MBA 101 Module I PDF

Amity Business School Organisational Behaviour Course Code: MBA 101 Module I Introduction and Individual Behavior Dr. Mini Agrawal 1  Amity Business School You will learn...

Amity Business School Organisational Behaviour Course Code: MBA 101 Module I Introduction and Individual Behavior Dr. Mini Agrawal 1  Amity Business School You will learn to: Introduction- Understanding Organizational Behavior Nature and structure of organization Understanding Organizational Behavior Foundations of individual behavior-Ability, Attitude, Job Satisfaction, Personality, Values , Perception, Motivation–Theories, leadership  Amity Business School Introduction Understanding Organizational Behavior  Amity Business School FACT ! Globant (Software development company) has become a highly successful technology company by applying teamwork, design thinking, an inclusive culture, and many other organizational behavior practices  Amity Business School Organizational Behavior and Organizations Organizations. – Groups of people who work interdependently toward some purpose. Behavior: – It is how a person behaves. It is an observable and measurable activity of human being. Organizational behavior (OB): – Studies what people think, feel, and do in and around organizations.  Amity Business School Organization An organization is a group of people working together in a formally organized way to achieve a common objective. The main objective is profit maximization. Features of an organization :- Group of people Formally organized people/structure Co-ordination among people Rationality Purposefully created to achieve a common goal  Amity Business School Functions of organization Determination of activities Grouping of activities Allotment of duties to specified persons Functions of Organization Delegation of authority Defining relationships Coordination of various activities  Amity Business School Main Functions of organization 1. Determination of Activities: It includes the deciding and division of various activities required to achieve the objectives of the organization. The entire work is divided into various parts and again each part is sub-divided into various sub- parts. For example, the purchase work may be divided into requisition of items, placing of an order, storage and so on. 2. Grouping of Activities: The next function of organization is that the identical activities are grouped under one individual or a department. The activities of sales such as canvassing, advertisements and debt collection activities are grouped under one department i.e., sales department.  Amity Business School Main Functions of organization 3. Allotment of Duties to Specified Persons: In order to ensure effective performance, the grouped activities are allotted to specified persons. In other words, the purchasing activities are assigned to the Purchase Manager; the production activities are assigned to Production Manager; the sales activities are assigned to Sales Manager and the like. Besides, adequate staff members are appointed under the specified persons. The specified persons are specialized in their respective fields. If there is any need, appropriate training would be provided to such persons.  Amity Business School Main Functions of organization 4. Delegation of Authority: Assignment of duties or allotment of duties to specified persons is followed by delegation of authority. It will be very difficult for a person to perform the duties effectively, if there is no authority to do it. While delegating a authority, responsibilities are also fixed. Thus, the Production Manager may be delegated with the authority to produce the goods and fixed with the responsibility of producing quality goods. 5. Defining Relationship: When a group of persons is working together for a common goal, it becomes necessary to define the relationship among them in clear terms. If it is done, each person will know who is his boss, from whom he has to receive orders and to whom he is answerable. In another sense, each boss should know what authority he has and over which person.  Amity Business School Main Functions of organization 6. Co-Ordination of Various Activities: The delegated authority and responsibility should be coordinated by the Chief Managerial Staff. The reason is that there must be a separate and responsible person to see whether all the activities are going on to accomplish the objectives of the organization or not.  Amity Business School Nature and structure of organization  Amity Business School Organizational Structure The organization structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources in an organization. Under the organizational structure, various posts are created to perform different activities for the attainment of the predetermined objectives of the enterprise. The structure provides a basis or framework for managers and other employees to perform their functions. Span of management refers to the number of subordinates that can be effectively managed by a superior. The Span of management largely gives shape to the organization structure. This determines the levels of management in the structure.  Amity Business School 1. FUNCTIONAL STRUCTURE: In functional structure activities are grouped and departments are created on the basis of specific functions to be performed. For example, all the jobs related to production are grouped under production department, sales departments etc.  Amity Business School ADVANTAGES DISADVANTAGES SUITABILITY Functional structure leads to A Functional structure gives occupational specialisation more imortance to the Organizations which require since emphasis is placed on objectives of functional head high degree of functional specific functions. than the objectives of specialization with Promotes efficiency in the organization diversified activities. utilisation of man power. Lack of coordination among Large organizations Promotes control and different departments. producing one line of coordination within a A conflict of interests will product. department. arise within different It helps in increasing departments. managerial and operational It may lead to inflexibility efficiency. due to narrow perspective of it reduces duplication of employees. work. It helps in training employees easily. It ensures that different functions get due attention.  Amity Business School 2. DIVISIONAL ORGANIZATION STRUCTURE Dividing the whole enterprise according to the major products to be manufactured (like metal, plastic, cosmetics etc.) is known as divisional organization structure.  Amity Business School Product specialisation helps in the overall development of the skills of departmental heads. It helps in the fixation of responsibility and accountability of departmental heads ADVANTAGES provides a proper basis for assessing performance and results of each division. It facilitates expansion and growth, as new divisions can be added without interupting existing divisions Conflicts may arise among different divisions on allocation of resources. It may lead to increase in costs since there may be a duplication of activities in different product divisions. DISADVANTAGES It provides managers with the authority to supervise all activities related to a particular division. This structure is suitable in organizations producing multi product or different lines of products requiring product specialization. Growing companies which intend to add more lines of products in future adopt this SUITABILITY structure.  Amity Business School Basis Functional Structure Divisional Structure Formation is based on Formation Is based on product lines and is Formation functions supported by functions Specialisation Functional specialisation Product specialization Difficult to fix on a Easy to fix responsibility for Responsibility department performance Difficult, as each functional Duplication of resources in Managerial manager has to report to the various departments, hence Development top management costly Duplication of resources in Functions are not duplicated various departments, hence Cost hence economical costly. Easy, because all functions related to a particular product Difficult for a multiproduct are integrated in one Coordination company. department.  Amity Business School Comparative view: Functional and Divisional Structure 3. FORMAL ORGANIZATION Formal organization refers to the organization structure that is designed by the management to accomplish organizational goals. In a formal organization the boundaries of authority & responsibility is clearly defined and there is a systematic coordination among the various activities to achieve organizational objectives.  Amity Business School Features Advantages Disadvantages It clearly defines the lines Easier to fix May lead to of authority and responsibility since procedural delays as responsibility for every mutual relationships chain of command individual in an are clearly defined has to be followed. organization. It helps in avoiding Rigid policies It is a means to achieve the duplication of work reduces creativity. objectives specified in the Unity of command More emphasis is on plans. is structure and work It is impersonal and maintained than on human doesn’t take into Effective relationships. consideration emotional accomplishment of aspect of the employees. goals. it is designed by the top Provides stability in management. organization. It is created with the motive of achieving organizational objectives.  Amity Business School 4. INFORMAL ORGANIZATION Interaction among people at work gives rise to a ‘network of social relationships among employees’ called the informal organization. The main purpose of this organization structure is the psychological satisfaction of the employees with common interests. For example, employees with similar interest in books, films, religion etc. may form their own informal groups.  