HRM 2024-25 Distance Learning Course PDF

Distance Learning Course- 2024-25 Certified Professional in Cooperative Banking Level-II Module 3: Organizational Behaviour and Human Resource Management 2024 Centre for Professional Excellence in Cooperatives (C-PEC) of Bankers Institute of Rural Development (BIRD) Sector-H, LDA Colony, Kanpur Road, Lucknow – 226 012, INDIA Phone +91-522-2421799 Email [email protected] Homepage http://bird-cpec.in/, www.birdlucknow.in Table of Contents 1 Unit 1 Group Dynamics and Team Building.............................................. 1 1.1 Objectives.................................................................................................. 3 1.2 Introduction............................................................................................... 3 1.3 What is ‘Group Dynamics’?........................................................................ 3 1.3.1 Affiliation............................................................................................. 3 1.3.2 Security............................................................................................... 4 1.3.3 Esteem................................................................................................ 4 1.3.4 Power................................................................................................... 4 1.3.5 Identity................................................................................................ 4 1.3.6 Accomplishment.................................................................................. 4 1.4 Types of Groups......................................................................................... 5 1.5 Stages of Group Development.................................................................... 5 1.6 Role............................................................................................................ 6 1.7 Norms........................................................................................................ 7 1.8 Status........................................................................................................ 8 1.9 Size............................................................................................................ 8 1.10 Cohesiveness.......................................................................................... 9 1.10.1 Effects of Cohesiveness................................................................... 10 1.11 Group Decisions................................................................................... 11 1.11.1 Group think.................................................................................... 12 1.11.2 Group shift..................................................................................... 13 1.12 Group Decision-making techniques...................................................... 13 1.13 Individual Vs Group Vs Team................................................................ 14 1.13.1 Understanding teams..................................................................... 15 1.14 Types of teams in an organisation......................................................... 16 1.14.1 Problem-solving teams.................................................................... 16 1.14.2 Self-managed work teams............................................................... 17 1.14.3 Cross-functional teams................................................................... 17 1.14.4 Virtual teams.................................................................................. 17 1.15 Team efficacy........................................................................................ 18 1.16 Turning individuals into team players................................................... 20 1.17 Shaping team behaviour....................................................................... 20 1.18 Let us sum up....................................................................................... 20 1.19 Key words............................................................................................. 21 1.20 Check your progress -questions............................................................ 22 1.21 Terminal questions (MCQs)................................................................... 24 1.22 Terminal questions.............................................................................. 25 2 Unit No. 2 – Leadership and Change Management................................ 27 2.1 Objectives................................................................................................ 29 2.2 Introduction............................................................................................. 29 2.3 Leaders and Managers............................................................................. 30 2.4 Leadership Theories................................................................................. 31 2.5 Charismatic Leadership........................................................................... 38 2.6 Transformational Leadership................................................................... 39 2.7 Transformational Leadership versus Charismatic Leadership.................. 40 2.8 Coaching / Mentoring / Counseling......................................................... 42 2.8.1 Coaching........................................................................................... 42 2.8.2 Mentoring.......................................................................................... 42 2.8.3 Counseling......................................................................................... 42 2.9 Change Management................................................................................ 42 2.9.1 Costs and Benefits............................................................................. 43 2.10 Resistance to Change............................................................................ 44 2.10.1 Possible tactics for change agents to succeed................................. 45 2.11 Kurt Lewin’s change model................................................................... 46 2.11.1 Unfreeze......................................................................................... 46 2.11.2 Change........................................................................................... 47 2.11.3 Refreezing....................................................................................... 47 2.12 Force field analysis............................................................................... 48 2.13 Kotter’s Eight-step Plan for Implementing Change................................ 48 2.14 Action Research.................................................................................... 49 2.15 Organisational Development................................................................. 50 2.15.1 Objective of OD............................................................................... 50 2.15.2 Organizational self-renewal............................................................. 51 2.15.3 Understanding organizations.......................................................... 51 2.16 Modern development............................................................................. 52 2.17 Groups of Interventions........................................................................ 54 2.18 Creating a culture for change................................................................ 59 2.18.1 Stimulating a culture of innovation................................................ 59 2.18.2 Creating a learning culture............................................................. 60 2.19 OCTAPACE........................................................................................... 60 2.19.1 Openness....................................................................................... 60 2.19.2 Confrontation................................................................................. 61 2.19.3 Trust.............................................................................................. 61 2.19.4 Authenticity.................................................................................... 62 2.19.5 Proaction........................................................................................ 62 2.19.6 Autonomy....................................................................................... 62 2.19.7 Collaboration.................................................................................. 62 2.19.8 Experimenting................................................................................ 63 2.20 Let us sum up....................................................................................... 63 2.21 Key words............................................................................................. 64 2.22 Check your progress - questions........................................................... 65 3 Unit No. 3 Conflict Management and Negotiation................................... 71 3.1 Objectives................................................................................................ 73 3.2 Introduction............................................................................................. 73 3.3 Process of Conflict.................................................................................... 74 3.3.1 Stage I- Potential Opposition or Incompatibility................................. 74 3.3.2 Stage II Cognition and Personalization............................................... 76 3.3.3 Stage III: Intentions........................................................................... 76 3.3.4 Stage IV: Behaviour........................................................................... 79 3.3.5 Stage V: Outcomes............................................................................. 79 3.4 Types of Conflict....................................................................................... 80 3.4.1 Substantive Conflict........................................................................... 80 3.4.2 Emotional Conflict............................................................................. 80 3.5 Levels of Conflict...................................................................................... 81 3.5.1 Intrapersonal Conflict........................................................................ 81 3.5.2 Interpersonal conflict......................................................................... 81 3.5.3 Intergroup Conflict............................................................................. 81 3.5.4 Intra-organizational Conflict.............................................................. 82 3.5.5 Inter-organizational Conflict.............................................................. 82 3.6 Conflict Resolution................................................................................... 82 3.7 Conflict Management............................................................................... 84 3.8 Introduction to Negotiation...................................................................... 84 3.8.1 Distributive Negotiation..................................................................... 85 3.8.2 Integrative Negotiation....................................................................... 88 3.9 Negotiation Process – five steps................................................................ 