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Communication Process
What is communication process?
“Transmission of a message from a sender to a receiver in an
understandable manner.”
• The communication process is a guide toward realizing effective
communication.
• Effective communication leads to understanding.
Being presented by: Bilal Amjad
Components of Communication
• The communication process is made up of four key components.
• Those components include encoding, medium of transmission, decoding,
and feedback. Sender and Receiver are also a part of it.
Being presented by: Bilal Amjad
Sender Message Receiver
Feedback
Importance of understanding communication process
• Communication is only successful when both the sender and the receiver
understand the same information as a result of the communication.
Importance of Communication in Business:
• Effective communication is vital to all businesses. The communication process
involves:
"If I went back to college again, I'd concentrate on two areas: learning to write and
to speak before an audience. Nothing in life is more important than the ability to
communicate effectively."
-- Gerald R. Ford
Importance of understanding communication process -
cont
Importance of Communication in the Workplace
• Communication is important in a workplace setting because people must interact
with one another in ways that will get the job done quickly and effectively.
"Communication is really all anyone ever gets paid for ultimately...and if you cannot
effectively communicate...you will PAY...not get paid..." -- Doug Firebaugh
Importance of Communication in Leadership
• It is simply impossible to become a great leader without being a great communicator.
"The art of communication is the language of leadership." — James Humes
• Good Leaders, Good Communicators.
Importance of understanding communication process -cont
Significance of Communication in Relationships
• Definitely, communication plays the main role in establishing
relationships. Communication is important in relationships as it allows us
to share interests, aspirations and concerns, to support each other, to
organize our lives and make decisions, and to work together.
Types of Communication
• People communicate with each other in a number of ways that depend
upon the message and its context in which it is being sent. Choice of
communication channel and your style of communicating also affect
communication. So, there are a variety of types of communication.
• Types of communication based on the communication channels used are:
1. Verbal Communication
2. Nonverbal Communication
Verbal Communication
• Verbal communication refers to the form of communication in which message is transmitted verbally;
communication is done by word of mouth and a piece of writing. Objective of every communication
is to have people understand what we are trying to convey. In verbal communication remember the
acronym KISS(keep it short and simple).
• Verbal Communication is further divided into:
1. Oral Communication
2. Written Communication
1. Oral Communication
In oral communication, Spoken words are used. It includes
face-to-face conversations, speech, radio etc.
2. Written Communication
In written communication, written signs or symbols are used
to communicate. A written message may be printed or hand
written.
Non Verbal Communication
• Nonverbal communication is the sending or receiving of wordless messages. We
can say that communication other than oral and written, such as gesture, body
language, posture, tone of voice or facial expressions, is called nonverbal
communication. Nonverbal communication is all about the body language of
speaker.
• Nonverbal communication has the following three
elements:
1. Appearance
Speaker: clothing, hairstyle, neatness, use of
cosmetics.
Surrounding: room size, lighting, decorations,
furnishings
2. Body Language
facial expressions, gestures, postures
3. Sounds
Voice Tone, Volume, Speech rate
Principles of Effective Communication
1. Principle of clarity.
2. Principle of Objective
3. Principle of understanding the
receiver
4. Principle of consistency
5. Principle of completeness
6. Principle of Feedback
7. Principle of time
Barriers in Communication
• Communicating is straightforward. What makes it
complex, difficult, and frustrating are the barriers
we put in the way.
• Top Barriers :
• EXPECTATIONS
• AVOIDANCE
• FIXING
• SCAPEGOATING
• PROBING
• SPEAKING IN CODE
• CONTROL
• BLAMING
• CONFLICT AVOIDANCE (CHAOS)
• EXCLUSION
• BOUNDARY OR BARRIER
• Information overload
• Trust and credibility
• Time
• Emotions
• Message congruency
Objective : thoughts and goals
Subjective : feelings
7 C’s of Communication
Completeness
Conciseness
consideration
clarity
concreteness
courtesy
correctness
Leadership
According to Koontz and O’Donnell,
“Leadership is the process of influencing
others towards the accomplishment of the
goal. It is the ability of a manager to induce
subordinate to work with zeal and confidence.
According to Louis A. Allen, “ A leader is one
who guides and directs other people. He gives
the efforts of his followers a direction and
purpose, by influencing their behavior.
Definition:
Characterstics of leadership
1. Leadership is a process of influence.
2. Leadership is related to the situation.
3. Leadership is a function of stimulation
4. Leadership gives an experience of helping
others in attaining their common objective.
5. There should be existence of followers.
The Characteristic of an Effective
Leader…
• Inspiring
• Has a vision, mission and
goal
• Integrity & diplomacy: a quality
Of being honest.
• Motivational
• Communication & listening skills
• Coaching skills
• Decisive: having a power or quality of
Leaders vs. Managers
 LEADERS:
 innovate
 focus on people
 inspire trust
 have a long-range view
 ask what and why
 have eyes on horizon
 originate
 challenge status quo
 do the right thing
 MANAGERS:
 administrate
 focus on systems and
structures
 rely on control
 have a short-range view
 ask how and when
 have eyes on bottom
line
 initiate
 accept status quo
 do things right
Styles of Leadership
1. Autocratic Style
2. Participative
3. Laissez- fair style
Autocratic style
I want both of you to. . .
Autocratic Style
This style is also known as authoritarian style.
Autocratic leaders believes in strict command.
He gives ordered which must be obeyed by his
subordinates.
High degree of dependency on the leader
Can create de-motivation and alienation
of staff
May be valuable in some types of business where
decisions need to be made quickly and decisively
Advantages
Quick decision making
Leader can have direct control over group
It can be applied to group activity.
One decision making authority
Disadvantages
Takes all decision which is very demotivating for the
subordinates.
Misunderstanding of the people due to one way
communication.
People get less chance of growth of their potentials.
High dependency of leader for everything and people
start avoiding responsibility
Types of Autocratic style
• Strict Autocratic: The leaders of this style
believes in passing the orders. Communication
is downward and he uses fear and threats.
• Benevolent Autocratic: In this leaders uses
reward and punishment to work effectively.
Limited upward communication.
• Manipulative autocratic: The leaders shows
that the suggestion of the employees are
welcomed but he takes his own decisions. In
this leadership style, there is no motivation for
Participative style
Let's work together to solve this. . .
Participative Style
 It is also known as democratic style.
 In this style, the decision making power is dispersed among
the group members.
 Policies are worked out in group discussions and with the
acceptance of the group.
 Praises or blames are group factor.
 Democratic leadership style means facilitating the
conversation, encouraging people to share their ideas, and then
synthesizing all the available information into the best possible
decision.
 Ideas move freely amongst the group and are discussed openly.
Advantages
 In this style, employees feel motivated and
satisfied, which increases the productivity.
The morale of group is high
Group decisions making reduces conflicts
Disadvantages
Subordinate can use particpative leadership
as a tool of manipulation.
Top level decision is making difficult.
There can be chaos and bias.
Laissez-fair style
You two take care of the problem while I go. .
Laissez-faire style
• In this style, the leader allows the employees
to make the decisions
• This leadership style is also known as free-rein
leadership.
• This leader acts as suprevisor.
• Generally, self managed team his this kind of
leadership style.
• A free rein leader doesn’t lead but leave the
groups entirely to itself.
Comparison of Authoritarian,
Democratic, & Laissez-Faire
Authoritar. Democrat. Laissez-F
Degree of
freedom
Little Moderate Much
Degree of control
High Moderate None
Decsision making
By leader Leader&
group
Group or
no one
Leader activity level
High High Minimal
Assumption of
Responsibility Leader Shared Abdicated
Output of group
High&
good qual.
High &
creative
Variable-
Poor?
Theories of leadership
1) Great man theory leadership
2) Trait theory
3) Behavioral Theory
a) Ohio state studies
b) Managerial grid theory
4) Situational Theory
a) Fiddlers' Contingency theory
b) Situational Leadership model
c) Path goal theory
1) Greatman theory of leadership
•This theory was formulated in the year 1950 according to
which leaders are born not made.
•This theory says that leaders have certain inherent traits which
make them leaders and to be a successful leader, it is necessary
to have inborn leadership qualities.
•This theory says that leadership is god gifted and talks about
certain qualities such as intelligence, charm, courage,
persuasiveness, commanding personality aggresiveness etc.
•In this theory we can take the example of napolean, who is
considered as a born leader.
The Great Man Theory
Early explanations of leadership studied the
“traits” of great leaders
 “Great man” theories (Gandhi, Lincoln, Napoleon)
 Belief that people were born with these traits and
only the great people possessed them
Personal qualities of leaders
 Personality traits, such as extraversion,
conscientiousness, and openness.
 Intelligence and emotional intelligence (degree of
social skill).
 Expertise, skill, and experience.
The Great Man Theory
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2) Trait Theories
Leadership Traits:
• Ambition and energy
• The desire to lead
• Honest and integrity
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant knowledge
Traits Theories of
Leadership
Theories that consider
personality, social,
physical, or intellectual
traits to differentiate
leaders from nonleaders.
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Trait Theories
Limitations:
• No universal traits found that predict leadership in
all situations.
• Traits predict behavior better in “weak” than
“strong” situations.
• Unclear evidence of the cause and effect of
relationship of leadership and traits.
• Better predictor of the appearance of leadership
than distinguishing effective and ineffective
leaders.
Trait theory
•This theory is based on great man theory, in other words this
theory believes that leadership is the result of certain traits.
•This theory says that leaders differ from their followers because
of certain generally acceptable traits.
•In this theory we can take the example of Ratan Tata, Narayan
Murthy, Steve Jobs, Nelson Mandela etc are well known as
leaders because of their personal qualities and characteristics.
•It can also be said that Mahatma Gandhi had not received any
formal training for developing leadership skills, then also he was
a charismatic leader.
•In the year 1930-1940 many researches were conducted to find
out the factor which are responsible for making a leader and it
was said that if a person possesses particular traits he can be
come a leader.
•Researchers have identified almost 40 traits which are
important to have in you if you want to become a leader.
Some of these traits are:
Traits
Adaptable to situation
Assertive
Cooperative
Alert to social environment
Tolerant of stress
Willing to assume responsibility
Skills
Clever
Conceptually skilled
Diplomatic and tactful
Fluent in speaking
Persuasive
Socially skilled
3) Behavioural Theory
• Imply that leaders can be trained – focus on
the way of doing things
– Structure based behavioural theories – focus on the leader
instituting structures – task orientated
– Relationship based behavioural theories – focus on the
development and maintenance of relationships – process
orientated
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Hall Inc. All
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Behavioral Theories
• Trait theory:
Leaders are born, not made.
• Behavioral theory:
Leadership traits can be taught.
Behavioral Theories of Leadership
Theories proposing that specific behaviors
differentiate leaders from nonleaders.
a) Ohio State Studies
The Ohio State studies identified various independent dimensions of a
leader’s behaviour.
After analyzing the leadership behaviour in various situations, they
narrowed down the list to two leadership behaviours
Initiating Structure
The extent to which a leader is likely to
define and structure his or her role and
those of sub-ordinates in the search for
goal attainment.
Consideration
The extent to which a leader is likely to have job
relationships characterized by mutual trust, respect for
subordinate’s ideas, and regard for their feelings.
b) The Managerial Grid
• Created and developed by Robert Blake and Jane S. Mouton.
• Considered as most significant and practical contribution to
organization development and effective management
principles.
• As shown in the next slide, the managerial grid theory is a
presentation of two dimensional view of leadership style.
• These two dimensions are
– Concern for people
– Concern for production
The X-axis of the grid represents the Leaders concern for production
and the Y-axis represents the leaders concern for people.
It is expressed a nine point scale. The minimum concern is represented
by number 9 and the max. is concerned by number 9.
• Managerial Grid
– Appraises leadership styles using two dimensions:
• Concern for people
• Concern for production
– Places managerial styles in five categories:
• Impoverished management
• Task management
• Middle-of-the-road management
• Country club management
• Team management
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The Managerial
Grid
(Blake and Mouton)
E X H I B I T
11–1
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Exhibit 17–3
The
Managerial
Grid
Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and
Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.
4) Situational Theory
The Situational theories emphasizes that there is no specific style of
leadership; it is the situation which decides whether a person is a leader
or not . In other words, leadership is strongly affected by the situation in
which a leader emerges and in which he works.
The situational theory says that success of any organization depends
upon the leadership of that organization. So, the leader should be
flexible enough to understand the situation and his followers.
The emphasis is on the type of situation, behaviour of the leader and
the followers. The leader is the means of achieving the goals of the
group and the members.
In other words, we can say that according to this theory a leader
becomes a leader due to the various situational factors, and the
interaction between the leader and the group member.
4a) Fiedler’s Contingency Approaches
Leader member relations
Task structure
Position power
Fiedler’s contingency model: a model
designed to diagnose whether a leader is
task-oriented or relationship-oriented and
match leader style to the situation
Contingency Theory (Fiedler 1978)
• Leadership effectiveness is determined by
the interaction between the leader's
personal characteristics and the
characteristics of the situation
• Leaders are classified as person-oriented or
task-oriented (which type will be more
effective depends on the leader's degree of
situational control)
• Control depends on relationship between
leader/followers, the degree of task
Measuring
Motivational
Style
Least Preferred Coworker
Scale, or LPC scale.
“Think of the person whom
you least like to work with”
The LPC Scale
LPC Scale
• He or she may be someone you work with
now or someone you knew in the past. This
coworker does not have to be the person
you like least but should be the person with
whom you had the most difficulty in getting
a job done.
 High LPC leaders
most effective in
“moderately” favorable
situations
 Low LPC leaders
most effective in very
favorable or very
unfavorable situations
In moderate situations,
correlation between LPC &
Effectiveness is POSITIVE
In highly favorable/
unfavorable situations,
correlation between LPC &
Effectiveness is NEGATIVE
Fiedler’s Contingency Theory
LPC Scale
Contingency Theory (Fiedler 1978)
• The task-oriented leader will be effective in
extremely favorable or extremely
unfavorable situations
• The person-oriented leader will be more
effective in moderately favorable situations
• Criticisms include most of research was in
the lab
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Hall, Inc. All
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17–52
Contingency Theories of Leadership
• The Fiedler Model (cont’d)
– Proposes that effective group performance depends
upon the proper match between the leader’s style of
interacting with followers and the degree to which the
situation allows the leader to control and influence.
– Assumptions:
• A certain leadership style should be most effective in
different types of situations.
• Leaders do not readily change leadership styles.
– Matching the leader to the situation or changing the situation to
make it favorable to the leader is required.
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Hall, Inc. All
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Contingency Theories… (cont’d)
• The Fiedler Model (cont’d)
– Least-preferred co-worker (LPC) questionnaire
• Determines leadership style by measuring responses to 18
pairs of contrasting adjectives.
– High score: a relationship-oriented leadership style
– Low score: a task-oriented leadership style
– Situational factors in matching leader to the situation:
• Leader-member relations
• Task structure
• Position power
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Hall, Inc. All
rights
reserved.
17–54
Exhibit 17–4 Findings of the Fiedler Model
4b) Situational Leadership model
On the basis of relationship behaviour and task behaviour, four leadership style were suggested.
In the situational model, a style of the leadership is matched with the maturity of the followers.
The maturity of the follower is decided by his ability to take responsibility, his education,
willingness to do a task and capacity to set high but attainable goals.
Task behaviour is all about the leaders organizing capability and coordinating ability so that a
task can be accomplished .
Situational Theory - Hersey and
Blanchard (1978)
 Hersey and Blanchard’s extension of the Leadership Grid focusing on the
characteristics of followers as the important element of the situation, and
consequently, of determining effective leader behavior.
 Effectiveness depends on the leader's task and relationship
behaviors.
 The Leadership Grid: Blake & Mouton assume that people vary in
their concern for production and in their concern for people and that
individuals who are high on both dimensions (9,9) are the best
leaders.
Hersey and Blanchard’s Situational Theory of
Leadership
Follower Characteristics Appropriate Leader Style
Low readiness level
Moderate readiness level
High readiness level
Very high readiness level
Telling (high task-low relationship)
Selling (high task-high relationship)
Participating (low task-high rel.)
