The Impact of Organizational Behaviour On Employees Behaviour in Pharmaceutical Companies in Selected Locations of Maharashtra Viz - Mumbai Pune Nasik Sapna Suri PDF

THE IMPACT OF ORGANIZATIONAL BEHAVIOUR ON
EMPLOYEES BEHAVIOUR IN PHARMACEUTICAL COMPANIES

IN SELECTED LOCATIONS OF MAHARASHTRA VIZ; MUMBAI,
PUNE, NASIK
Thesis submitted to the
Padmashree Dr. D.Y.Patil University, Navi Mumbai,
Department of Business Management
In partial fulfillment of the award of the degree
Of
DOCTOR OF PHILOSOPHY
IN
BUSINESS MANAGEMENT
Submitted by
SAPNA SURI
Enrollment No: DYP-PhD-076100029
Research Guide
Prof. Dr. PRADIP MANJREKAR
DEAN
PADMASHREE DR. D.Y. PATIL UNIVERSITYS
DEPARTMENT OF BUSINESS MANAGEMENT,
SECTOR 4, PLOT NO. 10,
CBD Belapur, Navi Mumbai- 400614
JUNE 2012
1
THE IMPACT OF ORGANIZATIONAL BEHAVIOUR
ON
EMPLOYEES BEHAVIOUR IN PHARMACEUTICAL
COMPANIES IN
SELECTED LOCATIONS OF MAHARASHTRA VIZ;
MUMBAI, PUNE, NASIK
2
DECLARATION
I hereby declare that the Study titled " The impact of organizational behaviour on
employees behaviour in Pharmaceutical companies in selected locations of Maharashtra
Viz; Mumbai, Pune, Nasik. submitted for the PhD Degree at Padmashree Dr. D.Y. Patil
University, Navi Mumbai, Department of Business Management is my original work and
the dissertation has not formed the basis for the award of any degree, associate ship,
fellowship or any other similar titles.
Place: Navi Mumbai
Date :
Signature of the PhD Student
(SAPNA SURI)
3
CERTIFICATE
This is to certify that the thesis entitled "The impact of organizational behaviour on
employees behaviour in Pharmaceutical companies in selected locations of
Maharashtra Viz; Mumbai, Pune, Nasik." and submitted by Ms. Sapna Suri is a
bonafide research work for the award of the Doctor of Philosophy in Business
Management at the Padmashree Dr. D. Y.Patil University Department of Business
Management in partial fulfillment of the requirements for the award of the Degree of
Doctor of Philosophy in Business Management and that the thesis has not formed the
basis for the award previously of any degree, diploma, associate ship, fellowship or any
other similar title of any University or Institution. Also certified that the thesis represents
an independent work on the part of the candidate.
Place: Navi Mumbai

Date:
Signature of the Head of the Dept Signature of Guide
4
ACKNOWLEDGEMENT
I am greatly indebted to the Padmashree Dr. D.Y. Patil University, Department of Business
Management which has accepted me for the Doctoral Program and provided me with an
excellent opportunity to carry out the present research work. I wish to thank Professor
Dr.R.Gopal, Director,Padmashree Dr. D.Y. Patil University, Navi Mumbai, Department
of Business Management who has been a perpetual source of inspiration and offered
valuable suggestions to improve my Research work.
I am grateful to my guide, mentor, philosopher Dr. Pradip Manjrekar for having guided
me throughout the research span of time and for providing his constructive criticism
which made me bring my best.
I sincerely thank my Family, for providing me the necessary motivation for completing
this dream project. I also wish to place on record my sincere thanks to my friends and
relatives who have provided me with the strength and ability to carry this research out of
the best of my ability.
Place: Navi Mumbai
Date: Signature of the PhD student
5
TABLE OF CONTENTS
Chapter no Title Pg.No.
LIST OF ABBREVIATIONS 10
LIST OF TABLES 12
LIST OF FIGURES 15
EXECUTIVE SUMMARY 16
1. INTRODUCTION 21
1.1 ORGANIZATIONAL BEHAVIOUR AND ITS IMPACT ON 37

EMPLOYEES BEHAVIOUR
1.2 MAHARASHTRAS PHARMACEUTICALS INDUSTRY 60
2. REVIEW OF LITERATURE 63
2.1 ORGANIZATIONAL BEHAVIOUR STUDIES 64
2.2 EMPLOYEES BEHAVIOUR STUDIES 71
2.3 IMPACT OF ORGANIZATIONAL BEHAVIOUR ON 77

EMPLOYEES BEHAVIOUR STUDIES
2.4 ORGANIZATIONAL STURCTURE STUDIES 86
2.5 LEADERSHIP STUDIES 88
2.6 POLITICAL ENVIRONMENT STUDIES 92
2.7 IMPLEMENTATION OF EVALUATION AND 95

APPRAISAL STUDIES
2.8 SUPERVISORY STYLE STUDIES 98
2.9 INTERNAL COMMUNICATION STUDIES 99
6
2.10 EMPLOYEES BEHAVIOUR AND SATISFACTION 102
STUDIES
2.11 CREATIVITY STIMULANTS STUDIES 104
2.12 ETHICS AND SOCIAL RESPONSIBILITY STUDIES 106
2.13 POWER AND POLITICS STUDIES 108
2.14 TEAMS AND TEAMS WORK STUDIES 111
2.15 ABSENTEEISM STUDIES 116
2.16 ATTRITION STUDIES 121
2.17 RESEARCH GAP 125
3. SCOPE OF THE STUDY 127
3.1 OBJECTIVES OF THE STUDY 128
3.2 STATEMENT OF HYPOTHESIS 130
4. RESEARCH METHODOLOGY 132
4.1 DESCRIPTIVE SURVEY 133
4.2 FIELD SURVEY 133
4.3 PILOT TEST 134
4.4 SAMPLING DESIGN 135
4.5 TABULATION AND STATISTICAL ANALYSIS OF 136

DATA
4.6 INTERPRETATION AND REPORT WRITING 136
4.7 LIMITATION OF THE STUDY 137
7
5. ORGANIZATIONAL BEHAVIOUR 138
5.1 ORGANIZATIONAL STRUCTURE 143
5.2 LEADERSHIP 152
5.3 POLITICAL ENVIRONMENT 157
5.4 IMPLEMENTATION OF EVALUATION AND 159

APPRAISAL SYSTEM
5.5 SUPERVISORY STYLE 174
5.6 INTERNAL COMMUNICATION SYSTEM 175
5.7 POWER AND POLITICS 177
5.8 TEAMS AND TEAMS WORK 179
5.9 ETHICS AND SOCIAL RESPONSIBILITY 183
6 EMPLOYEES BEHAVIOUR 190
6.1 ABSENTEEISM 201
6.2 ATTRITION RATE 202
6.3 EMPLOYEE SATISFACTION 208
7 DATA INTERPRETATION 215
7.1 CITY OF RESPONDENTS 216
7.2 TYPE OF ORGANIZATION OF RESPONDENTS 217
7.3 GENDER OF RESSPONDENTS 218
7.4 AGE GROUP OF RESPONDENTS 219
7.5 MONTHLY INCOME OF RESPONDENTS 220
8
7.6 EXPERIENCE OF RESPONDENTS 221
7.6..1 DIMENSIONS OF THE STUDY 223
7.6.1.1 STRUCTURE OF ORGANIZATION 223
7.6.1.2 LEADERSHIP OF ORGANIZATION 226
7.6.1.3 POLITICAL ENVIRONMENT OF ORGANIZATION 228
7.6.1.4 IMPLEMENTATION OF EVALUATION AND 230

APPRAISAL OF ORGANIZATION
7.6.1.5 SUPERVISORY STYLE OF ORGANIZATION 232
7.6.1.6 INTERNAL COMMUNICATION SYSTEM OF 234

ORGANIZATION
7.6.1.7 CREATIVITY STIMULATION OF ORGANIZATION 236
7.6.1.8 ETHICS AND RESPONSIBILTY OF ORGANIZATION 239
7.6.1.9 TEAMS AND TEAMS WORK 240
7.6.1.10 JOB SATISFACTION OF THE EMPLOYEES OF THE 244

ORGANIZATION
8. HYPOTHESIS TESTING 247
9 MAJOR FINDINGS AND CONCLUSIONS 282
10 RECOMMENDATIONS 287
290
APPENDIX
1. BIBLIOGRAPHY 291
2. QUESTIONNAIRE 310
3. LIST OF COMPANIES 323
9
LIST OF ABBREVIATIONS
SR. NO ABBREVIATION FULL FORM

1 OB Organizational Behaviour
2 POS Positive Organizational Scholarship
3 OCB Organizational Citizen Behavior
4 CEO Chief Executive Officer
5 USA United States of America
6 HRM Human Resource Management
7 FDI Foreign Direct Investment
8 R&D Research and Development
9 IPR Intellectual Property Rights
10 SSI Small Scale Industries
11 MED Medium Scale Industries
12 LS Large Scale Industries
13 VET Vocational Education and Training
14 OSCD Organisational Support for Career Development
15 SCCT Social Cognitive Career Theory
16 HRP Human Resource Practices
17 PC Psychological Contract
18 SOE supervisors Organizational Embodiment
19 PCFD Positive Climate For Diversity
20 POF Person-Organization Fit
21 POS Perceived Organisational Support
22 e-CRM Electronic Customer Relationship Management
23 HRD Human Resource Development
24 IT Information Technology
25 OI Organizational Identification
26 WLOC Work Locus Of Control
27 UK United Kingdom
28 CIMA Chartered Institute of Management Accountants
29 GM General Motors Corp
30 GNS Growth Need Strength
31 SES Senior Executive Service
32 MEPS Medical Expenditure Panel Survey
33 ITES Information Technology Enabled Services
34 GPA Grade Point Average
35 CCA City Compensation Allowances
36 HRA House Rent Allowances
37 SS Sample Size
38 P Percentage picking a choice, expressed as decimal
39 C Confidence interval expressed as decimal
40 Z Z value
41 SPSS Statistical Package for Social Sciences
42 MNC Multinational Company
43 GRS A Graphic Rating Scale
44 BARS Behaviorally-Anchored Rating Scale
10
45 BOS Behavior Observation Scale
46 MBO Management by Objectives
47 IC Internal Communications
48 TP Technological Project
49 Vol Volume
50 PP Pages
51 & And
52 MD Managing Director
53 VP Vice President
54 OR Odds Ratio
55 CI Confidence Interval
56 CEO Chief Executive Officer
57 MSU Michigan State University
58 CVB Core Value Behavior
59 CWB Counterproductive Work Behavior
60 SOE Supervisor's Organizational Embodiment
61 OIG Office of Internal Governance
62 DCFSA Dependent Care Flexible Spending Account
63 EPQ Equity Preference Questionnaire
64 ESI Equity Sensitivity Instrument
65 GRE Gini Ratio Equilibrium
66 RPE Required Professional Experience
67 SLPAB Speech-Language Pathology and Audiology Licensing
Board
68 CF Clinical Fellowship
69 ASHA American Speech-Language and Hearing Association
70 II Imagined Interaction
71 EI Emotional Intelligence
72 WEI Work Environment Inventory
73 MRT Media Richness Theory
74 MSQ Media Selection Questionnaire
75 LEI Leadership Effectiveness Inventory
76 BMI Body Mass Index
77 ILI Influenza-Like Illness
11
LIST OF TABLES
TABLE NAME OF TABLE PAGE

NO NO
TABLE 4.1 Classifies cities based on their CCA and HRA statuses 135
TABLE 4.2 Details of size of the Companies, Total Number of Employees, and 135
Total number of sample selected
Table 7.1 Respondents according to City 216

Table 7.2 Respondents according to type of Organization 217
Table 7.3 Respondents according to Gender 218
Table 7.4 Respondents according to Age group 219

Table 7.5 Respondents according to Monthly Income 220
Table 7.6 Respondents according to Experience 221

Table 7.6.1 Structure of Organization 223
Table 7.6.2 Leadership of Organization 226
Table 7.6.3 Political Environment of Organization 228

Table 7.6.4 Implementation of Evaluation and Appraisal of organization 230
Table 7.6.5 Supervisory style of Organization 232
Table 7.6.6 Internal Communication System of the Organization 234
Table 7.6.7 Creativity Stimulation of Organization 236
Table 7.6.8 Ethics and Responsibility of Organization 239
Table 7.6.9 Teams and Team Work 241
12
Table Job Satisfaction of the Employees of the Organization 244
7.6.10
Table 8.1 Results of Chi-square test 248
Table 8.2 ANOVA TABLE 248
Table 8.3 Respondents according to Type of organization and 250
combination of Employees
Table 8.4 Paired T Test for Organizational Behavior 252
Table 8.5 Result of T-test for Organizational Behavior 252

Table 8.6 Paired T Test for Job Satisfaction 253
Table 8.7 Result of T-test for Job satisfaction 253
Table 8.8 Chi-Square Test 254
Table 8.9 Respondents according to Level of organizational behavior 255
and level of Employee satisfaction
Table 8.10 Chi-Square test 258
Table 8.11 ANOVA TEST 258
Table 8.12 Respondents according to Leadership of organization and Job 259
satisfaction of Employees

Table 8.14 Respondents according to Gender and job satisfaction of 261
Employees
Table 8.16 Respondents according to age and job satisfaction of 263
Employees
Table 8.18 Respondents according to income and job satisfaction of 265
Employees
Table 8.21 Respondents according to Political Environment of 268
organization and Job satisfaction of Employees
13
Table 8.24 Respondents according to Evaluation and Appraisal of 270
Table 8.27 Respondents according to Ethics and Social Responsibility of 273
Table 8.29 Respondents according to Communication System of 275
Table 8.30 Respondents according to dimensions of organizational 276
behaviour
Table 8.31 T-test 279
Table 8.32 Correlations 280
Table 8.33 Correlations 280
14
LIST OF FIGURES
Figure Name of the Figure Page no

no
5.1 Hierarchy-Community Phenotype Model of Organizational 150
Structure
7.1 Diagram of respondents according city 217
7.2 Diagram of respondents according to type of organization 218
7.3 Diagram of respondents according to gender of organization 219
7.4 Diagram of respondents according to age of organization 220
7.5 Diagram of respondents according to monthly income 221
7.6 Diagram of respondents according to Experience 222
7.6.1 Table of response for Que no 1 to 11 225
7.6.2 Table of response for Que no 12 to 16 227
7.6.3 Table of respondents for Que 17 to 24 229
7.6.4 Table of respondents from Que no 25 to 29 231
7.6.10 Table of Respondents from Que no 1 to 15 246
8.1 Diagram of respondents according to type of organization and 251
combination of employees
8.2 Diagram of respondents according to level of organizational 257
behaviour and level of employees behaviour
8.3 Diagram of respondents according to leadership of organization 260
and job satisfaction of employees
8.4 Diagram of respondents according to gender and job satisfaction 262
of employees
8.5 Diagram of respondents according to age and job satisfaction of 264
employees
8.6 Diagram of respondents according to income and job satisfaction 266
of employees
8.7 Diagram of respondents according to political environment of 269
organization and job satisfaction of employees
8.8 Diagram of respondents according to Evaluation and appraisal of 271
organization and job satisfaction of employees
8.9 Diagram of respondents according to Ethics and social 274
responsibility of organization and job satisfaction of employees
8.9 Diagram of respondents according to Internal communication 276
system of organization and job satisfaction of employees
15
EXECUTIVE SUMMARY
16
EXECUTIVE SUMMARY
Organisational behaviour is concerned with the characteristics and behaviours of
employees in isolation; the characteristics and processes that are part of the organisation
itself; 'and the characteristics and behaviours directly resulting from people with their
individual needs and motivations working within the structure of the organisation. One
cannot understand an individuals behaviour completely without learning something
about that individual's organisation. Similarly, he cannot understand how the organisation
operates without; studying the people who-make it up. Thus, the organisation influences
and is influenced by individuals.The key elements in the organisational behaviour are
people,, structure, technology and the environment in which the organisation operates.
People: People make up the internal and social system of the organisation. People
consist of individuals and groups. The groups may be big or small; formal or informal;
official or unofficial. Groups are dynamic and they work in the organisation to achieve
their objectives. Structure: Structure defines the formal relationships of the people in
organisations. Different people in the organisation are performing different type of jobs
and they need to be (elated in some structural way so that their work can be effectively
co-ordinated. Technology: Technology such as machines and work processes provide
the resources with which people work and affects the tasks that they perform. The
technology used has a significant influence on working relationships. It allows people to
do more and work better but it also restricts' people in various ways. Environment. This
study undertaken begins with the introduction of organizational behaviour. The concept
of organizational behavior and impact of organizational behaviour on employees
behavior has been done. For understanding organizational behaviour various dimensions
17
such as organizational structure, internal communication system, power and politics etc
were used which throw the light on the concept. Similarly for understanding employees
behaviour various dimensions such as absenteeism, attrition rate, job satisfaction etc
which throw light on the concept were used. Further the study progresses with extensive
literature review on employees behaviour, organizational behaviour and various
dimensions further divided into ten groups explained in detail. In Literature Review
chapter the entire gist of various dimensions has been used. Further the literature review
was divided into various groups. The extensive literature on organizational structure,
political environment, teams and team work, leadership style, job satisfaction, ethics and
social responsibility, creativity stimulants, Internal communication system, supervisory
style, implementation of evaluation and appraisal system has been given . On the basis of
the literature review which was collected from various books, research journals, research
papers, thesis as well as various research articles research gap has been formulated. The
literature of study undertaken was a unique one. The study has a wider scope. The study
explained the impact of organizational behaviour on employees behaviour with respect to
pharmaceutical companies employees of selected locations of Mumbai, Pune and Nasik.
The objective of the study was to understand organizational behaviour taking into
account various dimensions such as organizational structure, political environment, teams
and teams work, creativity stimulation, leadership, internal communication system etc in
connection with employees behaviour. On the basis of the objectives of the study
hypothesis have been formulated. Research Methodology comprised of descriptive
survey, field servey, pilot test, sampling design, tabulation and statistical analysis of data,
interpretation and report writing, and limitation of the study. The study mentioned both
18
primary data as well as secondary data. The primary data was collected with the help of a
questionnaire. After preparation of the questionnaire pilot study has been conducted.
Respondents of the study were employees of pharmaceutical companies of selected
locations of Mumbai, Pune and Nasik. On the basis of pilot study further modification of
the questionnaire was done and sample size of the study was decided. The data collected
comprised of demographic factors such as age, gender, income, experience, of the
employees. Further the data comprised of dimensions which were further divided into ten
groups is represented with the help of tables and diagrams. Demographic factors were
represented with the help of pie chart and dimensions of the study were represented with
the help of bar chart. Further study discussed about the organizational behaviour in detail.
Employees behaviour in detail has been discussed in the study. The entire data in detail
with the help of diagrams and figures has been explained in chapter on data
interpretation. The Data collected was Hypothesised and tested through SPSS by
applying test such as T-test, Chi-square, Karl Pearson correlation, ANOVA. Hypothesis
formulated were further tested with the help of various test applied through SPSS.People
had agreed on maximum questions of organizational structure, political environment,
teams and team work, leadership style, job satisfaction, ethics and social responsibility,
creativity stimulants, Internal communication system, supervisory style, implementation
of evaluation and appraisal system was demonstrated by the findings of the research . The
employees had an inclination to climb the ladder of the organization was found. They
wanted to be in top management of their respective organizations. On the basis of the
findings conclusions were drawn. People were satisfied with the job allotted to them was
found. But according to the employees internal communication system should be clearer
19
so as to provide information regarding roles and responsibilities in the organizations. The
organizations are making efforts to retain the employees but the organizations need more
efforts to hold back the employees in the organization was found. The organizational
behaviour had great impact on employees behaviour was proved. The recommendations
based on the findings which gave the insights of the behaviour of employees as well as
organization have been given by the study.
20
CHAPTER 1
INTRODUCTION
21
CHAPTER 1
INTRODUCTION
"Organisations are social inventions for accomplishing goals through group efforts". By
Gary Johns. This definition covers wide variety-of groups such as businesses, schools,
hospitals, fraternal groups, religious bodies, government agencies and so on. There are
three significant aspects in the above definition, which require further analysis. They are
as follows: Social Inventions: The word "social" as a derivative of society basically
means gathering of people. It is the people that primarily make up an organisation.
Accomplishing Goals: All organisations have reasons for their existence. These reasons
are the goals towards which all organisational efforts are directed. While the primary goal
.of any commercial organisation is to make money for its owners, this goal is inter-related
with many other goals. Accordingly, any organisational goal must integrate in itself the
personal goals of all individuals associated with the organisation.
Group Effort: People, both as members of the society at large and as a part of an
organisation interact with each other and are inter-dependent. Individuals in themselves
have physical and intellectual limitations and these limitations can only be overcome by
group efforts. Organizations comprise of human beings who are highly complex and
unpredictable in nature. The management of organizations is therefore a challenging task.
Increasing diversity, knowledge and information explosion, strategic partnerships, global
competition and emphasis on total quality management are the other challenges
confronting managers in the modern times. To meet these challenges, managers require
cooperation from individual employees and their work groups who often resist change.
So, for an effective management of organizations, an in-depth study of the behavior of
individuals within workgroups, including an analysis of the nature of workgroups is
required One such study is 'organizational behavior.'
Organisational behaviour is concerned with people's thoughts, feelings, emotions and

actions in setting up a work. Understanding an individual behaviour is in itself a
22
challenge, but understanding group behaviour in an organisational environment is a
monumental managerial task. As Nadler and Tushman put it, "Understanding one
individual's behaviour is challenging in and of itself; understanding a group that is made
up of different individuals and comprehending the many relationships among those
individuals is even more complex. Ultimately, the organisation's work gets done through
people, individually or collectively, on their, own or in collaboration with technology.
Therefore, the management of organisational behaviour is central to the management
taska task that involves the capacity to "understand" the behaviour patterns of
individuals, groups and organisations, to ''predict'" what behavioural responses will be
elicited by various managerial actions and finally to use this understanding and these
predictions to achieve "control".
Organisational behaviour can then be defined as: "The study of human behaviour in
organisational settings, the interface between human behaviour and the organisational
context, and the organisation itself." The above definition has three partsthe individual
behaviour, the organisation and the (interface between the two. Each individual brings to
an organisation a unique set of beliefs, values, attitudes and other personal characteristics
and these characteristics of all individuals must interact with each other in order to create
organisational settings. The organisational behaviour is specifically concerned with work-
related behaviour, which takes place in organisations. In addition to understanding; the
on-going behavioural processes involved, in 'their own jobs, managers must understand
the basic human element of their work.
Organisational behaviour offers three major ways of understanding this context; people
as organisations, people as resources and people as people. Above all, organisations are
people; and without people there would be no organisations. Thus, if managers are to
understand the organisations in which they work, they must first understand the people
who make up the organisations. As resources, people are one of the organisation's most
valuable assets. People create the organisation, guide and direct its course, and vitalise
and revitalise it. People make the decisions, solve the problems, and answer the
questions. As managers increasingly recognise the value of potential contributions by
23
their employees, it will become more and more important for managers and employees to
grasp the complexities of organisational behaviour. Finally, there is people as people - an
argument derived from the simple notion of humanistic management. People spend a
large part of their lives in; organisational settings, mostly as employees. They have a right
to expect something in return beyond wages and benefits. They have a right to expect
satisfaction and to learn new skills. An understanding of organisational behaviour can
help the manager better appreciate the variety of individual needs and' expectations.
Organisational behaviour is concerned with the characteristics and behaviours of
employees in isolation; the characteristics and processes that are part of the organisation
itself; 'and the characteristics and behaviours directly resulting from people with their
individual needs and motivations working within the structure of the organisation. One
cannot understand an individuals behaviour completely without learning something
about that individual's organisation. Similarly, he cannot understand how the organisation
operates without; studying the people who-make it up. Thus, the organisation influences
and is influenced by individuals.
The key elements in the organisational behaviour are people,, structure, technology and
the environment in which the organisation operates. People: People make up the internal
and social system of the organisation. They consist of individuals and groups. The groups
may be big or small; formal or informal; official or unofficial. Groups are dynamic and
they work in the organisation to achieve their objectives. Structure: Structure defines the
formal relationships of the people in organisations. Different people in the organisation
are performing different type of jobs and they need to be (elated in some structural way
so that their work can be effectively co-ordinated. Technology: Technology such as
machines and work processes provide the resources with which people work and affects
the tasks that they perform. The technology used has a significant influence on working
relationships. It allows people to do more and work better but it also restricts' people in
various ways. Environment: All organisations operate within an external environment. It
is the part of a larger system that contains many other elements such as government,
family and other organisations. All of these mutually influence each other in a complex
system that creates a context for a group of people. Each individual brings to an
24
organisation a unique set of personal characteristics, experiences from other organisation,
the environment surrounding the organisation and they also poses a personal background.
In considering the people working in an organization, organizational behaviour must look
at the unique perspective that each individual brings to the work setting. But individuals
do not work in isolation. They come in contact with other individuals and the
organisation in a variety of ways. Points of contact include managers, co-workers, formal
policies and procedures of the organisation, and various changes implemented by the
organisation. Over time, the individual, too, changes, as a function of both the personal
experiences and the organisation.
The organisation is also affected by the presence and eventual absence of the individual.
Clearly, the study of organisational behaviour must consider the ways in which the
individual and the organisation interact. An organisation, characteristically, exists before
a particular person joins it and continues to exist after he leaves it. Thus, the organisation
itself represents a crucial third perspective from which to view organisational behaviour.
The rules of work are different from the rules of play. The uniqueness of rules and the
environment of organisations forces managers to study organisational behaviour in order
to learn about normal and abnormal ranges of behaviour. A more specific and formal
course in organisational behaviour helps an individual to develop more refined and
workable sets of assumption that is directly relevant to his work interactions.
Organisational behaviour helps in predicting human behaviour in the organisational

setting by drawing a clear distinction between individual behaviour and group behaviour.
Organisational behaviour does not provide solutions to all complex and different
behaviour puzzles of organisations. It is only the intelligent judgement of the manager in
dealing with a specific issue that can try to solve the problem. Organisational behaviour
only assists in making judgements that are derived from tenable assumptions; judgement
that takes into account the important variables underlying the situation; judgement that
are assigned due recognition to the complexity of individual or group behaviour;
judgement that explicitly takes into account the managers own goals, motives, hang-ups,
blind spots and weaknesses.
25
Organisational behaviour offers several ideas to management as to how human factor
should be properly emphasised to achieve organisational objectives. Barnard has
observed that an organisation is a conscious interaction of two or more people. This
suggests that since an organisation is Ihe interaction of persons, they should be given
adequate importance in managing the organisation. Organisational behaviour provides
opportunity to management to analyse human behaviour and prescribe means for shaping
it to a particular direction. Understanding Human Behaviour Organisational behaviour
provides understanding the human behaviour in all directions in which the human beings
interact. Thus, organisational behaviour can be understood at the individual level,
interpersonal level, group level and inter-group level. Organisational behaviour helps to
analyse 'why' and 'how' an individual behaves in a particular way. Human behaviour is a
complex phenomenon and is affected by a large number of factors including the
psychological, social and cultural implications.
Organisational behaviour integrates these factors to provide simplicity in understanding

the human behaviour. Interpersonal Level: Human behaviour can be understood at the
level of interpersonal interaction. Organisational behaviour provides means for
understanding the interpersonal relationships in an organisation. Analysis of reciprocal
relationships, role analysis and transactional analysis are some of the common methods,
which provide such understanding. Group Level: Though people interpret anything at
their individual level, they are often modified by group pressures, which then become a
force in shaping human behaviour, Thus, individuals should be studied in groups also..
Research in group dynamics has contributed vitally to organisational behaviour and
shows how a group behaves in its norms, cohesion, goals, procedures, communication
pattern and leadership. These research results are advancing managerial knowledge of
understanding group behavior, which is very important for organizational morale and
productivity. Inter-group Level: The organization is made up of many groups that
develop complex relationships to build their process and substance. Understanding the
effect of group relationships is important for managers in today's organization. Inter-
group relationship may be in the form of co-operation or competition. The co-operative
relationships help the organization in achieving its objectives.
26
Organisational behaviour provides means to understand and achieve co-operative group
relationships through interaction, rotation of members among groups, avoidance of win-
lose situation and focussing on total group objectives.
Controlling and Directing Behaviour: After understanding the mechanism of human

behaviour, managers are required to control and direct the behaviour so that it conforms
to the standards required for achieving the organisational objectives. Thus, managers are
required to control and direct the behaviour at all levels of individual interaction.
Therefore, organisational behaviour helps managers in controlling and directing in
different areas such as use of power and sanction, leadership, communication and
building organisational climate favourable for better interaction.
Use of Power and Sanction: The behaviours can be controlled and directed by the use of
power and sanction, which are formally defined by the organisation. Power is referred to
as the capacity of an individual to take certain action and may be utilised in many ways.
Organisational behaviour explains how various means of power and sanction can ,be
utilised so that both organisational and individual objectives are achieved simultaneously.
Leadership: Organisational behaviour brings new insights and understanding to the

practice and theory of leadership. It identifies various leadership styles available to a
manager and analyses which style is more appropriate in a given situation. Thus,
managers can adopt styles keeping in view the various dimensions of organizations,
individuals and situations.
Communication: Communication helps people to come in contact with each other. To

achieve organisational objectives, the communication must be effective. The
communication process and its work in inter-personal dynamics have been evaluated by
organisational behaviour.
Organizational Climate: Organisational climate refers to the total organizational

situations affecting human behaviour. Organisational climate takes a system perspective
27
that affect human behaviour. Besides improving the satisfactory working conditions and
adequate compensation, organisational climate includes creation of an atmosphere of
effective supervision; the opportunity for the realisation of personal goals, congenial
relations with others at the work place and a sense of accomplishment.
Organizational Adaptation: Organisations, as dynamic entities are characterized by

pervasive changes. Organisations have to adapt themselves to the environmental changes
by making suitable, internal arrangements such as convincing employees who normally
have the tendency of resisting any changes.
Organisational behaviour can be viewed from different perspectives or levels of analysis.

At one level, the organisation can be viewed as consisting of individuals working on
tasks in the pursuit of the organisational goals. A second level of analysis focuses upon
the interaction among organisational members as they work in' teams, groups and
departments. Finally, organisational behaviour can be analysed from the perspective of
the organisation as a whole.
Organisation at the Individual Level: Organisational behaviour can be studied in the

perspective of individual members of the organisation. This approach to organisational
behaviour draws heavily on the discipline of psychology and explains why individuals
behave and react the way they do to different organisational policies, practices and
procedures. Within this perspective, psychologically based theories of learning,
motivation, satisfaction and leadership are brought to bear upon the behaviour and
performance of individual members of an organisation. Factors such as attitudes, beliefs,
perceptions and personalities are taken into account and their impact upon individuals
behaviour and performance on the job is studied.
Organization at the Group Level: People rarely work independently in organisations;

they have to necessarily work in coordination to meet the organisational goals. This
frequently results in people working together in teams, committees and groups. How do
people work together in groups? What factors determine whether group will be cohesive
28
and productive? What types of tasks could be assigned to groups? These are some of the
questions that can be asked about the effective functioning of groups in organisations. An
important component of organisational behaviour involves the application of knowledge
and theories from social psychology to the study of groups in organizations.
Organisation at the Organizational Level: Some organisational behaviour researchers

take the organisation as a whole as their object of study. This macro perspective on
organisational behaviour draws heavily on theories and concepts from the discipline of
'sociology'. Researchers seek to understand the implications of the relationship between
the organisation and its environment for the effectiveness of the organisation. Emphasis
is placed upon understanding how organisational structure and design influences the
effectiveness of an organisation. Other factors such as the technology employed by the
organisation, the size of the organisation and the organisation's age are also examined and
their implications for effective organisational functioning are explored. These different
perspectives on the study of organisational behaviour are not in conflict with one another.
Instead they are complementary. A full and complete understanding of the nature of
organisations and the determinants of their effectiveness requires a blending of
knowledge derived from each perspective.
Organisational behaviour starts with the following six fundamental concepts revolving
around the nature of people and organizations: The nature of people: Individual
differences, A whole person Motivated behavior, Value of the person.
Individual Differences: Individuals are different in their physical and mental traits. They
are different not only in the physical appearance such as sex, age, height, weight,
complexion and so on but also different in their psychological trait such as intelligence,
attitude, motivation and perception. This belief that each person is different from all
others is typically called the 'Law of Individual Differences'. Individual differences mean
that the management has to treat them differently to get the best out of them.
29
A Whole Person: Though the organization may feel that they are employing only the
individual's skill or intelligence, in fact, they employ the 'whole person'. This means that
individual does not have only the skill and intelligence but he has a personal life, needs
and desires as well. In other words, his personal life cannot be separated from his work
life since people function as total human beings.When management practices
organisational behaviour, it is not only trying to develop a better employee but it also
wants to develop a 'better person' in terms of all round growth and development. The
benefit will extend beyond the firm into the larger society in which each employee lives.
Motivated behavior: It is the urge of the individual to satisfy a particular need that
motivates him to do an act. The motivation could be positive or negative. Motivation is
essential for the proper functioning of organisations. The organisation can show to its
employees how certain actions will increase their need fulfilment.
Value of the Person: It is more an ethical philosophy. It stresses that people are to be
treated with respect and dignity. Every job, however simple, entitles the people who do it
to proper respect and recognition of their unique aspirations and abilities.
Since organisational behaviour involves people, ethical philosophy is involved in one

way or the other. The nature of an organisation can be understood with the help of
description of following two points:
Social System: A system is a group of independent and interrelated elements comprising

a unified whole. In context with an organisation, the individuals of a society are
considered as a system organised by a characteristic pattern of relationships having a
distinctive culture and values. It is also called social organisation or social structure. It
can be further divided into following categories: A) Feudal system: This is a social
system, which is developed in Europe in the 8th Century. A political and economic
system based on the holding of. land and relation of lord to vassal and characterized by
homage, legal and military service of tenants, and forfeiture. B) Patriarchate: This is
social system, in which a male is considered to be the family head and title or surname is
30
traced through his chain. In other words, power lies in his hands. C) Matriarchate: This
is social system, in which a female is considered to be the family head and title or
surname is traced through her chain. In other words, power lies in her hands.
D) Meritocracy: This is a social system, in which power vests in the hands of the person
with superior intellects. E) Class Structure: This is a social system of different classes
with in a society. F) Segregation: This is a social system, which provides separate
facilities for minority groups of a society.
Mutual Interest: Organizational relationships are most likely to be strong if different

groups can negotiate strategies. This can be defined as the interests that are common to
both the parties and are related to the accomplishment of their respective goals. This
space for sharing ideas builds trust. Individuals who have shared mutual interests are
likely to make their organisation the strongest, because even though the views are
different they have a shared concern for similar objectives. It is important for the
individuals to think about their issues openly, and to incorporate the perspectives of their
colleagues. This helps to build sustainable and harmonious activities that can operate in
the mutual direct interests of the organisation.Holistic Organisational Behaviour: When
the above six concepts of organisational behaviour are considered together, they provide
a holistic concept of the subject. Holistic organisational behaviour interprets people-
organisation relationships in terms of the whole person, whole group, whole organisation
and whole social system. Thus, the blending of nature of people and organisation results
in an holistic organisational behaviour.
Organizational behavior is a study of individuals including the behavior within the

context of the organization in a workplace setting. Organization behavior seeks to explain
the behavior of individuals and their performance at work, both individually and in a
group. The nature of social structures or organizations (comprising of several work
groups) and organizational design are also dealt in the study of OB. Organizations
comprise of human beings who are highly complex and unpredictable in nature. The
management of organizations is therefore a challenging task. Increasing diversity,
knowledge and information explosion, strategic partnerships, global competition and
31
emphasis on total quality management are the other challenges confronting managers in
the modern times. Organizational Behavior (OB) is a discipline that deals with the study
and application of knowledge about how people as individuals and as groups act within
organizations.
Fred Luthans defines OB as "The understanding, prediction and management of

human behavior in organizations." It also attempts to explain the processes that
contribute to individuals and groups adapting their behavior in response to the changing
environmental conditions to achieve organizational goals. In this chapter, we will discuss
the theoretical framework and would throw meaningful insights on individual and group
behavior offered by OB which can help managers deal with complex situations at the
workplace.
The organizational behaviour has a goal lo help the managers make a transition to the
new paradigm. Some of the new paradigm characteristics include coverage of second-
generation information technology and total quality management such as empowerment,
reengineering and benchmarking, and learning organization for managing diversity of
work. The new paradigm sets the stage for the study, understanding, and application of
the time-tested micro-variables, dynamics and macro-variables. One must know why
management needs a new perspective to meet the environmental challenges and to shift
to a new paradigm. Management is generally considered to have three major dimensions
ie ; technical, conceptual and human. The technical dimension consists of the manager's
expertise in particular functional areas.
They know the requirements of the jobs and have the functional knowledge to get the job
done. But the practicing managers ignore the conceptual and human dimensions of their
jobs. Most managers think that their employees are lazy, and are interested only in
money, and that if you could make them happy in terms of money, they would be
productive. If such assumptions are accepted, the human problems that the management
is facing are relatively easy to solve. But human behaviour at work is much more
complicated and diverse. The new perspective assumes that employees are extremely
32
complex and that there is a need for theoretical understanding given by empirical
research before applications can be made for managing people effectively.
The organizational behaviour is a delicate and complex process. If one aims to manage an
organization, it is necessary to understand its operation. Organization is the combination
of science and people. While science and technology is predictable, the human behaviour
in organization is rather unpredictable. This is because it arises from deep needs and
value systems of people. The real beginning of applied research in the area of
organizational behaviour started with Hawthorne Experiments. In 1924, a group of
professors began an enquiry into the human aspects of work and working conditions at
the Hawthorne plant of Western Electric Company, Chicago. The findings of these
studies were given a new name 'human relations' the studies brought out a number of
findings relevant to understanding human behaviour at work. The Human element in the
workplace was considerably more important. The workers are influenced by social
factors and the behaviour of the individual worker is determined by the group. Hawthorne
studies have been criticized for their research methods and conclusions drawn. But their
impact on the emerging field of organizational behaviour was dramatic. They helped
usher in a more humanity centered approach to work.
There are mainly four approaches to organizational behaviour. They are Human
resources approach, Contingency approach, Productivity approach, and Systems
approach.
The human resources approach is concerned with the growth and development of
people towards higher levels of competency, creativity and fulfillment, because people
are the central resource in any organization. This approach help employees become better
in terms of work and responsibility and then it tries to create a climate in which they can
contribute to the best of their improved abilities. This approach is also known as
'supportive approach' because the manager's primary role changes from control of
employees to providing an active support for their growth and performance.
33
A contingency approach to organizational behaviour implies that different situations
require different behavioral practices for effectiveness instead of following a traditional
approach for all situations. Each situation must be analyzed carefully to determine the
significant variables that exist in order to establish the more effective practices. The
strength of this approach is that it encourages analysis of each situation prior to action.
Thus, it helps to use all the current knowledge about people in the organization in the
most appropriate manner.
Productivity approach is a ratio that compares units of output with units of input. It is
often measured in terms of economic inputs and outputs. Productivity is considered to be
improved, if more outputs can be produced from the same amount of inputs. But besides
economic inputs and outputs, human and social inputs and outputs also arc important.
A system is an interrelated part of an organization or a society that interacts with