89 3.10 Individual Differences in Negotiation Effectiveness................................ 90 3.11 Third-Party Negotiations....................................................................... 90 3.12 Let us sum up....................................................................................... 91 3.13 Key words............................................................................................. 92 3.14 Check your progress -questions............................................................ 94 3.15 Terminal questions (MCQs)................................................................... 96 4 Unit 4 Time Management and Stress Management................................. 99 4.1 Objectives.............................................................................................. 101 4.2 Introduction........................................................................................... 101 4.3 Setting Priorities and Goals.................................................................... 102 4.3.1 ABC Analysis................................................................................... 103 4.3.2 ABC Analysis is frequently combined with Pareto Analysis.............. 103 4.3.3 The Eisenhower Method................................................................... 103 4.3.4 POSEC method................................................................................ 104 4.4 Implementing goals................................................................................ 104 4.5 Task list organization............................................................................. 105 4.6 Task lists are often prioritized................................................................ 105 4.7 Potential Difficulties with To-Do Lists..................................................... 105 4.8 Time Management Systems.................................................................... 106 4.8.1 Time Wasters................................................................................... 107 4.9 Delegation.............................................................................................. 110 4.10 Ten Time Management Myths............................................................. 111 4.11 Introduction to Stress Management.................................................. 113 4.12 Fight-or-Flight.................................................................................... 114 4.13 Skills to manage stress....................................................................... 114 4.14 The Four Common Types of Stress...................................................... 115 4.14.1 Time Stress................................................................................... 115 4.14.2 Anticipatory Stress....................................................................... 116 4.14.3 Situational Stress......................................................................... 117 4.15 Toffler's Stability Zones....................................................................... 119 4.16 "Transactional Model of Stress and Coping"........................................ 120 4.16.1 Primary Appraisal......................................................................... 120 4.16.2 Secondary Appraisal..................................................................... 121 4.17 Coping Efforts..................................................................................... 121 4.18 Let Us Sum Up.................................................................................... 123 4.19 Key words........................................................................................... 124 4.20 Check your progress........................................................................... 125 4.21 Terminal Questions (MCQs)................................................................ 127 5 Unit 5 Human Resources Management – An Introduction..................... 130 5.1 Objectives.............................................................................................. 131 5.2 Introduction........................................................................................... 131 5.3 Personnel Management Vs Human Resource Management..................... 132 5.4 Evolution of HRM................................................................................... 133 5.5 Difference between PM and HRM on various dimensions........................ 136 5.6 Objective of HRM................................................................................... 137 5.7 Systems Approach................................................................................. 138 5.8 Some Key Concepts of the Systems Approach........................................ 138 5.9 Talent Management................................................................................ 139 5.10 Image and Qualities of HR Manager.................................................... 141 5.11 Responsibilities of HR Manager........................................................... 143 5.12 Strategic Human Resource Management............................................. 145 5.13 HRM and Environmental Pressure...................................................... 146 5.14 The Four C’s Model for evaluating Human Resource Process.............. 147 5.15 HRM policies....................................................................................... 148 5.16 Knowledge Management...................................................................... 150 5.17 The Seven-S Model.............................................................................. 151 5.18 Let us sum up..................................................................................... 153 5.19 Key words........................................................................................... 153 5.20 Check your progress........................................................................... 154 5.21 Terminal questions (MCQs)................................................................. 156 6 Unit 6: Manpower Planning and Recruitment....................................... 159 6.1 Objectives.............................................................................................. 160 6.2 Introduction........................................................................................... 160 6.3 Human Resource Planning..................................................................... 161 6.3.1 Influencing Factors of HRP.............................................................. 162 6.3.2 The planning process....................................................................... 163 6.4 Internal Supply...................................................................................... 166 6.5 External Supply..................................................................................... 166 6.6 HR Plan Implementation........................................................................ 167 6.6.1 Barriers to HRP................................................................................ 167 6.7 Human Resource Information System (HRIS)......................................... 168 6.8 Steps in Implementing an HRIS............................................................. 168 6.9 Job Analysis and Role Analysis.............................................................. 169 6.10 Job Design.......................................................................................... 172 6.11 What is role analysis?......................................................................... 177 6.12 Emotional Intelligence......................................................................... 179 6.13 Process of Recruitment and Selection.................................................. 181 6.13.1 Recruitment.................................................................................. 182 6.14 Selection............................................................................................. 186 6.15 Induction and Placement.................................................................... 189 6.15.1 Requisites of an effective induction programme............................ 191 6.16 Placement........................................................................................... 192 6.17 Let us sum up..................................................................................... 193 6.18 Key Words/ Concepts......................................................................... 193 6.19 Check your progress........................................................................... 194 6.20 Terminal questions (MCQs)................................................................. 196 7 Unit 7 Performance Appraisal and Manpower Development.................. 200 7.1 Objectives.............................................................................................. 201 7.2 Introduction........................................................................................... 201 7.3 Performance Appraisal........................................................................... 202 7.3.1 Factors that help improve accuracy................................................. 206 7.3.2 Methods of Appraisals...................................................................... 208 7.3.3 Assessment Centres......................................................................... 209 7.3.4 360-Degrees Appraisal..................................................................... 210 7.3.5 360 Degree Feedback....................................................................... 210 7.3.6 Performance Appraisal meetings...................................................... 211 7.3.7 Challenges of Performance Appraisal............................................... 212 7.4 Job Evaluation....................................................................................... 213 7.4.1 Job evaluation process.................................................................... 213 7.5 Balanced Scorecard................................................................................ 215 7.6 Training and Development..................................................................... 216 7.6.1 Inputs in training and development programmes............................. 217 7.6.2 Importance of Training and Development......................................... 218 7.6.3 The Training Process....................................................................... 219 7.7 Designing Training and Development Programme.................................. 220 7.8 The Level of Learning............................................................................. 222 7.8.1 Experiential Learning Theory........................................................... 223 7.8.2 Honey and Mumford's Model........................................................... 224 7.8.3 Learning Principles.......................................................................... 225 7.9 Evaluation of the Training Programme................................................... 226 7.10 Barriers to Effective Training.............................................................. 227 7.11 Management Development Programmes.............................................. 228 7.12 Developing a Learning Organization.................................................... 229 7.13 Let’s us sum up.................................................................................. 232 7.14 Key words/concepts............................................................................ 