Amity Business School FEATURES ADVANTAGES LIMITATIONS It originates from the It leads to faster Informal organization personal interaction of spread of information spread rumours, employees within a and feedback as sometimes it goes organization. formal channels of aginst the interests of The standards of communication is not the organization. behaviour evolve from followed. It resists change and group norms. It enhances job lays stress on adopting It doesnt have fixed satisfaction and a the old techniques. channels of sense of Members of the communication. belongingness in the group may give more It emerges organization. priority to group spontaneously $ not It provide quick interests over the created by management. solutions to the organizational It is a complex network problems. objectives. of social relationships among members.  Amity Business School Difference between Formal Informal organization Basis Formal organization Informal Organsiation It refers to the network of social relationships arising It refers to the structure of out of interaction among Meaning well defined authority and employees As a result of company rules Arises as a result of social Origin and policies interaction Arises by virtues of positions Arises out of personal Authority in management qualities. Violations of rules may lead to No such penalties and Adherence to rules penalties and punishments. punishments. Not through a planned route, Flow to Communication takes place it can take place in any Communication through the scalar chain direction. To satisfy social and cultural To achieve planned needs and fulfill common Purpose organizational objectives. interests Nature Rigid Flexible  Amity Business School Well defined No clear cut structure because structure of tasks of complex network of Structure and relationships. relationships. Authority flows from top to bottom Authority flows vertically as Flow of Authority i.e. downwards. well as horizontally. Leaders may or may not be managers. They are chosen Leadership Managers are leaders by the group.  Amity Business School Understanding Organizational Behavior  Amity Business School Definition of OB According to Keith Davis “Organizational Behavior is the study and application of knowledge about how people act with in the organization”. Therefore Organization Behavior is concerned with two aspects:- How people behave in an organization? How their behaviour does affect their performance?  Amity Business School Feature of OB On the basis of above mentioned definitions and different views, features of Organizational Behavior can be defined in the following manner:  Amity Business School Organizational Behaviour – Scope  Amity Business School Organizational Behaviour – Level OB can be defined as actions and behaviors of individuals and groups towards and their impact on the organization’s overall functioning and performance. OB can be studied at various levels within an organization, and each level has a unique set of roles, responsibilities, and goals. Following points discuss the three levels briefly: 1. Individual Level – Deals with the concepts at the individual level. Examples of individual-level concepts are perception, personality, learning, motivation, and attitude.  Amity Business School Organizational Behaviour – Level 2. Group Level – Deals with the concepts at the group level. Examples of group-level concepts are team, conflict, leadership, power, and politics. Group-level concepts may include how groups are formed, how to make effective teams, how individually and collectively the group activities can be improved, how to motivate employees, and which type of group would be suitable for a particular assignment. 3. Organizational Level – Deals with the concepts at the organizational level. Examples of organizational-level concepts are change management and organizational culture. Other topics discussed at organizational level include the concept of organization, different organizational models, and organizational change along with its impact and implementation. The working conditions and stress management are also discussed at the organizational level.  Amity Business School Foundations of Individual Behavior- Ability, Attitude, Job Satisfaction, Personality, Values , Perception, Motivation–Theories, leadership  Amity Business School Individual behavior in the Organization  Amity Business School WHY LOOK AT INDIVIDUAL BEHAVIOR? Organizational behavior addresses problems that are not clear and obvious. Like and iceberg, OB has small visible dimensions and much larger hidden part.  Amity Business School Individual behavior in the Organization There are millions of stars in the sky, but every star is different. Similarly, there are millions of people in the universe, but each person is different from the multiple perspectives. Organizations are composed of individuals. Each individual is different from each other on the basis of different psychological factors such as motives, aspirations, perceptions and abilities. Individual behavior can be defined as a mix of responses to external and internal stimuli. It is the way a person reacts in different situations and the way someone expresses different emotions like anger, happiness, love, etc.  Amity Business School Variables Influencing Individual Behavior Psychologist Kurt Lewin The Person The Environment Skills & abilities Organization Personality Work group Perceptions Job Attitudes Personal life Values Ethics where, B – Behavior, Behavior F - Behavior Function, P – Person, and B = f(P,E) E - Environment around the person  Amity Business School Factors Influencing Individual Behavior  Amity Business School Factors Influencing Individual Behavior Biographic Characteristics: Biographic characteristics are genetic nature and are inherited by individual by their parents or forefathers. These are gifted features that an individual possesses by birth. All of these biographic characteristics are listed below: – Psychical Characteristics- Personal characteristics relates to skin, complexion, vision, height, weight, size of nose etc. which influence the performance of individual. A person with good physical characteristics have an attractive personality, they dress well and behave gently in an organization. Age- Age is an individual inherited characteristic that is determined by date of birth. Young people are expected to be more efficient, energetic, risk-taking, innovative and ambitious.  Amity Business School Factors Influencing Individual Behavior Biographic Characteristics: Gender- Gender is an inherited characteristic as being a men or women is genetic in nature. Woman are expected to be more emotional than men and generates high turnover rates. It is due to more likeness of woman quitting their job citing personal reasons. Religion- Religious values of individual influence distinct aspects of his/her behavior in organization. Highly religious person is stricter towards following moral values, ethics and code of conduct while performing their roles. Marital Status- Researcher indicated that with marital status, responsibilities of individual get inclined and for them having steady proper job becomes more important. Such employees have less absences, low turnovers and more job satisfaction.  Amity Business School Factors Influencing Individual Behavior Learned Characteristics: Learned characteristics refers to the changes in persons behavior that comes from his/her interactions with environment. Personality- Personality solely do not refer to physical characteristics of person but indicates the growth of individual’s psychological system. These are the personal traits of persons that comprises of patience, extrovertness, dominance, aggressiveness etc. Perception- It is a viewpoint of individual through which it interprets a particular situation. Perception is defined as a process via which information enters mind and an interpretation takes place for providing some sensible meaning to world.  Amity Business School Factors Influencing Individual Behavior Learned Characteristics: Values- These are global beliefs that guides distinct actions and judgements in several situations. It comprises of idea of an individual that is based on good, right and desirable opinions. Attitudes- The term ‘Attitude’ is very common and used in everyday life to describe people’s behavior. It is a way of organizing a perception. In general, a person may have a positive attitude which means a good outlook of life, or negative attitude which means continuous complaining about problems in life. For example, if you showed a glass half-filled with water to A and B and asked them to describe it. Amity Business School  Amity Business School Factors Influencing Individual Behavior Environmental Factors Employment level- Employment opportunities available within the country act as a major determinant of individual behavior. In case of less employment opportunities, he/she will remain stick to same job level irrespective of how much satisfaction is attained. However, if there are more employment opportunities available then employees will shift to other jobs. Wages Rate- Monetary compensation is a major factor that every employee considers before joining any organization. Therefore, a decision whether to stay in a particular company or shift anywhere else is taken on the basis of wages he/she is getting.  Amity Business School Factors Influencing Individual Behavior Environmental Factors General Economic Environment- Economic cycle in a country greatly influences the behavior of individual in an organization. They are subject to retrenchment and layoffs. Job security and a stable income are the most relevant factors of motivation for these type of employees. Whereas, employees of public sector undertakings are not affected by economic position within the country as they receive their fixed salaries irrespective of economic conditions. Political Factors- Political factors indirectly influences the behaviour of an individual. In a politically stable environment, there will be large opportunities of steady job positions. It will provide better freedom to individual which will influence their career choice, performance and job design.  