Delegating (low task-low relationship)
4d) Path Goal theory
Path-Goal Theory (House 1971)
• Path-goal theory focuses on the kinds of
leader behaviors that allow subordinates to
achieve personal and organizational goals
• Four leadership styles can be adopted to
facilitate employee attainment of goals
– Directive
– Supportive
– Participative
– Achievement-oriented
Path-Goal Situations and Preferred
Leader Behaviors
Situation Leader Behavior Impact on Follower Outcome
Supportive
Leadership
Directive
Leadership
Achievement-
Oriented
Leadership
Participative
Leadership
Followers lack
self-confidence
Ambiguous job
Lack of job
challenge
Incorrect
reward
Increases confidence to
achieve work outcomes
Clarifies path to reward
Set and strive for high
goals
Clarifies followers’
needs to change
rewards
Increased
effort;
improved
satisfaction
and
performance
Path-Goal Theory (House 1971)
• The most effective leadership style depends
on the situation and the characteristics of
the subordinates
• Requires leader flexibility
• Directive style works best with unskilled
workers
• Supportive leadership works best with
highly skilled workers
• Theory is difficult to test and operationalize
1. Charismatic Leadership
2. Transactional Leadership
3. Transformational Leadership
4. Visionary leadership
Contemporary Business Leaders
Charismatic Leadership
• Charismatic leadership is a process of
influencing the followers so that they can
admire their actions.
• They are dynamic and risk takers.
• They are confidence and expert.
virgin groups chairman Sir Richard branson
Steve job cofounder of Apple company.
Transactional Leadership
Transcational leaders are ones who inspire and
direct their followers on the path of established
goals. They guide and motivate their followers
in the direction of goals by clarifying role and
task requirements. They monitor the work of
the subordinates and use corrective measures if
requireds.
Tvs group of Venu Srinivasan
Anil Ambani of Ambani group
Transformational Leadership
It is the demand of modern organization or
modern business world. They are the ones who
try to transform individuals to extract their
potential and develop them to become better
leaders. They inspire and motivate their
followers to put in extra effort towards
attainment of goals. They guide followers by
providing a sense of respect, providing vision
and mission and showing trust among the
employees.
Visionary Leadership
This leadership style is take from the world
Vision. Visionary leaders are the ones who have
the ability to create and articulate a realistic,
credible and attractive vision of the future.
They emphasize the vision not only verbally
but also through action.
N.R murthy of infosys and subash chandra of Zee
group
Motivation
The term motivation has its own origin in the
Latin word “mover” which means to move. Thus,
motivation stands for movement. According to
Scott, “Motivation is a process of stimulating
people to action to accomplish desired goals”.
Motivation has three distinct features
• It results from a felt need
• It is goal directed
• It persist until the satisfaction of a need state
occurs.
Introduction (Cont.)
Motivation
is the
psychological
process
that
leads to
Choice of
behavior
that
results in Some level
of job
performance
The Motivation-Behavior-Job Performance Sequence
Types of motivation
• Intrinsic motivation refers to motivation that is driven by an interest
or enjoyment in the task itself, and exists within the individual rather
than relying on any external pressure. Intrinsic Motivation is based on
taking pleasure in an activity rather working towards an external
reward. Intrinsic motivation has been studied
by social and educational psychologists since the early 1970s.
Students who are intrinsically motivated are more likely to engage in
the task willingly as well as work to improve their skills, which will
increase their capabilities.
• Extrinsic motivation refers to the
performance of an activity in order to attain an
outcome, which then contradicts intrinsic
motivation. Extrinsic motivation comes from
outside of the individual. Common extrinsic
motivations are rewards like money and
grades, coercion and threat of punishment.
Competition is in general extrinsic because it
encourages the performer to win and beat
others, not to enjoy the intrinsic rewards of the
activity. A crowd cheering on the individual
and trophies are also extrinsic incentives.
Theories of motivation
Content theories
 Maslow’s need hierarchy theory
 Herzberg two factor theory
 Alderfer’s ERG and Achivement motivational
theory
Process Theories
 Vroom’s Expectancy
model00000000000000000000000
 Adam’s Equity Theory
 Porters performance and satisfaction model
Physiological
Safety
Belongingness
and love (Social needs)
Esteem (Ego)
Self-
actualization
Maslow’s Hierarchy of Needs
Maslow’s Hierarchy
of Needs Theory
• Five groups of basic needs
• Healthy adults try to satisfy these needs
• So basic that they motivate behavior in many
cultures
• Chronic frustration of needs can lead to
psychopathological results
Maslow’s Hierarchy
of Needs Theory
• Five groups of basic needs
• Healthy adults try to satisfy these needs
• So basic that they motivate behavior in many
cultures
• Chronic frustration of needs can lead to
psychopathological results
Maslow’s Hierarchy
of Needs Theory (Cont.)
• Physiological needs: basic requirements of
the human body; food, water, sleep etc
• Safety needs: desires of a person to be
protected from physical and economic harm
• Belongingness and love needs (social): desire
to give and receive affection; be in the
company of others
Maslow’s Hierarchy
of Needs Theory (Cont.)
• Esteem needs: self-confidence and sense of
self-worth
– Esteem from others: valuation of self from other
people
– Self-esteem: feeling of self-confidence and self-
respect
• Self-actualization needs: desire for self-
fulfillment
Maslow: “. . . the desire to become more and more
what one is, to become everything that one is
capable of becoming.”
Criticism
• It is difficult to interpret and operationalize
the concept of need hierarchy.
• This model is based on relatively small
subjects.
• The need classification model is artificial and
arbitrary which cannot be given in five step
hierarchy.
• The same need will not lead to the same
response in all the individuals.
• The concept of need is introspective in nature
which cannot be tested objectively.
Two factor Theory
The two factor theory was proposed by
Frederick Herzberg. This theory is also known
as the motivation-hygiene Theory. According
to this theory motivation depends upon two
factors- motivators and Hygiene factors.
Hygiene factors – Herzberg said that the
presence of these basic factors might not be a
guarantee of satisfaction but absence can
cause dissatisfaction.
Hygiene factors
• Rules and policies
• Supervision
• Salary,
• Security
• Working conditions
Motivators
 Achievement
 Advancement
 Autonomy (independence or freedom)
 Challenge
 Feed back
McClelland’s Achievement Motivation
Theory
• McClelland and colleagues studied the
behavioral effects of three needs
– Need for Achievement
– Need for Power
– Need for Affiliation
McClelland’s Achievement Motivation
Theory (Cont.)
• Strong need for achievement people
– Take responsibility for results of behavior
– Willing to take calculated risks
– Set moderate achievement goals
– Prefer to set performance standards for
themselves
– Prefer nonroutine tasks to routine assignments
– Welcome feedback about how well they are doing
McClelland’s Achievement Motivation
Theory (Cont.)
• Strong Need for Affiliation people
– Focuses on "establishing, maintaining, and
restoring positive affective relations with others"
– Want close, warm interpersonal relationships
– Seek the approval of others, especially those
about whom they care
– Like other people, want other people to like them,
and want to be in the company of others
McClelland’s Achievement Motivation
Theory (Cont.)
• Need for achievement and behavior
– Money: important to both high and low
achievers, but for different reasons
• High achiever wants concrete feedback about
performance
• Making a profit, or receiving a bonus, is a statement
about success or failure
• Symbol of success and feedback about job performance
E.R.G. Theory
• A variation of Maslow's hierarchy of needs
• Three groups of needs
–Existence needs: physical and material
wants
–Relatedness needs: desires for
interpersonal relationships
–Growth needs: desires to be creative and
productive; to use one’s skills
E.R.G. Theory (Cont.)
Physiological
Safety
Belongingness
and love
Esteem
Self-
actualization
Relationship of
Maslow’s hierarchy
to E.R.G. Theory.
Maslow
hierarchy
E.R.G.
Theory
Relatedness needs
Existence needs
Growth needs
E.R.G. Theory (Cont.)
• Both similar to and different from Maslow's
need hierarchy
• Satisfied and unsatisfied needs operate in
much the same way
• Movement upward is the same
• Movement downward is new
See text book Figure 7.2
Process Theories
• Expectancy theory: The expectancy theory is also known as
instrumentality theory, path goal theory and valence- instrumentality
theory. The theory was develop by Victor H.vroom. According to this
theory, work effort in an organization is directed towards behaviours
that people believe will lead to desire outcomes. In other words we
can say that people adopt such behaviour in their work effort which
give desired outcomes.
Vroom has mathematical equation
MF= V*I*E
Where ,
MF= motivational force
V= valence
I= instrumentality
E= Expectancy
• The expectancy theory says that individuals have
different sets of goals and can be motivated if
they believe that:
• There is a positive correlation between efforts
and performance,
• Favourable performance will result in a desirable
reward,
• The reward will satisfy an important need,
• The desire to satisfy the need is strong enough to
make the effort worthwhile.
Expectancy: It is believed that a particular level of effort will be
followed by a particular level of performance. It means
expectancy = effort to perform. We can say it for example that
you can work hard if you believe that it will lead to success.
Instrumentality: It is the relationship between first level
outcomes and second level outcomes. In other words , it is the
perception of an individual that first level of outcomes are
associated with second level outcomes. For eg: If you passed
entrance test of iim exam you will get admissions in IIM. If
there is no realtion between two , their instrumentality will be
zero.
Valence: It is the preference of individual for a particular
second level outcome. Valence can have values ranging from
negative to positive. An outcome is positive when it is
preferred and negative when it is not preferred.
Assumptions
• A combination of forces in the individual and the
environment determines behaviour.
• Individual decides their own behavior in the
organizations.
• Different individuals have different needs and
goals. So they expect different rewards for their
work.
• On the basis of their perception of which
behavior will lead to the desired outcome they
decide about alternatives.
Organization conflict
Conflict is a natural disagreement resulting from
individuals or groups that differ in attitudes,
beliefs,values or needs. It can also originate from
past rivalries and personality differences.
Definition: Conflict is a perceived differences of
values between two or more parties that result in
mutual opposition.
Conflict can be defined as a process in which one
party perceives that another party has negatively
affected, or is about to negatively affect,some
thing that the first party cares about.
17-93
The Effect of Conflict on Organization Performance
Figure 17.1
17-94
Organizational Conflict
• Organizational Conflict
– The discord that arises when goals, interests or
values of different individuals or groups are
incompatible
and those people
block or thwart
each other’s efforts
to achieve their
objectives.
Features of Conflict
• Conflict is incompatible( certain to disagree)
in nature: It occurs when two or more people
have mutually exclusive to be achieved.
• Conflict arises due to scarcity of resources.
• Conflict can be verbal or non verbal behaviour.
• Conflict is deliberate(intentionally).
• It is based on perception.
Healthy conflict can lead to:
• Growth and innovation
• New ways of thinking
• Additional management options
• High productivity
Level of conflict
• Latent conflict: In every organizations conflict begins with latent
conflict. Conflict can created by any unexpected incident such as
change in direction of the organization or over loaded employee being
given another project, or promise of salary increase which was not
implemented.
• Perceived conflict: At this level the conflict arises as a
misunderstanding between two parties. This misunderstanding can be
resolved by improved communication
• Felt conflict: The parties in conflict develop negative feelings about
each other.
• Manifest conflict: One party decides how to react to or deal with the
party that it sees as the source of the conflict, and both parties try to
hurt each other and thwart( to hinder ) each other’s goals.
• Conflict outcome: Every conflict episode leaves a conflict aftermath
that affects the way both parties perceive and respond to a future
conflict episode.
16
Sources of Organizational
Conflict
• Differentiation
– Differences in functional
orientation
– Status inconsistencies
• Task relationships
– Overlapping authority
– Task interdependence
– Incompatible evaluation
systems
• Scarcity of resources
14
Sources of conflict
1. Interdependence
 Pooled interdependence
 sequential interdependence
 Reciprocal interdependence
2. Scarcity of resources
3. Specialization
4. Competitive incentive and reward system
5. Incompatible personalities
6. Lack of clarity of roles and responsibility
7. Differences of perception, value and attitude
8. Poor communication
9. Cultural barriers
Types of conflict
1. Intrapersonal conflicts
2. Interpersonal conflict
3. Intra group conflict
4. inter group conflict
5. inter organizational conflict
Conflict Management approaches
• Encouraging individualistic thinking
• Increasing individual competition by
rewarding individual performance
• Providing all good and bad news to the
employees
• Creating role conflict between perceived and
actual role
• Bringing change in the organizational
structure
• Restricting the work unit
Conflict managemet
• Competing
• Collaborating
• Avoiding
• Accomodating
• comporising
Collaborating
Fundamental premise: Teamwork and cooperation help everyone achieve
their goals while also maintaining relationships
Strategic philosophy: The process of working through differences `will
lead to creative solutions that will satisfy both parties' concerns
When to use:
When there is a high level of trust
When you don't want to have full responsibility
When you want others to also have "ownership" of solutions
When the people involved are willing to change their thinking as more
information is found and new options are suggested
When you need to work through animosity(strong dislike and hatred) and
hard feelings
Drawbacks:
The process takes lots of time and energy
Some may take advantage of other people's trust and openness
Compromising:
Fundamental premise: Winning something while losing a little is OK
Strategic philosophy: Both ends are placed against the middle in an
attempt to serve the "common good" while ensuring each person
can maintain something of their original position
When to use:
When people of equal status are equally committed to goals
When time can be saved by reaching intermediate settlements on
individual parts of complex issues
When goals are moderately important
Drawbacks:
Important values and long-term objectives can be derailed( bring a
sudden hault) in the process
May not work if initial demands are too great
Accommodating :
This style is less assertive and highly
cooperative. People try to be generous and
sacrificing. This style can be very useful for
the temporary solution of conflict in short run.
People using this style may be perceived as
submissive and weak persons. This style is
used in a situation when an issue is important
for other person, and you want the other
person to learn from his mistakes.
Competing :
This style is highly assertive and
uncooperative. This style is power oriented
and includes dominance. Those who believe in
this style of conflict resolution rely heavily
on punishment to have control over others.
People use fight, argument even physical
aggression to achieve their goal. Here one
party wins and others looses. This style is
popular in a few situations such as only on
emergencies, or when there is a need to protect
yourself and others from taking undue
advantage.
Avoiding:
Fundamental premise: This isn't the right time or place to address this issue
Strategic philosophy: Avoids conflict by withdrawing, sidestepping, or
postponing
When to use:
When the conflict is small and relationships are at stake
When you're counting to ten to cool off
When more important issues are pressing and you feel you don't have time to
deal with this particular one
When you have no power and you see no chance of getting your concerns met
When you are too emotionally involved and others around you can solve the
conflict more successfully
When more information is needed
Drawbacks:
Important decisions may be made by default
Postponing may make matters worse
17-109
Negotiation
• Negotiation
– Parties to a conflict try to come up with a solution acceptable
to themselves by considering various alternative ways to
allocate resources to each other
Methods/ steps
– Unfreezing
– Being open
– Empathy for others
– Searching for common goal
– Generating alternatives
– Responding to alternatives
– Searching for solutions
– Breaking the silence
– Accepting a solution with the group
Types of change
Structural change
Technological change
Automation change
Workforce change
Needs for change
• External environment such as change in
market place, government laws and regulation
technology, labour market and economical
changes
• Internal environment such as changes in
organizational strategies, workforce changes,
new equipments and change in employeed
attitue.
Factors of change
• Competitive factors:
Every organization must make
changes to attempt to match or exceed its
competitors on at least one of the following
dimensions.
 Efficiency
 Quality
 innovation
 customer responsiveness
• Economic, political and global forces affect
organizations by forcing them to change the
process they adopt for producing good and
services. They also affect the choice of location
for the production.
Need to change organization structure due to
following
 To allow expansion in foreign market.
 To adopt different types of national culture.
 To help expatriates in adapting to the cultural
values of the place where they are located.
Resistance to change
In any organization where change is introduced ,
people and group react in different ways.
There can be great support or active
resistance too. If people have don’t have
enough information regarding the process and
impact of change, people resist change.
Sources of Resistance to Change
• Ignorance: a failure to understand the
situation or the problem
• Mistrust: motives for change are
considered suspicious
• Disbelief: a feeling that the way
forward will not work
• “Power-Cut”: a fear that sources of
influence and control will be eroded.
Sources of Resistance to Change
• Loss: change has unacceptable personal
costs
• Inadequacy: the benefits from the change
are not seen as sufficient
• Anxiety: fear of being unable to cope with
the new situation.
Sources of Resistance to Change
• Comparison: the way forward is disliked
because an alternative is preferred
• Demolition: change threatens the
destruction of existing social networks.
