SRI VIDYA MANDIR ARTS & SCIENCE COLLEGE

(AUTONOMOUS)
(An Autonomous College Affiliated to Periyar University, Salem)
(Recognized under Status 2(f) & 12(B) of the UGC Act 1956)
Accredited by NAAC with ‘A’ Grade [3.27]
Katteri – 636 902, Uthangarai, Krishnagiri District
PG & Research Department of Commerce

Name of the Staff : Dr. K.UMA PARAMESWARI

Course : Organizational Behaviour (Notes)-Even Sem.

Class : II M.COM
Course Code : 23PCM4E11

UNIT-I
Organizational Behaviour

INTRODUCTION
Each of us is a student of behaviour. We are aware that certain types of behaviour
are linked to certain types of responsibilities. As we mature, we expand our observations
to include the behaviour of others. We develop generalizations that help us to predict and
explain what people do and will do. How accurate are these generalizations? Some may
represent extremely sophisticated appraisals of behaviour and prove highly effective in
explaining and predicting the behaviour of others. Most of us also carry about with us a
number of beliefs that frequently fail to explain why people do what they do. As a result, a
systematic approach to the study of behaviour can improve an individual’s explanatory
and predictive abilities.
Organizational Behavior (OB) can be defined as the understanding, prediction and
management of human behavior both individually or in a group that occur within an
organization. Internal and external perspectives are the two theories of how organizational
behavior can be viewed from an organization’s point of view. In this tutorial, we will be
learning in detail about both the theories. While working in an organization, it is very
important to understand others behavior as well as make others understand ours. In order to
maintain a healthy working environment, we need to adapt to the environment and
understand the goals we need to achieve. This can be done easily if we understand the
importance of OB. The total discussion of this book has been given in twenty-five chapters.
Let’s start the chapter wise discussion.

Introduction to Organizational Behavior

Model:
Why do some workplaces thrive while others seem stuck in chaos? The answer often lies in
understanding the organizational behavior model. This field examines how people interact
within an organization, uncovering the hidden drivers to improve productivity and morale.
Surprisingly, many businesses overlook that a structured approach to behavior can turn a
struggling team into a high-performing one.

From leadership strategies to employee engagement, organizational behavior forms the

backbone of effective management. This article dives into the types of the organizational
behavior model. It explores its foundational theories, practical applications, and
transformative power in improving organizational effectiveness.

Types of Organizational Behavior Models

Various organizational behavior models provide frameworks for understanding, analyzing,

and predicting human behavior within organizations. These models guide leaders in creating
effective management strategies.

Here’s a concise breakdown of the key models.

Model Key Feature Focus

Feudal Model Authority-based hierarchy Obedience and loyalty
Autocratic Model Centralized control by leaders Discipline and compliance
Custodial Model Welfare-driven incentives Financial security and benefits
Leadership fosters employee
Supportive Model Personal growth and job satisfaction
motivation
Collegial Model Collaborative teamwork Partnership and mutual respect
Integration of systems and
System Model Synergy and interdependence
processes
HumanValue
Emphasis on individual potential Respect for employee dignity
Model
Contingency Flexible strategies based on Adaptability and situational
Model situations effectiveness

Each of these models sheds light on distinct aspects of organizational behavior. Delve deeper
into each model to understand their unique principles and applications.

Each of these models sheds light on distinct aspects of organizational behavior. Delve deeper
into each model to understand their unique principles and applications.

1. Feudal Model

The Feudal Model of organizational behavior originates from early hierarchical systems
resembling monarchies. It emphasizes a strict chain of command where loyalty and
obedience are paramount.

This model emerged during periods when organizations prioritized order and control over
innovation. It addressed the challenge of managing large workforces with minimal resistance.
It fits within the broader spectrum of organizational behavior models by highlighting
authority as a key driver of employee behavior.
Characteristics of the Feudal Model

The following traits define this model.

 Centralized authority with absolute power vested in leaders.

 Subordinates seen as loyal followers rather than independent thinkers.
 Emphasis on long-term service and reward through status rather than financial gains.

Advantages of the Feudal Model

This model has unique strengths, as mentioned below.

 Provides clear roles and responsibilities, reducing confusion.

 Ensures rapid decision-making in management in times of crisis.
 Encourages loyalty, fostering a sense of belonging.

Limitations of the Feudal Model

Challenges of this model include the following.

 Stifles creativity and innovation among employees.

 Creates power imbalances that may lead to discontent.
 Ineffective in dynamic, modern work environments.

Application of Feudal Model with Examples

Traditional feudalism is reflected in hierarchical companies like McDonald's, where control

is centralized with franchise owners who exert strong control over operations. This ensures
consistency across franchises but limits flexibility for local adaptations.

2. Autocratic Model

The Autocratic Model relies on centralized power, where leaders dictate policies, and
employees follow orders without question. Historically, it emerged to manage unskilled labor
in industrial setups.

It addresses challenges like enforcing discipline and ensuring compliance. Compared to the
collegial model of organizational behavior, this model limits collaboration but excels in
authority-driven contexts.

Characteristics of the Autocratic Model

Here are the characteristics of this model.

 Leadership with absolute control over decisions.

 Minimal employee autonomy or participation in decision-making.
 Focus on compliance, with rewards tied to obedience.
Advantages of the Autocratic Model

This model proves beneficial in certain scenarios. Here are some of those benefits.

 Effective for managing inexperienced teams or high-risk industries.

 Simplifies decision-making with one central authority.
 Maintains strict discipline, reducing chaos.

Limitations of the Autocratic Model

Here are some of the limitations of this model.

 Fosters resentment and disengagement among employees.

 Inhibits creativity, leaving no room for innovation.
 Unsustainable in modern, knowledge-driven workplaces.

Application of Autocratic Model with Examples

Companies like Foxconn exhibit an autocratic structure, where decision-making is

centralized, and employee roles are strictly controlled. While this ensures efficiency, it often
restricts employee autonomy and flexibility.

Also Read: What is Autocratic Leadership? Benefits, Skills & Examples

3. Custodial Model

The Custodial Model of organizational behavior focuses on employee welfare and security,
emphasizing benefits over authority. In response to dissatisfaction with autocratic systems, it
prioritizes financial rewards and job stability. This model arose in the mid-20th century when
organizations sought to improve morale through economic incentives.

It fits within the broader spectrum of organizational behavior models by offering a structured,
security-driven approach, contrasting with the collaborative, collegial model of
organizational behavior.

Characteristics of the Custodial Model

Several features define this model. Have a look at them.

 Dependence on organizational benefits rather than leadership.

 Focus on financial security, healthcare, and pensions.
 Employees exhibit passive cooperation, often feeling obligated to stay.

Advantages of the Custodial Model

The custodial model offers notable benefits. Here are some of them.

 Reduces employee turnover through enhanced job security.

 Boosts morale by addressing financial and personal needs.
 Creates a stable and predictable workforce.
Limitations of the Custodial Model

While effective, it has drawbacks, as mentioned below.

 Discourages innovation and initiative among employees.

 Promotes complacency rather than engagement.
 Financially burdensome for organizations.

Application of Custodial Model with Examples

IBM uses the custodial approach, focusing on job security, benefits, and pensions to create a
stable work environment. This model leads to employee loyalty but may lack motivation for
innovation.

4. Supportive Model

The Supportive Model shifts the focus to leadership, which shapes organizational behavior.
Unlike autocratic systems, this model empowers individuals by fostering personal growth.
Originating during the human relations movement, it addresses the need for job satisfaction.

It fits within the spectrum of organizational behavior models as a balanced alternative,

bridging authoritarian and collegial approaches.

Characteristics of the Supportive Model

The following traits define this approach.

 Emphasis on leadership fostering trust and motivation.

 Encourages employee participation in decision-making.
 Builds a culture of respect and recognition.

Advantages of the Supportive Model

The key benefits of this model are as follows.

 Enhances employee morale and productivity.

 Encourages innovation through a supportive environment.
 Builds loyalty and reduces turnover.

Limitations of the Supportive Model

Here are some of the challenges that arise in implementation.

 Requires skilled and empathetic leadership.

 Ineffective in organizations resistant to change.
 It may fail in high-pressure environments that require rapid decisions.
Application of Supportive Model with Examples

Google exemplifies this model by fostering employee development and satisfaction through
flexible working conditions and employee support programs. This boosts morale and
encourages innovation and productivity.

5. Collegial Model

The Collegial Model represents a paradigm shift in organizational behavior. It focuses on

teamwork and shared responsibility. Employees and leaders function as partners rather than
subordinates, fostering mutual respect.

Developed as a response to rigid hierarchical structures, it addresses the need for

collaboration in modern, dynamic organizations. This model stands out among organizational
behavior models for promoting a culture of trust and unity.

Characteristics of the Collegial Model

Here are some of the traits that distinguish this model.

 Team-based structure with shared authority and accountability.

 High levels of mutual respect and trust.
 Employees are motivated by intrinsic factors like recognition and achievement.

Advantages of the Collegial Model

Key strengths of this model include the following.

 Encourages innovation and collaboration.

 Builds a solid organizational culture and loyalty.
 Enhances job satisfaction and productivity.

Limitations of the Collegial Model

Here are some of the potential challenges of the Collegial Model.

 Difficult to implement in hierarchical organizations.

 It requires significant time and effort to build trust.
 They may struggle in high-pressure or rigid industries.

Application of Collegial Model with Examples

At Gore-Tex, a collegial structure supports a team-oriented approach where employees work

as partners, fostering creativity and accountability. This structure empowers employees and
enhances collaborative innovation.

6. System Model

The System Model of organizational behavior views an organization as an interconnected,

dynamic system. This model emphasizes harmony, synergy, and alignment between all
components: people, processes, and the external environment. It emerged as organizations
faced increasing complexity, requiring more adaptive and collaborative approaches.

By recognizing that actions in one area influence the whole, this model stands out as a
holistic organizational behavior model, complementing the collaborative, collegial model of
organizational behavior.

Characteristics of the System Model

Have a look at the key characteristics of this model.

 A focus on interdependence among departments and roles.

 Dynamic adaptability to internal and external changes.
 Employee engagement through meaningful contributions to the system.

Advantages of the System Model

Here are some of the benefits offered by this model.

 It enhances collaboration and reduces silos within organizations.

 Encourages innovation by promoting system-wide thinking.
 Adapts effectively to changes in market or industry conditions.

Limitations of the System Model

However, it presents particular challenges. Here are some of them.

 Complex to implement in traditional, rigid organizations.

 Demands high levels of communication and trust.
 Risks inefficiency if one part of the system underperforms.

Application of System Model with Examples

Toyota employs a system model where every employee’s role contributes to overall
organizational goals. Through methods like the Toyota Production System, it achieves
continuous improvement and efficiency.

Ready to tackle challenges in employee engagement? UpGrad’s specialized courses in

management will give you the tools you need!

7. Human Value Model

The Human Value Model centers on respecting and leveraging human potential. This model
emphasizes individual dignity, self-worth, and growth, fostering an environment where
employees thrive. It gained prominence during the rise of the human relations movement,
addressing the need for ethical treatment and intrinsic motivation.

As part of the spectrum of organizational behavior models, it aligns with the empathetic
collegial model of organizational behavior but focuses more on individual growth.
Characteristics of the Human Value Model

Here are some key characteristics of the Human Value Model.

 Prioritization of employee well-being and empowerment.

 Recognition of diversity and individuality in the workplace.
 Focus on personal and professional development opportunities.

Advantages of the Human Value Model

The strengths of this model include the following.

 Fosters a highly motivated and engaged workforce.

 Reduces workplace conflicts by emphasizing respect.
 Builds long-term loyalty and reduces turnover rates.

Limitations of the Human Value Model

Despite its appeal, it has limitations, which are as follows.

 It is time-intensive to develop meaningful employee relationships.

 Difficult to implement in highly competitive or cutthroat industries.
 It may conflict with profit-driven organizational goals.

Application of Human Value Model with Examples

Patagonia focuses on respect, transparency, and employee well-being. This model integrates
corporate social responsibility and employee welfare, resulting in high job satisfaction and
commitment to company values.

Also Read: Importance of Business Environment: Definition and Features

8. Contingency Model

The Contingency Model asserts that no single management approach fits all situations. This
model tailors strategies to specific organizational contexts, emphasizing flexibility.

Developed as businesses encountered diverse challenges, it bridges gaps by considering

variables like culture, size, and external pressures. Among organizational behavior models, it
complements the adaptable collegial model of organizational behavior by offering a
situational perspective.

Characteristics of the Contingency Model

Here are some of the features of the Contingency Model.

 Context-dependent decision-making and strategies.

 Emphasis on environmental, structural, and leadership variables.
 A dynamic approach to aligning goals with circumstances.
Advantages of the Contingency Model

This model excels in several areas, including the following.

 Promotes flexibility in navigating complex challenges.

 Enhances decision-making by addressing specific needs.
 Accommodates cultural and industry diversity.

Limitations of the Contingency Model

Its drawbacks are as follows.

 Requires skilled leaders capable of assessing dynamic variables.

 This may lead to inconsistency in employee expectations.
 It is challenging to implement across global organizations with varied contexts.

Application of Contingency Model with Examples

General Electric (GE) applies the contingency model, adapting its approach based on changes
in the business environment. It has shifted between structures as needed, adapting to market
demands and internal capacities.

Challenges Faced by Management

Challenges Faced by Management!