233 7.15 Check your progress........................................................................... 236 7.16 Terminal Questions (MCQs)................................................................ 238 8 Unit 8: HRM and Developments in Banking Industry........................... 240 8.1 Objectives.............................................................................................. 241 8.2 Introduction........................................................................................... 241 8.3 Core Banking......................................................................................... 241 8.4 HRM and Management of Service Industry............................................. 246 8.5 Benchmarking....................................................................................... 246 8.5.1 Benefits and uses of benchmarking................................................. 247 8.5.2 A typical benchmarking methodology............................................... 247 8.5.3 Types of benchmarking.................................................................... 248 8.6 Total Quality Management..................................................................... 249 8.6.1 Ideas that apply to any TQM method............................................... 250 8.7 Business Process Reengineering (BPR)................................................... 253 8.8 Quality Circles (QCs).............................................................................. 254 8.9 Six Sigma............................................................................................... 255 8.9.1 Lean Six Sigma................................................................................ 256 8.10 ISO Certification................................................................................. 258 8.11 Let us sum up..................................................................................... 258 8.12 Keywords............................................................................................ 259 8.13 Check your progress -questions.......................................................... 260 8.14 Terminal questions (MCQs)................................................................. 262 Abbreviations ACR Annual Confidential Report ATM Automated Teller Machine BARS Behaviorally Anchored Rating Scale BATNA Best Alternative To a Negotiated Agreement BPR Business Process Reengineering BSC Balanced Scorecard CAI Computer-Assisted Instructions CHAMPS Cooperative Hourly and Management Problem Solving CORE Centralized Online Real-time Environment DPMO Defects Per Million Opportunities ELT Experiential Learning HCM Human Capital Management HR Human Resource HRIS HR Information Systems HRM Human Resource Management HRP Human Resources Planning ISO International Organization for Standardization KM Knowledge Management LMX Leader-Member Exchange LPC Least Preferred Co-Worker MAFs Multi-rater Assessment Feedbacks MBO Management by Objective MCQ Multiple Choice Questions MDP Management Development Programmes OD Organisation Development PDA Personal Digital Assistant Prioritize by Organizing, Streamlining, Economizing and POSEC Contributing QC Quality Control SIPOC Suppliers, Inputs, Process, Output and Customers SLT Situational Leadership Theory SMART Specific, Measurable, Attainable, Realistic and Time bound SWOT Strength Weakness Opportunity Threat TNA Training Needs Assessment TQM Total Quality Management VARK Visual Auditory Kinesthetic model VRS Voluntary Retirement Scheme ORGANISATIONAL BEHAVIOUR AND HUMAN RESOURCES MANAGEMENT SYLLABUS UNIT 01 GROUP DYNAMICS AND TEAM BUILDING 1 Groups Types –Group Development Stages- Roles – Norms- Group Cohesion – Group Think – Group Shift 2 Teams Group Vs. Team - Factors Determining Team Efficacy – Synergy -Social Loafing UNIT 02 LEADERSHIP AND CHANGE MANAGEMENT 3 Leadership Leadership – Theories – Styles - Qualities - Transformational Leadership 4 Change Kurt-Lewin’s Model - Resistance to Change - Management Personal, Rational and Social – Managing Resistance 5 Organizational Meaning – Overview of OD Interventions – Development OCTAPACE Values. UNIT 03 CONFLICT MANAGEMENT AND NEGOTIATION 6 Conflict Approaches to Conflict - Conflict Process - Resolution of Conflict 7 Negotiation Significance - Negotiation Process UNIT 04 TIME MANAGEMENT AND STRESS MANAGEMENT 8 Time Management Time Wasters - Approaches to Management of Time 9 Stress Stressors at Work Place - Coping Strategies Management UNIT 05 HRM – AN INTRODUCTION 10 Human Resource Meaning- Significance – PM Vs. HRM Management UNIT 06 MANPOWER PLANNING AND RECRUITMENT 11 Manpower Meaning – Significance- Types- Job analysis and Planning Role analysis 12 Recruitment and Recruitment and Selection- Methods of Selection recruitment – Selection – Steps - Induction and Placement UNIT 07 PERFORMANCE APPRAISAL AND MANPOWER DEVELOPMENT 13 Performance Performance appraisal system - Role in the appraisal development of manpower- Appraisal methods- 360 degree appraisal 14 Training Training Vs Development – TNA - Design of training - Training methods - Evaluation of training 15 Development Management Development Programmes-Methods of MDP UNIT 08 HRM AND DEVELOPMENTS IN BANKING INDUSTRY 16 HRM in the Core banking and HRM challenges- HRM and context of Management of Service industry- Implications of Information Benchmarking, TQM, BPR, QC, Six sigma Technology and Service Quality Disclaimer This book is meant for educational and learning purposes. The author of the book has taken all reasonable care to ensure that the contents of the book do not violate any existing copyright or other intellectual property rights of any person / institution in any manner. Wherever possible, acknowledgements / references have been given. 1 Unit 1 Group Dynamics and Team Building 1.1 Objectives 1.2 Introduction 1.3 What is Group Dynamics 1.3.1 Affiliation 1.3.2 Security 1.3.3 Esteem 1.3.4 Power 1.3.5 Identity 1.3.6 Accomplishment 1.4 Types of Groups 1.5 Stages of Group Development 1.6 Role 1.7 Norms 1.8 Status 1.9 Size 1.10 Cohesiveness 1.10.1 Effects of Cohesion 1.11Group Decisions 1.11.1 Group Think 1.11.1 Group Shift 1.12 Group Decision Making Techniques 1.13 Individual Vs Group Vs Team 1.13.1 Understanding Teams 1.14 Types of Teams in an Organisation 1.14.1 Problem Solving Teams 1.14.2 Self Managing Teams 1.14.3 Cross Functional Teams 1.14.4 Virtual Teams 1.15 Team Efficacy 1 1.16 Turning Individual in to Team Players 1.17 Shaping Team Behaviour 1.18 Let us sum up 1.19 Key word/concepts 1.20 Check your progress-questions Key to questions asked 1.21 Terminal questions 1.1 Objectives The objectives of this lesson are to understand  What is ‘Group Dynamics’  Types of Groups  Stages of Group Development  Group Decision  Group Decision-making Techniques  Meaning of team, how it differs from group  Types of teams  Methods for converting an individual into a team player  How to shape a team’s behavior 1.2 Introduction Two or more number of people together in the same place or connected in some way form a group. The members interact with each other by occasionally meeting, talking and doing things together. They share some common ideology like a goal, concern, same prejudices or values or may face a common threat which gives the members some identity. They see themselves as a group since some commonality between them attracts each other. Their interaction with one another, leads them to identify themselves as a unique group. 1.3 What is ‘Group Dynamics’? The social process by which people interact face to face in small groups is called group dynamics. The word ‘dynamics’ comes from the Greek word the meaning of which is ‘force’. Group dynamics thus refers to the forces operating within a group. People form groups and feel strongly about them. Social identity theory proposes that people have emotional reactions to the failure or success of their group because their self-esteem gets tied into the performance of the group. In an organization, the reasons for people form or join a group can be as under: 1.3.1 Affiliation People enjoy the regular company of other people, particularly those with whom they share something in common. Their experiences with others indicate that they are likely to obtain friendship, friendly interaction and acceptance by others if they are ‘in’ with some group. People at work as members of organizations are as reinforced by such things as they are outside of work. Their requirements for affiliation must be satisfied on the job, or not at all. 1.3.2 Security Perhaps the strongest basis for group formation amongst humans was security. Even today, people experience feelings of insecurity which can be lessened by group membership. Joining a group, whose members have experienced similar feelings earlier and have survived, is an effective means of reducing such anxiety. 1.3.3 Esteem An individual can increase his/her self-esteem through group membership. First one can gain esteem by becoming a member of high-status group. Associating with high-status members reinforces one’s self esteem and one who belongs to such a group is accorded high status by outsiders. Second the close relationship an individual can develop as a group member provides opportunities for recognition and praise that are not available outside the group. 1.3.4 Power Group membership can be a source of power, as we say – ‘united we stand, divided we fall’. Even belonging to an informal group, provide individuals with opportunities to exercise power over others. One attractive feature of informal group power is that leader of such group can avoid the responsibilities that usually go with formal positions of power. 1.3.5 Identity According to the psychological concept of ‘the looking-glass self’, we see ourselves as reflected in the behaviour of others towards us. Most of our information about us comes from other people. As a member of a group, we can get more of this information for several reasons. Our experience with other members gives us confidence in interpreting their reactions. The group members’ experience with us gives them a better basis for evaluating our personality and behaviour. We feel that friends will be more willing to give us information that others might not. 1.3.6 Accomplishment Groups may form simply because it takes more than one person to accomplish a certain task, or because the task is made easier through cooperative effort. A group is formed by several people to share their knowledge about one common problem by using their talent, tools, contacts or their power to get something done. As they are interacting and sharing the common ideology of completing the task as a unit, they can be called as a psychological group. 1.4 Types of Groups Groups can be either formal or informal. In formal groups, the behaviors of the members engaged in are stipulated by and directed towards organizational goals. In contrast, informal group is neither formally structured nor organizationally determined. They are natural formations in the work environment that appear in response to the need for social contact. A command group is determined by the organisation chart. It is composed of individuals who report directly to a given manager. A task group, also organizationally determined, represents individuals working together to complete a job task. However, a task group’s boundaries are not limited to its immediate hierarchical superior; the group can cross command relationships. People may affiliate to attain a specific objective with which each is concerned, whether they are in command or task groups together. This creates an interest group. Groups often develop because individual members have one or more common characteristics. They form friendship group. 