PUJA KUMARI SRIVASTAVA

PAPER: CC-102-MANAGEMENT CONCEPTS AND ORGANISATIONAL BEHAVIOUR

Unit-I Schools of Management Thought: Decision theory school; Quantitative and System
School; Contingency theory of management
Unit-I: Schools of Management Thought

Management thought has evolved over time, resulting in various schools of thought that offer
different perspectives on how to manage organizations effectively. Three significant schools
of management thought include the Decision Theory School, the Quantitative and System
School, and the Contingency Theory of Management.

1. Decision Theory School

Overview: The Decision Theory School focuses on the decision-making processes within an
organization. This school of thought considers decision-making as the central function of
management and emphasizes rational and systematic approaches to making choices.

Key Concepts:

• Decision-Making Process: Involves identifying and defining a problem, gathering relevant

information, analyzing alternatives, and selecting the best course of action.
• Rational Decision Making: Based on logic and structured methods to arrive at the best
possible decision.
• Bounded Rationality: Recognizes the limitations of decision-makers due to constraints like
limited information, time, and cognitive capacities.
• Types of Decisions:
o Programmed Decisions: Routine and repetitive decisions that can be handled using
standard operating procedures.
o Non-Programmed Decisions: Unique and non-recurring decisions requiring custom
solutions.

Prominent Figures:

• Herbert A. Simon: Introduced the concept of bounded rationality and the stages of decision-
making.
• Chester Barnard: Emphasized the importance of acceptance theory of authority and the role
of executives in decision-making.

2. Quantitative and System School

Overview: The Quantitative School and the Systems School, often considered together due
to their overlapping principles, emphasize the use of mathematical models, statistical
methods, and systemic thinking to solve management problems.

Key Concepts:
 • Quantitative School:
o Operations Research (OR): The application of mathematical models, statistics, and
algorithms to aid decision-making and problem-solving.
o Management Science: Uses quantitative techniques to improve decision-making in
areas like logistics, production, and scheduling.
o Linear Programming: A method to achieve the best outcome in a mathematical
model whose requirements are represented by linear relationships.
• Systems School:
o System: A set of interrelated and interdependent parts arranged in a manner that
produces a unified whole.
o Systems Thinking: Understanding organizations as systems that transform inputs
into outputs through various processes.
o Open Systems: Organizations that interact with their environment and adapt to
changes.
o Feedback Loops: Mechanisms through which systems self-regulate and maintain
stability.

Prominent Figures:

• Ludwig von Bertalanffy: Developed General Systems Theory, which laid the foundation for
systems thinking.
• Jay W. Forrester: Known for his work in system dynamics and the application of systems
theory to business problems.

3. Contingency Theory of Management

Overview: The Contingency Theory of Management posits that there is no one-size-fits-all

approach to management. Instead, the best way to manage an organization depends on
various internal and external factors.

Key Concepts:

• Situational Variables: Factors that influence the effectiveness of managerial actions, such as
organizational size, environment, technology, and individual differences.
• Fit or Alignment: The effectiveness of management practices is contingent on how well they
align with situational variables.
• Flexibility and Adaptability: Managers must be adaptable and flexible to respond to
different situations and changing environments.

Prominent Figures:

• Fred Fiedler: Developed the Fiedler Contingency Model, which suggests that leadership
effectiveness depends on the match between a leader's style and the situation.
• Paul Lawrence and Jay Lorsch: Emphasized the importance of organizational differentiation
and integration in their contingency theory of organizations.
• Joan Woodward: Conducted research on the relationship between technology and
organizational structure, highlighting the need for different structures based on the type of
production technology.
Unit II Managerial Functions: Planning-concept, significance, types; Organizing concepts,
principles, theories, types of organizations; Staffing; Directing: Coordinating: Control nature,
process and techniques.
Unit II: Managerial Functions

Managerial functions encompass a wide range of activities that are essential for effectively
running an organization. These functions can be categorized into planning, organizing,
staffing, directing, coordinating, and controlling. Each function plays a crucial role in
achieving the organization's goals and ensuring smooth operations.

1. Planning

Concept: Planning is the process of setting objectives and determining the best course of
action to achieve these goals. It involves anticipating future conditions, identifying
opportunities and threats, and deciding on activities to be undertaken.

Significance:

• Provides Direction: Helps in setting clear objectives and guidelines for employees.
• Reduces Uncertainty: Anticipates changes in the environment and prepares for
contingencies.
• Resource Allocation: Ensures optimal use of resources by setting priorities.
• Performance Standards: Establishes benchmarks for measuring progress and performance.
• Facilitates Coordination: Aligns various activities and efforts towards common goals.