The changing economic world is throwing new challenges to the managers. The management
concepts and practices are shaping ‘tomorrow’s history’. A number of changes are taking
place which are influencing the work of managers. Some of these changes are globalisation,
total quality management, work force diversity, innovation and change, empowerment and
teams, downsizing, contingent workers etc.

Globalisation:

Most of the countries are opening their borders to foreign products as well as foreign
producers. The companies of developed countries are entering foreign countries by opening
manufacturing facilities there. The companies like Siemens, Remington, Singer, for instance,
were selling their products in foreign markets during nineteenth century. The companies like
Fiat, Unilever and Royal Dutch had become multinationals by 1920. Since 1960
multinational companies have become a common sight.

These companies first go to foreign countries just by exporting their products. The orders are
fulfilled when received. In the second stage, companies make commitment to sell these
products in foreign countries or have them made in foreign factories. It involves an active
international involvement. The next stage is of pursuing international markets aggressively.
Management can license or franchise to another firm the right to use its brand name,
technology or product specifications.

Managements of global companies are adjusting their organisational structures as per the
requirements of situations. The managers are being taught to be global in approach.
Generally, the executives from concerned countries are given the responsibilities for running
the subsidiaries.

Work Force Diversity:

The composition of work force is fast changing. Earlier work force consisted mainly of male
persons who had to support a non-working wife and children. At present, women have joined
almost every type of job. In some professions their number is exceeding that of men folk. In
India women are entering education and medical professions in large number and are also
cornering most of the office jobs. This is already there in America and other developed
countries. Workers are now more heterogeneous in terms of gender, race, ethnicity, age and
other characteristics that reflect differences.

Some managers feel that diversity can be asset because it brings a broad range of viewpoints
and problem solving skills to the company. It also gives a powerful competitive advantage.
The managers will have to use diversity to their advantage. The diversity brings in different
cultural values, different lifestyles, ethics etc. It was assumed earlier that persons coming
from different backgrounds will assimilate themselves in the organisational culture. This is
not happening at present.

The challenge for management is to make their organisations more accommodating to diverse
groups of people addressing different lifestyles, family needs and work styles. Managers will
have to shift their philosophy from treating everyone alike to recognizing difference and
responding to those differences in ways that will ensure employee retention and greater
productivity. Many companies such as Eastman, Kodak, Reebok, Ryder Systems, Baxter
Healthcare have developed on-going diversity management programs.

Stimulating Innovation and Change:

The times are changing fast. Earlier the change was slow and managers were working in
stable environment. The organisational world which existed in those companies who set up
manufacturing facilities in foreign countries had to send technical experts at initial times.
Normally, only a few persons come from the parent company and other managerial personnel
are employed from the host country. The managements of multinational and transnational
companies have to study the legal-political and cultural environment of the host country and
device managerial practices and policies accordingly.

Total Quality Management:

There is a new awareness about quality in industry. The developed countries gave proper
emphasis to the quality of gods produced. Underdeveloped and developing countries
concentrated more on quantum of production than on quality of products. The goods
produced by under-developed countries could not find a place in world markets due to their
lower quality standards. India has suffered on this account due to its own policies.

Total quality management is the mobilisation of the whole organisation to achieve quality
continuously, economically and in entirety. Quality cannot be improved through production
process only. It is possible through an improvement in purchasing, marketing, after sale
service and many other factors. Total quality can be achieved with the co-ordination of
various aspects related to purchase, production, sales etc.
In Atkinson’s views, total quality is a strategic approach to producing the best product and
service possible through constant innovation. Total quality control is an effort in which
everyone and every function of the organisation participates.

Quality consciousness has now become an international phenomenon. All types of companies
are adopting latest quality standards. The quality gurus namely Dr. W. Edwards Deming,
Joseph M. Juran, Dr. Genichi Jaguchi, Philip B. Crosby created quality consciousness among
manufacturers and suggested better and improved ways for improving it. Total quality
management has now become a wave and it is receiving due attention of producers as well as
consumers. Every management has to take care of total quality management otherwise its
products will not find place in present competitive world.

Empowerment and Teams:

The earlier thinking of Frederick Taylor where division of work was done in such a way that
thinking process was assigned to managers while doing part was left for workers. The
workers were supposed to do the repetitive work again and again this division of work may
be valid during Taylor’s times but this is not valid at present. The workers at present are
considered more knowledgeable and are relied to complete their work in a better way.
Sometimes workers are considered to be performing better than even their managers.

Managers now recognise that they can often improve quality, productivity and employee
commitment by redesigning jobs and letting individual workers and work teams make job-
related decisions. This is called empowering employees. Many organisations have achieved
better results by empowering employees and allowing them to plan and execute their work.
Human resource theorists have been criticising over specialising of employees and stifling
their capabilities. Hallmark, AT & T, Motorola have successfully tried this method.

Downsizing:

The downsizing or reduction in force has been going on in the last some years. Every
company is restructuring its organisation and laying off those employees who are no more
required. About 85 per cent of Fortune 1000 companies have downsized their white collar
force in recent years. Not only white collar jobs, blue collar jobs are also been reduced. Most
of the commercial banks in India have offered VRS (Voluntary Retirement Scheme) to their
employees and employees in large number have accepted this offer.

Maruti Udyog has recently repeated its VRS and many employees have vacated their jobs
voluntarily. Downsizing does not mean that work has been reduced in the organisation. In
fact work has increased and reduced number of work force is doing up this work. Managerial
layoffs create problems for the organisation.

Those who leave do not feel good and have resentment against the management, those who
remain in service also become a worried lot. They are uncertain about their future and do not
involve themselves whole heartedly in the work. The work productivity and quality may
suffer until employees again feel secure about their jobs.
Contingent Workers:

Another trend in management practices is the use of contingent workers. These are part-time,
temporary or freelance employees. Some labour experts contend that contingent workers
make up 13 percent of the work force, while others say that the figure is as high as 30 per
cent. The percentage of contingent workers is increasing every day. The companies have
started downsizing their work force, some of these employees try to get part-time jobs to earn
their living.

The corporations are also of the view that the employment of a contingent employee does not
bring much of financial liabilities as compared to regular permanent employees. Managers
have an additional responsibility to see that contingent workers are treated properly at work
place. The managers have to keep the whole work force motivated and creatively involved in
work.

Skills for Managing Challenging personality

1.Approach with an Encouraging Mindset.

Managing a challenging individual can become frustrating and easily dampen your morale
and the morale of your team. It can be tempting to fall into despair and think the situation is
hopeless. Approaching the situation with an encouraging spirit and cultivating the mindset
that each of us can personally grow and develop will help remind everyone that problems are
solvable, and the situation can be improved. Rewarding and applauding the wins, no matter
how small, can inspire a forward momentum and uplift even the most difficult personalities.

2. Search and Stand up for the Truth.

Don’t shy away from the truth. Being the leader who is willing to bring up hard facts and
work through issues with integrity and kindness will maintain a culture of transparency and
honesty in your teams. It creates a sense of accountability, which may encourage more
challenging individuals to own their mistakes and be a part of solutions rather than creating
hurdles. It is also important to recognize the truth of how our own personalities as leaders
might be contributing to the challenge!

3. Focus on the Common Goal.

Bringing attention to your shared goals encourages people to keep their heads in the game.
Some people get sidetracked by personal agendas and ideas. When things are a bit chaotic,
heated, or emotional, directing people back to the reason you’re all there can take pressure off
the situation and bring clarity to move forward.

4. Demonstrate Calm Patience.

Staying levelheaded during difficult conversations or when things become too animated can
help restore productive thinking. Being calm creates a safe space for people to think clearly
and resolve conflicts, avoiding the unnecessary eruptions that occur in a more volatile
environment. Individuals with a more turbulent personality will find stability in your
example.
5. Find the Silver Lining.

Being willing to see the positive attributes of all different types of personalities can make you
a binding force in your organization. Utilizing the best of what people have to offer makes for
a more effective, productive team. People who feel valued are more willing to work together
with others. While superfluous positivity can be toxic, recognizing your team members’
assets makes it possible to move past current obstacles to the opportunities on the other side.

6. Keep Your Mind Open.

When working with and leading challenging people, it helps to think outside the box and
innovate new ways to interact. Not every person can be managed in the same way—different
people need different communication styles and different solutions. Allowing for creative
thinking and being open to try new methods can alleviate the difficulties that arise with more
rigid or taxing personalities.

We will all encounter a myriad of personalities throughout our work lives, and some will
inevitably challenge us more than others. There is no one-size-fits-all approach to working
with and leading individuals who may try our patience but developing these skills can
increase the probability we will find an effective way forward in our relationships with them.

Perception:

Perception" is defined as the "process by which individuals select, organize, and interpret the
input from their senses to give meaning and order to the world around them".[3] This
definition overlaps with the higher-order perceptual processes as defined biologically (the
lower-order biological processes are not susceptible to management; these low-level
processes include underlying perceptual categorization performed prior to conscious
categorization.[4]). Components of perception include the perceiver, target of perception, and
the situation. Factors that influence the perceiver include:

 Schema: organization and interpretation of information based on past experiences and

knowledge
 Motivational state: needs, values, and desires of a perceiver at the time of perception
 Mood: emotions of the perceiver at the time of perception

Factors that influence the target include:

  Ambiguity: a lack of clarity. If ambiguity increases, the perceiver may find it harder
to form an accurate perception
 Social status: a person's real or perceived position in society or in an organization
 Impression management: an attempt to control the perceptions or impressions of
others. Targets are likely to use impression management tactics when interacting with
perceivers who have power over them. Several impression management tactics
include behavioral matching between the target of perception and the perceiver, self-
promotion (presenting one's self in a positive light), conforming to situational norms,
appreciating others, or being consistent.[3]

History

The phrase "perception management" has often functioned as a euphemism for "an aspect of
information warfare." A scholar in the field notes a distinction between "perception
management" and public diplomacy, which "does not, as a rule, involve falsehood and
deception, whereas these are important ingredients of perception management; the purpose is
to get the other side to believe what one wishes it to believe, whatever the truth may be."[5]
The phrase "perception management" is filtering into common use as a synonym for
"persuasion." Public relations firms now offer "perception management" as one of their
services. Similarly, public officials who are being accused of shading the truth are now
frequently charged with engaging in "perception management" when disseminating
information to media or to the general public.

Although perception management operations are typically carried out within the international
arena between governments, and between governments and citizens, use of perception
management techniques have become part of mainstream information management systems
in many ways that do not concern military campaigns or government relations with citizenry.
Businesses may even contract with other businesses to conduct perception management for
them, or they may conduct it in-house with their public relations staff.

As Stan Moore has written, "Just because truth has been omitted, does not mean that truth is
not true. Just because reality has not been perceived, does not mean that it is not real."[6]

ATTITUDE:

Good attitudes supercharge organizational performance beyond what the skill/talent level
would indicate," according to Perry Miles. "Attitude is one of the strongest determinants of
performance," added Richard McLaughlin. Their characterizations reflected the views of
nearly all respondents to the August questions of the month. And many respondents believe
they know who is responsible for the "attitude deficit": leaders and managers.

Edward Hare summed up the views of many respondents most succinctly: "Of course we
have an attitude problem... The 'attitude problem' is at the top, not the bottom!" Meenal
Dandavate concurred: "[Attitude]...can be cultivated consciously, but mostly it has the
tendency to flow/cascade from the top down." Others concentrated on reasons for the
dilemma as well as possible solutions.

The biggest problem, according to several readers, is identifying attitude in the first place.
Bradburne Millett asks, "What sort of measurements are you contemplating to reveal desired
attitudes on the scale needed to recognize their presence or absence and correct for
shortcomings?" Pamela Woodnick pointed out that "So many managers are afraid that
attitude is too soft, too difficult to assess and to use as a key hiring criteria." Saurabh
Dwivedy commented that "...attitude, morals, ethics, and leadership skills are all linked
together on a broader plane...They are difficult to comprehend because they lack an operative
definition." Art Warbelow (who emphasizes attitude in selecting aviation pilots) said, "The
tough part is assessing attitude in the job interview... I can't assess it beforehand, but I know it
when I see it..."

Arindam Mukherjee suggested, "The best way to go about it in the corporate world is to have
good leaders who can lead by example with positive and solution-oriented attitudes." Kevin
Bowe added, "Attitudes can be learned, and winning behaviors fostered, with principle-
centered management and a conscious investment in value-based employee development."
Khadija Khan, while agreeing that "...it is hard to identify attitude problems in a short
interview process," proposed a response: "One innovative approach that we use is to organize
a collective activity for a day or two...and ask prospective candidates looking for executive
positions to join in before finally short-listing them for the interview."

What is organizational learning?

Organizational learning is a method used by business leaders. It is the process of transferring
knowledge among employees in an organization based on information gained from business
experience. Experts in organizational learning categorize learning into four kinds of
knowledge:

Individual knowledge
Individual learning involves a single employee learning new information, ideas and skills.
When individual employees integrate new information into their work, this can cause their
performance and productivity to improve, allowing them to affect their team positively. An
employee can maximize the benefit of their individual learning by sharing their new
knowledge and techniques with their coworkers.Related: Learn About Organizational
Leadership and Its Components

Group knowledge
Teams and groups of employees may also learn new skills and ideas together. When
members of a professional team spend several hours working alongside each other, they
coordinate and develop particular dynamics that allow them to learn as a unit. Because of a
phenomenon called "social-psychological awareness," members of a group identify as being
part of a team and recognize that one group member's actions have the power to affect the
rest of the team.If one member of the group encounters a particular challenge, they bring their
knowledge and experience to the rest of the group when confronting a similar issue,
benefiting all members of the group by spreading the information. Group learning can affect
your team by having multiple employees change their behavior to reflect new insights,
increasing productivity and problem-solving skills across various teams and projects.