everyone related to that organization or society and functions as a whole. Within the
organization 'people' employ 'technology' in performing the 'task' that they are
responsible for, while the 'structure' of the organization serves as a basis for co-ordinating
all their different activities. The systems approach view emphasizes the interdependence
of each of these elements within the organization, if the organization as a whole is to
function effectively. The other key aspect of the systems view of organization is its
emphasis on the interaction between the organization and its broader environment,, which
consists of social, economic, cultural and political environment within which they
operate.
Organizations are dependent upon their surrounding environment in two main ways:
First, the organization requires 'inputs' from the environment in the form of raw
material, people, money, ideas and so on. The organization itself can be thought of as
performing certain 'transformation' processes, on its inputs in order to create outputs in
the form of products or services.
34
Secondly, the organization depends on environment such as, public to accept its
output. The systems view of organization thus emphasizes on the key interdependencies
that organizations must manage. Within themselves the organizations must trade off the
interdependencies among people, tasks, technology and structure in order to perform their
transformation processes effectively and efficiently. Organizations must also recognize
their interdependence with the broader environments within which they exist.
Organizational behaviour can be treated as a distinct field of study. It is yet to become a
science. Now efforts are being made to synthesize principles, concepts and processes in
this field of study.
Organizational behaviour is basically an interdisciplinary approach. It draws heavily

from other disciplines like psychology, sociology and anthropology. Besides, it also takes
relevant things from economics, political science, law and history. Organizational
behaviour integrates the relevant contents of these disciplines to make them applicable
for organizational analysis.
The basic objective of organizational behaviour is to make application of various

researches to solve the organizational problems, particularly related to the human
behavioral aspect.
Organizational behaviour is a normative science. A normative science prescribes how the

various findings of researches can be applied to get organizational results, which are
acceptable to the society. Thus, what is acceptable by the society or individuals engaged
in an organization is a matter of values of the society and people concerned.
Organizational behaviour focuses the attention on people from humanistic point of view.
It is based on the belief that needs and motivation of people are of high' concern. Further,
there is optimism about the innate potential of man to be independent, creative, predictive
and capable of contributing positively to the objectives of the organization.
Organizational behaviour is oriented towards organizational objectives. In fact,
organizational behaviour tries to integrate both individual and organizational objectives
so that both are achieved simultaneously. An individual's behaviour can be analyzed
35
keeping in view his psychological framework, interpersonal-orientation, group influence
and social and cultural factors; Thus, individual's nature is quite complex and
organizational behaviour by applying systems approach tries to find solutions for this
complexity.
The study of Organizational Behaviour (OB) is very interesting and challenging too. It is
related to individuals, group of people working together in teams. The study becomes
more challenging when situational factors interact. The study of organizational behaviour
relates to the expected behaviour of an individual in the organization. No two individuals
are likely to behave in the same manner in a particular work situation. It is the
predictability of a manager about the expected behaviour of an individual. There are no
absolutes in human behaviour. It is the human factor that is contributory to the
productivity hence the study of human behaviour is important. Great importance
therefore must be attached to the study.
Researchers, management practitioners, psychologists, and social scientists must

understand the very credentials of an individual, his background, social framework,
educational update, impact of social groups and other situational factors on behaviour.
Managers under whom an individual is working should be able to explain, predict,
evaluate and modify human behaviour that will largely depend upon knowledge, skill and
experience of the manager in handling large group of people in diverse situations.
Preemptive actions need to be taken for human behaviour forecasting. The value system,
emotional intelligence, organizational culture, job design and the work environment are
important causal agents in determining human behaviour. Cause and effect relationship
plays an important role in how an individual is likely to behave in a particular situation
and its impact on productivity. An appropriate organizational culture can modify
individual behaviour. Recent trends exist in laying greater stress on organizational
development and imbibing a favorable organizational culture in each individual. It also
involves fostering a team spirit and motivation so that the organizational objectives are
achieved.
36
ORGANIZATIONAL BEHAVIOUR AND ITS IMPACT ON EMPLOYEES
BEHAVIOUR
Occupational stress is a pervasive problem that has generated substantial research

attention over the past decade. Consistent exposure to stressful working conditions has
been associated with both short- and long-term individual reactions, including negative
affect , job dissatisfaction , burnout , physical symptoms , psychological strains and
even increased mortality rates. In addition to individual costs, the direct and indirect cost
of occupational stress incurred by organizations is estimated to be more than $150 billion
per year . Such estimates are predicated on the assumption that stress can lead to
outcomes such as increased absenteeism, turnover, health care costs, and workplace
accidents. Considering the potentially widespread adverse effects of occupational stress,
it is important to understand ways in which such stressful working conditions can be
prevented or ameliorated. Such prevention strategies have been classified in terms of
primary prevention (i.e., population-based interventions applied to all people), secondary
prevention (i.e., interventions for people who are at high-risk for illness or injury), and
tertiary interventions (i.e., interventions for people who are at high-risk for illness or
injury), and tertiary interventions (i.e., interventions that target people experiencing
symptoms of illness or injury, such as through individual counseling). Leadership
behavior is likely to be an integral, yet understudied factor in the stress process that
should be amenable to change in primary prevention efforts. As salient members of the
work environment, leaders have a direct influence on subordinate behavior. As such,
leaders may either increase stress (e.g., through using excessive control) or they can
prevent stressors or facilitate coping with stress. Of the many ways that leadership can be
studied in the context of occupational stress (e.g., leader emergence in times of stress,
sources of stress in the leadership role), the effects of leadership on stress in subordinates
is perhaps the least understood.
Its not fair is a common remark we hear from people of all ages. Fairness
matters to children playing in a playground, students receiving grades, and adults making
a living. Standard English dictionaries list justice and fairness as synonyms. In a
37
colloquial sense, justice and fairness encompass virtues such as moral rightness, equity,
honesty, and impartiality. Fairness, or justice, is one of the most fundamental concerns in
society. Cohen claims that justice is a central moral standard against which social
conduct, practice, and institutions are evaluated . A phrase such as a fair days pay for a
fair days work symbolizes the importance of fairness at work to employees. In their
qualitative analysis of employees accounts of their jobs, Polayni and Tompa found the
quality of social interactions as one of the emerging concepts that are central to
employees work life. Desirable characteristics of social interaction included fair
treatment. While fairness is important for a good workplace, unfairness is often workers
actual experience. Mikula found that the workplace was one of the social settings where
most unfair events occurred. Employees perceptions of and responses to fairness at the
workplace, termed organizational justice, have been important topics in organizational
psychology. Major concepts of organizational justice and employees reactions to
various types of injustice in organizations have been well documented. Since most
organization justice research has been conducted by organizational behavior researcherit
has tended to focus on outcomes related to the efficiency of organizational functioning:
job performance, absenteeism, employees commitment to the organization, and so on.
Recently, organizational injustice and its impact on health have started gaining attention
among occupational health researchers.
Redesigning jobs from a traditional workgroup structure to a semi-autonomous team

structure has become increasingly popular, but the impact of such redesigns on employee
effectiveness criteria has been mixed. The present longitudinal quasi-experimental study
showed that although such a redesign had positive effects on 3 performance behaviors
(effort, skill usage, and problem solving), its effectiveness also depended on aspects of
the organizational context. In conditions where the organizational reward and feedback
and information systems were effective, redesigning work into a semi-autonomous team
structure had no discernible effect on performance behaviors. In conditions where these
systems were poor, however, such a redesign produced large positive benefits. This
suggests that work redesigns that enhance worker autonomy are most effective in
contexts where other supportive management systems are absent.
38
Team-based approaches to organizing work have become very popular in the last two
decades. In many instances, organizations have decided to redesign work (at considerable
effort and expense) from individually oriented jobs in traditional workgroup structures to
more autonomous team structures. In traditional workgroups, employees perform
production activities but have no management responsibility or control over planning,
organizing, directing, staffing, or monitoring, whereas in semi-autonomous teams
employees both manage and execute major production activities. It is hoped that
structuring work into semi-autonomous teams will enhance effort, cooperation,
communication, skill utilization, learning, and problem solving when compared with
more independent forms of work design.
If the voluminous popular business press is to be believed, the use of semi-autonomous

teams is a sort of panacea for organizational ills and is generally preferred to traditional
workgroups. Autonomous and semi-autonomous teams have been forwarded as a way of
transforming "isolated, reluctant, cynical, immature, apathetic employees" into
"connected, motivated, value-driven, responsible employee-owners". In addition, it has
been suggested that "any team-if it focuses on performance regardless of where it is in the
organization or what it does-will deliver results beyond what individuals acting alone in
non-team working situations could achieve". Such a belief in the transformative powers
of teams has been termed the "romance of teams" by some.
Such promotion of semi-autonomous teams, however, may simply reflect management

fashion, or the "relatively transitory collective belief, disseminated by management
fashion setters, that a management technique leads [sic] rational management progress"
(Abrahamson, 1996, p. 257). According to Abrahamson (1991, 1996), management
fashions present two dangers to organizations: (a) following the advice of management
fashion setters (e.g., consulting firms, management gurus, and mass-media publications),
organizations may adopt technically inefficient administrative technologies; or (b)
organizations may reject technically efficient administrative technologies that are not
currently fashionable.
39
If semi-autonomous teams are merely a management fashion, it is likely that many
organizations have redesigned work into team-based structures when they were not really
needed. Research that has investigated the effectiveness of team-based designs suggests
that this might actually be occurring, in that some have found positive results whereas
others have shown mixed results. These varied results suggest that the effectiveness of
transitioning to team-based designs depends on other factors, in which case organizations
should consider these factors before deciding to redesign work into more semi-
autonomous structures.
The danger, of course, lies in the costs and risks that organizations take when redesigning
work. Increasing the autonomy of workers through the use of semi-autonomous teams
means that organizations cede control to the workers, thus putting themselves at risk that
the workers will make poor decisions, be negligent in their duties, or otherwise act in
ways that are inconsistent with organizational interests. Moreover, although autonomy
may be easily given, it is not easily taken back. Therefore, an organization that redesigns
jobs into more semi-autonomous structures and finds that they did not work is likely to
encounter great difficulty reverting to their former design. Finally, research has shown
that process losses can occur in team-based structures. Conformity pressures Hackman, ,
group polarization, social loafing and free-riding (Albanese & Van Fleet, 1985) are well-
known problems associated with team- or group-based work. As such, it is not clear that
organizing work around teams is always better than organizing it around individuals.
Given these risks organizations incur in moving to semi-autonomous team designs, it is

surprising that relatively little systematic empirical research has investigated work
redesigns in which jobs that were performed in traditional workgroups are redesigned
into more semi-autonomous teams and shown when it is most appropriate.
A dominant culture of conformity and followership generates "more of the same", while a
culture encouraging individualism and leadership produces new products or methods of
production by harnessing employee creativity and innovation. For the purposes of this
discussion, the terms creativity and innovation will be used together as well as
40
interchangeably, although they are not in reality synonymous. Creative thinking leads to
change and if that change provides social or economic benefits, the result becomes an
innovation. Drucker (1999) argues that the search for innovation must be systematic and
purposeful, as opposed to waiting for the accidental light bulb experience. This
discussion attempts to explain why the rhetoric supporting the systematic and purposeful
pursuit of innovation is not always acted upon in reality.
Behaviour in organisations has often been described in metaphorical terms. When

discussing productivity and automation, it is useful to make reference to the highly
organised nature of ants and termites. One vivid illustration can be seen in the manner in
which some insects appear to be organised for the purpose of the greater good of the
colony, hive, or nest. In contrast with human enterprises, insect activities do not produce
or require managers to oversee their work and their construction projects. How can they
achieve such seemingly amazing results without an architectural, planning, managing,
leading, organising, or supervising function? Clark (1997), using the example of nest-
building behaviour of termites explains that nest building is under the control of what are
known as stigmergic algorithms. Clark (1997) describes the process like this: termites
make mud balls that at first are deposited at random. Each ball carries a chemical trace
added by the termite. Termites prefer to drop the mud balls where the chemical trace is
strongest. Probability suggests that most of the mud balls will be deposited on top of old
ones, serving to generate an even stronger attractive force. Columns begin to be formed.
When two columns are fairly close together, the drift of chemical attractants from the
neighbouring column influences the dropping behaviour by inclining the insects to
preferentially add to the side of each column that faces the other. This process continues
until arches are formed, and through more stigmergic effects, a complexity of tunnels and
chambers result. Clark (1997) emphasises that at no point during this process is a plan of
the nest represented or followed. No termite acts as construction leader. No termite
"knows" anything beyond how to respond when confronted with a specific patterning
of its local environment. The termites do not talk to one another in any way, except
through the environmental products of their own activity. While we may marvel at the
success of stigmergic algorithms for achieving end results for termite colonies, such
41
programmed mindlessness cannot be equated with the reality of human organizational
life. We know that people do not work under the influence of stigmergic algorithms, and
yet there are many parallels that can be drawn, which seem to have a disproportionately
large influence on the way our organisations function or on the way some would wish
them to function. Frederick Taylor, the founder of the scientific management movement,
perhaps misinterpreted by some for his "alleged inhumanity" towards workers (Pugh and
Hickson, 1996), could be accused of attempting to initiate something akin to stigmergic
algorithms through the application of rigid work patterns and clearly defined laws,
principles, and rules. In a sense it could be argued that he attempted to produce
unthinking clones that would work as efficiently as machines or termites.
Organisations no longer adhere to such beliefs or do they? Some organisations have

deeply embedded cultures, traditions, and operating procedures designed to reduce the
cognitive load for individuals, supposedly making their work easier and of a standardised
nature. However, the reduced need to think often results in performance rigidity, the
consequence of an over-reliance on plans, strict operating policies, and deeply entrenched
procedures a type of human stigmergic algorithm. It is argued that reliance on such
"automated" systems increases the risk that the organisation will eventually lose its
competitive edge through the loss of individualistic and innovative employee behaviour.
The impact on the organisation can be quantified in lost earnings, due to the introduction
of fewer new ideas, and as a consequence fewer new products or services for the
customer.
The organisation may also experience higher operating costs due to low morale,
increasing staff turnover, and unnecessarily inflated training and recruitment costs. The
result is a demoralised and alienated staff, and for the organisation, reduced
competitiveness. This is supported by Greenwood and Hinings (1996) who warn that a
stagnant organisation (one that cannot innovate to meet evolving environmental
conditions) will eventually find itself unable to compete in an increasingly complex and
technologically sophisticated economy. An organisation, as with a single individual, will
42
economise by developing patterned thinking, finding security in the establishment of
routine habits such as meetings and standardised decision-making procedures. This is
analogous to the termites' use of stigmergic algorithms for directing their nest
building behaviour, the result is efficient and economic activity, but with minimal, if any
exploitation of opportunities. Roberts (1988) suggests that innovation requires two parts,
the generation of an idea or invention, and its exploitation through a business or other
application. Therefore, efficient economic activity without purposeful exploitation cannot
be called innovation. For several decades now, it has been fashionable for organisations
to be seen to thrive in the midst of chaos (Peters, 1987), to be creative, and for
management to encourage innovative behaviours amongst employees , encouraging them
to escape from predictable and conventional patterns of thought. Managers have been
encouraged to foster a culture better equipped to cope with the rapidity of change and the
unpredictability of the times (Galbraith, 1982; Schuler, 1986; Waterman, 1987).
Drucker long ago punctuated the importance of creative and innovative behaviour in
business by arguing that there are only two basic functions in business - marketing and
innovation. He claimed that marketing and innovation produce results and the "rest"
should simply be viewed as costs to the organisation (Drucker, 1974). Managerial
thinking has undergone a number of stages of an evolutionary process. Managers and
theorists have cycled through a variety of "fashions" including efficiency, zero defects,
quality, flexibility, learning, and innovation. Stuart Young, the executive chairman of
New Zealand's Interlock Industries, who successfully entered the highly competitive
Japanese market, maintains that it is innovation and not quality or any of the other
management fashions that has made Interlock Industries so successful in Japan
(Gilbertson and Gilbertson, (1992). Creativity and the ability to demonstrate initiative are
seen to be key criteria for achieving success and ensuring survival for all organisations
(Day, 1994). The focus on creativity and innovation may be a step in management's
evolutionary process that will improve by ongoing and incremental refinements rather
than a complete paradigm shift, as has occurred with earlier management fashions.
Authors, academics, and consultants have described the benefits of creativity and
innovation with almost evangelical zeal. How effective have these proponents of change
43
been in altering the way that organisations operate? Increased displays of initiative,
innovation and creativity are difficult to quantify. Creativity and other cognitive
processes are what Clark (1989) calls in-the-head functions because they lack
transparency. Constructive creative behaviour and resulting innovations are therefore
often only known to have occurred in organisations by outcomes such as successful new
products, services, and/or the introduction of more effective new operating procedures.
Authors such as Ettlie (2000) and Janszen (2000) argue that this is the age of innovation.
Janszen (2000) explains that innovation - new technologies, new applications in the form
of new products and services, the development of new markets, and/or the introduction of
new organizational forms - will result in increased net value for customers and ultimately
the firm. Such "rational" approaches include a dogmatic belief in the value of
restructuring. Some managers, it seems, would prefer to focus on continuing cost-cutting
measures, rather than offset the loss of "mass" with other forms of competitive strategies
such as the systematic pursuit of innovation to stimulate growth and increase turnover.
Research by Amabile and Conti (1999) suggests that corporate decision makers of the
future should approach downsizing with great caution. They argue that the long-term
negative effects of such actions oncreativity and innovation may only retrigger the
corporate woes that started the cycle in the first place. Too much emphasis on cost-
cutting and downsizing results in an increasing number of anorexic and/or neurotic
organisations, with little energy and falling capability. A large amount of effort is
expended in self-recrimination (from too much inward looking behaviour that often
results in unnecessary or destructive restructuring programmes) and repetitive
expressions of helplessness and anxiety concerning the future. These symptoms are
comparable with people suffering from episodes of somatoform disorder. Soma means
"body". In somatoform disorders, psychological disorders take a physical form.
Davison and Neale (1998) explain that such disorders have no known physiological
explanation and are not under voluntary control, but are thought to be linked to
psychological factors, possibly anxiety. Emotional energy is converted into self-injurious
44
physical energy, resulting in symptoms such as blindness and deafness - common
(metaphorically speaking) traits amongst downsized organisations. Organisations
displaying symptoms analogous to somatoform disorder ignore or reject unpalatable
business intelligence about the market and their competitors (they have become blind and
deaf to external cues and sometimes are incapable of seeing the damage that they inflict
upon themselves as well), thereby losing their capacity for informed competitive
responsiveness to external threats. Interpersonal problems are prominent and this is often
evidenced through recurring industrial disputes. Additional levels of stress, often self-
inflicted through painful restructuring programmes, exacerbate the symptoms with panic
attacks, increased anxiety, and collective depressive disorders.
According to Mintzberg (1994) the preoccupation with "self" is justified and given an
aura of legitimacy with accompanying explanations that the firm is using "rational"
management approaches by concentrating on"efficiency", "coordinated effort",
"improved control", "strategic planning", and "waste reduction". Meanwhile, market
share and morale plummet. Christensen (1997) comments that disruptive technologies are
particularly easy to overlook and can be particularly dangerous. The anorexic/neurotic
organisation will be unaware of such looming threats from competitors; its focus is
on"efficiency". Saul (1993) discussing the effects of an over-emphasis on efficiency
within society, complains that "the rational and logical approach to thought and
procedural systems may have removed democracy's single greatest strength - the ability
to act in an unconventional manner". Society - in the form of the organisations it has
created to achieve its aims - also may as a consequence have lost it sability to accept or
tolerate unconventional behaviour. It may have become a prisoner of conventional
solutions. This is the antithesis of current prescriptions for success, which use terms such
as create, exploring alternatives, right-brain thinking, whole-brain thinking, intuition,
reflecting, examining, challenging assumptions, divergent thinking, and so forth to
describe ways of effecting change in today's world (Brookfield, 1987; de Bono, 1990;
Gardner, 1993). Colgrove (1968) claimed that the mere action of instructing someone to
be creative and to avoid obvious approaches to a problem would result in unique or
creative ideas. This may be more successful if the organisation implements
45
complementary changes that further support the emergence of creativity. Often however,
the rhetoric is not supported and rigid systems and procedures guard against the
emergence of anything even vaguely resembling what are perceived to be non-
conformist behaviours and this is expressed in promotion policies, the allocation of
resources, and the complexity of decision-making processes. The workplace is a forum
where a variety of different behaviors are expressed, each with a different consequence to
the individuals within the organization as well as the entire organization. These behaviors
usually fall within the constructs of the norms of the organization.
Organizational norms are a grouping of "expected behaviors, languages, principles and

postulations that allow the workplace to perform at a suitable pace" Coccia, (1998).
However, when normal work behavior goes outside the norms of the
organization,its consequences are far-reaching and affect all levels of the organization
including its decision-making processes, productivity and financial costs Coccia (1998).
Researchers have given these behaviors many different names including workplace
deviance Bennett and Robinson, (2003), counterproductive behavior Mangione and
Quinn, (1975), and antisocial behavior Giacolone and Greenberg, (1997). In
essence, behavior is deemed deviant when an "organization's customs, policies, or
internal regulations are violated by an individual or a group that may jeopardize the well-
being of the organization or its citizens" Robinson and Bennett, (1995). The management
of negative deviant behavior in the workplace is of growing concern in organizations
globally since such behaviors can be detrimental to their financial well-being. Whether
the negative deviance is explicit or subconscious, whether it involves sexual harassment,
vandalism, rumorspreading, and corporate sabotage or otherwise,
unauthorized organizational behavior has negative consequences for the entity.
Negative deviant behaviors include employee delinquencies such as not following the
manager's instructions, intentionally slowing down the work cycle, arriving late,
committing petty theft as well as not treating co-workers with respect and/or acting
rudely with co-workers Galperin, (2002). It is important to note the difference between
46
unethical behavior and negative deviant behavior because while the former deals with the
breaking of societal rules, the latter focuses on violation of significant organizational
norms. Spreitzer and Sonenshein, (2004). Spreitzer and Sonenshein (2004) contend that
the research on deviance in the workplace overlooks how establishments and their
affiliates exhibit positive sets of behaviors not merely negative ones. The literature
on positive deviance is almost exclusively zeroed in on the negative aspects of workplace
deviance. For example, Sagarin (1975) arrived at 40 different definitions of deviance and
only two are nonnegative. Dodge (1985) broadened the discipline of organizational
behavior by coining the term positive deviance, but was antagonized by scholars such as
Sagarin (1975) who argued against the validity of the term. In order to shed
light on positive deviance in this article, a definition of the term is proposed, and different
types of positive deviant behaviors will be examined. Positive deviance is defined as
"intentional behaviors that depart from the norms of a referent group in honorable ways"
Spreitzer and Sonenshein, (2003). In other words, positive deviant behavior must be
praiseworthy and must focus on actions with honorable intentions, irrespective of the
outcomes Spreitzer and Sonenshein, (2003). Positive deviant behaviors may
comprise behaviors that organizations do not authorize, but help the organization
reach its financial and economic goals. Thus, positive deviant behaviors may
include behaviors such as innovative behaviors, noncompliance with dysfunctional
directives, and criticizing incompetent superiors (Galperin, (2002). The growing interest
in the study of positive workplace behaviors can be attributed at least in part to the
increasing awareness of positive organizational scholarship (POS). POS focuses on the
"dynamics that lead to developing human strength, producing resilience and restoration,
fostering vitality, and cultivating extraordinary individuals, units and organizations"
Cameron et al., 2005).
Positive organizational scholarship is based on the idea that comprehending to the ways
to "enable human excellence in organizations will unlock potential, reveal possibilities,
and facilitate a more positive course of human and organizational welfare" Cameron et
al. , (2005). The impetus for the growing interest in deviant behavior is the increasing
47
prevalence of this type of behavior in the workplace and the enormous costs associated
with such behavior Peterson,(2002).
The financial impact alone of workplace deviance on the US economy, for example, is a
substantial one. This is due to the fact that three out of every four employees reported
having stolen at least once from their employers. Furthermore, incidences of negative
workplace deviance are now soaring out of control, with nearly 95 percent of all
companies reporting some deviance-related experience within their respective
organizations Henleet al. , (2005). Up to 75 percent of employees have engaged in one
form or another of the following deviant behaviors: theft, computer fraud, embezzlement,
vandalism, sabotage or absenteeism Robinson and Bennett, (1995). The
estimated impact of widespread employee theft has been reported to be $50 billion
annually on the US economy Henle et al. , (2005). Other researchers estimate this
number in the range anywhere from $6 to $200 billion annually Robinson and Bennett,
1995). Moreover, victims of interpersonal workplace deviance are more likely to suffer
from stress-related problems and show a relatively decreased productivity, lost work time
and a relatively high turnover rate Henle et al., (2005). Thus, there is great incentive,
financial and otherwise, for organizations to prevent and discourage any negative
workplace deviance within their walls. Research has focused on negative behaviors that
may be considered deviant such as absenteeism, withdrawal, withholding effort,
and behaviors that lead to corporate inequality (Robinson and Bennett, (1995). Most of
the studies on negative deviant workplace behavior prior to 1995 were mostly concerned
with isolated attempts to answer specific questions about specific deviant acts such as
theft, sexual harassment and unethical decision making.
Robinson and Bennett (1995) integrated the various deviant workplace behaviors into a
single framework in order to gather the increasingly scattered research available on the
subject into one comprehensive chart. In this way, the researchers were able to integrate
numerous deviant workplace behaviors into a single framework. According to Robinson
48
and Bennett's (1995) typology of workplace deviance, deviant behavior varies along two
dimensions, minor versus serious and interpersonal.
"Organizational deviance" is a grouping of behaviors between the individual and the

organization that involves such things as theft, sabotage, lateness, or putting little effort
into work Robinson and Bennett, (1995). On the other hand, "interpersonal deviance" is
a behavior displayed between individuals in the workplace and involves behaviors such
as: belittling others, playing pranks on others, acting rudely, arguing, and physical
aggression Henle et al. , (2005).
The first dimension of Robinson's typology is the organizational-interpersonal dimension.

The axis ranges from deviance directed towards individuals to deviance directed towards
the organization. The second dimension of Robinson and Bennet's (1995) typology shows
the severity of workplace deviance ranging from minor to serious. The results of their
research yielded a two-dimensional chart which organizes deviant workplace behaviour
into four quadrants labeled: production deviance, property deviance, political deviance,
and personal aggression Robinson and Bennett, 1995). Robinson and Bennett's (1995)
typology of workplace deviance can be used to classify deviant behavior according
to organizational climate. Researchers have determined that the ethical climate of an
organization is a good predictor of unethical behavior Robinson and Bennett, (1995). The
ethical climate of an organization refers to the shared perceptions of what is ethically
correct behavior and how ethical issues should be handled in the organization Peterson,
2002).
The factors that influence the ethical climate of an organization include personal self-
interest, company profit, operating efficiency, team interests, friendships, social
responsibility, personal morality, and rules, laws and professional codes (Peterson,
(2002). Peterson (2002) performed correlation studies between different kinds of
deviance exhibited with the types of climates in the organization. The clearest
relationship linked political deviance with a caring climate (Political deviance is
49
classified as a minor form of deviance, for example, "favoritism, gossiping, and blaming
co-workers" Peterson, 2002). When the organizational climate is one that fosters the
sense in its employees that the organization cares about their welfare, then employees are
less likely to engage in politically deviant behaviors Peterson,(2002).
Another correlation was between property deviance and the climates of rules and
professionalism. In this case, organizations that uphold high adherence to company
policies are at the lowest risk for property deviance. Predictors of production deviance
top left quadrant) were most strongly correlated to instrumental climates within
organizations. Organizations in which individuals protect their self-interests are most
likely to put up with such deviance. The final category, personal aggression bottom right
quadrant) was not correlated with any organizational climate and is thus most strongly
related to the personality of the individual committing the deviant act Appelbaum et al. ,
2005). It is equally important to examine the workplace behavior spectrum and
investigate how positive deviance may or may not be classified as a pro-social type
of behavior.
The pro-social types of behaviours that are examined are organizational behaviors,
whistle-blowing, corporate social responsibility and creativity/innovation Spreitzer and
Sonenshein. All of these pro-social types of behaviors may indeed be classified as
positive deviant behaviors only if the behavior diverges from organizational norms,
the behavior is voluntary, and its intent is an honorable one Spreitzer and Sonenshein.
Spreitzer and Sonenshein's. While whistle-blowing may be perceived as negative deviant
workplace behavior, it may also be characterized as a positive. In effect, this perception is
highly dependant on the circumstances surrounding the disclosure of
the organizational offence by the employee in questi. Near and Miceli define whistle
blowing as "disclosure of illegal, immoral, or illegitimate practices under the control of
their employers, to a person or organizations that may be able to effect action". The first
to be aware of "any unethical, immoral or downright illegal" Anonymous,
(2003) organizational activities are most often employees, however they also the most
50
likely to make an objection the last, "fearing the loss of their job, their friends or their
potential for promotion. Lack of remedial action and concern that their objections will not
be kept private are the main reasons why employees decide not to speak out against
corporate wrong-doings Verschoor. However, whistle-blowers may act out of a sense of
personal ethics or sense of duty regardless of the opposing "organizational and situational
pressures" Vinten. For example, if an employee knows that the organization in which
she/he works is involved in illegal practices, disclosing this information voluntarily to
third-parties would be considered positive deviance Spreitzer and Sonenshein. In this
case, the behavior is considered an act of positive deviance because it goes outside the
constructs of the organizational norms, it is intentional, and the goal of the whistle-
blower is honourable Spreitzer and Sonenshein. But not all whistle-blowing is an
example of positive deviance. For example, some whistle-blowers may want to exact
revenge on an employer, or they may want to reap financial gain for
exposing organizational fraud Spreitzer and Sonenshein.
In this way, whistle-blowing may be regarded as an act of positive deviance in some

circumstances, while in other it is plainly not. Another group of pro-social behaviors that
differ from what is classically thought to be positively deviant behavior are
called organizational behaviors (OBs). that is defined as behavior outside the
requirements demanded of a person at a specific firm, but that will encourage efficient
running of the organization. While OBs are intended to enhance the performance of an
organization, positive deviance may or may not fulfill such a goal Spreitzer and
Sonenshein. Today's organizations are increasingly being held accountable for
contributing positively to the communities in which they live and engaging in socially
responsible actions. This organizational behavior has historically been known as
corporate social responsibility (CSR). Some of the CSR activities that companies carry
out include: environmentally friendly manufacturing processes, human rights programs,
and donations to charities Spreitzer and Sonenshein, . An important distinguishing feature
of CSR and positive deviance is that CSR activities may or may not conform
to organizational norms, but positive deviance requires a departure from organizational or
business norms Spreitzer and Sonenshein. The fourth type of pro-social behavior is
51
innovation. Innovation may enhance, and in some cases, hinder corporate performance
and productivity. Innovation is defined as "the successful implementation of creative
ideas within an organization" (Amabile et al. The literature on innovation suggests that
by its very nature, innovation requires, at least in part, a departure from
the organizational accepted norms .Galperin. This is because innovative thinking involves
the creation and development of new ideas that are not held by the majority Galperin,.
Thus, employees who display behaviors that are innovative can be considered positive
deviants. On the other hand, while creativity and innovation in the workplace may lead to
advancements in business practices, a great many of such behaviors do not fall within the
constructs of positive deviance Spreitzer and Sonenshein.
Taking the example from Spreitzer and Sonenshein of a computer hacker illustrates this
idea clearly. While the computer hacker may very well be creative and innovative in
creating new virus-spreading software it is not an act of positive deviance Spreitzer and
Sonenshein, (2004). This is because while they may be departing from the norms of the
organization in an innovative fashion, they are behaving in a way that is not considered
honorable. While there are a number of reasons why individuals may engage in
deviant behavior in the workplace the major one is that the organization in which they
work supports or encourages such behavior Sims,. While society values persons who are
honest and that are not deceitful, some organizations however depend on employees that
are dishonest and deceitful in order to be successful Sims,. These types of organizations
have been termed toxic and are characterized by a history of poor performance, poor
decision-making, very high levels of employee dissatisfaction and employee stress well
beyond normal workload issues Coccia,. Toxic organizations will develop under certain
circumstances. The first condition is for a relatively small work unit with a high level of
face-to-face interaction that stimulates interpersonal relationships Sims,. Under these
conditions, the "sick organization" will develop with a high interdependence of its
employees who have personal agendas that do not match with the needs of the
organization Sims.
52
The second condition for the development of a toxic organization is an ineffective
manager that is immoral or mentally unsound Sims. In light of this, organizations may be
viewed as falling on a continuum ranging from organizations that function well to toxic
organizations that are destructive to its employees and leaders Sims,. One postulate for
why toxic organizations encourage workers to engage in counter norms behavior has
been referred to as "bottom-line mentality" Appelbaum et al.. Sims explains this type of
mentality as encouraging unethical practices in order to reap financial gains. Individuals
who practice bottom-line mentality view workplace ethics as an obstacle to their main
goal of profit Appelbaum et al, . Another factor that causes individuals to engage in acts
of negative deviance in the workplace is the influence of deviant role models
Appelbaum et al..
Social learning theory proposes that deviant role models in an organization or in any
group in general, will influence others in the group to commit acts of deviance as well
Appelbaum et al. (2005). It is important to stress the influence of groups in the
workplace when assessing the effects of deviant behavior within organizational structure.
Aggressors (within the group) have lasting effects on emotional and organizational
outcomes due to the close proximity the aggressor may share with the victim. Research
suggests that deviant role models within a group setting will significantly influence others
within the group Appelbaum et al. Furthermore, organizational stressors have also have
been shown to lead to deviance. Studies suggest that all stressors, save for workload, had
a direct relationship with aggressive acts, theft and the wanting to quit Appelbaum et al.
Appelbaum et al. suggested that operational environment is a good predictor

of employees engaging in negative deviant workplace behavior. The research suggested
that it is the workplace environment characteristics rather than individual personality
characteristics that are a good predictor of workplace violence, an extreme form of
deviance. Studies have shown that employee violence can be assessed simply on job
characteristics such as the employee's contact with the public, working with firearms,
carrying out security functions, serving alcohol, supervising others, disciplining others
53
etc. Appelbaum et al In this light, it is important to realize that even though an individual
may uphold the highest moral standards, the type of organization one works for exerts a
strong influence on their members and may predispose them to engage in
deviant behavior. Another view that has gained recognition as a reliable predictor of
workplace deviance is called situation-based behavior, and it proposes that certain
conditions of the organizational environment predispose employees to deviance Henle,
(2005). Organizational factors that may contribute to employee deviance include "job
stressors, organizational frustration, lack of control over the work environment, weak
sanctions for rule violations and organizational changes such as downsizing" Henle,
(2005). Thus, situation-based deviance proposes that employees will perpetrate deviant
acts depending on the workplace environment, irrespective of their personal
characteristics Henle, (2005). Another perspective that is used as a predictor of workplace
deviance is called person-based perspective, and postulates that an individual's
personality, not the environment he is in, dictates his behavior Henle et al. In this view,
persons with a predisposition to deviance will likely be risk-takers, have a Type A
personality and negative affectivity Henle et al. Traditionally, situation-based and person-
based predictors of employee deviance were considered mutually exclusive. Today,
cognitive social theorists believe that there is a strong interaction between the person-
based and situation-based types of deviance. This is because personality is contextual and
it modifies how individuals interpret and thus respond to particular situations Henle,
(2005). Organizational behavior literature shows that there is a greater likelihood
that employees with engage in positive deviant behaviors once they are psychologically
empowered in the working environment Spreitzer and Doneson.
Spreitzer and Doneson states that "it is clear that psychological empowerment is likely to
be a key enabler of positive deviance".Here is the question, "what does it take for people
to be positively deviant?" Spreitzer and Doneson argues that an empowered mindset is
critical. Empowerment "enables employees to participate in decision making, helping
them to break out of stagnant mindsets to take a risk and try something new" Spreitzer
and Doneson,.
54
Organizational behavior researchers point out that, "the pervasive influence of norms
provides a means of control over what people say and do" Spreitzer and Doneson, .
"Positive deviance requires real risk, and it requires departing from norms in a positive
way - often making others uncomfortable" Spreitzer and Doneson, . In other words, when
companies enable their employees to be empowered the employees are more likely to
engage in risk-taking behaviors that depart positively from the norms of the organization
in a way that is beneficial to the organization. And, companies making
their employees empowered have led to much financial and psychological gain:
"supervisors who reported higher levels of empowerment were seen by their subordinates
as more innovative, upward influencing and inspirational" Spreitzer and Doneson,
(2005). Causes of deviant behavior have been studied on many different levels. To begin
with, it appears that on the individual level, deviant behavior cannot be attributed to
personality traits alone. As previously mentioned, it is more likely that
deviant behavior may be best predicted based on a combination of personality variables
and the nature of the workplace situation Peterson,. In addition to personality variables
and the workplace situation, other key factors in determining the likelihood of
deviant behavior within organizations include: unfair treatment, organizational culture
and climate, as well as supervisory behavior Caruana,. A strong relationship between
frustration and workplace aggression and/or deviant behavior was elucidated by
Robinson and Bennett . The psychological state of frustration was predicted in their study
to be associated with various forms of interpersonal deviance (i.e. spreading rumours or
acts of aggression) as well as organizational deviance (i.e. vandalism, theft and sabotage).
Results of their experimentation however brought light to the fact that frustration was not
in fact correlated with organizational deviance, and was simply associated (albeit
significantly) to interpersonal deviance Robinson and Bennett,.
Machiavellianism is another trait thought to be linked to the likelihood of deviant

