Organizational Behavior: A General Managerial Concept, Controversies, and Approach

Organizational Behavior Al-Habib Group of Colleges maan_fsd@yahoo.
com
ORGANIZATIONAL BEHAVIOR
A General Managerial Concept, Controversies, and Approach
NOTES FOR MASTER CLASSES
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Organizational Behavior Al-Habib Group of Colleges maan_fsd@yahoo.com
COURSE OUTLINE
Organization Behavior
PART 01
INTRODUCTION TO ORGANIZATION BEHAVIOR
o Key Concepts
o OB and Contemporary Issues
o Historical Background
o The Hawthorne Studies
o Defining OB
ORGANIZATION COTAXT
o Structure & Design
o Nature and Purpose of Organization
o The Classical and Modern Concept of Organization
o Span of Control
o Organizational Life Cycle Stages
o Reward System
PART 02
COGNITIVE PROCESS OF ORGANIZATION BEHAVIOR
o Perception and Attribution
o Personality & Attitude
o Motivation Needs and Processes
o Motivational Theories
PART 03
DYNAMIC OF ORGANIZATION BEHAVIOR
o Communication
o Decision Making
o Stress and Conflict
o Power and Politics
o Group and Teams
PART 04
MANAGING AND LEADING FOR HIGH PERFORMANCE
o Managing Performance through Job Design and Goal Setting
o Effective Leadership Process
o Great Leader, styles, Activities & Skill
o Leader VS Managers

ORGANIZATION BEHAVIOR
01) INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

Topics: Definition of Organization Behavior – Challenges and Opportunities for OB
DEFINITION OF ORGANIZATION BEHAVIOR

OB is a field of study that investigate the impact that individuals, group, and structure have on behavior
within organizations for the purpose of applying such knowledge toward improving an organizational
effectiveness.
Contributing Disciplines to the Field: OB is an applied behavioral science that is built upon contributes
from a number of behavioral disciplines. The predominant areas are psychology, sociology, social
psychology, anthropology, and political science.
o Psychology: Psychology is the science that seeks to measure, explain and sometime change the
behavior humans. Psychologists concern themselves with studying and attempting to understand
individual behavior.
o Sociology: Sociology is study of people in relation to their fellow human beings. Specifically,
sociologists have made their contribution to OB through their study of their group behavior in
organization, particularly formal and complex organization.
o Social Psychology: Social psychology is the combination of psychology and sociology. It focuses on
the influence of people on one another. Social psychologists making significant contribution in the
area of measuring, understanding, changing attitude, communication pattern, individual needs and
group decision making processes.
o Anthropology: Anthropology is the study of societies to learn about human beings and their
activities. Anthropologist work on culture and environment for the purpose of understand differences
in fundamental values, attitudes, and behavior among people in different countries and within
different organizations.
o Political Science: Political science is the study of behavior of individual and group within a political
environment. Political science involves specific topic of concern include structuring of conflict,
allocation of power, and how people manipulate power for individual self-interest.
CHALLENGES AND OPPORTUNITIES FOR OB

There are a lot of challenges and opportunities for managers to use OB concept. We review some of the
more critical issues confronting manager for which OB offer solutions or at-least some meaning full
insights toward solutions.
1) TQM: A philosophy of management that is driven by customer need and expectations and focuses on
continuous improvement in work process.
TQM critically emphasis on the following aspects for the purpose of continuous work performance.
o Accurate Measurement: TQM uses statistical techniques to measure every critical variable in
the organization operations. These are compared against standards and benchmarks to identify
problems, trace them to their roots, and eliminate their causes.
Benchmarking: The process of comparing an organizations practices and technologies with
others organizations.
o Intensive Focus on the Customer: The customer includes not only outsiders who buy the
organization products or services but also internal customers such as shipper and account payable
personnel who interact with and serve others in the organization.
o Concern for Continual Improvement: TQM is a commitment to never being satisfied. “Very
good” is not good enough. Quality can always be improved.
o Empowerment of Employees: Empowerment (increasing the decision making discretion of
workers) TQM involves the people in the improvement process. Teams are widely used in TQM
programs as empowerment vehicles for finding and solving problems.

o Improvement in the Quality of Everything the Organization Does: TQM uses a very broad
definition of quality. It relates not only the final product but also how the organization handle
deliveries, how rapid response to complaints and how politely the phones answered.
2) Globalization: Manager must be able to juggle international competition, overseas suppliers,

worldwide investment, global customers, WTO requirements, and a multinational workforce.
3) Empowerment: Managers are empowering employees. They are putting employees in charge of
what they do. Empowerment is changing leadership styles; power relationship, the way work is
designed, and the way work organization are structured.
Empowerment include the following things
-- Allowing employees full control of their work
-- Decision making is being pushed down to the operating level
-- Manager being called coaches, advisers, sponsors or facilitators
-- Reshaping the relationship between mangers and people concerned
4) Reengineering: A radical redesign of all or part of organization to improve productivity and financial
performance.
5) Workforce Diversity: Employees in organizations are heterogeneous in terms of age, gender, race,
religions, ethnicity, or other characteristics that reflect differences.
Workforce diversity has important implication for management practice. Managers have to shift their
philosophy from treating everyone to recognizing differences and responding to those differences in
ways that ensure employees retention and greater productivity.
For example: Diversity Focuses
1. Female Adequate working time, Security
2. Christians Respect their religion and their religious event
6) Improving People Skills: The people skills are very much important to managerial effectiveness. It
helps both managers and potential managers to develop these people skills that can used on the job.
Manager must be learn how to be
-- To delegate authority
-- An effective listener
-- To create effective team
-- Improving interpersonal skills
-- To influence the behavior of others
7) Improving Ethical Behavior: Constituents and customers are demanding that organization act
socially responsible and ethical ways. The reason are all around us:
-- Threat to our natural environment
-- Concern for human rights and need
The lack of social responsible and ethics seriously damage the repute of the organization.
Organizations are ultimately accountable for their impact on people, on the community, and on
society, and managers have a key role to play in this area.
8) Stimulation Innovation and Change: One of the day’s most pressing problems is how to stimulate
and institutionalize innovation in organizations. Now a day every organization needs new products
and new ways of doing things.
9) Improving Quality and Productivity: Managers of large an small organizations around the world
today are grapping with the issue of how to improve productivity and improving quality of the goods
an services produced by the organizations. Manger muse be continually focusing on improvement of
quality, transformation process and cutting cots. They also need to TQM and reengineering.
10) Stability and Flexibility: In pat employee were assigned to a specific work group and that
assignment was relatively permanent. There was security in working with the same people say in day

out. Today, change is an ongoing activity for most managers. The concept of continuous
improvements implies constant change.
02) ORGANIZATION DESIGN

Topics: Definition of Organization Design – Major Forms of Organization Design
DEFINITION OF ORGANIZATION DESIGN

Organization design is systematic process of developing and implementing an appropriate organization
structure.
FORMS OF ORGANIZATION DESIGN

Top management can select from a variety of organization design, depending on the organization
strategy, environment, technology, and size as well as on their own preference.
The most common forms of organization design can be classified as five categories. 01) functional
organization, 02) divisional organization, 03) conglomerate organization, 04) matrix organization and 05)
Hybrid Organization.
01) Functional Organization: An organization design based on employees function or specialized skill.
Functional Organizational Structure
Chief Executive Officer
VP Marketing VP Finance VP Operations
02) Divisional Organization: The divisional organization design in which separate but related units are
created by departmentalization such as product, customer, or geographic departmentalization.
Divisional Structure: Product Structure
Branch Manager (Bank)
Manager: Credit Cards Manager: Car Financing Managers: Mortgage
Divisional Structure: Geographic Structure

President
VP Europe VP Asia VP Middle East
Divisional Structure: Customer Structure

Director Operation (Textile)
Manager: Local Customer Managers: Foreign Customer Manager: Military Contract
Benefits of Divisional Organization

• Day-to day activities can be made quickly.
• Top level manager allocate resources according to divisional performance.
• A benefit of the divisional organization is effective coordination activities within each division.
Limitation of Divisional Organization:

• A major limitation is the expensive and inefficiency of duplicating resources for each division.
• Another limitation is the difficulty of providing adequate staff assistance to support the division.
• Segregate into different division may lose their focus on overall organization goals and its
performance.
03) Conglomerate Organization: An organization design in which the divisions are largely unrelated.
Each
self-contained division is delegated the authority to choose and serve its own customers using its own
technology to produce its own goods and services.
Example: Sitara Group of Industries
Conglomerate Organizational structure
Chairman: Sitara Groups
CEO: Sitara Spinning CEO: Sitara Chemical CEO: Sitara Real Estate
04) Matrix Organization: The combination of functional and divisional organization with two chain of
command or bosses.
Benefits of Matrix Organization:
• Matrix organization gain additional flexibility by reassigning specialists when project are completed.
• Managers maintain a pool of skilled people who can be assigned to support product or customer
projects.
• Matrix Org. helps managers and employees to develop their technical, conceptual and interpersonal
skill.
Limitation of Matrix Organization:
• A major limitation is decision making process slowed due to two bosses.
• When two managers hold equal authority, employees may feel confusion or uncomfortable.
05) Hybrid Organization: The combination of two or more organization creates hybrid organization
design.
3) ORGANIZATIONAL REWARD SYSTEM

Topics: Definition of Rewards – Classification of Rewards – Individual and Group Incentive Pay Plan
DEFINITION OF REWARDS
Rewards: Rewards may define as benefits or incentives that provide to employees for recognize or
appreciate their performance. (Rabbani)
Benefits: Rewards employees receive as a result of their employment and position with the organization
like life insurance, paid vocation, retirement pension
Incentives: Rewards offered in addition to the base wage or salary and usually related to performance
like bonuses, commissions, piece work plan, or profit sharing.
CLASSIFICATION OF REWARDS
There are several ways to classify rewards. We have selected two of the most authentic classification like
o Financial versus non-financial rewards
o Performance based versus membership based rewards
Non-Financial Versus Financial Rewards
Non-financial Rewards: Non-financial rewards emphasize making life on the job more attractive. These
include business cards, impressive title, office furnishing, preferred work hour, preferred work
assignment, and assigned parking space.
Example: Some employees are very status conscious. A plush office, a carpeted floor, a larger solid wood
desk, that stimulates employees toward top performance.
Similarly status oriented employees may value an impressive job title, their own business cards, their own
administrative assistant, or well located parking with their name clearly painted underneath the reserved
sign.

In another case, the employee may value the opportunity to dress casually while at work, or even do a
portion of one's job at home.
Financial Rewards: Financial reward cover performance based and membership base rewards. Financial
rewards enhance the employee financial position through bonuses, profit sharing, commission, retirement
plans, paid vacation, paid sick leave and purchase discount.
Performance Based Versus Membership Based Rewards

Performance-Based Rewards: Rewards offered in addition to the base wage or salary and usually
related to performance like bonuses, commissions, or piece work plan.
Membership-Based Rewards:
Rewards employees receive as a result of their employment and position with the organization like
protection program, purchase discount, paid vocation, and retirement pension.
INDIVIDUAL INCENTIVES PAY PLAN

Individual incentives plans typically base on individual performance. Popular individual plans include
merit pay, commissions, bonuses, and piecework plans.
• Merit Pay: One popular and almost universally used incentive system is merit pay. Under a merit pay
plan, employee receives increment in their salary, usually given on an annual basis. Those employees
who perform better generally receive more merit pay.
• Commission: Sales people frequently work on a commission base. They get an amount that
represents a percentage of the sales volume.
• Piecework Plan: A compensation plan whereby employees are typically paid for the number of units
they actually produce.
Differential piece rate plans establish two rates like one is as per standard and another when the
employee exceeds the standard. The later rate, of course, is higher to encourage the employee to beet
the standard. For example: Banks offer differential piece rate plan for credit card, car financing or
personal loan department.
GROUP INCENTIVES PAY PLAN

Group incentives make the most sense where employee's tasks are interdependence and thus require
cooperation. Popular group incentives include plant-wide incentives, improshare, scanlon plan, and gain
sharing.
• Plant-wide Incentives: An incentives system that rewards all members of the unit based on how well
the entire group performed. The goals of plant wide incentives is to direct the effort of all employees
toward achieving overall organizational effectiveness.
• Improshare: A special types of incentive plan using a special mathematical formula for determining
employee bonuses.
Example: If workers can save labor costs in producing a product, a predetermined portion of labor
saving will go to the employee. Where IMPROSHAREW exist, productivity gains up to 18 percent
have been identified.
• Scanlon Plan: An organization incentive program that focus on cooperation between management
and employees through sharing problem, goals, and ideas.
Under Scanlon plan, each department in the organization has a committee composed of supervisor
and employee representatives. Suggestions for cost saving improvements are deposited to the
committee, and, if accepted, cost savings and productivity gains are shared by all employees, not just
the individual who made the suggestions.
• Gain Sharing: Different companies know gain sharing by different names, such as profit sharing,
performance sharing or productivity incentives. These programs refer to incentives plans that involve
employees in a common effort to improve organizational performance and then reward employees
immediately when their performance improves. Gain sharing is based on the concept that employees
and the company share the resulting incremental economic gain.
4) PERSONALITY AND ATTITUDE

Topics: Definition of Personality – The Big Five Personality Trait – Myer-Briggs type indicator (MBTI) –
Definition of Attitude – Components of Attitude – Function of Attitude – Changing Attitude – Definition of
Personality Influences of Job Satisfaction
DEFINITION OF PERSONALITY
*Personality can be defined as the sum total of ways in which an individual reacts and interacts with
others.
*Personality can be defined as those inner psychological characteristics that both determine and reflect
how a person responds to his or her environment.
The emphasis in this definition is on inner characteristics—those specific qualities, attitudes, traits and
factors that distinguish one individual from other individuals.
THE BIG FIVE PERSONALITY TRAIT

The big five model classify into five major personality traits: 1) extraversion, 2) agreeableness,
3) conscientiousness, 4) emotional stability, and 5) openness to experience.
THE BIG FIVE MODEL

CORE TRAIT DESCRIPTIVE CHARACTERISTICS
A personality dimension describing someone who is sociable, assertive,

1) Extraversion
outgoing, talkative, gregarious, and friendly.
A personality dimension describing someone who is warm, caring, courteous,

2) Agreeableness
trusting, cooperative, and good-natured.
A personality dimension describing someone who is dependable, hardworking,

3) Conscientiousness
organized, self-disciplined, and responsible.
A personality dimension describing someone who is calm, secure, happy, and

4) Emotional Stability
unworried.
A personality dimension describing someone who is intellectual, creative,

5) Openness to Experience
artistic, sensitive, flexible, and imaginative.
MYER-BRIGGS TYPE INDICATOR (MBTI)

A personality test that taps four characteristics and classifies people into one of 16 personality types.
SIXTEEN PRIMARY TRAITS
1 Reserved VS Outgoing
2 Less intelligent VS More Intelligent
3 Affected by feeling VS Emotional stable
4 Submissive VS Dominant
5 Serious VS Happy-go-lucky
6 Expedient VS Conscientious
7 Timid (shy) VS Venturesome (daring)
8 Taught minded VS Sensitive
9 Trusting VS Suspicious
10 Particle VS Imaginative
11 Forthright VS Shrewd
12 Self-assured VS Apprehensive (nerves)
13 Conservative VS Experimenting
14 Group depended VS Self-sufficient
15 Uncontrolled Vs Controlled
16 Relaxed VS Tense
DEFINITION OF ATTITUDE
Attitude may define as evaluating statement or judgment concerning objects, people, or events.
A person consistently favorable or unfavorable evaluations, feelings and tendencies toward an object or
idea. People have attitude regarding religion, politics, clothes, food, and almost everything else. Attitudes
show the people feelings of liking or disliking towards or away from them.
COMPONENTS OF ATTITUDE
Attitude can be classified into three basic components: emotional, informational and behavioral
• Emotional: The emotional components involves the person feelings or effect—positive neutral, or
negative about an object.
• Informational: The informational components of an attitude consists of the belief and information
that individual has about the object. For instance, a supervisor may believe that two weeks of training
is necessary before a worker a worker can effectively conduct a particular process. In reality, the
average worker may be able to perform successfully after only four day of training. Yet the
information the supervisor is using (that two week is necessary) is the key to his attitude about
training.
• Behavioral: The behavior component of an attitude consists of person tendencies to behave in a
particular way toward an object. For example, the supervisor in the proceeding paragraph may assign
two weeks of training to all new people.
It is important to remember that of the three component of attitude; only the behavioral component can be
directly observed. One can’t see another person feelings (the emotional components) or belief (the
informational component). These two components can only be inferred.
FUNCTION OF ATTITUDE
Attitude can be classified into four important functions: the adjustment function, the knowledge function,
the ego-defensive function, and the value-expressive function.
• The Adjustment Function: Attitude often helps people adjust to their work environment. When
employees are well treated, they are likely to develop a positive attitude toward management and the
organization. When employees are berated and given minimum salary increases, they are likely to
develop a negative attitude toward management and the organization. These attitudes help employee
adjust to their environment and are a basis for future behavior.
• The Knowledge Function: Attitude helps supply standards and frames of reference that allow people
to organize and explain the world around them. For example, a union organizer may have a negative
attitude toward management. This attitude may not be based on fact, but it does help the individual
relate to management. As result, everything that manager say is regarded by the union organizer as
nothing more than a pack of lie, deliberate distortion of the truth or an attempt to manipulate the
workers.
• The Ego-defensive Function: The Ego-defensive attitudes define the people self-images. Most
people want to protest their self-image from inner feeling of doubt. They want to replace their
uncertainty with a sense of security and personal confidence.
• For example, an older manager whose decisions are continually challenged by a younger subordinate
manager may feel that the latter is immature, and inexperienced. The older manager may not be very
effective leader and may constantly make poor decision. On the other hand, the older manager is not
going to admit this but will try to protect the ego by putting the blame on the other party
• The Value-expressive Function: Attitude provide basis for expressing their values to people. For
example, a manager who believes strongly in the work ethics will tend to voice attitude toward
specific individuals or work practices.
CHANGING ATTITUDE
Some of the following approached that may change the attitude of employees toward management and the
organization. It includes the1) uses of fear, 2) providing new information, 3) resolving discrepancies,
4) influences of friends or peer and 5) the co-opting approach.