Organizational knowledge
Organizational knowledge is the business's or team's system of gaining information related to
its function and success and the spread of this knowledge across the organization. Members
of the organization can then use this information to adapt to industry changes and increase the
efficiency of its processes. Business leaders may consider organizational learning to be
successful when the organization as a whole learns from a single incident or experience.
Organizational knowledge can help ensure that a company is constantly growing and
adjusting, which may contribute to its continued success.
What is Organizational Learning Theory?

The goal of organizational learning is to improve companies through knowledge management

and understanding. It involves the systems and networks to facilitate knowledge creation and
transfer within an organization.

It’s easy to focus on individual learning but it’s becoming more vital than ever to put an
emphasis on learning as an organization.

An industry survey states that, despite investing in digital transformation for two years to
survive the pandemic, 75 percent of companies fear lagging innovation will lead to
competitive displacement.

Companies like Apple and Microsoft have been around for decades. As they’ve navigated the
ups and downs, they’ve continued to provide their customers with the best products and stay
competitive.

ORGANIZATIONAL LEARNING THEORY - ARGYRIS

Argyris and Schön explain that both single-loop and double-loop learning processes are
present in organizations and are two types of organizational learning. Single-loop
learning occurs when an organization detects a mistake, corrects it, and carries on with its
present policies and objectives.

Chris Argyris: theories of action, double-loop learning and organizational

learning

Chris Argyris: theories of action, double-loop learning and organizational

learning. The work of Chris Argyris (1923-2013) has influenced thinking
about the relationship of people and organizations, organizational learning
and action research. Here we examine some key aspects of his thinking.

contents: introduction · life · theories of action: theory in use and espoused theory · single-
loop and double-loop learning · model I and model II · organizational learning · conclusion ·
further reading and references · links · cite

Chris Argyris has made a significant contribution to the development of our appreciation of
organizational learning, and, almost in passing, deepened our understanding of experiential
learning. On this page we examine the significance of the models he developed with Donald
Schön of single-loop and double-loop learning, and how these translate into contrasting
models of organizational learning systems.

Theories of action: theory in use and espoused theory

Our starting point is Argyris and Schön’s (1974) argument that people have mental maps with
regard to how to act in situations. This involves the way they plan, implement and review
their actions. Furthermore, they assert that it is these maps that guide people’s actions rather
than the theories they explicitly espouse. What is more, fewer people are aware of the maps
or theories they do use (Argyris, 1980). One way of making sense of this is to say that there is
split between theory and action. However, Argyris and Schön suggest that two theories of
action are involved.

The notion of a theory of action can be seen as growing out of earlier research by Chris
Argyris into the relationships between individuals and organizations (Argyris 1957, 1962,
1964). A theory of action is first a theory: ‘its most general properties are properties that all
theories share, and the most general criteria that apply to it – such as generality, centrality and
simplicity – are criteria applied to all theories’ (Argyris and Schön 1974: 4). The distinction
made between the two contrasting theories of action is between those theories that are
implicit in what we do as practitioners and managers, and those on which we call to speak of
our actions to others. The former can be described as theories-in-use. They govern actual
behaviour and tend to be tacit structures. Their relation to action ‘is like the relation of
grammar-in-use to speech; they contain assumptions about self, others and environment –
these assumptions constitute a microcosm of science in everyday life’ (Argyris & Schön
1974: 30). The words we use to convey what we, do or what we would like others to think we
do, can then be called espoused theory.

Organizational learning theory in use includes three levels of learning:

 Single-loop learning

This level focuses on actions and correcting errors within the organization's policies,
goals, and assumptions. For example, if sales are down, marketing managers might
tweak the strategy to improve sales.

Organizational learning is the process of creating, retaining, and transferring knowledge

within an organization. An organization improves over time as it gains experience. From this
experience, it is able to create knowledge. This knowledge is broad, covering any topic that
could better an organization. Examples may include ways to increase production efficiency or
to develop beneficial investor relations. Knowledge is created at four different units:
individual, group, organizational, and inter organizational.

The most common way to measure organizational learning is a learning curve. Learning
curves are a relationship showing how as an organization produces more of a product or
service, it increases its productivity, efficiency, reliability and/or quality of production with
diminishing returns. Learning curves vary due to organizational learning rates. Organizational
learning rates are affected by individual proficiency, improvements in an organization's
technology, and improvements in the structures, routines and methods of coordination.[

 ndividual learning is the smallest community at which learning can occur. An

individual learns new skills or ideas, and their productivity at work may increase as
they gain expertise. The individual can decide whether or not to share their knowledge
with the rest of the group. If the individual leaves the group and doesn't share their
knowledge before leaving, the group loses this knowledge.[11] In their study of
software development, Boh, Slaughter and Espinosa (2007) found that individuals
were more productive the more specialized experience they had with a certain system.
[12]

 Group learning is the next largest community[13] There are conflicting definitions of
group learning among researchers studying it. One belief is that group learning is a
process in which a group takes action, gets feedback, and uses this feedback to modify
 their future action.[14] Another belief is that group learning happens when a member
shares their individual knowledge with other group members. Others have suggested
that group learning is primarily a process of error detection and correction[15] or that
group learning is primarily about the processes of interpretation and integration.[16]
Once this happens, individual learning turns into group learning.[11] Reagans, Argote,
and Brooks (2005) studied group learning by examining joint-replacement surgery in
teaching hospitals. They concluded that "increased experience working together in a
team promoted better coordination and teamwork."[17] Working together in a team also
allowed members to share their knowledge with others and learn from other members.
To sum up the different definitions cover following aspects: task independence (what
one group member does affects and is affected by another group member); social
psychological awareness (members perceive themselves as a group and are perceived
as a group); and social embeddedness (the group exists in a larger social system).[18]

 Organizational learning is the way in which an organization creates and organizes

knowledge relating to their functions and culture. Organizational learning happens in
all of the organization's activities, and it happens in different speeds. The goal of
organizational learning is to successfully adapt to changing environments, to adjust
under uncertain conditions, and to increase efficiency.[19] According to Argote (1993),
managers in manufacturing plants saw organization learning occur when they found
ways to make individual workers more proficient, improve the organization's
"technology, tooling, and layout," improve the organization's structure, and determine
the organization's strengths.[4]
 Interorganizational learning is the way in which different organizations in an alliance
collaborate, share knowledge, and learn from one another. An organization is able to
improve its "processes and products by integrating new insights and knowledge" from
another organization.[20] By learning from another organization, an organization is
able to cut time costs, decrease the risks associated with problem solving, and learn
faster. Learning from another organization can mean either applying the same ideas
used by that organization or modifying these ideas, thereby creating innovation.[20]
Inter-organizational learning occurs frequently in fixed business models, such as
franchising. The franchisee looking to use the franchisor's brand has to learn how to
use the organization's business model before starting a franchise.[21]

UNIT-2
MOTIVATION AND JOB SATISFACTION:

Theories of Motivation

Understanding Theories of Motivation and types of motivational theories, what are the types
of content motivational theories and process motivational theories, and the difference
between the two.

The word ‘Motivation’ is derived from the Latin word movere, meaning “to move”. It is
referred to as a combination of motive and action. Theories of motivation or motivation
theory are the study of understanding what drives a person to work for achieving a particular
goal or outcome. There are two types of motivational theories:

1. Content motivation theories

2. Process motivation theories

What are the 5 Theories of Motivation?

Motivation is a huge field of study. Psychologists have proposed many different theories of
motivation. Some of the most famous motivational theories include the following:

1. Maslow’s Theory of Hierarchical Needs

Abraham Maslow postulated that a person will be motivated when all his needs are
fulfilled. People do not work for security or money, but they work to contribute and to use
their skills. He demonstrated this by creating a pyramid to show how people are motivated
and mentioned that ONE CANNOT ASCEND TO THE NEXT LEVEL UNLESS LOWER-
LEVEL NEEDS ARE FULFILLED. The lowest level needs in the pyramid are basic needs
and unless these lower-level needs are satisfied people do not look at working toward
satisfying the upper-level needs.

Below is the hierarchy of needs:

 Physiological needs: are basic needs for survival such as air, sleep, food, water,
clothing, sex, and shelter.
 Safety needs: Protection from threats, deprivation, and other dangers (e.g., health,
secure employment, and property)
 Social (belongingness and love) needs: The need for association, affiliation,
friendship, and so on.
 Self-esteem needs: The need for respect and recognition.
 Self-actualization needs: The opportunity for personal development, learning, and
fun/creative/challenging work. Self-actualization is the highest-level need to which a
human being can aspire.

The leader will have to understand at what level the team members are currently, and seek
out to help them to satisfy those specific needs and accordingly work to help fulfill those
needs. This will help the team members perform better and move ahead with the project.
A PMP certification will help you better understand this concept. Also, as their needs get
fulfilled, the team members will start performing, till the time they start thinking of fulfilling
the next upper level of need as mentioned in the pyramid.

2. Hertzberg’s two-factor Theory

Hertzberg classified the needs into two broad categories; namely hygiene factors and
motivating factors:

 poor hygiene factors may destroy motivation but improving them under most
circumstances will not improve team motivation
  hygiene factors only are not sufficient to motivate people, but motivator factors are
also required

Herzberg’s two-factor principles

Influenced by Hygiene Factors Improving motivator factors Influenced by motivator
(Dis-satisfiers) increases job satisfaction factors (Satisfiers)
 Achievements
 Working condition
 Recognition
 Coworker relations
Improving the hygiene factors  Responsibility
 Policies & rules
decreases job dissatisfaction  Work itself
 Supervisor quality
 Personal growth

3. McClelland’s Theory of Needs

McClelland affirms that we all have three motivating drivers, which do not depend on our
gender or age. One of these drives will be dominant in our behavior. The dominant drive
depends on our life experiences.

The three motivators are:

 Achievement: a need to accomplish and demonstrate own competence. People with a

high need for achievement prefer tasks that provide for personal responsibility and
results based on their own efforts. They also prefer quick acknowledgment of their
progress.
 Affiliation: a need for love, belonging and social acceptance. People with a high need
for affiliation are motivated by being liked and accepted by others. They tend to
participate in social gatherings and may be uncomfortable with conflict.
 Power: a need for controlling own work or the work of others. People with a high
need for power desire situations in which they exercise power and influence over
others. They aspire for positions with status and authority and tend to be more
concerned about their level of influence than about effective work performance.

4. Vroom’s Theory of Expectancy

Vroom’s expectancy theory of motivation says that an individual’s motivation is affected by

their expectations about the future. In his view, an individual’s motivation is affected by –

 Expectancy: Here the belief is that increased effort will lead to increased
performance i.e., if I work harder then it will be better. This is affected by things such
as:
o Having the appropriate resources available (e.g., raw materials, time)
o Having the appropriate management skills to do the job
o Having the required support to get the job done (e.g., supervisor support, or
correct information on the job)
 Instrumentality: Here the belief is that if you perform well, then the outcome will be
a valuable one for me. i.e., if I do a good job, there is something in it for me. This is
affected by things such as:
o A clear understanding of the relationship between performance and outcomes
– e.g., the rules of the reward ‘game’
 o Trust in the people who will take the decisions on who gets what outcome
o Transparency in the process decides who gets what outcome
 Valence: is how much importance the individual places upon the expected outcome.
For example, if someone is motivated by money, he or she might not value offers of
additional time off.

Motivation = V * I * E

The three elements are important when choosing one element over another because they are
clearly defined:

 E>P expectancy: our assessment of the probability that our efforts will lead to the
required performance level.
 P>O expectancy: our assessment of the probability that our successful performance
will lead to certain outcomes.

5. McGregor’s Theory X and Theory Y

Theory X and Theory Y were first explained by McGregor in his book, "The Human Side of
Enterprise," and they refer to two styles of management – authoritarian (Theory X) and
participative (Theory Y).

Theory X: Managers who accept this theory believe that if you feel that your team members
dislike their work, have little motivation, need to be watched every minute, and are incapable
of being accountable for their work, avoid responsibility and avoid work whenever possible,
then you are likely to use an authoritarian style of management. According to McGregor, this
approach is very "hands-on" and usually involves micromanaging people's work to ensure
that it gets done properly.

Theory Y: Managers who accept this theory believe that if people are willing to work
without supervision, take pride in their work, see it as a challenge, and want to achieve more,
they can direct their own efforts, take ownership of their work and do it effectively by
themselves. These managers use a decentralized, participative management style.

6. Alderfer’s ERG Theory

C. P. Alderfer, an American psychologist, developed Maslow’s hierarchy of needs into a

theory of his own.

His theory suggests that there are three groups of core needs: existence (E), relatedness (R),
and growth (G). These groups are aligned with Maslow’s levels of physiological needs, social
needs, and self-actualization needs, respectively.

Existence needs concern our basic material requirements for living, which include what
Maslow categorized as physiological needs such as air, sleep, food, water, clothing, sex and
shelter and safety-related needs such as health, secure employment, and property.

Relatedness needs have to do with the importance of maintaining interpersonal relationships.

These needs are based on social interactions with others and are aligned with Maslow’s levels
of love/belonging-related needs such as friendship, family, and sexual intimacy and esteem-
related needs such as gaining the respect of others.

Growth needs describe our intrinsic desire for personal development. These needs are
aligned with the other part of Maslow’s esteem-related needs such as self-esteem, self-
confidence, and achievement, and self-actualization needs such as morality, creativity,
problem-solving, and discovery.

