt problems that could arise,
including issues with poor group dynamics.
Next, use Benne and Sheats' Group Roles  to identify positive and negative
group roles, and to understand how they could affect the group as a whole.
This will also help you plan how to deal with potential problems.

Tackle Problems Quickly

If you notice that one member of your team has adopted a behavior that's
affecting the group unhelpfully, act quickly to challenge it.

Provide feedback  that shows your team member the impact of her actions,

and encourage her to reflect on how she can change her behavior.

Define Roles and Responsibilities

Teams that lack focus or direction can quickly develop poor dynamics, as
people struggle to understand their role in the group.
Create a team charter  – defining the group's mission and objective, and
everyone's responsibilities – as soon as you form the team. Make sure that
everyone has a copy of the document, and remind people of it regularly.

Meaning of Cohesiveness:
Group cohesiveness is one of the characteristic features of the groups, which is very
important from behaviouristic point of view. Cohesiveness is the degree to which the
group members are attracted to each other and are motivated to stay in the groups.
Cohesiveness defines the degree of closeness that the members feel with the groups.
It is understood as the extent of liking each member has towards others in the group
and how far everyone wants to remain as a member of the group.

Consequences of Cohesiveness:
Group cohesiveness has only positive consequences.

These positive outcomes are explained in detail as follows:

1. More Participation:
Higher the degree of group cohesiveness, closer will be the interpersonal
relationships among the members. As a result members will participate actively in
group affairs and activities. As the members consider the group as their own, just like
a family, they will help other members of the group in times of need which will
further strengthen their bonds. The turnover of members will be very low. If possible,
all the members attend the group meetings and group activities and take active part
in discussions relating to preparing of strategies for achieving individual and group
goals.

2. More Conformity:
ADVERTISEMENTS:

One of the factors which influence cohesiveness is similarity of attitudes and values.
As a result, members tend to like each other and perceive themselves as similar.
These characteristics lead members to be relatively dependent on the group for
satisfaction and, thus, they are susceptible to being influenced. For example, if any
member is getting involved in organisational politics for enhancing his personal
goals, the group might put social pressure on him and make him comply with the
group norms.
3. More Success:
Cohesiveness and success are mutually dependent upon each other. Cohesiveness
makes the goal achievement easier and goal achievement adds to success. The reason
for this relationship is that higher degree of cohesiveness leads to high degree of
communication, participation and conformity to group norms. Such coordinated
efforts result in agreement about the goals to be achieved, the methods of achieving
them and finally achieving the final goals.

4. More Communication:
Members of cohesive groups communicate with each other more than the members
of non-cohesive groups. Because the members share common ideologies, goals,
backgrounds or attitudes, they are inclined to greater communicativeness. Such
communication is reinforcing as it tends to foster and cement positive social
relations as well as depth in personal relationships.

5. More Personal Satisfaction:

Members of cohesive groups are more satisfied as compared to members of non-
cohesive groups. Thus is understandable because if members are not satisfied they
will leave the group and join some other group. Members are more satisfied due to so
many factors which include friendliness, respect, support, achievement, protection
and a feeling of security.

6. High Productivity:
ADVERTISEMENTS:

Cohesiveness may contribute to increased productivity because:

(i) People in cohesive groups experience fewer work related anxieties and tensions

(ii) Highly cohesive groups tend to have lower absenteeism and turnover and

(iii) Cohesiveness decreases productivity differences among groups.

ADVERTISEMENTS:

Studies consistently show that the relationship of cohesiveness and productivity

depends on the performance related norms established by the group. If performance
related norms are high, a cohesive group will be more productive than will a less
cohesive group. But if cohesiveness is high and performance norms are low,
productivity will be low.
If cohesiveness is low and performance norms are high, productivity increases but
less than in high cohesiveness-high norms situation. Where cohesiveness and
performance related norms are both low, productivity will tend to fall into the low to
moderate range.

MODULE 2
A team is a group of individuals (human or non-human) working together to achieve
their goal.
As defined by Professor Leigh Thompson of the Kellogg School of Management, "[a]
team is a group of people who are interdependent with respect to information,
resources, knowledge and skills and who seek to combine their efforts to achieve a
common goal".[1]
A group does not necessarily constitute a team. Teams normally have members with
complementary skills[2] and generate synergy[3] through a coordinated effort which
allows each member to maximize their strengths and minimize their weaknesses.
Naresh Jain (2009) claims:
Team members need to learn how to help one another, help other team members
realize their true potential, and create an environment that allows everyone to go
beyond their limitations.[4]

Comparison Chart
BASIS
FOR
GROUP TEAM
COMPARI
SON

Meaning A A group of
collection persons
of having
individual collective
s who identity
work joined
together together,
in to
completin accomplish
 BASIS
FOR
GROUP TEAM
COMPARI
SON

g a task. a goal.

Leadership Only one More than

leader one

Members Independe Interdepen

nt dent

Process Discuss, Discuss,

Decide Decide and
and Do.
Delegate.

Work Individual Collective

Products

Focus on Accomplis Accomplis

hing hing team
individual goals.
goals.

Accountabil Individual Either

ity ly individuall
y or
mutually

Types of Teams [Advantages and Disadvantages]

Teams can be divided into four main groups: project teams, self-managed teams, virtual
teams, and operational teams. What type of team you have depends on its purpose,
location, and organizational structure. Each type of team comes with its unique set of
 strengths and weaknesses. In order to fully utilize your team, you first need to
understand where each type of teams works the best.

Project Teams

Project teams are groups of employees who work collectively toward shared goals. This
type of team allows you to structure work in a specific, measurable, and time-
constrained way. You can assign clear roles, responsibilities, and deadlines. Also, by
selecting both experienced and inexperienced workers, you enable them to do informal
coaching and mentoring.

There are four main types of project teams:

Functional Teams

These teams are permanent and always include members of the same department with
different responsibilities. A manager is responsible for everything, and everyone reports
to him. These types of teams are more likely to be found in companies that
incorporate traditional project management.

Sometimes, in order to complete a project, several departments need to work together.

For example:

 Work on the new product starts with the idea from the marketing department;
 The idea is passed down to research and development to determine its feasibility;
 After R&D, the design department is tasked with giving it an appealing look and
feel;
 And finally, the product is made by the manufacturing department.

This type of approach is known as ‘baton passing’. It requires a manager that has
oversight of the entire project and ensures that there are no obstacles when it comes to
transferring work from one team to another.

Advantages and Disadvantages of Functional Teams

Advantages:

 Handles routine work

 Line management has control of projects
 Pools technical and professional expertise

Disadvantages:

 Difficult communication across areas

 Pushing the decision-making process upwards
 Inflexible

Cross-functional Teams

Cross-functional teams are made up of members from various departments. These

teams tackle specific tasks that require different inputs and expertise. Even though
cross-functional teams are becoming increasingly popular worldwide, a recent study has
proven that a whopping 75% of all cross-functional teams are dysfunctional.

Advantages and Disadvantages of Cross-functional Teams

Advantages:

 Greater speed of task completion

 Can handle a wide array of projects
 Source of unconventional ideas

Disadvantages:

 Takes long to develop cohesion

 Management can prove to be challenging
 Diversity can cause conflict

Matrix Teams

These teams are characterized by a “two-boss system”, where an individual report to

a different manager for various aspects of his work. This type of team is the product
of Matrix management approach.
 Let’s say Jeff, a designer, was given a task of making a design for a new product that
marketing provided an idea for and that R&D deemed feasible. By being included in this
project, Jeff all of a sudden has two bosses: the first one is a project manager who only
cares about the design being done, while the other one is his functional line manager
who’s in charge of Jeff’s training, career development, and routine tasks.

While this approach helps the top management retain control over the project without
being included in day-to-day decisions, employees are often faced with challenges
of dual command: Jeff now has to report to two managers, whom might give him conflict
instructions, which causes confusion and frustration.

Advantages and Disadvantages of Matrix Teams

Advantages:

 Acceptable to traditional managers

 Flexibility for assigned personnel
 Top management controls projects, stays out of daily activities

Disadvantages:

 Dual reporting
 The team leader is usually unable to choose who will be on the project
 Difficult performance appraisal

Contract Teams

Contract teams are outsourced teams that are tied down by a contract and brought in to
complete a part of a project. After the project is completed and the contract has ended,
the client can cut all ties to the team, no questions asked.