behaviour within individuals and groups. It refers to a person's strategy in dealing with
co-workers by seeking to manipulate others into completing extraneous tasks within the
workplace Robinson and Bennett,. Such manipulation can often proceed to fall into
unethical practices for the overall financial benefit of the firm, while sacrificing moral
55
norms. According to a study by Robinson and Bennett , such a scale of Machiavellianism
was related to both interpersonal and organizational deviance. Bolin and Heatherly argue
that there are four major origins of deviant workplace behavior. It is believed that theft
approval, intent to quit, dissatisfaction with the organization as well as company
contempt are all symptomatic of workplace deviance. Symptoms manifested include
substance abuse, absenteeism, abuse of employment privileges and theft Bolin and
Heatherly,.
Although workplace deviance is most often destructive in nature, it may have a positive
aspect to it. For example, it may provide such things as a safety valve, it allows
workgroups to know of each others common interests, and could provide warning signals
to organizations. Different types of workplace deviance have a variety of consequences.
For example, interpersonal deviance can actually increase employee cohesion by building
interpersonal bonds, while organizational deviance can warn the company of impending
problems so that solutions can be devised Robinson and Bennett,. But where are the
leaders in all this deviance? Several studies have concluded that the basis of continuing
unethical behavior in the workplace is most likely linked to the lack of moral leadership
in an organization. The former CEO of WorldCom, Bernie Ebbers, was once affirmed as
a great leader for helping develop the company into a telecommunications superpower.
Ebbers' reputation was later destroyed, after failing to provide moral leadership during
WorldCom's publicly drawn financial scandals, which regrettably lead to one of the
biggest bankruptcy filings in US history Trevino and Brown. While his managerial skills
obtained great success for the company, Ebbers' lack of moral leadership led
to its ultimate demise. Leaders who engage in unethical practices often create an
atmosphere of allowance within the organization that is conducive to deviant employee
behavior that parallels that of the leader Trevino and Brown,. Employees will observe
the ethical judgment of their CEO or managing director and are often likely to imitate,
even if such imitation constitutes acting unethically. Oftentimes, whether or not a leader
is rewarded for his or her behaviour will also help determine the likelihood of employee
imitation. If we consider WorldCom's Bernie Ebbers, as well as Enron's Ken Lay, we
discover that their successes within those organizations were often acclaimed by
56
numerous financial analysts. They were deemed outstanding executive leaders who went
against the conventional beliefs of the financial world, often surpassing short-term
expectations Trevino and Brown,. Eventually, their successes instilled motivation within
the lower ranks of both firms, who would go to even greater unethical lengths to play a
role in their respective companies' outcomes Trevino and Brown.
This ultimate outcome of profit became the major goal for lower ranking officers of the
company (regardless of how unethical the means to get to it were) and would remain so
until each entity eventually defaulted Trevino and Brown, (2005). In addition to
leadership factors, research in organizational behavior demonstrates that employees
develop distinct judgments about the supportiveness of their employer as a whole and
that these judgments have significant effects on their performance (Settoon, Bennett, and
Liden (1996). One such judgment is perceived organizational support (POS), defined as
employees' "global beliefs concerning the extent to which the organization values their
contributions and cares about their well-being" (Eisenberger et al. (1986,). POS
perceptions are driven by numerous factors but are largely influenced by organizations'
human resource management (HRM) policies and practices (Allen, Shore, and Griffeth .
In recent years, more healthcare organizations have implemented HRM practices that
promote employee wellbeing, reasoning that such investments improve firm performance
For example, one hospital helps employees balance work-life demands by organizing
employee outings to amusement parks and athletic events and providing valet parking for
staff members in their third trimester of pregnancy. Other employers offer educational
assistance programs, with some providing up to $2,500 per year for tuition
reimbursement as well as loans of up to $15,000 [Modern Healthcare 2008a). These
examples demonstrate that employee support programs have become increasingly
common.
Punishment often has the immediate effect of correcting poor employee habits, but also
the long-term effects on the employees behavior typically outweigh the short-term
57
benefit. Although punishing the employee shows him the behavior is not acceptable, the
way the punishment is delivered could affect his behavior on the job and has the potential
to damage the business.
Punishment does not necessarily lead to outright hostility from an employee, but he might
act in ways aimed at harming the business in retaliation for the punishment, especially if
frequently used. A punished employee who is angry can stall business goals by doing the
least amount of work required to keep his job or by failing to point out obvious problems
with directions from management. An employer will not see the full work potential of an
employee who is angry or frustrated by punishment and views management as the enemy.
A punished employee sometimes resorts to hiding the offending behavior and even
concealing other behaviors or knowledge because of fear of further punishment. Anxiety
because of fear damages her motivation, morale and sometimes her ability to do her job.
For example, an employee who is punished for lateness might start sneaking in or trying
to otherwise hide her late arrival, creating a stressful shift start and affecting her work for
the day.
An employer cannot force ideas and innovations from employees, but positive work
behaviors encourage new ways of thought. However, punishment discourages employees
and hampers efforts to create or maintain a creative work environment. An employee who
is subject to punishments often sees no reason to go above and beyond routine duties for
various personal reasons, including anger at the way he is treated and the belief his work
contributions do not matter to the employer or management. He might not focus on work
goals if he is preoccupied with avoiding further disciplinary action.
Employees who feel a frequent threat of punishment often pull apart instead of staying
together to avoid standing out and becoming a target. Teamwork becomes nonexistent, as
the employees become reluctant to help each other and expose themselves to
management. Not only does this isolation harm morale, but overall production and
58
creativity suffers, and interpersonal problems may develop among the employees because
of the situation.
Companies rely on employees to produce and deliver high-quality products and services.
Employees are impacted by a variety of forces both internal and external as they attempt
to perform their job duties. Employers who are aware of these forces, and who are
prepared to leverage or counteract them, can increase productivity and loyalty.
A critical internal force that influences employee behavior is the actions of colleagues.
According to Entrepreneur.com, "creating an atmosphere of sharing and helping" was at
the top of the list during a roundtable brainstorming session at the Metro Atlanta
Chamber of Commerce when clients were asked to identify the primary forces that
improve effective customer service. Companies that can effectively build an internal
culture that is based on mutual respect, teamwork and support will notice increased
productivity and a sharper focus on service to customers.
Technology is a significant factor that can have both positive and disruptive influences on
employee behavior. While technology can often help streamline processes and make
work easier for employees, learning how to use new technology while remaining
productive can be stressful. Factor in the rapid advent of technology, in general, and
employers seem to be faced with an almost ongoing need for new training, process
improvement and documentation.Customer demands can be an external force that exerts
pressure on organizations to continually stay ahead of the competitive curve. Lin
Grensing-Pophal, a marketing consultant and author of "Marketing With the End in
Mind," suggests that companies must always monitor the external environment to be alert
to changes that can impact their operationsand their very existence. Employees must
adapt to the changing needs of customers, the growing savvy of customers and the
heightened expectations of customers, says Grensing-Pophal.
59
Employees are influenced by both internal and external forces, but the impact of these
forces depends a great deal on their own levels of internal and external locus of control,
says Al Siebert, Ph.D., author of "The Resiliency Advantage," at ResiliencyCenter.com.
Those who have an external locus of control are looking for people to tell them what to
do. These are the employees who need a great deal of direction and expect managers to
give clear and detailed feedback at all times. Those with an internal locus of control feel
empowered to make decisions and act on their own---they feel in control of their destiny
rather than at the mercy of external factors. These employees may sometimes act too
independently and are not as concerned about the opinions or expectations of others.
Companies are wise to anticipate and plan for both internal and external changes, say the
experts. According to a Medscape article on the impact of change on health-care
organizations, "a thorough and ongoing assessment of external and internal factors
exerting an influence on the organization is expected of senior leadership to define a
proactive plan of action in anticipation of strategic threats." By remaining aware of how
these internal and external factors could impact employees, organizations, their HR
departments and managers can be prepared to respond to changing employee behavior.
Negative behavior could be dictated by feelings of anger, confusion and depression.
MAHARASHTRAS PHARMACEUTICALS INDUSTRY
Maharashtra has Highest number of total number of manufacturers of pharmaceutical

units in India (29.7%). Maharashtra leads in Pharmaceutical exports with a share of 38%
in 2008-09. Major pharma clusters are Pune,Nashik, Aurangabad and Mumbai.
Maharashtra is a Leading producer of vaccines. Major pharmaceutical units such as
Pfizer, Johnson & Johnson,GlaxoSmithKline, Abbott, SunPharmaceutical Industries have
their presence in the state. Maharashtras strong position is displayed with around 3,139
manufacturing licensees. Maharashtra has strongly emerged as the top destination in
India for pharmaceutical sector, with a strong presence across the value chain.
60
Advantage Maharashtra
Highest FDI in the Country
SingleWindow Clearance Mechanism
Investor Facilitation Cell
Highest contribution to Indias GDP
Strong presence across value chain
Presence of all top pharmaceutical players
Indias financial hub
Abundant Land Bank
Strong Infrastructure
Worldwide Connectivity (Ports,Airports)
Abundant Natural Resources
Skilled Manpower and premiere R&D Centers
High product development capabilities
Availability of skilled manpower, R&D centers and training institutes
Large and growing domestic market
Large base of APIs and bulk manufacturing units
Proximity to international market
Noteworthy export potential, and high quality standards
Maharashtra has a strong skilled labor base supporting the pharmaceutical industry. The
state offers a strong educational infrastructure with technical institutions providing
pharmaceutical courses across the state. Maharashtra is a major center for both
production as well as exports of basic drugs and pharmaceuticals in the country. The state
accounts for about 40 percent of all India production of bulk drugs and formulations and
its share in all India exports of it, is nearly 33 percent. According to the business
executives in pharmaceutical industry in Maharashtra, their exports may not receive a
setback on account of Intellectual Property Rights (IPR) but instead of the same will have
better growth, as 75 percent of the drugs will be off the patent in value. New molecules
can be manufactured competitively because of availability of relatively low cost technical
61
manpower in the country. It envisages a scenario where the West will come to East to
buy the new molecules.
Maharashtra and Gujarat will continue to dominate this industry with more than half the
nations output and value addition. The Maharashtra Government has taken the right
steps by introducing stringent pollution control laws. The Indian Pharmaceutical
Industry today is in the front rank of Indias science-based industries with wide ranging
capabilities in the complex field of drug manufacture and technology. Indian
Pharmaceutical Industry in Pune and Nasik As compared to the entire Maharashtra
Pharmaceutical Companies in Nasik are less and in Pune there are Small Scale Industries
(SSI) as well as Medium Scale Industries (MED) companies.
62
CHAPTER 2
REVIEW OF LITERATURE
63
CHAPTER 2
REVIEW OF LITERATURE
This chapter includes the following literature: a review of organizational behavior,

employees behaviour studies, Impact of organizational behaviour on employees
behaviour.
Organizational behaviour Studies
Honingh, M., and Oort, F. (2009) compared teachers' organisational behaviour in

publicly- and privately-funded schools in the Dutch Vocational Education and Training
(VET) in publicly and privately funded schools (72 per cent and 43 per cent
respectively) herein distributed self-report questionnaires were distributed to teachers
measuring teachers' attitudes, sense of identification and perception of the school climate.
The analyses show that teachers in publicly funded schools report a less curriculum-
oriented attitude, a lower sense of identification, and perceive a less supportive school
climate than teachers in privately funded schools. Funding did not have an effect on the
extent to which teachers have a student-oriented attitude. In addition, the analyses show
significant effects of teacher characteristics, the disciplinary sector, and affiliation
characteristics on teachers' organisational behaviour. This study clearly indicates
differences in teachers' organisational behaviour in publicly and privately funded schools.
Contrary to common beliefs, the institutional context hardly influences the extent to
which teachers have a student-oriented attitude. Originality/value This research
contributes to insights in behavioural aspects of the fading boundary between the public
and private sector.
K. Aswathappa; and (2002) studied human behaviour, attitudes and performance in

organizations providing value added knowledge for individuals at all organizational
levels. He further elaborated that Organizational behaviour can be regrarded as a
systematic attempt to undertstand the behaviour of people in organization which they are
64
an integral part. Organizational behaviour like organizational thoery, for this purpose,
draws upon various other disciplines like psychology, sociology, anthropology, political
science, economics and so on. The field of OB is both exciting and complex. OB has
emerged as a distinct field of study. It is a distinct area of expertise with a common body
of knowledge. OB is also an applied field. It applies the knowledge gained about
individual groups and the effect of structure on behaviour in order to make organizations
work more effectively. It represents only the behavioural approach to management.
Hashim, Junaidah; Saodah Wok; Ghazali, and Ruziah (2008) examined organisational
behaviour as a result of emotional contagion experienced by selected members in direct
selling companies. Specifically, the study seeks to investigate how members in a group
are affected by the happiness of their high achievers, what factors influence the emotional
contagion to occur, and what are the effects of emotional contagion on individual, group
and organisation work outcomes. The variables studied were emotional contagion,
personal characteristics, group outcomes and organizational outcomes. Emotional
contagion was measured by self-report of impulsive acts; while personal characteristics
were measured in terms of social desirability, extraversion, locus of control, live
accomplishment, materialistic world, susceptibility to interpersonal influence, and self-
esteem. Organisational outcome variables were measured in terms of organizational
commitment and organizational culture. Other variables studied were group behaviour,
team player, demographic characteristics, and business organizational characteristics. It
is found that emotional contagion is positively related with personal outcomes. Further
findings reveal that emotional contagion has an impact on both the group and the team.
The team, as a whole, is influenced not only by the emotional contagion but also by the
personal characteristics of the respondents. Emotional contagion is also related
to organisational outcomes. Both the group characteristics are positively related
with organisational commitment. Emotional contagion is also positively related
to organisational culture. Group characteristics are also positively related with
organisational culture. It can be postulated that the following relationships exist between
emotional contagion, personal outcomes, group outcomes, and organisational outcomes.
65
It is also found that emotional contagion is a very important variable in the light of
personal characteristics, group characteristics and organisational characteristics.
Hanna, V; Burns, N DBackhouse, and C J (2000) Described a charting technique that

can help a company determine if the different variables in the workplace are combining
to produce an environment that encourages positive workplace behavior. The chart
enables business managers to identify whether the organisational goals, performance
measures and reward system, together with task and situation variables are all congruent
or mutually reinforcing. The research is still at an exploratory stage and practical testing
is continuing to examine the effectiveness of the chart. Some early case-study
investigations inside a manufacturing company are presented together with a synopsis of
how the research will develop now the pilot study is complete. The author describe early
results from research into the effect of organizational variables upon workplace behavior.
In particular, they discuss what influence organization and situational variables have on
performance. In organizations, groups of people are often seen behaving in rather similar
ways.
Honingh, M E Oort, and F J compared teachers' organisational behaviour in publicly-

and privately-funded schools in the Dutch Vocational Education and Training (VET)
sector. A percentage of all middle managers in publicly and privately funded schools (72
per cent and 43 per cent respectively) distributed self-report questionnaires to their
teachers measuring teachers' attitudes, sense of identification and perception of the school
climate. Data were analysed through multilevel analysis accounting for the dependency
of teachers working within the same teaching unit. Findings - The analyses show that
teachers in publicly funded schools report a less curriculum-oriented attitude, a lower
sense of identification, and perceive a less supportive school climate than teachers in
privately funded schools. Funding did not have an effect on the extent to which teachers
have a student-oriented attitude. In addition, the analyses show significant effects of
teacher characteristics, the disciplinary sector, and affiliation characteristics on teachers'
organisational behaviour. Research limitations/implications - The study clearly indicates
differences in teachers' organisational behaviour in publicly and privately funded schools.
66
Contrary to common beliefs, the institutional context hardly influences the extent to
which teachers have a student-oriented attitude. The study contributes to insights in
behavioural aspects of the fading boundary between the public and private sector.
Beatson, Amanda, Lings, Ian, Gudergan, and Siegfried P (2008) provided conceptual
and empirical insights elucidating how organisational practices influence service staff
attitudes and behaviours and how the latter set affects organisational performance drivers.
Analyses suggest that service organisations can enhance their performance by putting in
place strategies and practices that strengthen the service-oriented behaviours of their
employees and reduce their intentions to leave the organisation. Improved performance is
accomplished through both delivery of high quality services (enhancing organizational
effectiveness) and the maintenance of front-line staff (increasing organizational
efficiency). Specifically, service-oriented business strategies in the form
of organisational-level service orientation and practices in the form of training directly
influence the manifest service-oriented behaviours of staff. Training also indirectly
affects the intention of front-line staff to leave the organisation; it increases job
satisfaction, which, in turn has an impact on affective commitment. Both affective and
instrumental commitment were hypothesised to reduce the intentions of front-line staff to
leave the organisation, however only affective commitment had a significant effect.
Vakola, Maria; Bouradas, and Dimitris. (2005). aimed at investigating the dimensions of
silence climate as they are perceived by individuals and exploring the effects of these
dimensions on job attitudes. In a sample three dimensions of silence climate are
constructed and measured in order to examine their effects on employee
silence behaviour, organisational commitment and job satisfaction. Results indicate that
supervisors' attitudes to silence, top management attitudes to silence and communication
opportunities are associated and predict employees' silence behaviour. These three
dimensions are also associated with organisational commitment and job satisfaction.
Although the phenomenon of organizational silence is expected in organisations, there is
little empirical evidence in the literature aimed at defining it, analysing it and coping with
it. Silence climate has an impact on organizations' ability to detect errors and learn and,
67
therefore, organizational effectiveness is negatively affected. This exploratory study aims
to measure organisational silence as a continuum between silence and voice explain
silence behaviour throughorganisational climate dimensions. Based on the findings of
this study, there are some important implications that are discussed.
Koh, Hian Chye; and El'fred H Y Boo. (2004). examined the relationship
between organisational ethics and organisational outcomes based on the justice theory
and cognitive dissonance theory. The sample data are derived from a questionnaire
survey of 237 managers. Results obtained from decision trees indicate significant and
positive links between ethical culture constructs (i.e. top management support for
ethical behaviour and the association between ethical behaviour and career success within
the organisation) and job satisfaction. Further, there is a significant and positive link
between job satisfaction and organisational commitment. Also, for different levels of job
satisfaction, particular aspects of organizational ethics are associated with organizational
commitment. The results suggest that organisational leaders can use organisational ethics
as a means to generate favourable organisational outcomes.
Okurame, David E (2009) examined work attitudes in the public health sector using the
relative impact of mentoring and organisational constraints on job satisfaction
and organisational commitment. Data was collected from 161 employees in a large
government-owned hospital in south western Nigeria. Results of the hierarchical
regression analysis (which controlled for the effects of relevant covariates) showed that
when informal mentoring and perceived organisational constraints were entered in the
second step, for organisational commitment and job satisfaction increased from .17 to .45
(p = < .001), and from .15 to .49 (p = < .001), respectively. These findings suggest that
work attitudes in the public health sector can be improved by facilitating mentoring
relationships and removing organisational obstacles. The implications of these findings
for policy formulation and effective health care delivery are explained.
Lok, Peter; Crawford, John (2004) examined the effects of organisational culture and
leadership styles on job satisfaction and organisational commitment in samples of Hong
68
Kong and Australian managers. Statistically significant differences between the two
samples were found for measures of innovative and supportive organizational cultures,
job satisfaction and organizational commitment, with the Australian sample having
higher mean scores on all these variables. However, differences between the two samples
for job satisfaction and commitment were removed after statistically controlling
for organizational culture, leadership and respondents' demographic characteristics. For
the combined samples, innovative and supportive cultures, and a consideration leadership
style, had positive effects on both job satisfaction and commitment, with the effects of an
innovative culture on satisfaction and commitment, and the effect of a consideration
leadership style on commitment, being stronger in the Australian sample. Also, an
"initiating Structure" leadership style had a negative effect on job satisfaction for the
combined sample. Participants' level of education was found to have a slight negative
effect on satisfaction, and a slight positive effect on commitment. National culture was
found to moderate the effect of respondents' age on satisfaction, with the effect being
more positive amongst Hong Kong managers.
Barnett, Belinda Renee; Bradley, and Lisa (2007) examined the relationship
between organisational support for career development (OSCD) and employees' career
satisfaction. Based on an extended model of social cognitive career theory (SCCT) and an
integrative model of proactive behaviours, the study proposed that career management
bhaviours would mediate the relationaship between OSCD and career satisfaction, and
between proactive personality and career satisfaction. Public and private sector
employees (N=90) participating in career development activities completed a survey
regarding their proactivity, OSCD, career management behaviours and career
satisfaction. OSCD, proactive personality and career management behaviours were all
positively related to career satisfaction and career management behaviours mediated the
relationship between proactive personality and career satisfaction. There was no support
for the career management behaviours mediating between OSCD and career satisfaction.
This study provided support for the extended SCCT model by testing a subset of its
proposed relationships using a cross-sectional approach. The sample surveyed
(employees participating in career development activities) and the large proportion of
69
full-time employees, may limit the generalisability of the findings. The results suggest
that there are benefits for organisations and individuals investing in career development.
First, from an organisational perspective, investing in OSCD may enhance employees'
career satisfaction. Second, employees may enhance their own career satisfaction by
participating in career management behaviours.
Rao, Surabhi; Mrozowski, Tim (2008) examined burnout factors derived from the
literature on organizational behavior including role stress, role of interpersonal relations,
incentives, and lack of motivation in the context of project closeout. Data obtained from
interviews of contractors, subcontractors, and owners during the MSU (Michigan State
University) study was analyzed using "Grounded Theory" to understand causes for slow
closeout and to determine behavioral factors that impact closeout by comparing the
literature to the data. Recommendations were developed for midsize contracting and
subcontracting organizations by comparing the strategies suggested in the interviews with
motivation theory in organizational behavior literature. Recommendations were validated
through proof of concept interviews which indicated that organizational behavior has an
impact on closeout and that problems that arise during closeout can be prevented by
stressing the importance of the recommendations relating to role conflict and role
ambiguity.
Schepens, Dona; Underwood, Anita. (2007) assessed organizational culture by

investigating to what extent Core Value Behavior (CVB) is consistently practiced by
individual employees and by the college system as a whole. A Values Framework Model
provided a systems approach to studying the organization as a living dynamic, changing
and interactive environment and to measure the target behaviors used in the survey.
The study confirmed the cultural strength of the organization as evidenced by the practice
of core value behaviors. A recommendation for college administration is to define and
describe CVB for every job classification, department, and academic program to close
gaps in alignment with the core values, eliminate confusion and inconsistencies, and
promote unity and understanding of the values expressed in the organizational culture.
70
Prakash, Rajshree (2008) examined the factors that influence professional behavior.
Specifically, it focuses on the role of organizational forms where professionals work and
client relationships. Transcripts of Congressional Hearings related to Enron form the
empirical context. Theoretically the researcher draws upon the research on the sociology
of professions by revisiting the literature on professionals and organizations and
professional-client relationship to suggest that the notion of professional behavior is more
complicated than previously assumed.
Employees behaviour Studies
Aggarwal, Upasana; Bhargava, and Shivganesh (2009). reviewed and synthesised

literature on the role of human resource practices (HRP) in
shaping employee psychological contract (PC). Based on this review, a conceptual
framework for examining the relationship between HRP and PC and their impact
on employee attitudes as well as behaviour has been put forward for further examination.
An extensive review of the literature, examining the role of HRP in influencing PC
of employees, between the periods 1972 to 2007 has been conducted. Adopting the multi-
level approach, the paper discusses the role of individual variable (PC) and organisational
variable (HRP) on employee attitudes and behaviours. The review brings to fore the
following: the role of business and employment relationship strategy on HRP; the
relationship between HRP and organisation culture as well as employees attitudes
and behaviours; the relationship between HRP on and employee's psychological contract;
and the moderating effect of those conceptions on employee attitudes
and behaviours relationship. HRP and PC influence employee attitudes and behaviours as
well as have a bearing on organisational effectiveness. Suggestively, as a policy
implication, firms need to craft and effectively communicate their HR toolkit based on
their employment relationship and business strategies. The main contribution of this
paper is that it synthesises the research examining the impact of HRP on PC. Adopting a
meso theory, the paper integrates both organisational and individual level variables and
proposes a conceptual model.
71
Lambooij, Mattijs; Sanders, Karin; Koster, Ferry; Zwiers, and Marieke. (2006) addressed
the question as to whether the linkage between HRM and organisational performance can
be explained by the effect of the internal and strategic fit of HRM on the
cooperative behaviours of employees. The authors expect that the more HRM practices
are aligned within themselves (internal fit) and the more HRM is aligned with an
organisation's strategy (strategic fit), the better employees know what is expected of
them, and the more they behave cooperatively towards their co-workers and towards their
supervisor. Next, authors hypothesised that the cooperative behaviours of employees are
positively related to the financial and non-financial performance of the organisation.
These hypotheses were tested using multilevel regression (N=723 employees; 10
organisations). Authors found that cooperation with co-workers is negatively related to
turn over and positively related to sick leave. No support was found, however, for the
hypothesis that a better internal and strategic fit leads to more cooperative behaviour on
the part of employees. The implications of these findings for future research and for
human resource management are discussed.
Clark, Malissa; Baltes, Boris B.; Berry, Christopher M.; Partridge, Ty; Keashly,
Loraleigh (2010) aimed to integrate these two themes to test how mood, personality, and
factors relating to one's job influence a person's propensity to engage in acts of CWB
(counterproductive work behavior). This study contributes to the extant literature in
several ways. First, this is one of only a handful of studies that examines the relationship
between momentary moods and counterproductive work behaviors using an experience
sampling methodology. Second, this study includes two personality variables which are
rarely examined in the organizational literatures, affect intensity and dispositional
happiness. Third, this study adds to the current literature on how moods affect
organizational behavior in that the present study examines both the hedonic tone and the
activation dimensions of mood using the circumplex model of moods and emotions as a
guiding framework. The sample consisted of one hundred and fourteen employees and
students at a large Midwestern university. Participants completed short self-report
questionnaires three times daily for two weeks, in addition to an initial demographic
questionnaire. Data were analyzed using hierarchical linear modeling (HLM; Raudenbush
72
& Bryk, 2002). Results revealed that all momentary variables varied both within- and
between-persons. Individual factors (i.e., personality, mood) were more predictive of
CWBs than situational factors (i.e., job demands, work events) in the present study.
Broadly, individuals were less likely to engage in CWBs when they were in positive
moods. There were several unanticipated findings. Notably, individuals in activated
mood states were less likely to engage in acts of counterproductive work behavior, and
individuals in unactivated unpleasant (i.e., bored) mood states were more likely to engage
in acts of counterproductive work behavior. While mood occasionally was related to
subsequent perceptions of work events, more evidence was found that work events
influenced subsequent mood states. In addition, positive work events indirectly decreased
CWBs by increasing activated mood states. Implications of these findings and
suggestions for future research are discussed.
Palmer, Jacquelyn Wright (2006) developed and tested an interactive model of

innovative behavior of frontline employees in the public sector. Three gaps in innovation
research have given rise to this study: the need for contextualization, the need
for studies that include the frontline employee, and the need for studies that examine the
interactions of factors that influence individual level innovative behavior. In the study of
innovation, the notion of context is an under-examined contingency. The context of
interest in this study is the public sector, as it is generally believed that the public sector
differs from the private sector in key ways that may influence the extent of
innovative behavior, including the difference in rewards for innovation available for
public sector employees and the overabundance of rules and procedures that influence an
individual's ability to be adaptable and innovative. Innovation research in the public
sector has been biased toward the organizational level, and individual innovative
behaviour has received minor attention despite the major practical implications of
individual innovative behavior for organization innovation. Even when the individual
level has been addressed in innovation research, frontline employees have often been
overlooked, though they are in a prime position to recognize opportunities for innovation.
Although innovative researchers are increasingly recognizing the merits of an interactive
approach, the innovation literature could profit from more research that examines how
73
factors at multiple levels combine to influence innovative behavior. This study examined
the interaction of factors at the individual and organization level that influence
innovative behavior of frontline employees in the public sector. In contrast to studies in
the private sector, this study did not find a relationship between creative problem solving
style and innovative behavior. The study concludes with a discussion of the contextual
differences in the public sector that may explain this difference.
Sucharski,Ivan; Eisenberger,Robert.(2007)explored the extent to which employees

perceive supervisors as representing the organization in their words and deeds
(supervisor's organizational embodiment: SOE) and how the strength of this belief
affects employees' perceptions of support, affective commitment, and positive
organizational behaviors. It was hypothesized that employees would generalize
perceptions of support and affective commitment from supervisors with high SOE
(supervisor's organizational embodiment) into beliefs regarding support from and
commitment to the organization that would then influence several pro-
organizational employee behaviors. A series of three sets of hypotheses were employed
to explore the possible influence of SOE on employees' relationships with the
organization. In order to better understand the factors that contribute to employee beliefs
regarding SOE, the first set of hypotheses tested a variety of possible antecedents to SOE.
This model included supervisor' informal status, formal status, and value congruence with
the organization, as well as measures reported by supervisors such as a supervisor's
perceived organizational support. The second set of hypotheses tested a model of
moderated mediation where perceived organizational support was hypothesized to
mediate the relationship between perceived supervisor support and employee behaviors,
especially when SOE was high. The third set of hypotheses tested a similar moderated
mediation model where affective organizational commitment was hypothesized to
mediate the relationship between affective supervisor commitment and employee
behaviors, especially when SOE was high. All studies were performed by collecting
survey data from employees and their supervisors. Two separate samples were used, the
first made up of employed university alumni working in a variety of organizations, and
the second from a single, large social services organization. Structural equation modeling
74
was used to examine the models proposed in the three sets of hypotheses. Results of the
antecedent model suggest that the perceived organizational support of the supervisor is
strongly related to the supervisor's informal status and value congruence with the
organization, both of which are positively related to SOE. SOE was found to moderate
both the relationship between perceived supervisor support and perceived organizational
support (both samples), and the relationship between affective commitment to the
supervisor and the organization (organizational sample only). Neither sample found
support for the hypotheses regarding moderated mediation. SOE appears to be a useful
tool in indicating how the actions of some supervisors can be interpreted as highly
organizationally representative while the same action by other supervisors is not. The
identification of supervisors with the organization appears to strengthen employee
generalization of supervisory actions into organizational actions.
Sparrow, and Paul R (2000) examined the adaptations to work being made
by employees and the future generation of workers is highlighted. The initial experience
of work in virtual organizations is considered. It is argued that we shall witness
fundamental transitions in forms of work organization. Initially this will not compensate
for the deterioration in the psychological contract that has been experienced by those who
have lived through an era of downsizing. However, it will raise the need to develop new
competencies to cope with the changes in work design. The need for more studies on
numerically restricted but meaningful work populations (such as teleworkers, virtual
teams, international managers, employees in small and medium-sized enterprises, small
project-based forms of organization) is signalled.
Costigan, Robert D; Insinga, Richard C; Berman, J Jason; Ilter, and Selim S; (2005).
determined whether the perceived effectiveness of a performance-management process is
associated with effective workplace behaviours in Russia and Poland as it typically is in
Western countries, such as the US. The study considers the extent to which cultural
dimensions, such as in-group collectivism, power distance, and performance orientation,
moderate the relationship between performance management and employee behaviour.
75
Using samples drawn primarily from adult education programs in the university setting,
the study asked 99 US employees, 100 Polish employees, and 86 Russian employees to
provide ratings of their firm's performance-management process while coworkers rated
the trustworthy behaviour and energized take-action behaviour of these employees. The
results show that the correlations between a performance-management composite and
these two behavioural measures are significant, but that national culture did not moderate
these relationships in the three countries. These findings lend credence to a universalistic
view of performance management. Therefore, companies in these transition economies
should feel encouraged when introducing a performance-management process.
Cambra-fierro, Jess; Polo-redondo, Yolanda; Wilson, and Alan Aug (2008) explored
the influence that an organisations corporate values have on employees behaviour and
values both within and outside the work environment. In particular, it focuses on the
impact of these values on the personal buying behaviour of employees. The empirical
research was undertaken within organisation that produces wine in Spain and involved
interviews with senior management, an analysis of company documentation, as well as
group discussions with employees supported by an employee survey. The article argues
that an organisations corporate values influence not only its employees behaviour
within the work environment, but also impacts on their global values system outside of
the work environment. In particular, this was evident within the employees buying
behaviour practices in relation to supplier loyalty and environmental concern. This has
implications for business ethics as an organisations value system may go beyond the
purely business context. Organisations need to be aware of their impact on employees
behaviour outside of the work environment; this is particularly the case for multinational
companies working across many cultures.
Ivan Laars Sucharski (2006) explored the extent to which employees perceive supervisors
as representing the organization in their words and deeds (supervisors organizational
embodiment: ( SOE) and how the strength of this belief affects employees perceptions of
support, affective commitment, and positive organizational behaviors. It was
hypothesized that employees would generalize perceptions of support and affective
76
commitment from supervisors with high SOE into beliefs regarding support from and
commitment to the organization that would then influence several pro-organizational
employee behaviors.
Glavas, Ante; Piderit, Sandy Kristin; Piderit, Sandy Kristen. (2009) have examined the
dynamics and consequences of corporate citizenship behavior at the organizational level
of analysis without considering how corporate actions impact individual employees. This
study explores how an employee's perception of their company's corporate citizenship
influences their experiences at work. Drawing on research in corporate social
responsibility, sustainability, and corporate citizenship, the researcher developed four
hypotheses. The researcher expects that employees who perceive higher levels of
corporate citizenship will report higher levels of engagement, high-quality connections,
and creative involvement. In addition, the importance of corporate citizenship to
the employee should moderate those relationships. Two surveys were constructed and
validated to measure an employee's perception of their company's corporate citizenship,
and the importance of corporate citizenship to the employee. The surveys are the first
scholarly instruments for measuring individual level variables for corporate citizenship.
They were pilot tested and show reliability and validity in the dissertation data. Survey
responses from 347 employees in six companies were analyzed with regression and
structural equation modeling, the results supported the hypotheses that employees who
perceive higher levels of corporate citizenship will report higher levels of engagement,
high-quality connections, and creative involvement. However, the moderator hypothesis
was not supported. The researcher concludes that employees are more engaged, develop
higher quality relationship, and are more creatively involved when they perceive their
company to be a good corporate citizen.
Impact of Organizational behaviour on Employees behaviour studies
Hicks-Clarke, Deborah; Iles, and Paul (2000). Presented a discussion of issues of human
resource diversity and diversity climates in organizations and develops a conceptual
model of a "positive climate for diversity" (PCFD). This refers to the degree to which
there is an organizational climate in which human resource diversity is valued and in
77
which employees from diverse backgrounds feel welcomed and included. The Author
presents a model of the indicators of a positive climate for diversity and the outcomes for
organizations and individuals of such a climate, especially individual career and
organizational attitudes and perceptions. It also presents variables which have a
moderating effect in the model. The results of research from both private and public
sector organizations, with emphasis on service, indicate that climates for diversity
do impact significantly on a range of career and organizational attitudes and perceptions.
The research and managerial implications are discussed.
Graham, Marlene; Penderghast, Thomas; Schmieder-Ramirez, June; Ciesla, Robert P.