Amity Business School Factors Influencing Individual Behavior Organizational Factors Physical Facilities- Physical environment at work place have a great influence on behaviour of individual. It comprises of factors like lighting, cleanliness, heat, noise level, office furnishing, strength of workers etc. Structure and Design- It is concerned with set-up design of departments within an organization. Individual behaviour is influenced by where an individual perfectly fits in a hierarchy of organization. Reward System- Fair reward system adopted by company for compensating its employees enhances the overall performance and behaviour of individual.  Amity Business School Personality  Amity Business School What is Personality? Personality The sum total of ways in which an individual reacts and interacts with others. Personality Traits Personality Enduring characteristics Determinants that describe an individual’s behavior. Heredity Environment Situation  Amity Business School Personality Personality can be defined as those inner psychological characteristics that both determine and reflect how a person think and act in an environment. The inner characteristics of personality are specific qualities, attributes, traits, factors and mannerism that distinguish one individual from other individuals. Personalities are likely to influence the individual’s product and store choices. They also affect the way consumer responds to a firm’s communication efforts. Personality is a pattern of stable states and characteristics of a person that influences his or her behaviour toward goal achievement. Each person has unique ways of protecting these states. Personality is the fundamental and foremost determinant of individual behaviour. It seeks to integrate the physiological and psychological facets of an individual to put them into action. Personality consists of an individual’s characteristics and distinctive ways of behaviour.  Amity Business School Personality Stephen P. Robbins “Personality is the sum total of ways in which an individual reacts and interacts with others.” Gordon Allport Personality as “the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment”. Fred Luthans “Personality is how people affect others and how they understand and view themselves, as well as their pattern of inner and outer measurable traits and the person situation interaction”  Amity Business School Personality Characteristics in Organizations Self-Esteem Feelings of Self Worth Success tends Failure tends to increase to decrease self-esteem self-esteem  Amity Business School Personality Characteristics in Organizations Self-Monitoring Behavior based on cues from people & situations High self-monitors Low self-monitors – flexible: adjust behavior – act from internal states according to the rather than from situation and the situational cues behavior of others – show consistency – can appear – less likely to respond to unpredictable & work group norms or inconsistent supervisory feedback  Amity Business School Who Is Most Likely to... Low-self High-self monitors monitors Get promoted Accomplish tasks, meet other’s expectations, seek out central positions  in social networks Change employers Self-promote  Make a job-related geographic move  Demonstrate higher levels of managerial self-awareness; base behavior on other’s cues and the situation  Amity Business School Personality Characteristics in Organizations Positive Affect - an individual’s tendency to accentuate the positive aspects of oneself, other people, and the world in general Negative Affect - an individual’s tendency to accentuate the negative aspects of oneself, other people, and the world in general  Amity Business School Personality Characteristics in Organizations A strong situation can overwhelm the effects of individual personalities by providing strong cues for appropriate behavior  Amity Business School Personality Characteristics in Organizations Strong personalities will dominate in a weak situation  Amity Business School Determinants of Personality Heredity Factors Situational Factors Determinants Cultural of personality Factors Social Family Factors Factors  Amity Business School 1. Heredity :- There are some genetic factors that play a part in determining certain aspects of what we tend to become. Whether we are tall or short, experience good health or ill health, are quickly irritable or patient, are all characteristics which can, in many cases, be traced to heredity. 2. Culture: The culture and the values we are surrounded by significantly tend to shape our personal values and inclination. Thus, people born in different cultures tend to develop different types of personalities which in turn significantly influence their behaviours. India being a vast country with a rich diversity of cultural background provides a good study on this.  Amity Business School 3. Family Background: The socio-economic status of the family, the number of children in the family and birth order, and the background and education of the parents and extended members of the family such as uncles and aunts, influence the shaping of personality to a considerable extent. 4. Experiences in Life: Whether one trusts or mistrusts others, is miserly or generous, have a high or low self esteem and the like, is at least partially related to the past experiences the individual has had 5. People We Interact With "A Person is known by the company he or she keeps" is a common adage. The implication is that people persuade each other and tends to associate with members who are more like them in their attitudes and values  Amity Business School Type of Personality or Major Personality Attributes Influencing OB 4–58 © Amity Business School  Amity Business School Personality – How to Predict Personality Traits? Personality traits reflect people’s characteristic patterns of thoughts, feelings, and behaviors. These imply consistency and stability; someone who scores high on a specific trait like Extraversion is expected to be sociable in different situations and over time. Thus, trait psychology rests on the idea that people differ in terms of where they stand on a set of basic trait dimensions that persist over time and across situations. Understanding and classify what makes people who they are has been a longstanding challenge in the world of personality psychology. Numerous theories and models have been developed over the years to better understand aspects of human personality.  Amity Business School Major Personality Attributes Influencing OB Core Self-Evaluation Narcissism Locus of control Self-esteem Self Efficacy Self-monitoring Risk taking Type A Personality Proactive Personality  Amity Business School Core Self-Evaluation People who have positive core self-evaluations like themselves and see themselves as effective, capable, and in control of their environment. Those with negative core self-evaluations tend to dislike themselves, question their capabilities, and view themselves as powerless over their environment.  Amity Business School Narcissism Narcissists often want to gain the admiration of others and receive affirmation of their superiority, they tend to “talk down” to those who threaten them, treating others as if they were inferior. Narcissists also tend to be selfish and exploitive and believe others exist for their benefit. Their bosses rate them as less effective at their jobs than others, particularly when it comes to helping people.  Amity Business School Locus of Control The degree to which people believe they are masters of their own fate.  Amity Business School Self-Esteem (SE) Individuals’ degree of liking or disliking themselves. Amity Business School  Amity Business School Self-Monitoring A personality trait that measures an individuals ability to adjust his or her behavior to external, situational factors.  Amity Business School Risk-Taking High Risk-taking Managers – Make quicker decisions – Use less information to make decisions – Operate in smaller and more entrepreneurial organizations Low Risk-taking Managers – Are slower to make decisions – Require more information before making decisions – Exist in larger organizations with stable environments Risk Propensity – Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations.  Amity Business School Type A and Type B Personality Type A’s 1. are always moving, walking, and eating rapidly; 2. feel impatient with the rate at which most events take place; 3. strive to think or do two or more things at once; 4. cannot cope with leisure time; 5. are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire. Type B’s 1. never suffer from a sense of time urgency with its accompanying impatience; 2. feel no need to display or discuss either their achievements or accomplishments; 3. play for fun and relaxation, rather than to exhibit their superiority at any cost; 4. can relax without guilt.  Amity Business School Proactive Personality Identifies opportunities, shows initiative, takes action, and perseveres until meaningful change occurs. Creates positive change in the environment, regardless or even in spite of constraints or obstacles.  Amity Business School Myers-Briggs Personality Type Indicator The Myers-Briggs Personality Type Indicator is a self- report inventory designed to identify a person's personality type, strengths, and preferences. The questionnaire was developed by Isabel Myers and her mother Katherine Briggs based on their work with Carl Jung's theory of personality types. The Myers–Briggs Type Indicator (MBTI) is an introspective self-report questionnaire indicating differing psychological preferences in how people perceive the world and make decisions.  