The project manager is the key to success when it comes to contract teams. The
project manager has to:

 maintain constant communication between the team and the client,

 compensate for the lack of a team’s physical presence (given that most contract
teams work remotely),
 bear full responsibility for the success or failure of a project
 Advantages and Disadvantages of Contract Teams

Advantages:

 Easy employment of experts

 A team can use the existing management structure
 No need for client training

Disadvantages:

 Difficult assessment of project progress for the client

 Difficult to resolve political and organizational issues
 The client is the only judge of success

Self-managed Teams

Typically, members of self-managed teams are employees of the same organization who
work together, and even though they have a wide array of objectives, their aim is to
reach a common goal. There is no manager nor authority figure, so it is up to members
to determine rules and expectations, to solve problems when they arise, and to carry
shared responsibility for the results.

One of the first major companies that decided to implement self-managed teams

was software company Valve in 2012. Around 300 employees have neither bosses nor a
formal division of labor. Instead, they are expected to organize themselves around
individual or group projects and are obligated to take care of customer support
themselves. The work ethic at Valve relied heavily on individual responsibility.

When setting up a self-managed team, you have to define two parameters:

 Levels of responsibility
 Autonomy that is given to the self-managed team

Research has shown that employees in self-managed teams feel more useful on the job
and find their jobs more challenging, although there is no proof that they are actually
more productive.

Advantages and Disadvantages of Self-Managed Teams

Advantages:
 Autonomy improves employee motivation;
 Team members can manage their own time and handle tasks when it suits them;
 You don’t have to pay for an office;
 Shared responsibility instills pride in team accomplishments.

Disadvantages:

 The lack of hierarchical authority can put personal relationships over good
judgment;
 It can lead to conformity that suppresses creativity and critical thinking;
 An added layer of responsibility is time-consuming and requires skills that some
people simply don’t have;
 Training time and costs are higher due to a broader scope of duties.

Virtual Teams

Virtual teams are made up of people who work in different physical locations and who
rely heavily on collaboration tools to get things done together. Virtual teams provide
members with better life-work balance and allow business owners to employ the best
experts in the field, regardless of the fact that they live on another continent.

One of the organizations that had the most success with its virtual teams is Automattic,
best known by their company, WordPress. Over 100 employees in 43 different countries
use Wordpress plugin P2 that enables them to communicate with each other in real-
time. Also, when a new employee gets on board he receives $2.000 stipend to improve
his home office, gets the latest Macbook, and an open “time off” policy to use take free
time whenever they need.

It may seem a little farfetched, but this policy is one of the key factors behind Automatic’s
success: Wordpress is now used by 27.5% websites globally.

Types of virtual teams

According to the Manager’s guide to virtual teams, virtual teams are characterized by

three dimensions:

 Time - WHEN people work. They could work during different hours, on different
shifts, or in different time-zones.
 Space - WHERE people work. They could be working right next to each other or
hundreds of miles away.
 Culture - HOW and WHOM people work for. ‘Culture’ dimension includes factors
such as gender, race, language, profession, education, nationality, as well as political,
social, religious, and economic factors.

Operational teams

Operational teams support other types of teams. They are formed to make sure that all
back office processes go smoothly.

For example, the Human Resource department doesn’t handy any projects but it has to
perform candidate screening, interviewing, and recruiting. If one of the key players
decides to leave, HR has to find a substitute so the respective team can carry on its
work.

Also, operational teams can have their own projects and function like a project team
because they have well-defined roles and responsibilities. For instance, if accounting
department received a task to make an annual financial report by a certain date, they will
most likely devise a timeline, delegate tasks, and keep track of deadline just like any
other project team.

The 5 Dysfunctions
Why are teams so dysfunctional? They are made up of individuals with
varied interests, strengths and weaknesses. You know the saying, “The road
to hell is paved with good intentions” — the same is true for human
behavior. Even the most well-intentioned people slip into unproductive and
unhealthy behavior.

Combine that with a manager who isn’t skilled in team building and guiding
in this area, and bam — dysfunctional team. But Lencioni says with
knowledge, courage and discipline, teams can just as quickly become not
only cohesive, but high performing.

The five dysfunctions are stacked in a pyramid and are hierarchical, much
like Maslow’s Hierarchy of Needs. Without building a strong foundation on
the bottom, there is no achieving the higher level goals.
Dysfunction #1 : Absence of Trust

PROBLEM: This occurs when team members are reluctant to be

vulnerable with one another and are unwilling to admit their mistakes,
weaknesses, or need for help. Without a certain comfort level among team
members, a foundation of trust is not possible.
SOLUTION: As the manager, set the good example by asking for help from
your team members, admitting your own weaknesses and limitations, and
be the first to own up to a mistake. When you take the lead, others will
follow. Slowly, these habits will become culture and the team will begin to
build the first unshakable brick in the pyramid — trust.

Dysfunction #2: Fear of Conflict

PROBLEM: Teams that lacktrust are incapable of engaging in unfiltered,

passionate debate about key issues, causing situations where team conflict
can easily turn into veiled discussions and back channel comments. In a
work setting where team members do not openly air their opinions, there is
a lot of posturing and precious time is wasted, resulting in inferior decisions.
SOLUTION: Establish that conflict is welcome and purposeful. Define
what healthy conflict looks like by praising healthy examples or giving
corrective feedback if conflict veers towards unhealthy. You can also “mine
for conflict” by opening a meeting with a bad idea to see if everyone will
agree to avoid conflict, and use this as a litmus test to open up healthy
discussion. Lastly, you can designate a devil’s advocate in a meeting, or use
pro and con lists for ideas to get people to open up to sharing a differing
perspective.

Dysfunction #3: Lack of Commitment

PROBLEM: Without conflict, it is difficult for team members to commit to

decisions, creating an environment where ambiguity prevails. Lack of
direction and commitment can make employees, particularly star
employees, disgruntled.
SOLUTION: Clarity and closure are paramount to overcome this
dysfunction and move to the next level. Setting clear deadlines, reviewing
key decisions at the end of meetings as well as what should and should not
be communicated to other staff and contingency planning can help teams
overcome there fears by creating clear plans and facing potential pitfalls and
the fear of failure head on so everyone can commit.

Dysfunction #4: Avoidance of Team Accountability

PROBLEM: When teams don’t commit to a clear plan of action, even the

most focused and driven individuals hesitate to call their peers on actions
and behaviors that may seem counterproductive to the overall good of the
team. This allows for mediocrity, poor performers to slip by and the leader
to become the soul source of discipline.
SOLUTION: If teams have come this far, they have trust and commitment,
then they will know that a team member calling them out not only has the
right to do so because expectations and deadlines were clear, but that it is
not a personal attack. This allows team members to confront difficult issues
to hold each other accountable. Clear standards, progress reviews and team
rewards are also important to make sure this area stays healthy.

Dysfunction #5: Inattention to Team Objectives

PROBLEM: Team members naturally tend to put their own needs (ego,

career development, recognition, etc.) ahead of the collective goals of the
team when individuals aren’t held accountable. If a team has lost sight of the
need for achievement, the business ultimately suffers.
SOLUTION: When teams have a solid base of trust, healthy conflict,
commitment and team accountability and are recognized within the
company for performance via praise or rewards, it will be easier for team
members to put their own needs aside for the sake of the team. With these
solutions, teams should be able to retain top performers, handle failure with
resilience and stay focused.
Dysfunctional Group Behaviours
A group can become dysfunctional when one or more individuals behave in
ways that inhibit the group’s ability to function and perform well.

Sometimes the whole group may collude with each other in the same
behaviour or behaviours and collectively impede its effectiveness as a
group.

The group may develop the collective habit of leaving things too late, or not
taking deadlines seriously, or never challenging each other.

Usually it is one or two members who behave dysfunctionally (literally,

against the functioning of the group).

It far better to deal with, or even prevent, dysfunctional behaviours in a

group as early as possible in the life of that group. At the end of your first
group meeting, allow some time to ‘check out’ with each other. Everyone
gets a chance to speak and to share their reflections on that first group
meeting. What went well? What went less well? What suggestions do they
have for improving how the group functions next time we meet?

Below is a list of such dysfunctional group behaviours. They can only be

dealt with if they are embodied in a set of ground rules or if the group
members agree to be open, honest and constructive. Speak out before
things get worse! And also remember to praise, to say what worked well,
and to celebrate success.

Dynamics of informal Groups:

Informal groups almost always arise if opportunities exist. If management prescribes
production norms that the group considers unfair, the group’s recourse is to adopt
less demanding norms and to use its ingenuity to discover ways in which it can
sabotage management’s imposed standards. Thus they counteract the tendency of
the organization to get more output from the workers.