• Use of Fear: An important way of changing attitudes is through the use of fear. Some researchers
have found that fear can cause some people to change their attitude.
For example: A manager strictly recommended to coming in time at office to all employees.
Employees may come on job at the right time due to fear of boss instruction.
• Providing New Information: Sometime new information will change a person belief and attitude.
For example, information about handsome increment on employee salary may develop a positive
attitude toward management and the organization. Information about minimum salary increases, are
likely to develop a negative attitude toward management and the organization.
• Resolving Discrepancies: another way in which attitude can be changed is by resolving

discrepancies between attitude and behavior.
• Influence of Friends or Peers: An important way of changing attitudes is through persuasion by

friends or peers.
• The Co-opting Approach: A final way in which attitude change often take place is by co-opting,
which means talking people who are dissatisfied with a situation and getting them involved in
improving things.
DEFINITION OF JOB SATISFACTION

Job satisfaction is a result of employee’s perception of how well their job provides those things that are
viewed as important.
INFLUENCES ON JOB SATISFACTION
There are number of factors that influence job satisfaction. However, the main influences can be
summarized as six dimensions: 1) pay, 2) supervision, 3) coworkers, 4) the work itself, working
condition, and 5) promotional opportunities.
• Pay: Pay is significantly important source of job satisfaction. If an organization adequately paid the
employees, then employee fell comfortable to do job otherwise they will be switch off when ever they
got any attractive opportunity.
• Supervision: The nature of supervision is another important source of job satisfaction.
• Coworkers: The nature work-group or team is important source of job satisfaction. Of coworkers
will have an affect on job satisfaction? Friendly, cooperative coworkers are modest source of job
satisfaction.
• The work itself: The content of work itself is a major source of job satisfaction. If the job duties and
responsibilities are design according to the employee qualification, experience and interest, the
personnel will find it easier to carry out heir job. If the job duties and responsibilities are not
adequately design, then employee will find it more difficult to get thing done.
• Working Condition: Working condition have a modest affect on job satisfaction. If the working
condition are good (clean, attractive surroundings) the personnel will find it easier to carry out heir
job. If the working conditions are poor (hot, noisy surrounding) personnel will find it more difficult to
get thing done. In simple, things are good, there may not be a job satisfaction problem; if things are
poor, there very likely will be.
• Promotional Opportunities: The chances of advancement or promotional opportunities have a
varying effect on job satisfaction. This is because promotions take a number of different forms and
have a verity of accompanying rewards.
*For example: Individual who are promoted on the basis of seniority often experience job satisfaction
but not as much those who are promoted on the basis of performance.
5) MOTIVATIONAL NEEDS AND PROCESSES

Topics: The Meaning of Motivation – Types of Motives – Maslow Need theory of Motivation – McGregor X and Y
Theory – Two Factor or Hertzberg Hygiene Theory
THE MEANING OF MOTIVATION

Motivation is the force that moves people to initiate, direct and sustain behavior and action.

TYPES OF MOTIVES
Human motives generally classify into three major categories: 1) Primary Motives 2) General Motives
and 3) Secondary Motives
1) Primary Motives: Primary motives often known as physiological, biological or unlearned motives.
The most commonly recognized primary motive includes food, shelter, clothing hunger, thirst, air, sleep,
and avoidance of pain.
2) General Motives: General motives normally classify into two major categories: 1) the affection
motives, and 2) The curiosity, Manipulation and activity motives.
The Affection Motives: The affection motives include the need for love, affection, acceptance and sense
of belonging. On the job, people try to fulfill such needs by building relationship with
others.
3) Secondary Motives: Secondary motives generally classify into five major categories: 1) need for
status, 2) need for power, 3) need for security, 4) need for affiliation, and 5) need for achievement.
EXAMPLES OF KEY SECONDARY MOTIVES
Types of Secondary Motives Details/Description
• Having executive privileges

• Living in the finest neighborhood
1) Need for Status • Having the degree from the reputed university
• Working for the reputed company in the leading job
• Having the luxuries car and wearing the branded clothes
• Controlling people and activities
• Defeating an opponent or enemy
2) Need for Power • Being in a position of authority over other
• Gaining control over information and resources
• Influence people to change their attitude and behavior
• Having a secure job
• Having protection against illness and disability
3) Need for Security • Avoiding task or decisions that cause of risk or blame
• Being protected against loss of income or economic disaster
• Being protested against physical harm and hazardous conditions
• Being liked by many people

• Participating in pleasant social activities
4) Need for Affiliation • Being accepted as part of a group or team
• Working with people who are friendly and cooperative
• Maintaining harmonious relationship and avoiding conflict
• Attaining a difficult goals

• Solving a complex problem
5) Need for Achievement • Doing better than competitors
• Developing a better way to do something
• Carrying out a challenging assignment successfully
MASLOW'S NEED THEORY OF MOTIVATION

Maslow identified five levels in his need theory of motivation like physiological needs, safety needs,
social needs, esteem needs, and self-actualization needs. They are in brief, the following

Self-actualization Need
Esteem Need
Social Need
Safety Need
Physiological Need
MASLOW'S NEED THEORY OF MOTIVATION

1) Physiological Needs are related basic human survival such as food, clothing and shelter.
In the workplace, physiological needs are related such as adequate pay, break to rest and eat, and
protection from harsh weather condition.
2) Safety Need related to a safe and secures life that is free from harm.
In an organization, these needs are expressed as safe working condition, job security, medical insurance,
and retirement plans.
3) Social Need: The need for love, affection, acceptance and sense of belonging.
On the job, people try to fulfill such needs by building relationship with others.
4) Esteem Needs are related self-respect and personal recognition.
In an organization these need are related such as commendation, awards, promotion, and other tokens of
recognition.
5) Self-actualization need include the need to realize ones full potential and to future develop personal
capabilities. Self-actualization needs can't be completely satisfied.
On the job, people strive to fulfill self actualization needs by participating in training programs and by
tackling demanding task.
HERTZBERG'S TWO FACTOR THEORY
The motivation hygiene theory was proposed by psychologist Frederick Hertzberg in 1950.
Hertzberg investigated the question "what do people want from their job" He asked people to describe in
detail situation in which they felt exceptionally good or bad about their job.
Hertzberg develop hygiene theory on the bases of investigated the question "what do people want from
their job" Hygiene theory concentrates on two factors: hygiene factors and motivators.
Hygiene Factors relate to lower level need and eliminate job dissatisfaction
Motivators appeal to higher level need and increase job satisfaction
Hygiene Factors Motivators

o Salary
o Security
• Work itself
o Supervision
• Recognition
o Personal Life • Achievement
o Company Policy • Responsibility
o Working condition • Advancement
o Relationship with Peers • Personal Growth
o Relationship with supervisor
o Relationship with Subordinates
MCGREGOR THEORY X AND Y

Douglas McGregor is best known for his formulation of two set of assumption about human nature.
Theory X: The assumption that employee inherently dislike work, are lazy, seek to avoid responsibility
and must be coerced to perform
Theory Y: The assumption that employees are creative, seek responsibility and can exercise self direction
Theory x Theory Y
Employees inherently dislike work and will attempt to avoid it Employees don’t dislike work by nature
Employees must be coerced, controlled and threatened with