Symptoms of Resistance
• Hostility and Aggression
• An individual may develop apathy towards his
work
• Absenteeism and tardiness
• Development of Anxiety and Tension
• Slowdown or strikes
Strategies to overcome Resistance
• Selective perception
• Lack of information
• Fear of unknown
• Habit
• Resentment towards the manager
Strategies
• Education and communication
• Participation and involvement
• Facilitation and support
• Negotiation and agreement
• Manipulation and co-optation
• Explicit and Implicit coercion
Process of change
• Initiation
• Motivation
• Diagnosis
• Collection of information
• Evaluation of Alternatives
• Action Proposal
• Implementation
• Stabilization
Lewin’s 3 stage model of change
O.D
O.D is a technique that helps individual to learn
to change their attitude and behavior, so that
they can function effectively both, as
individual as organization members.
It is said that O.D is a technique which helps
two interdependent groups explore their
perceptions and relations in order to improve
their work interactions.
O.D encourages some specific values
• Openness: Facing the problem instead of avoiding
it.
• Confrontation: searching for the solution of the
problem and developing good relations among
employees.
• Trust
• Authenticity: Dependency on each other
• Proactive: Taking initiative,
• Autonomy: Strength of a person to collaborate
with others without feeling inferior.
• Collaboration: an activity where people prefer to
work in group rather than working alone
Techniques of O.D
• Counseling
• Sensitivity Training
• Process Consultation
• Team building
• Inter group training
• Organizational mirroring
• Organizational confrontation meeting
O.D Interventions
Organizational development is a difficult and a complicated
issue. If not handled properly it can have disastrous results.
While planning O.D therefore, we need to introduce very
specific interventions to facilitate.
Several experts have suggested classification system for
these interventions.
O.D cube: Schmuck and miles (1971) proposed a 9*6*8 cube,
suggesting the following dimensions.
Diagnosed problem
Focus of attention
Mode of intervention
Consul Cube
Blake and mouton (1976) proposed a comprehensive
system covering a large number of interventions at
different level. They classified interventions using three
dimensions to make it cube (5*4*5)
Consulting approach
Focal issues
Units of change
Interventions families:
French and Bell (1989) have purposed 13 families, or
types , of interventions in terms of activities :
diagnostic, Team building, intergroup, survey feedback,
education and training, techno structural change, survey
feedback, education and training etc
3 dimensions of culture that need to be considered
while making decisions about O.D intervention
strategy
• Ambiguity Tolerance
• Risk taking capacity
• Openness
Motivation
The term motivation has its own origin in the
Latin word “mover” which means to move. Thus,
motivation stands for movement. According to
Scott, “Motivation is a process of stimulating
people to action to accomplish desired goals”.
Motivation has three distinct features
• It results from a felt need
• It is goal directed
• It persist until the satisfaction of a need state
occurs.
Defining Motivation
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries
Introduction (Cont.)
Motivation
is the
psychological
process
that
leads to
Choice of
behavior
that
results in Some level
of job
performance
The Motivation-Behavior-Job Performance Sequence
Types of motivation
• Intrinsic motivation refers to motivation that is driven by an interest
or enjoyment in the task itself, and exists within the individual rather
than relying on any external pressure. Intrinsic Motivation is based on
taking pleasure in an activity rather working towards an external
reward. Intrinsic motivation has been studied
by social and educational psychologists since the early 1970s.
Students who are intrinsically motivated are more likely to engage in
the task willingly as well as work to improve their skills, which will
increase their capabilities.
• Extrinsic motivation refers to the performance of an
activity in order to attain an outcome, which then
contradicts intrinsic motivation. Extrinsic motivation
comes from outside of the individual. Common
extrinsic motivations are rewards like money and
grades, coercion and threat of punishment.
Competition is in general extrinsic because it
encourages the performer to win and beat others, not
to enjoy the intrinsic rewards of the activity. A crowd
cheering on the individual and trophies are also
extrinsic incentives.
Theories of motivation
Content theories
 Maslow’s need hierarchy theory
 Herzberg two factor theory
 Alderfer’s ERG and Achivement motivational theory
Process Theories
 Vroom’s Expectancy
model00000000000000000000000
 Adam’s Equity Theory
 Porters performance and satisfaction model
Physiological
Safety
Belongingness
and love (Social needs)
Esteem (Ego)
Self-
actualization
Maslow’s Hierarchy of Needs
Maslow’s Hierarchy
of Needs Theory
• Five groups of basic needs
• Healthy adults try to satisfy these needs
• So basic that they motivate behavior in many
cultures
• Chronic frustration of needs can lead to
psychopathological results
Maslow’s Hierarchy
of Needs Theory
• Five groups of basic needs
• Healthy adults try to satisfy these needs
• So basic that they motivate behavior in many
cultures
• Chronic frustration of needs can lead to
psychopathological results
Maslow’s Hierarchy
of Needs Theory (Cont.)
• Physiological needs: basic requirements of
the human body; food, water, sleep etc
• Safety needs: desires of a person to be
protected from physical and economic harm
• Belongingness and love needs (social): desire
to give and receive affection; be in the
company of others
Maslow’s Hierarchy
of Needs Theory (Cont.)
• Esteem needs: self-confidence and sense of
self-worth
– Esteem from others: valuation of self from other
people
– Self-esteem: feeling of self-confidence and self-
respect
• Self-actualization needs: desire for self-
fulfillment
Maslow: “. . . the desire to become more and more
what one is, to become everything that one is
capable of becoming.”
Criticism
• It is difficult to interpret and operationalize the
concept of need hierarchy.
• This model is based on relatively small subjects.
• The need classification model is artificial and
arbitrary which cannot be given in five step hierarchy.
• The same need will not lead to the same response in
all the individuals.
• The concept of need is introspective in nature which
cannot be tested objectively.
• Individuals differ in the relative intensity of their
various needs.
Two factor Theory
The two factor theory was proposed by
Frederick Herzberg. This theory is also known
as the motivation-hygiene Theory. According
to this theory motivation depends upon two
factors- motivators and Hygiene factors.
Hygiene factors – Herzberg said that the
presence of these basic factors might not be a
guarantee of satisfaction but absence can
cause dissatisfaction.
Hygiene factors
• Rules and policies
• Supervision
• Salary,
• Security
• Working conditions
Motivators
 Achievement
 Advancement
 Autonomy (independence or freedom)
 Challenge
 Feed back
 Responsibility
McClelland’s Achievement Motivation
Theory
• McClelland and colleagues studied the
behavioral effects of three needs
– Need for Achievement
– Need for Power
– Need for Affiliation
McClelland’s Achievement Motivation
Theory (Cont.)
• Strong need for achievement people
– Take responsibility for results of behavior
– Willing to take calculated risks
– Set moderate achievement goals
– Prefer to set performance standards for
themselves
– Prefer nonroutine tasks to routine assignments
– Welcome feedback about how well they are doing
McClelland’s Achievement Motivation
Theory (Cont.)
• Strong Need for Affiliation people
– Focuses on "establishing, maintaining, and
restoring positive affective relations with others"
– Want close, warm interpersonal relationships
– Seek the approval of others, especially those
about whom they care
– Like other people, want other people to like them,
and want to be in the company of others
McClelland’s Achievement Motivation
Theory (Cont.)
• Need for achievement and behavior
– Money: important to both high and low
achievers, but for different reasons
• High achiever wants concrete feedback about
performance
• Making a profit, or receiving a bonus, is a statement
about success or failure
• Symbol of success and feedback about job performance
E.R.G. Theory
• A variation of Maslow's hierarchy of needs
• Three groups of needs
–Existence needs: physical and material
wants
–Relatedness needs: desires for
interpersonal relationships
–Growth needs: desires to be creative and
productive; to use one’s skills
E.R.G. Theory (Cont.)
Physiological
Safety
Belongingness
and love
Esteem
Self-
actualization
Relationship of
Maslow’s hierarchy
to E.R.G. Theory.
Maslow
hierarchy
E.R.G.
Theory
Relatedness needs
Existence needs
Growth needs
E.R.G. Theory (Cont.)
• Both similar to and different from Maslow's
need hierarchy
• Satisfied and unsatisfied needs operate in
much the same way
• Movement upward is the same
• Movement downward is new
See text book Figure 7.2
Process Theories
• Expectancy theory: The expectancy theory is also known as
instrumentality theory, path goal theory and valence- instrumentality
theory. The theory was develop by Victor H.vroom. According to this
theory, work effort in an organization is directed towards behaviours
that people believe will lead to desire outcomes. In other words we
can say that people adopt such behaviour in their work effort which
give desired outcomes.
Vroom has mathematical equation
MF= V*I*E
Where ,
MF= motivational force
V= valence
I= instrumentality
E= Expectancy
• The expectancy theory says that individuals have
different sets of goals and can be motivated if they
believe that:
• There is a positive correlation between efforts and
performance,
• Favourable performance will result in a desirable
reward,
• The reward will satisfy an important need,
• The desire to satisfy the need is strong enough to make
the effort worthwhile.
Expectancy: It is believed that a particular level of effort will be
followed by a particular level of performance. It means
expectancy = effort to perform. We can say it for example that
you can work hard if you believe that it will lead to success.
Instrumentality: It is the relationship between first level
outcomes and second level outcomes. In other words , it is the
perception of an individual that first level of outcomes are
associated with second level outcomes. For eg: If you passed
entrance test of iim exam you will get admissions in IIM. If
there is no realtion between two , their instrumentality will be
zero.
Valence: It is the preference of individual for a particular
second level outcome. Valence can have values ranging from
negative to positive. An outcome is positive when it is
preferred and negative when it is not preferred.
Assumptions
• A combination of forces in the individual and the
environment determines behaviour.
• Individual decides their own behavior in the
organizations.
• Different individuals have different needs and
goals. So they expect different rewards for their
work.
• On the basis of their perception of which
behavior will lead to the desired outcome they
decide about alternatives.
Types of change
Structural change
Technological change
Automation change
Workforce change
Needs for change
• External environment such as change in
market place, government laws and regulation
technology, labour market and economical
changes
• Internal environment such as changes in
organizational strategies, workforce changes,
new equipments and change in employeed
attitue.
Factors of change
• Competitive factors:
Every organization must make
changes to attempt to match or exceed its
competitors on at least one of the following
dimensions.
 Efficiency
 Quality
 innovation
 customer responsiveness
• Economic, political and global forces affect
organizations by forcing them to change the
process they adopt for producing good and
services. They also affect the choice of location
for the production.
Need to change organization structure due to
following
 To allow expansion in foreign market.
 To adopt different types of national culture.
 To help expatriates in adapting to the cultural
values of the place where they are located.
Resistance to change
In any organization where change is introduced ,
people and group react in different ways.
There can be great support or active
resistance too. If people have don’t have
enough information regarding the process and
impact of change, people resist change.
Sources of Resistance to Change
• Ignorance: a failure to understand the
situation or the problem
• Mistrust: motives for change are
considered suspicious
• Disbelief: a feeling that the way
forward will not work
• “Power-Cut”: a fear that sources of
influence and control will be eroded.
Sources of Resistance to Change
• Loss: change has unacceptable personal
costs
• Inadequacy: the benefits from the change
are not seen as sufficient
• Anxiety: fear of being unable to cope with
the new situation.
Sources of Resistance to Change
• Comparison: the way forward is disliked
because an alternative is preferred
• Demolition: change threatens the
destruction of existing social networks.
Symptoms of Resistance
• Hostility and Aggression
• An individual may develop apathy towards his
work
• Absenteeism and tardiness
• Development of Anxiety and Tension
• Slowdown or strikes
Strategies to overcome Resistance
• Selective perception
• Lack of information
• Fear of unknown
• Habit
• Resentment towards the manager
Strategies
• Education and communication
• Participation and involvement
• Facilitation and support
• Negotiation and agreement
• Manipulation and co-optation
• Explicit and Implicit coercion
Process of change
• Initiation
• Motivation
• Diagnosis
• Collection of information
• Evaluation of Alternatives
• Action Proposal
• Implementation
• Stabilization
Lewin’s 3 stage model of change
O.D
O.D is a technique that helps individual to learn
to change their attitude and behavior, so that
they can function effectively both, as
individual as organization members.
It is said that O.D is a technique which helps
two interdependent groups explore their
perceptions and relations in order to improve
their work interactions.
O.D encourages some specific values
• Openness: Facing the problem instead of avoiding it.
• Confrontation: searching for the solution of the
problem and developing good relations among
employees.
• Trust
• Authenticity: Dependency on each other
• Proactive: Taking initiative,
• Autonomy: Strength of a person to collaborate with
others without feeling inferior.
• Collaboration: an activity where people prefer to
work in group rather than working alone
Techniques of O.D
• Counseling
• Sensitivity Training
• Process Consultation
• Team building
• Inter group training
• Organizational mirroring
• Organizational confrontation meeting
O.D Interventions
Organizational development is a difficult and a complicated
issue. If not handled properly it can have disastrous results.
While planning O.D therefore, we need to introduce very
specific interventions to facilitate.
Several experts have suggested classification system for
these interventions.
O.D cube: Schmuck and miles (1971) proposed a 9*6*8 cube,
suggesting the following dimensions.
Diagnosed problem
Focus of attention
Mode of intervention
Consul Cube
Blake and mouton (1976) proposed a comprehensive
system covering a large number of interventions at
different level. They classified interventions using three
dimensions to make it cube (5*4*5)
Consulting approach
Focal issues
Units of change
Interventions families:
French and Bell (1989) have purposed 13 families, or
types , of interventions in terms of activities :
diagnostic, Team building, intergroup, survey feedback,
education and training, techno structural change, survey
feedback, education and training etc
3 dimensions of culture that need to be
considered while making decisions about O.D
intervention strategy
• Ambiguity Tolerance
• Risk taking capacity
• Openness
Organization conflict
Conflict is a natural disagreement resulting from
individuals or groups that differ in attitudes,
beliefs,values or needs. It can also originate from
past rivalries and personality differences.
Definition: Conflict is a perceived differences of
values between two or more parties that result in
mutual opposition.
Conflict can be defined as a process in which one
party perceives that another party has negatively
affected, or is about to negatively affect,some
thing that the first party cares about.
17-175
The Effect of Conflict on Organization Performance
Figure 17.1
17-176
Organizational Conflict
• Organizational Conflict
– The discord that arises when goals, interests or
values of different individuals or groups are
incompatible
and those people
block or thwart
each other’s efforts
to achieve their
objectives.
Features of Conflict
• Conflict is incompatible( certain to disagree) in
nature: It occurs when two or more people have
mutually exclusive to be achieved.
• Conflict arises due to scarcity of resources.
• Conflict can be verbal or non verbal behaviour.
• Conflict is deliberate(intentionally).
• It is based on perception.
Healthy conflict can lead to:
• Growth and innovation
• New ways of thinking
• Additional management options
• High productivity
Level of conflict
• Latent conflict: In every organizations conflict begins with
latent conflict. Conflict can created by any unexpected incident
such as change in direction of the organization or over loaded
employee being given another project, or promise of salary
increase which was not implemented.
• Perceived conflict: At this level the conflict arises as a
misunderstanding between two parties. This misunderstanding
can be resolved by improved communication
• Felt conflict: The parties in conflict develop negative feelings
about each other.
• Manifest conflict: One party decides how to react to or deal
with the party that it sees as the source of the conflict, and
both parties try to hurt each other and thwart( to hinder ) each
other’s goals.
• Conflict outcome: Every conflict episode leaves a conflict
aftermath that affects the way both parties perceive and
respond to a future conflict episode.