Amity Business School The Myers-Briggs Type Indicator Myers-Briggs Type Indicator (MBTI) A personality test that taps four characteristics and classifies people into 1 of 16 personality types. The test attempts to assign four categories: Personality Types Extroverted vs. Introverted (E or I) Sensing vs. Intuitive (S or N) Thinking vs. Feeling (T or F) Judging vs. Perceiving (J or P) One letter from each category is taken to produce a four-letter test result, like "ISTJ" or "ENFP".  Amity Business School Summary of Myers Briggs Type Indicator (MBTI) Model  Amity Business School Myers Briggs Type Indicator (MBTI) Model  Amity Business School Watch: https://www.youtube.com/watch?v=NXcWZnQPUXw Amity Business School  Amity Business School The Big Five Model In contrast to the MBTI, the five-factor model of personality— more typically called the Big Five—has received strong supporting evidence. An impressive body of research, accumulated in recent years, supports that five basic dimensions underlie all others and encompass most of the significant variation in human personality. The following are the Big Five factors Complete this quiz: https://you.visualdna.com/quiz/whoami#!/quiz#%2Fquiz  Amity Business School The Big Five Model Amity Business School  Amity Business School Personality Theories Over time, researchers have developed a number of personality theories and no theory is complete in itself. The theories of personality can be conveniently grouped under four types: Trait Theory - understand individuals by breaking down behavior patterns into observable traits Psychodynamic Theory - emphasizes the unconscious determinants of behavior Humanistic Theory - emphasizes individual growth and improvement Integrative Approach - describes personality as a composite of an individual’s psychological processes  Amity Business School Perception & Perceptual Process  Amity Business School Perception  Amity Business School Perception Perception is an intellectual process of transforming sensory stimuli to meaningful information. It is the process of interpreting something that we see or hear in our mind and use it later to judge and give a verdict on a situation, person, group etc. Example − Priya goes to a restaurant and likes their customer service, so she will perceive that it is a good place to hang out and will recommend it to her friends, who may or may not like it. Priya’s perception about the restaurant is good Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School Amity Business School  Amity Business School Values  Amity Business School Values Values can be defined as an individual's beliefs concerning appropriate courses of action or outcomes. Values reflect an individual's sense of right or wrong and what "ought" to be. Values are so inculcated that they can be presumed from people's behavior, personality, perception, and motivation. They generally influence their behavior. Values are relatively stable and enduring. This is because of how they are originally learned.  Amity Business School Terminal VS Instrumental Values Terminal values , refers to desirable end- states. These are the goals a person would like to achieve during his or her lifetime. The other set, called Instrumental values , refers to preferable modes of behavior, or means of achieving the terminal values. 4–102  Amity Business School Terminal VS Instrumental Values Amity Business School  Amity Business School Motivation Concepts  Amity Business School What Is Motivation? Motivation is the process that accounts for an individual’s intensity, direction, and persistence of effort toward the attainment of a goal. Intensity is concerned with how hard a person tries. This is the element most of us focus on when we discuss the topic of motivation. However, unless effort is channeled in a direction that benefits the organization, high intensity is no guarantee of favorable job- performance outcomes. Quality of effort, therefore, is just as important as intensity of effort. Finally, persistence (how long a person can maintain effort) is important. A motivated person stays with a task long enough to achieve his or her goal.  Amity Business School What Is Motivation? Direction Intensity Persistence  Amity Business School What Is Motivation? Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal Key Elements 1. Intensity: How hard a person tries 2. Direction: Toward beneficial goal 3. Persistence: How long a person tries  Amity Business School Intrinsic and extrinsic motivation Intrinsic Motivation: Extrinsic It refers to self, generated factors Motivation: that influence people to behave in a Efforts made by particular way or to move in a others to particular direction. These factors motivate people. include responsibility, freedom to This may be act, scope to use and develop skills e.g.: reward, and abilities, interesting and punishment, challenging work, opportunities for appreciation etc. advancement etc. Amity Business School  Amity Business School Benefits of Motivation Puts human resources into action. Improves level of efficiency of employees. Leads to achievement of organizational goals. Builds friendly relationship Leads to stability of work force.  Amity Business School Reasons for demotivation No recognition Setting of unrealistic goals Overloaded Micromanagement Lack of opportunity Unpleasant organizational environment Job-security  Amity Business School Motivation and its Importance The importance of employee motivation may benefit the organization in many ways. Improves Performance Level:- The motivation provided in the organization gives a special spirit and energy to work more. Also, they get satisfied with the proper appraisal of the work they have done. All these factors will improve the performance level of an employee. Reduction in Resistance to Change:- even though the monetary benefits are countable, if the company atmosphere and colleagues, recognition is encourageable and gets motivated, no employee wants to change the organization. This leads to a reduction in resistance to change in the company.  Amity Business School Motivation and its Importance Healthy Corporate Image:-. If the motivation and inspiration provided in the organization were proper personnel may create a healthy corporate image in the market. Productive Utility of Resources:- If the motivation is good in the organizational environment, the relationship will be smooth. Then everyone can share their strengths and weaknesses. This results in making use of all the resources optimally. Increased Efficiency and Output:- As the resources are utilized optimally, the output may get increased than before. As already all the employees are working in satisfying conditions, they put their maximum efforts to give maximum efficiency.  Amity Business School Motivation and its Importance Achievement of Goals:- All the advantages of employee motivation to the company are interrelated. If the efficiency and output were increased, this is what achieves the goal of an organization. Development of Friendly Relationships:- The significance of motivation results in the development of friendly relations between the employees and a smooth rap between the superior and subordinates. Stability in Workforce:- as the reduction in resistance to change occurs due to the role of motivation, and it maintains stability in the workforce. As the employees are loyal to the organization, they can produce continuous stable work.  Amity Business School Theories of Motivation  Amity Business School Content Theories of Motivation Content theories of motivation deal with identifying the needs of the people and how they prioritize them. These needs include wage, salary in order to satisfy physiological drives, incentives, social needs, security needs, recognition, etc. Scientific Management and Human Relations Principles of scientific management emphasize that the employees should be motivated through salary. Principles of human relations emphasize that the employees should be motivated by allowing them to work in groups.  Amity Business School Hierarchy of Needs Theory (Maslow) Maslow was of the view that within every individual, there exists a hierarchy of five needs and that each level of need must be satisfied before an individual pursues the next higher level of need (Maslow, 1943). He proposed that humans are motivated by numerous needs which are arranged in the form of a pyramid in ascending order. Those needs are:  Amity Business School Maslow’s Hierarchy of Needs Physiological needs- These are the most powerful yet basic needs of an individual. These include hunger, thirst, shelter and the like. In an organization, these are visible in the desire of employees for pleasant working conditions and fair remuneration. Safety/Security needs- After satisfying the above needs, safety needs dominate human behavior. In an organizational setting, safety needs include jobs which include personal safety, insurance fringe benefits and job security. Social needs- These needs are very essential for work-life as it affects work behavior if not fulfilled on time. In the organization workplace, employees desire for healthy relationships with colleagues and superiors and active participation in groups is a part of social needs.  Amity Business School Maslow’s Hierarchy of Needs Self-esteem needs- These are related to self-confidence, power and self-control. In an organization, these are reflected in the need for recognition by others, taking responsibility, appreciation, and respect in the organization. Self-actualization needs- It is also called growth need, for realizing one’s own potential for self-development. In an organization, these needs are achieved by getting opportunities for growth, advancement and achievement.  