Types of Planning:

• Strategic Planning: Long-term planning that defines the overall direction of the organization.
Focuses on objectives and strategies for 3-5 years or more.
• Tactical Planning: Shorter-term planning that translates strategic plans into specific actions
and plans for departments or units. Typically spans 1-3 years.
• Operational Planning: Day-to-day planning that focuses on specific tasks and processes.
Involves detailed procedures and schedules for short periods, such as weeks or months.
• Contingency Planning: Preparing for unexpected events or emergencies. Involves identifying
potential risks and developing plans to address them.

2. Organizing

Concept: Organizing involves arranging resources and activities in a structured way to

achieve objectives. It includes creating roles, assigning tasks, and establishing relationships.

Principles:

• Division of Work: Specialization of tasks to improve efficiency.

• Authority and Responsibility: Clear definition of authority and corresponding
responsibilities.
• Unity of Command: Each employee should report to one manager to avoid confusion.
• Scalar Chain: A clear line of authority from top management to the lowest ranks.
• Span of Control: The number of subordinates a manager can effectively supervise.
Theories:

• Classical Organization Theory: Focuses on formal structure, hierarchical organization, and

clear division of labor (e.g., Henri Fayol’s principles).
• Neoclassical Organization Theory: Emphasizes human relations and the importance of
informal organization and employee satisfaction (e.g., Elton Mayo’s Hawthorne Studies).
• Modern Organization Theory: Incorporates systems theory and contingency theory,
highlighting the dynamic and complex nature of organizations.

Types of Organizations:

• Functional Organization: Groups employees based on specialized roles or functions (e.g.,

marketing, finance, HR).
• Divisional Organization: Structures the organization by products, services, or geographical
areas.
• Matrix Organization: Combines functional and divisional structures, creating a dual chain of
command.
• Flat Organization: Has few hierarchical levels, promoting a more collaborative and flexible
working environment.

3. Staffing

Concept: Staffing involves acquiring, deploying, and retaining a workforce of sufficient

quantity and quality to create positive impacts on the organization's effectiveness.

Activities:

• Human Resource Planning: Forecasting staffing needs based on organizational goals.

• Recruitment: Attracting potential candidates to apply for jobs.
• Selection: Choosing the most suitable candidates from those who apply.
• Training and Development: Enhancing the skills and knowledge of employees.
• Performance Appraisal: Evaluating employee performance and providing feedback.
• Compensation Management: Establishing pay structures and benefits.

4. Directing

Concept: Directing involves leading, guiding, and motivating employees to perform their
tasks effectively and efficiently. It is about influencing people’s behavior to achieve
organizational goals.

Elements:

• Leadership: The ability to influence and inspire employees towards the achievement of
goals.
• Communication: Ensuring clear and effective exchange of information within the
organization.
• Motivation: Encouraging employees to perform at their best through incentives, recognition,
and support.
• Supervision: Overseeing employees' work to ensure it aligns with plans and standards.

5. Coordinating
Concept: Coordinating ensures that different departments and groups work together
harmoniously towards common goals. It involves integrating activities and efforts across the
organization.

Importance:

• Achieves Unity of Action: Aligns efforts of various units towards organizational objectives.
• Reduces Conflicts: Minimizes misunderstandings and overlaps in roles.
• Enhances Efficiency: Streamlines processes and eliminates redundancies.
• Improves Flexibility: Enables the organization to respond swiftly to changes.

6. Controlling

Concept: Controlling involves monitoring and evaluating the progress towards

organizational goals and taking corrective actions as needed. It ensures that actual
performance aligns with planned performance.

Nature:

• Continuous Process: Ongoing activity throughout the lifecycle of the organization.

• Pervasive Function: Present at all levels of management.
• Action-Oriented: Focuses on taking corrective measures to align performance with plans.

Process:

1. Establishing Standards: Defining performance metrics and benchmarks.

2. Measuring Performance: Collecting data and assessing actual performance against
standards.
3. Comparing Performance: Identifying deviations from the standards.
4. Taking Corrective Action: Implementing measures to correct deviations and improve
performance.

Techniques:

• Budgetary Control: Using budgets as a tool for planning and controlling.

• Statistical Control: Applying statistical methods to control quality and performance (e.g.,
control charts).
• Break-even Analysis: Determining the point at which revenue equals costs.
• Audits: Conducting financial and operational audits to assess compliance and efficiency.