16
Sources of Organizational Conflict
• Differentiation
– Differences in functional
orientation
– Status inconsistencies
• Task relationships
– Overlapping authority
– Task interdependence
– Incompatible evaluation
systems
• Scarcity of resources
14
Sources of conflict
1. Interdependence
 Pooled interdependence
 sequential interdependence
 Reciprocal interdependence
2. Scarcity of resources
3. Specialization
4. Competitive incentive and reward system
5. Incompatible personalities
6. Lack of clarity of roles and responsibility
7. Differences of perception, value and attitude
8. Poor communication
9. Cultural barriers
Types of conflict
1. Intrapersonal conflicts
2. Interpersonal conflict
3. Intra group conflict
4. inter group conflict
5. inter organizational conflict
Conflict Management approaches
• Encouraging individualistic thinking
• Increasing individual competition by rewarding
individual performance
• Providing all good and bad news to the
employees
• Creating role conflict between perceived and
actual role
• Bringing change in the organizational structure
• Restricting the work unit
• Bringing outsiders to the organization
Conflict managemet
• Competing
• Collaborating
• Avoiding
• Accomodating
• comporising
Collaborating
Fundamental premise: Teamwork and cooperation help everyone achieve
their goals while also maintaining relationships
Strategic philosophy: The process of working through differences `will
lead to creative solutions that will satisfy both parties' concerns
When to use:
When there is a high level of trust
When you don't want to have full responsibility
When you want others to also have "ownership" of solutions
When the people involved are willing to change their thinking as more
information is found and new options are suggested
When you need to work through animosity(strong dislike and hatred) and
hard feelings
Drawbacks:
The process takes lots of time and energy
Some may take advantage of other people's trust and openness
Compromising:
Fundamental premise: Winning something while losing a little is OK
Strategic philosophy: Both ends are placed against the middle in an
attempt to serve the "common good" while ensuring each person
can maintain something of their original position
When to use:
When people of equal status are equally committed to goals
When time can be saved by reaching intermediate settlements on
individual parts of complex issues
When goals are moderately important
Drawbacks:
Important values and long-term objectives can be derailed( bring a
sudden hault) in the process
May not work if initial demands are too great
Accommodating :
This style is less assertive and highly
cooperative. People try to be generous and
sacrificing. This style can be very useful for the
temporary solution of conflict in short run. People
using this style may be perceived as submissive and
weak persons. This style is used in a situation when
an issue is important for other person, and you want
the other person to learn from his mistakes.
Competing :
This style is highly assertive and
uncooperative. This style is power oriented and
includes dominance. Those who believe in this style
of conflict resolution rely heavily on punishment to
have control over others. People use fight, argument
even physical aggression to achieve their goal. Here
one party wins and others looses. This style is popular
in a few situations such as only on emergencies, or
when there is a need to protect yourself and others
from taking undue advantage.
Avoiding:
Fundamental premise: This isn't the right time or place to address this issue
Strategic philosophy: Avoids conflict by withdrawing, sidestepping, or
postponing
When to use:
When the conflict is small and relationships are at stake
When you're counting to ten to cool off
When more important issues are pressing and you feel you don't have time to
deal with this particular one
When you have no power and you see no chance of getting your concerns met
When you are too emotionally involved and others around you can solve the
conflict more successfully
When more information is needed
Drawbacks:
Important decisions may be made by default
Postponing may make matters worse
17-191
Negotiation
• Negotiation
– Parties to a conflict try to come up with a solution acceptable
to themselves by considering various alternative ways to
allocate resources to each other
Methods/ steps
– Unfreezing
– Being open
– Empathy for others
– Searching for common goal
– Generating alternatives
– Responding to alternatives
– Searching for solutions
– Breaking the silence
– Accepting a solution with the group
Leadership
According to Koontz and O’Donnell, “Leadership is the
process of influencing others towards the
accomplishment of the goal. It is the ability of a
manager to induce subordinate to work with zeal and
confidence.
According to Louis A. Allen, “ A leader is one who
guides and directs other people. He gives the efforts
of his followers a direction and purpose, by
influencing their behavior.
Definition:
Characterstics of leadership
1. Leadership is a process of influence.
2. Leadership is related to the situation.
3. Leadership is a function of stimulation
4. Leadership gives an experience of helping others in
attaining their common objective.
5. There should be existence of followers.
The Characteristic of an Effective
Leader…
• Inspiring
• Has a vision, mission and
goal
• Integrity & diplomacy: a quality
Of being honest.
• Motivational
• Communication & listening skills
• Coaching skills
• Decisive: having a power or quality of deciding
• A "can do, get it done" attitude
Leaders vs. Managers
 LEADERS:
 innovate
 focus on people
 inspire trust
 have a long-range view
 ask what and why
 have eyes on horizon
 originate
 challenge status quo
 do the right thing
 MANAGERS:
 administrate
 focus on systems and
structures
 rely on control
 have a short-range view
 ask how and when
 have eyes on bottom
line
 initiate
 accept status quo
 do things right
Styles of Leadership
1. Autocratic Style
2. Participative
3. Laissez- fair style
Autocratic style
I want both of you to. . .
Autocratic Style
This style is also known as authoritarian style.
Autocratic leaders believes in strict command.
He gives ordered which must be obeyed by his
subordinates.
High degree of dependency on the leader
Can create de-motivation and alienation
of staff
May be valuable in some types of business where
decisions need to be made quickly and decisively
Advantages
Quick decision making
Leader can have direct control over group
It can be applied to group activity.
One decision making authority
Disadvantages
Takes all decision which is very demotivating for the
subordinates.
Misunderstanding of the people due to one way
communication.
People get less chance of growth of their potentials.
High dependency of leader for everything and people
start avoiding responsibility
Types of Autocratic style
• Strict Autocratic: The leaders of this style believes in
passing the orders. Communication is downward and
he uses fear and threats.
• Benevolent Autocratic: In this leaders uses reward
and punishment to work effectively. Limited upward
communication.
• Manipulative autocratic: The leaders shows that the
suggestion of the employees are welcomed but he
takes his own decisions. In this leadership style, there
is no motivation for the employees.
Participative style
Let's work together to solve this. . .
Participative Style
 It is also known as democratic style.
 In this style, the decision making power is dispersed among
the group members.
 Policies are worked out in group discussions and with the
acceptance of the group.
 Praises or blames are group factor.
 Democratic leadership style means facilitating the
conversation, encouraging people to share their ideas, and then
synthesizing all the available information into the best possible
decision.
 Ideas move freely amongst the group and are discussed openly.
Advantages
 In this style, employees feel motivated and satisfied,
which increases the productivity.
 The morale of group is high
 Group decisions making reduces conflicts
Disadvantages
Subordinate can use particpative leadership
as a tool of manipulation.
Top level decision is making difficult.
There can be chaos and bias.
Laissez-fair style
You two take care of the problem while I go. .
Laissez-faire style
• In this style, the leader allows the employees to make
the decisions
• This leadership style is also known as free-rein
leadership.
• This leader acts as suprevisor.
• Generally, self managed team his this kind of
leadership style.
• A free rein leader doesn’t lead but leave the groups
entirely to itself.
• Establish own goals and works out its problems on its
own.
Comparison of Authoritarian,
Democratic, & Laissez-Faire
Authoritar. Democrat. Laissez-F
Degree of
freedom
Little Moderate Much
Degree of control
High Moderate None
Decsision making
By leader Leader&
group
Group or
no one
Leader activity level
High High Minimal
Assumption of
Responsibility Leader Shared Abdicated
Output of group
High&
good qual.
High &
creative
Variable-
Poor?
Theories of leadership
1) Great man theory leadership
2) Trait theory
3) Behavioral Theory
a) Ohio state studies
b) Managerial grid theory
4) Situational Theory
a) Fiddlers' Contingency theory
b) Situational Leadership model
c) Path goal theory
1) Greatman theory of leadership
•This theory was formulated in the year 1950 according to
which leaders are born not made.
•This theory says that leaders have certain inherent traits which
make them leaders and to be a successful leader, it is necessary
to have inborn leadership qualities.
•This theory says that leadership is god gifted and talks about
certain qualities such as intelligence, charm, courage,
persuasiveness, commanding personality aggresiveness etc.
•In this theory we can take the example of napolean, who is
considered as a born leader.
The Great Man Theory
Early explanations of leadership studied the
“traits” of great leaders
 “Great man” theories (Gandhi, Lincoln, Napoleon)
 Belief that people were born with these traits and only
the great people possessed them
Personal qualities of leaders
 Personality traits, such as extraversion,
conscientiousness, and openness.
 Intelligence and emotional intelligence (degree of
social skill).
 Expertise, skill, and experience.
The Great Man Theory
© 2005 Prentice Hall Inc. All
rights reserved.
11–213
2) Trait Theories
Leadership Traits:
• Ambition and energy
• The desire to lead
• Honest and integrity
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant knowledge
Traits Theories of
Leadership
Theories that consider
personality, social,
physical, or intellectual
traits to differentiate
leaders from nonleaders.
© 2005 Prentice Hall Inc. All
rights reserved.
11–214
Trait Theories
Limitations:
• No universal traits found that predict leadership in
all situations.
• Traits predict behavior better in “weak” than
“strong” situations.
• Unclear evidence of the cause and effect of
relationship of leadership and traits.
• Better predictor of the appearance of leadership
than distinguishing effective and ineffective
leaders.
Trait theory
•This theory is based on great man theory, in other words this
theory believes that leadership is the result of certain traits.
•This theory says that leaders differ from their followers because
of certain generally acceptable traits.
•In this theory we can take the example of Ratan Tata, Narayan
Murthy, Steve Jobs, Nelson Mandela etc are well known as
leaders because of their personal qualities and characteristics.
•It can also be said that Mahatma Gandhi had not received any
formal training for developing leadership skills, then also he was
a charismatic leader.
•In the year 1930-1940 many researches were conducted to find
out the factor which are responsible for making a leader and it
was said that if a person possesses particular traits he can be
come a leader.
•Researchers have identified almost 40 traits which are
important to have in you if you want to become a leader.
Some of these traits are:
Traits
Adaptable to situation
Assertive
Cooperative
Alert to social environment
Tolerant of stress
Willing to assume responsibility
Skills
Clever
Conceptually skilled
Diplomatic and tactful
Fluent in speaking
Persuasive
Socially skilled
3) Behavioural Theory
• Imply that leaders can be trained – focus on the way
of doing things
– Structure based behavioural theories – focus on the leader
instituting structures – task orientated
– Relationship based behavioural theories – focus on the
development and maintenance of relationships – process
orientated
© 2005 Prentice Hall Inc. All
rights reserved.
11–218
Behavioral Theories
• Trait theory:
Leaders are born, not made.
• Behavioral theory:
Leadership traits can be taught.
Behavioral Theories of Leadership
Theories proposing that specific behaviors
differentiate leaders from nonleaders.
a) Ohio State Studies
The Ohio State studies identified various independent dimensions of a
leader’s behaviour.
After analyzing the leadership behaviour in various situations, they
narrowed down the list to two leadership behaviours
Initiating Structure
The extent to which a leader is likely to
define and structure his or her role and
those of sub-ordinates in the search for
goal attainment.
Consideration
The extent to which a leader is likely to have job
relationships characterized by mutual trust, respect for
subordinate’s ideas, and regard for their feelings.
b) The Managerial Grid
• Created and developed by Robert Blake and Jane S. Mouton.
• Considered as most significant and practical contribution to
organization development and effective management
principles.
• As shown in the next slide, the managerial grid theory is a
presentation of two dimensional view of leadership style.
• These two dimensions are
– Concern for people
– Concern for production
The X-axis of the grid represents the Leaders concern for production
and the Y-axis represents the leaders concern for people.
It is expressed a nine point scale. The minimum concern is represented
by number 9 and the max. is concerned by number 9.
• Managerial Grid
– Appraises leadership styles using two dimensions:
• Concern for people
• Concern for production
– Places managerial styles in five categories:
• Impoverished management
• Task management
• Middle-of-the-road management
• Country club management
• Team management
© 2005 Prentice Hall Inc. All
rights reserved.
11–222
The Managerial
Grid
(Blake and Mouton)
E X H I B I T
11–1
© 2007 Prentice Hall, Inc. All
rights reserved.
17–223
Exhibit 17–3
The
Managerial
Grid
Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and
Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.
4) Situational Theory
The Situational theories emphasizes that there is no specific style of
leadership; it is the situation which decides whether a person is a leader
or not . In other words, leadership is strongly affected by the situation in
which a leader emerges and in which he works.
The situational theory says that success of any organization depends
upon the leadership of that organization. So, the leader should be
flexible enough to understand the situation and his followers.
The emphasis is on the type of situation, behaviour of the leader and
the followers. The leader is the means of achieving the goals of the
group and the members.
In other words, we can say that according to this theory a leader
becomes a leader due to the various situational factors, and the
interaction between the leader and the group member.
4a) Fiedler’s Contingency Approaches
Leader member relations
Task structure
Position power
Fiedler’s contingency model: a model
designed to diagnose whether a leader is
task-oriented or relationship-oriented and
match leader style to the situation
Contingency Theory (Fiedler 1978)
• Leadership effectiveness is determined by the
interaction between the leader's personal
characteristics and the characteristics of the
situation
• Leaders are classified as person-oriented or
task-oriented (which type will be more effective
depends on the leader's degree of situational
control)
• Control depends on relationship between
leader/followers, the degree of task structure,
and the leader's authority (position power)
Measuring
Motivational
Style
Least Preferred Coworker
Scale, or LPC scale.
“Think of the person whom
you least like to work with”
The LPC Scale
LPC Scale
• He or she may be someone you work with now
or someone you knew in the past. This coworker
does not have to be the person you like least but
should be the person with whom you had the most
difficulty in getting a job done.
 High LPC leaders
most effective in
“moderately” favorable
situations
 Low LPC leaders
most effective in very
favorable or very
unfavorable situations
In moderate situations,
correlation between LPC &
Effectiveness is POSITIVE
In highly favorable/
unfavorable situations,
correlation between LPC &
Effectiveness is NEGATIVE
Fiedler’s Contingency Theory
LPC Scale
Contingency Theory (Fiedler 1978)
• The task-oriented leader will be effective in
extremely favorable or extremely
unfavorable situations
• The person-oriented leader will be more
effective in moderately favorable situations
• Criticisms include most of research was in
the lab
© 2007 Prentice Hall, Inc. All
rights reserved.
17–231
Contingency Theories of Leadership
• The Fiedler Model (cont’d)
– Proposes that effective group performance depends
upon the proper match between the leader’s style of
interacting with followers and the degree to which the
situation allows the leader to control and influence.
– Assumptions:
• A certain leadership style should be most effective in
different types of situations.
• Leaders do not readily change leadership styles.
– Matching the leader to the situation or changing the situation to
make it favorable to the leader is required.
© 2007 Prentice Hall, Inc. All
rights reserved.
17–232
Contingency Theories… (cont’d)
• The Fiedler Model (cont’d)
– Least-preferred co-worker (LPC) questionnaire
• Determines leadership style by measuring responses to 18
pairs of contrasting adjectives.
– High score: a relationship-oriented leadership style
– Low score: a task-oriented leadership style
– Situational factors in matching leader to the situation:
• Leader-member relations
• Task structure
• Position power
© 2007 Prentice Hall, Inc. All
rights reserved.
17–233
Exhibit 17–4 Findings of the Fiedler Model
4b) Situational Leadership model
On the basis of relationship behaviour and task behaviour, four leadership style were suggested.
In the situational model, a style of the leadership is matched with the maturity of the followers.
The maturity of the follower is decided by his ability to take responsibility, his education,
willingness to do a task and capacity to set high but attainable goals.
Task behaviour is all about the leaders organizing capability and coordinating ability so that a
task can be accomplished .
Situational Theory - Hersey and
Blanchard (1978)
 Hersey and Blanchard’s extension of the Leadership Grid focusing on the
characteristics of followers as the important element of the situation, and
consequently, of determining effective leader behavior.
 Effectiveness depends on the leader's task and relationship
behaviors.
 The Leadership Grid: Blake & Mouton assume that people vary in
their concern for production and in their concern for people and that
individuals who are high on both dimensions (9,9) are the best
leaders.
Hersey and Blanchard’s Situational Theory of
Leadership
Follower Characteristics Appropriate Leader Style
Low readiness level
Moderate readiness level
High readiness level
Very high readiness level
Telling (high task-low relationship)
Selling (high task-high relationship)
Participating (low task-high rel.)