(2009) analyzed a business ethics training program in the corporate environment and
determined the level of influence of a specific company's program on employee
behavior and morale. The problem is the implementation of a business ethics training
program by a company without measurement of its impact to its employees. In response
to a decade of increasingly embarrassing ethics scandals, the company responded by
establishing the Office of Internal Governance (OIG), an Ethics Line for employees to
pose questions, ethics advisers in its business units and compliance education programs.
The Office of Internal Governance was chartered in November 2003 to provide renewed
and focused attention to the company's internal business practices. The researcher
surveyed 150 current employees located at the Long Beach, facility. The participants
were asked to respond to a validated survey questionnaire designed to answer four
research hypotheses. A total of 100 or 66.7% employees responded to the survey. The
four research hypotheses tested significance of differences regarding position in the
company, opinion on the current frequency and duration of ethics training, influence from
ethics training on employee ethical behavior and perceived morale at work, and whether
there is/is not a significant difference in employee ranking of ethical decision making
factors at work as a result of the ethics training. An inferential statistical analysis was
conducted utilizing t-tests, chi tests, and an F-test. Study findings indicate a there is not a
statistically significant difference between management and non-management in regards
to morale or behavioral influences. The research findings also revealed that the
majority of respondents overwhelmingly hold the opinion that increased
78
frequency of training sessions would not be appropriate and should not be increased in
duration. The researcher also found that there is not strong evidence whether the current
yearly ethics training sessions are sufficient to influence ethical behavior at work.
However, research findings indicate that there is a minor statistical significance in
regards to ethics training influence on morale. And finally, roughly half of the respondent
comments pointed to improving the content of the annual ethics training with 'real life'
examples.
Yaniv, Eitan; Farkas, and Ferenc. (2005). showed that Person-Organization Fit (POF)
can play a significant role in closing that gap. The notion of POF, i.e. the fit
between organizational values and the individual values of employees, has been explored
a lot and normally in relation to internal organizational aspects. This research examined
the impact of POF from quite a different aspect, an external one, and that is the brand
perception of employees and as a consequence on the brand perception of customers. The
conclusion derived from this research are that employees' POF positively affects the
extent to which they perceive their corporate brand values as congruent with those
declared by the management, and that this brand perception level of employees positively
affects the perception level of the customers.
Arokiasamy, Lawrence; Marimuthu, Maran; Moorthy, and MKrishna (2010) examined

the influence of Perceived Organisational Support (POS) on the organisational
behaviours of employees working in the financial sector in Malaysia. To explain the POS
influence, the organisational behavioural concepts were identified for this study which is
job satisfaction, affective commitment and turnover intention. The purpose of this study
is to identify the perceived organizational support related to the job satisfaction, affective
commitment and turnover intention.
Soumaya Ben Letaifa; Perrien, and Jean (2007) examined how electronic customer
relationship management (e-CRM) has affected both organizational and
individual behavior in a leading Canadian bank. The innovative and customer-driven
culture of this bank pushed it toward early adoption of e-CRM technology. The findings
emphasize the role played by many strategic and organizational dimensions in the
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success of e-CRM implementation. In fact, to make e-CRM efforts pay off, new business
processes are required to achieve more effective and closer interactions with customers.
The shift toward customer orientation needs to be supported by a shift
in organizational objectives and processes. The results indicate that employees'
individual behavior successfully changed from a transactional to a relational perspective
and that training and coaching ensured a successful integration of e-CRM technology.
Nevertheless, the employee reward and evaluation system, which should have been
changed to leverage CRM impact, has surprisingly been forgotten. This deficiency is
addressed by proposing a new framework for enhancing e-CRM effectiveness.
Krishnaveni, R; Ramkumar, and N (2006) made an attempt to analyze and determine the
relationship and impact of HRD climate on motivational need satisfaction (Role) of the
individuals in the organizations. Five companies from different sectors that are in
existence for more than two decades are selected for the study. The middle level
managers of various departments are taken as samples. The questionnaires relating to
HRD climate and motivational need satisfaction (Role) were administered to them. The
findings indicate that in all the cases, the relationship is positive and in some cases, it is
highly correlated, which shows that 'HRD climate' has a definite impact on motivational
need satisfaction HRD of the individuals in the organization, which in turn, leads to the
overall performance of the organization.
Henkel, Sven; Tomczak, Torsten; Heitmann, Mark; Herrmann, and Andreas (2007)
aimed to show that brand success can be improved if the brand promise that is
communicated through mass media campaigns is lived up to by each employee of a
company. The study terms such brand consistent employee behaviour behavioural
branding and identifies managerial instruments for its implementation and management.
The model in the paper explains the brand's contribution to company success by brand
consistent employee behaviour, functional employee performance and brand congruent
mass media communication. Brand consistent employee behaviour and functional
employee performance in turn are modelled as determined by formal and informal
management techniques as well as employee empowerment. The model is tested on a
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sample of 167 senior managers using partial least squares and finds empirical support.
Furthermore, practical implications are provided based on additional top management
focus groups. The study finds that behavioural branding determines the brand's
contribution to company success. Further, the results show that informal management
and employee empowerment have a far stronger impact on the brand consistency of
employee behaviour than formal management instruments. Managers should spend more
time explaining and discussing targets of behavioural branding, and they should create an
organisational environment that enables employees to find their own individual
ways of articulating a brand to customers. The framework in the paper integrates personal
and non-personal facets of interaction for a holistic explanation of brand performance. It
provides a broader understanding of factors affecting the accruement of a customer's
brand experience and enables researchers and practitioners to develop more consistent
and promising brand management activities.
Afzal, Hasan; Butt, Babar Zaheer; Rehman, Kashif Ur Safwan, and Nadeem.(2009)
investigated the intra group conflict and its impact on employees'
performance. The sample of this study consisted of 300 employees working in different
commercial banks in Pakistan. An adapted questionnaire was used to collect data
regarding demographic information, task conflict, relationship conflict and employees
performance. The collected data then analyzed using the correlation and regression
techniques. The results illustrate that both relationship and task conflict have a
significant impact on employees' performance and negatively related to it. A high
level of intragroup conflict has insupportable impact on the employee performance.
Finegan,JoanE2000explores the relationship between personal values , organizational
values, and organizational commitment. Results found that commitment was predicted
by the employees' perception of organizational values The study highlights
importance of recognizing that values are multidimensional and that each value cluster
may affect behavior differently.
Bitner, and Mary Jo (1992) presented, a conceptual framework advanced for

exploring the effect of physical surroundings on the behaviors of both customers
81
and employees. It is shown that the physical environment may assume a
variety of strategic roles in services marketing and management: 1) The servicescape
provides a visual metaphor for an organization's total offering. 2) The servicescape can
assume a facilitator role by either aiding or hindering the ability of customers
and employees to carry out their respective activities. 3)The physical environment can
serve as a differentiator in signaling the intended market segment, positioning the
organization, and conveying distinctiveness from competitors. To secure strategy
advantages from the servicescape the needs of ultimate users and the requirements
and the requirements of various functional units must be incorporated into environmental
design decisions.
Bellou, and Victoria. (2010) analyzed the impact of organizational context and IT on
employees'perceptions of knowledge-sharing capabilities in five public sector and five
private sector organizations in South Korea. Social networks, centralization,
performance-based reward systems, employee usage of IT applications, and user-friendly
IT systems were found to significantly affect employee knowledge-sharing capabilities
in the organizations studied. For public sector employees, social networks, performance-
based reward systems, and employee usage of IT applications are all positively associated
with high levels of employee knowledge-sharing capabilities. Lessons and implications
for knowledge-sharing capabilities and management leadership in the public sector are
presented. Heshizer, Brian 1994 assesses the dimensionality of employee attitudes toward
flexible benefits plans and the impact of these plans on measures of job satisfaction,
commitment and turnover intent. The study points to the need for more work on the
measurement of employee attitudes toward flexible benefits and on the nomological
framework of flexible benefits as a construct in compensation research.
Siegel, Philip H, Mosca, Joseph, Karim, and Khondkar, (1997) suggested

that employees with family responsibilities may negotiate new behavioral contracts that
include family-responsive benefits such as flexible work hours. Relationships of gender,
family responsibility, and flexible work hours to organizational commitment and job
satisfaction were examined among 160 matched male and female managers in a cross-
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organizational study. Results revealed that women who perceived their organizations
offered flexible work hours reported higher levels of organizational commitment and job
satisfaction than women who did not. Also, flexible work hours were related to higher
organizational commitment and job satisfaction for those having family responsibilities.
Implications of these results for future research and organizational policy are discussed.
Lewin, Jeffrey E, Johnston, and WesleyJ, (2000) examined the impact of downsizing and
restructuring on organizational competitiveness. Given the potential negative
effects of downsizing, the challenge for the organization is to keep surviving employees'
attitudes and behaviors from eroding productivity, quality and customer service at a time
when performance is critical. If companies reduce headcount without redesigning
processes and structures, remaining employees simply must take on more work, resulting
in an overworked staff with a high potential for employee burnout. Ultimately,
productivity, quality and customer service will suffer. However, by redesigning processes
and structures and by providing the training and guidance needed, the
remaining employees can perform more valuable work.
Hyun-Jung, and Lee, (2004) investigated the role of individuals' competence-based trust
and organizational identification (OI) in employees' continuous improvement efforts. The
data were collected in a high-tech multinational joint venture company with a
sample of over 490 shop floor workers. The results show that trust is positively related to
continuous improvement efforts when employees strongly identify with the organization.
For individuals whose OI is weaker, however, trust is not positively related to continuous
improvement. OI, on the other hand, not only moderated the relationship between trust
and continuous improvement efforts, but also had a strong and positive impact on
employees' continuous improvement efforts. Managerial implications are discussed.
Jain, Ajay K, Giga, Sabir I, Cooper, and Cary L, (2009) investigated the role of Work
Locus Of Control (WLOC) as a moderator of the relationship between
employee wellbeing and organizational commitment. The study reports on quantitative
study of middle level executives from motor-cycle manufacturing organizations based in
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Northern India. The focus of the paper is to examine the predictive ability of wellbeing
and the moderating effect of WLOC in predicting organizational commitment. The
results suggest that wellbeing is negatively related to conditional continuance
commitment, whereby employees consider the advantages associated with continued
participation and costs associated with leaving, and normative commitment,
whereby employees feel they have moral obligations to remain with the organization. The
presence of an external WLOC has a positive impact on the relationship. Wellbeing, as
represented by a hassle-free existence, predicts positive affective commitment with a
particular organization, and internal WLOC as represented by effort influences the
relationship negatively. Although a cross-sectional study, its findings have implications
for contemporary leadership and organizational psychology research and practice,
particularly with regard to understanding of employee commitment in a progressively
changing environment.
Tzafrir, Shay S, Gedaliahu H Harel; Baruch, Yehuda, Dolan, and Shimon L, (2004)
examined the consequences of emerging human resource management (HRM) practices
for employees' trust in their managers from a combination of the theory of exchange and
a resource-base perspective. Using a national sample of 230 respondents, the research
reported here portrays the paths which link the consequences of emerging HRM practices
to employees' trust in their managers. In this framework, HRM consequences represent a
proxy in which managers' actions, behaviours, and procedures affect employees' trust in
their managers. The results indicate a significant and positive influence of empowerment,
organizational communication and procedural justice as determinants of employees' trust
in their managers. Using structural equation analysis, findings also indicate that
procedural justice mediates the impact of employee development on their trust in their
managers. Implications for strategic HR policies in organizations and suggestions for
future research are discussed.
Aufenanger, Sharyn; Sanchez-Hucles, Janis V.; Wells, Kimberly J (2008) examined the
effect of household structure on utilization of family-friendly benefits in organizations, as
well as the impact that family-friendly benefit utilization has on organizational attraction
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and workplace withdrawal behaviors among Federal government employees with
children. Results showed that alternative work arrangements (e.g., compressed and
flexible schedules) were popular among all employees who have children. Family-
friendly benefit utilization rates were highest among single parent employees and lowest
among traditional family employees. Single parent employees were more likely to use
flexible schedules, part-time, compressed schedules, telework, and sick and annual leave.
Dual income employees were more likely to use flexible schedules, annual and sick
leave, telework, and part-time work. Traditional family employees were more likely to
use flexible schedules, annual and sick leave, compressed schedules, and
telework. Employees utilizing flexible, part-time and job sharing schedules, telework,
annual leave, the Federal child care centers and the Dependent Care Flexible Spending
Account (DCFSA) showed higher levels of attraction toward the agency. Lower
rates of absenteeism were found for employees who utilized compressed and flexible
schedules, the Child Care Subsidy Program, and the DCFSA in lower rates of leave
behaviors. Lower rates of absenteeism as measured in number of hours of leave taken
were found for employees who utilized job sharing. Employees using flexible schedules,
job sharing, telework, annual leave, leave without pay, Federal child care centers, the
Child Care Subsidy Program, and the DCFSA displayed higher rates of retention.
Turnover intentions within an agency were lower for employees utilizing flexible
schedules, telework, leave without pay, and Federal child care centers. Turnover
intentions to another an agency were lower for employees that utilized flexible schedules,
part-time, telework, sick leave, Federal child care centers, the Child Care Subsidy
Program, and the DCFSA. Intentions to turnover and leave the Federal government
altogether were lower for employees who utilized compressed schedules, flexible
schedules, telework, annual leave, Federal child care centers, and the DCFSA. Results
demonstrated differences in employees' use of family-friendly programs and that
utilization of family-friendly policies is related to organizational attraction and workplace
withdrawal behaviors
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Organizational Structure Studies of Organization
Holtzhausen, and Derina. (2002) explored the effects of organisational structure on the
public relations function. It Further Focuses on the effects of structural changes on an
internal communication function in a large South African organisation. In this
organisation internal communication consultants were appointed at divisional level. They
had to oversee the election of a communication champion in each cost centre in the
division. Survey research conducted 18 months after the process implementation found
the structural changes led to improved information flow and face-to-face communication.
Employees made better use of organisational media and relied less on the grapevine.
Although the process made employees less fearful to speak truthfully and improved
employee-supervisor communication, these effects were less pronounced. The research
confirmed the important link between public relations strategy and organisational
structure, particularly for communication managers and internal communication
practitioners in large organisations.
Burrows, Bryan (1989) attempted to relate quality of falsework erection to the

organisation and competence of personnel involved. The study involved field
investigation using a sample of fifty-four sites throughout England And Wales where
different types of falsework arrangements were being erected by a range of organisations
and personnel. By the establishment of a rigorous method of evaluating quality of
workmanship of falsework construction this was the first study which enabled quality
standards to be compared across different types of falsework arrangements. In addition
this study, combined with a sociological analysis, enabled an assessment to be made
between organisation, competence and quality, which to the author's knowledge, has not
been undertaken prior to this study. Subsequent analyses of the data, used the two models
of organisation: the economic and occupational orders. These indicated that all sites
essentially adopted the same methods and assumptions. Any attempts to formalise the
management of the process of control of falsework, along the lines of the procedures
outlined in the Code of Practice for Falsework, were limited in extent and their degree of
86
success. The investigation found that the quality of falsework on building sites was
generally of a lower standard than on civil engineering sites. This was found to be
attributed to the competence of the manual workforce. This study addresses the
organization structure of the industry at large. Although peculiar, in that it leads to a
temporary product, the false work process may be regarded as a microcosm of the overall
construction process. The conclusions presented in this thesis have relevance to the
current issues of concern to the industry: competence, skill shortages, training and quality
(including safety) and the implementation and efficacy of Quality Assurance schemes.
Hankinson, and Philippa (1999). Compared the organisational structures of the World's
Top 100 brand companies with those of less successful companies, referred to in this
article as Outsider brand companies. The paper identifies that whilst the type
of organisational structure may not be seen as a determinant of brand success, perceptions
of whether the organisational structure was right for them, were. In other words,
managers of brands need to feel that the organisational structure allows them to manage
in the way they consider necessary to deliver brand success. In some instances this might
mean an authoritarian style of management through a hierarchical organisational
structure and in others, it might mean a more democratic style of management through
relatively flat organisational structures. The results are discussed in the context of brand
management theory and practice and the postmodern paradigm shift
regarding organisational structure.
Curado, and Carla, (2006) explored a new idea presenting the possible relationship
between organisational learning and organisational design. The establishment of this
relation is based upon extensive literature review. Organisational learning theory has
been used to understand several organizational phenomena, like resources and
competencies, tacit knowledge or the role of memory in the organisation; however, it is
difficult to identify fits and consequent misfits between organisational learning and the
organisational design. This is a theoretical paper, so there is a possible limitation,
87
regarding the lack of empirical support. At the end of the research a number of
recommendations regarding the organisational design are suggested, in order to
promote organisational learning in the firms. This research identifies some links between
learning and organizational design, providing the grounds for a subsequent development
and empirically testing of those relations. May, Margaret 1995 UK the Chartered
Institute of Management Accountants (CIMA) has about 30,000 members and 35,000
students. In Europe, there are about 1,000 members and students. The International
Committee endeavors to ensure active participation and representation in the major
international forums, as well as pursing national strategies for CIMA development in the
Republic of Ireland and in countries outside Europe. The organizational structure of the
CIMA is reviewed.
Leadership Studies of Organization
De Vries, Reinout E; Bakker-pieper, Angelique; Oostenveld, and Wyneke. (2010).

Investigated the relations between leaders' communication styles and
charismatic leadership, human-oriented leadership (leader's consideration), task-
oriented leadership(leader's initiating structure), and leadership outcomes. A survey was
conducted among 279 employees of a governmental organization. The following six main
communication styles were operationalized: verbal aggressiveness, expressiveness,
preciseness, assuredness, supportiveness, and argumentativeness. Regression analyses
were employed to test three main hypotheses. In line with expectations, the study showed
that charismatic and human-oriented leadership are mainly communicative, while task-
oriented leadership is significantly less communicative. The communication styles were
strongly and differentially related to knowledge sharing behaviors, perceived leader
performance, satisfaction with the leader, and subordinate's team commitment. Multiple
regression analyses showed that the leadership styles mediated the relations between the
communication styles and leadership outcomes. However, leader's preciseness explained
variance in perceived leader performance and satisfaction with the leader above and
beyond the leadership style variables. This study offers potentially invaluable input
88
for leadership training programs by showing the importance of leader's supportiveness,
assuredness, and preciseness when communicating with subordinates. Although one of
the core elements of leadership is interpersonal communication, this study is one of the
first to use a comprehensive communication styles instrument in the study of leadership.
Mack, Tonya; Fields, Dail L (2011) investigated the incremental effects of

instructor leadership behaviors on higher education student commitment and intent to
continue studies after controlling for four critical aspects of the teaching/learning
environment. Students enrolled in class, online, and hybrid courses at a 2-year technical
college were surveyed to examine their perceptions of instructor leadership behaviors,
course design, communication of course expectations, and feedback/assessment of course
performance. The study utilized Kouzes and Posner's (2003) Leadership Practices
Inventory to examine the leadership behaviors of the instructors. Data were collected via
valid and reliable survey questionnaires on student commitment, intent to continue in
course studies, and student satisfaction with course design, course expectations, and
feedback/ assessment of course performance. Data were analyzed using multiple
regression analysis. The study revealed that leadership behaviors (independent variables)
had a significant impact on all of the dependent variables (student commitment and intent
to continue in course studies). The results obtained from this studyprovide evidence that
although instructors in the teaching/learning environment may not quantify as leaders on
college campuses, instructor leadership behaviors can influence how students react and
behave in the learning environment.
Wallace, James. (2007) has focused on privileged groups such as professionals or senior
executives. What has been conspicuously absent are studies focusing on leaders in at-risk
or distressed communities. These are sometimes referred to as communities of poverty.
Bennis (2001) and Burns (2003) both identified the need for leadership research to
address the chronic problem of the alleviation of poverty and the need for
grassroots leadership from the poor to accomplish the task. This research examined,
through a mixed method research design in which case study is nested within content
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analysis, Myles Horton, a proven developer of leaders in at-risk and distressed
communities. A grounded theory of leadership in at-risk communities and the
components of communal residence, radical subordination, reconciliation, reframing,
restoration of people and community, and responsibility are explained.
This leadership theory is referred to as incarnational leadership due to its reliance on a
worldview incorporating kenosis, love, and justice. Incarnational leadership exhibits
elements from key theories such as social identity, self-efficacy, learned helplessness,
creative and applied problem solving, empowerment, risk in society, change and tipping
points, optimism, resilience, the psychology of forgiveness, logotherapy, and hope.
Incarnational leadership is compared and contrasted to transforming and
transformational leadership, servant leadership, self-sacrificial leadership, and
authentic leadership theories
Alimo -Metcalfe, Beverly;Alban- Metcalfe,John; Bradley, Margaret; Jeevi Mariathasan;

Samele, and Chiara. (2008) examined the relationship between quality of leadership and
attitudes This is a longitudinal empirical investigation, using quantitative methods. The
findings were fourfold: 1). The leadership instrument used was demonstrated to have
convergent, discriminant and predictive validity. 2). Differential relationships were found
between three aspects of quality of leadership and attitudes to work and a sense of
wellbeing at work. 3). One leadership quality - "engaging with others" - was shown to be
a significant predictor of organizational performance. 4). Leadership quality as assessed
by competencies or "capabilities" did not predict performance. The paper presents
evidence of: the validity of a new leadership instrument; the differential relationship
between leadership quality and staff attitudes to work and their sense of wellbeing at
work; and a predictive relationship between leadership quality and organizational
performance.
Lee, Eunhui; McMahan, Gary C. (2007) examined the relationship between the Big Five
personality traits (extraversion, agreeableness, openness to experience, conscientiousness,
and neuroticism) and equity sensitivity and transformational leadership behavior, as well
90
as interaction between equity sensitivity and specific personality traits (extraversion and
agreeableness). The subjects include 95 MBA students. The Personality Inventory
Questionnaire, Equity Preference Questionnaire (EPQ), and Multifactor Leadership
Questionnaire- Form 5X are used to evaluate their personality, equity sentivity, and
leadership behaviour. Additionally, the Equity Sensitivity Instrument (ESI) is used to
measure equity sensitivity, and by comparing the results between EPQ and ESI, potential
differences in the measures of equity sensitivity are identified. The data is analyzed
through hierarchical multiple regression analysis. As hypothesized, agreeableness and
openness to experience have a significant positive relationship with
transformational leadership behavior. However, when the model includes equity
sensitivity, the effect of agreeableness disappears. As assumed in this thesis,
conscientiousness and neuroticism do not have any significant relationship with
transformational leadership behavior. In addition, extraversion does not positively relate
to transformational leadership behavior, and equity sensitivity does not interact with
extraversion and agreeableness when predicting transformational leadership behavior.
When equity sensitivity is measured by the EPQ, the results show a positive relationship
between equity sensitivity and transformational leadership behavior, while there is no
significant relationship when equity sensitivity is measured by the ESI.
This study contributes to the determinants of transformational leadership by adding
equity sensitivity. It explains that transformational leadership behavior is determined by
individual characteristics. Future studies should extend the research
on leadership behavior relating equity sensitivity based on the results of thisstudy.
Future studies should also regard the difference between the ESI and EPQ as a
measurement of equity sensitivity. Furthermore, organizations and schools should
consider benevolence as an important element of employee selection tests,
and leadership education and development.
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Political Environment Studies of Organization
Yang, Kaifeng; Pandey, and Sanjay K; (2009) examined that Political support is an
important environmental factor in public management, and over the past few decades, the
implementation of results-oriented reforms has become highly influential as well.
However, few studies have examined the impact of these two factors on employee
attitudes and behaviors. This article proposes that the extent of results-oriented reforms
and political support from elected officials--as perceived by managers--has a significant
influence on managerial practice and normative commitment to the organization. Using
data from a national survey of state-level human service managers, we test and find
support for a model positing that managerial perceptions of political support have a direct
influence on the implementation of results-oriented reforms, organizational structure, and
internal communication. We also find that more extensive results-oriented reform efforts
are positively associated with goal clarity, communication adequacy, and flexible
structures and that normative commitment is affected positively by goal clarity and
negatively by bureaucratic structure.
Otenyo, and Eric E. (2008). examined the application of theories of organizational birth
and death in transitional and undemocratic political settings.Through the case study of the
birth and death of the Ministry of Supplies and Marketing in Kenya, the author
determines that theoretical explanations of organizational formation and demise do not
necessarily fit a uniform profile. Under unstable and undemocratic environments, public
organizations that are brought to life through decrees may also be unexpectedly vanished
without following a logical and predictable cyclical sequence .
Pandey ; SanjayK; Wright, and Braadley E. (2006). Took a systematic effort to study a
key theoretical question from the vantage point of public sector organizational behavior.
Most political science models, with a primary interest in democratic control of
bureaucracy, study the political influence on the bureaucracy from an agency theory
perspective. Organization behavior literature, on the other hand, is focused largely on the
92
study of individual-level phenomena in private organizations and does not
incorporate political context as part of explanatory models. This article proposes a
middle-range theory to "connect the dots," beginning with disparate sources in the polity
influencing organizational goal ambiguity, which in turn is expected to increase
managerial role ambiguity. An empirical test, using data collected from a national survey
of managers working in state human service agencies, supports this theoretical model.
We find that certain types of political influence have an impact on organizational goal
ambiguity, which in turn has a direct effect in increasing role ambiguity and also an
indirect effect in increasing role ambiguity through organizational structure.
Guarasci, Bridget; Shryock, Andrew J (2011) examined how during this period
environmentalism, as an altruistic movement, enabled foreign investors to both
rationalize and mystify political power. Well before the fall of Baghdad in April 2003,
Iraqi exiles met with the U.S. Department of State under the rubric of the Future of Iraq
Project to plan an Iraq in Saddam's aftermath. The country they envisioned aligned
directly with the principles and values of a liberal polity: a certain degree of
governmental transparency, shared decision-making by way of voting and community
participation, individual rights, and the integration of Iraqi businesses and industries into
the global market. This dissertation makes two central arguments: first, although the
marsh project concerned the environment, the most powerful effects of this project lay
not in environmental rehabilitation, but in the support for a new economy. Second, "post-
conflict" Iraq established distance as a technology for foreign investment in Iraq.
Internationals worked from afar to preserve their own safety, but hired Iraqi project staff
to carry out their mandates on the ground. Technologies, like GIS and remoste sensing,
customized for this distanced approach gave rise to virtual spaces of the marsh which
coalesced internationally. As marsh advocates brought a digitally
rendered environment into focus to reflect a future they wished to see, they obfuscated
human experience of the war and the violence of the present. In this way Iraq circa 2003
came to be defined by a future-oriented politics of life that, in the case of marsh
restoration, privileged the ecological over the human. Chapter One, "Recuperation,"
analyzes the relationship of Iraqi exiles and the marsh. Chapter Two, "Conference,"
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argues that conferences were critical resources for distanced reconstruction. Chapter
Three, "A Holographic Image," demonstrates how the marshes were abstracted via
remote sensing technologies. Chapter Four, "Wartime Birding," evaluates Nature
Iraq birding expeditions. The final chapter, `The National Park," examines wartime
conservation. Each chapter contributes to the overall argument that the Iraqi marsh
project instituted an economy of life.
Zhou, Qingshui; Colyer, Dale K. (1999) seeked a cooperative solution to the concerns
such as issues of trade and the environment, and the 1990s witnessed a great rise in
global environmental concerns. Postwar environmental movement, interaction of trade
and the environment, and the reconciliation issues are reviewed. Methodologies to
studying these issues are categorized into (1) international trade approaches, and (2)
environmental economics approaches. A political model-cost sharing game is then
proposed. Specifically, environmental problems resulting from trade are treated as
international public goods and the issue of optimal provision of public goods is analyzed
in a game-theoretic framework. The economy consists of one public good, one private
good, and a set of agents (sovereign countries or regions). Each agent's strategy is to
decide the levels of his private consumption and resources devoted to public goods
provision, given his budget constraint. It is shown that the cooperative game with a
gamma-characteristic function has a unique equilibrium which is Pareto efficient.
Further, a new solution concept--Gini Ratio Equilibrium (GRE)--is developed which
combines the virtues of all three fundamental modes of cooperations, i.e., direct
agreement, justice and decentralized behavior. Finally, a taxation model is adopted to
implement the GRE model. Thus the cost share for each agent is determined by a
single political parameter--the elasticity of the cost share, given the total cost of the
public good and the distribution of the initial endowments. The model is applied to the
global warming case by showing how to finance a forest preservation project. The
assumed player set is 195 countries, the total GDP of each country is the endowment, and
the project cost is $9.9 billion. Cost shares for each country (and hence per-capita share)
are calculated under three different elasticities: -0.3, 0, and 0.3. The United States (per-
capita GDP $25,514) incurs the biggest share, with per-capita cost shares of $7.63, $9.69,
and $10.85, respectively, for the three elasticities; while SaoTome and Principe (per-
94
capita GDP $120) incurs the smallest one, with per-capita shares of $0.01, $0.05, and
$0.18, respectively.
Implementation of Evaluation and appraisal Studies of Organization
Thompson, and Frank J (1982). Observed that during the 1970s, various federal, state,
and local managerial performance appraisal systems were revamped or developed.
Today's performance appraisal systems stress the need for pertinent, accurate manager
performance information and correct interpretation. A need also exists to link the
performance appraisal to other functions within personnel decision making.
An appraisal system's effective use largely depends upon managers who make decisions
using inspiration, rather than calculation alone. Further, those involved in initiating
an appraisal must be skilled in creating a consensus regarding appraisal system merits.
For example, employees or politicians lacking faith in an appraisal system practically
void its chances of producing desired organizational results. A crucial variable in the
design and implementation of the successful appraisal system is trust built into the
system. System designers must avoid limiting the potential of appraisal system initiatives.
As more and more marginal public-sector organizations, particularly at the state level, do
parts of government business, they influence the shape of public programs. Thus, the
dynamics of inspiration and consensus building on these margins warrant a central
position on public research agendas.
Steel, and Brent S; (1983) elaborates that Implementation of a

performance appraisal system typically requires: 1). employee acceptance, 2. positive
valuations on the part of supervisory personnel, and 3). commitment of personnel
specialists to train the users of the system. This study investigates the
expectations of these 3 groups in the state of Washington to see if they believe that a
good performance appraisal system could lead to increased agency efficiency, better
individual performance, and improved employee morale. Data was taken from a random
survey of supervisors, employees, and personnel specialists. A sampling of study findings
95
includes: 1). State employees expressed positive expectations regarding the
usefulness of performance appraisals. 2). Both employees and supervisors were positive
in their view of the use of a good performance appraisal system. 3). All groups
responding were optimistic that a good system would bring about improvements at the
agency and individual levels. Appendices.
Stieber, William.(1991) aimed at improving the quality of an organization's products or

services through quality training presented as as quality improvement, total quality
management, or quality control training. These quality programs provide interpersonal
and process skills training and/or various types of statistical training to a wide
variety of personnel in corporations. These programs are usually sponsored by training,
personnel or quality departments. The internal change agents from these departments
want personnel to learn new skills and use these skills on the job; in their quest to
improve the quality of its organizations products and/or services. They face a
number of decisions about how to implement their quality improvement training.
Information on implementation characteristics of effective programs is needed to make
appropriate, cost effective choices. A questionnaire was mailed to professionals
responsible for quality improvement training of 1,500 randomly-selected corporations
with at least 4,000 employees. The questionnaires contained four items addressing quality
training professionals' assessment of their programs' effectiveness, based upon four
types of program evaluation. The remaining items asked respondents how their quality
improvement training program had been implemented. Multiple regressions analyses
were computed to determine which and to what extent, implementation characteristics
accounted for variation in each of the four measures of program effectiveness. Analyses
revealed that the extent of top management support for quality improvement training, the
use of skills taught on the job made part of performance review, and the extent to which
supervisory employees receive training accounted for the largest proportions of variance.
Relationships between implementation characteristics and the various types of
evaluation were also presented. Results of this study suggest that in effectively
implementing quality training efforts, the professional responsible for such initiatives
must be concerned with securing top management support during the training process,
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reinforcement of the skills from training in any internal performance appraisal process
and including the key supervisory levels in any major quality training endeavors in the
organization. Other implications for quality training professionals and suggestions for
future research were discussed.
Avne, Laura; Mandell, Stuart J. (1993) examined what is currently happening in the area
of hospital management performance appraisals. Study objectives were: (1) to determine
the prevalence of various appraisal methods, (2) to discover variations in appraisal
objectives, (3) to determine the time allotted to the appraisal process, (4) to discover
rater/ratee satisfaction with the process, and (5) to determine the CEO's skills as a
performance rater. Chief executive officers (CEOs) from 125 California general acute
care hospitals of 300+ bed size were sent a survey. A total of sixty-three (63) individuals
responded to the survey, a return rate of 50 percent. Findings. (1) Nearly 94 percent
indicated using a formal, documented managerial performance appraisal system. (2) Most
(64.4 percent) used the MBO or Goals/Results Approach either alone or with another
technique. (3) The most popular objectives for the performance appraisal were: (a)
providing feedback for the employee, (b) allocating rewards, and (c) identifying skill
deficiencies and determining training needs. (4) Approximately half felt their appraisal
method provided for good legal documentation. (5) Most (61.9 percent) indicated that
less than 5 percent of a person-year was allotted for appraisal information gathering,
review sessions, and goal planning. (6) Approximately half met with their managers once
a year to conduct performance reviews. (7) Nearly 60 percent perceived their managers to
be "generally satisfied" with the appraisal system, while nearly 65 percent of the CEOs
reported that they were "generally satisfied". (8) Nearly one-third reported that they
anticipated a change in the appraisal system within the next year. (9) Popular appraisal
training methods included professional seminars, hospital inservicing, and reading of
books/articles.
Recommendations. (1) Determine if the current performance appraisal system is meeting

the needs of the organization. (2) Survey the appraisee's level of satisfaction with the
current appraisal process. (3) Change the current appraisal method if it is not meeting
organizational needs. (4) Use formal, documented performance appraisals. (5) Consider
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using MBO as the primary managerial evaluation method. (6) Write up or review current
job descriptions. (7) Expand the number of objectives for using the managerial
performance appraisal. (8) Increase the preparation, implementation, and review time
spent in the managerial appraisal process. (9) Conduct two formal and several informal
evaluation meetings annually. (10) Increase the amount of rater training in conducting
appraisals. (11) Discuss the topic of managerial appraisal with other hospital CEOs.
Supervisory Style Studies of Organization
Ostergren, Jennifer; Robb, Susan Mortorff (2008) explored the supervision experiences
and beliefs of individuals currently completing their first year of professional service,
regarding: (a) their perception about their working relationship with their supervisor, (b)
their perceptions about the supervisory styles and predominant role assumed by their
supervisor, and (c) their satisfaction with supervision. Both qualitative and quantitative
data were collected utilizing a questionnaire completed by individuals currently
completing a Required Professional Experience (RPE) as required by the California
Speech-Language Pathology and Audiology Licensing Board (SLPAB). The largest
majority of participants (93%) were also completing a Clinical Fellowship (CF) as
required by the American Speech-Language and Hearing Association (ASHA). One
hundred twenty-two individuals participated in this study. Results revealed that the
majority were satisfied with their supervision. The majority also reported a relatively
strong working alliance with their supervisors. Most, but not all, participants considered
their supervisor a mentor. Consistent with Anderson's Continuum Model of Supervision
(Anderson, 1988), the majority of participants indicated that their supervisors used either
a collaborative or consultative supervisory role. Participants also reported that their
supervisors most frequently used a supervisory style consistent with Friedlander and
Ward's (1984) Attractive supervisory style. Demographic variables of the supervisor,
supervisee, and setting did not play a dominant role in these findings. Rather,
interactional factors between the supervisee and supervisor were found to be important to
working alliance and satisfactions measures. In particular, all levels of satisfaction with
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supervision were importantly related to working alliance. All three types of supervisory
styles (Attractive, Interpersonally Sensitive and Task Oriented supervisory styles) (as
outlined by Friedlander & Ward, 1984) were also found to be importantly related to
working alliance and satisfaction measures. The results of this study are discussed as they
relate to clinical supervisors, researchers, and governing agencies in the field of speech-
language pathology.
Nelson, and Andre. (1992) explored that Supervisors need to learn to vary their
management styles in order to get the best results from their workers. This is because the
needs of workers vary. Some may like to solve problems and require very little
supervision, while others may need more encouragement and supervision in order to
succeed. Styles of supervision run the gamut from democratic, laissez-faire to autocratic
and shades between. The style should be altered depending on the employees'
expectations and the job environment, both of which change rapidly. One supervisory
style simply does not adequately meet everyone's needs. Supervisors who accept this will
discover that it will make their task easier and their work group more responsive and
supportive. DeConinck, James B, Brock, Baird A.1993. examined the influence of the
sales manager's supervisory style on the role clarity and job satisfaction of a group of
full-time real estate salespeople. The results show that the salesperson's self-esteem, need
for role clarity, experience, and self-perceived performance moderate the relationship
between supervisory behaviors and sales peoples' job attitudes. Real estate salespeople
have more positive job attitudes when the sales manager is supportive of their behavior
than when the sales manager tries to structure their jobs.
Internal Communication System Studies
Ford, Sherry; Honeycutt, James M. explored imagined interaction (IIs) and bereavement
coping self-efficacy in psychosocial adjustment to spousal bereavement. II characteristics
and functions explored include discrepancy, activity, proactivity, specificity,
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retroactivity, variety, valence, catharsis, self-understanding, rehearsal, compensation and
use of IIs with the deceased spouse. The current study's primary contribution is the
introduction of bereavement phenomena into the framework of
intrapersonal communication. The present investigation includes results of two studies.
The first included a sample of 232 individuals at varying lengths of widowhood who
completed the Adjustment Survey, a 15-page survey instrument consisting of II factors,
IIs with deceased spouse, bereavement coping self-efficacy, social support, interaction
with other widow(er)s, pre-death communication for survivorship, as well as
demographic characteristics. The second study, a follow-up to the initial study, included a
sample of 75 widows/widowers who completed a revised version of the Adjustment
Survey. Revisions to the survey consisted of contextualizing the II measurement tool to
reflect more direct association with spousal bereavement. Findings of the
first study unearthed an indirect relationship between psychosocial adjustment to spousal
bereavement and reports of IIs with the deceased spouse. Participants reporting more
frequent occurrence of IIs with the deceased spouse reported lower levels of adjustment.
Findings confirmed a direct relationship between bereavement coping self-efficacy and
psychosocial adjustment to spousal bereavement. These findings indicate
that internal phenomena, namely imagined interaction and self-efficacy, make significant
contributions to processing spousal bereavement. The nature of the association between
IIs and the adjustment process was further explored in a follow-up investigation.
The second study was conducted to explore the strength of the relationship between
global psychosocial adjustment and II factors more specifically reflecting the nature of
spousal bereavement. Study 2 results support the first study in that IIs with the deceased
spouse again were found to share an indirect relationship with global adjustment. II
valence also emerged as a significant, negatively-related factor in global adjustment. II
self-understanding, which also shared an indirect relationship with adjustment, began to
approach traditional significance as well. Overall findings confirm that intrapersonal
phenomena contribute to the adjustment process in spousal bereavement.
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Goodsite, and Bruce H. (1987) examined that General Motors Corp. (GM) has launched a
diversified attack on what it terms the "frozen middle" in its employee communication
system -- a plan to make its whole management/supervisory group a more active element
in employee communications. The new corporate wide plan adds further dimension to the
automaker's already sophisticated employee communication program; now, 60,000
managers and supervisors are a major audience. The communication system has 4 basic
goals:1. to sell throughout GM the idea that solid 2-way communication is essential to
effective management today, 2. to keep all employees informed, 3. to represent both
management communication priorities to employees and employees' own legitimate
concerns and information needs to management, and 4. to push the company toward
open communication. The expanded program involves print and visual media and a
special training seminar for managers. The channels of communication at GM have
developed step-by-step over the years, based largely on research to guide improvements.
McDonald, and Tom (1997). Observed that new technologies are making meetings more
productive. Audio teleconferencing, video teleconferencing, and computer conferencing
all offer advantages. About a quarter of Fortune 1000 companies are using an Intranet -
their own internal communication system complete with Web pages. Pharmaceutical
giant Eli Lilly and Co. recently hooked up 3,000 desktop computers in company offices
located in 2 dozen countries.
Farrell, Jenny; Sahlstein, Erin M; Emmers-Sommer, Tara M.; Valenzano, Joseph