Employees are creative and interested in meaningful work
punishment to achieve desired goals.
Employees have little ambition and dislike responsibility Employees are willing to seek and accept responsibilities
Employees naturally resist change Provide opportunities & freedom to get better results
McGregor believed that under the right circumstances, employees would willingly contribute their
talents for the benefit of the organization. He suggested that managers motivate employees by giving
them the opportunities to develop their talent and by giving them freedom to choose the method they
would use to achieve organizational goals.
CONTEMPORARY THEORIES OF MOTIVATION

THREE NEED THEORY
David McClelland proposed the three needs theory. The needs for achievement, power and affiliation are
major motives in work.
• Needs for Achievement: The desire to reach goals, to tackle challenges, and to excel (do extremely
well). These peoples are generally competitive, set moderately difficult goal and actively seek
feedback about their performance.
• Need for Power: The desire to influences or to control others.
• Need for Affiliation: The desire for friendly and close interpersonal relationships. Such people are
likely to seek jobs where they can work with others and can build strong interpersonal relationships.
7) DECISION MAKING
Topic: Definition of Decision and Decision making – Types of Decision –Rational Decision Making Process
Group Decision Making
DEFINITION OF DECISION MAKING

Decision: A choice made from available alternatives.
Decision Making Defined: The process of identifying problems and opportunities and resolving them.
Problem: A condition in which the existing situations differ from the desired situation.
TYPES OF DECISIONS
In general, decisions can be classified as either programmed or non-programmed decision.
o Programmed Decision: A decision made in a situation where predetermined (previous) decision
rules can be applied because the situation occurs frequently or well defined.
o Non-programmed Decisions: A decision made in a situation where predetermined decision rules
can’t be applied because the situation occurs infrequently or unique.
THE RATIONAL DECISION MAKING PROCESS

The rational decision making process consists of six steps
1) Identify the Problem: The first step in the managerial decision making process is to identify the
problem. Manager must be aware of a problem and analyze its scope & nature before they can take
any step to solve it.
2) Generate Alternatives: After the problem has been identified manager try to develop a many
possible alternatives as they can. Some alternatives may come from past experience or may be
generated by creative techniques such as brainstorming.
3) Evaluate Alternatives: The third step is evaluating the alternatives by considering the implication
and consequences of each alternative. In this step, managers assess the attractiveness in order to
feasibility, credibility and cost of the alternatives. Of course, if a solution cannot be effectively
implemented, then it’s not a realistic alternative.
4) Make the Decision: After evaluating the alternatives, managers make the decision. They select the
best alternatives by weighing the risk and benefits of each one.
5) Implement the Decision: After they select the best alternatives, managers implement the decision.
Because decision making managers depend on others to carry out decision, they must carefully
consider how implementation will affect these people and their function.
6) Evaluate the Result and Provide Feedback: The final step is to evaluate the result and provide
feedback about the decision and its implementation. This allows managers to see whether the result
meet expectation or make any changes to improve the decision.
GROUP DECISION MAKING

Three of the most common formats are Interacting Group, Nominal Group, and Delphi Groups.
o Interacting Group: A decision making group in which people meet personally to solve the problem.
Interactive groups generally start with a statement of the problem and include a discussion of the
problem and its cause. Group member collectively generate and evaluate alternatives and finally
come to a decision.
o Nominal Group: A nominal group decision making emphasizing individual thinking and group
participation. To start, the group leader presents the problem and then asks the group members to
silently & independently write down their ideas. Next the group discuss each idea and ranking the
ideas in order to priority.
o Delphi Groups: A consulting group of experts who respond to circulated questionnaire and offer
ideas about a problem until a consensus has been reached.
A Delphi group is composed of experts who respond to written questionnaires about problems.
The expert answers are summarized and reported back to the group and new answer are requested
until consensus has been reached. Delphi group don’t meet face-to-face but instead pool their
ideas by mail, eliminating some of the problems that can plague interacting groups.
*Recently I get aware through newspaper, TDCP sent questionnaire to different experts
(Mustansar Hussain Tarid) for obtaining their suggestion regarding tourism development in
Pakistan.
6) STRESS & CONFLICT
Topics: What is Stress – Definition of Stress – The Causes of Stress – Definition of Conflict – Level of Conflict
The Effects of Stress and Conflict – Coping Strategies for Stress and Conflict
WHAT IS STRESS
Stress is usually thought of in negative terms. It is thought to be caused by something bad. For example, a
loved one is seriously ill or the boss gives a formal reprimand for poor performance. This is form of
distress. But there is also a positive, pleasant side of stress caused by good things. For example an
employees is offered a job promotion at another location of city, a person got admission in US well know
university.
This is a form of eustress.
DEFINITION OF STRESS
Stress can be viewed as” an adaptive response, mediated by individual differences and psychological
process that is a consequence of any external environment, situation, or event that places excessive
psychological and physical demand on a person”
THE CAUSES OF STRESS
There are four major causes of stress like extra-organization stress, organizational stress, group stress, and
individual stress. These causes come from both outside and inside the organization, from the group that
employee are influenced by and from employees themselves.
CAUSES OF STRESS
Extra-organizational Stress Organizational Stress Group Stress Individual Stress

-- Natural Forces -- Working Condition -- Lack of Social Support -- Personality
-- Political Uncertainty -- Administrative Policies -- Lack of Group Affiliation -- Family Problem

-- Economic Uncertainty -- Organizational Structure -- Economic Problem
-- Technological Uncertainty -- Organizational Processes

1) Extra-organization Stress: Extra-organizational stress also known as environmental stress. Most

analysis of job stress ignores the importance of outside forces. Out side forces have a tremendous impact
on the organization performance to serve the customers.
It is clear that job stress is not limited just to things that happen inside the organization, during working
hours. In fact, a recent research study found that stress outside the work place was related to negative
affect and feelings on the job. Extra-organizational stress includes things such as natural force, political
forces, economic uncertainty, and technological uncertainty.
o Natural Forces: The natural environment involves the natural resources that needed as input to the
organization. Natural environment may affect the availability of raw material that use in production.
Unavailability of raw material due to natural environment can affect the performance of the
organization and cause of stress.
o Political Uncertainty: Adverse governmental and legal policies, and uncertain political
stability that influence the individual performance and cause of stress.
o Economic Uncertainty: Interest rate, inflation rate, stock market index are some of the
economic forces that affect individual practices in an organization and cause of stress.
o Technological Uncertainty: Technological forces include the experience, procedure, and system
used by organization to make profound changes in goods or services. Technological advancement can
dramatically affect organization products, services, markets, customers, manufacturing process,
marketing practices and competitive positions. So technological innovations are a threat to many
people and cause them stress.
2) Organizational Stress: Organization stress can be categorized into macro level dimensions like
administrative policies, organizational structure, organizational processes and working condition. Some
specific examples of these organization stresses include responsibility without authority, no prominent
response to complaints, inadequate recognition, lack of clear reporting relationship, and lack of clear job
description.
MACRO-LEVEL ORGANIZATIONAL STRESS
Types of Stress Details/Description
-- Downsizing -- Bureaucratic Rules

Administrative Policies -- Advance Technology -- Rotating Work Shifts
-- Centralization -- Untrusting Culture
Organizational Structure -- Line-staff Conflict -- Role Ambiguity and Conflict
-- Restrictive Work Environment -- No Opportunity for Advancement
-- Tight Control -- Centralized Decision Making
Organizational Processes -- Only downward Communication -- Lack of Participation in Decisions
-- Polluted Air -- Poor Lighting
Working Condition -- Crowded Work Area -- Physical or Mental Strain
-- Unsafe, Dangerous Work Condition -- Noise, Heat, or Cold Environment
l
3) Group Stress: Group stress can be categorized into two areas: lack of social support and lack of group
affiliation
o Lack of Social Support: employees are greatly affected by the support of one or more members of a
group. By sharing their problem and joys with others, they fell much better. If this type of social
support is lacking for an individual, the situation can be stressful.
o Lack of Group Affiliation: Lack of group affiliation and coordination often create a stressful
environment among employees.