Delegating (low task-low relationship)
4d) Path Goal theory
Path-Goal Theory (House 1971)
• Path-goal theory focuses on the kinds of leader
behaviors that allow subordinates to achieve
personal and organizational goals
• Four leadership styles can be adopted to facilitate
employee attainment of goals
– Directive
– Supportive
– Participative
– Achievement-oriented
Path-Goal Situations and Preferred
Leader Behaviors
Situation Leader Behavior Impact on Follower Outcome
Supportive
Leadership
Directive
Leadership
Achievement-
Oriented
Leadership
Participative
Leadership
Followers lack
self-confidence
Ambiguous job
Lack of job
challenge
Incorrect
reward
Increases confidence to
achieve work outcomes
Clarifies path to reward
Set and strive for high
goals
Clarifies followers’
needs to change
rewards
Increased
effort;
improved
satisfaction
and
performance
Path-Goal Theory (House 1971)
• The most effective leadership style depends on
the situation and the characteristics of the
subordinates
• Requires leader flexibility
• Directive style works best with unskilled workers
• Supportive leadership works best with highly
skilled workers
• Theory is difficult to test and operationalize
1. Charismatic Leadership
2. Transactional Leadership
3. Transformational Leadership
4. Visionary leadership
Contemporary Business Leaders
Charismatic Leadership
• Charismatic leadership is a process of
influencing the followers so that they can
admire their actions.
• They are dynamic and risk takers.
• They are confidence and expert.
virgin groups chairman Sir Richard branson
Steve job cofounder of Apple company.
Transactional Leadership
Transcational leaders are ones who inspire and direct
their followers on the path of established goals. They
guide and motivate their followers in the direction of
goals by clarifying role and task requirements. They
monitor the work of the subordinates and use
corrective measures if requireds.
Tvs group of Venu Srinivasan
Anil Ambani of Ambani group
Transformational Leadership
It is the demand of modern organization or modern
business world. They are the ones who try to
transform individuals to extract their potential and
develop them to become better leaders. They inspire
and motivate their followers to put in extra effort
towards attainment of goals. They guide followers by
providing a sense of respect, providing vision and
mission and showing trust among the employees.
Azim premji of Wipro
Ratan tata of Tata group
Visionary Leadership
This leadership style is take from the world
Vision. Visionary leaders are the ones who have
the ability to create and articulate a realistic,
credible and attractive vision of the future.
They emphasize the vision not only verbally
but also through action.
N.R murthy of infosys and subash chandra of Zee
group

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  • 2. What is communication process? “Transmission of a message from a sender to a receiver in an understandable manner.” • The communication process is a guide toward realizing effective communication. • Effective communication leads to understanding. Being presented by: Bilal Amjad
  • 3. Components of Communication • The communication process is made up of four key components. • Those components include encoding, medium of transmission, decoding, and feedback. Sender and Receiver are also a part of it. Being presented by: Bilal Amjad Sender Message Receiver Feedback
  • 4. Importance of understanding communication process • Communication is only successful when both the sender and the receiver understand the same information as a result of the communication. Importance of Communication in Business: • Effective communication is vital to all businesses. The communication process involves: "If I went back to college again, I'd concentrate on two areas: learning to write and to speak before an audience. Nothing in life is more important than the ability to communicate effectively." -- Gerald R. Ford
  • 5. Importance of understanding communication process - cont Importance of Communication in the Workplace • Communication is important in a workplace setting because people must interact with one another in ways that will get the job done quickly and effectively. "Communication is really all anyone ever gets paid for ultimately...and if you cannot effectively communicate...you will PAY...not get paid..." -- Doug Firebaugh Importance of Communication in Leadership • It is simply impossible to become a great leader without being a great communicator. "The art of communication is the language of leadership." — James Humes • Good Leaders, Good Communicators.
  • 6. Importance of understanding communication process -cont Significance of Communication in Relationships • Definitely, communication plays the main role in establishing relationships. Communication is important in relationships as it allows us to share interests, aspirations and concerns, to support each other, to organize our lives and make decisions, and to work together.
  • 7. Types of Communication • People communicate with each other in a number of ways that depend upon the message and its context in which it is being sent. Choice of communication channel and your style of communicating also affect communication. So, there are a variety of types of communication. • Types of communication based on the communication channels used are: 1. Verbal Communication 2. Nonverbal Communication
  • 8. Verbal Communication • Verbal communication refers to the form of communication in which message is transmitted verbally; communication is done by word of mouth and a piece of writing. Objective of every communication is to have people understand what we are trying to convey. In verbal communication remember the acronym KISS(keep it short and simple). • Verbal Communication is further divided into: 1. Oral Communication 2. Written Communication 1. Oral Communication In oral communication, Spoken words are used. It includes face-to-face conversations, speech, radio etc. 2. Written Communication In written communication, written signs or symbols are used to communicate. A written message may be printed or hand written.
  • 9. Non Verbal Communication • Nonverbal communication is the sending or receiving of wordless messages. We can say that communication other than oral and written, such as gesture, body language, posture, tone of voice or facial expressions, is called nonverbal communication. Nonverbal communication is all about the body language of speaker. • Nonverbal communication has the following three elements: 1. Appearance Speaker: clothing, hairstyle, neatness, use of cosmetics. Surrounding: room size, lighting, decorations, furnishings 2. Body Language facial expressions, gestures, postures 3. Sounds Voice Tone, Volume, Speech rate
  • 10. Principles of Effective Communication 1. Principle of clarity. 2. Principle of Objective 3. Principle of understanding the receiver 4. Principle of consistency 5. Principle of completeness 6. Principle of Feedback 7. Principle of time
  • 11. Barriers in Communication • Communicating is straightforward. What makes it complex, difficult, and frustrating are the barriers we put in the way. • Top Barriers : • EXPECTATIONS • AVOIDANCE • FIXING • SCAPEGOATING • PROBING • SPEAKING IN CODE • CONTROL • BLAMING • CONFLICT AVOIDANCE (CHAOS) • EXCLUSION • BOUNDARY OR BARRIER • Information overload • Trust and credibility • Time • Emotions • Message congruency Objective : thoughts and goals Subjective : feelings
  • 12. 7 C’s of Communication Completeness Conciseness consideration clarity concreteness courtesy correctness
  • 14. According to Koontz and O’Donnell, “Leadership is the process of influencing others towards the accomplishment of the goal. It is the ability of a manager to induce subordinate to work with zeal and confidence. According to Louis A. Allen, “ A leader is one who guides and directs other people. He gives the efforts of his followers a direction and purpose, by influencing their behavior. Definition:
  • 15. Characterstics of leadership 1. Leadership is a process of influence. 2. Leadership is related to the situation. 3. Leadership is a function of stimulation 4. Leadership gives an experience of helping others in attaining their common objective. 5. There should be existence of followers.
  • 16. The Characteristic of an Effective Leader… • Inspiring • Has a vision, mission and goal • Integrity & diplomacy: a quality Of being honest. • Motivational • Communication & listening skills • Coaching skills • Decisive: having a power or quality of
  • 17. Leaders vs. Managers  LEADERS:  innovate  focus on people  inspire trust  have a long-range view  ask what and why  have eyes on horizon  originate  challenge status quo  do the right thing  MANAGERS:  administrate  focus on systems and structures  rely on control  have a short-range view  ask how and when  have eyes on bottom line  initiate  accept status quo  do things right
  • 18. Styles of Leadership 1. Autocratic Style 2. Participative 3. Laissez- fair style
  • 19. Autocratic style I want both of you to. . .
  • 20. Autocratic Style This style is also known as authoritarian style. Autocratic leaders believes in strict command. He gives ordered which must be obeyed by his subordinates. High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively
  • 21. Advantages Quick decision making Leader can have direct control over group It can be applied to group activity. One decision making authority Disadvantages Takes all decision which is very demotivating for the subordinates. Misunderstanding of the people due to one way communication. People get less chance of growth of their potentials. High dependency of leader for everything and people start avoiding responsibility
  • 22. Types of Autocratic style • Strict Autocratic: The leaders of this style believes in passing the orders. Communication is downward and he uses fear and threats. • Benevolent Autocratic: In this leaders uses reward and punishment to work effectively. Limited upward communication. • Manipulative autocratic: The leaders shows that the suggestion of the employees are welcomed but he takes his own decisions. In this leadership style, there is no motivation for
  • 23. Participative style Let's work together to solve this. . .
  • 24. Participative Style  It is also known as democratic style.  In this style, the decision making power is dispersed among the group members.  Policies are worked out in group discussions and with the acceptance of the group.  Praises or blames are group factor.  Democratic leadership style means facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision.  Ideas move freely amongst the group and are discussed openly.
  • 25. Advantages  In this style, employees feel motivated and satisfied, which increases the productivity. The morale of group is high Group decisions making reduces conflicts Disadvantages Subordinate can use particpative leadership as a tool of manipulation. Top level decision is making difficult. There can be chaos and bias.
  • 26. Laissez-fair style You two take care of the problem while I go. .
  • 27. Laissez-faire style • In this style, the leader allows the employees to make the decisions • This leadership style is also known as free-rein leadership. • This leader acts as suprevisor. • Generally, self managed team his this kind of leadership style. • A free rein leader doesn’t lead but leave the groups entirely to itself.
  • 28.
  • 29. Comparison of Authoritarian, Democratic, & Laissez-Faire Authoritar. Democrat. Laissez-F Degree of freedom Little Moderate Much Degree of control High Moderate None Decsision making By leader Leader& group Group or no one Leader activity level High High Minimal Assumption of Responsibility Leader Shared Abdicated Output of group High& good qual. High & creative Variable- Poor?
  • 30. Theories of leadership 1) Great man theory leadership 2) Trait theory 3) Behavioral Theory a) Ohio state studies b) Managerial grid theory 4) Situational Theory a) Fiddlers' Contingency theory b) Situational Leadership model c) Path goal theory
  • 31. 1) Greatman theory of leadership •This theory was formulated in the year 1950 according to which leaders are born not made. •This theory says that leaders have certain inherent traits which make them leaders and to be a successful leader, it is necessary to have inborn leadership qualities. •This theory says that leadership is god gifted and talks about certain qualities such as intelligence, charm, courage, persuasiveness, commanding personality aggresiveness etc. •In this theory we can take the example of napolean, who is considered as a born leader.
  • 32. The Great Man Theory Early explanations of leadership studied the “traits” of great leaders  “Great man” theories (Gandhi, Lincoln, Napoleon)  Belief that people were born with these traits and only the great people possessed them
  • 33. Personal qualities of leaders  Personality traits, such as extraversion, conscientiousness, and openness.  Intelligence and emotional intelligence (degree of social skill).  Expertise, skill, and experience. The Great Man Theory
  • 34. © 2005 Prentice Hall Inc. All rights reserved. 11–34 2) Trait Theories Leadership Traits: • Ambition and energy • The desire to lead • Honest and integrity • Self-confidence • Intelligence • High self-monitoring • Job-relevant knowledge Traits Theories of Leadership Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.
  • 35. © 2005 Prentice Hall Inc. All rights reserved. 11–35 Trait Theories Limitations: • No universal traits found that predict leadership in all situations. • Traits predict behavior better in “weak” than “strong” situations. • Unclear evidence of the cause and effect of relationship of leadership and traits. • Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.
  • 36. Trait theory •This theory is based on great man theory, in other words this theory believes that leadership is the result of certain traits. •This theory says that leaders differ from their followers because of certain generally acceptable traits. •In this theory we can take the example of Ratan Tata, Narayan Murthy, Steve Jobs, Nelson Mandela etc are well known as leaders because of their personal qualities and characteristics. •It can also be said that Mahatma Gandhi had not received any formal training for developing leadership skills, then also he was a charismatic leader.
  • 37. •In the year 1930-1940 many researches were conducted to find out the factor which are responsible for making a leader and it was said that if a person possesses particular traits he can be come a leader. •Researchers have identified almost 40 traits which are important to have in you if you want to become a leader. Some of these traits are: Traits Adaptable to situation Assertive Cooperative Alert to social environment Tolerant of stress Willing to assume responsibility Skills Clever Conceptually skilled Diplomatic and tactful Fluent in speaking Persuasive Socially skilled
  • 38. 3) Behavioural Theory • Imply that leaders can be trained – focus on the way of doing things – Structure based behavioural theories – focus on the leader instituting structures – task orientated – Relationship based behavioural theories – focus on the development and maintenance of relationships – process orientated
  • 39. © 2005 Prentice Hall Inc. All rights reserved. 11–39 Behavioral Theories • Trait theory: Leaders are born, not made. • Behavioral theory: Leadership traits can be taught. Behavioral Theories of Leadership Theories proposing that specific behaviors differentiate leaders from nonleaders.
  • 40. a) Ohio State Studies The Ohio State studies identified various independent dimensions of a leader’s behaviour. After analyzing the leadership behaviour in various situations, they narrowed down the list to two leadership behaviours Initiating Structure The extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in the search for goal attainment. Consideration The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate’s ideas, and regard for their feelings.
  • 41. b) The Managerial Grid • Created and developed by Robert Blake and Jane S. Mouton. • Considered as most significant and practical contribution to organization development and effective management principles. • As shown in the next slide, the managerial grid theory is a presentation of two dimensional view of leadership style. • These two dimensions are – Concern for people – Concern for production The X-axis of the grid represents the Leaders concern for production and the Y-axis represents the leaders concern for people. It is expressed a nine point scale. The minimum concern is represented by number 9 and the max. is concerned by number 9.
  • 42. • Managerial Grid – Appraises leadership styles using two dimensions: • Concern for people • Concern for production – Places managerial styles in five categories: • Impoverished management • Task management • Middle-of-the-road management • Country club management • Team management
  • 43. © 2005 Prentice Hall Inc. All rights reserved. 11–43 The Managerial Grid (Blake and Mouton) E X H I B I T 11–1
  • 44. © 2007 Prentice Hall, Inc. All rights reserved. 17–44 Exhibit 17–3 The Managerial Grid Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.
  • 45. 4) Situational Theory The Situational theories emphasizes that there is no specific style of leadership; it is the situation which decides whether a person is a leader or not . In other words, leadership is strongly affected by the situation in which a leader emerges and in which he works. The situational theory says that success of any organization depends upon the leadership of that organization. So, the leader should be flexible enough to understand the situation and his followers. The emphasis is on the type of situation, behaviour of the leader and the followers. The leader is the means of achieving the goals of the group and the members. In other words, we can say that according to this theory a leader becomes a leader due to the various situational factors, and the interaction between the leader and the group member.
  • 46. 4a) Fiedler’s Contingency Approaches Leader member relations Task structure Position power Fiedler’s contingency model: a model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation
  • 47. Contingency Theory (Fiedler 1978) • Leadership effectiveness is determined by the interaction between the leader's personal characteristics and the characteristics of the situation • Leaders are classified as person-oriented or task-oriented (which type will be more effective depends on the leader's degree of situational control) • Control depends on relationship between leader/followers, the degree of task
  • 48. Measuring Motivational Style Least Preferred Coworker Scale, or LPC scale. “Think of the person whom you least like to work with” The LPC Scale
  • 49. LPC Scale • He or she may be someone you work with now or someone you knew in the past. This coworker does not have to be the person you like least but should be the person with whom you had the most difficulty in getting a job done.
  • 50.  High LPC leaders most effective in “moderately” favorable situations  Low LPC leaders most effective in very favorable or very unfavorable situations In moderate situations, correlation between LPC & Effectiveness is POSITIVE In highly favorable/ unfavorable situations, correlation between LPC & Effectiveness is NEGATIVE Fiedler’s Contingency Theory LPC Scale
  • 51. Contingency Theory (Fiedler 1978) • The task-oriented leader will be effective in extremely favorable or extremely unfavorable situations • The person-oriented leader will be more effective in moderately favorable situations • Criticisms include most of research was in the lab
  • 52. © 2007 Prentice Hall, Inc. All rights reserved. 17–52 Contingency Theories of Leadership • The Fiedler Model (cont’d) – Proposes that effective group performance depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence. – Assumptions: • A certain leadership style should be most effective in different types of situations. • Leaders do not readily change leadership styles. – Matching the leader to the situation or changing the situation to make it favorable to the leader is required.
  • 53. © 2007 Prentice Hall, Inc. All rights reserved. 17–53 Contingency Theories… (cont’d) • The Fiedler Model (cont’d) – Least-preferred co-worker (LPC) questionnaire • Determines leadership style by measuring responses to 18 pairs of contrasting adjectives. – High score: a relationship-oriented leadership style – Low score: a task-oriented leadership style – Situational factors in matching leader to the situation: • Leader-member relations • Task structure • Position power
  • 54. © 2007 Prentice Hall, Inc. All rights reserved. 17–54 Exhibit 17–4 Findings of the Fiedler Model
  • 55. 4b) Situational Leadership model On the basis of relationship behaviour and task behaviour, four leadership style were suggested. In the situational model, a style of the leadership is matched with the maturity of the followers. The maturity of the follower is decided by his ability to take responsibility, his education, willingness to do a task and capacity to set high but attainable goals. Task behaviour is all about the leaders organizing capability and coordinating ability so that a task can be accomplished .