1.5 Stages of Group Development There is a five-stage group-development model which characterizes groups as proceeding through the distinct stages of forming, storming, norming, performing and adjourning.  The first stage, ‘forming’, is characterized by uncertainty about the groups, purpose, structure and leadership. Members test to determine what types of behaviours are acceptable. When they begin to think of themselves as part of a group, the stage is complete.  In ‘storming’ stage, members accept the existence of the group but resist the constraints it imposes on individuality. There is a conflict over who will control the group. When this stage is complete, there will be a relatively clear hierarchy of leadership within the group.  In the third stage, close relationships develop and the group gets interconnected. There is a strong sense of group identity and comradeship amongst the members. This ‘norming’ stage is complete when the group structure solidifies and has assimilated a common set of expectations of what defines correct member behaviour.  The fourth stage is ‘performing’, at this stage the structure is fully functional and accepted. Group energy has moved from getting to know and understand each other to performing the task at hand. For permanent work groups, performing is the last stage in development.  For temporary groups that have a limited task to perform, the ‘adjourning’ stage is a preparation for ending. Wrapping up activities is the focus here. Temporary groups with deadlines don’t seem to follow the usual five-stage model. They have their own unique sequencing of actions or inactions. This pattern is called punctuated-equilibrium model. 1. Their first meeting sets the group’s direction. 2. This first phase of group activity is one of inactivity. 3. At the end of this phase, a transition takes place, a group takes almost half of its allotted time. 4. The transition initiates major changes. 5. A second phase of inertia follows the transition. 6. The group’s last meeting is characterized by markedly accelerated activity. Work groups have properties that shape members’ behaviour and help explain and predict individual behaviour within the group as well as the performance of the group itself. These properties include roles, norms, status, size and cohesiveness. 1.6 Role Role is a set of expected behaviour patterns attributed to someone occupying a given position in a social unit. We have to play a number of diverse roles, both on and off our jobs. One of the tasks in understanding behaviour is grasping the role a person is currently playing. Our understanding of role behaviour would be simplified, if, each one of us had to choose one role and play it regularly and consistently. Our view of how we are supposed to act in a given situation is Role perception. We engage in certain types of behaviour, based on, how we believe we are supposed to behave. We get these perceptions from stimuli all around us – people around us, what we see, what we read etc. Role expectations are the way others believe you should act in a given context. In the workplace, we look at role expectations through the perspective of the psychological contract; an unwritten agreement that exists between employees and employer. Management is expected to treat employees justly, provide acceptable working conditions, communicate what is expected from the employees and give feedback on how employees are doing. Employees are expected to respond by demonstrating a good attitude, follow directions and show loyalty to the organization. Role conflict is a situation in which an individual is confronted by divergent role expectations. As people with different backgrounds, points of view, values, needs and personalities interact, a variety of conflicts often develop. Organizational change also contributes to conflict, because it realigns relationship among people. The result is that conflict is an inevitable part of organizational life. Conflict has both advantages and disadvantages. One advantage is that people are stimulated to search for improved approaches that lead to better results. Another is that once-hidden problems are brought to the surface where they may be solved. Out of all these, a deeper understanding may develop among the people involved. The possible disadvantages can be deterioration in cooperation and teamwork, growing distrust among people who need to cooperate, feeling of defeat or poor self-image or loss of motivation among some people. 1.7 Norms All groups have established norms – acceptable standards of behaviour within a group that are shared by the group’s members. At the developmental stage, the members of the group prefer to settle the rules to coordinate and govern their behaviour. The group norm is the shared and agreed upon; rules of behaviour established by group members after discussion among themselves. The norms comprise the kind of behaviour that is expected from a member, what a member should not do, the kinds of situations when a member should be expelled, willingness to listen to each other’s problems, prohibiting excessive demands from a particular member, and similar other issues that are likely to make the group function smoothly. Norms can cover virtually any aspect of group behaviour; probably the most common is a performance norm, providing clear indication about how hard members should work, what the level of output should be, how to get the job done, what level of tardiness is appropriate, and the like. These norms are extremely powerful in affecting an individual’s performance. As a member of a group, you desire acceptance by the group. Thus you are susceptible to conforming to the group’s norms. There is considerable evidence that groups can place strong pressures on individual members to change their attitudes and behaviours to conform to the group’s standard. The adjustment of one’s behaviour to align with the norms of the group is called conformity. 1.8 Status Status is a socially defined position or rank given to groups or group members by others. Status is a significant motivator and has major behavioural consequences when individuals perceive a disparity between what they believe their status is and what others perceive it to be. According to The Status Characteristics Theory, status tends to derive from one of following three sources. 1. The power a person uses over others. Because they are likely to control the group’s resources, people who control the outcomes tend to be perceived as high status. 2. A person’s ability to contribute to a group’s goals. People whose contributions are critical to the group’s success tend to have high status. 3. An individual’s personal characteristics. Someone whose personal characteristics are positively valued by the group (good looks, intelligence, and friendly personality) typically has higher status than someone with fewer valued attributes. High-status individuals are often given more freedom to deviate from norms than are other group members. High-status people are also better able to resist conformity pressures than their lower-status peers. An individual who is highly valued by a group but doesn’t need or care about the group’s social rewards is particularly able to disregard conformity norms. High-status people tend to be more assertive group members; but status differences actually inhibit diversity of ideas and creativity in groups, because lower- status members tend to participate less actively in group discussions. It is important for group members to believe the status hierarchy is equitable. Perceived inequity creates disequilibrium, which inspires various types of corrective behaviour. 1.9 Size The size of the group plays an important role. A group takes more time to take a decision if the size is large. Moreover, consensus can seldom be achieved with more members. Since it is easier to for fewer people to agree on goals and to coordinate their work, smaller groups are more cohesive than larger groups. Groups of approximately seven members tend to be more effective for taking action. One of the most important findings about the size of a group, concerns social loafing, the tendency for individuals to expend less effort when working collectively than alone. What causes social loafing? It may be a belief that others in the group are not carrying their fair share. Another explanation is the spreading of responsibility. Because group results cannot be attributed to any single person, the relationship between an individual’s input and the group’s output is clouded. When managers use collective work situations to enhance morale and team work, they must also be able to identify individual efforts. There are several ways to prevent social loafing, which at least should help minimizing its effect. 1. Set group goals, so the group has a common purpose to strive towards. 2. Increase inter group competition, which again focuses on the shared outcome. 3. Engage in peer evaluation so each person evaluates each other person’s contribution. 4. Select members who have high motivation and prefer to work in groups 5. If possible, base group rewards in part on each member’s unique contributions. 1.10 Cohesiveness Groups differ in their Cohesiveness – the degree to which members are attracted or attached to each other and motivated to stay in the group. Group cohesion is the most fundamental of all the aspects that arise out of the process of communication and interactions among members in group. Group cohesion is the force that brings group members closer together. The basic dimension, which defines the degree of ‘groupness’, is the strength with which a group is bound together. Cohesiveness has two dimensions – emotional (personal) and task related. The emotional aspect of cohesiveness is derived from the connection that members have with other group members and with their group as a whole. That is, how much do members like to spend time with other group members? Do they look forward to the next group meeting? Task cohesiveness refers to the degree to which group members share group goals and work together to meet these goals. That is, is there a feeling that the group works smoothly as one unit or do different people pull or move in different directions? Cohesiveness in groups can be affected by factors such as inter-personal attraction, threat, severity of initiation, cooperation and group size. Groups whose members have lots of opportunity to interact, groups with high status, groups whose members have similar backgrounds and similar attitudes, successful groups, and groups with successful members – all tend to have greater cohesiveness than groups without these characteristics. Threat is an effective means for producing cohesiveness when the following conditions exist: 1. The threat comes from outside the group. 2. Cooperation can help resist or overcome the threat. 