4) Individual Stress: Individual stress can be categorized into three areas: personality, personal problem
and economic problem.
Personality:
o Personal Problem: Personal problems includes the following
Marital difficulties
Carriers of children
The breaking off a relationship
Some disciplinary troubles with children
Finding a best life partner for their children
Conflict among families, relatives or even neighbors
These are some examples of personal problems that create stress for employees and distract their attention
from their work.
o Economic Problem: Economic problems created by individual overextending their financial
resources that can create stress for employees and distract their attention from their work.
DEFINITION OF CONFLICT
Conflict can be defined as “disagreement between two or more parties on one or more issues”
LEVEL OF CONFLICT
There are four major level of conflict in organizational behavior like intra-individual conflict, inter-
personal conflict, intergroup conflict and organizational conflict.
LEVEL OF CONFLICT
Intra-individual Conflict Inter-personal Conflict Intergroup Conflict Organization Conflict
- Goal Conflict - Role Incompatibility - Status Struggles -- Compensation

- Conflict due to Frustration - Personal Differences - Task Interdependence -- Health & Safety
- Role Conflict & Ambiguity - Environmental Stress - Competition 4 Resources -- Adverse Org. Policies
- Information Deficiency
1) Intra-individual Conflict: There are three major source of intra-individual conflict. These can be
summarized as follows:
o Goal Conflict: A common source of conflict for an individual is a goal that has both positive and
negative features.
o Conflict due to Frustration:
o Role Conflict & Ambiguity: there are three major role types of role conflict. One type is the conflict
between the person and the role.
2) Inter-personal Conflict: Those who have interpersonal conflict most often attribute the cause to a
personality problem or defect in the other party. There are four major source of interpersonal conflict.
These can be summarized as follows:
o Role Incompatibility:
o Personal Differences: Everyone has unique background because of his or her social, cultural or
demographic values, family traditions, and educational differences. These personal differences can be
a major source of conflict.
o Environmental Stress: These types of conflict can amplify by the stressful environment.
Environmental stress includes things such as political uncertainty, economic uncertainty, and
technological uncertainty.
o Information Deficiency: This source of conflict results from communication breakdown in the
organization. It may be that the two people in conflict are using different information or that one or
both have misinformation.
3) Intergroup Conflict: There are three major source of intergroup conflict. These can be summarized as
follows:
o Status Struggles
o Task Interdependence
o Competition for Resources
4) Organizational Conflict: There are three major source of organizational conflict. These can be
summarized as follows:
o Compensation
o Health & Safety
o Adverse Org. Policies
THE EFFECTS OF STRESS AND CONFLICT

Stress and conflict are not automatically bad for individual employees or their organizational
performance. In fact, it is generally recognized that low levels of stress and conflict can even enhance job
performance. The problems due to high levels of stress and conflict can be views as physical,
psychological and behavioral problems.
Physical Problems Due to Stress and Conflict: Specific physical health concerns that have been linked
to stress include the following:
-- Immune System Problems: where there is a lessened ability to fight off illness and infection
-- Cardiovascular System Problems: high blood pressure – hart disease
-- Musculoskeletal System Problems: tension
These figures are just estimate. However, there seems to be enough evidence that stress can to this
dreaded disease and to other physical problems as well.
Psychological Problems Due to Stress and Conflict: Psychological problems due to stress and conflict
include anger, anxiety, depression, nervousness, irritability, tension, and boredom. One study found that
stress had the strongest impact on aggressive actions, such as sabotage, interpersonal aggression, hostility,
and complaints. These types of psychological problem from stress are especially relevant to poor job
performance, lowered self-esteem, resentment (anger) of supervision, inability to concentrate and make
decision, and job dissatisfaction.
Behavioral Problems Due to Stress and Conflict: Behaviors problems due to stress and conflict include
under-eating or over-eating, sleeplessness, increased smoking and drinking and drug abuse.
COPING STRATEGIES FOR STRESS AND CONFLICT

Individual Coping Strategies: Some specific techniques that individuals can use to eliminate or more
effectively manage stress are the following:
• Exercise: Today it is not whether you win or lose, but whether you get some good exercise that
counts. People of all ages are walking, jogging, swimming, riding bicycles or playing football, tennis
in order to get some exercise to combat stress.
• Relaxation: Whether a person takes it easy once in a while or uses specific techniques such as
meditation, the intents is to eliminate the immediately stressful situation or manage stressful situation
more effectively. Taking it easy mean reading a good book or watching something light (not a violent
program or sports program) on television.
Meditation involves muscle and mental relaxation; the person slowly repeats a peaceful phrase or
word or concentrate on mental picture in a quiet location. There is some research evidence that such
mediation can have a desirable physical and mental impact on people.
• Networking: Networking is the useful strategy to reduce job stress; this would entail forming close
association with trusted coworker and colleagues who are good listeners and confidence builders.
These friends are there when needed and provide support to eliminate stressful situations.
• Behavioral self-control: Behavioral self-control strategy involves individuals controlling the
situation instead of letting the situation control them

Organizational Coping Strategies: Organizational coping strategies are designed by management to

eliminate or control organizational level stress in order to prevent or reduce job stress for individual
employees. The organization stress was categorized in terms of over all organizational policies,
organizational structure and design, organizational processes and organizational working condition. Job
stress can be to reduce or control by making an adequate organizational policies, organizational structure
and design, organizational processes and organizational working condition.
CONFLICT MANAGEMENT TECHNIQUES

Conflict is unavoidable in organization, so it is important that conflict be managed and resolved before
affect organization performance.
Various techniques for managing and resolving conflict can be classified into eight categories: 1)
avoidance, 2) smoothing, 3) compromise, 4) problem solving, 5) expansions of resources, 6) authoritative
command, 7) altering the human variables, and 8) altering the structural variables.
o Avoidance includes such action as ignoring the problem in hopes that the conflict will resolve itself.
o Smoothing can include playing down differences between conflicting parties while emphasizing
similarities and common interest, compromising so that there is neither a clear winner nor loser.
o Compromise: Each party to the conflict give up something of value
o Problem Solving: Face-to-face meeting of the conflicting parties for the purpose of identifying the
problem and resolving it through open discussion.
o Expansions of Resources: When a conflict is caused be the scarcity of a resource such as money,
promotion opportunities, or office space---expansion of the resource can create a win-win solution.
o Authoritative Command: management uses its formal authority to resolve the conflict and then
communities its desires to the parties involved.
o Altering the Human Variables: Using behavioral change techniques such as human relations
training to alter attitudes and behavior that cause conflict.
o Altering its Structural Variables: Changing the formal organization structure and the interaction
patterns of conflicting parties through job redesign, transfer, and creating of coordinating positions.
7) POWER AND POLITICS

Topics: Definition of Power – Classification of Power
DEFINITION OF POWER
*Power is the specific capacity to affect the decisions, attitude and behavior of others.
*Power refers to a capacity that A has to influence the behavior of B, so that B acts in accordance with A
wishes.
CLASSIFICATION OF POWER
According to John French and Bertram Raven power can be classified into five categories: 1) Legitimate
power, 2) reward power, 3) coercive power, 4) expert power and 5) referent power.
• Legitimate Power: This source of power is based on person’s specific positions in an organization. It
represents the power a person receives as a result of his or her position in the formal hierarchy of an
organization.
• Reward Power: This source of power is based on person’s ability to control resources and reward
others. Reward power is the ability to provide value rewards to others such as pay rises, bonuses,
promotions, and recognition.
• Coercive Power: This source of power is based on fear. Coercive power is the ability to penalize
others due to any disciplinary violation or consistently poor performance. Coercive power is also the
ability to take reward away or reduce their value. A manager of the organization can also directly or
indirectly threaten an employee with these punishing consequences.
• Expert Power: This source of power is based on person’s skills, knowledge, and experience.
Expertise has become one of the most powerful sources of influence as the world has become more
technologically oriented. As jobs become more specialized, we become increasingly depend on expert
to achieve goals. Doctors, Physician, Engineers, Computer Specialists, Charter Accountant,
Economists, Industrial Psychologist and other specialists are able to wield (use) power as result of
their expertise.
• Referent Power: This source of power is based on person’s ability to inspire, respect, admiration,
and loyalty. Referent power explains why celebrities are paid million of rupees to endorse product in
commercials. Advertisers take advantage of this type of power when they use celebrities, such as film
star or sports star for the advertisement of their product or service. Marketing researcher shows that
people like Shahid Adfrid and Wasim Akram and they have a power to influence audience choice
toward specific products or services.
8) GROUP AND TEAMS

Topics: The Definition of Group – Types of Groups – Stages of Group Formation – The Definition of Team –
Categories of Teams Difference between Groups and Teams – Characteristics of Effective Team
THE DEFINITION OF GROUP