Amity Business School Maslow’s Hierarchy of Needs Lower-Order Needs Higher-Order Needs Needs that are satisfied Needs that are satisfied externally; physiological Self internally; social, esteem, and safety needs and self-actualization Esteem needs Social Safety Physiological  Amity Business School Maslow’s Hierarchy of Needs  Amity Business School Assumptions of Maslow’s Hierarchy Movement Up the Pyramid Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied. Maslow Application Individuals therefore A homeless person must move up the hierarchy in order. will not be motivated to meditate!  Amity Business School Herzberg’s Two-Factor Theory Also called Motivation Hygiene Theory On the basis of research conducted by Fredrick Herzberg, by conducting interviews from employees regarding job conditions he concluded two categories of needs, independent of each other. This theory differentiates between factors that satisfy and factors that dissatisfy employees. As per this theory, the opposite of 'satisfaction' is 'no satisfaction' and the opposite of 'dissatisfaction' is 'no dissatisfaction'.  Amity Business School Herzberg’s Two-Factor Theory Frederick Herzberg explored the question “What do people want from their jobs”. He did this through asking various people about situations and events at work, when they felt exceptionally good or bad about their jobs. Herzberg’s collection of information revealed that intrinsic factors are related to job satisfaction, while extrinsic factors created job dissatisfaction. In other words when people felt satisfied and happy at work the conditions present were directly affecting their inner feelings and self esteem. Yet dissatisfaction was created by the job environment people worked in and the interactions within that environment. Amity Business School  Amity Business School Herzberg’s Two-Factor Theory Hygiene factors- Hygiene factors refer to those job factors which are important for the existence of motivation at the workplace. If these factors are not present in the workplace, they lead to dissatisfaction. Hygiene factors allow a minimum level of productivity out of employees so, they are also called maintenance factors. These include company policy and administration, supervision, salary, relationships with superior and supervisor and working conditions. Motivational factors- These factors act as motivators for satisfying employees, the absence of which will not have an impact on satisfaction level. These factors are intrinsic to the job, and related to growth needs, therefore, also called as Motivators and include achievement, recognition, responsibility, growth etc.  Amity Business School Herzberg’s Two-Factor Theory As job satisfaction and job dissatisfaction are controlled by different factors Herzberg concluded that job satisfaction was not the opposite of job dissatisfaction. In contrast the complete removal of job dissatisfaction will not cause an employee to feel job satisfaction. Similarly job satisfaction does not necessarily eradicate all elements of job dissatisfaction. Herzberg therefore decided that the opposite of job dissatisfaction was simply a work environment containing “no dissatisfaction” and the opposite of job satisfaction was an employee feeling “no satisfaction”. As extrinsic factors do not motivate employees Herzberg referred to these as Hygiene factors and intrinsic factors were called motivators for obvious reasons. From the 1960s to the 1980’s Herzberg’s theory of motivators and hygiene factors was widely popular  Amity Business School Herzberg’s Two-Factor Theory Hygiene Factors Separate Constructs Motivators Salary – Hygiene Factors— Achievement Extrinsic and Related to Work Dissatisfaction Responsibility Conditions Growth – Motivation Factors— Company Intrinsic and Related to Policies Satisfaction Bottom Line: Satisfaction and dissatisfaction are not opposites of the same thing!  Amity Business School Comparison of Satisfiers and Dissatisfiers Factors characterizing events on the job that led to extreme job dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction Source: Reprinted by permission of Harvard Business Review. An exhibit from One More Time: How Do You Motivate Employees? by Frederick Herzberg, September–October 1987. Copyright © 1987 by the President and Fellows of Harvard College: All rights reserved.  Amity Business School Herzberg’s Two-Factor Theory In the present context, many of these factors have depleted to a great extent, therefore this theory may not carry as much vantage. The criticism on this theory perhaps as indicated below may also be one of the factors for limiting its importance at present. Herzberg procedure is limited by his methodology because people generally take credit themselves when things go well and blame failure on extrinsic environment. No quantitative satisfaction asserting an employee may dislike a part of his job yet he thinks it is acceptable. The theory ignores situational factors and is said to be not in line with the early research. His theory does not give high profile of reliability because special efforts are to be made by the researchers in interpretation of the responses.  Amity Business School Alderfer’s ERG Theory Clayton Alderfer revised Maslow's theory and categorized needs into three categories as Existence needs, Relatedness needs and Growth needs. ERG Theory is a more realistic approach. Alderfer formulated two principles: Satisfaction-progression principle- Individuals can fulfil a couple of needs at the same time. Once a need is satisfied, it leads to the development of other needs. Frustration-Regression Principle- When a person can not satisfy a higher level of needs, out of frustration, he regresses to satisfy the lower level needs. Managers deliver motivators to compensate for frustration.  Amity Business School Alderfer’s ERG Theory  Amity Business School Alderfer’s ERG Theory Existence needs- Existence needs are a lower level of Maslow's needs and are concerned about physiological existence and security needs. These needs are satisfied through remuneration, fringe benefits, a healthy working environment and job security. Relatedness needs- It covers the social needs of Maslow and involves relationship and interactions with other people and related variables such as emotional support, recognition and belongingness. Growth needs- These needs involve a higher level of Maslow’s needs and are related to the achievement of an individual's potential. A job can satisfy growth needs if it involves a challenge, self-direction and creativity.  Amity Business School David McClelland’s Theory of Needs David McClelland, Harvard psychologist and his associates proposed that an individual’s specific needs are acquired over time and are shaped by one’s life experiences. McClelland used projective technique called the Thematic Aptitude Test (TAT) to measure people in three dimensions: the need for power, achievement, and affiliation A person’s motivation and effectiveness in certain job functions are influenced by these three needs. McClelland’s theory sometimes is referred to as the three need theory or as the learned needs theory.  Amity Business School David McClelland’s Theory of Needs Need for Achievement (nAch) Need for Affiliation (nAff) The drive to excel, to achieve in The desire for friendly and relation to a set of standards, to close personal relationships strive to succeed and avoid being rejected. Bottom Line Need for Power (nPow) Individuals have different People possessing these needs have leadership levels of needs in each of quality, power of influencing these areas, and those and controlling others. levels will drive their behavior.  Amity Business School David McClelland’s Theory of Needs Chief Executive Officer (CEO) of Royal Enfield R.L. Ravichandran  Amity Business School Thematic apperception test example-1  Amity Business School Thematic apperception test example-2  Amity Business School Comparing  Amity Business School Theory X and Theory Y  Amity Business School Theory X and Theory Y Theory X and Theory Y are theories of human motivation created and developed by Douglas McGregor at the MIT Sloan School of Management in the 1960. They describe two contrasting models of workforce motivation. Theory X and Theory Y have to do with the perceptions managers hold on their employees, not the way they generally behave. It is attitude not attributes. His work is based upon Maslow's Hierarchy of Needs, where he grouped the hierarchy into lower-order needs (Theory X) and higher-order needs (Theory Y).  Amity Business School Theory X and Theory Y He suggested that management could use either set of needs to motivate employees, but better results would be gained by the use of Theory Y, rather than Theory X. These two views theorized how people view human behavior at work and organizational life. Our management style is strongly influenced by our beliefs and assumptions about what motivates members of your team: If you believe that team members dislike work, you will have an authoritarian style of management; On the other hand, if you assume that employees take pride in doing a good job, you will tend to adopt a more participation style.  Amity Business School Theory X Theory X assumes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. According to this view, management must actively intervene to get things done. This style of management assumes that workers: Dislike working. Avoid responsibility and need to be directed. Have to be controlled, forced, and threatened to deliver what's needed. Need to be supervised at every step, with controls put in place. Need to be enticed to produce results; otherwise they have no ambition or motivation to work.  Amity Business School Theory X X-Type organizations tend to be top heavy, with managers and supervisors required at every step to control workers. There is little delegation of authority and control remains centralized. McGregor recognized that X-Type workers are in fact usually the minority, and yet in large scale production environment, X Theory management may be required and can be unavoidable.  