M.; Hertlein, Katherine M. (2009) addressed communication constraints perceived by
individuals in long-distance dating relationships (LDDRs) and how these constraints are
managed. Internal constraints are identified within the boundaries of the individual or
relationship and external constraints are those that originate from outside the boundaries
of the individual or relationship. Semi-structured qualitative interviews were conducted
with 27 participants; ages ranged from 18-35. Participants reported perceiving
11 internal constraints (mediated communication, avoidance, talk habits, physical
absence, emotions, view of outsiders, uncertainty and expectations, effort, notions of
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distance, visits, and miscellaneous) and five external constraints (schedules, social
network, finances, and technology, miscellaneous). Participants reported managing
constraints as individuals and as dyads. Constraints are discussed to be hierarchical;
notions of distance, schedules, social network, finances, and technology are primary
constraints; all others are secondary. Emotions and avoidance also allow participants to
manage other constraints. Applications and areas of future research are also discussed.
Employees Behaviour and Satisfaction Studies of Organization
Martin, Fabiola; Muchnick, Marc. (2006) investigated the relationship between

leadership practices and job satisfaction and to determine whether the demographics
gender, education, and tenure impacted that relationship. The target population consisted
of randomly selected non-supervisory employees who evaluated their first level
supervisors. Kouzes and Posner's Leadership Practices Inventory and Spector's
Job Satisfaction Survey were the measurement instruments that were combined to create
a Zoomerang online electronic survey methodology. Pearson's Moment Correlation and
Analysis of Variance were the statistical tests that were applied. The findings indicated
that there was a moderate statistically significant positive relationship between leadership
practices and job satisfaction and that there are no statistically significant differences
based on the demographics gender, education, or tenure when the tests are applied to
Job Satisfaction and Leadership Practices at the overall scale levels. This study also
discovered there that different correlational and statistically significant results would be
achieved if Leadership Practices and Job Satisfaction were analyzed at the subscale level.
Tiegs, Robert B; Tetrick, Lois E; Fried, and Yitzhak; (1992). Examined the extent to
which linkages among job characteristics, psychological states, and work outcomes are
moderated by growth need strength (GNS) and work context satisfactions was examined.
The author evaluated the effects using the database of Oldham, Hack man, and Stepina
(1979), which consists of 6,930 employees working on 876 jobs. It was found that, when
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evaluated in terms of statistical and practical significance, the data generally did not
support either the individual moderating effects of GNS and context satisfactions or the
joint moderating effect GNS and each context satisfaction on the relations among job
characteristics, psychological states, and motivational and affective outcomes. The
findings are consistent with Oldham et al., which found that GNS and each of the 4
context satisfactions did not jointly moderate the relation between the overall motivating
potential of a job and internal motivation.
Kattara, Hanan Saad; Weheba, Dina; El-said, and Osman Ahmed. (2008). attempted to
investigate the relationship between employees' positive and negative behaviours,
customers' perception of service quality and overall customer satisfaction. Results of the
current study revealed that all employees' behaviours, either negative or positive, are
highly correlated to the customers' overall satisfaction. The study traced the impact
of behaviours on customers' perceptions and overall satisfaction through studying the
relevant literature and by gauging opinions on the impact of employees' behaviours on
customers' perceptions of quality and overall satisfaction. Findings in this context
confirmed the correlation between these variables and their consecutive and exchanging
effect. It was also concluded that employees behaviours have great effect on overall
customer satisfaction regardless of customers' gender, nationality, and purpose of visit,
number of visits and length of stay. Finally, the study ends up by offering suggestions
and practical implications for hotel practitioners to think strategically and implement
effective tools to motivate employees towards behaving positively with customers.
Stoneback, David; DeCaro, Frank; Balch, David; Rivera, Luis.(2011) examined an

identified problem in addressing the job satisfaction of employees in call centers (N =
49). It was hypothesized that the level of emotional intelligence (EI) in managers (N =
10) may have an impact on employee satisfaction. This problem and the hypothesis led to
a series of questions concerning whether any of the four branches of emotional
intelligence impact employee satisfaction. Many of the studies within the existing body
of knowledge focused on EI and other factors such as bottom line results, employee
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engagement, and leadership effectiveness. What was known at the time of the study was
that attrition in call centers is high and that there must be a series of factors related to this
fact. Employee satisfaction was identified as a potential factor. To measure employee
satisfaction, the Job Satisfaction Survey tool was used while the MSCEIT tool was used
to measure manager emotional intelligence. The results of the MSCEIT for each manager
were tested against the JSS results for their employees that participated in the study. The
outcomes found that for each of the four branches (perceive use, understand, and
manage) there was no statistically significant link. The study concluded that there was no
discernable impact of manager's EI on the satisfaction of their employees. However, there
was a relationship found between employee satisfaction and gender of manager. The
conclusion of these results suggests that there is further opportunity to develop
knowledge in this field. Further research should be developed to understand the
relationship manager gender plays in employee satisfaction. It is suggested that additional
variables be added to future studies and that the scope of future studies extend beyond
internal factors and look at macro factors external to the workplace. Additionally, it is
suggested that the body of knowledge may benefit from a longitudinal study that
examines and tracks results for manager EI and employee satisfaction over time.
Creativity Stimulants Studies of Organization
Amabile, Teresa M; Conti, and Regina (1999) explained that the work environment
for creativity is examined at a large high-technology firm before, during and after a major
downsizing. Creativity and most creativity-supporting aspects of the perceived work
environment declined significantly during the downsizing but increased modestly later;
the opposite pattern was observed for creativity-undermining aspects. Stimulants and
obstacles to creativity in the work environment mediated the effects of downsizing. These
results suggest ways in which theories of organizational creativity can be expanded and
ways in which the negative effects of downsizing might be avoided or alleviated.
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Fagan, and Mary Helen. (2004) Found a positive relationship between creative style and
work creativity. These results support the work of researchers who found creative style to
be related to creative behavior (16). Also, as hypothesized, the study found a positive
relationship between creative climate stimulants and work creativity, and a negative
relationship between creative climate obstacles and work creativity.
Elsbach, Kimberly D; Hargadon, and Andrew B (2006) proposed that organizations use a
new framework of workday design to enhance the creativity of today's chronically
overworked professionals. Although insights from creativity research have been
integrated into models of work design to increase the stimulants of creativity (e.g.,
intrinsic motivation), this has not led to work design models that have effectively reduced
the obstacles to creativity (e.g., workload pressures). As a consequence, creative output
among professionals in high-workload contexts remains disappointing. In response, we
offer a framework of work design that focuses on the design of entire workdays rather
than the typical focus on designing either specific tasks or very broad job descriptions
(e.g., as the job characteristics model in Hackman et al. (1975). Furthermore, authors
introduce the concept of "mindless" work (i.e., work that is low in both cognitive
difficulty and performance pressures) as an integral part of this framework. Authors
suggest that to enhance creativity among chronically overworked professionals, workdays
should be designed to alternate between bouts of cognitively challenging and high-
pressure work (as suggested in the original model by Hackman et al. (1975), and bouts of
mindless work authors discuss the implications of our framework for theories of work
design and creativity.
Martin, Susan; Carroll, Theresa L. (1993) described and assessed perceptions of factors
in the work environment that are stimulants and barriers to the creativity of nurse
managers. Twenty nurse managers (response rate of 95%), in one metropolitan teaching
hospital, completed the Work Environment Inventory (WEI) (Amabile et. al., 1990). The
WEI reports test-retest scale reliabilities of internal consistency (Chronbach's alpha)
ranging per scale from.69 to.80 or higher. Construct validity was reported. Their
responses indicated an overall positive response to their work environment. Freedom,
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supervisory encouragement and work group support were the most frequent
identified stimulants in the work environment. Work load pressure and organizational
impediments were present as barriers. There was no significant correlation between years
of experience as a nurse manager inside or outside the organization and their perception
of barriers and stimulants to creativity.
Ethics and Social Responsibility Studies of Organization
Valentine, Sean; Godkin, and Lynn (2009). Observed that Successful organizations often
invest resources in social initiatives that assist stakeholders, and there is reason to believe
that the resulting business performance stems from a work environment that encourages
ethical conduct. However, little is known about how social performance benefits a
company internally from an employee perspective. Consequently, the purpose of this
study was to investigate whether employees' beliefs about social responsibility were
related to their ethical reasoning. Using a self-report survey containing
different ethics measures, information was collected from 781 individuals employed in a
four-campus health science center. The findings indicated that perceptions of
corporate social responsibility and the believed importance of ethics and social
responsibility were positively related, and that these factors were at least marginally
associated with different steps of ethical reasoning. Finally, the ethical decision-making
steps were positively interrelated. Business leaders should consider
using social performance as a mechanism for creating a corporate environment that
encourages ethical reasoning, and that further complements the strategic role of human
resource ethics.
Cheney, and Tim D (2006). sets forth a decision making model for organizations to use
in their pursuit of "business ethics," and "social responsibility." Authors then provide
some suggestions for how to more easily adapt such a model. We hear a lot these days
about "corporate ethics," "business ethics," and "social responsibility." Most of us have
some idea what these terms mean, but it often seems a bit fuzzy. This can make it a
daunting task for managers to adopt strategies to address these concepts. Ethics deals
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with concepts of right and wrong, and entails actions somewhat beyond the legal
minimums. Social responsibility tends to mean utilizing the stakeholder model and taking
into account to a greater degree the interests of those impacted by corporate decisions and
actions. One way to consider the manner in which ethics and social responsibility apply
in the corporate or business setting is to approach it as part of decision making process.
That's what managers do; they make decisions. The following approach might be helpful
as a way to enhance "business ethics" and "social responsibility" through a broader
decision making process.
Singhapakdi, Anusorn; Vitell, Scott J; Rallapalli, Kumar C; Kraft, and Kenneth L.

(1996). stated that marketers must first perceive ethics and social responsibility to be
important before their behaviors are likely to become more ethical and reflect
greater social responsibility. However, little research has been conducted concerning
marketers' perceptions regarding the importance of ethics and social responsibility as
components of business decisions. A reliable and valid scale for measuring marketers'
perceptions regarding the importance of ethics and social responsibility is presented. An
instrument for the measurement of the perceived role of ethics and social responsibility is
also presented. Evidence that the scale is valid is presented through the assessment of
scale reliability, as well as content and predictive validity. Future research needs and the
value of this construct to marketing is discussed.
Gaston, Ellen; Stevens, Leo. (2011) examined the potential relationship between
commitment to corporate social responsibility and organization performance management
within a global stakeholder context in the biotechnology industry. For purposes of this
research biotechnology corporate social responsibility encompasses corporate
contributions to the economy achieved while considering the needs of human resources,
environment, and society. The mixed methodology study revealed a positive
Pearson r correlation of corporate social responsibility to organization performance
measured by Tobin's q. This study identified key drivers between corporate social
responsibility and organization performance management including organization culture,
corporate social responsibility program, applied ethics extending to the supply chain, and
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managed risk. In addition to surfacing a significant variation in biotechnology industry
perception of risk, thestudy identifies organization performance management
implications from organization corporate social responsibility focus and integration
addressing enterprise resource management, consideration of
stakeholders, ethics policies, and security standards. The study results suggest increased
leadership focus on applied ethics, quality, and risk management has the potential to
increase both corporate social responsibility and organization performance.
Power and Politics studies of Organization
Ferdinand, and Jason (2004) explained that power and politics are two issues that have
received great attention in numerous fields of inquiry, but as yet have been virtually
ignored in the field of organizational learning. This study briefly notes the minimal
contributions made thus far and demonstrates the limitations of the approaches to the
study of power in organizations currently favored, before suggesting an alternative
starting point for empirical investigation. Empirical evidence is used to suggest that
learning in contemporary organizations is already influenced by ideological interventions,
and that formal qualifications demonstrate the increasing attempts of the UK government
to influence organizational learning.
Lee, Yoon; Ferguson, James.(2011) explored the intersections of social and

environmental politics, focusing on the governance of work environments. It is based on
two related premises: first, that a workplace is an ecological site where a worker's body--
an organic, porous entity--interacts with its surroundings; and second, that any
intervention in the ecology of a workplace involves an effort to regulate and guide the
conduct of those who inhabit the workplace, that is, workers and corporate managers.
Thus, this dissertation is an intellectual inquiry into the place of workers and corporations
in environmental politics. Discussion in this dissertation is based on three years of
fieldwork in Santa Clara County, California, also known as Silicon Valley. Central sites
in my fieldwork were a local business association and a nonprofit advocacy group
concerned with the working conditions of low-income immigrant workers, both of which
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had been involved in public debates about the environmental and health impacts of
electronics production since the late 1970s. Key questions that the researcher explored
during the research process were how the two social groups (that is, corporations and
immigrants) had become important subject groups in urban environmental governance
and what strategies their advocates had developed to claim their rightful place in social
and spatial governance. In research analysis, the researcher attributed the growth of
collaborative initiatives for sustainability or environmental justice, in which the two
organizations participated, to the recent development of partnership-based, "positive"
environmental governance which aims to depart from the conventional regulatory that is
based on punitive measures (often called the "command-and-control" approach). The
researcher argued that such participation by business associations or nonprofit advocates
for immigrants in environmental partnerships takes a "cultural" work: the organizations
need to rework values and meanings associated with their constituencies, blurring the line
between public and private interest or between community and immigrants. Further, the
researcher suggested that this cultural work is centrally grounded in the "bio-political"
dimensions of capitalism. The researcher analysis focuses on two important forms of
biopolitics: one, effort by Silicon Valley companies to present themselves as part of a
governing body based on their proclaimed concern with the local population and their
"quality of life" issues; and, the other, illness claims by workers, whose voiced concern
about the long-term health impacts of their work environments have the effect of
unsettling the dominant power of social insurance programs based on "industrial
accidents," such as the workers' compensation system.
DeLoach, Stephen B; Das, Jayoti; Conley, and Lindsey (2006). Analyzed how a country's
commitment to labor standards is affected by the international political power they
possess. Powerful countries may be less committed to actual enforcement of certain labor
standards since they are unlikely to face significant threats of international sanctions
regardless of their actions. The study introduces an index of international power for 116
countries that is used to examine how power affects the extent to which countries enforce
standards relating to freedom of association and collective bargaining. The evidence
suggests that, even after controlling for differences in wealth, productivity, and market
freedom, powerful countries are significantly less committed to the protection of labor
standards than less powerful countries.
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Wilson, and Patricia A (1994). Provided a thorough investigation into why senior
executives seriously consider leaving the federal service. The study investigates turnover
using integrative conceptual models. The sample population was drawn from members of
the US Senior Executive Service (SES). In addition to socio-psychological factors, the
study examines the influence of power and politics on the intent to leave of SES
members. The research finds subunit power - a structural and managerial phenomenon -
to be an important determinant of senior executives' intent to leave the federal service.
The continuing systematic development of senior executives may be an effective way to
increase retention, as well as quality and productivity in subunits within departments of
the federal government. Subunit power may be enhanced by assuring the appointment of
more career executives into subcabinet appointments. Subunit power provides SES
members with the tools to be successful in their desire to influence or implement policy.
Duarte, and Fernanda (2010) Re-affirmed the need for a critical pedagogy of
organizational power and politics to foster deeper levels of reflection and ethical attitudes
among undergraduate management students. While prescriptive pedagogical approaches
can impart knowledge that may be useful to future managers, they often encourage a
shallow and instrumental view of power in which profits are placed above ethics, and
expediency above morality. As argued here, a critical pedagogy will encourage a more
productive analysis of power-related phenomena in organizations, and will nurture
attitudes and behaviours that can humanize management practice. The first part of the
paper examines the key theoretical concepts of the proposed approach, the second
discusses a set of themes emerging from a critical analysis of
organizational power and politics in a management subject, and the third discusses
common challenges encountered by academics committed to critical approaches.
Reilly, and David A (2003). Explained that the behavior of states in the international
system, according to theories of power politics, is centered on survival. Individuals
become citizens, relinquishing their right to self-govern, to improve their security. Their
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primary demand of the state, in return, is that it function to protect its citizens. The state,
therefore, must develop strategies to ensure its survival. This has led historically to a
concern about the power of a state relative to others. Given that the international system
lacks a centralized authority capable of dictating and enforcing laws, each state must
engage in self-help strategies. This simulation enables participants to experience power
politics as they unfold and to serve as leaders attempting to ensure the survival of their
state. They will develop foreign policies intended to improve their security and bargain
for foreign assistance. The game is most effective as a learning tool when followed by a
debriefing session that introduces the theories behind many of the activities they engaged
in. The simulation and debriefing can be conducted in 1.5 to 2 hours.
Teams and Team Work studies of Organization
Axelrod, and Richard (2002). Explained that teams are more than a name. Calling a
collection of individuals a team does not make them one. Forming a team starts with
purpose and interdependence. A compelling purpose allows people to put forth effort in
service of issues larger than themselves. Interdependence means having to work together
to get the job done. Some teams require little interdependence and others require a lot.
But all teams require some interdependence. Additionally, effective teams require clear
goals, roles that are agreed upon and understood, and well-defined approaches for
meetings, decision making, and information sharing. The way people experience
themselves in a team ultimately determines whether they put their wholehearted selves
into the work of the team. As paradoxical as it may seem, the key to effective teams is
individuals. Piccoli, Gabriele; Powell, Anne; Ives, Blake. 2004. Determine the impact
managerial controls have on the effectiveness of virtual teams. Using an experimental
design compares self-directed virtual teams to counterparts where behavior controls are
used as a method of managerial control. The data were collected using 51
student teams of three or four members each from three different countries. The results
indicate that the most satisfied team members were in virtual teams with effective
coordination and communication. Members of self-directed virtual teams report higher
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individual satisfaction with the team and project, while different control structures had no
significant impact on virtual team performance. Future research should investigate how
these findings generalize to organizational workers, rather than just looking at students.
This study is just a first step investigating one type of managerial control: behavior
controls. The small amount of research that has been published on virtual teams has
primarily concentrated on self-directed teams. This compares results
of team effectiveness by looking at both self-directed virtual teams and virtual teams with
behavioral controls enforced.
Nedelko, and Zlatko (2007). Observed that over the past two decades, several innovative
ways of working have emerged-among them, virtual teams. In today's world,
virtual teams have become almost a prerequisite to succeeding in the global economy.
Technology is a crucial element of any virtual team, and a broad range of groupware
exists that supports virtual teams' work. However, team members still have unique
obstacles to overcome. Frequent complaints from virtual team members relate to the lack
of face-to-face contact and the inability to share non-verbal communication. Using a
videoconferencing system in performing the virtual team's work can help eliminate such
problems as videoconferencing simulates very closely face-to-face communication. The
study presents an overview of videoconference typology and assesses which types of
videoconferencing systems are most suitable for performing the different tasks associated
with virtual teams.
Roper, Kathy O; Phillips, and Deborah R. (2007). Presented the advantages and possible
deterrents of self-managed work teams, and offers recommendations on ways to integrate
these teams into project management. A range of works, which provide a description and
practical advice about self-managed work teams, are reviewed in an effort to provide a
thorough picture of self-managed work teams. The information is sorted into sections:
history of self-managed work teams; self-managed work teams: a definition;
characteristics of self-managed work teams; the role of emotional intelligence in self-
managed work teams; developing and empowering the team; barriers to successful self-
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managed work teams; factors to consider before forming a self-managed work team and
the longevity of self-managed work teams. The study integrates theories and findings
from other works to offer a holistic view of self-managed work teams in today's
workplace.
Brown, and Thomas C. (1992). Observed that teams are powerful when they work well,
but transforming a group of individuals into a team can be hard work. The four stages
of team growth are forming, storming, norming, and performing. First, the group must
form. At this stage, the group decides why, or whether, it wants to work together for a
common purpose. In the second stage, storming, group members begin to share
disagreements and frustrations. The major concerns of the full group during the second
stage should be to emphasize open communication and positive conflict and to establish
group goals without destroying individuality. In the norm stage, the group has reached a
common understanding on resolving conflict, reaching decisions,
measuring work completion, handling communications, and managing meetings. In the
performing period, individual goals and roles mesh as team focus and member alignment
merge into a productive unit.
Vasquez, and Beverly. (1997). Examined that businesses of every type and size are
relying on "team building" and comfortable office environments to produce more
effective employees. Companies are using everything from professional trainers to more
comfortable chairs to make their employees happy and therefore more productive. And as
more companies rely on teams to do the work, training is used to familiarize employees
with each other and to build trust so they can learn to work together effectively. Peggy
Steele, CEO and founder of International Learning Systems, said downsizing in
the work force is one reason why companies have started doing more work in teams.
"Employees are asked to do more with less and more people are asked to make
decisions," Steele said. Charlotte Earlen baugh, an independent human resources
consultant, said team building that brings employees into decision-making process and is
open about what's happening in the company can increase productivity even more than
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monetary compensation. "From a human resources perspective, team building can affect
employees and their performance because studies have shown that workers are motivated
by feeling that they are a part of the business as a whole, knowing the goals or missions
of a company and understanding how they fit in to that mission," Earlen baugh said.
"Team building is valuable because two heads are better than one," she added. "The most
successful aspect of team building is knowing who your team players are and what their
areas of expertise are." G.G. Johnston of public relations firm Johnston Wells said all of
the agency's work is done in teams, so team building is a crucial part of the company.
"There is an expectation here that everyone work well together. Working in teams helps
us manage business better for our customers," Johnston said. "Teams offer a safe
environment for people to grow and learn." However, a former Johnston Wells employee
said teams are only effective if the work is distributed equally and the independence
of team members is respected. "In a team, if the senior members hoard the majority of the
work and leave making coffee to other members, all it does is build bitterness," said the
former employee, who asked not to be identified. "Teams can also be inefficient and a
waste of client's money... because there is very little individual responsibility involved.
Some things are not team oriented and writing is one of them." Teams are most effective
when the customer's needs are the center of their focus, said Steele. The most important
thing to consider when thinking about building teams is if they are necessary, said Nina
Peterson, director of sales and marketing for Team Works Inc. in Boulder, a training
company that works with companies on programs that help relationships in the workplace
become more effective. "Teamwork has to be a strategy that leverages other goals of the
company," Peterson said. "Companies have to consider why they are doing this and what
they want to get out of it. It has to make sense as a business strategy because it's a huge
investment and you're asking your employees to change the way they work." Teams can
be an effective way to manage projects and other work, Peterson said, but only if
everyone is involved. "Participation equals value," she said. "Even in
a team environment, everyone can play a leadership role." When working with clients on
creating an effective workplace environment, Team Works starts with a needs
assessment, Peterson said. "When trying to build a team environment," she said, "you
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have to be sensitive to what the trust factor is like." "The key to successful team building
is communication," agreed Earlenbaugh. Through communication, players can learn to
trust each other and therefore work together more effectively.
Bell, Christopher; Mink, Barbara P. (2008) working from the key principles of media
richness theory (MRT), focuses on how team leaders' choices of communication media
impact on their leadership effectiveness rating as perceived by their team members. The
research methodology involved the development of the Media Selection Questionnaire
(MSQ) to assess team leaders' capacity to align media capability with communication
need. The team leaders' leadership effectiveness was assessed through the use of a 360-
degree leadership diagnostic instrument, the Leadership Effectiveness Inventory (LEI).
Qualitative analysis was also undertaken of both the team leaders' written responses to
the MSQ and the team members' written responses to the LEI. The research findings raise
significant questions regarding MRT as a complete and sufficient explanation of
team leaders' media choice patterns. The findings highlight the need to develop a far
more sophisticated understanding of team leaders' media choices that reflects the cultural,
technological and personal preference influences on media selection by team leaders. In
addition, the research identifies that, in opposition to MRT,team members of
dispersed teams do not base their rating of team leaders' leadership effectiveness on the
capacity to align communication media richness levels with the complexity of the
communication act. The research identifies that team members of geographically
dispersed work teams have a need for clarity of direction, high levels of trust and a
culture of open communication, issues not dissimilar to the needs of non-geographically
dispersed teams. The challenge for team leaders of dispersed teams is to satisfy the
expectations of team members in the context of dispersed organizations.
Angles, Joaquin. (2007) examined and compared general ideas, themes, concepts, and
understandings of the phenomenon of shared leadership in self-managed work teams.
Twenty leaders from one magnet hospital and one telecommunications company were
interviewed to assess their lived experiences of shared leadership. Horizonalization,
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reduction, and imaginative variation techniques, as well as textural and structural
descriptions, were applied to produce clear common and non-common themes. Six major
themes emerged: (a) empowerment, (b) collaboration, (c) decision-making, (d)
knowledge sharing, (e) increase team efficiency, and (f) improve team productivity.
Other common themes that emerged from the study and have applicability for future
research included (a) environment of trust, (b) sense of ownership, (c) corporate culture,
(d) employee satisfaction, and (e) communication. Two non-common themes were (a)
morale and (b) advancement opportunities. The study revealed that shared leadership
provided teams with certain levels of empowerment, collaboration, and decision-making,
and this can promote self-managed work teameffectiveness. The study also revealed that
lack of trust and culture could impact shared leadership and the effectiveness of self-
managed work teams.
Absenteeism Studies:
Simons, Elinor; Hwang, Syni-An; Fitzgerald, Edward F, PhD; Kielb, Christine;Lin, and
Shao. (2010). Investigated Upstate New York school building conditions and examined
the associations between school absenteeism and building condition problems. We
merged data from the 2005 Building Condition Survey of Upstate New York schools
with (2005) New York State Education Department student absenteeism data at the
individual school level and evaluated associations between building conditions
and absenteeism at or above the 90th percentile. After adjustment for confounders,
student absenteeism was associated with visible mold (odds ratio [OR]=2.22; 95%
confidence interval [CI]=1.34, 3.68), humidity (OR=3.07; 95% CI=1.37, 6.89), poor
ventilation (OR=3.10; 95% CI=1.79, 5.37), vermin (OR=2.23; 95% CI=1.32, 3.76), 6 or
more individual building condition problems (OR=2.97; 95% CI=1.84, 4.79), and
building system or structural problems related to these conditions. Schools in lower
socioeconomic districts and schools attended by younger students showed the strongest
associations between poor building conditions and absenteeism. Authors found
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associations between student absenteeism and adverse school building conditions. Future
studies should confirm these findings and prioritize strategies for school condition
improvements.
Parthan, Anju and Gopalan. (2005). Observed that back pain is one of the most common
and challenging problems in primary care. The economic burden due to back pain is of
concern to employers, insurance agencies, policy decision makers and treatment decision
makers. The objective of this study was to assess the impact of back pain on absenteeism,
productivity loss, and direct healthcare costs using the Medical Expenditure Panel Survey
(MEPS). The predictors of absenteeism in individuals who experienced back pain were
identified using Zero-inflated negative binomial regression. In 2000, the one-year period
prevalence of back pain in individuals between 18 and 65 years of age was 11.1 percent.
About 16.3 percent of the individuals who were employed and who reported back pain
experienced back pain due to work-related injuries. Ethnicity and union contract were
identified as significant predictors of likelihood of absenteeism in individuals who
experienced back pain. The significant predictors of absenteeism rate were perceived
overall health status due to back pain, and ethnicity. The mean number of absenteeism
days due to back pain was estimated to be six days. In 2000, a total of nine
million absenteeism days were due to back pain. The total productivity loss due to back
pain-related absenteeism was estimated to be $3.6 billion and the total direct healthcare
costs was estimated to be $14 billion. The average productivity loss due to back pain
related absenteeism was estimated to be $305 per person and the annual per-capita direct
healthcare cost due to back pain was $730. Estimating the impact of back pain in a
nationally representative sample will provide valuable information to the employers,
healthcare insurers, and Workers' Compensation providers in terms of allocating fund for
individuals with back pain to return to work as soon as possible.
Pfeifer, and Christian. (2010). Seeked to analyse to what extent absolute wage levels,
relative wages compared with colleagues, and the position in a firm's hierarchy affect
workers' absenteeism behaviour. The author uses personnel data of a large German
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company from January 1999 to December 2005. The data set contains 62,774 monthly
observations of 1,187 full-time white-collar workers. Probit and Tobit models for
individual monthly absenteeism are estimated. Absenteeism is negatively correlated with
absolute wages, relative wages, and hierarchical levels, which is in line with the paper's
hypotheses. Moreover, the results indicate that a positive relative wage has a stronger
impact than a negative relative wage, which gives rise to the issue of unequal wage
structures. The findings point to the relevance of interdependent preferences and status in
utility functions. From the non-linear relationship between relative wages
and absenteeism it follows that an unequal wage structure has the benefit that relatively
better paid workers are absent less frequently, while the costs of higher absenteeism of
workers at the lower tail of the wage distribution are rather low. The results show that not
only the absolute wage level but also status-related factors (e.g. relative wage,
hierarchical level) affect employees' work effort and that unequal wage structures can be
efficient to some degree. The author provides "real world" evidence from scarce
personnel data for the importance of interdependent preferences and status. Furthermore,
the non-linear relationship between relative wages and absenteeism is examined.
Addae, Helena M; Cullen, and John B. (2005). Stated that Absenteeism is a costly
behavior that occurs around the world. However, in spite of the growth in cross-cultural
research in organizational research and in global businesses, very few studies have
examined absenteeism from a cross-cultural perspective. The author further examined the
effect of national culture on absenteeism using a sample of 17,842 respondents from 24
countries. Based on Hofstede's cultural dimensions, we postulated that uncertainty
avoidance, power distance, individualism, and masculinity will be negatively related
to absenteeism. Similarly, based on the globe cultural dimensions, we proposed that
there will be positive relationships between societal collectivism and assertiveness,
and absenteeism. However, we hypothesized that in-group collectivism and gender
egalitarianism will have negative relationships with absenteeism. To test cross-level
hypotheses, the authors used Hierarchical Linear Modeling. Our results indicated that
with the exception of uncertainty avoidance and assertiveness, all hypothesized
relationships were supported. Consistent findings were obtained for the common
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elements of both the Hofstede and globe cultural dimensions, demonstrating convergence
of our findings. We offer theoretical and practical implications of our study and suggest
future research directions in the culture-absenteeism link.
Keller, and Joseph A. (2008). Observed that Employee absenteeism is a problem that has
plagued supervisors and managers for a long time. Much research has been conducted
regarding the factors that relate to and contribute to absenteeism. This study was based
upon a quantitative methodology for surveying employees that work for an anonymous
U.S.-based organization with hundreds of service employees to identify the factors that
contribute to absenteeism. The author surveyed 367 service employees that work for a
U.S.-based manufacturer. The subject organization had two divisions, each with their
own service organization. An electronic survey instrument was used to collect data from
participants to measure factors that relate absenteeism. Bivariate correlation analyses, t -
tests, and ANOVAs were used for hypothesis testing. The author found mixed results in
correlations between absenteeism and the variables employed. The findings of the study
are expected to help organizational leaders manage and control absenteeism.
Campbell, Susan; Bird, Douglas. (2005) suggested that worker health and productivity
are related and that effective administration of programs promoting health will positively
influence absenteeism as a proxy measurement of productivity. The purpose of
this study was to determine if participation in an employer-sponsored health promotion
program is related to absenteeism. The investigation tested the hypothesized relationship
between employer-sponsored health promotion program participation and absenteeism in
a nonprofit organizational setting. The study methodology utilized a causal-comparative
design comprised of secondary data gathered by a research and education nonprofit
organization with locations in Texas and Colorado. Participation in the employer-
sponsored health promotion program was used to predict absenteeism. The results of
this study revealed, for male employees in a research and education nonprofit
organization, as health promotion program participation increased, the expected number
of absence hours decreased. For women, however, health promotion program
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participation was not found to predict the expected number of absence hours. Health
promotion program participation group did not appear to predict absence episodes for
men or women.
Satterwhite, Monica; Bungum, Timothy J (2000) evaluated the relationship of varying

body mass index and average annual health care costs and absenteeism in a group of 524
municipal employees. The 269 employees with health care claims and the 487 employees
with attendance records were categorized into five different BMI categories based on
self-reported weight and height. Findings from the study suggest that as BMI increases,
average annual health care costs and average annual absenteeism increase. However,
BMI was only significantly related to absenteeism. The study also found significant
relationships between education and health care costs and absenteeism. No significant
differences for health care costs or absenteeism were found based on race, age, gender,
wellness center membership, or smoking
Lainhart, William; Lindstrom, Heather; Ram, Pavani; Yu, Jihnhee. (2011) observed
notable increases of influenza-like illness (ILI) in school-age children and since these
young people were uniquely susceptible to infection with the virus,
school absenteeism was hypothesized to be an indicator of pandemic influenza activity in
the community. The aim of this study was to determine whether absenteeism was
associated with community circulation of influenza during a pandemic and whether this
relationship differed among subgroups of the study population. Local school districts
collected information on all-cause absenteeism and submitted data daily to the Erie
County Department of Health. This study focuses specifically on weeks 40 through 51 of
2009 (10/5 through 12/25/2009), which correspond to the second wave of the influenza
pandemic. Cross-correlation analyses were conducted to determine the lag or lead time
that maximally correlated weekly average absenteeism rates, in all school districts, or in
subgroups, with community-level indicators of pandemic influenza activity. Mean
weekly absenteeism rates had the greatest correlation with community-level indicators of
pandemic influenza activity with a lead time of one week, suggesting that all-
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cause absenteeism from a given week predicted pandemic influenza activity one week
later. In subgroup analysis, elementary and middle school absenteeism were more
strongly correlated with pandemic influenza activity than was high school absenteeism.
Therefore, future school-based surveillance efforts for pandemic influenza could focus
solely on absenteeism of younger schoolchildren to reduce the burden associated with the
surveillance system. We conclude that a school-based surveillance system using all-
cause absenteeism was an appropriate surveillance tool during the 2009 influenza
pandemic.
Attrition Studies of Organization
Breiter, Deborah; Vannucci, Cynthia; Kline, Sheryl; Gregory, and Susan.(2004).