Informal groups have a powerful influence on the effectiveness of an organization.

But the informal group’s role is not limited to resistance. The impact of the informal
group upon the larger formal group depends on the norms that the informal group
sets. So the informal group can make the formal organization more effective, too.

A norm is an implied agreement among the group’s membership regarding how

members in the group should behave. From the perspective of the formal group,
norms generally fall into three categories-positive, negative, and neutral,’ In other
words, norms either support, obstruct, or have no effect on the aims of the larger
organization.
MODULE 3

What is Team Building ?

Team building refers to the various activities undertaken to motivate the team members and
increase the overall performance of the team. You just can’t expect your team to perform on their
own. A motivating factor is a must. Team Building activities consist of various tasks undertaken to
groom a team member, motivate him and make him perform his best.

We all are human beings and love appreciation. Any individual performing exceptionally well must be
appreciated well in public. He feels happy and motivated to perform even better the next time. If any
team member has come out with a unique idea; treat him with any thing that makes him happy. Never
criticize any team member or demotivate him if he has failed to perform. Ask him to “Buck up”.
Team Building and Team
Effectiveness
Effective teams need to understand their goals, roles and processes. Teams should contribute at
a level where the ‘whole is greater than the sum of the parts’. This requires careful management
and does not happen by accident. Team members collaborate better and contribute more when
they understand the impact of their approach and behaviour.
Our teambuilding and team effectiveness work is great fun. We use games and simulation to
encourage people to work together and better understand the impact of their behaviour.
At the end of this event you and your team will be closer to being high performing. You can
expect an improvement in:

 Clarity of purpose
 Team alignment and engagement
 Visible collaboration and focus to improve the contribution
 Increased self-awareness
 Greater understanding of impact and influence
 Understanding of the strengths and weaknesses of the team
 Mitigation of the potential risks associated with team weakness
 The creation of an objective language to give feedback to the group

Our team building and team effectiveness programmes are typically based upon:
 

TEAM FUNCTIONING

The functioning of the team is not a matter of course and there is no ready-made formula for guaranteeing the
functioning of the team. However, thinking about and being aware of the factors which affect the functioning of
the team promote the functioning and cooperation of the team. Factors facilitating cooperation and the
functioning of the team include the following:

 Safety, confidence and appreciation. In order that a human being can have a sense of liberation and
place his entire capacity at the disposal of the team, he must be able to feel that he is accepted and deemed
important.
 Common objective and commitment to it. The team has to have jointly approved goals and
objectives. Sufficient time and resources must be allocated to negotiations concerning common goals and
 objectives. Discussions and finding a common view motivate and induce people to commit themselves to
team functioning.
 Common action modes and sharing of work duties. It is important for the functioning of the team to
agree on the action modes related to economy, social intercourse and leadership. Work duties and
responsibilities also need to be shared.
 Supporting and encouraging members. Constructive feedback and the support of the team promote
the functioning of individuals and of the entire team.
 Social skills and efficient communication. Teamwork both requires and develops social skills. A
common understanding cannot be achieved without efficient communication.
 Atmosphere of openness. An open and honest atmosphere promotes the efficiency of the team’s
functioning.
 Responsibility. In addition to one's own actions, every member of the team is also responsible for the
achievements of the entire team.
 Differences between members. Differences are not obstacles or problems. On the contrary,
individuals with different skills and knowledge often achieve better results than a homogenous team.
 Ability to confront problems. The ability of the team to confront different problems affects the
development of the team. Teams should be given elbow room and opportunities for resolving problems.
Resolving problems brings the team closer together and promotes a sense of team spirit. Being able to clear
up problems can be very significant as a learning experience. (Katzenbach 1998; Koppinen ym. 1993;
Squivel & Kleiner 1997.)
 Managing Conflict»
The Advantages & Disadvantages of Collaborating Conflict Management
by Sampson Quain; Reviewed by Jayne Thompson, LLB, LLM; Updated March 05, 2019

Conflict resolution is an essential aspect of running a successful small business. Without a proven method

to resolve workplace conflicts, your company will degenerate into a hotbed of competing agendas,

hostility, and low morale, none of which are the hallmarks of a thriving business. Collaborating conflict

management, which is sometimes referred to as a “win-win” strategy, is an effective means of restoring

peace, but there are benefits and drawbacks you must understand.

Collaborating Means Compromise

Two or more parties, in which each wants something different, always generate conflict. The key,

therefore, is to determine the extent to which each party in the conflict is willing to compromise.

For example, if two employees are arguing about who will do a specific task, and neither wants to

give an inch, finding a happy medium in which both parties feel satisfied is the only solution. This

is the essence of collaborating conflict management, which focuses on finding a compromise that

will make all parties feel as if they got what they wanted, even if it isn’t exactly what they thought

they wanted.

To achieve this resolution, collaborating conflict management stresses the need for a mediator to

listen to the wants, needs, fears, and concerns of all sides. The approach must be mild and non-

confrontational because the goal is to make all parties feel comfortable expressing their point of

view.
Advantages of Collaborating Conflict Management

The primary advantage of collaborating conflict management is that it makes all parties

involved in the dispute feel valued and understood. When you critically listen to the concerns

people in conflict have with each other, you diffuse the hostility by allowing free expression.

Many conflicts are generated because the sides aren’t listening to each other, so they tend to

misunderstand the source of the other side’s reasons for not giving in. When everyone in a

dispute expresses the totality of their concerns, it can foster understanding, empathy and

mutual respect.

Another advantage is that it sets the tone for future conflict resolutions, and it gives those

involved the shared responsibility to resolve the problem.

Disadvantages of Collaborating Conflict Management

The main disadvantage of collaborating conflict management is that it takes a lot of time,

energy and effort to achieve a resolution. The reason is that because the desired outcome is

a “win-win,” a mediator must sift through multiple solutions before achieving compromise. This

delay can affect workplace productivity, and may increase tension and resentment.

Another disadvantage is that there may not be a solution that provides a victory for all

parties involved, and if all parties are not committed to compromise, collaboration conflict

management will fail.

Conflict Resolution Strategy #1: Avoiding

Avoiding is when people just ignore or withdraw from the conflict. They choose this
method when the discomfort of confrontation exceeds the potential reward of
resolution of the conflict. While this might seem easy to accommodate for the
facilitator, people aren’t really contributing anything of value to the conversation and
may be withholding worthwhile ideas. When conflict is avoided, nothing is resolved.

Conflict Resolution Strategy #2: Competing

Competing is used by people who go into a conflict planning to win. They’re assertive
and not cooperative. This method is characterized by the assumption that one side
wins and everyone else loses. It doesn’t allow room for diverse perspectives into a
well informed total picture. Competing might work in sports or war, but it’s rarely a
good strategy for group problem solving.
Debra wrote an illuminating article on how conflict resolution failure can lead to
revolution. It’s what can happen when people feel like they aren’t being listened to
and start being assertive.
Conflict Resolution Strategy #3: Accommodating
Accommodating is a strategy where one party gives in to the wishes or demands of
another. They’re being cooperative but not assertive. This may appear to be a
gracious way to give in when one figures out s/he has been wrong about an
argument. It’s less helpful when one party accommodates another merely to
preserve harmony or to avoid disruption. Like avoidance, it can result in unresolved
issues. Too much accommodation can result in groups where the most assertive
parties commandeer the process and take control of most conversations.

Conflict Resolution Strategy #4: Collaborating

Collaborating is the method used when people are both assertive and cooperative. A
group may learn to allow each participant to make a contribution with the possibility
of co-creating a shared solution that everyone can support.

A great way to collaborate and overcome conflict is to reach out and touch them.
Conflict Resolution Strategy #5: Compromising
Another strategy is compromising, where participants are partially assertive and
cooperative. The concept is that everyone gives up a little bit of what they want, and
no one gets everything they want. The perception of the best outcome when working
by compromise is that which “splits the difference.” Compromise is perceived as
being fair, even if no one is particularly happy with the final outcome.

You can learn more about the Thomas-Kilmann Instrument on their website here.
We have also written several other articles on conflict resolution strategies. Looking
for something specific? Send us your questions!

Sensitivity Training definition

A type of emotional training designed to help people become more aware of their
intrinsic judgements and prejudices and ultimately more sensitive to the needs of
others. The founder of sensitivity training is generally seen as German-American
psychologist Kurt Lewin, who developed a series of change experiments for the
Connecticut State Interracial Commission in 1946.