  • 56. Situational Theory - Hersey and Blanchard (1978)  Hersey and Blanchard’s extension of the Leadership Grid focusing on the characteristics of followers as the important element of the situation, and consequently, of determining effective leader behavior.  Effectiveness depends on the leader's task and relationship behaviors.  The Leadership Grid: Blake & Mouton assume that people vary in their concern for production and in their concern for people and that individuals who are high on both dimensions (9,9) are the best leaders.
  • 57. Hersey and Blanchard’s Situational Theory of Leadership Follower Characteristics Appropriate Leader Style Low readiness level Moderate readiness level High readiness level Very high readiness level Telling (high task-low relationship) Selling (high task-high relationship) Participating (low task-high rel.) Delegating (low task-low relationship)
  • 58. 4d) Path Goal theory
  • 59. Path-Goal Theory (House 1971) • Path-goal theory focuses on the kinds of leader behaviors that allow subordinates to achieve personal and organizational goals • Four leadership styles can be adopted to facilitate employee attainment of goals – Directive – Supportive – Participative – Achievement-oriented
  • 60. Path-Goal Situations and Preferred Leader Behaviors Situation Leader Behavior Impact on Follower Outcome Supportive Leadership Directive Leadership Achievement- Oriented Leadership Participative Leadership Followers lack self-confidence Ambiguous job Lack of job challenge Incorrect reward Increases confidence to achieve work outcomes Clarifies path to reward Set and strive for high goals Clarifies followers’ needs to change rewards Increased effort; improved satisfaction and performance
  • 61. Path-Goal Theory (House 1971) • The most effective leadership style depends on the situation and the characteristics of the subordinates • Requires leader flexibility • Directive style works best with unskilled workers • Supportive leadership works best with highly skilled workers • Theory is difficult to test and operationalize
  • 62. 1. Charismatic Leadership 2. Transactional Leadership 3. Transformational Leadership 4. Visionary leadership Contemporary Business Leaders
  • 63. Charismatic Leadership • Charismatic leadership is a process of influencing the followers so that they can admire their actions. • They are dynamic and risk takers. • They are confidence and expert. virgin groups chairman Sir Richard branson Steve job cofounder of Apple company.
  • 64. Transactional Leadership Transcational leaders are ones who inspire and direct their followers on the path of established goals. They guide and motivate their followers in the direction of goals by clarifying role and task requirements. They monitor the work of the subordinates and use corrective measures if requireds. Tvs group of Venu Srinivasan Anil Ambani of Ambani group
  • 65. Transformational Leadership It is the demand of modern organization or modern business world. They are the ones who try to transform individuals to extract their potential and develop them to become better leaders. They inspire and motivate their followers to put in extra effort towards attainment of goals. They guide followers by providing a sense of respect, providing vision and mission and showing trust among the employees.
  • 66. Visionary Leadership This leadership style is take from the world Vision. Visionary leaders are the ones who have the ability to create and articulate a realistic, credible and attractive vision of the future. They emphasize the vision not only verbally but also through action. N.R murthy of infosys and subash chandra of Zee group
  • 67. Motivation The term motivation has its own origin in the Latin word “mover” which means to move. Thus, motivation stands for movement. According to Scott, “Motivation is a process of stimulating people to action to accomplish desired goals”. Motivation has three distinct features • It results from a felt need • It is goal directed • It persist until the satisfaction of a need state occurs.
  • 68. Introduction (Cont.) Motivation is the psychological process that leads to Choice of behavior that results in Some level of job performance The Motivation-Behavior-Job Performance Sequence
  • 69. Types of motivation • Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure. Intrinsic Motivation is based on taking pleasure in an activity rather working towards an external reward. Intrinsic motivation has been studied by social and educational psychologists since the early 1970s. Students who are intrinsically motivated are more likely to engage in the task willingly as well as work to improve their skills, which will increase their capabilities.
  • 70. • Extrinsic motivation refers to the performance of an activity in order to attain an outcome, which then contradicts intrinsic motivation. Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards like money and grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives.
  • 71. Theories of motivation Content theories  Maslow’s need hierarchy theory  Herzberg two factor theory  Alderfer’s ERG and Achivement motivational theory Process Theories  Vroom’s Expectancy model00000000000000000000000  Adam’s Equity Theory  Porters performance and satisfaction model
  • 72. Physiological Safety Belongingness and love (Social needs) Esteem (Ego) Self- actualization Maslow’s Hierarchy of Needs
  • 73. Maslow’s Hierarchy of Needs Theory • Five groups of basic needs • Healthy adults try to satisfy these needs • So basic that they motivate behavior in many cultures • Chronic frustration of needs can lead to psychopathological results
  • 74. Maslow’s Hierarchy of Needs Theory • Five groups of basic needs • Healthy adults try to satisfy these needs • So basic that they motivate behavior in many cultures • Chronic frustration of needs can lead to psychopathological results
  • 75. Maslow’s Hierarchy of Needs Theory (Cont.) • Physiological needs: basic requirements of the human body; food, water, sleep etc • Safety needs: desires of a person to be protected from physical and economic harm • Belongingness and love needs (social): desire to give and receive affection; be in the company of others
  • 76. Maslow’s Hierarchy of Needs Theory (Cont.) • Esteem needs: self-confidence and sense of self-worth – Esteem from others: valuation of self from other people – Self-esteem: feeling of self-confidence and self- respect • Self-actualization needs: desire for self- fulfillment Maslow: “. . . the desire to become more and more what one is, to become everything that one is capable of becoming.”
  • 77. Criticism • It is difficult to interpret and operationalize the concept of need hierarchy. • This model is based on relatively small subjects. • The need classification model is artificial and arbitrary which cannot be given in five step hierarchy. • The same need will not lead to the same response in all the individuals. • The concept of need is introspective in nature which cannot be tested objectively.
  • 78. Two factor Theory The two factor theory was proposed by Frederick Herzberg. This theory is also known as the motivation-hygiene Theory. According to this theory motivation depends upon two factors- motivators and Hygiene factors. Hygiene factors – Herzberg said that the presence of these basic factors might not be a guarantee of satisfaction but absence can cause dissatisfaction.
  • 79. Hygiene factors • Rules and policies • Supervision • Salary, • Security • Working conditions Motivators  Achievement  Advancement  Autonomy (independence or freedom)  Challenge  Feed back
  • 80. McClelland’s Achievement Motivation Theory • McClelland and colleagues studied the behavioral effects of three needs – Need for Achievement – Need for Power – Need for Affiliation
  • 81. McClelland’s Achievement Motivation Theory (Cont.) • Strong need for achievement people – Take responsibility for results of behavior – Willing to take calculated risks – Set moderate achievement goals – Prefer to set performance standards for themselves – Prefer nonroutine tasks to routine assignments – Welcome feedback about how well they are doing
  • 82. McClelland’s Achievement Motivation Theory (Cont.) • Strong Need for Affiliation people – Focuses on "establishing, maintaining, and restoring positive affective relations with others" – Want close, warm interpersonal relationships – Seek the approval of others, especially those about whom they care – Like other people, want other people to like them, and want to be in the company of others
  • 83. McClelland’s Achievement Motivation Theory (Cont.) • Need for achievement and behavior – Money: important to both high and low achievers, but for different reasons • High achiever wants concrete feedback about performance • Making a profit, or receiving a bonus, is a statement about success or failure • Symbol of success and feedback about job performance
  • 84. E.R.G. Theory • A variation of Maslow's hierarchy of needs • Three groups of needs –Existence needs: physical and material wants –Relatedness needs: desires for interpersonal relationships –Growth needs: desires to be creative and productive; to use one’s skills
  • 85. E.R.G. Theory (Cont.) Physiological Safety Belongingness and love Esteem Self- actualization Relationship of Maslow’s hierarchy to E.R.G. Theory. Maslow hierarchy E.R.G. Theory Relatedness needs Existence needs Growth needs
  • 86. E.R.G. Theory (Cont.) • Both similar to and different from Maslow's need hierarchy • Satisfied and unsatisfied needs operate in much the same way • Movement upward is the same • Movement downward is new See text book Figure 7.2
  • 87. Process Theories • Expectancy theory: The expectancy theory is also known as instrumentality theory, path goal theory and valence- instrumentality theory. The theory was develop by Victor H.vroom. According to this theory, work effort in an organization is directed towards behaviours that people believe will lead to desire outcomes. In other words we can say that people adopt such behaviour in their work effort which give desired outcomes. Vroom has mathematical equation MF= V*I*E Where , MF= motivational force V= valence I= instrumentality E= Expectancy
  • 88. • The expectancy theory says that individuals have different sets of goals and can be motivated if they believe that: • There is a positive correlation between efforts and performance, • Favourable performance will result in a desirable reward, • The reward will satisfy an important need, • The desire to satisfy the need is strong enough to make the effort worthwhile.
  • 89. Expectancy: It is believed that a particular level of effort will be followed by a particular level of performance. It means expectancy = effort to perform. We can say it for example that you can work hard if you believe that it will lead to success. Instrumentality: It is the relationship between first level outcomes and second level outcomes. In other words , it is the perception of an individual that first level of outcomes are associated with second level outcomes. For eg: If you passed entrance test of iim exam you will get admissions in IIM. If there is no realtion between two , their instrumentality will be zero. Valence: It is the preference of individual for a particular second level outcome. Valence can have values ranging from negative to positive. An outcome is positive when it is preferred and negative when it is not preferred.
  • 90. Assumptions • A combination of forces in the individual and the environment determines behaviour. • Individual decides their own behavior in the organizations. • Different individuals have different needs and goals. So they expect different rewards for their work. • On the basis of their perception of which behavior will lead to the desired outcome they decide about alternatives.
  • 92. Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs,values or needs. It can also originate from past rivalries and personality differences. Definition: Conflict is a perceived differences of values between two or more parties that result in mutual opposition. Conflict can be defined as a process in which one party perceives that another party has negatively affected, or is about to negatively affect,some thing that the first party cares about.
  • 93. 17-93 The Effect of Conflict on Organization Performance Figure 17.1
  • 94. 17-94 Organizational Conflict • Organizational Conflict – The discord that arises when goals, interests or values of different individuals or groups are incompatible and those people block or thwart each other’s efforts to achieve their objectives.
  • 95. Features of Conflict • Conflict is incompatible( certain to disagree) in nature: It occurs when two or more people have mutually exclusive to be achieved. • Conflict arises due to scarcity of resources. • Conflict can be verbal or non verbal behaviour. • Conflict is deliberate(intentionally). • It is based on perception.
  • 96. Healthy conflict can lead to: • Growth and innovation • New ways of thinking • Additional management options • High productivity
  • 97.
  • 98. Level of conflict • Latent conflict: In every organizations conflict begins with latent conflict. Conflict can created by any unexpected incident such as change in direction of the organization or over loaded employee being given another project, or promise of salary increase which was not implemented. • Perceived conflict: At this level the conflict arises as a misunderstanding between two parties. This misunderstanding can be resolved by improved communication • Felt conflict: The parties in conflict develop negative feelings about each other. • Manifest conflict: One party decides how to react to or deal with the party that it sees as the source of the conflict, and both parties try to hurt each other and thwart( to hinder ) each other’s goals. • Conflict outcome: Every conflict episode leaves a conflict aftermath that affects the way both parties perceive and respond to a future conflict episode. 16
  • 99. Sources of Organizational Conflict • Differentiation – Differences in functional orientation – Status inconsistencies • Task relationships – Overlapping authority – Task interdependence – Incompatible evaluation systems • Scarcity of resources 14
  • 100. Sources of conflict 1. Interdependence  Pooled interdependence  sequential interdependence  Reciprocal interdependence 2. Scarcity of resources 3. Specialization 4. Competitive incentive and reward system 5. Incompatible personalities 6. Lack of clarity of roles and responsibility 7. Differences of perception, value and attitude 8. Poor communication 9. Cultural barriers
  • 101. Types of conflict 1. Intrapersonal conflicts 2. Interpersonal conflict 3. Intra group conflict 4. inter group conflict 5. inter organizational conflict
  • 102. Conflict Management approaches • Encouraging individualistic thinking • Increasing individual competition by rewarding individual performance • Providing all good and bad news to the employees • Creating role conflict between perceived and actual role • Bringing change in the organizational structure • Restricting the work unit
  • 103. Conflict managemet • Competing • Collaborating • Avoiding • Accomodating • comporising
  • 104. Collaborating Fundamental premise: Teamwork and cooperation help everyone achieve their goals while also maintaining relationships Strategic philosophy: The process of working through differences `will lead to creative solutions that will satisfy both parties' concerns When to use: When there is a high level of trust When you don't want to have full responsibility When you want others to also have "ownership" of solutions When the people involved are willing to change their thinking as more information is found and new options are suggested When you need to work through animosity(strong dislike and hatred) and hard feelings Drawbacks: The process takes lots of time and energy Some may take advantage of other people's trust and openness
  • 105. Compromising: Fundamental premise: Winning something while losing a little is OK Strategic philosophy: Both ends are placed against the middle in an attempt to serve the "common good" while ensuring each person can maintain something of their original position When to use: When people of equal status are equally committed to goals When time can be saved by reaching intermediate settlements on individual parts of complex issues When goals are moderately important Drawbacks: Important values and long-term objectives can be derailed( bring a sudden hault) in the process May not work if initial demands are too great
  • 106. Accommodating : This style is less assertive and highly cooperative. People try to be generous and sacrificing. This style can be very useful for the temporary solution of conflict in short run. People using this style may be perceived as submissive and weak persons. This style is used in a situation when an issue is important for other person, and you want the other person to learn from his mistakes.
  • 107. Competing : This style is highly assertive and uncooperative. This style is power oriented and includes dominance. Those who believe in this style of conflict resolution rely heavily on punishment to have control over others. People use fight, argument even physical aggression to achieve their goal. Here one party wins and others looses. This style is popular in a few situations such as only on emergencies, or when there is a need to protect yourself and others from taking undue advantage.
  • 108. Avoiding: Fundamental premise: This isn't the right time or place to address this issue Strategic philosophy: Avoids conflict by withdrawing, sidestepping, or postponing When to use: When the conflict is small and relationships are at stake When you're counting to ten to cool off When more important issues are pressing and you feel you don't have time to deal with this particular one When you have no power and you see no chance of getting your concerns met When you are too emotionally involved and others around you can solve the conflict more successfully When more information is needed Drawbacks: Important decisions may be made by default Postponing may make matters worse
  • 109. 17-109 Negotiation • Negotiation – Parties to a conflict try to come up with a solution acceptable to themselves by considering various alternative ways to allocate resources to each other Methods/ steps – Unfreezing – Being open – Empathy for others – Searching for common goal – Generating alternatives – Responding to alternatives – Searching for solutions – Breaking the silence – Accepting a solution with the group
  • 110. Types of change Structural change Technological change Automation change Workforce change
  • 111. Needs for change • External environment such as change in market place, government laws and regulation technology, labour market and economical changes • Internal environment such as changes in organizational strategies, workforce changes, new equipments and change in employeed attitue.
  • 112. Factors of change • Competitive factors: Every organization must make changes to attempt to match or exceed its competitors on at least one of the following dimensions.  Efficiency  Quality  innovation  customer responsiveness
  • 113. • Economic, political and global forces affect organizations by forcing them to change the process they adopt for producing good and services. They also affect the choice of location for the production. Need to change organization structure due to following  To allow expansion in foreign market.  To adopt different types of national culture.  To help expatriates in adapting to the cultural values of the place where they are located.
  • 114. Resistance to change In any organization where change is introduced , people and group react in different ways. There can be great support or active resistance too. If people have don’t have enough information regarding the process and impact of change, people resist change.
  • 115. Sources of Resistance to Change • Ignorance: a failure to understand the situation or the problem • Mistrust: motives for change are considered suspicious • Disbelief: a feeling that the way forward will not work • “Power-Cut”: a fear that sources of influence and control will be eroded.
  • 116. Sources of Resistance to Change • Loss: change has unacceptable personal costs • Inadequacy: the benefits from the change are not seen as sufficient • Anxiety: fear of being unable to cope with the new situation.