Amity Business School Theory Y Theory Y shows a participation style of management that is de- centralized. It assumes that employees are happy to work, are self- motivated and creative, and enjoy working with greater responsibility. Take responsibility and are motivated to fulfill the goals they are given. Seek and accept responsibility and do not need much direction. Consider work as a natural part of life and solve work problems imaginatively. This management style tends to be more widely appropriate. In Y-Type organizations, people at lower levels of the organization are involved in decision making and have more responsibility.  Amity Business School Theory Y Theory X and Theory Y relate to Maslow's hierarchy of needs in how human behavior and motivation are main priorities in the workplace in order to maximize output. In relation to Theory Y, the organization is trying to create the most symbiotic relationship between the managers and workers, which relates to Maslow's needs for self- actualization and Esteem. For self-actualization issues relate to Esteem when the manager is trying to promote each team member's self- esteem, confidence, achievement, happiness, respect of others, and respect by others.  Amity Business School Mc Gregor’s Theory X and Y Having Little Ambition Theory X Disliking Work Managers See Workers as… Avoiding Responsibility Self-Directed Theory Y Enjoying Work Managers See Workers as… Accepting Responsibility  Amity Business School Comparing Theory X and Theory Y  Amity Business School Comparing Theory X and Theory Y Motivation Theory X assumes that people dislike work; they want to avoid it and do not want to take responsibility. Theory Y assumes that people are self-motivated, and thrive on responsibility. Management Style and Control In a Theory X organization, management is authoritarian, and centralized control is retained, while in Theory Y, the management style involves employees in decision making, but retains power to implement decisions.  Amity Business School Work Organization Theory X employees tend to have specialized and often repetitive work. In Theory Y, the work tends to be organized around wider areas of skill or knowledge; Employees are also encouraged to develop expertise and make suggestions and improvements. Rewards Theory X organizations work on a ‘carrot and stick’ basis, and performance is part of the overall mechanisms of control. In Theory Y organizations, appreciation is also regular and important, but is usually a separate mechanism from organizational controls. Theory Y organizations also give employees frequent opportunities for promotion. Accepting creative and innovative ideas provided by employees.  Amity Business School Application Although Theory X management style is widely accepted as poor to others, but somehow, it has its place of beneficial in large scale production operation and unskilled production-line work. Theory Y-style management is suited to knowledge work and professional services. Professional service organizations naturally evolve Theory Y-type practices by the nature of their work; Even highly structure knowledge work, such as call center operations, can benefit from Theory Y principles to encourage knowledge sharing and continuous improvement.  Amity Business School Check-up: Motivation Elizabeth’s boss starts out the day each morning saying, “Bet you wish you didn’t have to be here, huh?” Knowing this, which theory gives us insight as to why Elizabeth may not be motivated at work? Amity Business School  Amity Business School Carrot and Stick Approach Theory This theory advocates that people are motivated to work under two conditions, viz., (i) When they are offered rewards and (ii) When they are penalized or punished. The rewards are offered for efficient and high performance and punishments or penalties are imposed when the performance is lagging behind of a standard performance. This theory is effective, if the employee’s basic needs are not satisfied. If the employee is satisfied with his needs up to a certain extent, he doesn’t care of the penalties.  Amity Business School Carrot and Stick Approach Theory The Carrot approach involves the offer of monetary rewards, non- monetary benefits, providing better working conditions and high quality of work life. The Stick approach supports the theory X assumptions and involves the use of coercion and threat, close supervision and tight control of employee behaviour. This approach doesn’t work in many situations during the third millennium as people do not work for only money and other rewards. The other needs like sense of achievement, interesting work, recognition, involvement in decision-making, etc., play vital role in employee motivation  Amity Business School William Ouchi’s Theory Z  Amity Business School William Ouchi’s Theory Z Ouchi proposed Theory Z – a hybrid model that blends elements of successful Japanese managerial practice with an assessment of US workers’ needs. It focuses heavily on a humanistic philosophy, teamwork and consensus decisions.The distinguishing features of Theory Z companies are: ★ Long-term employment; ★ Non-specialized careers; ★ Individual responsibility; ★ Concern for the total person; ★ Control systems are less formal; ★ Consensus decision-making; and ★ Slower rates of promotion. It is believed that Theory Z companies develop close, cooperative, trusting relationships among workers, managers and other groups  Amity Business School William Ouchi’s Theory Z Theory Z emphasizes that industrial teams are created within a stable work environment. This match enables the employee to satisfy his needs for affiliation, independence and control. Further, it contributes for the organization's needs of high quality and high productivity. Maruti Udyog Limited in India, Toyota, Honda and Nissan are the best examples for the practices and outcome of Theory Z. These organizations' levels of quality and productivity have been quite higher than those of their competitors in the respective countries. In fact, the rate of absenteeism and number of grievances in these companies are very low compared to those in similar organizations  Amity Business School William Ouchi’s Theory Z Positive Points of Theory Z: ★ Theory Z companies have made a commendable attempt to adapt Japanese ideas into their organizations; ★ This theory is based on shared concern for multiple employee needs; ★ Theory Z suggests strong bondage between organization and its employees; ★ Employee involvement is a prominent factor in this theory; ★ Theory Z encourages the practice of informal organization; ★ This theory encourages automatic coordination among employees  Amity Business School William Ouchi’s Theory Z Negative Points of Theory Z: ★ It is criticized that this theory is not new. It is an extension of earlier theories which failed to receive popularity; ★ It is also criticized that the research supporting this theory is limited; ★ The other criticism is that this theory fails to provide useful criteria for helping managers regarding the correct time to use this theory ★ The volatile firms in the software industry, information technology and other high technology industries cannot provide life time employment; and ★ Slow rates of promotions frustrate employees.  Amity Business School The Process Theories of Motivation The content theories of motivation identify what motivates people, while process theories deal with cognitive backgrounds that go into motivation and effort. These theories contribute to the complex processes involved in motivational effort. Process theories, include: Vroom’s Expectancy Theory, Porter- Lawler Model, Adam’s Equity Theory, Cognitive Evaluation Theory and Goal-Setting Theory.  Amity Business School Expectancy Theory Ethical Values and Behaviors of Leaders Bottom Line All three links between the boxes must be intact or motivation will not occur. Thus, Individuals must feel that if they try, they can perform and If they perform, they will be rewarded and When they are rewarded, the reward will be something they care about.  Amity Business School Vroom’s Expectancy Theory of Motivation Expectancy Theory of Motivation was developed by Victor H. Vroom in 1964 and extended by Porter and Lawler in 1968. Victor Vroom felt that content models were inadequate explanations of the complex process of work motivation and he developed a relatively new theory of motivation. According to his theory, motivation of any individual depends on the desired goal and the strength of his expectation of achieving the goal. Vroom’s model is built mainly on three concepts — valence, instrumentality and expectancy  Amity Business School Vroom’s Expectancy Theory of Motivation Vroom realized that an employee's performance is based on individuals factors such as personality, skills, knowledge, experience and abilities. The theory suggests that although individuals may have different sets of goals, they can be motivated if they believe that: There is a positive correlation between efforts and performance, Favorable performance will result in a desirable reward, The reward will satisfy an important need, The desire to satisfy the need is strong enough to make the effort worthwhile.  Amity Business School Vroom’s Expectancy Theory of Motivation  Amity Business School Vroom’s Expectancy Theory of Motivation  Amity Business School The Porter and Lawler Model Expectancy Theory Porter and Lawler ,1968 (Lyman W Porter and Edward E Lawler) used Victor Vroom’s Expectancy Theory as a foundation to develop their expectancy model. Similar to Vroom’s theory Porter and Lawler concluded that an individual’s motivation to complete a task is affected by the reward they expect to receive for completing the task. However Porter and Lawler introduced additional aspects to the expectancy theory as they felt that Vroom's theory was too simple. Theory to incorporate other aspects of motivation which were job satisfaction, perceptions of intrinsic and extrinsic rewards, abilities, traits, role perceptions and implicitly equity theory.  