3. There is little or no chance for escape. The more difficult it is to gain admission to a group, the more cohesive the group becomes. This effect can be accomplished in different ways. One is to set high standards for membership. One effect is to tend to increase their attraction for the group. This same effect can be achieved by making the group members believe they are uniquely qualified. A somewhat different approach is to require prospective members to sacrifice in order to gain admission. Severe initiation procedures often unite members in the knowledge that each of them has endured the unendurable. Sometimes the general atmosphere of a group enhances cohesiveness. Task or reward systems which promote cooperation between members can lead to increased cohesiveness. Working together for a common goal has a unifying effect on members. The effects of group size on cohesiveness are fairly predictable. With increase in group size, cohesiveness tends to decrease. A larger group faces difficulty in interacting with each other. More the members more will be the differences and attitudes among them. It is more difficult to get the group to agree on common goals and activities. 1.10.1 Effects of Cohesiveness Members of cohesive groups communicate with each other more than the members of non-cohesive groups. Sharing common ideologies, goals, backgrounds or attitudes gives cohesive groups a lot to talk about and such discussion is usually reinforcing. Communication and social interaction have been found to be both causes and effects of cohesiveness. Interaction increases interpersonal attraction and cohesiveness, and increased cohesiveness in turn leads to greater communication. Members of cohesive groups tend to evaluate themselves, the group and the group’s task more favorably than do members of less cohesive groups. Members of cohesive groups tend to perceive each other and the group favourably. Members of cohesive groups tend to express more hostility than members of less cohesive groups. This hostility is usually directed towards nonmembers, since cohesiveness increases a member’s identification with his/her group and tends to produce discrimination towards nonmembers as ‘outsiders’. Cohesive groups are by definition highly attractive to their members. Members tend to like each other and perceive themselves as similar. These characteristics lead members to be relatively dependent on the group for satisfaction and thus they are susceptible to being influenced. A good deal of communication which is characteristic of cohesive groups concerns things common to the group: goals, attitudes, ideology, values. Such communication increases each member’s awareness of group norms, sanctions and reinforces conformity. The goals of cohesive groups are important to them. They are the subject of much of the group’s communication and become part of group ideology, to which members are expected to confirm. Pressures are exerted on deviants, while conformers are reinforced. As a result, cohesive groups are likely to accomplish their goals. If these goals are consistent with task performance or productivity, cohesive groups will be productive. To encourage group cohesiveness: 1. Make the group smaller. 2. Encourage agreement with group goals. 3. Increase the time members spend together. 4. Increase the group’s status and the perceived difficulty of attaining membership. 5. Stimulate competition with other groups. 6. Give rewards to the group rather than to individual members. 7. Physically isolate the group. 1.11 Group Decisions Groups are an excellent vehicle for performing many of the steps in the decision-making process and offer both breadth and depth of input for information gathering. If group members have diverse backgrounds, the alternatives generated should be more extensive and the analysis more critical. When the final solution is agreed on, there are more people in a group decision to support and implement it. These pluses, however, can be more than offset by the time consumed by group decisions, the internal conflicts they create, and the pressures they generate towards conformity. In some cases, therefore, individuals can be expected to make better decisions than groups. Two by-products, of group decision making have the potential to affect a group’s ability to appraise alternatives objectively and arrive at high-quality solutions. The first phenomenon is group think – in which the norm for consensus overrides the realistic appraisal of alternative courses of action. The second phenomenon is group shift – a change in decision risk between a group’s decision and an individual decision that a member within the group would make; the shift can be towards either conservatism or greater risk. 1.11.1 Group think Following are the symptoms of the group think phenomenon: 1. Group members rationalize any resistance to the assumptions they have made. No matter how strongly the evidence may contradict their basic assumptions, members behave so as to reinforce them. 2. Members apply direct pressures on those who momentarily express doubts about any of the group’s shared views or who question the validity of arguments supporting the alternative favoured by the majority. 3. Members who have doubts or differing points of view seek to avoid deviating from what appears to be group consensus by keeping silent about misgivings and even minimizing to themselves the importance of their doubts. 4. There is an illusion of unanimity. If someone doesn’t speak, it’s assumed he or she is in full accord. In other words, non-participation becomes a ‘yes’ vote. As members of a group, we find it more pleasant to be in agreement – to be a positive part of the group – than to be a disruptive force, even if disruption is necessary to improve the effectiveness of the group’s decisions. What managers can do to minimize groupthink is first, they can monitor group size, ideally to not larger than ten numbers. People grow more intimidated and hesitant as group size increases. Managers should also encourage group leaders to play an impartial role. Leaders should actively seek input from all members and avoid expressing their own opinions, especially in the early stages of deliberation. Managers should appoint one group member whose role will be to openly challenge the majority position and offer divergent perspectives. Another way is to use exercises that stimulate active discussion of diverse alternatives without threatening the group and intensifying identity protection. 1.11.2 Group shift There are differences between group decisions and the individual decisions of group members. Sometimes group decisions are more conservative. More often they lean towards greater risk. What appears to happen in groups is that the discussion leads members towards a more extreme view of the position they already held. Conservatives become more cautious, and more aggressive types take on more risk. The group discussion tends to exaggerate the initial position of the group. The group’s decision reflects the dominant decision-making norm that develops during the discussion. Whether the shift in the group’s decision is towards greater caution or more risk depends on the dominant pre-discussion norm. So how should you use the findings on group shift? Recognize that group decisions exaggerate the initial position on the individual members that the shift has been shown more often to be towards greater risk, and that which way a group will shift is a function of the members’ pre-discussion inclinations. 1.12 Group Decision-making techniques The most common form of group decision making takes place in interacting groups. Members meet face to face and rely on both verbal and nonverbal interaction to communicate. But interacting group often censor themselves and pressure individual members towards conformity of opinion. Brainstorming can overcome the pressures for conformity that dampen creativity by encouraging any and all alternatives while withholding criticism. In a typical brainstorming session, a half a dozen to dozen people sit around a table. The group leader states the problem in a clear manner so all participants to understand. Members then freewheel as many alternatives as they can in a given length of time. No criticism is allowed. One idea stimulates others; judgments are withheld until later to encourage group members to think the unusual. Brainstorming may indeed generate ideas – but not in a very efficient manner. The nominal group technique restricts discussion or interpersonal communication during the decision-making process, hence the term nominal. Group members are physically present but they operate independently. Specifically a problem is presented and then the group takes the following steps: 1. Members meet as a group, but before any discussion takes place, each independently writes down ideas on the problem. 2. Each member then presents one idea to the group. No discussion takes place until all ideas have been presented and recorded. 3. The group discusses the ideas for clarity and evaluates them. 4. Each group member silently and independently rank-orders the ideas. The idea with the highest aggregate ranking determines the final decision. The main advantage of the nominal group technique is that it permits a group to meet formally but does not restrict independent thinking. The most recent approach to group decision making blends the nominal group technique with sophisticated computer technology. It is called electronic meeting. Up to 50 people sit around a horseshoe-shaped table. Issues are presented to them, and they type their responses into their computers. These individual but anonymous comments, as well as aggregate votes are displayed on a projection screen. This technique also allows people to be honest without penalty as chitchat is eliminated, discussions do not deviate and many participants can ‘talk’ at once. Each of the four group-decision techniques has its own set of strengths and weaknesses. The choice depends on what criteria you want to emphasize and the cost-benefit trade-off. 1.13 Individual Vs Group Vs Team Individuals are important entities of any organization. By understanding the behaviour of individuals, we can predict their outcomes and it becomes easy to manage their behaviours in desirable directions to achieve organizational objectives and goals. In order to get the best from individuals, we have to look at three individual variables – biographical characteristics, ability and learning. Training keeps the abilities up to date and provides new skills. Any observable change in behaviour is prima facie evidence that learning has taken place. If individuals work in group, the output increases. A group is two or more interacting and interdependent individuals coming together to achieve particular objectives. The group helps an individual to feel stronger, have a fewer self-doubts, and more resistant to threats. An individual gains personal fulfillment from the feeling of accomplishment, recognition, authority and purpose. A team is a mature group with highly independent members who are totally committed to a common goal. Though they are independent members, they believe in interdependence for the effectiveness of their combination. Organizations today are facing cut-throat competition. As such they encourage forming work teams and investing efforts as a member of the team rather than working as an individual. The aim and the purpose of the team are to perform, get results and achieve business goals in the workplace and marketplace. The purpose of forming a team is to accomplish bigger goals that would not have been possible for the individuals working alone. 