Explained that attrition provisions in group-business contracts have become increasingly
problematic for meeting planners in recent years because meeting participants and
exhibitors increasingly seek their own accommodations outside room blocks, particularly
when they find low-price rooms via Web sites. A 2002 survey of 143 meeting planners
(primarily working with associations) found that most signed contracts
containing attrition provisions for the largest meeting they held in 2001, but only one-
third of those who came up short on room-block guarantees were billed for attrition.
Many planners negotiated some form of settlement. Rather than have attrition continue to
be a point of contention for hotels and meeting planners, a better approach might be for
hotel sales managers and meeting planners to work together to formulate
reasonable attrition policies. From the meeting planners' viewpoint, this would include
receiving credit for the business that the meeting brings to the hotel, whether in the room
block or through other sales channels.
Ziliak, James P; Kniesner, and Thomas J. (1998). Examined the importance of possible
nonrandom attrition to an econometric model of life cycle labor supply using both a Wald
test comparing attriters to non attriters and variable addition tests based on formal models
of attrition. Estimates using the Panel Study of Income Dynamics show that
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nonrandom attrition is of little concern when estimating prime-age male labor supply
because the effect of attrition is absorbed into fixed effects in labor supply. The wage
measure and instrument set have much larger effects on the estimated labor supply
function of prime-age men than how one adjusts for panel attrition.
Adhikari, and Atanu.(2009). Explained that today, attrition is one of the important issues
in an organization. Employees' liking for an organization depends on several factors. The
author examines the relationship between the high attrition rate in the Indian Information
Technology (IT) and Information Technology Enabled Services (ITES) sector. The data
is collected from several IT companies and analyzed using multivariate techniques.
Principal component analysis has been performed to find the underlying dimensions for
job attrition. Multiple regressions are then used to examine the significant for the high
rate of job switching among its employees. Based on this, the author has also segmented
the people into three categories.
Abowd, John M; Crepon, Bruno; Kramarz, and Francis. (2001). studied the effects of
the attrition of firms from longitudinal samples on the estimates of dynamic labor
demand models. The reasons for attrition from business-based longitudinal samples are
extremely varied and are related to both the economic activity of the business and the
methods of acquiring sampling frame information for those businesses.
Cooke, Donna K; Sims, Randi L; Peyrefitte, and Joseph. (1995). Stated that although
much is known about undergraduate attrition in the United States, very little is known
about graduate student attrition. The differences between undergraduate and graduate
students make generalizations of undergraduate research difficult to apply to the graduate
population (Malaney, (1987). Some of the differences between the students include age,
career stage, personal life circumstances, reasons for pursuing an education, and finances
(Iovacchini, Hall, & Hengstler, (1985). According to the author one reason for the
plethora of research on undergraduate attrition (however dated) is the sheer size of the
problem due to the number of students involved (cf. Pantages & Creedon, (1978). The
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number of dropouts affects the operations and finances of universities and has important
implications for public policy. It affects the demand for and use of university services.
purpose of the authors in this research was to identify a set of personal variables that
predict graduate student attrition, emphasizing those that universities can influence (i.e.,
to determine avoidable dropouts). Even though factors such as a need to relocate or a low
grade point average (GPA) may be very strong predictors of attrition, they often are not
evident 12 or more months before students actually quit. It is plausible, however, to
assume that there are some personal variables (e.g., attitudes) that may be associated
with attrition. Authors intent was to identify some of the more important variables.
Rhodes, Anthony; Hayslip, Bert. (2005) attempted to illuminate the problem

of attrition in longitudinal research by estimating the mean effect sizes for participant loss
across 57 studies published in 13 prestigious journals which regularly use older
participants. Results estimate overall attrition to be around 34% of the original sample.
The subsequent break down of attrition into its subtypes yield mean effect sizes for
attrition due to Refusal (8%), Loss of contact (10%), Illness (6%), and Death (14%)
in studies sampling from adults 50 years or older. Analyses were then conducted via
meta-analytic one-way ANOVA and weighted regression to identify possible moderators
of overall attrition and their four subtypes.
Amity, Frederica; Walker, Alexis J.; Richards, Leslie N. (2011) used interview
transcripts to find clues to attrition from a longitudinal study among nonpartnered,
rurally-located, poor mothers, a generally vulnerable population with characteristics
commonly associated with attrition (low-income, low levels of educational attainment,
and rural location). Drawing on Rural Families Speak data, the author used the number of
family members and friends living in close proximity to mothers, and mothers'
descriptions of their family members and friends (including boyfriends) and the quality of
their relationships with these individuals to predict whether mothers would drop out of
the study after Wave 1 ( attriters ), stay in the study through Wave 3 despite moving
(continuer-movers ), or stay in the study through Wave 3 while remaining in place
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( continuer-nonmovers ). Analyzing data through the lens of the affect theory of social
exchange, the author was unable to consistently predict the groups to which mothers
belonged. Trends supported the use of affect theory of social exchange as preferable to
classic social exchange theory in predicting outcomes with this sample. In ad hoc
investigations, the author found that attriters andcontinuer-movers differed significantly
with respect to age and education, and that these two demographic variables were useful
in predicting outcomes for these two groups. The findings also revealed the importance of
establishing consistent protocols in longitudinal research, particularly when data are
collected from widely dispersed geographic locations. The findings led the researcher to
recommend using a more contextual framework and a mixed methods approach to
studying attrition and informal social support. The author recommends that future, similar
research include interviews of continuers to learn what factors contribute to their
decisions to stay in longitudinal studies, and that adequate funding for the
implementation and oversight of consistent protocols be provided.
Kang, Sang-Gu; O'Grady, William. (2011) investigated English attrition in three Korean-
English bilingual children who had returned to Korea after a two-year stay in the U.S.
Although the children had lived in the U.S. for two years, individual English proficiency
varied, perhaps due to factors such as age and environment, resulting in different paths
and rates of attrition. Repeated experiments on the children's production and
comprehension of English articles, irregular past tense verbs, passives, and relative
clauses were conducted. Results on these four phenomena as well as observation of code
switching and of the use of null subjects are reported. The findings suggest that
the attrition is first detected in the speakers' general processing skills in production. Thus,
the experiments that are targeted to examine a few aspects of English grammar are likely
to produce meaningful results only after attrition is detected in production errors.
The contribution of this study is greater in the area of methodology rather than in the
results themselves. Collecting data at different points in time repeatedly using the same
material appeared to offer an effective measure of attrition. In addition, it seems clear that
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Korean-English bilinguals' English attrition is not likely to occur within a short period
because of the highly valued status of English in Korea.
The scope of attrition research is much wider than mere descriptions of the phenomenon.
From the researcher's stance, issues such as theory and methodology can be interesting.
However, from the attriters' and their parents' viewpoint, pedagogies customized for
returnees could well be the most meaningful contribution of attrition research. The first
step for researchers is to describe the attrition phenomenon and establish related theories.
Then, based on these foundations, pedagogies that will benefit those trying to
evade attrition can be developed. I hope that by drawing on the results described in this
dissertation, this research helps to reveal the perils and prospects of attrition research and
opens the door to future progress in this area.
Research Gap
No study on Impact of Organizational Behaviour on Employees Behavior in

Pharmaceutical Companies in selected locations of Mumbai, Pune, Nasik has
been done till date. Its being found that studies focus on individual aspects of
Organizational behaviour such as Teams and Teams work, Job satisfaction but
none of the studies have focused on the aspects related to phamrmaceutical
companies
No studies on Supervisory style, Leadership style, Internal Communication
System, Implementation of evaluation and appraisal system in Pharmaceutical
companies in selected locations of Mumbai, Pune, Nasik has been done till date.
The researcher has found that none of the studies have focused on pharmaceutical
companies related to the aspects of supervisory style, leadership style, internal
communication system, and so on.
The researcher has found that even recent studies on Organizational behaviour
dont focus on employees behavior and organizational behaviour together and
mostly studies are focusing on all sectors other than pharmaceutical sector. Hence
this present study under taken by the researcher would bridge the gap between the
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past and recent studies. This present study undertaken would primarily foucs on
employees of pharmaceutical companies.
126
CHAPTER 3
SCOPE OF THE STUDY,
OBJECTIVES OF THE STUDY,
HYPOTHESIS OF THE STUDY
127
CHAPTER 3
SCOPE OF THE STUDY
This study focuses on Organizational Behavior and its impact on Employees Behavior in
Pharmaceutical Companies in selected locations of Mumbai, Pune and Nasik. Important
dimensions such as Internal Communication System, Organizational Structure, Teams
and Team Work, Power and Politics, Leadership, Supervisory style, Implementation of
Evaluation and Performance Appraisal are considered for analyzing Organizational
Behavior in Pharmaceutical companies in selected areas of Mumbai, Pune and Nasik.
Dimensions such as Job satisfaction, Creativity Stimulants, Absenteeism, and Attrition
Rate are considered for analyzing Pharmaceutical Companies Employees Behavior. The
study includes Small scale Industries, Large Scale Industries, as well as Medium Scale
Pharmaceutical Companies in Selected areas of Mumbai, Pune and Nasik.
OBJECTIVES AND HYPOTHESIS
Work behaviour, according to Stephen (2004), is a term used to describe

describe behaviour one uses in the workplace and is normally formal compared to other
types of human behaviour and this varies from one profession to the other. The world is
looking forward to high performance Organizations that would provide high job
satisfaction to their employees and would also cherish excellence and effectiveness. This
could be achieved if we could develop organizational behaviour (OB). In the light of the
above observation, present research deals on the following.
128
The research objectives are:
To study the effect of organizational behaviour on size of organization
To study the significant difference of organizational behaviour in different cities

.
To study the association between organizational behaviour and employees
behavior.
To study the association between leadership of organization and job satisfaction

of employees.
To study the association between job satisfaction and demographic factors of

employees.
To study the impact of political environment on employees satisfaction.
To study the effect of Evaluation and appraisal of employees on employees

satisfaction.
To study the effect of ethics and social responsibilities of organization on

employees satisfaction.
To study the effect of internal communication system of organization on

employees behaviour.
To study the significant difference among various dimensions of organizational

behaviour.
129
STATEMENT OF HYPOTHESES
H01: Organizational behavior w.r.t to pharmaceutical companies has no impact of size of

organization.
H11: Organizational behavior w.r.t to pharmaceutical companies has impact of size of
organization.
H02: There is no significant difference between organizational behavior w.r.t to

pharmaceutical companies in different cities. ( Mumbai, Pune, Nasik)
H12: There is significant difference between organizational behavior w.r.t to
pharmaceutical companies in different cities. ( Mumbai, Pune, Nasik)
H03: There is no association between organizational behavior and employees

satisfaction.
H13: There is association between organizational behavior and employees satisfaction.
H04: There is no association between Leadership of Organisation and job satisfaction of

employees.
H14: There is association between Leadership of Organisation and job satisfaction of
employees.
H05: There is no association between job satisfaction and demographic factor of

employees.
H15:. There is association between job satisfaction and demographic factor of employees.
H06: There is no impact of political environment on employees satisfaction.

H16: There is impact of political environment employees satisfaction.
H07: Evaluation and appraisal of employee does not improved employees satisfaction.
H17: Evaluation and appraisal of employee does improved employees satisfaction
130
H08: Employees satisfaction is not affected by ethics and social responsibilities of the
organization.
H18: Employees satisfaction is affected by ethics and social responsibilities of the
organization.
H09: Internal communication system of organization has no effect on employees

behavior.
H19: Internal communication system of organization has effect on employees behavior.
H010: There is no significant difference among various dimensions of organizational

behavior.
H10: There is significant difference among various dimensions of organizational
behavior.
131
CHAPTER 4
RESEARCH METHODOLOGY
132
CHAPTER 4
RESEARCH METHODOLOGY
This study embraces both qualitative and quantitative research approaches.
DESCRIPTIVE SURVEY:
Review of literature and other available information from various published and
unpublished reports, journals, periodicals, books, newspapers, etc. (including databases
like EBSCO, Pro-quest, India Business Insight Database and others).
FIELD SURVEY
Research Instruments
The research instruments used for collecting primary data were
Questionnaire and Interviews.
Measurement is done on 5 point scale
The questionnaire comprised of questions pertaining to:
General Information
Information related to type of industry
Information related to Organizational Structure
Information related to leadership
Information related to Political Environment
Information related to implementation of evaluation and appraisal
Information related to supervisory style
Information related to internal communication system
Information related to creativity stimulants
Information related to employees behaviour and satisfaction
Information related to ethics & Social responsibility
Information related to power & politics
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Information related to teams and team work
Information related to Absenteeism
Information related to Attrition rate
PILOT TEST:
It is always desirable to conduct a pilot test before administering a questionnaire to the

sample. The pilot test has a role in ensuring that the instrument as a whole functions well
without too much variations, which would be difficult to measure.
Since the study involves dimensions of organizational behviour and its impact on
employees behaviour in pharmaceutical companies. A proper review of the questionnaire
was made and a preliminary examination of the questionnaire was conducted before data
was collected by face to face interview of the employees. The purpose of the test was;
1. To identify any scales those were difficult to comprehend or had redundant

items and revise them prior to conducting the interview of employees.
2. For reliability testing
3. For testing the correctness of the scales of measurement and validity evaluation
4. Calculating the variability of population under survey
5. Refine the questions to cover the indirect questions covering the purpose of data
collection at the same time not shooting direct questions to the employees.
Employees of small scale pharmaceutical companies participated in the phase I of pilot

test. Since the questionnaire was addressed at employees of Small- Scale companies,
Large-scale companies, as well as Medium Scale companies of Pharmaceutical Sector, it
was necessary to test it to a similar kind of group with intellect and maturity levels to
answer such questions. Predominantly the pilot test was conducted on employees of
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small-scale companies of pharmaceutical sector were tested before finalization of the
questionnaire for relevant data collection.
Suggestions received during the pilot study included framing of the questions which
would be easy to understand by the employees of various pharmaceutical companies. The
employees wanted the questions to be specific for the relevant information to be provided
by them. According to the suggestions and results, the initial pool of items was revised
and some corrections made in the final questionnaire. After ensuring the validity and
reliability were adequate, several categories were reduced to 10 groups.
SAMPLING DESIGN
The study has been conducted taking 3 cities from Maharashtra based on their CCA,
HRA. The following list classifies cities based on their CCA and HRA statuses.
Table 4.1 classifies cities based on their CCA and HRA statuses
CCA classification HRA classification City

A-1 A-1 Mumbai
A A Pune
B-1 B-1 Nashik
The table 4.2 below shows the details of size of the Companies, Total Number of
Employees, and Total number of sample selected
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City Company Total number of Sample size
Type employees
Mumbai SSI/MED/LS 14073 600
Pune SSI/MED 8246 300
Nashik SSI/MED 208 100
Total 1000
SSI Small scale Industry

LS- Large scale Industry
MED Medium scale Industry
According to the formula SS= Z2*(p)*(1-p) the sample size from each city required is
C2
Where Z = Z value (eg: 1.96 for 95% confidence)
P = Percentage picking a choice, expressed as decimal (.5 used for sample size
needed)
C = Confidence interval expressed as decimal (eg : .04 = 4)
The total number of sample is 1000 through cluster sampling.
TABULATION AND STATISTICAL ANALYSIS OF DATA:
The responses observed from each of the items in the questionnaire were scored and
tabulated into a master sheet. The statistical tools included Chi-square, T-test, Karl
person Co-relation regression, and ANOVA has been applied to draw logical
conclusions. The analysis was done using SPSS.
INTERPRETATION AND REPORT WRITING:

The analyzed data were finally interpreted to draw the conclusions and reported with the
objective of the study in view.
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LIMITATION OF THE STUDY:
The study is restricted to only selected locations of Mumbai, Pune, and Nasik.
The researcher has used selected Pharmaceutical companies in Mumbai, Pune and
Nasik for survey this may be inadequate to generalize the results on the impact of
organizational behavior on employees behavior.
MNC are not included in the study as part of the research only SSI, LS, and MED
scale Pharmaceutical Companies are included.
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CHAPTER 5
ORGANIZATIONAL BEHAVIOUR
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CHAPTER 5
ORGANIZATIONAL BEHAVIOUR
An organization is defined as a collection of people who work together to achieve a wide

variety of goals. Organizational behavior is defined as the actions and attitudes of people
in organizations. The field of organizational behavior (OB) covers the body of knowledge
derived from these actions and attitudes. It can help managers understand the complexity
within organizations, identify problems, determine the best ways to correct them, and
establish whether the changes would make a significant difference.
Organizational behavior (OB) is the study of human behavior in organizational settings,

how human behavior interacts with the organization, and the organization itself.
Although we can focus on any one of these three areas independently, we must remember
that all three are ultimately connected and necessary for a comprehensive understanding
of organizational behavior. For example, we can study individual behavior (such as the
behavior of a companys CEO or of one of its employees) without explicitly considering
the organization. But because the organization influences and is influenced by the
individual, we cannot fully understand the individuals behavior without knowing
something about the organization. Similarly, we can study an organization without
focusing specifically on each individual within it. But again, we are looking at only one
piece of the puzzle. Eventually, we must consider the other pieces to understand the
whole.
An organization, of course, exists before a particular person joins it and continues to exist
long after he or she has left. Therefore, the organization itself represents a crucial
perspective from which to view organizational behavior. For instance, the consultant
studying turnover would also need to study the structure and culture of Texas
Instruments. An understanding of factors such as the performance evaluation and reward
systems, the decision-making and communication patterns, and the design of the firm
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itself can provide additional insight into why some people decide to stay while others
elect to leave.
A primary goal of organizational behavior is to describe relationships between two or

more behavioral variables. The theories and concepts of the field, for example,
cannot predict with certainty that changing a specific set of workplace variables will
improve an individual employees performance by a certain amount. At best, theories
can suggest that certain general concepts or variables tend to be related to one another in
particular settings. For instance, research might indicate that in one organization,
employee satisfaction and individual perceptions of working conditions correlate
positively. Nevertheless, we may not know if better working conditions lead to more
satisfaction, if more satisfied people see their jobs differently from unsatisfied people, or
if both satisfaction and perceptions of working conditions are actually related through
other variables. Also, the observed relationship between satisfaction and perceptions of
working conditions may be considerably stronger, weaker, or nonexistent in other
settings.
Organizational behavior is descriptive for several reasons: the immaturity of the field, the
complexities inherent in studying human behavior, and the lack of valid, reliable, and
accepted definitions and measures. Whether the field will ever be able to make definitive
predictions and prescriptions is still an open question. But the value of studying
organizational behavior nonetheless is firmly established. Because behavioral processes
pervade most managerial functions and roles, and because the work of organizations is
done primarily by people, the knowledge and understanding gained from the field can
help managers in significant ways.
Study of organizational behaviour is very interesting. Organizational studies encompass

the study of organizations from multiple viewpoints, methods, and levels of analysis. For
instance, one textbook divides these multiple viewpoints into three perspectives: modern,
symbolic, and postmodern. Another traditional distinction, present especially in
American academia, is between the study of "micro" organizational behaviour which
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refers to individual and group dynamics in an organizational setting and "macro"
strategic management and organizational theory which studies whole organizations and
industries, how they adapt, and the strategies, structures and contingencies that guide
them. To this distinction, some scholars have added an interest in "meso" scale structures
- power, culture, and the networks of individuals and i.e. units in organizations and
"field" level analysis which study how whole populations of organizations interact.
Whenever people interact in organizations, many factors come into play. Modern
organizational studies attempt to understand and model these factors. Like all modernist
social sciences, organizational studies seek to control, predict, and explain. There is some
controversy over the ethics of controlling workers' behavior, as well as the manner in
which workers are treated (see Taylor's scientific management approach compared to the
human relations movement of the 1940s). As such, organizational behaviour or OB (and
its cousin, Industrial psychology) have at times been accused of being the scientific tool
of the powerful. Those accusations notwithstanding, OB can play a major role
in organizational development, enhancing organizational performance, as well as
individual and group performance/satisfaction/commitment.
One of the main goals of organizational theorists is, according to Simms (1994) "to
revitalize organizational theory and develop a better conceptualization of organizational
life." An organizational theorist should carefully consider levels assumptions being made
in theory, and is concerned to help managers and administrators.
It is the art on the part of manager to understand, describe, forecast and modify
individual behaviour. Lot of studies have been undertaken in the field of organizational
behaviour and vast literature is available,which need to be studied by practictioners in the
field of managing human resources.
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Various models and research instruments are available to investigate human behaviour.
Various fields like psychology, social psychology, anthropology, sociology, politics,
economics, and medical sciences have contributed to the field of organization behaviour.
Various models in the above fields have enriched the study of organization behaviour. It
is the field of study that investigates the impact on individuals, groups and organizational
structure have on individual behaviour so that the knowledge so achieved can be suitably
modified and applied for organizational effectiveness.
The study of organizational behaviour relates to the study of attitude, perception,

learning, values at individual level. The study is undertaken pertaining to managing
stress, conflicts, intergroup behaviour, decision making at group level. Management of
change, development of organizational culture, designing and redesigning of jobs, and
various organizational development strategies are required to be undertaken by leaders
for organizational effectiveness. It is the responsibility of the managers to evolve
appropriate strategies to study organizational components.
The first component is people. The study of organizational behaviour involves identifying
need spectrum of the people, managing interpersonal relationship, understanding of
individual objectives and co-relating organizational strategies accordingly.
The second component is understanding of organizational structure and its modification

based on the need of the hour. Manager should decide upon the nature of structure and
ensure unity of command, number of levels that may be required for effective comma and
and control. Communication, delegation of authority, well defined policies, rules,
regulation, systems, procedures and processes.
Introduction of latest technology is an essential part of organizational development that

should be taken care of by the manager responsible for running the organization. Jobs
should be allotted to the individual based on the aptitude and the processes must be
compatible with the technology being used. One of the most important components is
environment. While internal environment relates to various personnel policies and
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corresponding managerial actions, the external environment relates to cultural, social,
legal, and governmental rules and regulations that should be taken care of.
A technological change has made it imperative on the part of managers that they should
take care of employees and meet their social expectations so that organizational goals can
be achieved. The present study on Organizational Behaviour depends on dimensions such
as Organizational structure, Leadership, Political environment, Implementation of
evaluation and performance appraisal, Supervisory style, internal communication system,
Power and Politics, Teams and teams work. The detailed description of these dimensions
is given below
ORGANIZATIONAL STRUCTURE:
An organizational structure consists of activities such as task allocation, coordination and

supervision, which are directed towards the achievement of organizational aims. It can
also be considered as the viewing glass or perspective through which individuals see their
organization and its environment. Most organizations have hierarchical structures, but not
all. An organization can be structured in many different ways, depending on their
objectives. The structure of an organization will determine the modes in which it operates
and performs. Organizational structure allows the expressed allocation of responsibilities
for different functions and processes to different entities such as branch , department,
workgroup and individual.
Organizational structure affects organizational action in two big ways. First, it provides
the foundation on which standard operating procedures and routines rest. Second, it
determines which individuals get to participate in which decision-making processes, and
thus to what extent their views shape the organizations actions. The set organizational
structure may not coincide with facts, evolving in operational action. Such divergence
decreases performance, when growing. E.g. a wrong organizational structure may hamper
cooperation and thus hinder the completion of orders in due time and within limits of
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resources and budgets. Organizational structures shall be adaptive to process
requirements, aiming to optimize the ratio of effort and input to output.
HISTORY
Organizational structures developed from the ancient times of hunters and collectors in
tribal organizations through highly royal and clerical power structures to industrial
structures and today's post-industrial structures. As pointed out by Mohr (1982) the early
theorists of organizational structure, Taylor, Fayol, and Weber "saw the importance of
structure for effectiveness and efficiency and assumed without the slightest question that
whatever structure was needed, people could fashion accordingly.
Organizational structure was considered a matter of choice... When in the (1930s), the
rebellion began that came to be known as human relations theory, there was still not a
denial of the idea of structure as an artifact, but rather an advocacy of the creation of a
different sort of structure, one in which the needs, knowledge, and opinions of employees
might be given greater recognition." However, a different view arose in the (1960s),
suggesting that the organizational structure is "an externally caused phenomenon, an
outcome rather than an artifact." In the 21st century, organizational theorists such as Lim,
Griffiths, and Sambrook (2010) are once again proposing that organizational structure
development is very much dependent on the expression of the strategies and behavior of
the management and the workers as constrained by the power distribution between them,
and influenced by their environment and the outcome.
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ORGANIZATIONAL STRUCTURE TYPES
Pre-bureaucratic structures
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure

is most common in smaller organizations and is best used to solve simple tasks. The
structure is totally centralized. The strategic leader makes all key decisions and most
communication is done by one on one conversations. It is particularly useful for new
(entrepreneurial) business as it enables the founder to control growth and development.
They are usually based on traditional domination or charismatic domination in the sense
of Max Weber's tripartite classification of authority Bureaucratic structures Weber (1948)
gives the analogy that the fully developed bureaucratic mechanism compares with other
organizations exactly as does the machine compare with the non-mechanical modes of
production. Precision, speed, unambiguity, strict subordination, reduction of friction
and of material and personal costs- these are raised to the optimum point in the strictly
bureaucratic administration.
Bureaucratic structures have a certain degree of standardization. They are better suited
for more complex or larger scale organizations, usually adopting a tall structure. The
tension between bureaucratic structures and non-bureaucratic is echoed in Burns and
Stalker's distinctions between mechanistic and organic structures.The Weberian
characteristics of bureaucracy are clear defined roles and responsibilities and hierarchical
structure
Post-bureaucratic The term of post bureaucratic is used in two senses in the

organizational literature: one generic and one much more specific. In the generic sense
the term post bureaucratic is often used to describe a range of ideas developed since the
1980s that specifically contrast themselves with Weber's ideal type bureaucracy. This
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may include total quality management, and matrix management, amongst others. None of
these however has left behind the core tenets of Bureaucracy. Hierarchies still exist,
authority is still Weber's rational, legal type, and the organization is still rule bound.
Heckscher, arguing along these lines, describes them as cleaned up bureaucracies, rather
than a fundamental shift away from bureaucracy. Gideon Kunda, in his classic study of
culture management at 'Tech' argued that 'the essence of bureaucratic control - the
formalisation, codification and enforcement of rules and regulations - does not change in
principle.....it shifts focus from organizational structure to the organization's culture'.
Another smaller group of theorists have developed the theory of the Post-Bureaucratic
Organization., provide a detailed discussion which attempts to describe an organization
that is fundamentally not bureaucratic. Charles Heckscher has developed an ideal type,
the post-bureaucratic organization, in which decisions are based on dialogue and
consensus rather than authority and command, the organization is a network rather than a
hierarchy, open at the boundaries (in direct contrast to culture management); there is an
emphasis on meta-decision making rules rather than decision making rules.
This sort of horizontal decision making by consensus model is often used in housing
cooperatives, other cooperatives and when running a non-profit or community
organization. It is used in order to encourage participation and help to empower people
who normally experience oppression in groups. Still other theorists are developing a
resurgence of interest in complexity theory and organizations, and have focused on how
simple structures can be used to engender organizational adaptations. For instance,
Miner et al. (2000) studied how simple structures could be used to generate
improvisational outcomes in product development. Their study makes links to simple
structures and improviser learning. Other scholars such as Jan Rivkin and Sigglekow,and
Nelson Repenning revive an older interest in how structure and strategy relate in
dynamic environments.
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Functional structure Employees within the functional divisions of an organization tend
to perform a specialized set of tasks, for instance the engineering department would be
staffed only with software engineers. This leads to operational efficiencies within that
group. However it could also lead to a lack of communication between the functional
groups within an organization, making the organization slow and inflexible.
As a whole, a functional organization is best suited as a producer of standardized goods

and services at large volume and low cost. Coordination and specialization of tasks are
centralized in a functional structure, which makes producing a limited amount of
products or services efficient and predictable. Moreover, efficiencies can further be
realized as functional organizations integrate their activities vertically so that products are
sold and distributed quickly and at low cost. For instance, a small business could make
components used in production of its products instead of buying them. This benefits the
organization and employees faiths.
Divisional structure Also called a "product structure", the divisional structure groups
each organizational function into a division. Each division within a divisional structure
contains all the necessary resources and functions within it. Divisions can be categorized
from different points of view. One might make distinctions on a geographical basis (a US
division and an EU division, for example) or on product/service basis (different products
for different customers: households or companies). In another example, an
automobile company with a divisional structure might have one division for SUVs,
another division for subcompact cars, and another division for sedans. Each division may
have its own sales, engineering and marketing departments.
Matrix structure The matrix structure groups employees by both function and product.
This structure can combine the best of both separate structures. A matrix organization
frequently uses teams of employees to accomplish work, in order to take advantage of the
strengths, as well as make up for the weaknesses, of functional and decentralized forms.
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An example would be a company that produces two products, "product a" and "product
b". Using the matrix structure, this company would organize functions within the
company as follows: "product a" sales department, "product a" customer service
department, "product a" accounting, "product b" sales department, "product b" customer
service department, "product b" accounting department. Matrix structure is amongst the
purest of organizational structures, a simple lattice emulating order and regularity
demonstrated in nature.
Weak/Functional Matrix: A project manager with only limited authority is assigned to

oversee the cross- functional aspects of the project. The functional managers maintain
control over their resources and project areas.
Balanced/Functional Matrix: A project manager is assigned to oversee the project.

Power is shared equally between the project manager and the functional managers. It
brings the best aspects of functional and projectized organizations. However, this is the
most difficult system to maintain as the sharing power is delicate proposition.
Strong/Project Matrix: A project manager is primarily responsible for the project.

Functional managers provide technical expertise and assign resources as needed.Among
these matrixes, there is no best format; implementation success always depends on
organization's purpose and function.
Organizational circle: moving back to flat
The flat structure is common in small companies (enterprenerial start-ups, university spin
offs). As the company grows it becomes more complex and hierarchical, which leads to
an expanded structure, with more levels and departments.
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Often, it would result in bureaucracy, the most prevalent structure in the past. It is still,
however, relevant in former Soviet Republics, China, and most governmental
organizations all over the world. Shell Group used to represent the typical bureaucracy:
top-heavy and hierarchical. It featured multiple levels of command and duplicate service
companies existing in different regions. All this made Shell apprehensive to market
changes, leading to its incapacity to grow and develop further. The failure of this
structure became the main reason for the company restructuring into a matrix.
In general, over the last decade, it has become increasingly clear that through the forces
of globalization, competition and more demanding customers, the structure of many
companies has become flatter, less hierarchical, more fluid and even virtual.
Team
One of the newest organizational structures developed in the 20th century is team. In
small businesses, the team structure can define the entire organization. Teams can be both
horizontal and vertical. While an organization is constituted as a set of people who
synergize individual competencies to achieve newer dimensions, the quality of
organizational structure revolves around the competencies of teams in totality. For
example, every one of the Whole Foods Market stores, the largest natural-foods grocer in
the US developing a focused strategy, is an autonomous profit centre composed of an
average of 10 self-managed teams, while team leaders in each store and each region are
also a team. Larger bureaucratic organizations can benefit from the flexibility of teams as
well. Xerox, Motorola, and DaimlerChrysler are all among the companies that actively
use teams to perform tasks.
Network
Another modern structure is network. While business giants risk becoming too clumsy to
proact (such as), act and react efficiently, the new network organizations contract out any
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business function that can be done better or more cheaply. In essence, managers in
network structures spend most of their time coordinating and controlling external
relations, usually by electronic means.
Virtual
A special form of boundaryless organization is virtual. Hedberg, Dahlgren, Hansson, and

Olve (1999) consider the virtual organization as not physically existing as such, but
enabled by software to exist. The virtual organization exists within a network of
alliances, using the Internet. This means while the core of the organization can be small
but still the company can operate globally be a market leader in its niche. According to
Anderson, because of the unlimited shelf space of the Web, the cost of reaching niche
goods is falling dramatically. Although none sell in huge numbers, there are so many
niche products that collectively they make a significant profit, and that is what made
highly innovative Amazon.com so successful.
Figure 5.1 Hierarchy-Community Phenotype Model of Organizational Structure
Hierarchy-Community Phenotype Model of Organizational Structure
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In the 21st century, even though most, if not all, organizations are not of a pure
hierarchical structure, many managers are still blind-sided to the existence of the flat
community structure within their organizations.
The business firm is no longer just a place where people come to work. For most of the
employees, the firm confers on them that sense of belonging and identity- the firm has
become their village, their community.[26] The business firm of the 21st century is not
just a hierarchy which ensures maximum efficiency and profit; it is also the community
where people belong to and grow together- where their affective and innovative needs are
met.
Lim, Griffiths, and Sambrook (2010) developed the Hierarchy-Community Phenotype

Model of Organizational Structure borrowing from the concept of Phenotype from
genetics. "A phenotype refers to the observable characteristics of an organism. It results
from the expression of an organisms genes and the influence of the environment. The
expression of an organisms genes is usually determined by pairs of alleles. Alleles are
different forms of a gene. In our model, each employees formal, hierarchical
participation and informal, community participation within the organization, as
influenced by his or her environment, contributes to the overall observable characteristics
(phenotype) of the organization. In other words, just as all the pair of alleles within the
genetic material of an organism determines the physical characteristics of the organism,
the combined expressions of all the employees formal hierarchical and informal
community participation within an organization give rise to the organizational structure.
Due to the vast potentially different combination of the employees formal hierarchical
and informal community participation, each organization is therefore a unique phenotype
along a spectrum between a pure hierarchy and a pure community (flat) organizational
structure.
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LEADERSHIP
The word leadership can refer to the process of leading, the concept of leading and those
entities that perform one or more acts of leading. In our day to day life, leadership can be
viewed as either actual or potential.
Actual leader gives guidance or direction, as in the phrase the emperor has
provided satisfactory leadership.
Potential leader has the capacity or ability to lead, as in the phrase she could
have exercised effective leadership, or as implies in the concept born to lead.
Leadership can have a formal aspect (as in most political or business leadership)or
an informal one (as in most friendships). The abstract leadership usually implies
that the entities doing the leading possess some leadership skills or
competencies; while the term leading suggests action of leading.
Several types of entities may provide or exhibit leadership, actual or potential.

Leadership emerges when an entity as leader contrives to receive deference
from other entities who become followers. The process of getting deference
can become competitive in that the emerging leader draws followers from
the factions of the prior or alternative leaders. In a democratic country, the
people retain sovereignty (popular sovereignty) but delegate day-to-day
administration and leadership to elected representatives.
Competence or perceived competence provides a possible basis for selecting

leadership elites from a broader pool of potential talent. Political lobbying may
prove necessary in electoral systems, but immediately demonstrated skill and
character may secure leadership in smaller groups such as a service agency.
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Many organizations and groups aim to identify, foster and promote what they see
as leadership potential or ability - especially among younger members of society.
The issues of succession planning or of legitimating a leader become important
when leadership (particularly individual leadership) might or must change due to
term-expiry, accident or senescence (growing old).
Scope of Leadership
One can govern oneself, or one can govern the whole earth. In between, we may
find leaders who operate primarily within families, bands, tribes, states, nations or
empires.
In addition to these, we also find, for example, religious leaders (potentially with
their own internal hierarchies), work-place leaders (executives, officers,
senior/upper mangers, middle managers, staff managers, line managers, team
leaders, supervisors) and leaders of voluntary associations.
Believing that charisma and personality alone can work miracles, most leaders
operate within a structure of supporters and groups of executives who carry out
and monitor the expressed or filtered down will of the leader. This undercutting
the importance of leadership may serve as a reminder of the existence of the
follower. A more or less formal bureaucracy can promote an ordinary personality
as an entirely effective leader. Bureaucratic organizations can also raise
incompetent people to levels of leadership. These leaders may build coalitions and
alliances. Political parties abound with such leaders. Still others depend on
rapport with the masses: they labor on the actual work place or stand in the front-
line of battle, leading by example.
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Suggested Qualities of Leadership
Studies of leadership have suggested qualities that people often associate with
leadership. They include the following qualities.
Guiding others through providing a role model and through willingness to

serve others first.
Talent and technical/ specific skill at some task at hand.
Initiative and entrepreneurial drive
Charismatic inspiration attractiveness to others and the ability to leverage
this esteem to motivate others
Preoccupation with a role a dedication that consumes much of leaders
life - service to a cause.
A clear sense of purpose (or mission) - clear goals - focus - commitment
Results-orientation - directing every action towards a mission
prioritizing activities to spend time where results most accrue.
Optimism very few pessimists become leaders.
Rejection of determinism - belief in ones ability to make a difference
Ability to encourage and nurture those that report to them delegate in
such a way as people will grow
Role models - leaders may adopt a persona that encapsulates their mission
and lead by example
Self-knowledge (in non-bureaucratic structures)
Self-awareness - the ability to lead (as it were) ones own self prior to
leading other selves similarly.
With regards to people and to projects, the ability to choose winners -
recognizing that, unlike with skills, one cannot (in general) teach attitude.
Note that picking winners ( choosing winners ) carries implications of
gamblers luck as well as of the capacity to take risks, but true leaders
like gamblers but unlike false leaders, base their decisions on realistic
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insight (and usually on many other factors partially derived from real
wisdom).
Understanding what others say, rather than listening to how they say
things - this could partly sum this quality up as walking in someone
elses shoes ( to use a common clich).
Situational leadership theory (Stodgdill 1957 ) proceeds from the
assumption that different situations call for different traits. According to
this group of theories, no single optimal psychographic profile of a leader
exists. It has been said that leadership behavior becomes a function not
only of the characteristics of the leader, but of the characteristics of
followers as well. Other situational leadership models introduce a variety
of variables. These variables include.
The nature of the task (structured or routine)
Organizational policies, climate and culture
The preferences of the leaders superiors
The expectations of peers.
The reciprocal responses of followers
Thus s leadership is essentially about managing an organization on the basis of certain

individual and situational qualities of managers. But there are several variants of
leadership depending upon situation and kind of organization. An understanding of these
various categories will help the managers of Adult Learning Centers to run these centers
in an efficient way.
Leadership and Management
Some commentators (for example, Cogner (1992) link leadership closely with the idea of
management; some would even regard the two as synonymous. If one accepts this
premise, one can view leadership as:
centralized or decentralized
broad or focused
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decision oriented or morale centered
intrinsic or derived from some authority
Any of the bipolar labels traditionally ascribed to management style could also apply to
leadership style. Hersey and Blanchard (1982) use this approach. They claim that
management merely consists of leadership applied to business situations; or in other
words: management forms a sub-set of the broader process of leadership. According to
Hersey and Blanchard (1982) , Leadership occurs any time one attempts to influence
the behavior of an individual or group, regardless of the reason. Management is a kind of
leadership in which the achievement of organizational goals is paramount. However, a
clear distinction between management and leadership nevertheless prove useful. This
would allow for a reciprocal relationship between leadership and management, implying
that an effective manager should possess leadership skills, and an effective leader should
demonstrate management skills.
Zaleznik (1977) for example, delineated differences between leadership and m