There are a variety of methods and programmes used within sensitivity training,
including T-group and encounter group. Sensitivity training is derived from group
psychotherapy and, like psychotherapy, is designed to facilitate maximum sharing
and interaction between participants.
Sensitivity training is considered beneficial to organisations because it encourages
the development or more close-knit and efficient teams. Since sensitivity training
is often introduced following a discriminatory incident, it can also help reduce the
negative effects of these incidents and encourage a positive outcome from a
negative event.

Some critics of sensitivity training say its techniques are not dissimilar from
brainwashing.

Techniques of Counselling:
The effective counselling needs counselling skills, complete information about the
persons to be counselled i.e. the information relating to his motives; experience,
weaknesses, strength, attitudes and behaviour should be collected before counselling.

After gathering complete information through various sources the counselling

services be provided to the person. The techniques of counselling cannot be
uniformly adopted. They vary from person to person and also depend on
circumstances.

Counselling is not a modern phenomenon it is practiced since the evolution of

mankind. Only the need of it is very severely felt in modern times. Counselling is a
two way process. Counsellor can help the counsellee if he cooperates with counsellor
and open his heart to him, otherwise counselling becomes a difficult task. However,
there are certain techniques of counselling that can be followed and adopted as per
the need of the situation and counsellee.

The following are some of the techniques:

1. Releasing Emotional Tension:
Some people are more emotional. They become so at everything. They take things
emotionally and they come into the grip of emotions very often. The emotions are
associated with fear, respect, insult, anxiety, guilt, hostility etc. If the counsellee is
under emotional tension it is to be released. The counsellee is to be taken into
confidence and listen to him carefully as if counsellor is the only caretaker of him.
Try to know the real causes of his emotional breakdown.

When he will narrate the causes, gradually he will overcome the pain and
embarrassment related with his guilt. He is caught in emotional whirl, may be
because of guilty feeling resulting out of non fulfillment of promises or he has been
insulted by someone. Discharging the counsellee of emotional tensions is a very
difficult job and needs patience from counsellor. Only the expert counsellor can do
the job of releasing emotional tensions. Releasing emotional tension is a process of
getting out of your mind and heart.

Release of emotional tension helps to gain power of going through or looking into
and understanding the things in their proper perspective and the reasons that has
affected his behaviour. He will then make an analysis of the situation and overcome
the emotions and whisk away the tension. Coming under the influence of emotions is
a human weakness present in almost all the human beings. When he overcomes this
weakness he realizes that he was unnecessarily caught up in the emotional grip which
was impractical and far away from the facts.

2. Effective Communication:
Effective two way communication help subordinates to narrate their difficulties to
their superiors through which many problems get automatically solved. Supervisor
can perform the job of counselling. Effective two way communication remove fear
from the minds of the subordinates and they talk freely and open up their mind to
the superior who can render necessary advice then and there and can help him
getting the tension of any kind released.

Through effective communication the superior can understand the subordinate’s

point of view and develop counselling relationship with the counsellee. Supervisor as
counsellor understand what the employee means to say through communication with
him. Communication thus is a tool and a method of counselling. The counsellor
supervisor should take a note that he should abstain from stressing his own point of
view on the counsellee employee. Through communications, counsellor can divulge
counselee’s prejudice against himself or others. Similarly misunderstanding and
misconception can be removed.

3. Clarified Thinking:
One should think positively and shun negative thinking. It is negative thinking needs
to be removed from the mind of counsellee. Negative thinking helps developing
misunderstanding, distrust and lies. Counsellor should develop new pattern of
thinking. Counsellee should be motivated and encouraged to think positively.
Positive thinking helps building up cordial relationship with the colleagues and
superiors. Manager should develop cordial relationship with his subordinates not
only for counselling but also for his success in the organisation.
4. Performance Counselling:
As the name suggests it relates with the performance. If the employee is not keeping
his performance constant and it is below standard then counselling is required to
maintain the standard level of performance. Performance gets affected by many
reasons. Those reasons must be spotted by the counsellor and try to remove them
from the counsellee. If he is taking leaves and remaining absent citing petty reasons
from the work he should be taken into confidence and remove the reasons for
remaining absent.

5. Counselling Against Alcoholism and Drug:

Alcoholism and drugs especially alcoholism in India is the major problem. It severely
affects the productivity and cost that affects the organisation quite heavily. Alcohol
and drug users remain absent frequently and consume more sick leaves as compared
to other employees.

They feel tardiness at the workplace and make their departure early. They cannot
judge properly and cannot make decisions and very prone to accidents. Serious
efforts on the part of the organisation and the counsellors are needed to bring back
alcoholics and drug addicts on the track. They should be treated properly. Counsellor
should develop friendship with them and take them into confidence and convince
them of the benefits of not drinking and make aware against the health hazards of
alcohol and drugs.

Organisations must take lead in arranging for counselling and sponsor programmes
for treatment of alcoholics and drug addicts. Alcoholics should be motivated not to
drink and lectures by experts of religious and spiritual nature will also help them to
get rid of their bad drinking habits. It is very difficult for alcoholics to get rid of his
drinking habits. It is also equally difficult for counsellor to convince him to abstain
from drinking. But dark cloud has a silver lining. If he is properly educated of the
better life free from alcohol he will lead a normal life.

The managerial grid model (1964) is a style leadership model developed by Robert R.

Blake and Jane Mouton.
This model originally identified five different leadership styles based on the concern
for people and the concern for production.
The optimal leadership style in this model is based on Theory Y.
The grid theory has continued to evolve and develop. The theory was updated with
two additional leadership styles and with a new element, resilience.
 In 1999, the grid managerial seminar began using a new text, The Power to Change.
The model is represented as a grid with concern for production as the x-
axis and concern for people as the y-axis; each axis ranges from 1 (Low) to 9 (High).
The resulting leadership styles are as follows:
 The indifferent (previously called impoverished) style (1,1): evade and elude. In this style,
managers have low concern for both people and production. Managers use this style to preserve job
and job seniority, protecting themselves by avoiding getting into trouble. The main concern for the
manager is not to be held responsible for any mistakes, which results in less innovation decisions.
 The accommodating (previously, country club) style (1,9): yield and comply. This style has a
high concern for people and a low concern for production. Managers using this style pay much
attention to the security and comfort of the employees, in hopes that this will increase performance.
The resulting atmosphere is usually friendly, but not necessarily very productive.
 The dictatorial (previously, produce or perish) style (9,1): in return. Managers using this
style also pressure their employees through rules and punishments to achieve the company goals. This
dictatorial style is based on Theory X of Douglas McGregor, and is commonly applied by companies
on the edge of real or perceived failure. This style is often used in cases of crisis management.
 The status quo (previously, middle-of-the-road) style (5,5): balance and compromise.
Managers using this style try to balance between company goals and workers' needs. By giving some
concern to both people and production, managers who use this style hope to achieve suitable
performance but doing so gives away a bit of each concern so that neither production nor people
needs are met.
 The sound (previously, team) style (9,9): contribute and commit. In this style, high concern is
paid both to people and production. As suggested by the propositions of Theory Y, managers
choosing to use this style encourage teamwork and commitment among employees. This method
relies heavily on making employees feel themselves to be constructive parts of the company.
 The opportunistic style: exploit and manipulate. Individuals using this style, which was
added to the grid theory before 1999, do not have a fixed location on the grid. They adopt whichever
behaviour offers the greatest personal benefit.
 The paternalistic style: prescribe and guide. This style was added to the grid theory before
1999. In The Power to Change, it was redefined to alternate between the (1,9) and (9,1) locations on
the grid. Managers using this style praise and support, but discourage challenges to their thinking.

What Is Interpersonal Behavior?

Credit: Hill

Interpersonal behavior is the behavior and actions that are present in human relationships.
The way in which people communicate, and all that this entails, is considered interpersonal
behavior.

Interpersonal behavior may include both verbal communication and nonverbal cues, such as
body language or facial expressions. Verbal interpersonal behavior consists of joking,
relating to one another via the art of storytelling, and taking or following orders. Interpersonal
skills are highly desirable in many situations, specifically careers that rely on personal
relationships such as the health care industry or sales.