1.13.1 Understanding teams A group of people do not make a team. A team is a group of people with a high degree of interdependence focused on the achievement of some goal or task. All the members in a team agree on the goal and the process of achieving it. Thus a team is a mature group with highly independent members in terms of capability but work interdependently and is completely committed to achieve a common goal. All teams start out as groups, but not all groups become teams. Teams are groups of people who co-operate to carry out a joint task. The following elements distinguish teams from groups.  Exhibiting full commitment to achieve a common goal and mission.  Feelings that they are interdependent.  Believing that they have mutual accountability.  Accepting shared leadership.  Developing trust and a collaborative culture.  Getting achievement through synergy  Applying orchestral efforts. A team can be differentiated from a group on various dimensions. Dimension Group Team Understanding Members think they are Members recognize their grouped for administrative interdependence and understand purposes. both personal and team goals, Ownership Members focus on Members feel a sense of themselves. They are less ownership. They are committed to involved. value based common goals. Creativity and Members need instructions Members apply talents and contribution. about what to do. What would creativity and decide on / identify be the best approach? tasks. Trust. Members cannot understand Members work in a climate of the motives of colleagues. trust; express ideas, opinions, They generally cannot trust disagreements and feelings. others. Common Members speak cautiously. Members practice open and understanding. They do not try to understand honest communication. others’ viewpoint. Personal Members receive good Members continually develop development. training. They can apply only skills. They perceive they have the limited knowledge in the work support of the team. area. Conflict Members do not know how to Members realize conflict is a resolution. resolve conflict. Supervisors / normal aspect of human leaders intervene. interaction. It is in fact an opportunity for new ideas and creativity. Participative Member’s participation in Members participate in decisions decision decision making is unlikely. affecting the team performance. making Win-lose situations are Win-win results are the goals at common. all times. Clear Members tend to work in an Members work in a structured leadership. unstructured environment. environment. Leader sets agreed Leaders cannot exercise high standards of proper control. performance. Commitment. Members are not so Members are committed to and committed towards excellence. strive for excellence. They work in Members turnover is high. a harmonious environment. 1.14 Types of teams in an organisation The four most common types of teams in an organization are – problem solving teams, self-managed work teams, cross-functional teams and virtual teams. 1.14.1 Problem-solving teams A problem solving team is also known as a ‘quality improvement team’ or ‘quality circle’ or simply ‘work team’. The team generally consists of eight to ten members from a common work area who meet at fixed intervals, say once a week, to find solutions to specific problems about the work processes, products or services. A problem solving team has a clear and specific focus on process improvement within a single work unit. Such teams have limited power to implement their ideas. Organizations can establish such teams without making major organizational changes, because they operate in parallel with the rest of the structure. 1.14.2 Self-managed work teams It is a team of typically ten to fifteen members who perform highly related or interdependent jobs and take on many of the responsibilities of their former supervisors. These tasks include planning and scheduling work, assigning tasks to members, making operating decisions, taking action on problems and working with suppliers and customers. Fully self-managed work teams even select their own members and evaluate team performance. As a result, supervisory positions decrease in importance and may even be eliminated. These teams do not typically manage conflicts well. When disputes arise, members stop co-operating which lowers group performance. 1.14.3 Cross-functional teams This team is a small group of interdependent employees from various functional areas of the organization – depending on the organizational need. These teams work, operate or communicate across different functions within an organization. The team is formed to handle a specific problem. Such teams work on simpler tasks and their membership fluidity is very high as members come and go over time. These teams are an effective means of allowing people from diverse areas within or even between organizations to exchange information, develop new ideas, solve problems and coordinate complex projects. Their early stages of development are often long, as members learn to work with diversity and complexity. It takes time to build trust and teamwork, especially among people from different backgrounds with different experiences and perspectives. 1.14.4 Virtual teams A virtual team allows the members to meet without concern for space or time and enables organizations to link the workforce together. Team members rely heavily on the use of technology to receive tasks, achieve business goals, solve day-to-day problems, provide feedback, keep all members aware, share success, encourage achievements etc. Geographic dispersion never appears as a roadblock. For virtual teams to be effective, management should ensure that: (1) Trust is established among members. (2) Team progress is monitored closely so that the team does not lose sight of its goals and no team member ‘disappears’ and (3) The efforts and products of the team are publicized throughout the organization so the team does not become invisible. 1.15 Team efficacy Effectiveness is the extent to which the planned activities are realized and planned results are achieved. Defining team effectiveness is a difficult task. Effectiveness has several dimensions as under:  Loyalty to other members and the leader.  Confidence of leader and members.  Members communicate with openness.  Members do not hesitate to take decision; they feel secure.  Activities of the group occur in a supportive and encouraging manner.  Group goals and individual goals are more or less congruent.  Satisfaction of team members. Effective teams begin by analyzing the team’s mission, developing goals to achieve that mission, and creating strategies for achieving the goals. Teams, that establish a clear sense of what needs to be done and how, consistently perform better. Members of successful teams put a tremendous amount of time and effort into discussing, shaping and agreeing on a purpose that belongs to them both collectively and individually. This common purpose, when accepted by the team provides direction and guidance under any and all conditions. Effective teams reflect on and adjust their master plan when necessary. A team has to have a good plan, but it also has to be willing and able to adapt when conditions call for it. Successful teams translate their common purpose into specific, measurable and realistic performance goals. Specific goals facilitate clear communication. They also help teams maintain their focus on getting results. Team goals should also be challenging. Difficult goals raise team performance on those criteria for which they are set. Goals for quantity tend to raise quantity; goals for accuracy tend to raise accuracy. Effective teams have confidence in themselves; they believe they can succeed. Teams that have been successful raise their beliefs about future success, which, in turn, motivates them to work harder. Management have two options to increase team efficacy one is helping the team achieve small successes that build confidence and other is providing training to improve members’ technical and interpersonal skills. The greater the abilities of team members, the more likely the team will develop confidence and the ability to deliver on that confidence. Effective teams share accurate mental models – knowledge and beliefs about how the work gets done. If team members have the wrong mental models, which particularly is likely with the teams under acute stress, their performance suffers. The similarity of team members’ mental models matters, too. If team members have different ideas about how to do things, the team will fight over how to do things rather than focus on what needs to be done. Effective team has members who have mutual trust. It is important because if they do not, it can drain energy and creativity which adversely affects performance. Empathy the team members have is strongly related to the ability of the team to communicate effectively regarding difficult issues without affecting the dignity of others. Effective team shows flexibility. The team members are open and sensitive to outside influence and contribution. Team members often ask questions to themselves and verify – whether they respond to the changes, does the extent of communication with the teams around them fulfill team needs, whether they listen, respond as well as tell, to clarify various issues. Effective team’s members ‘feel good’. The members believe in ‘success breeds success’ and recognize and enthuse each other for their contribution. The members of effective team have very high morale and they take pride in being a member of the team. Conflict in a team isn’t necessarily bad. Conflict – not all types – can actually improve team effectiveness. Relationship conflicts – those based on interpersonal incompatibilities, tension and enmity towards others – are almost always dysfunctional. However, on teams performing non routine activities, disagreements among members about task content stimulate discussion, promote critical assessment of problems and options, and can lead to better team decisions. The way conflicts are resolved can also make the difference between effective and ineffective teams. Individuals can engage in social loafing and boast on the group’s effort because their particular contributions can’t be identified. Effective teams undermine this tendency by making members individually and jointly accountable for the team’s purpose, goals and approach. Therefore, members should be clear on what they are individually responsible for and what they are jointly responsible for in the team. 1.16 Turning individuals into team players In order to perform well as team members, individuals must be able to communicate openly and honestly with one another, to confront differences and resolve conflicts, and to place lower priority on personal goals for the good of the team. The challenges for management are less when teams are introduced where employees have strong collective values. In new organizations, the challenge of forming teams will be less as they start the journey using the concept of working in teams as their initial form. These organizations structure the work system and form departments accordingly. 