Amity Business School The Porter and Lawler Model Expectancy Theory  Amity Business School The Porter and Lawler Model Expectancy Theory In addition to the Vroom model, Porter and Lawler recognize that the value of a reward as well as the reward probability influence the effort of an individual. Furthermore, the Porter-Lawler Model argues that the relationship between effort and performance is influenced by the abilities and traits of individuals as well as their role perceptions within an organization. The theory also recognizes that the rewards resulting from the performance might not be equal to the rewards, which individuals perceive they should have received. Higher levels of self-rated performance are associated with higher levels of expected rewards.  Amity Business School Equity Theory of Work Motivation Credit of developing this theory goes to J. Stacy Adams This theory argues that a major input into job performance and satisfaction is the degree of equity (or inequity) that people perceive in their work situation. Inequality occurs when a person perceives that the ratio of his or her outcomes to inputs and the ratio of other’s relevant outcome to inputs are unequal. Equity Theory Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities  Amity Business School Equity Theory (cont’d)  Amity Business School Equity Theory of Work Motivation Negative Tension state: Equity is perceived when this ratio is equal. While if this ratio is unequal, it leads to “equity tension”. J.Stacy Adams called this a negative tension state which motivates him to do something right to relieve this tension. A comparison has been made between 2 workers A and B to understand this point. Referents: The four comparisons an employee can make have been termed as “referents” according to Goodman. The referent chosen is a significant variable in equity theory. These referents are as follows: Self-inside Other-inside Self-outside Other-outside  Amity Business School Chapter Check-up: Motivation If you study really hard and only get a B on an exam, but your classmate barely studies at all and gets an A, what theory will help explain why you feel less motivated to go to class?  Amity Business School Cognitive Evaluation Theory Cognitive Evaluation Theory- Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation The theory may be relevant only to Hint: For this theory, jobs that are neither extremely think about how fun it is dull nor extremely interesting. to read in the summer, but once reading is assigned to you for a grade, you don’t want to do it!  Amity Business School Cognitive Evaluation Theory  Amity Business School Goal-Setting Theory (Edwin Locke) Basic Premise: That specific and difficult goals, with self-generated feedback, lead to higher performance. But, the relationship between goals and performance will depend on: Goal commitment –“I want to do it & I can do it” Task characteristics (simple, well-learned) National culture  Amity Business School Reinforcement Theory Argues that behavior is a function of its consequences Assumptions: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated. Amity Business School Amity Business School Amity Business School Amity Business School  Amity Business School EXTINCTION REINFORCEMENT It refers to the absence of reinforcements often used by managers to stop learned behavior. You withhold positive reinforcements or rewards that encouraged the behavior in the first place. Amity Business School  Amity Business School Chapter Check-up: Motivation What theory would say that this man, who knows he works hard and is performing well, will be motivated by a gym membership for being a high performer?  Amity Business School Chapter Check-up: Motivation Would a gym membership be considered a motivator or hygiene factor, according to Herzberg?  Amity Business School Chapter Check-up: Motivation Answer the following statements with True (T) or False (F): a) The ERG theory allows for different levels of needs to be pursued simultaneously. b) Herzeberg felt that job satisfaction and dissatisfaction exist on the same continuum. c) McClelland used projective test, TAT. d) Social needs include the need for safety. e) People with a strong need for affiliation are particularly concerned with being liked and accepted.  Amity Business School Attitude In psychology, attitude is a psychological construct, a mental and emotional entity that inheres in, or characterizes a person. They are complex and are an acquired state through experiences. It is an individual's predisposed state of mind regarding a value and it is precipitated through a responsive expression towards oneself, a person, place, thing, or event (the attitude object) which in turn influences the individual's thought and action.  Amity Business School An attitude refers to our opinions, beliefs, and feelings about aspects of our environment. We have attitudes toward the food we eat, people we interact with, courses we take, and various other things. An attitude is a disposition toward an object, person, or situation This disposition may be favorable or unfavorable An attitude may develop from personal experience or through interaction with and learning from other important people in a person’s life Attitudes determine behavior  Amity Business School Components of Attitude Cognitive Component-the opinion or belief- Evaluation Affective Component – the emotional and feeling - Feeling Behavioral Component – the intention to behave - Action  Amity Business School Functions of Attitudes Adjustment Functions – adjust to work environment; employee when treated well, develops positive attitude Ego defense function – to defend one’s self image (blame others for one’s failures or inadequacies) Value expressive functions – attitudes provide the basis for expressing one’s central values (if you expect someone to work hard, you may be seen saying “It is important to work hard” etc.) Knowledge functions – help supply standards or a frame of reference that allow people to organize and explain the world around them.  Amity Business School The Importance of Attitudes Implication for Managers Attitudes warn of potential behavioral problems Managers should do things that generate the positive attitudes that reduce absenteeism and turnover. Attitudes influence behaviors of employees: Managers should focus on helping employees become more productive to increase job satisfaction. Employees will try to reduce dissonance Managers identify the external sources of dissonance. Managers provide rewards compensating for the dissonance  Amity Business School Attitude Change Providing Information Use of fear Resolving Discrepancies Influence of friends or peers Barriers to change : 1. Escalation of commitment 2. Lack of information  Amity Business School Work- Related Attitudes Social context provide information to form attitude. Personality traits are now also being considered as backgrounds of work related attitude. Positive Affectivity(PA) and negative Affectivity(NA) are important backgrounds to attitudes about ones job. The effects of that can be put to use to measure: – Job satisfaction – Job involvement – Organizational commitment  Amity Business School Leadership 195  Amity Business School Leadership A leader is one who sets vision, goals and motivates people and obtains their commitment to achieve the goals and realize the vision. Leadership can be defined as the ability of the management to make sound decisions and inspire others to perform well. It is the process of directing the behavior of others towards achieving a common goal. In short, leadership is getting things done through others 196  Amity Business School Significance of Leadership Leadership is very important in a firm as it leads to higher performance by the team members, it improves motivation and morale within the members, and helps to respond to change. Leadership facilitates organizational success by creating responsibility and accountability among the members of the organization. In short, it increases value in an organization 197  Amity Business School Significance of Leadership Initiating Action: Leadership starts from the very beginning, even before the work actually starts. A leader is a person who communicates the policies and plans to the subordinates to start the work. Providing Motivation: A leader motivates the employees by giving them financial and non- financial incentives and gets the work done efficiently. Motivation is the driving force in an individual’s life. 198  Amity Business School Significance of Leadership Providing guidance: A leader not only supervises the employees but also guides them in their work. He instructs the subordinates on how to perform their work effectively so that their efforts don’t get wasted. Creating confidence: A leader acknowledges the efforts of the employees, explains to them their role clearly and guides them to achieve their goals. He also resolves the complaints and problems of the employees, thereby building confidence in them regarding the organization. 199  Amity Business School Significance of Leadership Building work environment: A good leader should maintain personal contacts with the employees and should hear their problems and solve them. He always listens to the point of view of the employees and in case of disagreement persuades them to agree with him by giving suitable clarifications. In case of conflicts, he handles them carefully and does not allow it to adversely affect the entity. A positive and efficient work environment helps in stable growth of the organization. 