management. He saw leaders inspiring visionaries, concerned about substance; while he
views managers as planners who have concerns with process. Bennis (1989) further
explicated a dichotomy between managers and leaders. He drew the following twelve
distinctions between the two groups.
Managers administer, leaders innovate.
Managers ask how and when, leaders ask what and why.
Managers focus on systems, leaders focus on people
Managers do things right, leaders do the right things
Managers maintain, leaders develop
Managers rely on control, leaders inspire trust
Managers have a short-term perspective, leaders have a longer- term perspective
Managers accept the status-quo, leaders challenge the status-quo
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Managers have an eye on the bottom line, leaders have an eye on the horizon
Managers imitate, leaders originate
Managers emulate the classic good soldier, leaders are their own person
Managers copy, leaders show originality.
POLITICAL ENVIRONMENT:
No matter how attractive the economic prospects of a particular country or region are,
doing business there might prove to be financially disastrous if the host governments
inflict(s) heavy financial penalties on a company or if unanticipated events in the political
arena lead to the loss of income-generating assets.
The political environment in which the firm operates (or plan to operate) will have a
significant impact on a company's international marketing activities. The greater the level
of involvement in a foreign markets, the greater the need to monitor the political climate
of the countries business is conducted. Changes in government often result in changes in
policy and attitudes towards foreign business. Bearing in mind that a foreign company
operates in a host country at the discretion of the government concerned, the government
can either encourage foreign activities by offering attractive opportunities for investment
and trade, or discourage its activities by imposing restrictions such as import quotas, etc.
An exporter that is continuously aware of shifts in government attitude, will be able to
adapt export marketing strategies accordingly.
Nearly all governments today play active roles in their countries' economies. Although
evident to a greater or lesser extent in most countries, government ownership of
economic activities is still prevalent in the former centrally planned economies, as well as
in certain developing countries which lack a sufficiently well developed private sector to
support a free market system.
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The implications of government ownership to a company marketing abroad might be that
certain sectors of the foreign market are the exclusive preserve of government enterprise
or that the company is obliged to sell directly to a state trading organisation. In either
case, the company's influence on the market is greatly reduced. Similarly, if an exporter
is seeking to establish a subsidiary in a country where there is a high degree of state
influence over the factors of production, the investor should bear in mind that marketing
activities in the country concerned may be restricted and that the so-called controllable
elements of the marketing mix will be less controllable.
Of primary concern to an exporter should be the stability of the target country's political
environment. A loss of confidence in this respect could lead to a company having to
reduce its operations in the market or to withdraw from the market altogether. One of the
surest indicators of political instability is a frequent change in regime. Although a change
in government need not be accompanied by violence, it often heralds a change in policy
towards business, particularly international business. Such a development could impact
harshly on a firms long- term international marketing programme.
Reflected in a government's attitudes and policies towards foreign business are its ideas
about how best to promote national interest in the light of the country's economic and
political resources and objectives. Foreign products and investment seen to be vital to the
growth and development of the economy often receive favourable treatment from the
government in the form of reduced tax, exemption from quotas, etc. On the other hand,
products considered by a government to be non-essential, undesirable, or a threat to local
industry are frequently subjected to a variety of import restrictions such as quotas and
tariffs. It is also important to be aware of the nature of the relationship between South
Africa and the foreign target market. This was a major consideration during South
Africa's political isolation. Fortunately, South Africa's international relations have
normalised and today South Africa is viewed very favourably, from a political
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perspective, by the rest of the world. The political environment is connected to the
international business environment through the concept of political risk.
Political Risk
Political risk can be defined as the impact of political change on the export firms
operations and decision-making process.
Political risk is determined differently for different companies, as not all of them will be
equally affected by political changes. For example, industries requiring heavy capital
investment are generally considered to be more vulnerable to political risk than those
requiring less capital investment. Vulnerability stems from the extent of capital invested
in the export market, e.g. capital-intensive extracting or energy-related businesses
operating in the foreign market are more vulnerable than manufacturing companies
exporting from a South African base.
Political risk is of a macro nature when politically inspired environmental changes affect
all foreign investment. It is of a micro nature when the environmental changes are
intended to affect only selected fields of business activity or foreign firms with specific
characteristics, (possibly by expropriation). Expropriation is the take-over of a foreign
firm located in a host country, by the host country's government.
All organisations doing business abroad should be aware of the fact that what they do
could be the object of some political action. Hence, they need to recognise that their
success or failure could depend on how well they cope with political decisions, and how
well they anticipate changes in political attitudes and policies.
IMPLIMENTATION OF EVALUATION AND APPRAISAL SYSTEM
Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal
is measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.
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Most companies have a formal performance appraisal system in which employee job
performance is rated on a regular basis, usually once a year. A good performance
appraisal system can greatly benefit an organization. It helps direct employee behavior
toward organizational goals by letting employees know what is expected of them, and it
yields Information for making employment decisions, such as those regarding pay raises,
promotions, and discharges.
Developing and implementing an effective system is no easy task, however. For instance,
one study found that a majority of companies65 percentare dissatisfied with their
performance appraisal systems. Analysts have found that a fairly low degree of reliability
and validity remains a major bug in most appraisal systems. Many such systems are met
with considerable resistance by those whose performance is being appraised, thus
hampering the possibilities for effectiveness. While accurate and informative appraisal
systems can be a major asset to a business, they are too often an unrealized goal.
There are three major steps in the performance appraisal process: identification,
measurement, and management. With identification, the behaviors necessary for
successful performance are determined. Measurement involves choosing the appropriate
instrument for appraisal and assessing performance. Management, which is the ultimate
goal, is the reinforcing of good performance and the correction of poor performance.
Each step is described below. Additionally, management by objectives, which involves
evaluating performance without a traditional performance appraisal, is described.
IDENTIFICATION
The organization must determine for each job family the skills and behaviors that are
necessary to achieve effective performance. The organization should identify dimensions,
which are broad aspects of performance. For instance, "quality of work" is a dimension
required in many jobs. To determine which dimensions are important to job performance,
the organization should rely on an accurate and up-to-date job analysis. Job descriptions
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written from job analyses should offer a detailed and valid picture of which job behaviors
are necessary for successful performance.
In the identification stage, the company must also choose who will rate employee
performance. Supervisors, peers, and the employees themselves may provide
performance ratings. In most instances, performance appraisals are the responsibility of
the immediate supervisor of an employee. Supervisors rate performance because they are
usually the ones most familiar with the employee's work. Additionally, appraisals serve
as management tools for supervisors, giving them a means to direct and monitor
employee behavior. Indeed, if supervisors are not allowed to make the appraisals, their
authority and control over their subordinates could be diminished.
While supervisory ratings can be quite valuable, some companies have added peer
appraisals to replace or supplement those given by the supervisor. Naturally, peers and
supervisors each view an individual's performance from different perspectives.
Supervisors usually possess greater information about job requirements and performance
outcomes. On the other hand, peers often see a different, more realistic view of the
employee's job performance because people often behave differently when the boss is
present. Using peer ratings to supplement supervisory ratings may thus help to develop a
consensus about an individual's performance. It may also help eliminate biases and lead
to greater employee acceptance of appraisal systems.
Potential problems may limit the usefulness of peer ratings, however, especially if they
are used in lieu of supervisory ratings. First, the company must consider the nature of its
reward system. If the system is highly competitive, peers may perceive a conflict of
interest. High ratings given to a peer may be perceived as harming an individual's own
chances for advancement. Second, friendships may influence peer ratings. A peer may
fear that low ratings given to a colleague will harm their friendship or hurt the
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cohesiveness of the work group. On the other hand, some peer ratings may be influenced
by a dislike for the employee being rated.
Some organizations use self-ratings to supplement supervisory ratings. As one might

expect, self-ratings are generally more favorable than those made by supervisors and
peers and therefore may not be effective as an evaluative tool. However, self-ratings may
be used for employee development. Their use may uncover areas of subordinate-
supervisor disagreement, encourage employees to reflect on their strengths and
weaknesses, lead to more constructive appraisal interviews, and make employees more
receptive to suggestions.
MEASUREMENT
Once the appropriate performance dimensions have been established for jobs, the
organization must determine how best to measure the performance of employees. This
raises the critical issue of which rating form to use. In the vast majority of organizations,
managers rate employee job performance on a standardized form. A variety of forms
exist, but they are not equally effective. To be effective, the form must be relevant and
the rating standards must be clear. Relevance refers to the degree to which the rating form
includes necessary information, that is, information that indicates the level or merit of a
person's job performance. To be relevant, the form must include all the pertinent criteria
for evaluating performance and exclude criteria that are irrelevant to job performance.
The omission of pertinent performance criteria is referred to as criterion deficiency. For

example, an appraisal form that rates the performance of police officers solely on the
basis of the number of arrests made is deficient because it fails to include other aspects of
job performance, such as conviction record, court performance, number of
commendations, and so on. Such a deficient form may steer employee behavior away
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from organizational goals; imagine if police officers focused only on arrests and
neglected their other important duties.
When irrelevant criteria are included on the rating form, criterion contamination occurs,
causing employees to be unfairly evaluated on factors that are irrelevant to the job. For
example, criterion contamination would occur if an auto mechanic were evaluated on the
basis of personal cleanliness, despite the fact that this characteristic has nothing to do
with effective job performance.
Performance standards indicate the level of performance an employee is expected to

achieve. Such standards should be clearly defined so that employees know exactly what
the company expects of them. For instance, the standard "load a truck within one hour" is
much clearer than "work quickly." Not only does the use of clear performance standards
help direct employee behavior, it also helps supervisors provide more accurate ratings;
two supervisors may disagree on what the term "quickly" means, but both attribute the
same meaning to "one hour."
To meet the standards described in the previous section, a firm must use an effective
rating form. The form provides the basis for the appraisal, indicating the aspects or
dimensions of performance that are to be evaluated and the rating scale for judging that
performance. Human Resources (HR) experts have developed a variety of instruments for
appraising performance. A description of the most commonly used instruments, along
with their strengths and weaknesses, is given in the following paragraphs. A summary of
these instruments appears in Exhibit 1. It should be noted, however, that companies can
create additional types of instruments. For instance, they can rate employees on job task
performance using graphic or behavior rating scales.
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EMPLOYEE COMPARISON SYSTEMS.
Most appraisal instruments require raters to evaluate employees in relation to some

standard of excellence. With employee comparison systems, however, employee
performance is evaluated relative to the performance of other employees. In other words,
employee comparison systems use rankings, rather than ratings. A number of formats can
be used to rank employees, such as simple rankings, paired comparisons, or forced
distributions. Simple rankings require raters to rank-order their employees from best to
worst, according to their job performance. When using the paired comparison approach, a
rater compares each possible pair of employees. For example, Employee 1 is compared to
Employees 2 and 3, and Employee 2 is compared to Employee 3. The employee winning
the most "contests" receives the highest ranking. A forced distribution approach requires
a rater to assign a certain percentage of employees to each category of excellence, such as
best, average, or worst. Forced distribution is analogous to grading on a curve, where a
certain percentage of students get As, a certain percentage get Bs, and so forth.
Employee comparison systems are low cost and practical; the ratings take very little time
and effort. Moreover, this approach to performance appraisal effectively eliminates some
of the rating errors discussed earlier. Leniency is eliminated, for instance, because the
rater cannot give every employee an outstanding rating. In fact, by definition, only 50
percent can be rated as being above average. By forcing raters to specify their best and
worst performers, employment decisions such as pay raises and promotions become
much easier to make.
Employee comparison systems are plagued with several weaknesses. Because the rating
standards for judging performance are vague or nonexistent, the accuracy and fairness of
the ratings can be seriously questioned. Moreover, employee comparison systems do not
specify what a worker must do to receive a good rating and, thus, they fail to adequately
direct or monitor employee behavior. Finally, companies using such systems cannot
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compare the performance of people from different departments fairly. For example, the
sixth-ranked employee in Department A may be a better performer than the top-ranked
employee in Department B.
GRAPHIC RATING SCALE
A graphic rating scale (GRS) presents appraisers with a list of dimensions, which are
aspects of performance that determine an employee's effectiveness. Examples of
performance dimensions are cooperativeness, adaptability, maturity, and motivation.
Each dimension is accompanied by a multi-point (e.g., 3, 5, or 7) rating scale. The points
along the scale are defined by numbers and/or descriptive words or phrases that indicate
the level of performance. The midpoint of the scale is usually anchored by such words as
"average," "adequate," "satisfactory," or "meets standards."
Many organizations use graphic rating scales because they are easy to use and cost little
to develop. HR professionals can develop such forms quickly, and because the
dimensions and anchors are written at a general level, a single form is applicable to all or
most jobs within an organization. Graphic rating scales do present a number of problems,
however. Such scales may not effectively direct behavior; that is, the rating scale does not
clearly indicate what a person must do to achieve a given rating, thus employees are left
in the dark as to what is expected of them. For instance, an employee given a rating of
two on "attitude" may have a difficult time figuring out how to improve.
Graphic rating scales also fail to provide a good mechanism for providing specific, non-
threatening feedback. Negative feedback should focus on specific behaviors rather than
on the vaguely defined dimensions the GRSs describe. For example, if told that they are
not dependable, most employees would become angered and defensive; they would
become less angry and defensive if such feedback were given in behavioral terms: "Six
customers complained to me last week that you did not return their phone calls."
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Another problem with GRSs concerns rating accuracy. Accurate ratings are not likely to
be achieved because the points on the rating scale are not clearly defined. For instance,
two raters may interpret the standard of "average" in very different ways. The failure to
clearly define performance standards can lead to a multitude of rating errors (as noted
earlier) and provides a ready mechanism for the occurrence of bias. U.S. courts
consequently frown on the use of GRSs. One court noted that ratings made on a graphic
rating scale amounted to no more than a "subjective judgment call," and ruled that such
rating scales should not be used for promotion decisions because of the potential bias
inherent in such a subjective process.
BEHAVIORALLY-ANCHORED RATING SCALES
A behaviorally-anchored rating scale (BARS), like a graphic rating scale, requires

appraisers to rate employees on different performance dimensions. The typical BARS
includes seven or eight performance dimensions, each anchored by a multi-point scale.
But the rating scales used on BARS are constructed differently than those used on
graphic rating scales. Rather than using numbers or adjectives, a BARS anchors each
dimension with examples of specific job behaviors that reflect varying levels of
performance.
The process for developing a BARS is rather complex. Briefly, it starts with a job
analysis, using the critical incident technique. This involves having experts generate a list
of critical incidentsor specific examples of poor, average, and excellent behaviors
that are related to a certain job. The incidents are then categorized by dimension. Finally,
a rating scale is developed for each dimension, using these behaviors as "anchors" to
define points along the scale.
When initially formulated, BARS were expected to be vastly superior to graphic rating
scales. HRM experts thought the behavioral anchors would lead to more accurate ratings
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because they enabled appraisers to better interpret the meaning of the various points
along the rating scale. That is, rather than having the rater try to pinpoint the meaning of
a vague anchor such as "excellent," the rater would have improved accuracy by having a
critical incident as an anchor. As we shall see, however, this expectation has not been
met. Perhaps the greatest strength of BARS is its ability to direct and monitor behavior.
The behavioral anchors let employees know which type of behavior are expected of them
and gives appraisers the opportunity to provide behaviorally-based feedback.
The superiority of BARS over graphic rating scales has not been substantiated by
research. In fact, the great majority of studies on this topic have failed to provide
evidence that justifies the tremendous amount of time and effort involved in developing
and implementing BARS. The failures of BARS may lie in the difficulty raters
experience when trying to select the one behavior on the scale that is most indicative of
the employee's performance level. Sometimes an employee may exhibit behaviors at both
ends of the scale, so the rater does not know which rating to assign.
BEHAVIOR OBSERVATION SCALES.
A behavior observation scale (BOS) contains a list of desired behaviors required for the
successful performance of specific jobs, which are assessed based on the frequency with
which they occur. The development BOS, like BARS, also begins with experts
generating critical incidents for the jobs in the organization and categorizing these
incidents into dimensions. One major difference between BARS and BOS is that, with
BOS, each behavior is rated by the appraiser.
When using BOS, an appraiser rates job performance by indicating the frequency with
which the employee engages in each behavior. A multi-point scale is used ranging from
"almost never" to "almost always." An overall rating is derived by adding the employee's
score on each behavioral item. A high score means that an individual frequently engages
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in desired behaviors, and a low score means that an individual does not often engage in
desired behaviors.
Because it was developed more recently, the research on BOS is far less extensive than
that on BARS. The available evidence, however, is favorable. One study found that both
managers and subordinates preferred appraisals based on BOS to both BARS and graphic
rating scales. The same study found that equal employment opportunity attorneys
believed BOS is more legally defensible than the other two approaches.
Because raters do not have to choose one behavior most descriptive of an employee's
performance level, the problem noted earlier regarding BARS does not arise. Moreover,
like BARS, BOS is effective in directing employees' behavior because it specifies what
they need to do in order to receive high performance ratings. Managers can also
effectively use BOS to monitor behavior and give feedback in specific behavioral terms
so that the employees know what they are doing right and which behavior needs to be
corrected. Like BARS, however, a BOS instrument takes a great deal of time to develop.
Moreover, a separate instrument is needed for each job (since different jobs call for
different behaviors), so the method is not always practical. Developing a BOS for a
particular job would not be cost-efficient unless the job had many incumbents.
ACCURACY OF THE RATINGS.
Accurate ratings reflect the employees' actual job performance levels. Employment
decisions that are based on inaccurate ratings are not valid and would thus be difficult to
justify if legally challenged. Moreover, employees tend to lose their trust in the system
when ratings do not accurately reflect their performance levels, and this causes morale
and turnover problems. Unfortunately, accurate ratings seem to be rare. Inaccuracy is
most often attributable to the presence of rater errors, such as leniency, severity, central
tendency, halo, and recency errors. These rating errors occur because of problems with
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human judgment. Typically, raters do not consciously choose to make these errors, and
they may not even recognize when they do make them.
Leniency error occurs when individuals are given ratings that are higher than actual
performance warrants. Leniency errors most often occur when performance standards are
vaguely defined. That is, an individual who has not earned an excellent rating is most
likely to receive one when "excellent" is not clearly defined. Why do appraisers distort
their ratings in an upward or downward direction? Some do it for political reasons; that
is, they manipulate the ratings to enhance or protect their self-interests. In other instances,
leniency and severity come about from a rater's lack of conscientiousness. Raters may
allow personal feelings to affect their judgments; a lenient rating may be given simply
because the rater likes the employee.
Severity error occurs when individuals are given ratings that are lower than actual
performance warrants. Severe ratings may be assigned out of a dislike for an individual,
perhaps due to personal bias. A male appraiser may, for example, underrate a highly-
performing female employee because she threatens his self-esteem; a disabled employee
may receive an unduly low rating because the employee's presence makes the appraiser
feel embarrassed and tense; or an appraiser may provide harsh ratings to minorities out of
a fear and distrust of people with different nationalities or skin color. Alternately, a
severe rating may be due to the very high standards of a rater, or to "send a message" to
motivate employees to improve.
When raters make leniency and severity errors, a firm is unable to provide its employees
with useful feedback regarding their performance. An employee who receives a lenient
rating may be lulled into thinking that performance improvement is unnecessary. Severity
errors, on the other hand, can create morale and motivation problems and possibly lead to
discrimination lawsuits.
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Central tendency error occurs when appraisers purposely avoid giving extreme ratings
even when such ratings are warranted. For example, when rating subordinates on a scale
that ranges from one to five, an appraiser would avoid giving any ones or fives. When
this error occurs, all employees end up being rated as average or near average, and the
employer is thus unable to discern who its best and worst performers are. Central
tendency error is likely the result of administrative procedures. That is, it frequently
occurs when an organization requires appraisers to provide extensive documentation to
support extreme ratings. The extra paperwork often discourages appraisers from
assigning high or low ratings. Central tendency errors also occur when the end points of
the rating scale are unrealistically defined (e.g., a 5 effectively means "the employee can
walk on water" and a 1 means "the employee would drown in a puddle").
Appraisals are also subject to the halo effect, which occurs when an appraiser's overall
impression of an employee is based on a particular characteristic, such as intelligence or
appearance. When rating each aspect of an employee's work, the rater may be unduly
influenced by his or her overall impression. For example, a rater who is impressed by an
employee's intelligence may overlook some deficiencies and give that employee all fives
on a one-to-five scale; an employee perceived to be of average intelligence may be given
all threes. The halo effect acts as a barrier to accurate appraisals because those guilty of it
fail to identify the specific strengths and weaknesses of their employees. It occurs most
often when the rating standards are vague and the rater fails to conscientiously complete
the rating form. For instance, the rater may simply go down the form checking all fives or
all threes.
Most organizations require that employee performance be assessed once a year. When
rating an employee on a particular characteristic, a rater may be unable to recall all of the
employee's pertinent job behaviors that took place during that rating period. The failure
to recall such information is called memory decay. The usual consequence of memory
decay is the occurrence of recency error; that is, ratings are heavily influenced by recent
events that are more easily remembered. Ratings that unduly reflect recent events can
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present a false picture of the individual's job performance during the entire rating period.
For instance, the employee may have received a poor rating because he or she performed
poorly during the most recent month, despite an excellent performance during the
preceding eleven months.
MANAGEMENT
In the management phase of performance appraisal, employees are given feedback about
their performance and that performance is either reinforced or modified. The feedback is
typically given in an appraisal interview, in which a manager formally addresses the
results of the performance appraisal with the employee. Ideally, the employee will be
able to understand his or her performance deficiencies and can ask questions about the
appraisal and his or her future performance. The manager should give feedback in a way
that it will be heard and accepted by the employee; otherwise, the appraisal interview
may not be effective.
The appraisal interview may also have an appeals process, in which an employee can
rebut or challenge the appraisal if he or she feels that it is inaccurate or unfair. Such a
system is beneficial because it:
allows employees to voice their concerns.

Fosters more accurate ratingsthe fear of a possible challenge may discourage
raters from assigning arbitrary or biased ratings.
Often prevents the involvement of outside third parties (e.g., unions, courts).
The downside of using an appeals system is that it tends to undermine the authority of the
supervisor and may encourage leniency error. For example, a supervisor may give lenient
ratings to avoid going through the hassle of an appeal.
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MANAGEMENT BY OBJECTIVES
Management by objectives (MBO) is a management system designed to achieve

organizational effectiveness by steering each employee's behavior toward the
organization's mission. MBO is often used in place of traditional performance appraisals.
The MBO process includes goal setting, planning, and evaluation. Goal setting starts at
the top of the organization with the establishment of the organization's mission statement
and strategic goals. The goal-setting process then cascades down through the
organizational hierarchy to the level of the individual employee. An individual's goals
should represent outcomes that, if achieved, would most contribute to the attainment of
the organization's strategic goals. In most instances, individual goals are mutually set by
employees and their supervisors, at which time they also set specific performance
standards and determine how goal attainment will be measured.
As they plan, employees and supervisors work together to identify potential obstacles to
reaching goals and devise strategies to overcome these obstacles. The two parties
periodically meet to discuss the employee's progress to date and to identify any changes
in goals necessitated by organizational circumstances. In the evaluation phase, the
employee's success at meeting goals is evaluated against the agreed-on performance
standards. The final evaluation, occurring annually in most cases, serves as a measure of
the employee's performance effectiveness.
MBO is widely practiced throughout the United States. The research evaluating its
effectiveness as a performance appraisal tool has been quite favorable. These findings
suggest that the MBO improves job performance by monitoring and directing behavior;
that is, it serves as an effective feedback device, and it lets people know what is expected
of them so that they can spend their time and energy in ways that maximize the
attainment of important organizational objectives. Research further suggests that
employees perform best when goals are specific and challenging, when workers are
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provided with feedback on goal attainment, and when they are rewarded for
accomplishing the goal.
MBO presents several potential problems, however, five of which are addressed here.
1. Although it focuses an employee's attention on goals, it does not specify the

behaviors required to reach them. This may be a problem for some employees,
especially new ones, who may require more guidance. Such employees should be
provided with action steps specifying what they need to do to successfully reach
their goals.
2. MBO also tends to focus on short-term goals, goals that can be measured by year's
end. As a result, workers may be tempted to achieve short-term goals at the expense
of long-term ones. For example, a manager of a baseball team who is faced with the
goal of winning a pennant this year may trade all of the team's promising young
players for proven veterans who can win now. This action may jeopardize the team's
future success (i.e., its achievement of long-term goals).
3. The successful achievement of MBO goals may be partly a function of factors
outside the worker's control. For instance, the base-ball manager just described
may fail to win the pennant because of injuries to key players, which is a factor
beyond his control. Should individuals be held responsible for outcomes
influenced by such outside factors? For instance, should the team owner fire the
manager for failing to win the pennant? While some HRM experts (and base-ball
team owners) would say "yes," because winning is ultimately the responsibility of
the manager, others would disagree. The dissenters would claim that the team's
poor showing is not indicative of poor management and, therefore, the manager
should not be penalized.
4. Performance standards vary from employee to employee, and thus MBO provides
no common basis for comparison. For instance, the goals set for an "average"
employee may be less challenging than those set for a "superior" employee. How
can the two be compared? Because of this problem, the instrument's usefulness as
a decision-making tool is limited.
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5. MBO systems often fail to gain user acceptance. Managers often dislike the amount of
paperwork these systems require and may also be concerned that employee participation
in goal setting robs them of their authority. Managers who feel this way may not
properly follow the procedures. Moreover, employees often dislike the performance
pressure that MBO places on them and the stress that it creates.
SUPERVISORY STYLE:
Supervisor
Person in the first-line management who monitors and regulates employees in their
performance of assigned or delegated tasks. Supervisors are usually authorized to
recommend and/or effect hiring, disciplining, promoting, punishing, rewarding, and
other associated activities regarding the employees in their departments. Leadership
styles may be of relevance to in a variety of situations where there is a requirement to
manage others. Effective performance will depend on many factors including the
organizational culture in which the individual is operating.
Directive Leader: Directive Leaders are characterized by having firm views about how
and when things should be done. As such they leave little leeway for subordinates to
display independence, believing that they should adhere to the methods and schedules as
originally laid down. Having a high goal-orientation and being particularly concerned
with results the Directive Leader will tend to closely monitor the behavior and
performance of others. This may lead them to be perceived as a little cool and detached.
Delegative Leader: As the name suggests, the style of Delegative Leaders is

characterized by delegating work to subordinates. Since their style is not strongly
democratic, the process of delegation may not involve consultation. As a result,
subordinates will generally be assigned work rather than have active input into how
projects should be conducted.
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Participative Leader: Participative leaders are primarily concerned with getting the
best out of a team as a whole. Hence, they encourage contributions from all members of a
team and believe that by pooling ideas and coming to a consensus view the best Solutions
to problems will naturally arise.
Consultative Leader: The Consultative Leadership Style combines elements of both

democratic and directive leadership orientations. They value group discussion and tend to
encourage contributions from the separate members of the team. However, although
group discussions will be largely democratic in nature, Consultative Leaders typically
make the final decision as to which of the varying proposals should be accepted.
Negotiative Leader: Negotiative Leaders motivate subordinates by encouraging them,

through incentives etc., to work towards common objectives. Hence, through a process of
negotiation attempts will be made to arrive at some mutually equitable arrangement with
the other members of the team so as to motivate them to work in a particular way.
Negotiative Leaders tend to rely on their skills of persuasion to achieve their stated goals.
INTERNAL COMMUNICATION SYSTEM:
Internal communications (IC) is the function responsible for effective communication

among participants within an organization. A relatively young profession, IC draws on
the theory and practice of related professions, not least journalism, knowledge
management, public relations, media relations, marketing and human resources, as well
as wider organizational studies, communication theory, sociology and political science.
Role of Internal Communication in the Organization:
People at work communicate regardless of the intentions of their managers or leaders.

The purpose that a formally-appointed IC manager or IC team will serve within a given
organization will depend on the business context. In one, the IC function may perform the
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role of 'internal marketing' (i.e., attempting to win participants over to the management
vision of the organization); in another, it might perform a 'logistical' service as channel
manager; in a third, it might act principally as strategic adviser.
It is important to distinguish between communications on behalf of the organization and

the day to day intercourse within work groups or between managers and subordinates.
Minzberg talks about the fact that communications is intrinsic to the work of a manager -
it is the very essence of work in many situations. This article is less concerned with the
interpersonal communications that take place in most workplaces and which are explored
by writers such as Phillip Clampitt.
There are a number of reasons why organisations should be concerned about internal
communication. Importantly, there is commonly a legal requirement for organizations to
communicate with their workers. In Europe, for example, the EU has made very specific
provision about workers' rights to be informed and consulted. Effective internal
communications is one of the key drivers of employee engagement (see, e.g., the UK
government-sponsored Macleod Report for a summary of research) and proven to add
significant value to organizations on all metrics from productivity to customer research.
As noted in Quirke (2008) "Traditionally, internal communications has focused on the
announcement of management conclusions and the packaging of management thinking
into messages for mass distribution to the 'troops'". Research indicates a limit to the value
of this 'broadcasting' model of IC. Without feedback loops and harnessing the active
involvement and mediation skills of frontline supervisors or team leaders, broadcasting
tends to be more effective at influencing senior and middle managers than frontline
employees - see, e.g., Larkin and Larkin (1994).
As the IC function matures within the organization, then, it may come to play a wider
role in facilitating conversations "upwards", "downwards" and "across" the
organization, per Stohl (1995). Organizations increasingly see Internal Communication
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as playing a role in external reputation management. Joep Cornelissen in his
book Corporate Communications touches on the relationship between reputation and
internal conversations. This trend reaches its full potential with the arrival of new 'norms'
and customer expectations around social media, for example in the work of Scoble and
Israel. Market researchers mori have likewise highlighted the effects of employee
advocacy on an organizations external reputation. Internal Communication managers
aim to achieve strategic influence, to help bring reputational risk analysis to bear before
senior leaders take a final decision, to improve the quality of that decision and improve
the chances it will be accepted by all participants within the organization.
POWER AND POLITICS
In social terms, power almost by definition, involves the rule by the few over the majority
and we have to understand the political processes (both Structural and Interpersonal)
whereby power is legitimated (the process whereby power ceases to be nakedly coercive
and becomes power that is based upon authority. By power is meant the ability of
individuals or groups to make their own concerns or interests count, even where others
resist. Power sometimes involves the direct use of force, but is almost always also
accompanied by the development of ideas (ideology) which justify the actions of the
powerful. Politics, in this sense, is a concept that can be defined as a process involving
the exercise of control, constraint and coercion in society. Power which is derived
from social positioning lacks legitimacy. It is dependent upon strength and competencies.
Depending upon situation there are several kinds of power, some of which are described
below.
Reward power
Coercive power
Legitimate power
Personal power
Expert power
Referent power
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Reward power: The extent to which a manager can use extrinsic and intrinsic rewards to
control other people is described as reward power. Success in accessing and utilizing
rewards depends on managers skills.
Coercive power: The extents to which a manager can deny desired rewards or administer
punishments to control other people. Availability varies from one organization and
manager to another.
Legitimate power: The extent to which a manager can use subordinates internalized
values or beliefs that the boss has a right of command to control their behavior. If
legitimacy is lost, authority will not be accepted by subordinates.
Personal power: Personal power is derived from individual sources.
Expert power: Is ability to control another persons behaviour through the possession of
knowledge, experience, or judgment that the other person needs but does not have?
Referent power: The ability to control anothers behavior because the person wants to
identify with the power source. It can be enhanced by linking to morality and ethics and
long-term vision
Politics
Since organizations do not follow their systems and procedures fairly, there is lot of
politics It essentially implies lot of maneuverability in the allocation of responsibilities,
rewards and resources. Politics is the use of power to develop socially acceptable ends
and means that balance individual and collective interests.
Political behavior may take many forms. It may comprise passing a chain of commands,
Withholding information, spreading rumors, leaking confidential information, lobbying,
using pressure tactics etc. The following are the characteristics and reasons of political
behavior.
It is outside ones job requirements.

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It is an attempt to influence the decision making process.
It may involve give and take strategy.
It is usually devoid of morality and ethics.
A number of factors can lead to political behavior. If there is lack of clarity in

organizational policies and presence of over ambitious individuals in workforce is higher,
there are more chances of politics. Limited promotional avenues, discriminatory behavior
of management can aggravate political behavior.
There are several ways in which politics takes place in organizations. Feyol (1949)
describes the following political strategies.
Impression Management: An attempt is made to create an impression that

everything is good because of us and anything wrong has nothing to do with us.
Extra Role Relationship: Flattery, creating goodwill and being overtly friendly are
some of the tactics through which political behavior is promoted.
Coalition: Likeminded people come together and promote a particular cause
which is essentially political in nature.
Bargaining: Bargaining, negotiations etc. are used to get extra benefits which are
normally not available.
Teams and Team Work
The world is changing fast nowadays. It is true that the world has been evolving and
changing since time began, but what is so different today is both pace and the effects of
change, which impinge on everyones life. Competition is hotting up. New products, new
technologies, new processes hit the markets with frustrating regularity. In order to survive
corporates are virtually compelled to economize on every front go after modern
technology, restructure operations, explore new markets, find new uses of existing
products, innovate, experiment and find new ways of living and most importantly use
human resources productively. While fighting with the various forces of change,
corporations have realized the importance of teams which are more flexible and
responsive to changing events than are traditional departments or other forms of
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permanent groupings. Corporations have benefited from the use of terms in the form of
increased productivity, increased speed of operations, reduced costs, improved quality,
reduced destructive internal competition, improved workplace cohesion etc.
Team
A team is any group of people organized to work together interdependently and

cooperatively to meet the needs of their customers by accomplishing a purpose and goals.
Teams are created for both long term and short term interaction. A product development
team, an executive leadership team, and a departmental team are long lasting planning
and operational groups. Short term teams might include a team to develop an employee
on boarding process, a team to plan the annual company party, or a team to respond to a
specific customer problem or complaint.
Three common types of teams include functional or departmental, cross-functional, and

self-managing.
Functional or departmental teams: Groups of people from the same work area
or department, who meet on a regular basis to analyze customer needs, solve
problems, provide members with support, promote continuous improvement, and
share information.
Cross-functional teams: Groups of people who are pulled together from across
departments or job functions to deal with a specific product, issue, customer,

problem, or to improve a particular process.
Self-managing teams: Groups of people who gradually assume responsibility for

self-direction in all aspects of work.
Virtual teams: A virtual team convenes and operates with members linked
together electronically via networked computers. It uses computer technology and
groupware to tie together members from various locations working toward a
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common goal. Members need not be working in close proximity and many often
geographically dispersed- cross organizationally or cross- nationally. Almost all
meetings could take place via electronic communication (including wide area
networks, video conferencing, fax, e-mail, etc). Sometimes a company may also
use virtual teams in partnership with suppliers or in many cases with competitors
to pull together the best brains to complete a project or speed a new product to
market. Leadership among team members is shared or altered depending on the
area of expertise required at each stage of the project.
Virtual teams bring cost effectiveness and speed to teamwork where members are
unable to meet easily face-to-face. There is added advantage of objective information
sharing and decision- making based on facts. Where members are well-trained in the
use of computers and are able to process and interpret data without any emotional
considerations, virtual teams may yield positive gains.
The success of virtual teams, therefore, depends on several crucial elements (Brain
Dumaine; Solomon, Jarvenpaa and Leidner) :
Careful selection of partners and team members; encourage team members to
interact one on one, without feeling obliged to copy every email message to
the entire team; encourage team members to discuss cultural differences
freely.
Strong management support of the team and its goals; be sure that someone is
responsible for facilitating the communication process.
Utilization of best communication tools and procedures, better to use a variety
of communication technologies; pay special attention to the quality of the
communication transmission (like low quality voice transmissions, poor video
images etc)
Development of trust among all members; to achieve this, it is better to hold
an initial meeting on a face-to-face basis; whenever possible, individual team
members could pay a visit and meet members who are easily accessible;
periodic meetings with members of course minimize the dangers emanating
out of site, out of mind attitudes.
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Information sharing; also train team members to match their choice of technology
to the desk.
Team Work:
Teamwork occurs when group members work together in ways that utilize their skills to
accomplish a common purpose. (Phillips) In such a scenario, members are prepared to
listen and respond constructively to views expressed by others, give others the benefit of
doubt, offer support and recognize the interests and achievements of others. Teamwork of
this nature, of course, does not just happen. You cannot simply expect people to do a
great job by assigning members to a group.
To create a high performing team, a leader must invariably (Dyer):