Alderfer is of the opinion that when a certain category of needs is not being met, people will
redouble their efforts to fulfill needs in a lower category.

Maslow’s theory is very rigid and it assumes that the needs follow a specific and orderly
hierarchy and unless a lower-level need is satisfied, an individual cannot proceed to the
higher-level need i.e., an individual remains at a particular need level until that need is
satisfied.

Whereas, according to Alderfer’s theory, if a higher-level need is aggravated, an individual

may revert to increasing the satisfaction of a lower-level need. This is called the frustration-
regression aspect of ERG theory. ERG theory is very flexible as Alderfer perceived the needs
as a range/variety instead of perceiving them as a hierarchy i.e., an individual can work on
growth needs even if his existence or relatedness needs remain unsatisfied.

For e.g., when growth needs aggravate, then an individual might be motivated to accomplish
the relatedness need and if there are issues in accomplishing relatedness needs, then he might
be motivated by the existence needs. Hence in this manner, frustration or aggravation can
result in regression to a lower-level need.

Another example could be, if someone’s self-esteem is suffering, he or she will invest more
effort in the relatedness category of needs.

Content theory

Content theory is a subset of motivational theories that try to define what motivates people.
Content theories of motivation often describe a system of needs that motivate peoples'
actions. While process theories of motivation attempt to explain how and why our
motivations affect our behaviors, content theories of motivation attempt to define what those
motives or needs are. Content theory includes the work of David McClelland, Abraham
Maslow and other psychologically.

18 Motivation: Content theories

Dr. Pooja Mehta

1. Learning Outcome
2. Introduction
3. Meaning and Definitions of Motivation
4. Importance of Motivation
5. Classification of theories of Motivation
6. Content theories
7. Summary
1. Learning Outcome:

 After completing this module the students will be able to: Understand the concept of
motivation.
 Describe the importance of motivation in an organisational context. Comprehend the
content theories of motivation.
 Critically evaluate advantages and disadvantages of content theories of motivation

2. Introduction

Performance of every individual depends upon hisr ability to do work and level of
motivation. In other words we can say that both of these factors largely influence efficiency
of individuals. Without motivation, performance of even a highly competent employee will
be very low. It also means that motivation is an utmost important factor that encourages
individuals to give their best efforts and reach to their personal as well as organisational
goals. A strong positive motivation will always facilitate an employee to increase his
abilities, performance and output, whereas a negative motivation will lead to decreased level
of performance. Therefore, in order to optimally utilise human resources of the organisation
and to retain the same in an organisation, management should make all possible efforts to
motivate its employees. The motivated employees always prove an invaluable asset to the
organisation as motivated employees always tend to maximise their contribution in
achievement of organisational goals and perform beyond their role profile.

3. Meaning and Definitions of Motivation

The word motivation is derived from the Latin word which means ‘to move’. Motivation is a
psychological phenomenon which generates within an individual an urge to act in a certain
manner. If an individual has some unfulfilled need, he will always be motivated to work more
in order to satisfy the same. The behaviour of such individual will always be directed towards
achievement of his needs. The process of motivation has three key elements viz: Intensity,
direction and persistence. An individual’s motivation towards his goal is explained by his
intensity, direction and persistence of efforts towards his goal. The following equation can
describe this phenomenon.

Motivation=Intensity*Direction*Persistence of efforts

Intensity is how strongly we put efforts to achieve our goal.

Direction in which efforts of an individual are directed determine how well an individual
will perform. Efforts of an individual should always be directed in a direction which is
beneficial.

Persistence is for how long an individual keep on working hard to achieve his goals.

The above discussion explains that the process of motivation starts with a need deficiency,
which activates behaviour of an individual towards achievement of the goal or need.
Following definitions of motivation will further elaborate the process of motivation:
According to Dublin, “Motivation is the complex of forces starting and keeping a person at
work in an organisation.”

According to Berelson and Steiner, “A Motivation is an inner state that energizes, activates or
moves and directs or channels behaviour goals”.

From the above definitions, following inferences about the motivation can be drawn:

Motivation is inner feeling which energizes a person to work more.

Unfulfilled needs or desires of an individual prompt him to do a particular task. A person

always strives to fulfil his unsatisfied needs.

4. Importance of Motivation

The importance of the concept of motivation in an organisational context is explained by

following points:

a) Motivated employees always search for better and novel ways of doing their tasks. When
employees seek new ways of doings the things, they usually find them.

b) Motivated employees are more conscious for quality of their work. Such employees
contribute a lot in building image of the company amongst the customers as well as society.

c) Motivated employees are more productive than others.

d) All organisations need human resources in addition to non human resources in order to
achieve their goals. The concept of motivation is catching attention because it not only
motivates the employees perform better and go beyond their profile, but also help in retaining
them.

e) Motivation is a highly complex phenomenon which is affected by and affects multiple

factors in an organisational context. In order to understand why people behave in a certain
manner in an organisation, understanding the concept of motivation is very necessary.

5. Classification of Theories of Motivation

From the very initial stages, when organisations were established, various psychologists had
tried to search out the answer to one question: What motivates the people? F.W. Taylor in his
concept of Scientific Management advocated that individuals were primarily concerned with
satisfaction of their basic needs viz. need for food, shelter, water and air. Therefore, their
prime focus was on economic gains to satisfy their basic needs. Theorists of scientific
management linked performance of individuals with monetary rewards and incentive gains.
Thus, this theory focused on external motivation and pointed out that external motivation is
sufficient to encourage an individual to satisfy their basic needs. But, this theory did not take
into account the work climate, job situation and other factors related to the job of an
individual. Since then, many researchers and academicians have been trying to find out what
motivates the people? An in depth examination of theories will help us understand the
concept of motivation in better way. All theories of motivation can be classified into two
broad categories:

a) Content theories

b) Process theories

In this module we will study content theories of motivation in the following section

6. Content Theories of Motivation

Content theories attempt to describe the basic needs and drives that motivate an individual to
work more and better. These theories explain the linkage between human needs and their
work related behaviours. The content theories postulate that:

The above figure elaborates that unsatisfied individual needs creates urge in the individuals to
perform better to fulfil their needs. Theorists of content theories suggest that unsatisfied
needs activate behaviour towards achievement of goals. Monetary rewards and incentive
schemes can be used in organisation as a motivational tool to activate individual needs and to
motivate the employees. Maslow’s need hierarchy theory, Herzberg’s two factor theory,
Alderfer’s ERG theory, McClelland’s achievement theory are classified as content theories.

6.1 Maslow’s Need Hierarchy Theory

Abraham Maslow’s Need Hierarchy theory of motivation is the most common and simplest
theory of motivation. Maslow in his theory summarised that:

a) Every human being has a different set of needs and unsatisfied needs act as strong
motivators.

b) As every individual has many needs, they are arranged in the order of their importance
starting from most basic need to most complex needs.

c) The individual moves to the advanced level need only when the basic need is satisfied. If
basics needs are not satisfied, the higher level needs will be postponed.
 d) There are five basic needs and human beings tend to satisfy them in the order of their
hierarchy.

e) A satisfied need does not act as a motivator, only unsatisfied need continue to motivate a
human being.

f) Physiological and safety needs are finite in nature but higher level needs are infinite in
nature.

g) Various levels of needs are overlapping.

Hierarchy of Maslow’s needs is shown in the following figure:

1) Physiological needs: These needs include the most basic and obvious needs for survival
of human beings. These are the most powerful needs which motivate an individual till they
are satisfied. The need for food, water, oxygen, sleep, shelter, air etc may be categorised as
physiological needs. This category of needs represent the need for basic necessities of life
which are indispensible for the biological maintenance of a human being. If any of these
physiological needs is unsatisfied, the individual will primarily strive to satisfy that particular
need and will forget about other higher level needs. For example, a hungry person will never
seek any luxury of life or dream of building a new world until his need for food is fulfilled. In
the organisational context, employees’ need for salary and basic working conditions represent
his physiological needs.

2) Safety needs: Safety needs are next in the hierarchy of needs given by Abraham maslow.
Once the basic needs of an individual are satisfied, he will strive for fulfilment of second
level of needs which are popularly known as safety or security needs. Safety needs here
emphasise upon an assurance of continuity of job, security of source of income, provision for
old age, insurance, prediction of environmental factors surrounding an individual etc. In
an organisational context, safety needs are represented by job security, salary hike, safe
working conditions and unionisation etc.

3) Social needs: Social needs are at the third level of need hierarchy. When physiological
and safety needs of a human being are met, he starts putting efforts to satisfy his social needs.
These needs represent the need for love, affection, friendship, membership in groups, social
acceptance etc. In an organisational context, social needs are fulfilled by participation in a
work group, team and friendly supervision etc.

4) Self-esteem needs: Fourth level of need hierarchy is called self esteem needs. These
needs are concerned with self respect, self confidence, recognition, appreciation, prestige,
power etc. These needs give a sense of self worth and ego satisfaction. In an organisational
context, esteem needs are satisfied by job title, recognition by leader, challenging work,
responsibility, performance feedback and participation in decision making etc.

5) Self-actualisation needs: At the top of the hierarchy of needs is need for self
actualisation. These needs represent the need to be what a person is capable of becoming.
This need constitute an individuals’ mission of his life. An individual who has satisfied all
levels of his needs tries to fully utilise his talent, potential, skills and capacities. This need
signifies a person’s desire of personal achievement. The sense of personal achievement leads
to sense of psychological satisfaction. In an organisational context, self actualisation needs
are categorised as need to excel in one’s job and career, successfully managing a unit etc.

6.1.1 Critical analysis of Maslow’s theory:

Maslow’s need hierarchy theory was widely accepted on following grounds:

a) This theory is very simple and easy to understand.

b) It helps the managers in understanding how to motivate their employees. This model helps
the managers to identify varied needs of employees, recognising the fact that the every
individual has different needs and thereby offering rewards to satisfy particular needs.

c) This theory helps in explaining inter personal and intra personal variations in human
behaviour. The theory suggests that human behaviour changes with change of needs.

d) This model postulates that motivation is a completely dynamic phenomenon, changing

from one level of needs to another level.

Despite of its simplicity and other advantages, maslow’s theory was criticised on following
grounds:

a) Some researchers have proved that there is no hierarchy of needs as suggested by Maslow.
Some people may be deprived of lower level needs but may be motivated for higher level
needs. Mahatma Gandhi is a renowned example of this. Likewise, the people who are
motivated for higher order needs cannot forget about their need for food.
b) Assuming that the hierarchy of needs exists, the hierarchy is different in different
countries. Not only in different countries, but the hierarchy is different amongst the people
with in a country itself.

c) Need and satisfaction of need is purely a psychological phenomenon and some people
especially illiterate people may not be aware about their needs.

d) The theory is also criticised on the grounds that managers will never find enough time to
leisurely diagnose the level of need of every employee of their organisations.

6.2 Herzberg’s Motivation-Hygiene Theory

Fredrick Herzberg established the motivation-hygiene theory which is popularly known as

two factor theory of motivation. In late 1950s and early 1960s Herzberg and his associates
conducted a survey of 200 engineers and accountants. Critical incident method was used for
collecting the data. The respondents were asked two questions: 1) when did you feel good
about your job 2) when did you feel bad about your job. The responses revealed that factors
which made employees feel good were entirely different from the factors which made the
employees feel bad. Herzberg concluded that there are certain factors which tend to provide
satisfaction to the employees and on the other hand there are certain factors which are related
to job dissatisfaction. He categorised these factors into two categories:

a) Maintenance or Hygiene factors

b) Motivational factors

These factors are shown in the following figure:

a) Hygiene factors: Hygiene factors or maintenance factors do not motivate people, they just
prevent job dissatisfaction. If these factors are not there on the job, they will lead to the sense
of dissatisfaction amongst the employees, but on the other hand their presence will not satisfy
them. In other words, it can be said as these factors don’t act as a motivator. They don’t
provide any motivation to the employees but eliminate dissatisfaction. These factors are also
known as dissatisfiers, maintenance factors, job context factors or extrinsic factors.

b) Motivational factors: These factors are intrinsic factors. These factors are related to job
satisfaction and are known as motivators, satisfiers, intrinsic factors, job content factors.
These factors provide a sense of satisfaction among the employees and increase the level of
performance by motivating them. Any increase in these factors lead to increase in the level of
satisfaction and motivation among the employees.

According to Herzberg, satisfaction and dissatisfaction are not opposite poles of same
dimensions but they are two separate dimensions. Satisfaction is the result of motivators and
dissatisfaction is the result of hygiene factors. To motivate the employees, managers must
take into account both hygiene and motivational factors. Hygiene factors will reduce the
sense of dissatisfaction amongst the employees and motivational factors will provide the
sense of satisfaction to the employees. The following figure presents the contrasting views of
satisfaction and dissatisfaction as explained by Herzberg.
6.2.1 Critical analysis of Herzberg’s theory:

This theory was appreciated on the grounds that this theory draws attention towards the job
factors which are usually overlooked when it comes to motivate the employees. However, the
theory was criticised on the following grounds:

a) The methodology followed by Herzberg for carrying out survey was limited to engineers
and accountants only.

b) Moreover, respondents were asked to narrate the factors which they like about the job and
which they dislike about the job, and it is a common practice that when things go well people
take credit of it and on the other hand they put blame on extrinsic factors for their failure.

c) The theory largely provides the explanation of the job satisfaction. It is not really a theory
of motivation.

d) This theory did not take into consideration the impact of situational variables.

e) The two factors given by Herzberg: hygiene and motivational factors are not actually
distinct. They both contribute to job satisfaction and dissatisfaction.