  • 117. Sources of Resistance to Change • Comparison: the way forward is disliked because an alternative is preferred • Demolition: change threatens the destruction of existing social networks.
  • 118. Symptoms of Resistance • Hostility and Aggression • An individual may develop apathy towards his work • Absenteeism and tardiness • Development of Anxiety and Tension • Slowdown or strikes
  • 119. Strategies to overcome Resistance • Selective perception • Lack of information • Fear of unknown • Habit • Resentment towards the manager
  • 120. Strategies • Education and communication • Participation and involvement • Facilitation and support • Negotiation and agreement • Manipulation and co-optation • Explicit and Implicit coercion
  • 121. Process of change • Initiation • Motivation • Diagnosis • Collection of information • Evaluation of Alternatives • Action Proposal • Implementation • Stabilization
  • 122. Lewin’s 3 stage model of change
  • 123. O.D O.D is a technique that helps individual to learn to change their attitude and behavior, so that they can function effectively both, as individual as organization members. It is said that O.D is a technique which helps two interdependent groups explore their perceptions and relations in order to improve their work interactions.
  • 124. O.D encourages some specific values • Openness: Facing the problem instead of avoiding it. • Confrontation: searching for the solution of the problem and developing good relations among employees. • Trust • Authenticity: Dependency on each other • Proactive: Taking initiative, • Autonomy: Strength of a person to collaborate with others without feeling inferior. • Collaboration: an activity where people prefer to work in group rather than working alone
  • 125. Techniques of O.D • Counseling • Sensitivity Training • Process Consultation • Team building • Inter group training • Organizational mirroring • Organizational confrontation meeting
  • 126. O.D Interventions Organizational development is a difficult and a complicated issue. If not handled properly it can have disastrous results. While planning O.D therefore, we need to introduce very specific interventions to facilitate. Several experts have suggested classification system for these interventions. O.D cube: Schmuck and miles (1971) proposed a 9*6*8 cube, suggesting the following dimensions. Diagnosed problem Focus of attention Mode of intervention
  • 127. Consul Cube Blake and mouton (1976) proposed a comprehensive system covering a large number of interventions at different level. They classified interventions using three dimensions to make it cube (5*4*5) Consulting approach Focal issues Units of change Interventions families: French and Bell (1989) have purposed 13 families, or types , of interventions in terms of activities : diagnostic, Team building, intergroup, survey feedback, education and training, techno structural change, survey feedback, education and training etc
  • 128. 3 dimensions of culture that need to be considered while making decisions about O.D intervention strategy • Ambiguity Tolerance • Risk taking capacity • Openness
  • 129. Motivation The term motivation has its own origin in the Latin word “mover” which means to move. Thus, motivation stands for movement. According to Scott, “Motivation is a process of stimulating people to action to accomplish desired goals”. Motivation has three distinct features • It results from a felt need • It is goal directed • It persist until the satisfaction of a need state occurs.
  • 130. Defining Motivation Key Elements 1. Intensity: how hard a person tries 2. Direction: toward beneficial goal 3. Persistence: how long a person tries
  • 131. Introduction (Cont.) Motivation is the psychological process that leads to Choice of behavior that results in Some level of job performance The Motivation-Behavior-Job Performance Sequence
  • 132. Types of motivation • Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure. Intrinsic Motivation is based on taking pleasure in an activity rather working towards an external reward. Intrinsic motivation has been studied by social and educational psychologists since the early 1970s. Students who are intrinsically motivated are more likely to engage in the task willingly as well as work to improve their skills, which will increase their capabilities.
  • 133. • Extrinsic motivation refers to the performance of an activity in order to attain an outcome, which then contradicts intrinsic motivation. Extrinsic motivation comes from outside of the individual. Common extrinsic motivations are rewards like money and grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives.
  • 134. Theories of motivation Content theories  Maslow’s need hierarchy theory  Herzberg two factor theory  Alderfer’s ERG and Achivement motivational theory Process Theories  Vroom’s Expectancy model00000000000000000000000  Adam’s Equity Theory  Porters performance and satisfaction model
  • 135. Physiological Safety Belongingness and love (Social needs) Esteem (Ego) Self- actualization Maslow’s Hierarchy of Needs
  • 136. Maslow’s Hierarchy of Needs Theory • Five groups of basic needs • Healthy adults try to satisfy these needs • So basic that they motivate behavior in many cultures • Chronic frustration of needs can lead to psychopathological results
  • 137. Maslow’s Hierarchy of Needs Theory • Five groups of basic needs • Healthy adults try to satisfy these needs • So basic that they motivate behavior in many cultures • Chronic frustration of needs can lead to psychopathological results
  • 138. Maslow’s Hierarchy of Needs Theory (Cont.) • Physiological needs: basic requirements of the human body; food, water, sleep etc • Safety needs: desires of a person to be protected from physical and economic harm • Belongingness and love needs (social): desire to give and receive affection; be in the company of others
  • 139. Maslow’s Hierarchy of Needs Theory (Cont.) • Esteem needs: self-confidence and sense of self-worth – Esteem from others: valuation of self from other people – Self-esteem: feeling of self-confidence and self- respect • Self-actualization needs: desire for self- fulfillment Maslow: “. . . the desire to become more and more what one is, to become everything that one is capable of becoming.”
  • 140. Criticism • It is difficult to interpret and operationalize the concept of need hierarchy. • This model is based on relatively small subjects. • The need classification model is artificial and arbitrary which cannot be given in five step hierarchy. • The same need will not lead to the same response in all the individuals. • The concept of need is introspective in nature which cannot be tested objectively. • Individuals differ in the relative intensity of their various needs.
  • 141. Two factor Theory The two factor theory was proposed by Frederick Herzberg. This theory is also known as the motivation-hygiene Theory. According to this theory motivation depends upon two factors- motivators and Hygiene factors. Hygiene factors – Herzberg said that the presence of these basic factors might not be a guarantee of satisfaction but absence can cause dissatisfaction.
  • 142. Hygiene factors • Rules and policies • Supervision • Salary, • Security • Working conditions Motivators  Achievement  Advancement  Autonomy (independence or freedom)  Challenge  Feed back  Responsibility
  • 143. McClelland’s Achievement Motivation Theory • McClelland and colleagues studied the behavioral effects of three needs – Need for Achievement – Need for Power – Need for Affiliation
  • 144. McClelland’s Achievement Motivation Theory (Cont.) • Strong need for achievement people – Take responsibility for results of behavior – Willing to take calculated risks – Set moderate achievement goals – Prefer to set performance standards for themselves – Prefer nonroutine tasks to routine assignments – Welcome feedback about how well they are doing
  • 145. McClelland’s Achievement Motivation Theory (Cont.) • Strong Need for Affiliation people – Focuses on "establishing, maintaining, and restoring positive affective relations with others" – Want close, warm interpersonal relationships – Seek the approval of others, especially those about whom they care – Like other people, want other people to like them, and want to be in the company of others
  • 146. McClelland’s Achievement Motivation Theory (Cont.) • Need for achievement and behavior – Money: important to both high and low achievers, but for different reasons • High achiever wants concrete feedback about performance • Making a profit, or receiving a bonus, is a statement about success or failure • Symbol of success and feedback about job performance
  • 147. E.R.G. Theory • A variation of Maslow's hierarchy of needs • Three groups of needs –Existence needs: physical and material wants –Relatedness needs: desires for interpersonal relationships –Growth needs: desires to be creative and productive; to use one’s skills
  • 148. E.R.G. Theory (Cont.) Physiological Safety Belongingness and love Esteem Self- actualization Relationship of Maslow’s hierarchy to E.R.G. Theory. Maslow hierarchy E.R.G. Theory Relatedness needs Existence needs Growth needs
  • 149. E.R.G. Theory (Cont.) • Both similar to and different from Maslow's need hierarchy • Satisfied and unsatisfied needs operate in much the same way • Movement upward is the same • Movement downward is new See text book Figure 7.2
  • 150. Process Theories • Expectancy theory: The expectancy theory is also known as instrumentality theory, path goal theory and valence- instrumentality theory. The theory was develop by Victor H.vroom. According to this theory, work effort in an organization is directed towards behaviours that people believe will lead to desire outcomes. In other words we can say that people adopt such behaviour in their work effort which give desired outcomes. Vroom has mathematical equation MF= V*I*E Where , MF= motivational force V= valence I= instrumentality E= Expectancy
  • 151. • The expectancy theory says that individuals have different sets of goals and can be motivated if they believe that: • There is a positive correlation between efforts and performance, • Favourable performance will result in a desirable reward, • The reward will satisfy an important need, • The desire to satisfy the need is strong enough to make the effort worthwhile.
  • 152. Expectancy: It is believed that a particular level of effort will be followed by a particular level of performance. It means expectancy = effort to perform. We can say it for example that you can work hard if you believe that it will lead to success. Instrumentality: It is the relationship between first level outcomes and second level outcomes. In other words , it is the perception of an individual that first level of outcomes are associated with second level outcomes. For eg: If you passed entrance test of iim exam you will get admissions in IIM. If there is no realtion between two , their instrumentality will be zero. Valence: It is the preference of individual for a particular second level outcome. Valence can have values ranging from negative to positive. An outcome is positive when it is preferred and negative when it is not preferred.
  • 153. Assumptions • A combination of forces in the individual and the environment determines behaviour. • Individual decides their own behavior in the organizations. • Different individuals have different needs and goals. So they expect different rewards for their work. • On the basis of their perception of which behavior will lead to the desired outcome they decide about alternatives.
  • 154. Types of change Structural change Technological change Automation change Workforce change
  • 155. Needs for change • External environment such as change in market place, government laws and regulation technology, labour market and economical changes • Internal environment such as changes in organizational strategies, workforce changes, new equipments and change in employeed attitue.
  • 156. Factors of change • Competitive factors: Every organization must make changes to attempt to match or exceed its competitors on at least one of the following dimensions.  Efficiency  Quality  innovation  customer responsiveness
  • 157. • Economic, political and global forces affect organizations by forcing them to change the process they adopt for producing good and services. They also affect the choice of location for the production. Need to change organization structure due to following  To allow expansion in foreign market.  To adopt different types of national culture.  To help expatriates in adapting to the cultural values of the place where they are located.
  • 158. Resistance to change In any organization where change is introduced , people and group react in different ways. There can be great support or active resistance too. If people have don’t have enough information regarding the process and impact of change, people resist change.
  • 159. Sources of Resistance to Change • Ignorance: a failure to understand the situation or the problem • Mistrust: motives for change are considered suspicious • Disbelief: a feeling that the way forward will not work • “Power-Cut”: a fear that sources of influence and control will be eroded.
  • 160. Sources of Resistance to Change • Loss: change has unacceptable personal costs • Inadequacy: the benefits from the change are not seen as sufficient • Anxiety: fear of being unable to cope with the new situation.
  • 161. Sources of Resistance to Change • Comparison: the way forward is disliked because an alternative is preferred • Demolition: change threatens the destruction of existing social networks.
  • 162. Symptoms of Resistance • Hostility and Aggression • An individual may develop apathy towards his work • Absenteeism and tardiness • Development of Anxiety and Tension • Slowdown or strikes
  • 163. Strategies to overcome Resistance • Selective perception • Lack of information • Fear of unknown • Habit • Resentment towards the manager
  • 164. Strategies • Education and communication • Participation and involvement • Facilitation and support • Negotiation and agreement • Manipulation and co-optation • Explicit and Implicit coercion
  • 165. Process of change • Initiation • Motivation • Diagnosis • Collection of information • Evaluation of Alternatives • Action Proposal • Implementation • Stabilization
  • 166. Lewin’s 3 stage model of change
  • 167. O.D O.D is a technique that helps individual to learn to change their attitude and behavior, so that they can function effectively both, as individual as organization members. It is said that O.D is a technique which helps two interdependent groups explore their perceptions and relations in order to improve their work interactions.
  • 168. O.D encourages some specific values • Openness: Facing the problem instead of avoiding it. • Confrontation: searching for the solution of the problem and developing good relations among employees. • Trust • Authenticity: Dependency on each other • Proactive: Taking initiative, • Autonomy: Strength of a person to collaborate with others without feeling inferior. • Collaboration: an activity where people prefer to work in group rather than working alone
  • 169. Techniques of O.D • Counseling • Sensitivity Training • Process Consultation • Team building • Inter group training • Organizational mirroring • Organizational confrontation meeting
  • 170. O.D Interventions Organizational development is a difficult and a complicated issue. If not handled properly it can have disastrous results. While planning O.D therefore, we need to introduce very specific interventions to facilitate. Several experts have suggested classification system for these interventions. O.D cube: Schmuck and miles (1971) proposed a 9*6*8 cube, suggesting the following dimensions. Diagnosed problem Focus of attention Mode of intervention
  • 171. Consul Cube Blake and mouton (1976) proposed a comprehensive system covering a large number of interventions at different level. They classified interventions using three dimensions to make it cube (5*4*5) Consulting approach Focal issues Units of change Interventions families: French and Bell (1989) have purposed 13 families, or types , of interventions in terms of activities : diagnostic, Team building, intergroup, survey feedback, education and training, techno structural change, survey feedback, education and training etc
  • 172. 3 dimensions of culture that need to be considered while making decisions about O.D intervention strategy • Ambiguity Tolerance • Risk taking capacity • Openness
  • 174. Conflict is a natural disagreement resulting from individuals or groups that differ in attitudes, beliefs,values or needs. It can also originate from past rivalries and personality differences. Definition: Conflict is a perceived differences of values between two or more parties that result in mutual opposition. Conflict can be defined as a process in which one party perceives that another party has negatively affected, or is about to negatively affect,some thing that the first party cares about.
  • 175. 17-175 The Effect of Conflict on Organization Performance Figure 17.1
  • 176. 17-176 Organizational Conflict • Organizational Conflict – The discord that arises when goals, interests or values of different individuals or groups are incompatible and those people block or thwart each other’s efforts to achieve their objectives.
  • 177. Features of Conflict • Conflict is incompatible( certain to disagree) in nature: It occurs when two or more people have mutually exclusive to be achieved. • Conflict arises due to scarcity of resources. • Conflict can be verbal or non verbal behaviour. • Conflict is deliberate(intentionally). • It is based on perception.
  • 178. Healthy conflict can lead to: • Growth and innovation • New ways of thinking • Additional management options • High productivity
  • 179.
  • 180. Level of conflict • Latent conflict: In every organizations conflict begins with latent conflict. Conflict can created by any unexpected incident such as change in direction of the organization or over loaded employee being given another project, or promise of salary increase which was not implemented. • Perceived conflict: At this level the conflict arises as a misunderstanding between two parties. This misunderstanding can be resolved by improved communication • Felt conflict: The parties in conflict develop negative feelings about each other. • Manifest conflict: One party decides how to react to or deal with the party that it sees as the source of the conflict, and both parties try to hurt each other and thwart( to hinder ) each other’s goals. • Conflict outcome: Every conflict episode leaves a conflict aftermath that affects the way both parties perceive and respond to a future conflict episode. 16
  • 181. Sources of Organizational Conflict • Differentiation – Differences in functional orientation – Status inconsistencies • Task relationships – Overlapping authority – Task interdependence – Incompatible evaluation systems • Scarcity of resources 14
  • 182. Sources of conflict 1. Interdependence  Pooled interdependence  sequential interdependence  Reciprocal interdependence 2. Scarcity of resources 3. Specialization 4. Competitive incentive and reward system 5. Incompatible personalities 6. Lack of clarity of roles and responsibility 7. Differences of perception, value and attitude 8. Poor communication 9. Cultural barriers
  • 183. Types of conflict 1. Intrapersonal conflicts 2. Interpersonal conflict 3. Intra group conflict 4. inter group conflict 5. inter organizational conflict
  • 184. Conflict Management approaches • Encouraging individualistic thinking • Increasing individual competition by rewarding individual performance • Providing all good and bad news to the employees • Creating role conflict between perceived and actual role • Bringing change in the organizational structure • Restricting the work unit • Bringing outsiders to the organization
  • 185. Conflict managemet • Competing • Collaborating • Avoiding • Accomodating • comporising
  • 186. Collaborating Fundamental premise: Teamwork and cooperation help everyone achieve their goals while also maintaining relationships Strategic philosophy: The process of working through differences `will lead to creative solutions that will satisfy both parties' concerns When to use: When there is a high level of trust When you don't want to have full responsibility When you want others to also have "ownership" of solutions When the people involved are willing to change their thinking as more information is found and new options are suggested When you need to work through animosity(strong dislike and hatred) and hard feelings Drawbacks: The process takes lots of time and energy Some may take advantage of other people's trust and openness
  • 187. Compromising: Fundamental premise: Winning something while losing a little is OK Strategic philosophy: Both ends are placed against the middle in an attempt to serve the "common good" while ensuring each person can maintain something of their original position When to use: When people of equal status are equally committed to goals When time can be saved by reaching intermediate settlements on individual parts of complex issues When goals are moderately important Drawbacks: Important values and long-term objectives can be derailed( bring a sudden hault) in the process May not work if initial demands are too great
  • 188. Accommodating : This style is less assertive and highly cooperative. People try to be generous and sacrificing. This style can be very useful for the temporary solution of conflict in short run. People using this style may be perceived as submissive and weak persons. This style is used in a situation when an issue is important for other person, and you want the other person to learn from his mistakes.