1.17 Shaping team behaviour Productive teams require careful selection of personnel and their training, development and management. Guidelines for building effective teams include seeking employee input, establishing rules and norms, and enhancing their skills to act in a team. The behaviours of team members can be shaped in three popular ways including proper selection of personnel, employee training and rewarding appropriate team behaviours. When selecting team members, the organization should ensure that applicants can fulfill their team roles. A person should not be selected as a team player if he/she lacks team skills. Otherwise the effort may go astray. Performing well in a team involves a set of behaviours, which can be induced by an experienced trainer or coach who can administer exercises to let employees know and experience the satisfaction that teamwork can provide. Organizations should preferably design the reward system with the ultimate aim to encourage co-operative efforts rather than competitive ones. Rewards must be structured to return a percentage increase in the bottom line to team members on the basis of achievement of team’s performance goals. 1.18 Let us sum up People together in the same place or connected to each other in some way, form a group. The social process through which people interact face to face in small groups is called group dynamics. In an organization the reasons for which people form groups can be for affiliation, security, esteem, power, identity and accomplishment. Groups can be either formal or informal. Groups proceed through five-stages of group development. Work groups have properties such as Role, Norms, Status, Size and Cohesiveness. Groups are excellent vehicles for performing many of the steps in the decision making process and offers both breadth and depth of input for information gathering. Two by-products of group decision making are – group think and group shift. Groups make decisions through interaction, brainstorming, nominal group technique and also through ‘electronic meeting’. A team differentiates itself from a group on various dimensions. The four most common types of teams that are found in an organization are – problem solving teams, self-managed work teams, cross-functional teams, and virtual teams. Effective teams begin analyzing the team’s mission, developing goals to achieve that mission and creating strategies for achieving goals. 1.19 Key words Group Dynamics, Affiliation, Self-Esteem, Informal Group, Forming, Storming, Norming, Hierarchy, Group Structure, Role Perception, Role Expectation, Role Conflict, Status, Social Loafing, Cohesiveness, Conformity, Consensus, Interpersonal Communication, Cost-Benefit Trade Off, Characteristics, Interdependence, Group Performance, Organization Structure. Concepts Group: Two or more people together in the same place or connected in some way; Two or more interacting and interdependent individuals coming together. Group Dynamics: The social process by which people interact face to face in small groups. Security: The basis for group formation among people. Informal group: Natural formation of people that appear in the work environment in response to the need for social contact. Command group: A group composed of individuals who report directly to a given Manager. Task group: Organizationally determined individuals working together to complete a task. Role: A set of expected behaviour patterns attributed to someone occupying a given position in an organization. Role perception: One’s own view of how one is supposed act in a given situation. Role expectation: The way others believe you should act in a given context. Role conflict: A situation in which an individual is confronted by different role expectations. Norms: Acceptable standards of behaviour. Status: A socially defined position given to a group or group member. Social Loafing: A tendency among individuals to expend less effort when working collectively. Cohesiveness: The degree to which members are attracted or attached to each other and motivated to stay in a group. Group think: A group decision in which the norm for consensus overrides a realistic appraisal of alternative courses of action. Group shift: A change in decision risk between a group’s decision and an individual decision. Brain storming: Various alternative solutions suggested for a problem by members of a group without any judgment or criticism. Nominal group technique: Restricting discussion or interpersonal communication during the decision making process in a group. Individual: An important member of a group. Team: A group of members committed to common goal. Cross functional teams: A group of interdependent employees from various functional areas. Virtual team: A group of members connected and interacting through Computers, to receive tasks solve day-to-day problems, providing feedback, sharing information etc. 1.20 Check your progress -questions 1. State whether each of the following statements are ‘True’ or ‘False’. (a) The strongest reason for formation of a group among humans is security. (b) Group Dynamics is a social process by which people interact face to face with each other in groups. (c) An individual cannot increase his/her self-esteem through group membership. (d) An informal group is neither formally structured nor organizationally determined. (e) A task group is an informal group. (f) A group-development model consists of four stages. (g) Organizational change also contributes to role conflict. (h) Allowing freedom to individuals may reduce social loafing. (i) Threat from outside a group produces cohesiveness in a group. (j) With increase in size the cohesiveness of group increases. (k) Group think and group shift are the by-products of group decision making. (l) No criticism is allowed during brain storming. (m) The way the conflicts are resolved can make the difference between an effective and an ineffective team. (n) In an electronic meeting many participants can simultaneously ‘talk’. 2. Fill in the blanks of the following sentences with appropriate word(s) (a) The social process by which people _____________ face to face in small groups is called Group Dynamics. (b) People feeling of insecurity can be lessened by ____________________. (c) A _____________ group is determined by the organizational chart. (d) For permanent work groups, __________________ is the last stage in development. (e) Our view of how we are supposed to act in a given situation is _________________. (f) ________________ is a situation in which individual is confronted by divergent expectations. (g) The adjustment of one’s behaviour to align with the norms of the group is called _________. (h) Status is a significant motivator and has major _______________ consequences when individuals perceive a disparity between what they believe their status is and what other perceive it to be. (i) A group takes more _________ to take a decision if the size is large. (j) Group _____________ is the force that brings group members closure together. (k) _____________ and social interaction have been found to be both causes and effects of cohesiveness. (l) The first phenomenon is group think – in which the norm for __________ over rides the realistic appraisal of alternative courses of action. (m) ______________ can overcome the pressures for conformity that dampen creativity by encouraging any or all alternatives while with holding criticism. (n) A ______ is a mature group with highly independent members who are totally committed to common goal. (o) A ________ allows the members to meet without concern for space or time and enables organizations to link the workforce together. Key to check your progress 1. True or False (a) True (b) True (c) False (d) True (e) False (f) False (g) True (h) False (i) True (j) False (k) True (l) True (m) True (n) True 2. Fill in the blanks (a) interact (b) group membership (c) command (d) performing (e) role perception (f) Role conflict (g) conformity (h) behavioural (i) time (j) cohésion (k) Communication (l) consensus (m) brainstorming (n) team (o) virtual team 1.21 Terminal questions (MCQs) 1. Reasons people join group include - a. Affiliation and security b. Esteem and power c. Identity and Accomplishment d. All a, b and c 2. The first stage in group development model is – a. Norming b. Adjourning c. Forming d. Storming 3. Following can not be a step for encouraging group cohesiveness – a. Making the group larger b. Encouraging agreement with group goals. c. Increasing the time members spend together. d. Stimulating competition with other groups 4. Which of the following is / are dimension/s found in team? a. Members practice open and honest communication. b. Members are grouped for administrative purpose. c. Win-lose situation d. both b and c Key to Terminal questions (MCQs) 1–d 2–c 3–a 4–a 1.22 Terminal questions 1. Explain briefly various reasons as to why people form or join a group? 2. What are the different types of groups? Explain briefly their differences. 3. Explain the different stages in a five-stage group-development model. 4. How is Role conflict handled in a group? 5. Write a brief note on ‘Norms’ in a group. 6. What is social loafing? What are the ways to prevent the same? 7. What are the effects of cohesiveness in a group? 8. What are the various group decision making techniques? Which among them is effective? 9. What are the dimensions that differentiate a team from a group? 10. Briefly explain the four common types of teams in an organization. 2 Unit No. 2 – Leadership and Change Management 2.1 Objectives 2.2 Introduction 2.3 Leaders and Managers 2.4 Leadership Theories 2.5 Charismatic Leadership 2.6 Transformational Leadership 2.7 Transformational Vs Charismatic Leadership 2.8 Coaching/Mentoring/Counseling 2.8.1 Coaching 2.8.2 Mentoring 2.8.3 Counseling 2.9 Change Management 2.9.1 Costs & Benefits 2.10 Resistance to Change 2.10.1 Possible Tactics for Change Agents to Succeed 2.11 Kurt Lewin’s Change Model 2.11.1 Unfreeze 2.11.2 Change 2.11.3 Refreeze 2.12 Force Field Analysis 2.13 Kotter’s 8 Step Plan for Implementing Change 2.14 Action Research 2.15 Organisational Development 2.15.1 Objectives 2.15.2. Organisational Self Renewal 2.15.3 Understanding Organisation 2.16 Modern Developments 2.17 Groups of Interventions 2.18 Creating a Culture for Change 2.18.1 Stimulating Culture Revolution 2.18.2 Creating a Learning Culture 2.19 OCTAPACE 2.19.1 Openness 2.19.2 Confrontation 2.19.3 Trust 2.19.4 Authenticity 2.19.5 Proaction 2.19.6 Autonomy 2.19.7 Collaboration 2.19.8 Experimentation 2.20 Let us sum up 2.21 Key words/ concepts 2.22 Check your progress _questions Key to check your progress 2.23 Terminal questions with answers 2.1 Objectives The objectives of this lesson are to understand  What is Leadership?  Attributes of Leaders  To understand effective leadership behaviour  Theories of effective leaderships  Leadership styles  What is change and change management?  Impact of Change Management  Importance of Change Management.  What is meant by organisational development?  