Comparison between Maslow’s and Herzberg’s theories of motivation

6.3 Alderfer’s ERG Theory

On the lines of Maslow’s need hierarchy theory, Clayton Alderfer gave ERG theory of
motivation. Alderfer’s theory was revised version of Malsow’s theory, as he condensed the
five needs given by Maslow into three needs. The E, R and G of ERG theory stand for
existence, relatedness and growth. These are the three sets of needs defined by Alderfer.

a) Existence needs: These needs represent the basic needs of human beings for their
existence and survival. This set of needs combine the physiological and safety needs of
Maslow’s hierarchy model.

b) Relatedness needs: Relatedness needs are comprised of social and self-esteem

needs of Malsow’s hierarchy model. These needs represent the desire of human beings to
maintain interpersonal relations and social interactions.

c) Growth needs: These needs are similar to Malsow’s self-actualisation needs. These needs
represent an individual’s intrinsic desire for personal development, achievement and utilising
one’s full potential in the existing work environment.

Apart from the above discussed similarities between Maslow’s theory and Alderfer’s
theory,

Alderfer’s theory was different from Maslow’s theory in following aspects:

a) Instead of five levels of needs, Alderfer gave only three sets of needs.

b) Maslow’s theory advocated the rigid and step by step progression of needs. Whereas
Alderfer’s theory assumed that more than one need may be operative at the same time.

c) Maslow assumed that an individual will move to the next level of needs only when the
previous needs are fully satisfied. Whereas, Alderfer counters that when a higher level need is
frustrated, individual’s desire to increase lower level need takes place. In other words, we can
say that if an individual is not able satisfy the higher level of need, he will increase his desire
and efforts to increase his previous level need. For example, an individual who is not able to
fulfil his social needs will increase his desire for money. This way Alderfer gave a
Frustration-Regression dimension.

6.3.1 Critical analysis of Alderfer’s theory:

This theory was appreciated because Alderfer’s theory was consistent with the fact that every
individual is different from each other and therefore their needs are also unique. Variables
like age, education, family background, cultural context may influence one’s needs and how
much importance an individual give to one set of needs. Despite of this appreciation, this
theory was criticised on the grounds that this theory does not provide clear cut guidelines and
assumed that an individual may satisfy any of the three needs first. Therefore, this theory
does not guide about how we will determine that which of the three needs is more important
for a person.

6.4 McClelland’s Achievement-Motivation theory

David C. McClelland and his associates gave three sets of needs that motivate human
behaviour. McClelland assumed that every individual has all three needs, but the degree to
which these needs motivate an individual vary from individual to individual. The three needs
are discussed as follows:

a) Need for Achievement (nAch): This set of needs represent the desire to excel, achieve
given set of standards and become successful. Employees with a high need for achievement
derive maximum satisfaction from the success and goal achievement. McClelland provided
that need for achievement can be developed in the employees:

i. By providing them proper feedback about their performance. This will help them in
correcting their performance.

ii. By giving them opportunity to pursue challenging tasks and responsibilities. Avoid the
tasks which are extremely difficult or easy.

iii. By offering moderate degree of control to the employees, so that they may control their
imaginations. They must be trained about how to think realistically and positively regarding
goal accomplishment.

b) Need for Power (nPow): This need represent an individual’s desire to for power and
mould other’s behaviour as per one’s own wish. The employees who have high need for
power derive satisfaction from being in the positions of influence and control.

c) Need for affiliation (nAff): This is the desire to maintain friendly interpersonal
relationships. The people who have high need for affiliation gain satisfaction from
participating more in social and interpersonal activities.

6.4.1 Critical analysis of McClelland’s theory:

 McClelland’s theory was appreciated because it highlighted the importance of matching the
individual needs with job variables. Employees with high need for achievement seek the tasks
which are challenging, satisfying, stimulating and more complex. Employees with low need
for achievement prefer the tasks which offer stability, security and predictability.

7. Summary

Motivation is a psychological phenomenon which generates within an individual an urge to

act in a certain manner. If an individual has some unfulfilled need, he/she will always be
motivated to work more in order to satisfy the same. The behaviour of such individual will
always be directed towards achievement of his needs. Motivation is an important concept of
individual behaviour which is receiving considerable attention from academicians,
researchers and managers. More attention is paid to motivation because motivated employees
are more productive, quality conscious and adopt the any new technology easily and faster.
The concept of motivation can be better understood by theories of motivation. Among the
content theories most common theories are Malsow’s need hierarchy theory, Herzberg’s two
factor theory, Alderfer’s ERG theory and McClelland’s achievement theory. Maslow
suggested that there are five sets of needs which are arranged in the order of their importance
starting from most basic need to most complex needs. Herzberg categorised factors
influencing motivation of an individual into two categories: Maintenance or Hygiene factors
and Motivational factors. Alderfer condensed the five needs given by Maslow into three
needs: need for existence, relatedness and growth. McClelland gave three sets of needs
that motivate human behaviour: need for achievement, need for power and need for
affiliation. He highlighted the importance of matching the individual needs with job
variables.

Job satisfaction:

Job satisfaction is a term we hear often, but do you know its exact definition, and how its
absence could be bringing down your company’s productivity? Read our definitive guide on
job satisfaction, its drivers, and its benefits for 2020, and how your organization can benefit
from increased satisfaction in the workplace.

These are exciting times for workplaces, with business demands growing steadily and
employers working hard to keep their workforce satisfied. A 2019 survey by The Conference
Board (U.S.)Opens a new window found that job satisfaction is now at its highest in 20 years.
So, how does this impact your company? First, you need to know precisely what job
satisfaction is and how you can measure it accurately for 2020 and beyond.

What Is Job Satisfaction?

Job satisfaction, an unquantifiable metric, is defined as a positive emotional response you

experience when doing your job or when you are present at work. Leading organizations are
now trying to measure this feeling, with job satisfaction surveys becoming a staple at most
workplaces.

It’s important to remember that job satisfaction varies from employee to employee. In the
same workplace under the same conditions, the factors that help one employee feel good
about their job may not apply to another employee. For this reason, it is essential to have a
multidimensional approach to employee satisfaction, covering the following areas:
  The challenging nature of work, pushing employees to new heights
 A level of convenience (short commutes, access to the right digital tools, and flexible
hours)
 Regular appreciation by the immediate management and the organization as a whole
 Competitive pay, which employees maintain a good quality of life
 The promise of career progression in sync with employees’ personal growth targets

Components of Job Satisfaction

Job Satisfaction comprises of several key components that collectively influence how
employees feel about their jobs. Understanding these components can help organizations
better address the needs and expectations of their workforce:

1. Work: The nature of the work is crucial. Jobs that are interesting, engaging, and provide
variety can lead to higher satisfaction. Employees tend to feel more satisfied when their jobs
entail meaningful tasks, allowing them to use their skills effectively and offering a degree of
autonomy.

2. Compensation: Fair and adequate compensation including salary, bonuses, and benefits
plays a significant role in job satisfaction. Competitive and equitable pay that aligns with
industry standards and rewards employees for their contributions is essential.

3. Job Security: Stability and security at work are vital. Employees who feel that their job is
secure are more likely to be satisfied. Uncertainty about job continuity can significantly
impact employee morale.

4. Advancement Opportunities: Opportunities for professional growth and career

advancement also affect job satisfaction. Employees are more satisfied when they see a clear
path for progression and when they feel supported in their career development efforts.

5. Working Conditions: A safe, healthy, and comfortable working environment is important

for job satisfaction. This includes not only physical conditions but also work hours,
organizational culture, and the work-life balance offered by the employer.

6. Supervision: The quality of leadership and management within an organization is a

significant factor. Effective, fair, and supportive supervisors contribute to higher job
satisfaction. Employees value leaders who provide clear communication, feedback, and
recognition.

7. Co worker Relations: Good relationships with colleagues can enhance job satisfaction. A
supportive, friendly team environment where employees can form positive connections adds
to their job contentment.

8. Recognition and Feedback: Regular acknowledgment of employees' hard work and

achievements, along with constructive feedback, enhances job satisfaction. Recognition
programs and performance evaluations can motivate employees and make them feel valued.

9. Work-Life Balance: Managing the demands of work and personal life is crucial.
Employers who support work-life balance through flexible schedules, remote work options,
and sufficient time off tend to have more satisfied employees.
 UNIT-III
ORGANISATIONAL STRUCTURE AND COMMUNICATION:

What Is an Organizational Structure?

An organizational structure is a system that outlines how certain activities are directed to
achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.

The organizational structure also determines how information flows between levels within
the company. Decisions flow from the top down in a centralized structure. Decision-making
power is distributed among various levels of the organization in a decentralized structure.
Having an organizational structure in place allows companies to remain efficient and focused.

What Is an Organizational Structure?

An organizational structure is a system that outlines how certain activities are directed to
achieve the goals of an organization. These activities can include rules, roles, and
responsibilities.

The organizational structure also determines how information flows between levels within
the company. Decisions flow from the top down in a centralized structure. Decision-making
power is distributed among various levels of the organization in a decentralized structure.
Having an organizational structure in place allows companies to remain efficient and focused.

5 organizational factors to consider when determining team structure

No matter what industry you’re in or how big (or small) your business is, team structure in
the American workplace always seems to follow the same organizational hierarchy: decision-
makers at the top and doers at the bottom.

And that structure works for a lot of companies, which is why we’re so used to seeing it.
However, this one-size-fits-all approach to organizational design isn’t practical or even
feasible for everyone. Each business is unique and often demands a more adaptive and
flexible approach to organizational structure.

Read on to find out which organizational factors you should consider when deciding the best
organizational structure for your company.

Why traditional hierarchy doesn’t work for every organization

In a competitive environment, more companies choose to give their staff the autonomy and
support they need to implement fresh solutions, express greater accountability, and achieve
lasting results.

For example, managers (and even executives) at startups may find it necessary to provide
hands-on assistance with basic work responsibilities or other customer-facing duties. Or when
facing tight turnarounds, junior employees may need to rely on their own judgment, delegate
tasks, or exercise authority without direct approval from above.
Though job titles and management roles have their place, these instances show that they
aren’t always the be-all and end-all of a business. By having a clear understanding of
organizational factors of team structure, you’ll be able to create a more optimized
organizational structure, empower all employees to work effectively and add to the bottom
line.

What are the factors that influence organizational structure?

Many different factors affect organizational structure, so you likely won't be able to include
all of them in your organizational design strategy. Prioritize the ones that are most relevant to
your situation when planning or re examining your team structure.

Company size and development stage

Does your organizational structure make it possible for all your employees to do their jobs
and do them well? And is it optimal for its current scale and growth stage? Smaller
companies or new businesses, like start ups, often have to operate with an “all hands on deck”
mentality where everyone has to wear several different hats. In that case, it doesn’t make
sense to have different tiers of managers if there aren’t even enough employees to make up
different departments.

As companies grow larger, become more established, and add more specialized roles, adding
a hierarchical structure with managers and department heads becomes a help rather than a
hindrance––it would be overwhelming and inefficient for a general manager or CEO to have
hundreds or even thousands of employees report to him or her directly. Use our
organizational structure roles and responsibilities template to better understand each
member's duties.

Form of organizational structure

Organizational structures take on many forms. Examples include functional, multi-

divisional, flat, and matrix structures as well as circular, team-based, and network
structures.

What Is a Virtual Organization?

Office cultures have changed as technological advances make alternative work operations
possible. Office layouts have changed from cubicles to more open workspaces that encourage
collaboration, and many employers have shifted from set work schedules to more flexible
hours. The ongoing shift from physical to virtual organizations is a direct reflection of
technological evolution and rose in prominence during the COVID-19 pandemic when health
officials encouraged employers to let workers conduct their duties remotely.In this article, we
discuss what a virtual organization is, including its components, and list the advantages and
disadvantages of virtual organizations.

What is a virtual organization?

A virtual organization is an operation where all members of the company work in different
geographic locations while appearing as a single unit. It uses computers, software, phones
and other technology to work together and converse in real-time, despite any physical
distance. It's important for virtual organizations to establish detailed procedures that ensure
consistency in employee performance and provide employees with the ample resources and
support they need to conduct their responsibilities in a remote work environment.

Components of a virtual organization

Each virtual organization is unique, although they often include many of the same
components for optimal operations, like a remote workforce and company-specific
technology networks. Other components of a virtual organization may include:

 A flat organization structure with less middle management

 Virtual teams
 Loose organizational structure
 Boundaries and expectations
 Power flexibility
 Informal communication

Benefits of a virtual organization

Here are some benefits of virtual organizations:

Lower overhead costs

Virtual organizations often have lower overhead costs because they don't need to pay
monthly fees for renting office spaces. Companies also save money by not having to pay
supplemental fees involved with renting a space, like utilities and maintenance costs. Some
organizations also ask employees to use their own equipment, such as personal computers
and web cameras, reducing equipment costs. Related: How To Calculate Overhead Costs in 6
Steps

Improved employee satisfaction

Many virtual organizations have higher levels of employee satisfaction, presumably from the
increased freedom employees have to work in their own space. Some employees feel less
stressed, and the flexibility of working remotely often reduces absences. This helps improve
overall company morale and can encourage individuals to present quality work on behalf of
their employer.
Improved efficiency
Virtual organizations don't have the same distractions as traditional office settings, such as
the urge to chat with people surrounding you. With fewer distractions, efficiency may
improve, resulting in higher levels of productivity and better-quality work. Employees can
establish their own work environment, allowing them to determine what helps them best
achieve more work in less time. organizational communication' as the sending and
receiving of messages among interrelated individuals within a particular environment
or setting to achieve individual and common goals. Organizational communication is
highly contextual and culturally dependent.