Unit III Organizational Behaviors: Organizational Behavior concept and significance,

Relationship between management and organizational behavior: Emergence and ethical
perspective: Perception: Personality: Transaction and analysis.
Unit III: Organizational Behavior

Organizational Behavior (OB) is the study of how individuals and groups behave within an
organizational setting. It encompasses a wide range of topics including human behavior,
change, leadership, teams, and more.
1. Organizational Behavior Concept and Significance

Concept: Organizational Behavior (OB) involves understanding, predicting, and managing

human behavior in organizations. It draws on disciplines such as psychology, sociology,
anthropology, and management to understand how people interact within groups and
organizational structures.

Significance:

• Improves Employee Performance: By understanding what motivates employees, managers

can create environments that boost productivity and job satisfaction.
• Enhances Organizational Effectiveness: OB helps in designing organizational structures and
cultures that lead to higher efficiency and effectiveness.
• Facilitates Change Management: Understanding OB aids in managing change and innovation
smoothly within the organization.
• Promotes Better Leadership: Insights from OB help in developing effective leadership styles
that improve team dynamics and organizational outcomes.
• Enhances Communication: OB provides tools and techniques to improve communication
within the organization, leading to fewer misunderstandings and conflicts.

2. Relationship Between Management and Organizational Behavior

Management and Organizational Behavior are closely linked. While management involves
planning, organizing, staffing, directing, and controlling organizational resources, OB focuses
on the human aspects within these managerial functions. The relationship can be summarized
as follows:

• Decision-Making: OB helps managers understand how people make decisions, enabling

better decision-making processes.
• Leadership: Effective management requires strong leadership skills, which are informed by
OB theories on leadership styles and behaviors.
• Motivation: Understanding what motivates employees allows managers to design incentive
systems that improve performance.
• Team Dynamics: OB provides insights into how teams function and how to manage group
dynamics effectively.
• Conflict Resolution: Managers can use OB principles to resolve conflicts within the
organization constructively.

3. Emergence and Ethical Perspective

Emergence: The field of OB emerged from the early studies of human behavior in the
workplace during the industrial revolution. Key milestones include:

• Scientific Management (Frederick Taylor): Emphasized efficiency and productivity but

neglected human aspects.
• Hawthorne Studies (Elton Mayo): Highlighted the importance of social relations and
employee morale.
• Human Relations Movement: Focused on the psychological and social aspects of work.

Ethical Perspective: Ethics in OB involves understanding the moral implications of

managerial actions and organizational practices. It includes:
 • Fair Treatment: Ensuring employees are treated fairly and with respect.
• Transparency: Open and honest communication within the organization.
• Social Responsibility: Considering the impact of organizational actions on society and the
environment.
• Integrity: Upholding ethical standards in all organizational practices.

4. Perception

Concept: Perception is the process through which individuals interpret and organize sensory
information to produce a meaningful experience of the world. In an organizational context,
perception affects how employees view their work environment, colleagues, and
management.

Factors Influencing Perception:

• Personal Factors: Individual’s past experiences, needs, and motives.

• Contextual Factors: The setting and context in which the perception occurs.
• Organizational Factors: The culture, structure, and policies of the organization.

Implications in OB:

• Communication: Perception affects how messages are interpreted and understood.

• Decision Making: Managers’ perceptions influence their decisions and actions.
• Conflict: Differences in perception can lead to misunderstandings and conflicts.

5. Personality

Concept: Personality refers to the unique and stable patterns of behavior, thoughts, and
emotions shown by individuals. It is a key factor in determining how people behave at work.

Personality Traits:

• The Big Five Model: Consists of openness, conscientiousness, extraversion, agreeableness,

and neuroticism.
• Other Traits: Includes self-esteem, locus of control, and risk-taking propensity.

Implications in OB:

• Job Fit: Matching personality traits with job requirements can improve job satisfaction and
performance.
• Leadership: Different personality traits influence leadership styles and effectiveness.
• Team Dynamics: Understanding personality differences can help in forming effective teams.

6. Transactional Analysis

Concept: Transactional Analysis (TA) is a psychoanalytic theory and method of therapy

wherein social transactions are analyzed to determine the ego state of the communicator as a
basis for understanding behavior. Developed by Eric Berne, TA offers insights into
interactions and communications within an organization.
Key Components:

• Ego States: Parent, Adult, and Child. Each state represents a system of thoughts, feelings,
and behaviors.
o Parent: Reflects values and norms learned from authority figures.
o Adult: Processes information objectively and rationally.
o Child: Represents emotions and behaviors from childhood.

Transactions:

• Complementary Transactions: When communication is clear and the response is appropriate

to the ego state addressed.
• Crossed Transactions: When communication leads to misunderstanding because the
response is not appropriate to the ego state addressed.
• Ulterior Transactions: When communication has a hidden agenda or double meaning.

Applications in OB:

• Improving Communication: Helps in understanding and improving interpersonal

communications.
• Conflict Resolution: Provides tools to identify and resolve communication-based conflicts.
• Leadership Development: Enhances leaders’ ability to understand and manage interactions
with employees.