A group is defined as Two or more individual, interacting and interdependent, who have come together to
achieve particular objectives.
TYPES OF GROUPS
There are numerous types of group. There are small and large groups, in and out groups, formal and
informal group, primary and secondary groups, command and task group, and membership base and
reference group. Each type has different characteristics and different effect on its members.
• Small and Large Groups: Small group has to meet only the criterion of small size while large
group contain the pool of large number of people.
• In-groups and Out-groups: In-groups are those who have or share the dominant value and beliefs
while out-groups are those on the outside looking in.
• Formal and Informal Groups: Formal groups normally designated in the modern organization. It
is composed of the individuals who defined by the organization structure with designated work
assignments. Formal groups normally include the public affairs committee, grievance committee,
executive committee, and even the board of directors. Informal groups are natural formation in the
work environment that appears in response to the need for social contact. Informal group normally
include the political, friendship or common interest group.
• Primary and Secondary Groups: Primary groups normally include the family and the peer group
• Command and Task Group: Command group is determined by the organization chart. It is
composed of the individuals who report directly to a given manager. Task group are composed of the
individual who work together to complete a job task or duties.
• Membership Base and Reference Groups: Membership groups are those to which the individual
actually belongs. Reference group are those to which an individual would like to belong.
STAGES OF GROUP FORMATION

Group formation can be classified into five categories: 1) forming, 2) storming, 3) norming, 4)
performing, and 5) adjourning
1) Forming: The initial stage of group formation in which the members get familiar with each other.
This stage is marked by uncertainty and even confusion. In this stage, group member are not sure
about the purpose, structure, tasks, or leadership of the group. This stage is completed once member
begin to think of themselves as part of a group.
2) Storming: This stage is marked by a high degree of internal conflict. Members accept that they are
part of group but resist the constraints that the group put on their individuality. There is conflict over
who will control the group and how decisions will made. As these conflicts are solved, the project
manger leadership becomes accepted, and the group moves to the next stage.
3) Norming: The third stage is one in which close relationship develop and group exchange the relevant
work information with each other. During this stage, the group will need considerable amount of
guidance and administrative support, as well as support in dealing with the human issues of conflict,
power and policies, credibility, trust, respect and the whole spectrum of professional career and
development. The norming phase is complete when the groups establish a common set of expectation
about how member should work together.
4) Performing: This is the stage where the groups are fully functioning and devoted to affectively
accomplish the desire goal.
5) Adjourning: Once the objective is accomplished, the group will disband (disperse, break up) or have
a new composition and the stages will start over again.
WHY PEOPLE JOIN GROUP

There is no single reason why individual join group because most people belong to a number of groups.
It’s obvious that different group provide different benefits to their members. Some of the following most
popular reason people have for joining group:
o Status: Group can provide recognition and status for its members.
o Power: What cannot be achieved individually often become possible through group action? There is
power in numbers.
o Security: By joining a group, individual can reduce the insecurity of standing alone. People feel
strong and are more resistant to threat when they are part of a group.
o Affiliation: Group can fulfill social need. People enjoy the interaction that comes with group
members.
o Self-esteem: Group can provide people with feelings of self-worth.
o Goal achievement: Goal for any specific task can be accomplished due to the coordination and
cooperation of group members. In such instances, management will rely on the use of a formal group.
THE DEFINITION OF TEAM

Team can be defined as process of taking a collection of individual with different needs, background and
expertise and transforming them into an integrated and effective work unit.
CATEGORIES OF TEAMS
There are following categories of the team
CATEGORIES OF TEAM
Purpose Membership Structure Duration
-- Product Development -- Virtual Teams -- Supervised Teams -- Permanent Teams
-- Problem Solving -- Functional Teams -- Self-managed Teams -- Temporary Teams

-
-- Reengineering - Cross-Functional Teams
Virtual Teams: Virtual team use computer technology to ties together physically dispersed members in
order to achieve a common goal. They allow to people on line – using communication links such as wide
area networks, video conferencing or e-mail.
Functional team: A type of work team that is composed of a manager and his subordinates from a
particular functional area.
Cross Functional Team: A types of team in which individual who are expert in various specialties work
together on various organizational tasks.
Example: System selling – Eden Valas, Beharia town
Self-desired or self-managed Team: A type of team that operates without a manager and is responsible
for a complete work process that deliver product or services to an external or internal customers.

Self Managed Teams: A self managed work team can be defined as “a group of employee who are
responsible for managing and performing technical tasks that result in a product or eservice being
delivered to internal or external customer. Self managed teams are empowered to hire, organize, and
purchase equipment with out direct approval of management.
DIFFERENCE BETWEEN GROUPS AND TEAMS

Although the term team is frequently used for any group, especially to get individuals to work together
and to motivate them, some team experts make a distinction between teams and traditional work group.
Some of the following difference between group and team are given below:
GROUP VS TEAM
GROUP TEAM
The work group purpose is the same as the org. The team has a specific purpose
The work group has strongly focused on leader The team has shared leadership roles
Group usually focus on autocratic styles Team usually focus on democratic styles
The work group discuss, decides and delegates The team discuss, decides and does real work
The work group has individual work task The team has a collective work task or activities
The work group has individual accountability The team has individual and mutual accountability
CHARACTERISTICS OF HIGH PERFORMING TEAMS

High performing team become champion, exceed customer expectations, and get task done according to
cost, schedule and technical performance standards. They trust each other and exhibit a high level of
collaboration.
Some of the following characteristics of high performing team are given below:
Committed
Quality
Enjoy Work
Oriented
Effective
High need Characteristics Communication
High Morale
Self-directed
Mutual Trust
CHARACTERISTICS OF HIGH PERFORMING TEAMS
1) Committed: The major characteristics of the high performing team are the commitment toward
organization goals. Members of an effective team exhibit intense loyalty and dedication to the team. They
are willing to do anything that has to be done to help their team succeed.

2) Mutual Trust: Effective teams are characterized by high mutual trust among members. Member of
the team believe in integrity, character and ability of one another.
3) Quality Oriented: Members set high personal standard of performance and encourage each other to
realize the objective of the project.
4) Effective Communications: Effective teams are characterized by good and effective communication.
Members of the team are able to convey message between each other in a form that is readily and clearly
understood. This include nonverbal as well a spoken message. Good communication is also characterized
by a healthy dose of feedback from team members and managers. Feed back help to guide team members
and to correct misunderstanding.
5) High Morale & Team Spirit: The team identifies individual talents and expertise and uses them
depending on the project need at any given time.
9) MANAGING PERFORMANCE THROUGH JOB DESIGN

Topics: Definition of Job Design – Various Approaches to Job Design
DEFINITION OF JOB DESIGN

Job design may be defined as the methods that management uses to develop the content of job, including
all relevant tasks, as well as the processes by which job are constructed and revised.
*Job design is the systematic process of structuring work and designating the specific work activities of
an individual or groups to achieve certain organizational objectives.
VARIOUS APPROACHES TO JOB DESIGN

The goal of job design is to develop work assignments that meet the requirements of the organizations
and the technology and satisfy the personal requirements of the jobholders. Job design is an increasingly
important application technique in the study of organization behavior, especially in light of various recent
trends. Most important, the nature of work is changing because of the advance information technology
such as internet, intranet, and e-business or e-commerce
Some various approach to job design include the following: Job rotation, job engineering, job enrichment,
job enlargement, job characteristics, Social information processing QWL, and HPWPs
1) Job Rotation: Job rotation also known as cross training. Job Rotation involves moving employees to
various positions in the organization for a specific time period in an effort to expand their skill,
knowledge, and abilities. Job rotation represents an excellent method for broadening an individual
exposure to company operations and increasing the individual information, abilities and experience.
Job Rotation: This simplest from of job redesign involves moving employees from one relatively
simple
job to another after short time periods (one hour, half day, every day).
Foe example, at McDonalds, an employee may cook French fries one day, make burgers the next day,
take order on the front counter from the customers and draw soft drinks the next. This form of job
rotation has several advantages.
-- First, employees learn sets of tasks.
-- Second, employees are getting more knowledge, abilities and skills.
-- Third, employees are more flexible and able to cover for someone who is absent or who quits.
Some recent research showing that job Rotation has positive impact on employees especially for cross
training and developing employees for broadened responsibilities.
2) Job Engineering: Job engineering includes scientific management, and industrial engineering
approach.
3) Job Enrichment: The vertical expansion of job by adding planning and evaluating responsibilities.
Job enrichment is concerned with designing job that include a greater variety of work content; require
a higher level of knowledge and skill; give workers more autonomy and responsibility in term of
planning, directing, and controlling their own performance and provide opportunity for personal
growth and meaningful work experience.
Job enrichment can improve the quality of work, employee motivation, and satisfaction toward
achieving organization goals.
4) Job Enlargement: The horizontal expansion of job that involves increasing the number of tasks each
employee performs. Worker in enlarge jobs are able to use more skills in performing their task.
However, enlargement does not necessarily result in improved employees satisfactions and
commitment. Many times, enlargement reduces the efficiency of the employees due to overwork.
5) Job Characteristics: Job characteristics concerned with building skill variety, task identify, task
significance, autonomy, and feedback into the job.
6) Social Information Processing: A complex theoretical model suggesting the importance of social
information or cues affecting jobholders.
7) Quality of Work Life (QWL): QWL may be defines as concern about the impact of work on people
and organization effectiveness combined with an emphasis on participation in problem solving and
decision making.
The leading purpose of QWL program is to change and improve the work climate and the
organization gets a more favorable work experience and desired outcomes.
8) High-Performance Work Practices (HPWPs): HPWPs are designed to improve an organization
financial and operational performance. HPWPs are an organizational system that continually aligns
its strategy, goals, objectives, and internal operations with the demand of its external environment to
maximize organizational performance. The primary emphasis of an HPWP is to achieve a strategic fit
among people, technology, information and work.
10) EFFECTIVE LEADERSHIP PROCESSES