The study of interpersonal behavior is a social science that examines the way people interact
with one another.
Influence is defined as the force one person exerts on another person to induce a
change in the targeted individual. Influencing can change a person’s behavior, attitude,
goals, opinions, needs and values. Influence is a necessary part of leadership. It is
concerned with how the leader affects followers. Influence is a necessary ingredient of
leadership, without influence, leadership is non-existent. The influence dimension of
leadership requires the leader to have an impact on the lives of those being led. To
make a change in other people comes with an enormous amount of social and ethical
burden.

Various types of influence processes and the factors affecting them

Leaders use variety of influence process to alter the behavior of people. The influence
process changes according to the demands of the situation. Influence processes refer to
the five ways leaders shape organizational variables including people and resources.
The five influence processes are direct decisions, allocation of resources, reward
system, selection and promotion of other leaders and role modeling. Each will be
discussed in detail in the following paragraphs:
Direct decisions: Direct decisions provide the leaders the ability to influence the choices
of their followers. This ability to influence comes with the control leaders have in
formulating mission and vision aspects of an organization. The most important aspect
giving power to leader in the organizational structure is their ability to influence the
variables affecting their followers through direct decisions. Leaders’ ability to make
decisions influencing organizational structure give them the power to dictate decision
making in the organization and set overall direction of the organization
Allocation of resources: Leaders make use of their power over various organizational
resources such as human, money and technological resources to significantly impact the
way work is carried out in an organization. For example if a department is in serious
need of funds a leader has the power to grant additional money to the department in
addition to the portion allocated to the department in the annual budget.
Reward system: Leader can make use of their power to reward to influence the actions
and behaviors of their employees. A leader can offer monetary incentive to followers in
case the followers conform to certain behavioral standards and achieve goals necessary
for meeting the overall organization objective.
Selection and promotion of other leaders: Leaders can also influence their followers by
making use of their power to promote the leaders who meet individual as well as
organizational goals and objectives.
Role modeling: Finally one of the most important ways leaders can mould the behavior
and opinion of their followers is by acting as a role model. Followers always follow the
path leader is taking. If a leader possesses high moral and ethical standard there are
greater chances that their followers will also have high ethical and moral standards.
Interpersonal communication is the method and means for how we communicate with one
another. Communication can be between siblings, spouses, strangers, co-workers, friends,
etc. When you think about it, interpersonal communication is an inherent part of our
everyday lives. That's why effective communication is important, and there are four factors
that influence interpersonal communication:

• Cultural
 • Situational
• Developmental
• Physical

These factors should be considered during communication because each factor presents
potential barriers in communication that might influence the effectiveness of how we interact
with each other or within groups of people.

Cultural Factors
Cultural factors include language, belief systems, morality, perspective, and customs.
Language affects our communication because of the differences in translations and
colloquialisms. Language barriers can also arise within our own language because of jargon
or slang. Belief systems and morality have a large impact on how we communicate and who
we communicate with.
For example, a heated debate between a republican and a democrat or an atheist and a
Christian is an example of the barriers associated with belief systems and morality.
Perspective or our attitudes certainly affect communication, and can be closely tied to
morality and belief systems. Customs or the cultural practices of one person may be different
from another. That, too, often presents a barrier for communication.

Power
Power is the ability to influence others and have strong self-control under complex
circumstances. All interpersonal communication or interactions reflect some form of
power, which may be obvious or hidden. Obvious power refers to people who occupy
a higher position in business or government and have to communicate with their
employees or subjects. People in power positions may exert their power on
individuals who are not equally competent, and this inequality could act as a barrier
to effective communication.

Noise
Noise is one of the external factors that act as barriers to effective communication.
Noise interferes with or disrupts communication by causing a divergence between
the receiver and the communicator. Some examples of physical noise include
running motors, horns, screeching brakes and children crying. In a classroom
setting, if children create noise or murmur among themselves, this becomes a
hindrance to communication, preventing the teacher's message from being received
the way she intended.

Technology
Electronic mail, most commonly referred to as email, is becoming the most popular
medium for interpersonal communication. When exchanging emails, if a person
makes grammatical errors or spelling mistakes, it can create a wrong impression on
the receiver. People share messages or communicate via electronic media without
visual or oral information. Lacking face-to-face contact with its sensory input,
individuals start imagining other people based on their electronic communication
style and pattern. This can become a technological hindrance that can hamper
effective interpersonal communication.

The Johari Window Model

The method of conveying and accepting feedback is interpreted in this model. A Johari is
represented as a common window with four panes. Two of these panes represent self and the
other two represent the part unknown to self but to others. The information transfers from
one pane to the other as the result of mutual trust which can be achieved through socializing
and the feedback got from other members of the group.

1. Open/self-area or arena – Here the information about the person his attitudes, behaviour,
emotions, feelings, skills and views will be known by the person as well as by others. This is
mainly the area where all the communications occur and the larger the arena becomes the
more effectual and dynamic the relationship will be. ‘Feedback solicitation’ is a process
which occurs by understanding and listening to the feedback from another person. Through
this way the open area can be increased horizontally decreasing the blind spot. The size of
the arena can also be increased downwards and thus by reducing the hidden and unknown
areas through revealing one’s feelings to other person.
2. Blind self or blind spot – Information about yourselves that others know in a group but
you will be unaware of it. Others may interpret yourselves differently than you expect. The
blind spot is reduced for an efficient communication through seeking feedback from others.
3. Hidden area or façade – Information that is known to you but will be kept unknown from
others. This can be any personal information which you feel reluctant to reveal. This includes
feelings, past experiences, fears, secrets etc. we keep some of our feelings and information as
private as it affects the relationships and thus the hidden area must be reduced by moving
the information to the open areas.
4. Unknown area – The Information which are unaware to yourselves as well as others. This
includes the information, feelings, capabilities, talents etc. This can be due to traumatic past
experiences or events which can be unknown for a lifetime. The person will be unaware till
he discovers his hidden qualities and capabilities or through observation of others. Open
communication is also an effective way to decrease the unknown area and thus to
communicate effectively
Self-awareness is "an awareness of one's own personality or individuality".[1] It is not
to be confused with consciousness in the sense of qualia. While consciousness is
being aware of one's environment and body and lifestyle, self-awareness is the
recognition of that awareness.[2] Self-awareness is how an individual consciously
knows and understands their own character, feelings, motives, and desires. There
are two broad categories of self-awareness: internal self-awareness and external
self-awareness.[3]

Social facilitation is defined as improvement in individual performance when working with

other people rather than alone.
In addition to working together with other people, social facilitation also occurs in mere
presence of other people. Previous research have found that individual performance are
improved by coaction, performing a task in presence of others who are performing a similar
task, and as well as having a mere audience while performing a certain task. An example of
coaction triggering social facilitation can be seen in instances where cyclists' performances
are improved when cycling along with other cyclists as compared to cycling alone. An
instance where having an audience triggers social facilitation can be observed in a situation
where weightlifter lifts heavier weight in the presence of an audience. Social facilitation has
occasionally been attributed to the fact that certain people are more susceptible to social
influence, with the argument that personality factors can make these people more aware of
evaluation.

Social loafing describes the tendency of individuals to put forth less effort when they are part
of a group. Because all members of the group are pooling their effort to achieve a common goal,
each member of the group contributes less than they would if they were individually responsible. 1
Example of Social Loafing
Imagine that your teacher assigned you to work on a class project with a group of ten other
students. If you were working on your own, you would have broken down the assignment into steps
and started work right away. Since you are part of a group, however, the social loafing tendency
makes it likely that you would put less effort into the project. Instead of assuming responsibility for
certain tasks, you might just think that one of the other group members will take care of it.
What is Interpersonal Trust
1.

Defined as the willingness of a party to be vulnerable to the actions of another based on assessments
about the characteristics of the trustee such as ability, benevolence and integrity. Learn more in:
Role of Trust in Ecommerce: A Comprehensive Model of Interpersonal and Technology Trust
Constructs

2.

Interpersonal trust is a strong, deep, or close association or acquaintance between two or more
people that may range in duration from brief to enduring. Learn more in: Improving Recommendation
Accuracy and Diversity via Multiple Social Factors and Social Circles

3.

The willingness of a party to be vulnerable to the actions of another based on assessments about the
characteristics of the trustee such as ability, benevolence and integrity. Learn more in: Dimensions of
Technology Trustworthiness and Technology Trust Modes

4.