Unit-IV Motivation: Process of motivation: Theories of motivation need hierarchy theory,

theory X and theory Y. Two factor theory.
Unit IV: Motivation

Motivation is a crucial aspect of management as it drives employees to achieve

organizational goals and improve their performance. Understanding the process of motivation
and various motivational theories helps managers create an environment that fosters high
productivity and job satisfaction.

1. Process of Motivation

The process of motivation involves several steps that lead an individual from recognizing a
need to taking action to satisfy it. The basic steps in the motivational process are:

1. Need Identification: The process begins when an individual recognizes an unsatisfied need
or desire.
2. Tension: The unmet need creates internal tension or drive.
3. Action: The individual engages in behavior or actions aimed at fulfilling the need.
4. Goal Achievement: The actions lead to achieving the goal or satisfying the need.
5. Feedback: The individual receives feedback about the effectiveness of their actions, which
can influence future behavior.

This cycle continues as new needs arise and drive further actions.
2. Theories of Motivation

Various theories of motivation explain why individuals behave in certain ways and what
drives them to take action. Key theories include:

A. Need Hierarchy Theory (Maslow's Hierarchy of Needs)

Concept: Abraham Maslow proposed that human needs are arranged in a hierarchy, with
basic needs at the bottom and higher-level needs at the top. Individuals are motivated to
fulfill these needs in a sequential order, starting from the most basic to the highest.

Hierarchy Levels:

1. Physiological Needs: Basic survival needs such as food, water, shelter, and clothing.
2. Safety Needs: Security, stability, and protection from harm.
3. Social Needs: Belongingness, love, and social relationships.
4. Esteem Needs: Recognition, self-respect, and achievement.
5. Self-Actualization Needs: Realizing one's potential and self-fulfillment.

Implications:

• Managers should identify the current needs of their employees and create conditions that
help fulfill those needs.
• Organizations should provide opportunities for employees to achieve higher-level needs,
such as recognition and personal growth.

B. Theory X and Theory Y (Douglas McGregor)

Concept: Douglas McGregor proposed two contrasting views of human motivation and
management: Theory X and Theory Y.

• Theory X:
o Assumes employees are inherently lazy, dislike work, and must be coerced or
controlled to perform.
o Emphasizes strict supervision, control, and a pessimistic view of human nature.
o Managers who subscribe to Theory X tend to use authoritarian management styles.
• Theory Y:
o Assumes employees are self-motivated, enjoy work, and seek responsibility.
o Emphasizes a participative management style, encouraging autonomy and creativity.
o Managers who subscribe to Theory Y focus on creating a supportive environment
that fosters personal growth and development.

Implications:

• Adopting Theory Y principles can lead to higher employee motivation and job satisfaction.
• Managers should create a work environment that encourages participation, responsibility,
and self-direction.

C. Two-Factor Theory (Frederick Herzberg)

Concept: Frederick Herzberg's Two-Factor Theory, also known as the Motivation-Hygiene
Theory, suggests that there are two sets of factors that influence motivation and job
satisfaction: motivators and hygiene factors.

• Motivators (Intrinsic Factors):

o Factors that lead to job satisfaction and motivate employees to perform better.
o Examples: Achievement, recognition, work itself, responsibility, advancement, and
growth.
• Hygiene Factors (Extrinsic Factors):
o Factors that can lead to job dissatisfaction if not addressed but do not necessarily
motivate if present.
o Examples: Company policies, supervision, salary, interpersonal relationships, working
conditions.

Implications:

• Managers should focus on improving both hygiene factors and motivators to enhance overall
job satisfaction.
• While addressing hygiene factors can prevent dissatisfaction, incorporating motivators can
drive employees to higher levels of performance and job satisfaction.

Unit V Leadership: Concept; Leadership style; Theories trait theory, behavioral theory.
Managerial grid: Likert's four systems of leadership.
Unit V: Leadership

Leadership is a fundamental aspect of management that involves influencing and guiding

individuals or groups towards achieving organizational goals. Understanding the various
concepts, styles, and theories of leadership helps managers develop effective strategies to
lead their teams.

1. Concept of Leadership

Leadership is the process of influencing and directing the behavior of individuals or groups
towards achieving specific objectives. It involves setting a vision, motivating and inspiring
people, and creating an environment that encourages high performance and innovation.

Key Elements of Leadership:

• Influence: The ability to affect others' behaviors and attitudes.

• Vision: Having a clear idea of what the organization aims to achieve.
• Motivation: Encouraging and inspiring employees to perform at their best.
• Communication: Effectively sharing information and expectations.
• Decision-Making: Making choices that guide the organization towards its goals.