The importance of organizational communication

Organizational communication is important because it can:

Improve productivity: Effective communication can help companies reach their goals and
increase productivity.

 Increase employee engagement: Engaged employees are more productive and have
higher morale.
 Improve customer satisfaction: Satisfied customers can increase sales and bring more
attention to a business.
 Build strong teams: Clear and focused communication can help build strong teams and
ensure a good feedback system.
 Ensure transparency: Effective communication can help ensure everyone is aware of
organizational strategies, news, and direction.
 Make it easier to manage employees: Effective communicators can better inform staff
of their responsibilities and expectations.
 Provide feedback on employee performance: Performance feedback can help
employees grow and develop their skills.
An organization's communication climate can influence whether communication is
encouraged or hindered among employees. In organizations with defensive climates,
employees may be less likely to communicate their needs.
Here are some forms of organizational communication:

 Formal communication

Official communication that uses the organization's established channels, such as

meetings, presentations, workshops, memos, and reports.

  Horizontal communication
Also called peer-to-peer communication, this is communication between individuals, groups,
or teams on the same level. It's important for cross-team collaboration and can lead to
business innovation.
  Upward communication
When employees communicate with higher-ranking officials, such as speaking with a
manager. Upward communication can be used to share ideas, exchange information, or solicit
feedback.
  Informal communication
The spontaneous and free-flowing spread of information in the workplace, often between
employees in small groups or one-on-one. It can also include quick interactions between
employees and customers or shareholders.
  Nonverbal communication
Uses body language, facial expressions, gestures, and tone of voice to convey a message
without using words. It can be an important way to convey emotions and feelings that might
not be expressed verbally.
  Downward communication
When higher-level officials communicate with those below them in terms of position or title.
This type of communication often uses memos, letters, notices, newsletters, emails, and
company manuals.

Other considerations in organizational communication include the medium used (written or

oral), and whether the message is internal or external.
What are the Functions of Organizational Communication

Major Functions of Organizational Communication

 Control
 Motivation
 Emotional Expression
 Information

Control

Communication acts to control member behavior in several ways. Organizations have power
ranking and formal recommendations that employees are required to follow.

When employees, for example, are necessary to first communicate any job related objection
to their instance head, to follow their job explanation, or to act in accordance with company
strategies, communication is executing a control function. But informal communication also
controls behavior. When work groups make fun or provoke a member who build too much
(and makes the rest of the group look bad), they are casually communicating with, and
supervising, the member’s behavior.

Motivation

A motivated person plays a useful and active character in an organization. Communication

encourages motivation by simplifying to employees what they must do, how well they are
doing it, and how they can enhance if performance is inadequate. Communication motivates
and induces individuals to meet mutually united goals. Sharing success stories of the
particular person who has controlled the arguing and have been able to fulfil their goals can
do this. This function of communication, in spite of being appropriate in all walks of life, is
more prominent in business and industry where communication is being progressively used
as a tool for motivation.

The establishment of individual goals, opinion on development toward the goals, and benefit
for desired behavior all refreshing motivation and need communication.

Emotional Expression

Emotional expressions are necessary to enhance messages, to convey authenticity and to

develop trust. Humans need to show their feelings in two ways. It can be verbal and
nonverbal, emotions are expressed like love, anger, joy, fear, hope or any other emotions.

Emotional expression by way of language comes in a form of exclamation point - for

example − Yes!, Oh no!

Information

Organizations need to keep their employees informed of their goals, industry information,
preferred processes, new developments and technology, etc., in order that they can do their
jobs correctly and efficiently. This information might come to employees in formal ways, via
meetings with managers, news and messaging via a centralized system (like an intranet site),
or it could be informal, as when a team member on the assembly line suggests a quicker way
to approach a task and gets his co-workers to adopt the method.

Organizational climate

Organizational climate is the shared perceptions of employees about the work environment
and how it affects their well-being. It's a real occurrence that can be positive or negative and
can significantly impact the success of the organization.
Organizational climate is influenced by many factors, including:

 Leadership style

Leaders play a significant role in shaping organizational climate.

 Communication patterns
Open and transparent communication is crucial for a positive organizational climate.
 Work-life balance
Organizations that prioritize work-life balance tend to have more satisfied and motivated
employees.
 Diversity, equity, and inclusion
Promoting an inclusive environment can help all employees feel like they belong.
 Organizational context
This includes the mission, vision, goals, objections, and functions of a company.
An appropriate organizational climate can be effective in: Motivating employees, Improving
morale, Increasing creativity and innovation, and Increasing productivity.
Organizational culture is the set of values, beliefs, attitudes, and behaviors that define an
organization and influence how people work and think:

 What it is

Organizational culture is the core of a company and is made up of the shared values,
norms, and practices that define the work environment. It's also known as business
culture, corporate culture, or company culture.

 How it's shaped

Organizational culture is shaped by the people, programs, and communications within an
organization. It's usually set by the company's leaders, but it can also emerge from what
people say, do, think, and believe.
  How it's reflected
Organizational culture is reflected in company policies, workspace design, employee perks,
and other aspects of the organization.
  How it impacts the organization
A strong organizational culture can help increase net profit, reduce employee burnout, and
increase employee tenure.
  How to identify it
You can identify an organization's culture by asking questions about the company's core
values, work-life balance, and growth opportunities.

What is organizational culture? Organizational culture is the set of values, beliefs,

attitudes, systems, and rules that outline and influence employee behavior within an
organization. The culture reflects how employees, customers, vendors, and stakeholders
experience the organization and its brand.

Harnessing the Power Of Email Marketing

Let’s say you own an ecommerce company, but you’re struggling to convert leads into
customers. To solve this, look no further than email marketing. It’s an effective way to
generate a high return on investment (ROI) for your business by targeting customers in a
personalized way, even if you already are converting leads into paying customers. After all,
there’s always room for more sales and profits.

Looking forward to leverage email as a marketing tool to drive more traffic, sales, and
conversions? Then check out the Advanced Email Marketing Course now.

Email is a cost-effective marketing tactic that can save time, enhance visibility and brand
awareness, and impact customers at all stages of the sales funnel:

 Awareness

If a customer has a specific problem, you can come to the rescue with an informative
email that explains how your product can offer a solution

 Consideration

If a customer is researching and comparing similar products, your email can showcase
what makes yours stand out

 Purchase

If a customer needs extra incentives to make a purchase, you can provide an offer or
discount

 Retention

If a customer has already made a purchase, you can send an exclusive offer to ensure
they remain brand-loyal

 Advocacy

If a customer is willing to share your product or the noteworthy causes you support,
they can become a brand advocate

11 corporate communications tools to boost team performance

Below is our breakdown of the best comms tools, all proven to bring businesses together and
help workers communicate better.
Of course, no company necessarily needs everything on this list. That said, the internal and
external tools here can highlight areas where your business’ comms might need a tune-up.

Internal communications tools

Building an internal communications strategy is a must-do, especially for remote and

distributed teams. Let’s start by looking at tools to help your team internally.

1. Asana

Especially given the rise of remote teams, project management tools are a must-have for
companies big and small.

Tools like Asana provide businesses with a unified place to plan and track the progress of any
given project. From tasks and to-do lists to full-blown project timelines and department
calendars, Asana makes it all easy to track with:

 Multiple project views (including Kanban boards, lists and calendars) that provide a
constant pulse on the progress of a task
 The ability to assign roles and permissions for collaborators (including entry-level
employees, contractors and C-level) to keep workflows structured
 Automated updates and notifications to keep a constant pulse on task progress

2. Slack

It’s hard to find a team that isn’t using Slack (or a similar team chat tool) to stay connected

With Slack, you can organize your team’s communications into company-wide, department-
specific or role-specific channels. This allows for immediate, timely communication that
doesn’t totally interrupt workers or cause needless meetings. Arguably the biggest selling
point of Slack is its ease of use and endless integrations (including many of the tools on this
list).

3. Teamwork

A project management solution that’s almost a hybrid of the two tools above, Teamwork sets
itself apart with its ability to track granular project data in addition to updates and messaging.
For example, you can track individual contributions to any given task as well as team-wide
time spent on tasks.

Teamwork answers “what’s been done, what needs to be done and what’s next” in one place.
The platform’s project tracking features represent a massive time-saver and create fewer
back-and-forths among collaborators.

4. Confluence

From internal docs and policies to reference pages and wikis, Confluence represents a sort of
“home base” for teams to refer to.
The platform serves as a project management tool in its own right but also provides teams
with a digital whiteboard to brainstorm and make notes as needed. Confluence’s features are
yet another example of how you can consolidate corporate communications rather than jump
between multiple apps, inboxes or internal drives.

5. Employee Advocacy by Sprout

Employee advocacy is all the rage right now. Sprout’s Employee Advocacy platform
empowers your teammates internally to earn maximum on external marketing messages.

For example, Employee Advocacy makes it easy to boost your brand’s biggest
announcements and latest blog posts. Rather than craft individual updates or captions, the
platform provides templates, inspiration and creative options to boost your social posts
messages in the most engaging way possible.

6. Dialpad

Dialpad represents an all-in-one video conferencing, chat and phone solution that’s ideal for
distributed teams.

Perhaps the most “corporate” of our corporate communications due to its enterprise clientele,
Dialpad boasts a number of features to improve team comms. This includes AI tools such as
call sentiment analysis, automated notes to address sales objections and automatic call
transcriptions.

External communications tools

For the second half of our breakdown, we’ll look at external tools you might consider as part
of your marketing tech stack.

7. Sprout Social

No surprises here! Sprout Social is a powerful, all-in-one tool for streamlining internal and
external comms related to social media.

How so? For starters, we allow teams to consolidate all of their social messages and
notifications in one place. Not only does this mean less jumping between platforms, but also
empowers teams to respond to more messages faster via collaborative features. The ability to
combine your inboxes is a massive time-saver and likewise gives you a more comprehensive
view of your customer comms.

Beyond that, Sprout also serves as the home base for all of your external social content.

Updates and announcements. Videos and images. Stories, Reels and everything in-between.

With Sprout, you can schedule and optimize your content across multiple social networks at
once. Having all of your social media assets and updates in a single platform allows you to
maximize your reach and get your message across to the appropriate audiences faster.

Below are a few more ways you might use Sprout as a corporate communications tool:
  Developing and rolling out your social media crisis plan
 Listening to crucial social conversations and shout-outs to uncover opportunities to
intervene or answer questions for customers
 Encouraging cross-team collaboration and unified comms among your entire
marketing department (including social, design and content marketing)

8. SendinBlue

While trends in marketing come and go, email remains a staple of external comms.

Newsletters. Welcome messages. Winback campaigns. The list goes on.

Platforms like SendinBlue are scalable and make it a cinch to set up automated workflows for
any campaign you can think of. The ability to assess engagement metrics and fine-tune your
campaigns over time means that you can maximize the eyes on your marketing messages.

9. HubSpot

HubSpot’s suite of corporate communications tools includes a robust CRM, email marketing
platform and CMS rolled into one.

Having all of the above in one platform gives marketers the opportunity to have a more
complete understanding of their customers and their needs.

For example, which content do our leads engage with the most? What’s our most common
sales objection? Which of our campaigns results in the most direct revenue?

With HubSpot, you have a holistic view of your marketing channels and likewise what makes
your customers tick.

10. Muck Rack

PR and relationships with bloggers, journalists and media outlets are key for businesses
looking to earn some much-needed exposure.

Tools like Muck Rack make the process of finding relevant outreach targets and pitching
them faster. Providing instant access to thousands of journalists, the platform allows you to
track the progress of your pitching campaigns and automate the process of conducting
follow-ups as needed.

  
 Email

 Communications tools are make-or-break for modern companies

Because every missed deadline, bottleneck and minor misunderstanding trickles down to
impact your team’s productivity.

But the bigger your company, the faster these issues tend to snowball out of control.
That’s why dedicated business communications tools have become a staple of in-person,
remote and hybrid teams alike.

The problem? There’s no shortage of software out there. Couple that with the fact that
onboarding your team to new tools is no small feat. This is especially true for enterprises.

If you don’t know where to start, we’ve got you covered in our comprehensive guide to
corporate communications.

What are corporate communications, anyway?

Corporate communications refer to how stakeholders in business interact with

colleagues (internal) and customers (external). From updates and expectations to
messaging and results, businesses prioritize communications for the sake of
organization, productivity and accountability.

And so corporate communications tools represent the software and apps that stakeholders use
to manage the interactions above.

These tools can be put into two buckets based on their respective audiences — internal and
external.

Internal vs. external corporate communications tools

Internal communications cover interactions that happen among stakeholders within an

organization. This includes employees, folks at the C-level and other internal collaborators
(think: freelancers or contractors).

To manage these relationships and keep stakeholders up-to-date, companies might use:

 Project management tools

 Team chat tools
 Video conferencing tools
 Company Intranet or wiki tools

On the flip side, external communications tools are used to deliver key messages to
customers, subscribers or partners. These tools might include:

 Marketing tools (think: social, CRM, email)

 Customer communication tools (think: live chat or help desk software)
 PR and media tools

There is no one-size-fits-all approach to adopting comms tools. That said, a combination of

internal and external tools is key to keeping everyone involved with your business in the loop.