A belief that another person is honest and benevolent. Learn more in: The Sociological Determinants
of Internet Use in Tunisian Exporting Companies

Interpersonal Conflict
An interpersonal conflict is a disagreement in some manner which can be emotional, physical,
personal, or professional between two or more people. Such disagreements are commonplace in
families, workplaces, and society in general and are not necessarily physical or violent. If the
situation involved is important it behooves the participants to sit down and calmly discuss the
issues involved before the situation becomes more volatile. Examples of interpersonal conflicts
include a married couple fighting over finances or two employees fighting over who gets a
promotion.

Group decision making is a type of participatory process in which multiple individuals acting
collectively, analyze problems or situations, consider and evaluate alternative courses of
action, and select from among the alternatives a solution or solutions. The number of people
involved in group decision-making varies greatly, but often ranges from two to seven. The
individuals in a group may be demographically similar or quite diverse. Decision-making
groups may be relatively informal in nature, or formally designated and charged with a
specific goal. The process used to arrive at decisions may be unstructured or structured. The
nature and composition of groups, their size, demographic makeup, structure, and purpose,
all affect their functioning to some degree. The external contingencies faced by groups (time
pressure and conflicting goals) impact the development and effectiveness of decision-
making groups as well.
In organizations many decisions of consequence are made after some form of group
decision-making process is undertaken. However, groups are not the only form of collective
work arrangement. Group decision-making should be distinguished from the concepts of
teams, teamwork, and self managed teams. Although the words teams and groups are often
used interchangeably, scholars increasingly differentiate between the two. The basis for the
distinction seems to be that teams act more collectively and achieve greater synergy of
effort. Katzenback and Smith spell out specific differences between decision making groups
and teams:

• The group has a definite leader, but the team has shared leadership roles
• Members of a group have individual accountability; the team has both individual and
collective accountability.
• The group measures effectiveness indirectly, but the team measures performance
directly through their collective work product.
• The group discusses, decides, and delegates, but the team discusses, decides, and
does real work.

GROUP DECISION MAKING METHODS

There are many methods or procedures that can be used by groups. Each is designed to
improve the decision-making process in some way. Some of the more common group
decision-making methods are brainstorming, dialetical inquiry, nominal group technique, and
the delphi technique.

BRAINSTORMING.
Brainstorming involves group members verbally suggesting ideas or alternative courses of
action. The "brainstorming session" is usually relatively unstructured. The situation at hand is
described in as much detail as necessary so that group members have a complete
understanding of the issue or problem. The group leader or facilitator then solicits ideas from
all members of the group. Usually, the group leader or facilitator will record the ideas
presented on a flip chart or marker board. The "generation of alternatives" stage is clearly
differentiated from the "alternative evaluation" stage, as group members are not allowed to
evaluate suggestions until all ideas have been presented. Once the ideas of the group
members have been exhausted, the group members then begin the process of evaluating
the utility of the different suggestions presented. Brainstorming is a useful means by which to
generate alternatives, but does not offer much in the way of process for the evaluation of
alternatives or the selection of a proposed course of action.
One of the difficulties with brainstorming is that despite the prohibition against judging ideas
until all group members have had their say, some individuals are hesitant to propose ideas
because they fear the judgment or ridicule of other group members. In recent years, some
decision-making groups have utilized electronic brainstorming, which allows group members
to propose alternatives by means of e-mail or another electronic means, such as an online
posting board or discussion room. Members could conceivably offer their ideas
anonymously, which should increase the likelihood that individuals will offer unique and
creative ideas without fear of the harsh judgment of others.

DIALETICAL INQUIRY.
Dialetical inquiry is a group decision-making technique that focuses on ensuring full
consideration of alternatives. Essentially, it involves dividing the group into opposing sides,
which debate the advantages and disadvantages of proposed solutions or decisions. A
similar group decision-making method, devil's advocacy, requires that one member of the
group highlight the potential problems with a proposed decision. Both of these techniques
are designed to try and make sure that the group considers all possible ramifications of its
decision.

NOMINAL GROUP TECHNIQUE.

The nominal group technique is a structured decision making process in which group
members are required to compose a comprehensive list of their ideas or proposed
alternatives in writing. The group members usually record their ideas privately. Once
finished, each group member is asked, in turn, to provide one item from their list until all
ideas or alternatives have been publicly recorded on a flip chart or marker board. Usually, at
this stage of the process verbal exchanges are limited to requests for clarification—no
evaluation or criticism of listed ideas is permitted. Once all proposals are listed publicly, the
group engages in a discussion of the listed alternatives, which ends in some form of ranking
or rating in order of preference. As with brainstorming, the prohibition against criticizing
proposals as they are presented is designed to overcome individuals' reluctance to share
their ideas. Empirical research conducted on group decision making offers some evidence
that the nominal group technique succeeds in generating a greater number of decision
alternatives that are of relatively high quality.

DELPHI TECHNIQUE.
The Delphi technique is a group decision-making process that can be used by decision-
making groups when the individual members are in different physical locations. The
technique was developed at the Rand Corporation. The individuals in the Delphi "group" are
usually selected because of the specific knowledge or expertise of the problem they
possess. In the Delphi technique, each group member is asked to independently provide
ideas, input, and/or alternative solutions to the decision problem in successive stages. These
inputs may be provided in a variety of ways, such as e-mail, fax, or online in a discussion
room or electronic bulletin board. After each stage in the process, other group members ask
questions and alternatives are ranked or rated in some fashion. After an indefinite number of
rounds, the group eventually arrives at a consensus decision on the best course of action.

ADVANTAGES AND DISADVANTAGES

OF GROUP DECISION MAKING
The effectiveness of decision-making groups can be affected by a variety of factors. Thus, it
is not possible to suggest that "group decision making is always better" or "group decision
making is always worse" than individual decision-making. For example, due to the increased
demographic diversity in the workforce, a considerable amount of research has focused on
diversity's effect on the effectiveness of group functioning. In general, this research suggests
that demographic diversity can sometimes have positive or negative effects, depending on
the specific situation. Demographically diverse group may have to over-come social barriers
and difficulties in the early stages of group formation and this may slow down the group.
However, some research indicates that diverse groups, if effectively managed, tend to
generate a wider variety and higher quality of decision alternatives than demographically
homogeneous groups.
Despite the fact that there are many situational factors that affect the functioning of groups,
research through the years does offer some general guidance about the relative strengths
and weaknesses inherent in group decision making. The following section summarizes the
major pros and cons of decision making in groups.

ADVANTAGES.
Group decision-making, ideally, takes advantage of the diverse strengths and expertise of its
members. By tapping the unique qualities of group members, it is possible that the group
can generate a greater number of alternatives that are of higher quality than the individual. If
a greater number of higher quality alternatives are generated, then it is likely that the group
will eventually reach a superior problem solution than the individual.
Group decision-making may also lead to a greater collective understanding of the eventual
course of action chosen, since it is possible that many affected by the decision
implementation actually had input into the decision. This may promote a sense of
"ownership" of the decision, which is likely to contribute to a greater acceptance of the
course of action selected and greater commitment on the part of the affected individuals to
make the course of action successful.

DISADVANTAGES.
There are many potential disadvantages to group decision-making. Groups are generally
slower to arrive at decisions than individuals, so sometimes it is difficult to utilize them in
situations where decisions must be made very quickly. One of the most often cited problems
is groupthink. Irving Janis, in his 1972 book Victims of Groupthink, defined the phenomenon
as the "deterioration of mental efficiency, reality testing, and moral judgment resulting from
in-group pressure." Groupthink occurs when individuals in a group feel pressure to conform
to what seems to be the dominant view in the group. Dissenting views of the majority opinion
are suppressed and alternative courses of action are not fully explored.
Research suggests that certain characteristics of groups contribute to groupthink. In the first
place, if the group does not have an agreed upon process for developing and evaluating
alternatives, it is possible that an incomplete set of alternatives will be considered and that
different courses of action will not be fully explored. Many of the formal decision-making
processes (e.g., nominal group technique and brain-storming) are designed, in part, to
reduce the potential for groupthink by ensuring that group members offer and consider a
large number of decision alternatives. Secondly, if a powerful leader dominates the group,
other group members may quickly conform to the dominant view. Additionally, if the group is
under stress and/or time pressure, groupthink may occur. Finally, studies suggest that highly
cohesive groups are more susceptible to groupthink.
Group polarization is another potential disadvantage of group decision-making. This is the
tendency of the group to converge on more extreme solutions to a problem. The "risky shift"
phenomenon is an example of polarization; it occurs when the group decision is a riskier one
than any of the group members would have made individually. This may result because
individuals in a group sometimes do not feel as much responsibility and accountability for the
actions of the group as they would if they were making the decision alone.
Decision-making in groups is a fact of organizational life for many individuals. Because so
many individuals spend at least some of their work time in decision-making groups, groups
are the subjects of hundreds of research studies each year. Despite this, there is still much
to learn about the development and functioning of groups. Research is likely to continue to
focus on identifying processes that will make group decision-making more efficient and
effective. It is also likely to examine how the internal characteristics of groups (demographic
and cognitive diversity) and the external contingencies faced by groups affect their
functioning.