2. Leadership Styles

Leadership styles refer to the different approaches leaders use to interact with their teams and
manage tasks. Some common leadership styles include:
A. Autocratic Leadership:

• Centralized decision-making with little input from team members.

• Leaders make decisions unilaterally and expect compliance.
• Suitable for situations requiring quick decisions or in crises.

B. Democratic Leadership:

• Encourages participation and input from team members.

• Decisions are made collaboratively, with leaders considering team opinions.
• Fosters creativity and team commitment.

C. Laissez-Faire Leadership:

• Leaders provide minimal direction and allow team members to make decisions.
• Suitable for highly skilled and self-motivated teams.
• Can lead to lack of direction and coordination if not managed properly.

D. Transformational Leadership:

• Leaders inspire and motivate by creating a vision and encouraging innovation.

• Focuses on personal development and change.
• Effective in dynamic and evolving environments.

E. Transactional Leadership:

• Based on a system of rewards and punishments.

• Leaders clarify roles and expectations, and use performance-based incentives.
• Suitable for structured and routine tasks.

3. Theories of Leadership

A. Trait Theory: Trait Theory suggests that certain inherent traits and characteristics make
an effective leader. This theory identifies specific qualities and attributes such as intelligence,
self-confidence, determination, integrity, and sociability that are associated with successful
leadership.

Key Traits:

• Intelligence: Ability to analyze situations and solve problems.

• Self-Confidence: Belief in one's abilities and decisions.
• Determination: Persistence in pursuing goals.
• Integrity: Honesty and ethical behavior.
• Sociability: Ability to interact well with others.

B. Behavioral Theory: Behavioral Theory focuses on the behaviors and actions of leaders
rather than their traits. It suggests that effective leadership can be learned and developed
through specific behaviors.

Key Behaviors:
 • Task-Oriented Behaviors: Emphasis on task completion, setting clear goals, and defining
roles.
• People-Oriented Behaviors: Emphasis on building relationships, supporting team members,
and creating a positive work environment.

4. Managerial Grid (Blake and Mouton)

The Managerial Grid, developed by Robert Blake and Jane Mouton, is a model that identifies
different leadership styles based on a leader’s concern for people and concern for production.

Dimensions:

• Concern for People: The degree to which a leader considers team members' needs,
interests, and development.
• Concern for Production: The degree to which a leader emphasizes task accomplishment and
organizational efficiency.

Leadership Styles on the Grid:

• Impoverished Management (1,1): Low concern for people and production. Minimal effort to
get work done.
• Country Club Management (1,9): High concern for people, low concern for production.
Focus on creating a comfortable work environment.
• Task Management (9,1): High concern for production, low concern for people. Focus on task
completion and efficiency.
• Middle-of-the-Road Management (5,5): Moderate concern for both people and production.
Balances task accomplishment and employee needs.
• Team Management (9,9): High concern for both people and production. Encourages
participation, trust, and high performance.

5. Likert's Four Systems of Leadership

Rensis Likert identified four distinct systems of management, each representing a different
leadership style and organizational climate.

System 1: Exploitative-Authoritative:

• Leaders have low concern for people and high concern for tasks.
• Decision-making is centralized, and communication is top-down.
• Motivates through fear and punishment.

System 2: Benevolent-Authoritative:

• Leaders have a moderate concern for people but still maintain control.
• Decision-making remains centralized, but some input from subordinates is allowed.
• Motivates through rewards and occasional punishment.

System 3: Consultative:

• Leaders have a higher concern for people and moderate concern for tasks.
• Decision-making is more participative, with substantial input from subordinates.
 • Motivates through rewards, consultation, and participation.

System 4: Participative-Group:

• Leaders have high concern for both people and tasks.

• Decision-making is decentralized and collaborative.
• Motivates through participation, involvement, and shared goals.

Unit VI Organizational Conflict: Dynamics and management: Sources, patterns, levels and
types of conflicts: Traditional and modern approaches to conflict: Functional and
dysfunctional organizational conflicts; Resolutions of conflict.
Unit VI: Organizational Conflict

Organizational conflict is an inevitable part of workplace dynamics. Understanding the

dynamics, sources, patterns, levels, and types of conflict, along with approaches to managing
them, is essential for maintaining a productive and harmonious work environment.

1. Dynamics and Management of Conflict

Dynamics of Conflict: Conflict in organizations involves interactions between individuals or

groups with differing interests, values, or perceptions. It can arise from various sources and
manifest in different patterns and levels. The dynamics of conflict involve:

• Perception: Recognizing the existence of a conflict.