200  Amity Business School Significance of Leadership Co-ordination: A leader reconciles the personal interests of the employees with the organizational goals and achieves co-ordination in the entity. Creating Successors: A leader trains his subordinates in such a manner that they can succeed him in future easily in his absence. He creates more leaders. Induces change: A leader persuades, clarifies and inspires employees to accept any change in the organization without much resistance and discontentment. He makes sure that employees don’t feel insecure about the changes. 201  Amity Business School Leadership Styles Leadership style is different from the personality trait of the leader. Though the leadership behavior will be influenced by the personality trait of the leader, it will be more conditioned by the situations obtaining around him. All these situational factors and the personality trait of a leader determine his style of functioning, which is known as leadership style. Leadership style may be defined as the consistent behavior pattern of the leader when he is working with and through other people as visualized by these people. The consistency of behavior pattern will depend on the responsive behavior of the group in a given situation. In 1939, a group of researchers led by psychologist Kurt Lewin set out to identify different styles of leadership. While further research has identified more distinct types of leadership 202  Amity Business School Leadership Styles 203  Amity Business School Leadership Styles Leader centered or autocratic The autocratic style is characterized by centralization of authority in the leader regarding decision-making. The leader more often makes decision and announces them. Sometimes, he presents tentative decisions, which may not be changed. Certain leaders give even detailed explanation for taking a decision, whereas a few do not feel the necessity of giving such explanation. 204  Amity Business School Leadership Styles Participative or Group centered or democratic The democratic style is premised on the basic principle of participation of subordinates in decision- making process. It is not necessary that the leader makes every subordinate a party to a decision but, by and large, a process is evolved in which the decision-making instinct of the subordinates is satisfied. In other words, there is free flow of communication between the superior and subordinates before any final decision is taken in the matter. 205  Amity Business School Leadership Styles Individual centered or free rein or laissez-faire A free rein leader does not directly supervise employees and fails to provide regular updates to those under his supervision. Highly experienced and trained employees with minimal requirement of supervision fall under the free rein leadership style. But, not all employees possess these features. This leadership style blocks the production of employees needing supervision. The free rein style implements no leadership or supervision efforts from managers, which can lead to poor production, lack of control and increasing costs. 206  Amity Business School Additional Leadership Styles Transactional Transactional leadership style is formed by the concept of reward and punishment. Transactional leaders believe that the employee's performance is completely dependent on these two factors. When there is an encouragement, the workers put in their best effort and the bonus is in monetary terms in most of the cases. In case they fail to achieve the set target they are given a negative appraisal. Transactional leaders pay more attention to 207  Amity Business School Additional Leadership Styles and Models Transformational Transformational leadership has the ability to affect employee's perceptions through the returns that organization gets in the form of human capital benefits. These leaders have the ability to reap higher benefits by introducing knowledge management processes, encouraging interpersonal communication among employees and creating healthy organizational culture. It helps in flourishing organizational innovation by creating a participative environment or culture. It promotes a culture where the employees have autonomy to speak about their experiences and share knowledge. It has been seen that transformational leaders are more innovative than transactional and laisse-faire leaders. 208  Amity Business School Leadership Theories Over the decades, many great scholars, researchers and academicians have conducted various research and studies to discover the factors that contribute to effective leadership. In this process, the following theories of leadership have evolved: 209  Amity Business School Leadership Theories 210  Amity Business School Leadership Theories The Great Man Theory: Thomas Carlyle proposed the Great Man Theory in the 1840s, and it merely believes that leadership is an inherent trait of a person who is destined to become a great leader by birth and they prove themselves when the great need arises. In other words, some people are born to become leaders and leadership is a heroic act.: Criticism: This theory was criticized or questioned due to the following reasons: It was a male-centric approach when women have proved to be great leaders too. This theory explains that leadership cannot be learned or taught it’s an inherent trait. There is no scientific validation to support this theory. 211  Amity Business School Leadership Theories The Trait Theory: Ralph M. Stogdill proposed the trait theory of leadership in the late 1940s; he explained that an individual must possess the key personality traits and characteristics to be an effective leader and these traits Physiological traits: Height, weight, structure, colour, appearance and so forth. Socioeconomic characteristics: Gender, religion, marital status, age, occupation, literacy and earnings. Personality traits: Extraversion, self-confidence, patience, agreeable, reliable, honesty and leadership motivation. Intellectual traits: intelligence, judgmental ability, knowledge and emotional attribute. Task-related traits: Attainment drive, dedication, initiative, determination and business expertise. Social characteristics: Socially active,and cooperation. Some of the other traits being charisma, adaptiveness, creativity, uniqueness. 212  Amity Business School Leadership Theories The Trait Theory: 213  Amity Business School Leadership Theories The Trait Theory: This theory was criticized since it neglected the environmental factors which may not always remain the same. The list of traits is quite vast and keeps on changing from time to time. It was unable to explain failures despite possessing the certain traits specified in the theory. Moreover, of the identified traits can be acquired through learning and training. 214  Amity Business School Leadership Theories Behavioral Theory: The behavioral theory of leadership evolved in the 1950s. After understanding that the personal traits of a leader are essential for effective leadership, the researchers were now keen to know that what leaders do to become effective leaders Thus, they now focused on the leader’s behavior rather than traits. To study the behavior of leaders, two major research programs were started by two different universities namely, - 1. Ohio State Leadership Studies 2. University of Michigan Studies 215  Amity Business School Leadership Theories The Ohio State University Studies: A group of researchers at Ohio State University prepared a questionnaire to be surveyed in military and industrial setups, to determine the perception of the subordinates for the actual behavior of their leaders. From their findings, the researchers identified two major categories of leader behavior: Consideration: The leaders are attentive towards their subordinates and build up an excellent inter-personnel relationship with them. They are very supportive and friendly. This was termed as ‘people-oriented behavior’. Initiating structure: The leaders are majorly concerned about the achievement of goals and schedule and structure work accordingly. For such leaders, subordinates are just resources, and they have to make the optimal utilization of them. This was termed as ‘task-oriented behavior’. 216  Amity Business School Leadership Theories The University of Michigan Studies: This study is based on how the leader’s behavior is related to group performance. Researchers made a comparison of effective managers with the ineffective ones and found that the two can be discriminated on the basis of their behavior, i.e. Job-centric behavior and organizational-member centric behavior. The Michigan group also came up with two behavioral dimensions: the employee-oriented leader emphasized interpersonal relationships by taking a personal interest in the needs of employees and accepting individual differences among them, and the production oriented leader emphasized the technical or task aspects of the job, focusing on accomplishing the group’s tasks. These dimensions are closely related to the Ohio State dimensions. Employee-oriented leadership is similar to consideration, and production-oriented leadership is similar to initiating structure. In fact, most leadership researchers use the terms synonymously. 217  Amity Business School Leadership Theories The University of Michigan Studies: 218  Amity Business School Leadership Theories The University of Michigan Studies: The study further resulted in the identification of four additional behaviors essential for effective leadership which are: Support Goal emphasis Work facilitation Interaction facilitation 219  Amity Business School Leadership Theories Blake and Mouton’s Leadership Grid: Managerial Grid The Leadership Grid is a model of behavioral leadership developed in the 1960s. Robert R. Blake and Jane S. Mouton gave the Leadership/Managerial Grid Theory and discovered the five different styles of leadership by categorizing the managers into 81 possible ways arising out of the combination of rating depending on two variables, concern for people and concern for results. 220  Amity Business School Leadership Theories Blake and Mouton’s Leadership Grid: Managerial Grid Blake and Mouton developed a two