Why business communications tools matter so much

Investing in dedicated digital communications should be a matter of “when” and not “if” for
companies of all shapes and sizes.
Enterprise. SMBs. Solo. You name it.

Consider the well-documented benefits of streamlined communication below:

 Encourage meaningful collaboration among your team. When teams’ tasks and
goals are aligned, they create better business outcomes. There’s a reason why
effective communication and higher rates of employee engagement go hand in hand.
 Empower people to be more productive. Recent research from Teamwork notes that
people are up to 25% more productive when they have quick access to deliverables,
requirements and other critical project information. With the right business
communications tools, you can consolidate all of the above in one place.
 Create a more connected company culture. Food for thought: only 7% of workers
feel that communication is “accurate, open and timely” at work. This signals the need
for businesses to really put their corporate communications under the microscope for
the sake of not only productivity but their workers’ well-being.

Also, keep in mind that the efficiency of internal communications has a direct impact on how
you communicate with customers.

For example, consider how marketing messaging and creatives for campaigns require
multiple steps, stakeholders and approvals.

When a department is on the same page and able to communicate effectively, its messages to
external stakeholders are more likely to resonate.

11 corporate communications tools to try

Below is our breakdown of the best comms tools, all proven to bring businesses together and
help workers communicate better.

Of course, no company necessarily needs everything on this list. That said, the internal and
external tools here can highlight areas where your business’ comms might need a tune-up.

Internal communications tools

Building an internal communications strategy is a must-do, especially for remote and

distributed teams. Let’s start by looking at tools to help your team internally.

1. Asana

Especially given the rise of remote teams, project management tools are a must-have for
companies big and small.

Tools like Asana provide businesses with a unified place to plan and track the progress of any
given project. From tasks and to-do lists to full-blown project timelines and department
calendars, Asana makes it all easy to track with:

 Multiple project views (including Kanban boards, lists and calendars) that provide a
constant pulse on the progress of a task
  The ability to assign roles and permissions for collaborators (including entry-level
employees, contractors and C-level) to keep workflows structured
 Automated updates and notifications to keep a constant pulse on task progress

2. Slack

It’s hard to find a team that isn’t using Slack (or a similar team chat tool) to stay connected.
With Slack, you can organize your team’s communications into company-wide, department-
specific or role-specific channels. This allows for immediate, timely communication that
doesn’t totally interrupt workers or cause needless meetings. Arguably the biggest selling
point of Slack is its ease of use and endless integrations (including many of the tools on this
list).

3. Teamwork

A project management solution that’s almost a hybrid of the two tools above, Teamwork sets
itself apart with its ability to track granular project data in addition to updates and messaging.
For example, you can track individual contributions to any given task as well as team-wide
time spent on tasks.

Teamwork answers “what’s been done, what needs to be done and what’s next” in one place.
The platform’s project tracking features represent a massive time-saver and create fewer
back-and-forths among collaborators.
4. Confluence

From internal docs and policies to reference pages and wikis, Confluence represents a sort of
“home base” for teams to refer to.

The platform serves as a project management tool in its own right but also provides teams
with a digital whiteboard to brainstorm and make notes as needed. Confluence’s features are
yet another example of how you can consolidate corporate communications rather than jump
between multiple apps, inboxes or internal drives.
5. Employee Advocacy by Sprout

Employee advocacy is all the rage right now. Sprout’s Employee Advocacy platform
empowers your teammates internally to earn maximum on external marketing messages.

For example, Employee Advocacy makes it easy to boost your brand’s biggest
announcements and latest blog posts. Rather than craft individual updates or captions, the
platform provides templates, inspiration and creative options to boost your social posts
messages in the most engaging way possible.
6. Dialpad

Dialpad represents an all-in-one video conferencing, chat and phone solution that’s ideal for
distributed teams.

Perhaps the most “corporate” of our corporate communications due to its enterprise clientele,
Dialpad boasts a number of features to improve team comms. This includes AI tools such as
call sentiment analysis, automated notes to address sales objections and automatic call
transcriptions.

External communications tools

For the second half of our breakdown, we’ll look at external tools you might consider as part
of your marketing tech stack.
7. Sprout Social

No surprises here! Sprout Social is a powerful, all-in-one tool for streamlining internal and
external comms related to social media.

How so? For starters, we allow teams to consolidate all of their social messages and
notifications in one place. Not only does this mean less jumping between platforms, but also
empowers teams to respond to more messages faster via collaborative features. The ability to
combine your inboxes is a massive time-saver and likewise gives you a more comprehensive
view of your customer comms.

Beyond that, Sprout also serves as the home base for all of your external social content.

Updates and announcements. Videos and images. Stories, Reels and everything in-between.
With Sprout, you can schedule and optimize your content across multiple social networks at
once. Having all of your social media assets and updates in a single platform allows you to
maximize your reach and get your message across to the appropriate audiences faster.

And we don’t stop there!

Below are a few more ways you might use Sprout as a corporate communications tool:

 Developing and rolling out your social media crisis plan

 Listening to crucial social conversations and shout-outs to uncover opportunities to
intervene or answer questions for customers
 Encouraging cross-team collaboration and unified comms among your entire
marketing department (including social, design and content marketing)
8. SendinBlue

While trends in marketing come and go, email remains a staple of external comms.

Newsletters. Welcome messages. Winback campaigns. The list goes on.

Platforms like SendinBlue are scalable and make it a cinch to set up automated workflows for
any campaign you can think of. The ability to assess engagement metrics and fine-tune your
campaigns over time means that you can maximize the eyes on your marketing messages.

9. HubSpot

HubSpot’s suite of corporate communications tools includes a robust CRM, email marketing
platform and CMS rolled into one.

Having all of the above in one platform gives marketers the opportunity to have a more
complete understanding of their customers and their needs.

For example, which content do our leads engage with the most? What’s our most common
sales objection? Which of our campaigns results in the most direct revenue?

With HubSpot, you have a holistic view of your marketing channels and likewise what makes
your customers tick.
10. Muck Rack

PR and relationships with bloggers, journalists and media outlets are key for businesses
looking to earn some much-needed exposure.

Tools like Muck Rack make the process of finding relevant outreach targets and pitching
them faster. Providing instant access to thousands of journalists, the platform allows you to
track the progress of your pitching campaigns and automate the process of conducting
follow-ups as needed.

11. Shorthand

Shorthand is a self-proclaimed “scrollytelling” tool that allows users to create digital

experiences (such as websites and landing pages) to share with customers. The tool boasts a
variety of team collaboration features that makes it easy for writers, designers and other
marketers to come together to create the most compelling stories possible.
 UNIT-IV
1. Transactional Analysis (TA): Meaning and Key Concepts

Transactional Analysis (TA) is a psychological theory developed by Eric Berne that

focuses on the ways individuals interact and communicate. It is a framework for
understanding human behavior and resolving conflicts, both in personal and professional
environments.

Key Concepts:

1. Ego States:
o Parent Ego State: Represents the attitudes, behaviors, and rules learned from
authority figures (parents, teachers, or society). It can be:
 Nurturing Parent: Supportive, caring, protective.
 Critical Parent: Controlling, judgmental, directive.
o Adult Ego State: Rational, logical, objective. Processes information and
makes decisions based on facts, not emotions.
o Child Ego State: Reflects emotions and behaviors from childhood, including
both Free Child (spontaneous, creative, playful) and Adapted Child
(compliant, rebellious).
2. Transactions:
o Complementary Transactions: When communication flows smoothly, with
both parties in compatible ego states (e.g., Adult-to-Adult, Parent-to-Child).
o Crossed Transactions: When individuals are in incompatible ego states,
leading to misunderstandings or conflict (e.g., Parent-to-Adult, Adult-to-
Child).
o Ulterior Transactions: Involve hidden or double-layered messages where the
spoken words are not the entire message (e.g., "I’m fine" but body language
suggests otherwise).
3. Strokes:
o Strokes are units of recognition that can be either positive (affirming,
supportive) or negative (critical, dismissive). Positive strokes enhance self-
esteem, while negative strokes can cause resentment or conflict.
o Conditional Strokes: Given for specific behaviors (e.g., "You did a good
job").
o Unconditional Strokes: Given regardless of behavior (e.g., "I love you").
4. Games:
o Psychological Games: Repetitive, unconscious patterns of behavior that
obscure the real issues and can escalate conflict. Examples include:
 "Yes, But..." (someone always rejects solutions).
 "Ain’t It Awful" (complaining about how bad things are).
 "I’m Only Trying to Help" (giving unsolicited advice and then
criticizing the recipient).
5. Scripts:
o Life Scripts: The unconscious life plans formed in childhood, influenced by
parental messages, societal norms, and early experiences.
o Positive Scripts: Encouraging personal development and success.
 o Negative Scripts: Limiting beliefs, such as "I’m not good enough" or "I must
always please others."
6. Berne’s Theory of Communication: The theory proposes that every communication
is a "transaction" between the different ego states of participants. Recognizing the ego
states allows individuals to change their behavior for better communication.
7. TA in the Workplace: Understanding which ego states individuals use in a
professional setting can significantly improve interpersonal communication, reduce
misunderstandings, and resolve conflicts.
8. Transactional Analysis and Personality Development: TA is widely used in
therapy, coaching, and organizational development to help individuals recognize
unhealthy patterns of communication and shift to healthier interactions.
9. Self-Awareness: The first step in applying TA is self-awareness—recognizing which
ego state you are communicating from and whether it's appropriate for the situation.
10. Developing Adult Ego State: A key goal in TA is to increase the frequency of
Adult-to-Adult communication, which is logical, assertive, and grounded in facts,
reducing the influence of emotional or critical patterns from Parent and Child states.

2. Benefits of Transactional Analysis (TA) in Organizations

1. Improved Communication: Encourages clear, straightforward communication by

fostering Adult-to-Adult exchanges.
2. Conflict Prevention: By recognizing and correcting crossed transactions early,
conflicts can be prevented before they escalate.
3. Emotional Intelligence: Employees develop self-awareness and emotional regulation
by identifying their ego states.
4. Enhanced Problem-Solving: Adult-to-Adult communication promotes rational
decision-making and conflict resolution.
5. Leadership Development: Managers who understand TA can better motivate
employees and manage conflicts effectively by recognizing when to act from a Parent,
Adult, or Child perspective.
6. Team Collaboration: Clearer, more constructive communication leads to improved
teamwork and collaboration.
7. Motivational Benefits: Positive strokes (recognition and praise) motivate employees
and improve performance.
8. Stress Reduction: Employees are less likely to engage in psychological games or get
trapped in unhealthy Parent-Child dynamics, leading to less stress.
9. Cultural Transformation: Encourages an open, respectful, and psychologically safe
work environment.
10. Personal Growth: Employees who understand TA can improve their interpersonal
relationships, both at work and outside, fostering personal growth and self-
development.

3. Levels of Self-Awareness in Transactional Analysis

Self-awareness in TA allows individuals to recognize their behavior patterns and improve

their interactions with others. The more aware an individual is of their own and others' ego
states, the more effective their communication and conflict resolution becomes.
 1. Unconscious Level: People are unaware of their own behavior or the ego states they
are operating from. This can lead to unintentional conflicts.
2. Conscious Level: Individuals begin to recognize their own ego state and that of
others. They can consciously choose which ego state to operate from (e.g., shifting
from Parent to Adult).
3. Reflective Level: Individuals actively analyze their ego states and communication
patterns, understanding how their behavior affects others and seeking to improve their
communication.
4. Integrated Level: Individuals consistently operate from their Adult ego state,
integrating insights from their Parent and Child to create balanced, adaptive
behavior.
5. Situational Awareness: Recognizing when it's appropriate to adopt a Parent or Child
ego state based on the context (e.g., a leader may use a nurturing Parent ego state in a
crisis, but shift to Adult when making decisions).
6. Emotional Awareness: Recognizing when emotions are clouding one's judgment and
consciously choosing to operate from the rational Adult ego state.
7. Feedback and Reflection: Actively seeking feedback from others and reflecting on
one’s communication style to adjust behavior accordingly.
8. Active Listening: The ability to listen to others’ ego states and respond appropriately
based on the context of the conversation.
9. Conflict Awareness: Recognizing early signs of conflict and identifying which ego
states are involved (Parent-Child dynamics, crossed transactions).
10. Empathy and Adaptability: Understanding and adapting to others' emotional states
(e.g., comforting a team member acting from a Child state or providing a structured
plan for an Adult-to-Adult conversation).

4. Organizational Conflicts: Process and Levels

Organizational conflicts arise when there are disagreements, misunderstandings, or tensions

between individuals or groups in a workplace. The conflict process and levels help to
understand how conflicts evolve and how they can be managed effectively.

Conflict Process:

1. Latent Conflict: The potential for conflict exists due to differences in values, goals,
resources, or working styles. Conflict is not yet recognized.
2. Perceived Conflict: Individuals begin to perceive a conflict due to communication
breakdowns, competing goals, or resource constraints.
3. Felt Conflict: Emotions are involved, and individuals experience stress, frustration,
or anxiety due to the conflict.
4. Manifest Conflict: The conflict becomes visible through open disputes, arguments, or
uncooperative behavior.
5. Aftermath: The conflict is resolved or exacerbated, impacting morale, productivity,
and relationships. Effective resolution leads to learning, while poor resolution may
result in long-term damage.