• Felt Conflict: Emotional involvement in a conflict situation.
• Manifest Conflict: Actions and behaviors that express the conflict.
• Conflict Aftermath: Consequences and outcomes of the conflict, which can lead to
resolution or ongoing issues.

Management of Conflict: Effective conflict management involves addressing and resolving

conflicts in a constructive manner. Key strategies include:

• Conflict Prevention: Establishing clear communication, setting expectations, and building

strong relationships to prevent conflicts from arising.
• Conflict Resolution: Employing techniques such as negotiation, mediation, and arbitration to
resolve conflicts.
• Conflict Transformation: Changing the nature of the conflict and the relationships involved
to achieve positive outcomes.

2. Sources, Patterns, Levels, and Types of Conflicts

Sources of Conflict:

• Resource Scarcity: Limited resources such as budget, time, or equipment.

• Task Interdependence: Dependence on others to complete tasks.
• Differences in Goals: Conflicting objectives or priorities.
• Communication Issues: Misunderstandings, lack of information, or poor communication.
• Personality Clashes: Differences in personal styles, values, or attitudes.
 • Organizational Structure: Hierarchical levels, departmental boundaries, or role ambiguities.

Patterns of Conflict:

• Latent Conflict: Underlying tensions that have not yet surfaced.

• Perceived Conflict: Awareness of potential conflict by one or more parties.
• Felt Conflict: Emotional response to perceived conflict.
• Manifest Conflict: Visible actions or behaviors that express the conflict.

Levels of Conflict:

• Intrapersonal Conflict: Conflict within an individual, such as role conflict or personal

dilemmas.
• Interpersonal Conflict: Conflict between individuals, often due to personality differences or
disagreements.
• Intragroup Conflict: Conflict within a group or team, such as task or relationship conflicts.
• Intergroup Conflict: Conflict between different groups or departments within an
organization.

Types of Conflicts:

• Task Conflict: Disagreements about the content and goals of the work.
• Relationship Conflict: Personal incompatibilities and emotional tensions.
• Process Conflict: Disagreements about the logistics and delegation of task responsibilities.

3. Traditional and Modern Approaches to Conflict

Traditional Approach:

• Views conflict as inherently negative and something to be avoided.

• Emphasizes hierarchical control and authority to resolve conflicts.
• Focuses on suppressing or eliminating conflict rather than addressing underlying issues.

Modern Approach:

• Recognizes that conflict can be both positive (functional) and negative (dysfunctional).
• Emphasizes open communication, collaboration, and problem-solving.
• Focuses on addressing the root causes of conflict and finding mutually beneficial solutions.

4. Functional and Dysfunctional Organizational Conflicts

Functional Conflict:

• Contributes to organizational goals and enhances performance.

• Encourages creativity, innovation, and problem-solving.
• Promotes critical thinking and diverse perspectives.

Dysfunctional Conflict:

• Hinders organizational performance and goal achievement.

• Creates stress, reduces morale, and increases turnover.
 • Leads to communication breakdowns and decreased collaboration.

5. Resolutions of Conflict

Conflict Resolution Techniques:

• Negotiation: Direct discussions between parties to reach a mutually acceptable solution. Can
be integrative (win-win) or distributive (win-lose).
• Mediation: Involvement of a neutral third party to facilitate communication and offer
solutions.
• Arbitration: A third party makes a binding decision to resolve the conflict.
• Collaboration: Parties work together to find a win-win solution that satisfies all involved.
• Compromise: Each party gives up something to reach a middle-ground solution.
• Avoidance: Ignoring or avoiding the conflict, which may be appropriate for minor issues.
• Accommodation: One party gives in to the other’s demands, often to preserve harmony.

Unit VII Interpersonal and Organizational Communication: Concept of two way

communication: Communication Process; Barriers to effective communication: types of
organizational communication; improving communication: transactional analysis in
communication
Unit VII: Interpersonal and Organizational Communication

Effective communication is vital for the success of any organization. It facilitates the
exchange of information, ensures clarity of objectives, and fosters positive relationships. This
unit covers the concepts of two-way communication, the communication process, barriers to
effective communication, types of organizational communication, ways to improve
communication, and the role of transactional analysis in communication.

1. Concept of Two-Way Communication

Two-Way Communication: Two-way communication involves a reciprocal process where

both sender and receiver actively participate in the exchange of messages. Unlike one-way
communication, where information flows only from sender to receiver, two-way
communication allows for feedback, questions, and clarification, ensuring that the message is
understood as intended.

Importance of Two-Way Communication:

• Clarification: Ensures that the message is clear and understood correctly.