Topics: What is Leadership – Managers VS Leaders – Trait Theories of Leadership – Path Goal Leadership Theory
WHAT IS LEADERSHIP
Leadership is specific ability to influence and to motivate others to achieve organizational goals.
Leader: Someone who advances organizational goals by influencing the attitudes and actions of others.
MANAGERS VS LEADERS
Some characteristics of managers versus leaders are includes the following:
MANAGER VERSES LEADERS
Managers Leaders
Managers depress Leader impress
Manager follow rules Leaders make them
Managers dread failure Leaders learn from it
Managers do things right Leader do the right things
Manager direct the subordinates Leaders motivate the subordinates
Managers control the subordinates Leaders extol (praise) the subordinates
Manager are afraid to make mistake Leaders turn mistake into new business
Managers do things that demand result Leaders do things that expand opportunities
Managers do things that translate into action Leader s do things that translate into vision
Managers formulate plan to protect status quo Leaders formulate plan to make their companies grow
MANAGER VERSES LEADERS

Managers Leaders
A copy An original
Maintain Develop

Relies on control Inspires trust
Ask how and when Ask what and why
Short-range view Long-range perspective
Focus on system and structure Focus on people
TRAIT THEORIES OF LEADERSHIP

These theories emphasize the identification and measurement of traits or the personal characteristics that
distinguish effective leaders.
Six Traits of Leaders:

• Drive: Leaders exhibit high effort level. They have a relatively high desire for achievement and they
show imitative.
• Intelligence: leader should be intelligent person and able to create vision, solve problem and make
correct decisions.
• Self-confidence: Leaders need to show self-confidence in order to convince others for achieving
organizational goals.
• Desire to Lead: Leaders have a strong desire to influence and lead others
• Honesty and Integrity: Leaders build trusting relationship between themselves and followers and
showing high consistency between word and deed.
• Job-relevant Knowledge: Effective leader have a high degree of knowledge about company,
industry and technical matters.
PATH GOAL LEADERSHIP THEORY

A theory of leadership which holds that leader effectiveness depends on the ability to motivate and to
satisfy employees.
o Directive Leadership is telling employees exactly what they should do and how they should do it by
preparing detailed work assignments and schedules and defining specific standard of performance.
o Supportive Leadership show concern for employees need and treating employees as equal and
create friendly work environment.
o Participative Leadership is consulting with employees, seeking their ideas and encourages
participation in decision making.
o Achievement-oriented-Leadership sets clear and challenging objective for employees and seeks
continuous improvement in group performance in order to achieve organization goals.
11) GREAT LEADERS: STYLES, ACTIVITIES SAND SKILLS

Topics: Leadership Styles – The Role and Activities of Leadership – What Do Manager Do – Managerial Activities
LEADERSHIP STYLES
Leadership style is the pattern of behavior used by a leader in attempting to influence group members and
make decision. There are different styles of leadership that are required for different situation. Leadership
style includes the autocratic, democratic, and laissez-faire styles.
o Autocratic Style: A leader who typically tends to centralize authority, dictate work method, make
unilateral (one sided) decisions and limit subordinate participations.
Characteristics
-- Tells others what to do
-- Group does not experience feelings of teamwork
-- Limits discussion on idea an new ways to of doing things
When Effective
-- Time is limited
-- Group does not know each other
-- Individual/group lack of skills and knowledge
When Ineffective
-- Developing a strong sense of team is the goal

-- Some degree of skill and knowledge is in member
-- Group wants an element of autonomy in their work
o Democratic Style: A leader who tends to involve subordinates in decision making, delegate
authority, encourage participation in deciding work methods. However, the leader maintains the final
decision making authority. Using this style is not a sign of weakness; it is a sign of strength that your
employees will respect. This styles to become a part of the team and allows making a better decision.
Characteristics
-- Ask before tell
-- Promotes the sense of teamwork
-- Involve group members in planning and carrying out activities
When Effective
-- Time is available
-- Group is motivated and a sense of team exists
-- Some degree of skills or knowledge among members of group
When Ineffective
-- Group is unmotivated
-- High degree of conflict among group members
-- Lack of particular skills and knowledge in group members
o Laissez-faire Style: A leader who generally gives the group complete freedom to make decisions and
complete the work in whatever way it sees fit. However, the leader is still responsible for the
decisions that are made. This is used when employees are able to analyze the situation and determine
what need to be done and how to do it.
Characteristics
-- A person does not seem to be in charge
-- Opinion is offered only when requested
-- Give little or no direction to individual or group
When Effective
-- Sense of team exist
-- Situations is familiar to participants
-- High degree of skills and motivation
When Ineffective
-- Low sense of team interdependence
-- High degree of conflict among group members
-- Low degree of skill or knowledge is in members
LEADER/MANAGER ROLES
Mintzberg’s observation and subsequent research indicate that manager activities can be organized into
ten roles. These role are divided into three categories such as informational role (managing by
information) interpersonal role (managing through people) and decisional role (managing by
action)
Role: A role is a set of expectations for a manager’s behavior.
1) Interpersonal Roles are related to develop and maintain relationship with others.
o Figurehead: Serving as a figurehead, the manager performs ceremonial and symbolic duties such as
greeting visitors, present awards, and signing legal documents.
o Leader: As leader role, manager hire, train, motivate, communicate and coordinate with
subordinates.
o Liaison: Serving as liaison role manager develop relationship with inside and out the organizations.
Manager may meet with peers, customer, corporate staff and others
2) Informational Roles describe the activities used to maintain and develop an information network.

o Monitor: Gather information from various sources and examine the organization’s progress, and
employee’s activities toward achieving goals
o Disseminator: In this role, Manager share and distribute the information they have acquired. Further,
manager forward information to other organization members such as send memo & report and make a
call.
o Spokesperson: Serving as spokesperson role, manager provides information to people outside the
organization. through report & memo and speeches.
3) Decisional Roles: In this role manager examine alternatives, and then make a choices & commitment.
o Entrepreneur: Identify new ideas & opportunities and delegate idea responsibility to others for the
improvement of the organization.
o Disturbance Handler: In this role, managers resolve unexpected problems and take corrective action
during crises or disputes among the subordinates.
o Resource Allocator: in this role, managers make choice about how many people, how much money,
and how much of the available materials will be used to achieve the organizations goal.
o Negotiator: In this role, manager bargain with people outside the organizations. Managers often
negotiate with suppliers for lower price and services.
MANAGERIAL ACTIVITIES
The activities include some of the classic activities identified by pioneering theorists such as Henry Fayol
(the traditional activities) as well as more recent views by modern leadership theorists such as Henry
Mintzberg (the communication activities ) and John Kotter (the networking activities)
MANAGERIAL ACTIVITIES
01) Planning / Coordinating 07) Monitoring / Controlling Performance
-- Organizing the work -- Inspecting work
-- Setting goal and objectives -- Preventive maintenance
-- Schedule employee timetables -- Monitoring performance
-- Defining task needed to accomplish goals -- Monitoring activities of employees
-- Assigning task and providing routine instruction -- Walking around and checking things
02) Staffing 08) Motivating / Reinforcing
-- Hiring -- Listing to suggestions
-- Reviewing applications -- Increasing job challenges
-- Interviewing applicants -- Conveying appreciation, compliments
-- Developing job description for positions -- Delegating responsibility and authority
-- Contacting applicant to inform them of being hired or not -- Allocating formal organizational rewards
03) Training and Development 09) Disciplining / Punishing
-- Orienting employees -- Maintained discipline
-- Arranging for training seminars -- Demotion, firing, layoff
-- Clarifying roles, duties, and job description -- Enforcing rules and policies
-- Coaching, mentoring and helping employees -- Take disciplinary action in case of any volition
-- Helping members with personal development plans -- Take corrective action in case of poor performance
04) Decision Making / Problem Solving 10) Interacting with Outsiders
-- Defining problem -- External meetings
-- Actually deciding what to do -- Maintaining Public relations
-- Handling day-to-day operational crises -- Community service activities
-- Choosing between two or more alternatives -- Contact with suppliers and vendors
-- Developing new procedure to increase productivity -- Maintain professional relationship with customers
05) Processing Paperwork 11) Managing Conflict
-- Processing mail -- Trying to get cooperation
-- General desk work -- Appealing to third party negotiators
-- Reading reports, letters, faxes or e-mails -- Negotiation with union to resolve conflict
-- Writing reports, memos, letters or e-mails -- Appealing to higher authority to resolve a dispute
-- Routine financial reporting and bookkeeping -- Managing interpersonal conflict between group members