Levels of Organizational Conflict:

 1. Interpersonal Conflict: Occurs between two or more individuals within an
organization, typically due to personality differences, communication issues, or
incompatible working styles.
2. Intrapersonal Conflict: Internal conflict within an individual, often related to role
confusion, job expectations, or conflicting values.
3. Intergroup Conflict: Occurs between different teams, departments, or groups within
the organization, typically due to competition for resources, differing goals, or
organizational structure.
4. Organizational Conflict: Broader conflicts that occur at the organizational level,
often stemming from changes in leadership, organizational culture, or external market
forces.
5. Role Conflict: Conflict arising from unclear or competing job roles or responsibilities
within the organization.
6. Task Conflict: Disagreements about how tasks should be carried out or about the
content of the tasks.
7. Value Conflict: When individuals or groups have differing values or ethical beliefs,
leading to tension or friction.
8. Communication Conflict: Misunderstandings or lack of clear communication
between individuals or teams can escalate into conflict.
9. Cultural Conflict: Differences in cultural backgrounds, working styles, and values
can lead to conflict in diverse workplaces.
10. Structural Conflict: Arises from the design of the organization, including hierarchy,
decision-making processes, and resource allocation.

5. Conflict Management

Conflict management involves strategies to handle disagreements in a constructive way that

reduces negative outcomes and fosters positive relationships.

1. Collaboration: Both parties work together to find a mutually beneficial solution,

aiming for a win-win outcome.
2. Compromise: Both parties make concessions to reach a middle ground,
acknowledging that neither side gets everything they want.
3. Accommodation: One party gives in to the other party’s demands to preserve the
relationship or avoid further conflict.
4. Avoidance: Avoiding the conflict altogether, often by ignoring the issue or pretending
it doesn’t exist.
5. Competition: One party seeks to win at the expense of the other, often used when the
issue is critical, or time-sensitive.
6. Mediation: Involves a neutral third party to facilitate discussion and help the
conflicting parties reach a resolution.
7. Negotiation: Structured discussions where both parties express their interests and
reach a mutually agreeable solution.
8. Problem Solving: Identifying the underlying issues causing the conflict and working
to resolve them systematically.
9. Active Listening: A critical skill for conflict management, as it helps ensure all
parties feel heard and understood.
10. Reframing: Changing the way a problem or issue is perceived, helping to reduce
emotional intensity and open up alternative solutions.
6. Negotiation: Types and Process

Negotiation is the process by which two or more parties with differing needs and goals
discuss an issue to find a mutually acceptable solution.

Types of Negotiation:

1. Distributive Negotiation (Win-Lose): A competitive negotiation where one party's

gain is the other party's loss. Common in situations where resources are fixed and
cannot be expanded.
2. Integrative Negotiation (Win-Win): Focuses on collaboration and finding solutions
that satisfy the interests of both parties, often used when the relationship between the
parties is important.
3. Positional Negotiation: Each party starts with a fixed position and negotiates to reach
a middle ground.
4. Interest-Based Negotiation: Focuses on the interests behind the positions, aiming for
a solution that satisfies the underlying needs of both parties.

Negotiation Process:

1. Preparation: Gathering information, identifying goals, and understanding the other

party’s needs and interests.
2. Opening: Establishing a rapport, clarifying positions, and setting the tone for the
negotiation.
3. Bargaining: The core negotiation phase where offers, counteroffers, and concessions
are made to reach an agreement.
4. Exploration of Interests: Identifying the underlying interests and needs of both
parties to find common ground.
5. Agreement: Reaching a formal agreement that outlines the terms of the deal.
6. Implementation: Ensuring that both parties follow through on their commitments and
execute the negotiated terms.
7. Post-Negotiation Review: Evaluating the negotiation process and outcomes for
lessons learned and future improvements.

7. Introduction to Workplace Spirituality

Workplace spirituality emphasizes creating a work environment that supports employees'

personal growth, purpose, and well-being, blending spiritual values with professional life.

1. Meaningful Work: Employees find purpose in their work, aligning it with personal
values, enhancing motivation and engagement.
2. Respect for All Individuals: Creating a culture of dignity and respect, recognizing
the inherent worth of every employee.
3. Sense of Community: Encouraging a feeling of connectedness, cooperation, and
support among employees.
 4. Work-Life Balance: Promoting policies and practices that allow employees to
balance professional and personal commitments, reducing burnout and increasing job
satisfaction.
5. Mindfulness and Reflection: Encouraging employees to practice mindfulness, which
can help reduce stress and improve focus.
6. Ethical Behavior: Encouraging values such as integrity, honesty, and fairness in
decision-making.
7. Holistic Development: Supporting employees' personal growth, including spiritual,
emotional, and intellectual development.
8. Employee Empowerment: Providing employees with autonomy, responsibility, and
opportunities to contribute meaningfully to the organization’s mission.
9. Workplace Well-being: Prioritizing physical, mental, and emotional well-being
through supportive policies, benefits, and programs.
10. Social Responsibility: Encouraging organizations to contribute to social,
environmental, and ethical causes, aligning with employees' values and creating a
sense of shared purpose.

UNIT-V

CONTEMPORARY PRACTICES IN ORGANIZATIONAL CHANGE AND

DEVELOPMENT

1. Organizational Change: Meaning and Importance

1. Definition: Organizational change refers to modifications in an organization’s

structure, strategies, policies, processes, or culture to adapt to internal or external
factors.
2. Need for Change: Change is necessary for organizational survival, growth, and
staying competitive in a constantly evolving environment.
3. Types of Change: Organizational change can be strategic, structural, process-
oriented, or cultural.
4. External Drivers: Market competition, technological advances, legal requirements,
economic shifts, and globalization.
5. Internal Drivers: Performance gaps, leadership transitions, internal inefficiencies, or
employee dissatisfaction.
6. Resistance to Change: Employees may resist change due to fear of the unknown, job
insecurity, or dissatisfaction with the proposed changes.
7. Continuous Improvement: Change is an ongoing process, requiring organizations to
stay adaptable and forward-looking.
8. Complexity: Organizational change can be complex and involves multiple factors
(people, processes, technologies, etc.) that need to be aligned.
9. Impact on Employees: Change affects employee motivation, performance, and
morale, so managing this transition effectively is crucial.
10. Global Perspective: In today’s global business environment, organizations must
adapt to international trends, technological disruptions, and cross-cultural challenges.
2. Change Management: Definition and Principles

1. Definition: Change management is the process of planning, implementing, and

monitoring organizational change to ensure a smooth transition and minimize
disruption.
2. Leadership Commitment: Successful change initiatives require strong, visible
leadership to drive the change and lead by example.
3. Clear Communication: Communicating the need for change, its goals, and its
benefits ensures that employees understand and support the transformation.
4. Stakeholder Involvement: Involving key stakeholders from the beginning of the
change process helps in building support and reducing resistance.
5. Creating a Vision: A clear vision for the change helps guide decision-making, inspire
employees, and align resources.
6. Managing Resistance: Resistance to change is natural; it can be managed through
open communication, training, and addressing concerns.
7. Employee Training: Equipping employees with the skills and knowledge required
for the change is essential for successful implementation.
8. Incremental Approach: Change should often be implemented in manageable steps,
allowing for adjustments and minimizing disruption.
9. Feedback and Adjustment: Continuous monitoring and feedback allow the change
process to be adjusted as needed for better results.
10. Sustainability: Change must be institutionalized through new processes, policies, and
a supportive culture to ensure it sticks over the long term.

3. Organizational Development (OD): Meaning and Purpose

1. Definition: Organizational Development (OD) is a systematic effort to improve an

organization’s overall health, performance, and ability to adapt.
2. Goal-Oriented: The goal of OD is to improve organizational effectiveness and
employee well-being by focusing on both human and structural factors.
3. Long-Term Focus: OD is a long-term process that focuses on continuous
improvement, employee development, and organizational learning.
4. Human-Centric: OD emphasizes people, focusing on improving communication,
collaboration, leadership, and motivation.
5. Interventions: OD involves interventions such as team-building, leadership
development, culture change, and conflict resolution.
6. Collaboration: OD encourages collaboration between employees at all levels,
fostering a culture of teamwork and mutual respect.
7. Behavioral Science: OD is rooted in behavioral science theories, which help
understand how individuals and groups interact in organizations.
8. Action Research: OD often uses action research, a process of identifying issues,
diagnosing problems, and implementing solutions.
9. Flexibility and Adaptability: OD requires organizations to remain flexible and
responsive to changing external and internal conditions.
10. Sustainable Change: The purpose of OD is to create lasting improvements that
sustain organizational growth and adaptability over time.
4. Models of Organizational Change and Development

a. Lewin’s Change Model

1. Unfreeze: This stage involves preparing the organization for change by challenging
existing beliefs, processes, and behaviors.
2. Disrupting the Status Quo: To “unfreeze,” organizations need to show the need for
change, create urgency, and motivate employees to embrace new approaches.
3. Change: In this stage, new methods, processes, and structures are implemented, and
people begin to experiment with and adopt new ways of working.
4. Refreeze: Once the change has been implemented, it needs to be solidified through
reinforcement, ensuring it becomes part of the organization’s culture.
5. Overcoming Resistance: Lewin’s model helps identify areas of resistance and
provide strategies to overcome them during the transition.
6. Stability after Change: The "refreeze" phase stabilizes the changes and integrates
them into day-to-day operations.
7. Continuous Change: The model suggests that organizations should constantly
“unfreeze” to make space for future improvements.
8. Employee Participation: Active involvement of employees at all stages is essential
for successful change.
9. Simple Yet Effective: Lewin’s model is simple but widely used because it provides a
clear roadmap for managing change.
10. Evolutionary Change: The model supports gradual and planned changes rather than
abrupt transformations.

b. Kotter’s 8-Step Change Model

1. Create a Sense of Urgency: Highlight the importance of change and make employees
feel that change is necessary for survival.
2. Build a Guiding Coalition: Form a team of influential leaders and change agents to
champion the change.
3. Develop a Vision and Strategy: Clearly articulate the vision for change and how it
will be achieved.
4. Communicate the Vision: Ensure the vision is communicated consistently across all
levels of the organization.
5. Empower Employees for Action: Remove barriers to change and provide employees
with the autonomy and resources to act.
6. Generate Short-Term Wins: Identify and celebrate quick wins to build momentum
and demonstrate the success of the change.
7. Consolidate Gains: Use early successes to drive further change and prevent
regression to old ways.
8. Anchor the Change in the Culture: Make the change a permanent part of the
organization's culture by aligning systems and values.
9. Clear and Structured Process: Kotter’s model provides a structured approach to
managing change in a way that reduces resistance.
10. Long-Term Commitment: The model emphasizes the need for sustained
commitment to embed the change into everyday practices.

c. McKinsey 7S Framework
 1. Strategy: The plan an organization follows to compete in the market and achieve its
objectives.
2. Structure: The organizational design, including hierarchy, departmentalization, and
reporting lines.
3. Systems: The formal and informal processes that govern day-to-day activities within
the organization.
4. Shared Values: Core values and culture that guide behavior, decision-making, and
organizational practices.
5. Skills: The competencies and capabilities required to execute the strategy and meet
organizational goals.
6. Style: Leadership style and organizational culture, which impact how decisions are
made and employees interact.
7. Staff: The employees in the organization, their roles, skills, and development
opportunities.
8. Interdependence: All seven elements of the framework are interdependent, and a
change in one area will affect the others.
9. Alignment: Organizational change efforts need to align all seven elements for
success.
10. Holistic Approach: The 7S Framework emphasizes a comprehensive approach to
organizational change that considers both hard (strategy, structure, systems) and soft
(skills, style, staff, shared values) elements.

5. Interventions in Organizational Development

1. Team Building: Focuses on improving communication, trust, and collaboration

among team members.
2. Leadership Development: Programs aimed at enhancing leadership skills to improve
organizational effectiveness.
3. Conflict Resolution: Interventions designed to address and resolve conflicts
constructively within the organization.
4. Job Enrichment: Enhancing employees' roles to increase motivation, job satisfaction,
and engagement.
5. 360-Degree Feedback: Gathering feedback from employees at all levels to improve
performance and leadership.
6. Training and Development: Equipping employees with new skills, knowledge, and
competencies to adapt to change.
7. Employee Wellness Programs: Addressing employees' physical and mental health to
create a supportive work environment.
8. Organizational Culture Change: Interventions aimed at shifting the values,
behaviors, and assumptions that shape the organization's culture.
9. Process Improvement: Implementing Lean, Six Sigma, or other process
improvement methods to enhance operational efficiency.
10. Coaching and Mentoring: Providing one-on-one support to help individuals develop
professionally and personally.

6. International Organizational Behavior Practices

1. Cultural Sensitivity: Awareness and respect for cultural differences when managing
international teams and operations.
2. Cross-Cultural Communication: Understanding different communication styles and
adapting messages for diverse audiences.
3. Leadership Styles: Adapting leadership styles to fit different cultural expectations
(e.g., authoritarian vs. participative leadership).
4. Motivation and Reward Systems: Customizing motivational strategies to suit
cultural norms (individual vs. group rewards).
5. Negotiation Styles: Understanding how negotiation tactics vary across cultures (e.g.,
direct vs. indirect negotiation).
6. Global Talent Management: Strategies for managing and developing talent in a
multinational and culturally diverse workforce.
7. Work-Life Balance: Acknowledging cultural differences in work-life balance
expectations and adjusting policies accordingly.
8. Decision-Making: Different cultural attitudes toward decision-making, whether
hierarchical or participative.
9. Ethical Practices: Recognizing varying ethical standards and ensuring that the
organization adheres to appropriate practices in each country.
10. Training for Global Competence: Providing training on cultural intelligence to
improve the effectiveness of global teams and operations.