• Feedback: Provides an opportunity for the receiver to respond and give feedback, enhancing
understanding.
• Engagement: Involves both parties, leading to higher engagement and collaboration.
• Problem Solving: Facilitates discussion and problem-solving through interactive dialogue.

2. Communication Process

The communication process consists of several key steps that ensure the effective exchange
of information:
 1. Sender: The person or entity that initiates the communication.
2. Encoding: The process of translating thoughts or ideas into a communicable form, such as
words, symbols, or gestures.
3. Message: The actual content or information being conveyed.
4. Channel: The medium through which the message is transmitted (e.g., verbal, written,
electronic).
5. Receiver: The person or entity to whom the message is directed.
6. Decoding: The process by which the receiver interprets and understands the message.
7. Feedback: The response from the receiver back to the sender, indicating whether the
message was understood.
8. Noise: Any external or internal interference that can distort or disrupt the message during
transmission.

3. Barriers to Effective Communication

Barriers to communication can hinder the effective exchange of information. These barriers
can be:

Physical Barriers:

• Environmental factors such as noise, distance, and physical obstructions.

Psychological Barriers:

• Personal biases, emotions, and attitudes that affect how messages are sent and received.

Language Barriers:

• Differences in language, jargon, and vocabulary that can lead to misunderstandings.

Organizational Barriers:

• Hierarchical structures and organizational policies that restrict open communication.

Cultural Barriers:

• Differences in cultural norms, values, and communication styles.

Perceptual Barriers:

• Misinterpretations based on individual perceptions and assumptions.

Technological Barriers:

• Issues related to the use of technology, such as technical difficulties or lack of access to
communication tools.

4. Types of Organizational Communication

Internal Communication:
 • Vertical Communication: Flow of information up and down the organizational hierarchy
(e.g., manager to employee).
• Horizontal Communication: Flow of information across the same level of the organization
(e.g., between departments or teams).
• Diagonal Communication: Communication between different levels and departments that
are not directly connected (e.g., an employee communicating with a manager from another
department).

External Communication:

• Communication with individuals or entities outside the organization, such as customers,

suppliers, investors, and regulatory bodies.

Formal Communication:

• Structured communication that follows official channels and protocols (e.g., reports, memos,
emails).

Informal Communication:

• Unstructured and spontaneous communication that occurs naturally among employees (e.g.,
casual conversations, social interactions).

5. Improving Communication

To enhance communication within an organization, consider the following strategies:

Active Listening:

• Encouraging active listening skills to ensure that messages are accurately received and
understood.

Clarity and Conciseness:

• Using clear and concise language to avoid misunderstandings.

Feedback Mechanisms:

• Implementing regular feedback mechanisms to facilitate open dialogue and continuous

improvement.

Training and Development:

• Providing training programs to improve communication skills among employees.

Technology Utilization:

• Leveraging technology to streamline communication processes and ensure accessibility.

Open Communication Culture:

 • Fostering a culture of openness and transparency where employees feel comfortable sharing
ideas and concerns.

6. Transactional Analysis in Communication

Transactional Analysis (TA): Developed by Eric Berne, Transactional Analysis is a

psychological theory that examines the interactions between individuals. It helps understand
and improve communication by analyzing the roles people assume in conversations.

Ego States: TA identifies three ego states that influence communication:

• Parent: Behaviors, thoughts, and feelings copied from parents or authority figures.
o Critical Parent: Judgmental and controlling.
o Nurturing Parent: Supportive and caring.
• Adult: Behaviors, thoughts, and feelings that are direct responses to the here and now,
rational and objective.
• Child: Behaviors, thoughts, and feelings replayed from childhood.
o Free Child: Spontaneous and playful.
o Adapted Child: Conformist and compliant.

Transactions:

• Complementary Transactions: When communication flows naturally, and the response is as

expected.
• Crossed Transactions: When the response is not as expected, leading to misunderstandings.
• Ulterior Transactions: When there are hidden messages or double meanings in
communication.

Applications in Communication:

• Improving Self-Awareness: Helps individuals recognize their own communication styles and
ego states.
• Enhancing Interpersonal Relationships: Facilitates understanding and managing interactions
with others.
• Resolving Conflicts: Identifies the root causes of communication breakdowns and provides
strategies to address them.

Unit VIII Organizational Development: Concepts; Need for change; resistance to change:
Theories of planned changes: Organizational diagnosis; OD intervention.
Unit VIII: Organizational Development

Organizational Development (OD) is a systematic approach to improving organizational

effectiveness and facilitating planned change. This unit explores the concepts of OD, the need
for change in organizations, resistance to change, theories of planned change, organizational
diagnosis, and OD interventions.