Read more: https://www.referenceforbusiness.com/management/Gr-Int/Group-
Decision-Making.html#ixzz6EP4ncs17 1
GROUP SYNERGY
. a social process that occurs when a group, by acting in concert, achieves an outcome that
is superior to what would be achieved by the most capable member or by any simple pooling
of individual member efforts, often summarized by the phrases “the whole is greater than the
sum of the parts” or “2 + 2 = 5.” See also assembly bonus effect.

2. in Raymond B. Cattell’s group psychology, the sum of all individual members’ energy
going into the group: that is, the total available group energy or investment in itself.

MODULE 5
The Organizational Process
Organizing, like planning, must be a carefully worked out and applied process. This process involves
determining what work is needed to accomplish the goal, assigning those tasks to individuals, and
arranging those individuals in a decision‐making framework (organizational structure). The end
result of the organizing process is an organization — a whole consisting of unified parts acting in
harmony to execute tasks to achieve goals, both effectively and efficiently.

A properly implemented organizing process should result in a work environment

where all team members are aware of their responsibilities. If the organizing process
is not conducted well, the results may yield confusion, frustration, loss of efficiency,
and limited effectiveness.

In general, the organizational process consists of five steps (a flowchart of these

steps is shown in Figure 1):

    1.Review plans and objectives.

 Objectives are the specific activities that must be completed to achieve goals. Plans shape
the activities needed to reach those goals. Managers must examine plans initially and
continue to do so as plans change and new goals are developed.

    
    2.Determine the work activities necessary to accomplish objectives.

Although this task may seem overwhelming to some managers, it doesn't need to be.
Managers simply list and analyze all the tasks that need to be accomplished in order to
reach organizational goals.

     3.Classify and group the necessary work activities into manageable units.

A manager can group activities based on four models of departmentalization:

functional, geographical, product, and customer.

    4.Assign activities and delegate authority.

Managers assign the defined work activities to specific individuals. Also, they give
each individual the authority (right) to carry out the assigned tasks.

    5.Design a hierarchy of relationships.

A manager should determine the vertical (decision‐making) and horizontal

(coordinating) relationships of the organization as a whole. Next, using the
organizational chart, a manager should diagram the relationships.

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 Organizational Culture vs.
Organizational Climate
17 April 2018
Creating a sustainable work environment where employees feel engaged,
loyal and satisfied should be the goal of every organization. After all, if
people dislike their workplace, they’re going to be unproductive at best and
perhaps even quit, taking their skills and knowledge with them — leaving
you with the high cost of finding replacements. The value of an employee
who looks forward to going to work versus one who doesn’t result in a 10%
increase in customer satisfaction. It should be well known by now that the
long and involved process of recruiting, interviewing, selecting and training
ends up being rather expensive. It also brings the unpleasant side effect of
lost production, not just because no one is doing the work once performed
by the employee who left, but also because the new hire is drawing labor
resources away from other tasks.
In the hope of improving engagement and productivity through talent
alignment and development, many conversations have been had,
presentations and seminars delivered and literal and digital ink spilled.
Throughout this discourse, the terms organizational culture and
organizational climate get thrown around a lot, often interchangeably.
However, they’re not the same thing, and the difference is important.

Defining Organizational Culture

Organizational culture is your identity as a company. It’s your values and
the norms that have arisen organically over time.
Common Values Include:

 Competitiveness – Embracing the desire to be more successful

 Quality – Assessing accuracy and logically thinking over situations
and problems
 Innovation – Risk-taking and introducing new ideas
 Outcome Orientation – Focusing on overall results and achievements
 Stability – Having a sense of security
A traditional bank, for example, is by necessity a structured environment,
as the banking industry is heavily regulated by well-established laws.
Banking is an old industry, which suggests the culture has had a long time
to develop and is firmly ensconced. It follows that you’d probably find a
culture where people are expected to follow proper channels and defer to
the chain of command — where being too “entrepreneurial” in your
methods and practices (i.e., making it up as you go) would be frowned
upon and where staff members present a calm, courteous face to the
customer so as to convey trust and reliability.
On the other hand, a tech start-up is likely to be more collaborative and
unstructured. Disruptive conflict and ideas might be welcome. Everyone
from the company president to the newest intern may communicate
laterally and casually.
Every organization is different, and while these examples might seem like
they’re taken from a TV show representation rather than real life if you’ve
had jobs in more than two industries, you know first-hand that cultural
norms vary widely from one industry to the next.

Defining Organizational Climate

Organizational climate deals with how people are experiencing the work
environment at any given moment. What is it like to work there and to
operate in that culture? How are business conditions and management
decisions and actions affecting the general mood? When you consider the
collective experience of all the talent in the organization, you’re evaluating
climate.
Revenue swings, for example, can affect climate without changing the
culture. If you work for a freight-transport company built around a culture of
process and efficiency, and then revenue drops, you’d probably double
down on improving processes and efficiencies; you’re not likely to abandon
them. At the same time, employees might feel resentful or despondent that
their bonuses were canceled and a couple of their friends were laid off. The
culture stayed the same, but the climate changed.
Another way of looking at it: When people aren’t going to fit the culture, it’s
usually obvious right from the interview. They might not get a job offer in
the first place, and, even if they do, they are unlikely to stick around long
because they will feel like outcasts or be miserable. If the climate is
troubled, people who do fit the culture and would ordinarily be engaged and
satisfied may become unproductive or quit.
This distinction is important because problems with culture and problems
with climate are resolved with different solutions.
organizational effectiveness is defined as an extent to which an
organization achieves its predetermined objectives with the given amount
of resources and means without placing undue strain on its members.
Sometimes efficiency and effectiveness are used as synonyms. However,
there exists a difference between the two concepts. Therefore, it is
important to explain the difference between the concepts of effectiveness
and efficiency to understand why organizations may be effective but not
efficient, or efficient but not effective. Effectiveness is a broad concept and
takes into account a collection of factors both inside and outside an
organization. It is commonly referred to as the degree to which
predetermined goals are achieved. On the other hand, efficiency is a
limited concept that pertains to the internal working of an organization. It
refers to an amount of resources used to produce a particular unit of
output. It is generally measured as the ratio of inputs to outputs. Further,
effectiveness concentrates more on human side of organizational
values and activities whereas efficiency concentrates on the technological
side of an organization.
Approaches to Organizational Effectiveness
However the concept of organizational effectiveness is not simple because
there are many approaches in conceptualizing this term. Such approaches
can be grouped into following three approaches:
1. Goal Approach
Goal attainment is the most widely used criterion of organizational
effectiveness. In goal approach, effectiveness refers to maximization of
profits by providing an efficient service that leads to high productivity and
good employee morale. Several variables such as quality, productivity,
efficiency, profit, turnover, accidents, morale, motivation and satisfaction,
which help in measuring organizational effectiveness. However, none of the
single variable has proved to be entirely satisfactory.
The main limitation of this approaches the problem of identifying the real
goals rather than the ideal goals.

2. Functional Approach
This approach solves the problem of identification of organizational goals.
Parson states that since it has been assumed that an organization is
identified in terms of its goal, focus towards attainment of these goals
should also aim at serving the society. Thus, the vital question in
determining effectiveness is how well an organization is doing for the
super-ordinate system.
 The limitation of this approach is that when organizations have autonomy to
follow its independent courses of action, it is difficult to accept that ultimate
goal of organization will be to serve society. As such, it cannot be applied
for measuring organizational effectiveness in terms of its contributions to
social system.

Both the goal and functional approach do not give adequate consideration
to the conceptual problem of the relations between the organization and
its environment.
3. System Resource Approach
System-resource approach of organizational effectiveness emphasizes
on inter-dependency of processes that relate the organization to its
environment. The interdependence takes the form of input-output
transactions and includes scarce and valued resources such as physical,
economic and human for which every organization competes.

The limitation of this model is that an acquisition of resources from

environment is again related to the goal of an organization. Therefore, this
model is not different from the goal model.