Understanding the organisation  Methodologies for organisational developments and  New techniques available 2.2 Introduction With the advent of information technology-based services and business process outsourcing industry, the Indian economy is growing at a rapid pace. As such attracting and retaining talent is the key issue for organizations. Organizations constantly strive to improve the multi-skilling and multi-tasking abilities of employees outsource several business processes, control costs, reduce overheads and undertake similar measures. Thereafter, the strategic challenge for organizations is to develop leaders fast enough to keep up with the growth of the business and cope up with the ongoing changes in the environment. Organizations need strong leadership and management for optimal effectiveness. Today leaders are required to challenge the status quo, create visions of the future and inspire organizational members to achieve the set visions. Business organizations are now operating in a dwindling business environment – domestic and international – and in a global village. Most of the modern industrialized world is unable to extract the best from the available human resources. We are constrained by the level of employee productivity. Huge investments are made in technology up gradation, process improvement, structuring system and so forth. Improving human productivity must be a never ending effort. Most of the organizations are focusing on the available human inventory. Performance excellence leads to business excellence which is “Doing the simple things perfectly so that more time and money can be spent on the more complex issues.” 2.3 Leaders and Managers The difference between management and leadership is that management brings about order and consistency by drawing up formal plans, designing rigid organization structures and monitoring results against the plans. Leadership in contrast, is about coping with change. Leadership is the ability to influence a group towards the achievement of a vision or set of goals. Leaders establish direction by developing a vision of the future; then they align people by communicating this vision and inspiring them to overcome hurdles. Just because an organization provides its managers with certain formal rights is no assurance they will lead effectively. Neither all managers are leaders, nor, for that matter, all leaders are managers. Non-sanctioned leadership – the ability to influence that arises outside the formal structure of organization – is often more important than formal influence. Leaders, as such can emerge from within a group as well as by formal appointment. Following can be the distinction between a leader and a manager, dimension wise. Dimension Leader Manager Task performance Controls activities, Creates activities, processes, systems etc. processes systems etc. Performing repetitive Keeps track of activities, Finds new ways of tasks processes, systems etc. performing; changes activities, processes, systems etc. Resource utilization Prepares and uses Finds resources resources Developmental Plans and executes policy. Defines the mission or inclination gets the mission fulfilled. Activities Runs the business. Develops the business Business development. Organizes actions. Creates an environment. Product and service Solves problems. ‘Shakes things up’ creation New customers and Is conservative and Aligns people; takes clients cautious calculated risks Customer relationship Copes with complexities Sets directions. Rules and regulations Complies with rules and Is imagination based. follows systems Locus of control External. Internal (and external) Interaction with Interacts internally; keeps Interacts with outsiders; outsiders people in line with inspires people systems Responsibility Is responsible for specific Is responsible for overall production, planning and outcome and impact. sales performance Work independence Deductive process Inductive process Major viewpoint Creates structure, avoids Create mandates, takes risks risk Monitoring arena Monitors organizational Monitors outside culture. culture The people Subordinates Followers below/around 2.4 Leadership Theories Throughout the history, strong leaders – Buddha, Napoleon, Mahatma Gandhi, Mao and Churchill – have been described in terms of traits. Trait theories of leadership thus focus on personal qualities and characteristics. We recognize Steve Jobs, Nelson Mandela, Abraham Lincoln, Narayana Murthy etc. as charismatic, enthusiastic and courageous. The search for personality, social, physical or intellectual attributes that differentiate leaders from non-leaders goes back to the earliest stages of leadership research. Early research efforts at isolating leadership traits resulted in a number of dead ends. A breakthrough came when researchers began organizing traits around Big Five personality frame work (extraversion, agreeableness, conscientiousness, emotional stability and openness to experience). Most of the traits in various leadership reviews fit under one of the Big Five, giving strong support to traits as predictors of leadership. A comprehensive review of the leadership literature, when organized around the Big Five, has found extraversion to be the most important trait of effective leaders but more strongly related to leader emergence than to leader effectiveness. Sociable and dominant people are more likely to assert themselves in group situations, but leaders need to make sure they are not too assertive – one study found leaders who scored very high on assertiveness were less effective than those who were moderately high. Unlike agreeableness and emotional stability, conscientiousness and openness to experience also showed strong relationship to leadership, though not as strong as extraversion. Overall, the trait approach does have something to offer. Leaders who like being around people and are able to assert themselves (extraverted), disciplined and able to keep commitments they make (conscientious), creative and flexible( (open) do have an apparent advantage when it comes to leadership, suggesting good leaders to have key traits in common. Other reason is that conscientiousness and extraversion are positively related to leader’s self – efficacy. People are more likely to follow someone who is confident that he/she is going in the right direction. Another trait that may indicate effective leadership is emotional intelligence (EI). A person can have outstanding training, a highly analytical mind, a compelling vision and an endless supply of terrific ideas but still cannot make a great leader. This may be especially true as individuals move up in an organization. EI is so crucial to effective leadership because a core component of EI is empathy. Empathetic leaders can sense other’s needs, listen to what followers say (as also don’t say) and read the reactions of others. The link between EI and leadership effectiveness is still much less investigated than other traits. Based on the latest findings, two conclusions that can be derived are – first, traits can predict leadership. Earlier, the evidence suggested otherwise. Second, traits do a better job of predicting the emergence of leaders and the appearance of leadership than actually distinguishing between effective and ineffective leaders. The fact that an individual exhibits the traits and others consider that person to be a leader does not necessarily mean the leader is successful at getting his/her group to achieve its goals. The failures of early trait studies led researchers to go in a different direction. They wondered whether there was something unique in the way effective leaders behave. Trait research provides a basis for selecting the right people for leadership. In contrast, behavioural studies implied we could train people to be leaders. Many argued that behavioural theories of leadership had advantage over trait theories. The study narrowed down to two dimensions that substantially accounted for most of the leadership behaviour described by employees. Researchers call these initiating structure and consideration. Initiating structure includes behaviour that attempts to organize work, work relationships and goals. A leader high in initiating structure is someone who ‘assigns group members to particular tasks’ ‘expects workers to maintain definite standards of performance’ and ‘emphasizes the meeting of deadlines’. Consideration is the extent to which a person’s job relationships are characterized by mutual trust, respect for employee’s ideas and regard for their feelings. A leader high in consideration helps employees with personal problems, is friendly and approachable, treats all employees as equals and expresses appreciation and support. However, a recent review of studies found the followers of leaders, who are high in consideration, were more satisfied with their jobs, were more motivated and had more respect for their leaders. Initiating structure was more strongly related to higher levels of group and organization productivity and more positive performance evaluations. Some tough minded leaders seem to gain a lot of admirers when they take over struggling companies and lead them out of the doldrums. However, such leaders also seem to be quickly dismissed when the situation stabilizes. Under contingency theory, the first comprehensive contingency model for leadership was developed by Fred Fiedler. The Fiedler contingency model proposes that effective group performance depends on the proper match between the leader’s style and the degree to which situation gives the leader control. He created the least preferred co-worker (LPC) questionnaire to identify that style by measuring whether a person is task or relationship oriented. The LPC questionnaire asks respondents to think of all the co- workers they have ever had and describe the one person they least enjoyed working with by rating that person on a scale of 1 to 8 for each of 16 sets of contrasting adjectives such as – pleasant / unpleasant, efficient / inefficient, open / guarded, supportive / hostile etc. If you describe the person you are least able to work with in favorable terms (a high LPC score), Fiedler would label you relationship oriented. In contrast, if you see your least-preferred co-worker in relatively unfavorable terms (a low LPC score), you are primarily interested in productivity and are task oriented. Fiedler assumes an individual’s leadership style is fixed. This means if a situation requires a task oriented leader and the person in the leadership position is relationship oriented, either the situation has to be modified or the leader has to be replaced to achieve optimal effectiveness. After assessing an individual’s basic leadership style through the LPC questionnaire, we match the leader with the situation. Fiedler has identified three contingency or situational dimensions. 1. Leader-member relations is the degree of confidence, trust and respect members have in their leader. 2. Task structure is the degree to which the job assignments are structured or unstructured. 3. Position power is the degree of influence a leader has over power variables such as hiring, firing, discipline, promotions and salary increases. There are eight possible combinations of these three variables in the work situation. The situation can be then evaluated on these three variables. Leader-member relations can be good or bad; tasks may be structured or unstructured; and position power may be strong or weak. According to Fiedler the job is more highly structured if the leader-member relations are better and the leader has more control if the position power is stronger. Fiedler’s Bipolar Adjectives Pleasant 8 7 6 5 4 3 2 1 Unpleasant Friendly 8 7 6 5 4 3 2 1 Unfriendly Rejecting 1 2 3 4 5 6 7 8 Accepting Helpful 8 7 6 5 4 3 2 1 Frustrating Unenthusiastic 1 2 3 4 5 6 7 8 Enthusiastic Tense 1 2 3 4 5 6 7 8 Relaxed Distant 1 2 3 4 5 6 7 8 Close Cold 1 2 3 4 5 6 7 8 Warm Co operative 8 7 6 5 4 3 2 1 Uncooperative Supportive 8

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