1. Concepts of Organizational Development (OD)

Organizational Development (OD): Organizational Development refers to the planned

effort to improve organizational effectiveness and employee well-being through various
interventions and techniques. It aims to enhance organizational culture, processes, and
structures to adapt to changing environments and achieve strategic goals.

Key Concepts:

• Systematic Approach: OD is a systematic and planned process that involves diagnosing

organizational issues, implementing interventions, and evaluating outcomes.
• Collaborative Process: It emphasizes collaboration and involvement of stakeholders,
including employees, managers, and external consultants.
• Continuous Improvement: OD fosters continuous learning and adaptation to promote long-
term organizational success.
• Humanistic Approach: It focuses on developing people and improving interpersonal
relationships within the organization.

2. Need for Change

Reasons for Organizational Change:

• External Factors: Changes in market conditions, technology, competition, or regulatory

requirements.
• Internal Factors: Performance issues, outdated processes, organizational culture, or
employee morale.
• Strategic Goals: Alignment with organizational objectives and adapting to new opportunities
or challenges.
• Innovation: Embracing new ideas, products, or services to stay competitive.
• Efficiency and Effectiveness: Improving efficiency, reducing costs, or enhancing customer
satisfaction.

3. Resistance to Change

Causes of Resistance to Change:

• Fear of the Unknown: Uncertainty about the impact of change on job security, roles, or
responsibilities.
• Lack of Trust: Mistrust in management or concerns about fairness and transparency.
• Comfort with the Status Quo: Resistance to leaving familiar routines, processes, or ways of
working.
• Perceived Loss: Resistance due to perceived loss of control, autonomy, or personal benefits.
• Organizational Culture: Cultural norms or values that resist change or innovation.

Strategies to Manage Resistance:

• Communication: Transparent and open communication about the reasons for change,
benefits, and expected outcomes.
• Involvement: Involving employees in the change process through participation, feedback,
and collaboration.
• Education and Training: Providing training and support to build skills and confidence in
adopting new practices.
• Supportive Leadership: Leadership that listens to concerns, provides reassurance, and
models the desired behaviors.
 • Incentives and Rewards: Recognizing and rewarding individuals or teams who embrace
change and contribute to its success.

4. Theories of Planned Change

A. Lewin's Change Management Model:

• Unfreeze: Creating awareness of the need for change and preparing the organization by
unfreezing existing behaviors and attitudes.
• Change: Implementing new practices, processes, or structures to achieve the desired
outcomes.
• Refreeze: Reinforcing and stabilizing the change to make it a permanent part of the
organizational culture and operations.

B. Kotter's 8-Step Change Model:

1. Create Urgency: Develop a compelling reason and sense of urgency for change.
2. Form a Powerful Coalition: Form a team of influential individuals to lead and support the
change effort.
3. Create a Vision for Change: Communicate a clear vision and strategy for achieving the
desired outcomes.
4. Communicate the Vision: Constantly communicate the vision and rationale behind the
change to stakeholders.
5. Remove Obstacles: Identify and address barriers or obstacles that hinder the change
process.
6. Create Short-Term Wins: Celebrate and recognize early successes to build momentum and
confidence.
7. Build on the Change: Continue to implement and build on the change initiatives.
8. Anchor the Changes in Corporate Culture: Ensure that the changes are integrated into the
organizational culture and practices.

5. Organizational Diagnosis

Organizational Diagnosis: Organizational Diagnosis involves assessing the current state of

the organization to identify strengths, weaknesses, opportunities, and threats. It helps in
understanding organizational issues and determining areas where change is needed.

Methods of Organizational Diagnosis:

• Surveys and Questionnaires: Gathering feedback from employees and stakeholders about
organizational issues and perceptions.
• Interviews and Focus Groups: Conducting interviews and group discussions to explore
concerns, opinions, and suggestions for improvement.
• Observations: Direct observation of organizational processes, interactions, and behaviors to
identify issues and areas for improvement.
• Document Analysis: Reviewing organizational documents, reports, and performance data to
gain insights into organizational effectiveness.

6. OD Intervention
OD Intervention: OD Interventions are planned activities or programs designed to facilitate
organizational change and development. They aim to address specific issues identified
through organizational diagnosis and achieve desired outcomes.

Types of OD Interventions:

• Team Building: Improving teamwork, collaboration, and communication among team

members.
• Change Management Workshops: Training sessions to prepare employees and managers for
upcoming changes.
• Leadership Development Programs: Developing leadership skills and competencies to
support organizational change.
• Process Consultation: Providing expert guidance and support to improve organizational
processes and workflows.
• Culture Change Initiatives: Implementing programs to shift organizational culture towards
desired values and behaviors.
• Structural Interventions: Restructuring organizational roles, responsibilities, and reporting
relationships to enhance effectiveness.