  • 189. Competing : This style is highly assertive and uncooperative. This style is power oriented and includes dominance. Those who believe in this style of conflict resolution rely heavily on punishment to have control over others. People use fight, argument even physical aggression to achieve their goal. Here one party wins and others looses. This style is popular in a few situations such as only on emergencies, or when there is a need to protect yourself and others from taking undue advantage.
  • 190. Avoiding: Fundamental premise: This isn't the right time or place to address this issue Strategic philosophy: Avoids conflict by withdrawing, sidestepping, or postponing When to use: When the conflict is small and relationships are at stake When you're counting to ten to cool off When more important issues are pressing and you feel you don't have time to deal with this particular one When you have no power and you see no chance of getting your concerns met When you are too emotionally involved and others around you can solve the conflict more successfully When more information is needed Drawbacks: Important decisions may be made by default Postponing may make matters worse
  • 191. 17-191 Negotiation • Negotiation – Parties to a conflict try to come up with a solution acceptable to themselves by considering various alternative ways to allocate resources to each other Methods/ steps – Unfreezing – Being open – Empathy for others – Searching for common goal – Generating alternatives – Responding to alternatives – Searching for solutions – Breaking the silence – Accepting a solution with the group
  • 193. According to Koontz and O’Donnell, “Leadership is the process of influencing others towards the accomplishment of the goal. It is the ability of a manager to induce subordinate to work with zeal and confidence. According to Louis A. Allen, “ A leader is one who guides and directs other people. He gives the efforts of his followers a direction and purpose, by influencing their behavior. Definition:
  • 194. Characterstics of leadership 1. Leadership is a process of influence. 2. Leadership is related to the situation. 3. Leadership is a function of stimulation 4. Leadership gives an experience of helping others in attaining their common objective. 5. There should be existence of followers.
  • 195. The Characteristic of an Effective Leader… • Inspiring • Has a vision, mission and goal • Integrity & diplomacy: a quality Of being honest. • Motivational • Communication & listening skills • Coaching skills • Decisive: having a power or quality of deciding • A "can do, get it done" attitude
  • 196. Leaders vs. Managers  LEADERS:  innovate  focus on people  inspire trust  have a long-range view  ask what and why  have eyes on horizon  originate  challenge status quo  do the right thing  MANAGERS:  administrate  focus on systems and structures  rely on control  have a short-range view  ask how and when  have eyes on bottom line  initiate  accept status quo  do things right
  • 197. Styles of Leadership 1. Autocratic Style 2. Participative 3. Laissez- fair style
  • 198. Autocratic style I want both of you to. . .
  • 199. Autocratic Style This style is also known as authoritarian style. Autocratic leaders believes in strict command. He gives ordered which must be obeyed by his subordinates. High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively
  • 200. Advantages Quick decision making Leader can have direct control over group It can be applied to group activity. One decision making authority Disadvantages Takes all decision which is very demotivating for the subordinates. Misunderstanding of the people due to one way communication. People get less chance of growth of their potentials. High dependency of leader for everything and people start avoiding responsibility
  • 201. Types of Autocratic style • Strict Autocratic: The leaders of this style believes in passing the orders. Communication is downward and he uses fear and threats. • Benevolent Autocratic: In this leaders uses reward and punishment to work effectively. Limited upward communication. • Manipulative autocratic: The leaders shows that the suggestion of the employees are welcomed but he takes his own decisions. In this leadership style, there is no motivation for the employees.
  • 202. Participative style Let's work together to solve this. . .
  • 203. Participative Style  It is also known as democratic style.  In this style, the decision making power is dispersed among the group members.  Policies are worked out in group discussions and with the acceptance of the group.  Praises or blames are group factor.  Democratic leadership style means facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision.  Ideas move freely amongst the group and are discussed openly.
  • 204. Advantages  In this style, employees feel motivated and satisfied, which increases the productivity.  The morale of group is high  Group decisions making reduces conflicts Disadvantages Subordinate can use particpative leadership as a tool of manipulation. Top level decision is making difficult. There can be chaos and bias.
  • 205. Laissez-fair style You two take care of the problem while I go. .
  • 206. Laissez-faire style • In this style, the leader allows the employees to make the decisions • This leadership style is also known as free-rein leadership. • This leader acts as suprevisor. • Generally, self managed team his this kind of leadership style. • A free rein leader doesn’t lead but leave the groups entirely to itself. • Establish own goals and works out its problems on its own.
  • 207.
  • 208. Comparison of Authoritarian, Democratic, & Laissez-Faire Authoritar. Democrat. Laissez-F Degree of freedom Little Moderate Much Degree of control High Moderate None Decsision making By leader Leader& group Group or no one Leader activity level High High Minimal Assumption of Responsibility Leader Shared Abdicated Output of group High& good qual. High & creative Variable- Poor?
  • 209. Theories of leadership 1) Great man theory leadership 2) Trait theory 3) Behavioral Theory a) Ohio state studies b) Managerial grid theory 4) Situational Theory a) Fiddlers' Contingency theory b) Situational Leadership model c) Path goal theory
  • 210. 1) Greatman theory of leadership •This theory was formulated in the year 1950 according to which leaders are born not made. •This theory says that leaders have certain inherent traits which make them leaders and to be a successful leader, it is necessary to have inborn leadership qualities. •This theory says that leadership is god gifted and talks about certain qualities such as intelligence, charm, courage, persuasiveness, commanding personality aggresiveness etc. •In this theory we can take the example of napolean, who is considered as a born leader.
  • 211. The Great Man Theory Early explanations of leadership studied the “traits” of great leaders  “Great man” theories (Gandhi, Lincoln, Napoleon)  Belief that people were born with these traits and only the great people possessed them
  • 212. Personal qualities of leaders  Personality traits, such as extraversion, conscientiousness, and openness.  Intelligence and emotional intelligence (degree of social skill).  Expertise, skill, and experience. The Great Man Theory
  • 213. © 2005 Prentice Hall Inc. All rights reserved. 11–213 2) Trait Theories Leadership Traits: • Ambition and energy • The desire to lead • Honest and integrity • Self-confidence • Intelligence • High self-monitoring • Job-relevant knowledge Traits Theories of Leadership Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.
  • 214. © 2005 Prentice Hall Inc. All rights reserved. 11–214 Trait Theories Limitations: • No universal traits found that predict leadership in all situations. • Traits predict behavior better in “weak” than “strong” situations. • Unclear evidence of the cause and effect of relationship of leadership and traits. • Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.
  • 215. Trait theory •This theory is based on great man theory, in other words this theory believes that leadership is the result of certain traits. •This theory says that leaders differ from their followers because of certain generally acceptable traits. •In this theory we can take the example of Ratan Tata, Narayan Murthy, Steve Jobs, Nelson Mandela etc are well known as leaders because of their personal qualities and characteristics. •It can also be said that Mahatma Gandhi had not received any formal training for developing leadership skills, then also he was a charismatic leader.
  • 216. •In the year 1930-1940 many researches were conducted to find out the factor which are responsible for making a leader and it was said that if a person possesses particular traits he can be come a leader. •Researchers have identified almost 40 traits which are important to have in you if you want to become a leader. Some of these traits are: Traits Adaptable to situation Assertive Cooperative Alert to social environment Tolerant of stress Willing to assume responsibility Skills Clever Conceptually skilled Diplomatic and tactful Fluent in speaking Persuasive Socially skilled
  • 217. 3) Behavioural Theory • Imply that leaders can be trained – focus on the way of doing things – Structure based behavioural theories – focus on the leader instituting structures – task orientated – Relationship based behavioural theories – focus on the development and maintenance of relationships – process orientated
  • 218. © 2005 Prentice Hall Inc. All rights reserved. 11–218 Behavioral Theories • Trait theory: Leaders are born, not made. • Behavioral theory: Leadership traits can be taught. Behavioral Theories of Leadership Theories proposing that specific behaviors differentiate leaders from nonleaders.
  • 219. a) Ohio State Studies The Ohio State studies identified various independent dimensions of a leader’s behaviour. After analyzing the leadership behaviour in various situations, they narrowed down the list to two leadership behaviours Initiating Structure The extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in the search for goal attainment. Consideration The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate’s ideas, and regard for their feelings.
  • 220. b) The Managerial Grid • Created and developed by Robert Blake and Jane S. Mouton. • Considered as most significant and practical contribution to organization development and effective management principles. • As shown in the next slide, the managerial grid theory is a presentation of two dimensional view of leadership style. • These two dimensions are – Concern for people – Concern for production The X-axis of the grid represents the Leaders concern for production and the Y-axis represents the leaders concern for people. It is expressed a nine point scale. The minimum concern is represented by number 9 and the max. is concerned by number 9.
  • 221. • Managerial Grid – Appraises leadership styles using two dimensions: • Concern for people • Concern for production – Places managerial styles in five categories: • Impoverished management • Task management • Middle-of-the-road management • Country club management • Team management
  • 222. © 2005 Prentice Hall Inc. All rights reserved. 11–222 The Managerial Grid (Blake and Mouton) E X H I B I T 11–1
  • 223. © 2007 Prentice Hall, Inc. All rights reserved. 17–223 Exhibit 17–3 The Managerial Grid Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved.
  • 224. 4) Situational Theory The Situational theories emphasizes that there is no specific style of leadership; it is the situation which decides whether a person is a leader or not . In other words, leadership is strongly affected by the situation in which a leader emerges and in which he works. The situational theory says that success of any organization depends upon the leadership of that organization. So, the leader should be flexible enough to understand the situation and his followers. The emphasis is on the type of situation, behaviour of the leader and the followers. The leader is the means of achieving the goals of the group and the members. In other words, we can say that according to this theory a leader becomes a leader due to the various situational factors, and the interaction between the leader and the group member.
  • 225. 4a) Fiedler’s Contingency Approaches Leader member relations Task structure Position power Fiedler’s contingency model: a model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation
  • 226. Contingency Theory (Fiedler 1978) • Leadership effectiveness is determined by the interaction between the leader's personal characteristics and the characteristics of the situation • Leaders are classified as person-oriented or task-oriented (which type will be more effective depends on the leader's degree of situational control) • Control depends on relationship between leader/followers, the degree of task structure, and the leader's authority (position power)
  • 227. Measuring Motivational Style Least Preferred Coworker Scale, or LPC scale. “Think of the person whom you least like to work with” The LPC Scale
  • 228. LPC Scale • He or she may be someone you work with now or someone you knew in the past. This coworker does not have to be the person you like least but should be the person with whom you had the most difficulty in getting a job done.
  • 229.  High LPC leaders most effective in “moderately” favorable situations  Low LPC leaders most effective in very favorable or very unfavorable situations In moderate situations, correlation between LPC & Effectiveness is POSITIVE In highly favorable/ unfavorable situations, correlation between LPC & Effectiveness is NEGATIVE Fiedler’s Contingency Theory LPC Scale
  • 230. Contingency Theory (Fiedler 1978) • The task-oriented leader will be effective in extremely favorable or extremely unfavorable situations • The person-oriented leader will be more effective in moderately favorable situations • Criticisms include most of research was in the lab
  • 231. © 2007 Prentice Hall, Inc. All rights reserved. 17–231 Contingency Theories of Leadership • The Fiedler Model (cont’d) – Proposes that effective group performance depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence. – Assumptions: • A certain leadership style should be most effective in different types of situations. • Leaders do not readily change leadership styles. – Matching the leader to the situation or changing the situation to make it favorable to the leader is required.
  • 232. © 2007 Prentice Hall, Inc. All rights reserved. 17–232 Contingency Theories… (cont’d) • The Fiedler Model (cont’d) – Least-preferred co-worker (LPC) questionnaire • Determines leadership style by measuring responses to 18 pairs of contrasting adjectives. – High score: a relationship-oriented leadership style – Low score: a task-oriented leadership style – Situational factors in matching leader to the situation: • Leader-member relations • Task structure • Position power
  • 233. © 2007 Prentice Hall, Inc. All rights reserved. 17–233 Exhibit 17–4 Findings of the Fiedler Model
  • 234. 4b) Situational Leadership model On the basis of relationship behaviour and task behaviour, four leadership style were suggested. In the situational model, a style of the leadership is matched with the maturity of the followers. The maturity of the follower is decided by his ability to take responsibility, his education, willingness to do a task and capacity to set high but attainable goals. Task behaviour is all about the leaders organizing capability and coordinating ability so that a task can be accomplished .
  • 235. Situational Theory - Hersey and Blanchard (1978)  Hersey and Blanchard’s extension of the Leadership Grid focusing on the characteristics of followers as the important element of the situation, and consequently, of determining effective leader behavior.  Effectiveness depends on the leader's task and relationship behaviors.  The Leadership Grid: Blake & Mouton assume that people vary in their concern for production and in their concern for people and that individuals who are high on both dimensions (9,9) are the best leaders.
  • 236. Hersey and Blanchard’s Situational Theory of Leadership Follower Characteristics Appropriate Leader Style Low readiness level Moderate readiness level High readiness level Very high readiness level Telling (high task-low relationship) Selling (high task-high relationship) Participating (low task-high rel.) Delegating (low task-low relationship)
  • 237. 4d) Path Goal theory
  • 238. Path-Goal Theory (House 1971) • Path-goal theory focuses on the kinds of leader behaviors that allow subordinates to achieve personal and organizational goals • Four leadership styles can be adopted to facilitate employee attainment of goals – Directive – Supportive – Participative – Achievement-oriented
  • 239. Path-Goal Situations and Preferred Leader Behaviors Situation Leader Behavior Impact on Follower Outcome Supportive Leadership Directive Leadership Achievement- Oriented Leadership Participative Leadership Followers lack self-confidence Ambiguous job Lack of job challenge Incorrect reward Increases confidence to achieve work outcomes Clarifies path to reward Set and strive for high goals Clarifies followers’ needs to change rewards Increased effort; improved satisfaction and performance
  • 240. Path-Goal Theory (House 1971) • The most effective leadership style depends on the situation and the characteristics of the subordinates • Requires leader flexibility • Directive style works best with unskilled workers • Supportive leadership works best with highly skilled workers • Theory is difficult to test and operationalize
  • 241. 1. Charismatic Leadership 2. Transactional Leadership 3. Transformational Leadership 4. Visionary leadership Contemporary Business Leaders
  • 242. Charismatic Leadership • Charismatic leadership is a process of influencing the followers so that they can admire their actions. • They are dynamic and risk takers. • They are confidence and expert. virgin groups chairman Sir Richard branson Steve job cofounder of Apple company.
  • 243. Transactional Leadership Transcational leaders are ones who inspire and direct their followers on the path of established goals. They guide and motivate their followers in the direction of goals by clarifying role and task requirements. They monitor the work of the subordinates and use corrective measures if requireds. Tvs group of Venu Srinivasan Anil Ambani of Ambani group
  • 244. Transformational Leadership It is the demand of modern organization or modern business world. They are the ones who try to transform individuals to extract their potential and develop them to become better leaders. They inspire and motivate their followers to put in extra effort towards attainment of goals. They guide followers by providing a sense of respect, providing vision and mission and showing trust among the employees. Azim premji of Wipro Ratan tata of Tata group
  • 245. Visionary Leadership This leadership style is take from the world Vision. Visionary leaders are the ones who have the ability to create and articulate a realistic, credible and attractive vision of the future. They emphasize the vision not only verbally but also through action. N.R murthy of infosys and subash chandra of Zee group