Thus, discussion of organizational effectiveness leads to the conclusion

that there is no single indicator of effectiveness. Instead, the approach
should focus on operative goals that would serve as a basis for
assessment of effectiveness.

Managerial effectiveness is a causal variable in organizational

effectiveness. It has been defined in terms of organizational goal-achieving
behavior, i.e., the manager’s own behavior contributes to achievement of
organizational goals.

Factors Affecting Organizational Effectiveness

Likert has classified the factors affecting organizational effectiveness into
following three variables:
• Causal Variables: Causal variables are those independent variables
that determine the course of developments within an organization and the
objectives achieved by an organization. These causal variables include
only those independent variables, which can be altered by organization and
 its management. Causal variables include organization and management’s
policies, decisions, business and leadership strategies, skills and behavior.
• Intervening Variables: Intervening variables according to Likert are
those variables that reflect the internal state and health of an organization.
For example, loyalties, attitudes, motivations, performance goals and
perceptions of all the members and their collective capacity for effective
interaction, communication and decision-making.
• End-Result Variables: End-Result variables are the dependent
variables that reflect achievements of an organization such as its
productivity, costs, loss and earnings.
• Power in Organizations

• Power is the ability to make things happen according to one’s

perspective by getting someone else to do it for you. It is mainly
beneficial in organizations where the managers assign tasks to different
employees and make them do those tasks. It is their role to guide on
what employees should do to achieve organizational success. Power aids
in providing a sense of direction towards the organizational goals.

Organizational Development techniques

An organization will work together with a team of change agents in order to draft up the
intervention plan and agree on the changes and techniques that are to be implemented. The
following activities aim to help both organizations and employees get closer to and fulfill
their potential.

1. Survey feedback
The survey technique involves data be collected via a questionnaire. The collected
information is meant to help managers make decisions. The answers to the survey feedback
will range from quality of work, working condition, working hours, salaries, and employees’
attitude in relation to all of the above.

The team of managers proceeds to analyze and interpret the gathered data. They pinpoint
problems, assess the results and start drafting plans for solutions. All the members of the
organization are expected to submit this data. Manager meetings are meant to bring
subordinates and superiors together in order to discuss the information and interpret it. All
levels of management play an active role in this technique whose end result is implementing
necessary changes.
2. Team building
Team buildings have been increasing in popularity as an independent component of
Organizational Development. Within OD, team buildings are designed to improve the
capacity of the organization’s members of working together in a harmonious environment.
Organizational effectiveness can be boosted through enhancing work group dynamics and
promoting a safe and understanding working place.

In order to help team members open up and speak their minds on work related issues, the
professional trainer will lead group discussions. The trainer does not actively participate in
the discussion, but merely guides the conversation in order to ensure maximum efficiency.
Team buildings’ main purpose is to increase sensitivity to team members’ behavior by
promoting a healthy group functioning. Interpersonal interactions and behavior play a
significant part of team buildings, encouraging employees to express their views.

3. Sensitivity Training
One of the most popular Organizational Development techniques, sensitivity training asks
employees to interact in order to better understand each other. As a result, team members get
better acquainted, form bonds, cease to be judgmental and prone to become more motivated
and efficient in the working environment.

Carrying out free communications and forming interpersonal relationships are bound to
improve their group experience as a team, offering members the chance to unequivocally
express themselves in a safe and controlled workplace. Sensitivity training will not only
increase awareness of self but also awareness of others. These two are some of the main
pillars of Organizational Development, on which trust and comfort are meant to build a new
order within the company.

4. Brain Storming
This Organizational Development technique involves six to eight managers coming together
and pitching ideas for solving a problem. Brain Storming aims to promote creative thinking,
whilst bringing team leaders together and helping them engage in a lucrative discussion of
fixing a common issue. The participants are required to critically assess the matter that is put
forward. They are then asked to contribute new ideas or new angles on tackling the conflict.
The principle behind brain storming is that managers come together and build a plan based on
.all of their suggestions

No expert conducts the discussions, which encourages all leaders to speak freely and make
suggestions. The brain storming technique is meant to get participants to debate potential
solutions and choose the best ones. All of this is done in a safe environment where members
can express themselves freely.

5. Management by Objectives
Part of Management Development, this technique is also successfully used in Organizational
Development as a method of reviewing and assessing performance. Management by
Objectives implies clearly pinpointing the goals of the organization and assigning them to
managers. Their responsibility is to deliver results in a time efficient manner.

This result oriented technique is meant to promote the joint effort of team leaders, laying the
grounds for an excellent appraisal system. The accomplished objectives will be used to
measure the performance of the managers.

The Management by Objectives technique is generally carried out in four essential steps:

 Objectives set by top management.

 Individual targets and objectives.

 Autonomy in choosing strategies.

 Performance review and appraisal.

6. Quality circles
This technique requires up to a dozen team members to come together on their own accord in
order to discuss important work related issues and come up with efficient solutions that can
be implemented by the management team. The method that has its roots in the 60s is meant to
be carried out once a week during working hours. Any team member who feels they can
bring their contribution is free to join the discussion.

Quality circles have been shown to heighten moral, reduce costs and boost quality in the
working environment. All the success of the technique is owed to the effort of the participants
who are willing to devote their time in order to pitch solutions and join forces to fix
problems.

7. Process consultation
An expert or an Organizational Development consultant gives feedback to the trainee and
offers insight into solving problems. Process consultation can help team members experience
a change of perspective and experiment with various problem fixing suggestions. The clear
insight provided by the expert or consultant is extremely valuable since it offers both team
members and top managers guidelines on how to approach, handle and tackle a wide array of
work-related problems.

Steps in the Process of Organisation

So we can broadly list the steps in the process of organisation as follows:

1] Identification and Division of work

The organisational work commences with an identification of the extent and the
amount of work that needs to be done and dividing this into manageable activities.
The idea behind this is to eliminate duplication and share the burden of work.

2] Departmentalisation

Now as the work has been redefined as a number of manageable activities, the next
step is to group activities according to a predefined basis. This basis decided what
activities are similar to each other. All the similar activities are assigned to a
particular department. All in all, a number of departments are defined that are
concerned with their own set of activities.

3] Assignment of Duties

The next step involves the distribution of work among the employees. The
responsibility of looking after the functioning of each department is given to an
individual. Further, jobs are allocated to the employees.
It is important to realize that this assignment of jobs should be done in such a
manner that the employees most suited for a particular type of job ultimately
perform it. This ensures, a proper match between the ability and the type of job of
the employee and subsequently effective overall performance.

4] Establishing Reporting Relationships

The final step is concerned with erecting a hierarchical structure and

effecting communication among the diverse departments. This is done by
establishing relationships. Effectively this means that every employee should be
made aware of whom he has to take orders from and prove his accountability.

Importance of Organisation
Organisation brings adaptability to the table for any enterprise. It helps in a smooth
transition in accordance with the dynamic business environment. To point out, this
is achieved by facilitating growth and survival. The importance of organisation is
highlighted as follows;

Benefits of Specialisation

Organisation assigns work in a systematic manner to the diverse employees within

an organisation. It ensures that suitable work is handed out repetitively to an
employee who is a good performer in his field. An employee working regularly in a
specific area gains invaluable experience in the long run. Consequently, this leads
to specialisation.

Clarity in Working Relationships

As discussed before, organisation induces accountability by defining relationships

among the employees within an enterprise. This is done by defining whom an
employee is accountable to. In effect, it provides an ordered flow of information
and instructions. Furthermore, this also helps in clarification of the extent of
authority, responsibility and provides for a hierarchy.

Optimum Utilisation of Resources

Organisation helps in optimum utilisation of financial and human resources. It not

only aids in the proper assignment of jobs to suitable employees but also keeps
track that there is no waste of resources and efforts due to duplication of work.

Effective Administration

Another important feature of organising is that it ensures that the jobs are clearly
defined within an enterprise such that there is no duplication and wastage. Coupled
with, facilitating the clarification of work relationships, it promises effective
administration.

Development of Personnel

Assignment of jobs to suitable personnel is an important step for the organisation.

This delegation of jobs helps in the induction of creativity in managers. This
happens because, with the help of delegation, a manager not only looks to reduce
the workload but also discover new ways of getting the tasks done.

Further, this gives them the tie to explore areas for growth of the company. From
the employee’s perspective, it generates experience and prepares him to face new
challenges which effectively helps him to realise his full potential.

Growth and Expansion

Organisation ensures that the enterprise undertakes new challenges. As a result, the
company grows and diversifies.