06) Exchanging Routine Information 12) Socializing / Politicking

-- Conveying results of meetings -- Informal joking
-- Staff meetings and general discussion -- Politicking, gamesmanship
-- Answering routine procedural questions -- Discussing rumors, gossip, grapevine
-- Giving and receiving routine information -- Complaining , griping, putting other down
-- Receiving and disseminating requested information -- Non-work-related chitchat (e.g. family or personal matters)
LEADERSHIP SKILLS
There are many list of skills needed to success in the global economy includes the following:
01) Creativity, 02) HRD Skills, 03) Delegating, 04) Self-awareness, 05) Team Building, 06) Technical
Skills, 07) Managing Conflict, 08) Cultural Flexibility, 09) Interpersonal Skills, 10) Communication
Skills, 11) Managing Time and Stress, 12) Managing Individual Decisions, 13) Motivating, and
Influencing Others, 14) Setting goals and articulating a Vision and 15) Recognizing, Defining and
Solving Problems.
ORGANIZATION BEHAVIOR
List of important question according to the four year past papers of OB of Moho-ud-Din University.
Question No. 1
• Define the term organization behavior. What are the issues in OB? (Oct / Nov 2008)
• Define the term organization behavior. What are different approaches to study OB? (Nov / Dec 2006)
• Define the term organization behavior and explain the evolution of OB. (April 2009)
Question No. 2
Compare various classical and modern concept of organization. (Oct / Nov 2008)
Question No. 3
What is the significance and different form of rewards in an organization? (Oct / Nov 2008)
Question No. 4
• Describe the attributes of individual personality and how attitude emanate from the personality? (Oct / Nov 2008)
• What is the comprehensive definition of personality? Give brief examples of each of the major elements giving special emphasis to the
called big five personality traits? (May / June 2007)
Question No. 5
• Name various motivational theories and explain two factor theory of motivation. (Oct / Nov 2008)
• Define motivation. Explain primary motives, general motives, and secondary motives. (May / June 2007)
• What is the role of motivation in the organization behavior? Compare the contents theories and process theories of motivation. (Nov / Dec
2006)
• Explain the motivational needs and process of individuals necessary to perform OB. (April 2009)
Question No. 6
• Differentiate between the terms Group and team. What are the basic principles for managing teams in an organization? (Oct / Nov 2008)
• Differentiate between group and team. Why diversity in groups becomes necessary at times? (Nov / Dec 2006)
Question No. 7
Explain different communication models in an organization. (Oct / Nov 2008)
Question No. 8
• Every leader is a manger but every manager in not a leader. Discuss. (Oct / Nov 2008)
• What is the leader ship? Explain trait of the leadership styles with practical examples. (May / June 2007)
• Critically evaluate various theories of leadership. (April 2009)
Question No. 9
• What are some of the major sources of interpersonal conflict? Which do you think is most relevant in today organization? (May / June
2007)
• What are the difference sources of conflicts in an organization? How are these conflict resolved? (Nov / Dec 2006)
Question No. 10
Define diversity. What are some of the major characteristics of diversity? (May / June 2007)
Question No. 11
What types of barriers prevent people from changing their attitude? How can attitude be changed? (May / June 2007)

Question No. 12
• What do you mean by the term stress? What are the effects of occupational stress? (May / June 2007)
• What are the usual sources of occupational stresses at job places? How are these stresses coped? (Nov / Dec 2006)
• What are the dynamics of stress and how these are leading to conflicts in organizations? (April 2009)
Question No. 13
Write note on any three of the following:
1) Job Design 2) Importance of Perception 3) Leadership Skills 4) Causes of Stress (May / June 2007)
1) QWL 2) Learning Process 3) Leadership Skills 4) Communication (Nov / Dec 2006)
Question No. 14
Define between perception and attribution and explain their influence on behavior. (May / June 2007)
Question No. 15
Changing an organizational culture in not difficult but rather risk oriented. How the manger would deals with such changes? (Nov / Dec 2006)
Question No. 16
Describe organizational life cycle and its significance in the development of OB. (April 2009)
Question No. 17
Elucidate the elements of power in an organization and how can we manage politics in an organization. (April 2009)
Question No. 18
What are the various forms of design of organization and describe their relative merits and demerits. (April 2009)
Question No. 19
Discuss the components of job design. What is the relationship between performance and job design? (April 2009)

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NOTES FOR MASTER CLASSES

KAPRIZzzz….. Book Spot 1

KAPRIZzzz….. Book Spot 2

01) INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

DEFINITION OF ORGANIZATION BEHAVIOR

CHALLENGES AND OPPORTUNITIES FOR OB

KAPRIZzzz….. Book Spot 3

2) Globalization: Manager must be able to juggle international competition, overseas suppliers,

KAPRIZzzz….. Book Spot 4

02) ORGANIZATION DESIGN

DEFINITION OF ORGANIZATION DESIGN

FORMS OF ORGANIZATION DESIGN

VP Marketing VP Finance VP Operations

Manager: Credit Cards Manager: Car Financing Managers: Mortgage

Divisional Structure: Geographic Structure

VP Europe VP Asia VP Middle East

Divisional Structure: Customer Structure

Manager: Local Customer Managers: Foreign Customer Manager: Military Contract

Benefits of Divisional Organization

Limitation of Divisional Organization:

3) ORGANIZATIONAL REWARD SYSTEM

KAPRIZzzz….. Book Spot 6

Performance Based Versus Membership Based Rewards

INDIVIDUAL INCENTIVES PAY PLAN

GROUP INCENTIVES PAY PLAN

4) PERSONALITY AND ATTITUDE

KAPRIZzzz….. Book Spot 7

THE BIG FIVE PERSONALITY TRAIT

THE BIG FIVE MODEL

A personality dimension describing someone who is sociable, assertive,

A personality dimension describing someone who is warm, caring, courteous,

A personality dimension describing someone who is dependable, hardworking,

A personality dimension describing someone who is calm, secure, happy, and

A personality dimension describing someone who is intellectual, creative,

MYER-BRIGGS TYPE INDICATOR (MBTI)

SIXTEEN PRIMARY TRAITS

KAPRIZzzz….. Book Spot 9

• Resolving Discrepancies: another way in which attitude can be changed is by resolving

• Influence of Friends or Peers: An important way of changing attitudes is through persuasion by

DEFINITION OF JOB SATISFACTION

5) MOTIVATIONAL NEEDS AND PROCESSES

THE MEANING OF MOTIVATION

KAPRIZzzz….. Book Spot 10

EXAMPLES OF KEY SECONDARY MOTIVES

Types of Secondary Motives Details/Description

• Having executive privileges

• Being liked by many people

• Attaining a difficult goals

MASLOW'S NEED THEORY OF MOTIVATION

KAPRIZzzz….. Book Spot 11

MASLOW'S NEED THEORY OF MOTIVATION

Hygiene Factors Motivators

MCGREGOR THEORY X AND Y

Employees must be coerced, controlled and threatened with

CONTEMPORARY THEORIES OF MOTIVATION

DEFINITION OF DECISION MAKING

THE RATIONAL DECISION MAKING PROCESS

GROUP DECISION MAKING

Extra-organizational Stress Organizational Stress Group Stress Individual Stress

-- Political Uncertainty -- Administrative Policies -- Lack of Group Affiliation -- Family Problem

-- Technological Uncertainty -- Organizational Processes