Communicate high-performance standards.
Set the tone in the first team meeting.
Create a sense of urgency
Make sure members have the right skills
Establish clear rules for team behaviour
As a leader, model expected behaviours
Find ways to create early successes
Continually introduce new facts and information
Make sure members spend a lot of time together
Give positive feedback and reward high performance
High performance teams, thus have strong core values, clear performance goals, the
right mix of skills and creativity. Members in a homogenous group (when members are
alike in respect of age, gender, race, ethnicity, experience etc) may score better than
others in most cases because they find it easy to build social relationships quickly and
begin interactions needed to work harmoniously together. Team diversity (in terms of
demography, experiences, cultures) may create performance difficulties initially.
However, once the members sort out interpersonal differences smoothly, they can put
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their varied backgrounds, experience and talents to effective use. Although it may take
considerable time and effort to obtain teamwork from foundations of diversity, long-
term benefits in creativity and performance can make it all worthwhile (Watson).
Ethics and Social Responsibility
Ethics are talked about frequently and addressed in the news when unethical decisions are
found. Sadly, people do not hear about ethics when others are engaging in ethical
behavior on a daily basis. Keep in mind that things that are not illegal may be unethical.
Ethics are an individual belief system that consists of knowing what is right and wrong.
Ethics can vary person to person. Ethics is in part analyzing decisions, beliefs, and
actions. Within the business context, businesses are expected to have good ethical values
and act socially responsible. The problem is that the ethics of a business is a mixture of
individual sets of ethics. This is why it is important to have good individuals as
employees. It is also equally important that when you go to work somewhere that you
feel like you share the values of those you work with. Ethics is not just talking about the
right thing. It is doing what is right in every decision that is made.
Social responsibility can be an example of ethical behavior. It is enhancing society in

general. However, a business cant afford to go around doing good deeds if there is no
potential payoff. If the business were to loose too much money, then it would cease to
exist, hurt customers, and leave employees jobless. There are some that argue that social
responsibility is shown only when companies go beyond what is optional, and really
intend to create a benefit for others besides the company. Additionally, some companies
may not benefit from some forms of social responsibility.
These businesses should focus on what they do best as a business and give back what
they can. Examples of socially responsible behavior range from projects that raise money
for research on diseases, raising money for the needy, requiring workers to volunteer
within the community, recalling products that may be dangerous, promoting recycling,
and offering free services to the disadvantaged. There are innumerable ethical dilemmas
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that may arise in a business setting. Some of them are more obvious while some of them
are more obscure. There is a simple basis that helps keep decisions in perspective.
Businesses should operate in a manner that is legal, profitable, ethical, and within social
norms. By being within social norms means that you need to use society to gauge if your
decisions are appropriate. Some cultures would define what is ethical differently from
other cultures. Due to the fact that all businesses need to be profitable, sometimes there is
an over emphasis on making more money. Social norms should govern what is
appropriate to compensate individuals as well as to charge customers.
Profit expectations and goals should not require a business to cut corners in an unethical
way or to misrepresent or twist facts. Then where do ethics come from? People begin to
develop their internal beliefs from the time they are small children. Factors such as the
conditions that an individual grows up in affect the way that they see the world. For
example if a child was raised in a household with a lot of violence, they might feel that
fighting is okay. The beliefs of the peers around you may influence how you see things. It
is human nature to want to belong and some are more apt to give into peer pressure.
People have a lot in common with their peers due to similar values in the first place.
However, it is hard to find two people that feel exactly the same about every situation.
Some people would feel that if they found money that they should be able to stick it in
their pocket and keep it. Others would feel as if they should take it to the lost and found
area. Keeping money that you find on the ground in a public place is not illegal, but some
people would not be able to benefit from a situation while the person who lost it could be
potentially found. Powerful situational factors may cause people to compromise their
values and resort to measures that they would not normally take.
If someone is having financial problems, then they are more likely to steal. An individual
that is very angry with another person may have a hard time being objective and fair.
Then why do people engage in unethical behaviors? Many people feel that they wont be
caught. An employee that steals a few dollars out of petty cash may eventually result to
taking large amounts of cash if they are never caught. Someone with lots of authority
may feel like they can cover their tracks by lying to subordinates.
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Some people are unethical because they can justify what they are doing. If an employee
sees other people not being punished for unethical behavior, then they may feel like they
should be able to do it to. Some individuals make a poor choice and instead of coming
clean about it feel the need to make more choices to cover it up. Once bad decisions are
made, they tend to get worse until they are eventually caught. The biggest reason people
are unethical is because they feel that they can gain from it, or that they need to hide
something that can hurt them. There are many things that an organization can do to
facilitate good ethical behaviors. One of the best things to do is to make sure that the
underlying culture of an organization promotes strong values. People should not be
punished for coming forward with problems. As a matter of fact, workers should be
allowed to communicate problems anonymously. Some organizations have a phone
number to call or a suggestion box.
Always allow employees to share any ethical concerns with authority above them when
there are ambiguities about the right thing to do. Include a code of ethics as a written
document for employees to read. Develop brochures, mission statements, and other media
that express the company beliefs. Higher authorities within the organization should
possess the beliefs and demonstrate the values that they want to see their employees have.
Another method for implementing ethical conduct is to make sure that unethical conduct
cant occur.
The ability to safeguard resources is an important function of internal controls. Examples

of internal controls are to make sure that more than one employee works with cash and
accounting related materials. This way there is more than one person who knows what is
going on and can identify theft. Other methods are to require signatures, to lock up
valuables, use security cameras, have employees rotate jobs, and randomly check
employee work. The more secure your business is, the less likely that individuals within
the organization will make unethical decisions. The pharmaceutical industry finds itself
caught up in the Perfect Storm. A variety of circumstances have conspired to place the
pharmaceutical industry at the center of a maelstrom. It would be easy to dismiss or
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misidentify this maelstrom as the consequence of purely fortuitous and temporary
economic factors, namely
1. Falling profits
2. Patent Expirations
3. Competition from generic drugs, and
4. The dearth of new blockbuster drugs.
This would be a serious misperception. The fact of the matter is that the pharmaceutical
industry is being demonized. The really significant forces contributing to the storm are
parts of a concerted effort on the part of various interest groups to push their own agendas
at the expense of pharmaceutical corporate pocketbooks. Together they have conspired to
present a portrait of the pharmaceutical industry as profiteers who (a) spend obscene
sums on marketing1 instead of research, (b) engage in differential pricing at home and
abroad in an effort to gouge the American consumer, and (c) deprive developing
countries of life-saving medicines.
As a result, the industry is under intense pressure to make medicines less expensive. The
success of the concerted effort to demonize the pharmaceutical industry is not the product
of incontrovertible facts and formidable arguments on the part of the industrys critics.
No. The success of the demonization is a result of the receptivity (perhaps one should say
gullibility) of the public. And why are the public so receptive? The answer is that drugs
are the most visible recurring expense and the one that consumers are asked to pay, in
part, directly; this, coupled with the fact that the public has not yet come to terms with the
economics of contemporary healthcare has led to a crisis. In short the real crisis is the
present inability and unwillingness of the public to understand the economics of
contemporary healthcare. For reasons which will become apparent as we proceed, the
burden of the social responsibility of educating the public will fall on the pharmaceutical
industry.
The problems that beset the pharmaceutical industry are not sui generis but part of the
much larger healthcare debate. To attempt to solve the problem by purely business, legal,
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or political means would be to see the trees but to miss the forest. Health-care practice
and policy are based on a paradigm that is no longer meaningful. Past policy reflects a
Jurassic period when doctors could do very little and costs were comparably low. It
reflects a time when the emphasis was put on bedside manner, because there wasnt
anything at the bedside except some posturing. I am old enough to remember a time when
going to the hospital was viewed as a prelude to death. The most important obligation of
the medical profession was non-maleficence (avoiding harm), not the principle of
beneficence (doing good).2 This produced a myopia about the cost of healthcare. This
myopia about the cost of healthcare was reinforced by the generosity of employers,
starting in the Second World War when they were forbidden to raise wages. Employers
contractually absorbed the then modest cost of healthcare. The public myopia would be
further reinforced by the rapid growth in the post war period of the welfare state. The
public has been led to believe that healthcare is a right; that a right (in the current
politically correct sense of the term, not the sense in which the American Founders
understood it) imposes a positive obligation on government to provide such goods or
benefits. How, however, does this actually work out in practice? Governments can
pretend to protect your newly discovered right by controlling the supply of healthcare.
They can do this, paradoxically, by cutting off access. That is, they can, among other
things, restrict the number of doctors, and they can reduce the supply of medical
technology. The ultimate logic of these moves will result in waiting lists or rationing.
Rationing is a way of privatizing costs without monetizing them.
There is one exception to this practice: prescription drugs.The only way that government
can manage the quantity or supply of prescription drugs is by insisting that patients pay
some of the costs directly. That is why drugs are the most visible recurring expense and
the one that consumers are asked to pay, in part, directly. It is also not surprising that up
until recently politicians have avoided including a prescription drug plan in Medicare.
We are getting a little ahead of ourselves in our account of why the public has not come
to terms with the economics of contemporary healthcare.
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The past and to some extent current paradigm in the minds of the public is that
healthcare should be inexpensive. This is an outmoded paradigm. Everything has
changed ramatically. In the past half-century, medical technology, as in the case of
technology in general, has totally transformed the landscape. There is an enormous and
ever growing amount that medical technology can provide, but the costs have risen
appreciably. Neither the medical community itself nor the public nor the formulators of
public policy have appreciated the need for a paradigm shift. Up until now, the
pharmaceutical industry has tried to defend itself by rightly pointing out its preeminent
role in producing, promoting and providing access to the benefits of modern medical
technology along with the need for protecting intellectual property rights. This defense
has fallen on deaf ears. This problem cannot be solved through a public relations defense
alone; it requires a coordinated offense. That offense has to embody a new paradigm.
What is the new paradigm: preserving and improving health-care requires full
commitment to free market economy in healthcare. It is time for the public and the world
at large to be clear on where it wants to be, how we have got close to it, and how we can
get closer. If you will allow me to condense the history of the last 500 years into a one
paragraph, I shall tell you what road we have been traveling. Since the Renaissance, the
Western World (of which the U.S. is the preeminent example and leader) has been
irrevocably committed to the Technological Project, that is, the project to control the
physical universe and make it responsive and subservient to humanity. I say irrevocably
because there is now no serious possibility of giving it up.
The essence of the TP is constant innovation.7 Since 1989, the world has come to
understand that the most efficient way of pursuing the Technological Project is through a
free-market economy because it is just such an economy that maximizes innovation. I
wont waste time giving you the technical reasons, because you can read them in Adam
Smith. The spread of this realization that the Technological Project requires a free market
economy is what globalization is all about. A free-market economy requires a limited
government, i.e., a government which recognizes that its job is to serve the market which
serves the Technological Project, a government which is itself under the law that is
what we mean by the rule of law and not men, and a government which enforces,
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adjudicates conflicts within, and maximizes the potential for, contracts. Finally, the only
way of producing and maintaining a limited government is to have a larger cultural
context in which individuals are personally autonomous, that is define their own lives and
take responsibility for them. The greatest achievement of the Technological Project has
been to improve the longevity and quality of human life. Medical technology has been at
the forefront of that project. Let me mention just a few facts:
1. From 1900 to 2000 life-expectancy increased in the Us from age 47 to
age 78.
2. Since 1986, there has been a 40% increase in life expectancy in 52
countries due to the launch of new medicines.
3. The expense of new drugs often reduces the cost of hospital care
expenditures.8
4. Old cures often have to be replaced by new cures.
5. New diseases and medical conditions develop all the time.
6. Most of the science Nobel prize-winners, especially in medicine, are from the US and
Briitain the countries most committed to a free market.
7. Our most successful research universities are privately endowed universities, endowed
by the philanthropy of a culture committed to wealth production through a free market
economy. Telling this story is what the industry has tried to do so far, but unsuccessfully.
We need to tell it better and to get it across more successfully (i.e., we need a marketing
strategy for ideas). To do so, we need to bypass the medical technocrats and go directly to
the public. It is important to connect the story to profits. The publics perception of
medicine as seen on TV always focuses positively on doctors instead of researchers and
entrepreneurs. The medicines appear miraculously, and, of course, the doctors get all the
credit. We might want to encourage switching the focus, perhaps through selective
programming and advertising. We might want, for example, to contrast the way
psychological dysfunction was treated in the era of Freud and psychoanalysis with
current psychiatrists who give medications. We might want to highlight the number of
world leaders who come to the US for medical treatment, and stress that it is no accident
that the best care is available in the country most committed to a free market.
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CHAPTER 6
EMPLOYEES BEHAVIOUR
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CHAPTER 6
EMPLOYEES BEHAVIOUR
Many elements determine an individuals behavior in the workplace. Managers as well

as employees have been shaped by their culture, and by the organizations culture. These
influences affect the way employees communicate and interact with one another, and
with management. In the same way, a managers communication is greatly influenced by
outside factors. Each employees beliefs effect their ethics, and sense of ethical
responsibility. Communication helps to shape employee perceptions, and helps
employers to understand employees perceptions. Different forms of communication,
both verbal and non-verbal, must be used to ensure that each demographic within a
corporations diverse team is reached both effectively and efficiently.
An individual takes with them an attitude that affects both their personal as well as
workplace environment. While some describe an attitude as circumstance dependent, it is
defined as a persistent mental state of readiness to feel and behave in a favorable or
unfavorable way toward a specific person, object, or idea. It is important to understand
the definition of attitude as it is directly correlated to they way an individual behaves. For
example, if a person has a fight with their spouse outside of work, the consequent bad
attitude can negatively affect their productivity throughout the day. Given this direct
relationship between attitude and job performance, various methods can be implemented
by a company to help their employees experience positive attitudes. Organizations should
know their employees well enough to apply the best methods that will achieve the
greatest results possible for both the company and employee.
As much as attitude affects an individuals behavior in the workplace, so does perception.

In fact, perception is defined as a process by which individuals organize and interpret
their sensory impressions in order to give meaning to their environment.(123 Heathers
Book) Moreover, perceptions can, and often do, vary from person to person which can
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cause great differences in a workplace environment. For example, a group of several
people can look at the exact same situation, but have different perceptions of the positive
and negative effects of that situation. If a company introduces a new retirement program
that focuses on matching contributions to a 401K, but in the process eliminates a pension
program, many employees will feel differently about the effects of that decision. In other
cases, perceptions can often times be distorted by miscommunication, and without proper
verifications of the information given an unhealthy work environment can easily be
created. If an employee has a perception about another employee that is incorrect, their
behavior around that employee will reflect that; this can lead to an unhealthy work
environment. It is important for each employee within an organization to keep an open
mind and get to know their co-workers so that perceptions will be accurate and the work
environment will stay as positive as possible.
People have their own belief system that influences their behavior in an organization.
With more and more companies supporting diversity amongst their employees,
differences in beliefs continues to increase. Sometimes conflict can arise when an
employees tries to push their beliefs on another employee. Since many companies are
accepting of all beliefs, it is important for employees to respect each of those beliefs.
Therefore, an employee should learn to work well with each other and respect their
differences in beliefs. Likewise, if an employee is open minded and respectful of others
beliefs, they can learn a lot from each other.
Diversity in the workplace takes a major role in helping companies maintain the most
effective and best-qualified employee base. The way that each individual within a
company chooses to address diversity can either benefit or hurt that organization.
Learning how to work with individuals of different ethnicities, backgrounds, age, and
personality types can be difficult. Still, most large companies work to make sure that the
workplace is diverse, and that the most effective and productive staff is on board. This is
a very difficult balance to maintain. Companies must be sure to pay attention to the needs
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of all employees and recognize the diversity within those needs. An important part of
maintaining an effective diverse work environment is making sure that the employees
within the company are focused on helping each other succeed. This focus creates and
understanding of how differences play an important role in the overall success of the
corporation. Offering diversity training is a great way to help employees understand one
anothers differences, and this type of communication can ease both fear and tension in
the workplace.
When companies take employees from different demographics, it aids in the diversity of
the workplace. Still, as is true with all types of diversity, it takes employer focus to
ensure that their employees are working effectively together. In some cases, when
companies do not keep careful watch, a class system will form within the organization
and conflict breeds from within. To combat this, many companies have seasonal events
such as Christmas parties or Summer BBQs. Team building exercises and competitive
recreation are also great ways to promote unity and good communication. Team members
are put in challenging, but low stress situations outside of the work environment that help
them learn to discuss ways to overcome obstacles, and to encourage and motivate each
other to achieve a common goal. Once back in the work setting, these employees are both
better equipped to face tough situations, and more unified and committed to one anothers
success.
Effective communication is the corner stone of any business or organization. The way
that upper management communicates with lower management has a direct effect on how
a business operates. Communication is the vehicle in which companies visions are
expressed and their directions are given. If the vision of the business is not communicated
clearly, then employees will not be inspired to share in the organizations vision. In the
same way, if the employees are not helped to understand the companys direction, they
can help the company achieve its goal. It is essential that each employee understand his
or her role and responsibilities for projects. If this direction is not given to employees, the
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poor communication will lead to failure of the project. Similarly, when communicating a
vision, employers must articulate clearly the vision of the company. The Society for
Human Resource Management states that there are four stages a company can follow
when articulating its vision, which are observation, reflection, writing, and speaking. This
involves observing the way the vision will affect the employees, reflecting on that
information, writing it out, and communicating it to the staff. (Bates, October 2007)
If effective communication is the cornerstone of a successful business, the effective

communication of leadership is the mortar that holds the corner stone in place. The
ability of a leader to bring people together, to accomplish a goal, and to produce a
product is dependent on effective communication. It is important that a leader be able to
sell the companys idea or perspective to employees. Sanborn calls employers to go from
telling to selling. He states, Once youve won the trust of the listener, youve opened his
or her mind to consider your message. You must find a way to impact him or her with
what you want them to understand, and that requires making an emotional connection.
As leaders communicate company policy, vision, direction, and focus to employees, it is
important that they influence employees to believe more firmly in the organization. It is
not enough for leaders to be clear, concise, and understood. A leader is responsible for
moving employees toward behaviors that benefit the corporation.
People communicate in a variety of ways, and a large part of the way that people
communicate is not in just what they say. Employers and employees communicate to one
another through facial expressions, tone of voice, and body language. These
communication behaviors, when used by a leader, can have a direct impact on his or her
team. A facial expression can send a positive message that helps employees to begin the
day with a good attitude, just as putting on a happy face and saying good morning in a
pleasant tone can help set the mood for the day. It is very important for members of an
organization to make sure they are aware of what their nonverbal language is saying. It
easy for employees to unintentionally communicate negative feelings while trying to
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speak a positive thought because a persons mood will often affects his or her nonverbal
cues. Having great communication skills is a must, whether verbal or nonverbal, to make
sure the message transmitted is the message intended. Another nonverbal form of
communication is apparel. The clothes that an individual wears to work can influence the
way that co-workers perceive him or her. Employees who wish to communicate a relaxed
persona often choose not to wear ties or business suits, while employees who wish to be
thought of as driven or successful will choose more formal business attire.
When employees are communicating effectively, everyone who receives the information
he or she is transmitting understands it. Good leaders understand how to effectively
communicate to employees. It is also important for a leader to have good listening skills.
To make sure that information was received and understood as intended, leaders should
ask whether there are any questions, comments, or concerns pertaining to what their
audience just heard. Efficient communication involves finding the shortest way to
communicate effectively. Efficient communication will vary depending on the size of the
team, as well as the teams diversity. Communicating by speaking face-to-face rather
than through email, phone, or a third party is the best way for leaders to effectively and
efficiently communicate with employees.
Effective communication is vital to any companys success. It influences employees

perceptions of the company, and helps the company to make decisions that the greatest
number of employees will deem favorable. Communication is key in helping employees
understand the organizations standard of ethics, as well as helping the company
understand the employees beliefs and how they affect the employees ethical
responsibility. Communication can be either verbal or non-verbal, and effective
communication reaches each demographic within a diverse group of people. Efficient
communication involves communicating effectively in the most direct way possible.
Each of these elements determine individual behavior in the workplace, and it is the
responsibility of the organizational leaders to clearly and persuasively communicate
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company the companys goals and vision to each team member so that the corporation is
operating at its maximum potential.
Employees are key stakeholders in value delivery and brand/supplier success, and they
frequently represent the difference between positive experiences or negative experiences
and whether customers stay or go. Is employee satisfaction the best vehicle for creating
customer loyalty? Industrial psychologists and organizational behaviorists have been
studying employee satisfaction for over 30 years, assuming that the level of staff
satisfaction correlates with impact on performance. However, as one major study
concluded: "Researchers have been unable to confirm a relationship between employee
satisfaction and business performance." This is almost identical to the oft-proven
determination that a high level of customer satisfaction has relatively little bearing on
loyalty behavior. Conversely, transactional dissatisfaction can and often does undermine
customer loyalty and advocacy.
It has been found that employee commitment and advocacy behavior have a direct and
profound relationship to the loyalty of customers, and also to corporate sales and
profitability. As extensive academic and professional research into this effect concludes
with regularity, employee attitudes and actions can't be separated from the effective
delivery of customer value. Emblematic of this linkage is a statement David Cole, CEO
of Honeywell International, made several years ago to the company's 120,000 employees:
"Every Honeywell employee is a brand ambassador. With each customer contact, and
whenever we represent Honeywell, we have the opportunity to either strengthen the
brand or cause it to lose some of its luster and prestige. Generations of Honeywell
employees have built our powerful brands with their hard work, spirit of innovation,
passion for quality, and commitment to customers."
Employees are at least as important as other elements and contributors to effective

customer management in optimizing benefits for customers.
Decision making processes are also ways in which organisational culture can be
transformed thus changing employee behaviour and competitive advantage.
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Organisations where employees are; confused about their enumeration systems or those
ones where employees' job description contracts always come in late or those ones where
new employees are never recruited on time, may have problems with employee behaviour
hence service delivery. It is essential for leaders to employ the expertise and knowledge
that its employees have in their decision making processes. This is because staff members
are the ones who eventually have to carry the burden of those decisions. Leaders need to
realise that employees have a lot of contact with clients and may be more knowledgeable
about consumer preference. It is therefore wise to learn about those ideas from their
employees. This will make employees more responsible and will instil an organisational
culture that is full of cooperation. (Kilmann et al, 1986)
CEO s and other types of leaders need to create a free environment where employees are
allowed to think for themselves. This will go a long way in enhancing efficiency because
too much bureaucracy slows down service delivery. Employees should be encouraged to
contribute their views through regular meetings with managers or employers. This can
also be topped up by freedom to elect an independent advisory group that will facilitate
certain agreements between employees and their employers. Organisations that are
characterised with top-down management structure and cultures rarely affect their
employees' behaviour and will be less effective in achievement of sustainable advantage.
Decision making as a method of influencing employee behaviour and organisational

culture is effective in that it allows employees to be prepared psychologically for
business activity. Organisations in which decision making is largely left to the employee
are characterised by fast and intellectual employees during treatment of clients. It should
be noted that such employees are normally quite ready for nay occurrences in the firm
since they contributed to its formation. Consequently, chances of meeting obstacles and
objections during hours of business will be minimised by those employees and they will
be more effective in their tasks. Examples of areas in which employees should be allowed
to contribute to include aspects of products sold. Employees can make their contribution
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about how their product should be based on knowledge acquired from consumers. They
could also give their ideas about pricing strategies. Through their interaction with clients,
employees will have the ability to know what consumers are looking for in their area of
interest are. Such issues will contribute towards better employee behaviour and hence
organisational behaviour. (Benedict, 1934)
Motivation can be seen as way of influencing employee's behaviour in such a way that it
will lead to positive results within the organisation. This is one of the most instrumental
factors in the process of affecting employee behaviour and hence organisational culture.
Motivation can boost an employee's self esteem and will influence their capacity to work.
Motivation is especially necessary in instances where an organisation is undergoing
changes. At that time, there is a need for a motivational plan that will include all the new
environmental factors that will come into play. This motivational plan should bring out
the following aspects in the employees;
confidence
honesty
integrity (Judge & Watanabe, 1993)
Motivation can be achieved through a variety of channels. First and foremost, an

organisation needs to implement rewards systems that create an atmosphere of
enthusiasm amongst its employees. It would be preferable if an organisation links reward
systems to organisational success. This is the fundamental principle behind best practice
theories. In best practice theories, employees normally feel motivated to do better when
they can see the results of the efforts./ At the same time, employers need to avoid linking
performance with enumeration for specific individuals within its organisation. When
employers adopt such a system of enumeration, then they will only be dealing with
temporary solutions. Linking enumeration to individual performance usually creates
negative energies in the organisation. Employees may look for shortcuts in order to meet
their targets. Others may become hostile towards their counterparts. It is therefore
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important to adopt fair distribution systems in enumeration so as to maintain harmony
and to create a culture of looking at the bigger picture'.
Another method that managers/ employers can use to motivate their employees is through
the use of allowances. For example, they could [provide certain holidays and flexible
working hours that could encourage their employees to work harder. Organisations
should also endeavour to provide safe environments for their employees especially in the
construction and industrial sectors. They could provide their employees with all the
necessary resources to go about their daily activities. This will give them more morale to
continue with their tasks because they know their health or well being is not in any
danger.
Another source of motivation stem from flexible organisational structure. Firms that
allow employees to make their own decision or those ones that allow them to have some
form of autonomy in their project group will go a long way in enhancing motivation
within the organisation.
Motivation can also be achieved by institution of training and development strategies.

This can be achieved for both new and old employees. Motivation and training are
interlinked; training instils employees with the necessary skills and knowledge necessary
continue with their day to day tasks. Training done on a regular basis ensures that
employees have confidence when handling clients or when doing other technical skills.
This will contribute to the nature of service delivery in the company and there will be
greater achievement of organisational culture. (Bartol et al, 2005)
Overly, motivation gives employees the energy and drive to bring positive changes to the
organisation. When managers use motivational tools regularly, they will create an
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organisation culture that has extremely motivated individuals; this will be manifested in
their output or behaviour. The latter will be directed towards achievement of
organisational goals and such companies will be way above the rest.
Managers with the right qualities have the ability to affect organisational culture and
hence employee behaviour. Managers should endeavour to display attributes of justice
and honesty. This can be achieved through the honesty during interaction with
employees. When leaders need to solve disputes between their employees, they should do
this in a fast and fair manner. The disagreeing parties should be accommodated
effectively in this process. By being just, employers will be showing their employees that
the company is on their side and this will go a long way in enhancing transparent
organisational culture. Such a culture will be depicted by committed workers who have
confidence in their organisation. (Allen, 1985)
Another quality that should be emphasised by managers is the participative culture. This
can be achieved by working with employees. Organisations should try their best to create
an environment where employers and employees collaborate to complete tasks. There is
nothing that will many employees over like a leader who walks his talk'. Such
employees will be encouraged to place more efforts or to go that extra mile because they
realise that their employees will do the same too.
Leaders could also try to be more understanding of their employees. They should try and
learn their employees and understand what the most important things to their employees
are. Some employees may be motivated to work harder by money. Some employees may
be motivated by continuous challenges in their tasks. On the other hand, others may
prefer seeing the satisfaction on clients' faces. If employers can understand their
employees as individuals, then they can customise motivational tools to create an
organisational culture where most of the employees are satisfied by their motivational
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tools. This kind of culture will be depicted in the way most of these employees behave.
(Weick, 1979)
The study on employees behaviour can be explained with the help of dimensions such as
Absenteeism, Creativity stimulants, Attrition rate, employee satisfaction. These
dimensions help us to understand the employees behaviour in better manner. Some of
these dimensions are explained in detail below
1. ABSENTEEISM :
Absenteeism is a symptom of a rather complex disease. An employee has to remain

absent for one or other reason. It is difficult to say what percentage of it is avoidable or
preventable. One observer has highly said that, Strikes and lockouts steal the limelight,
absenteeism does not. One is like heart attack; the other is like a cancer. Both can be fatal
for industry and therefore, they should be checked before much damage is caused to the
industry, workers, and the employers.
Various views have been expressed to explain the phenomenon of absenteeism.
Many observers have written about their own experiences as managers or what they have
seen about the behaviour of other managers. President of New Jersey Bell Telephone,
Chester Barnard, saw management as an art rather than a science, involving feeling,
proportion, balance, appropriateness and the ability to make decisions under conditions of
risk (risk is the known probability of success or failure) and uncertainty (uncertainty is
the lack of knowledge about ones risk). For him, managers were concerned with three
areas:
Formulating purposes and objectives.
Maintaining organizational communication and
Securing necessary services from others
For a manager who fails to handle any of these three areas, the problems like
absenteeism, unproductivity, dissatisfaction start.
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Mr. R. Krishna Murthy, in his editorial article Controlling Absenteeism ,mentions the
following :
Absenteeism is a problem that afflicts industry uniformly. The problem of absenteeism

gets aggravated during the harvest season, during the monsoon, when many working in
industries go back to the villages. Festival seasons and the marriage seasons also
contribute to the absenteeism problem. In many cases, absenteeism can go even about
40% of the total workforce and poses serious problems for an organization. In the process
industries, the problem of absenteeism has become serious, for overtime is required to be
paid to employees who have to continue working because their relievers dont turn up
and those working two shifts are not just a few in number. One of the ways to check
absenteeism is to make the employee realize the value of a job. This is taken for granted.
The managements have also to share in the blame for very few organizations have taken
consistent and effective steps to control absenteeism. While counseling works with about
10% of the chronic absentees to their senses. A few organizations have also associated
the union in the process of controlling absenteeism. Before the organization decides to
terminate an employee where, inspite of involvement of the union, the attendance of an
employee does not improve, the organization terminates the employee.
According to one line of thought, absenteeism is due to lack of commitment on the part
of the workforce kera Clark and his associates are of the opinion that since the degree
of commitment varies with the degree of countries industrial growth or maturity,
absenteeism is inversely related to the industrial development.
Absenteeism is more than a behaviour pattern writes Doctor C. Veil and is regarded
differently by the employer
2. ATTRITION RATE :
Churn rate (sometimes called attrition rate), in its broadest sense, is a measure of the
number of individuals or items moving into or out of a collective over a specific period of
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time. It is one of two primary factors that determine the steady-state level of customers a
business will support. The term is used in many contexts, but is most widely applied in
business with respect to a contractual customer base. For instance, it is an important
factor for any business with a subscriber-based service model, including mobile
telephone networks and pay TV operators. The term is also used to refer to participant
turnover in peer-to-peer networks. The phrase is based on the English verb churn,
meaning 'to agitate or produce violent motion'.
Customer base
Churn rate, when applied to a customer base, refers to the proportion of contractual
customers or subscribers who leave a supplier during a given time period. It is a possible
indicator of customer dissatisfaction, cheaper and/or better offers from the competition,
more successful sales and/or marketing by the competition, or reasons having to do with
the customer life cycle. The churn rate can be minimized by creating barriers which
discourage customers to change suppliers (contractual binding periods, use of proprietary
technology, unique business models, etc.), or through retention activities such as loyalty
programs. It is possible to overstate the churn rate, as when a consumer drops the service
but then restarts it within the same year. Thus, a clear distinction needs to be made
between 'gross churn', the total number of absolute disconnections, and 'net churn', the
overall loss of subscribers or members. The difference between the two measures is the
number of new subscribers or members that have joined during the same period.
Suppliers may find that if they offer a loss-leader introductory special, it can lead to a
higher churn rate and subscriber abuse, as some subscribers will sign on, let the service
lapse, then sign on again to take continuous advantage of current specials.
Employee turnover
I n some business contexts, churn rate could also refer to high employee turnover within a
company. For instance, most fast food restaurants have a routinely high churn rate among
employees. For larger companies, such as Fortune 500 companies, the attrition rate tends
to be much lower compared to a Fast Food franchise. The company size and industry also
play a key role in attrition rate. An acceptable attrition rate for a given company is
relative to its industry. It would not likely be useful to compare the attrition of Fast Food
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employees with a Fortune 500 company in a corporate setting. Regardless of industry or
company size, attrition rate tends to be highest among the lowest paying jobs, and lowest
for the highest paying jobs.
Attrition Rate has always played a role in how cash flow is affected for employee payroll.
For example, if a company has 10,000 employees, and needs to save money on payroll, it
may be wise to simply institute a temporary hiring freeze knowing that some people
will leave the company through natural attrition, thus saving employee payroll by not
replacing or hiring new employees. It could be expected that if the average employee
makes $40,000 per year, and the company has 10,000 employees, a natural attrition rate
could be between 1% and 5% depending on the size and industry of the company. A rate
of 5% or more for a larger company most often indicates layoffs in addition to natural
attrition, early retirement, and firing.
Employee moves
Churn rate can also describe the number of employees that move within a certain period.
For example, the annual churn rate would be the total number of moves completed in a
12-month period divided by the average number of occupants during the same 12-month
period. Monthly and quarterly churn rates can also be calculated.
Talent or human resource is a major asset for any company. Company Invest high
amount of money for their recruitment, selection & training and what happens to
company if these Talents or Employees leave the organization in short while seeking new
opportunities.
Indian Pharmaceutical Industry is one of the fastest growing knowledge based sector
with annual attrition rate of near about 30-35% compared to the global Pharmaceutical
attrition rate of 10-12% per annum. Current statistics show that higher attrition rate
problem mainly exists in Marketing and R&D departments."" Attrition rate in R&D is
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very high even higher then marketing, the reason may be shortage of skilled and
experienced R&D professionals or increasing opportunities due to globalization and
R&D outsourcing in India which have created a sudden demand for skilled research
peoples.
Major reasons for high attrition rate stated by employees are poor management,
uninteresting job, lack of motivation, job lacking opportunity for future advancement, and
inadequate salary or compensation plan. The immediate gain in salary package was found
to be responsible for job change in 61 per cent of the cases.
Leaving company by the employee not only leads to loss of money for the company in
his training and development of knowledge but it also increase the threat of information
security if employee moves to rival company and loss of the business ( from the
customers the employee directly deals with) .
Attrition is a universal phenomenon and no industry is devoid of it, but the degree
fluctuates from industry to industry. Major pharmaceutical companies in India are age-
old and established, having their own culture and work practices and therefore, employee
turnover will be a common phenomenon in such companies. But the CRO's are in a
nascent stage and it's too early to comment, Abraham says. According to Beena Handa,
Vice-President-HRM of Claris Lifesciences, attrition is a serious issue in the
pharmaceutical industry because the industry is knowledge-based and hence employees
are its assets.
Many HR experts believe that money, though a key factor, is not the only one which
makes employees quit. Attrition also happens when people hate their working
conditions, do not like their team-mates or perhaps do not like what they are doing. There
are also cases when people leave their job for family reasons or when they wish to
migrate. For example, girls often leave their jobs when they get married and shift to
another city, says Handa.
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Experts also believe that organisational culture has a great impact on who stays and who
goes. And the culture of an organisation is determined by the quality of the relationship
between bosses and their subordinates. According to a popular sayingemployees never
leave the company, they leave their bosses. An inefficient boss creates poor work culture,
which is one of the frequent reasons for quitting.
Employers often fail to understand the importance of providing opportunities for

development of their employees or their career growth. A conducive working
atmosphere, good culture, training and career growth with adequate salary are some
provisions that control attrition, according to Abraham. Pagdiwalla asserts that at Intas,
organisational culture does not give way for attrition. We have an open, vibrant and
dynamic culture where there is a lot of space for communication too, he says.
Every employee comes to his organisation with some aspiration, says Handa. An
organisation is viewed as a place where employees meet their aspirations of growth and
development, values of trust, teamwork and transparency. If a company respects them
and their skills, realise their potential and provide them with a healthy environment to
learn and grow with flexible compensation, employees take that as a strong reason to stay
on. Recognising the contribution of outstanding achievers also inspires others to try hard
and put in their best. A good organisational behaviour also focuses on areas like training,
career development and believe in equipping workforce better on the professional front.
Experts say that good organisational behaviour is instrumental in extending the tenure of
employees in the organisation as it increases their self-esteem, confidence, morale and
motivation. A substantial growth of employee's self-esteem is as important as the concept
of learning in the industry. Otherwise, experts fear that pharmaceutical organisations will
meet a sorry fate as far as retention policies are concerned.
Supply vs demand
However, Handa describes attrition as the function of demand and supply. The demand
comes from the growth of the industry and the policy of the company. These two things
decide whether there is a demand of fresher or experienced employees. On the other
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hand, the supply comes from the educational institutions and the market, she explains.
She asserts that while the supply from the educational institutions is enough to meet the
demands of the pharmaceutical industry, there is a lack of experienced people in the
industry, which in turn has created an imbalance. The imbalance is crucial to the growth
of the industry. While the industry is growing, not all companies are capable of taking
fresh people and groom them. Hence, the current status demands experienced people and
shortage of skills or retaining existing employees pose an issue for the industry.
Increasing the pie
In the current scenario, the demand of experienced and good employees is actually
outstripping the supply. In such a situation, higher salary structures pose a major
challenge in controlling attrition levels in the industry. Moreover, the salary growth plan
is not well defined as well. All this encourages poaching by companies offering higher
salaries. Though the salary is decided keeping in line with the market trends, the
qualification, experience and the attitude of the individual matters. Salary or even
increments are dependent very much on what kind of value adding the person is or will
do in the organisation, says Handa. Agrees Abraham. He adds, Internal imbalances
should be avoided.
When it comes to attracting talent, throwing fat carrots at potential employees can
boomerang on the company. According to Pagdiwalla, fighting with salaries,
prerequisites or designations as retention tools can prove to be self defeating since rivals
can also follow the same path. Besides, HR experts from the industry believes that out
paying is not a winning tactic for companies. The organisation's reward strategy reflects
its power to drive quality employees. Apart from salary, recognition of work is a healthy
retention strategy. If the organisation values its employees, recognises and appreciates
their skills and work, it pays. It is important to keep an eye on fast track people who are
intelligent and excellent performers. Performance is a primary requirement; therefore,
excellent performers should be valued. They should be identified, nurtured and provided
growth opportunity, according to Handa.
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HR's role and strategies
As the struggle for reducing employee attrition rates is intensifying, recruiters are putting
renewed efforts in identifying talent, which is committed and productive. However, while
everyone is competing for talent, in experts' opinion, a hiring spree can be a blunder
sometimes. Stringent recruitment process could help reduce attrition to a certain extent.
An internal referral mechanism is also very useful in reducing attrition rates in
companies. A thorough analysis of a candidate's background or behaviour pattern,
adaptability or liking would help the organisation with good resource pool and less
attrition rates. When we recruit an outstation candidate, we need to keep in mind that
there could be an inclination for that candidate to move to a place closer to his or her
native place. Such facts should be kept in mind while making a decision, says Abraham.
Hiring stayers rather than stars is yet another strategy.
According to experts, some of the most talented people often have the tendency to move
on. The reason being their eagerness to climb by shifting from one company to another.
But Handa opines that frequent job hoppers are not the ultimate gainers. They gain or
earn only in terms of money but those who opt to work in one organisation for long are
able to learn and gain experience which pays in the long term, she explains. An efficient
HR focuses on creating a good work culture and work out different strategies in line with
organisational philosophy. According to experts, HR managers must use the combination
of growth, learning opportunity and pay attention to employees' personal needs and
participation. The needs of the employees should be regularly gauged through open
communication, polls and feedback mechanisms to maintain consistency in performance
and high motivation levels.
3. EMPLOYEE SATISFACTION :
Employee satisfaction is the terminology used to describe whether employees are happy
and contented and fulfilling their desires and needs at work. Many measures purport that
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employee satisfaction is a factor in employee motivation, employee goal achievement,
and positive employee morale in the workplace.
Employee satisfaction, while generally a positive in your organization, can also be a

downer if mediocre employees stay because they are satisfied with your work
environment.
Factors contributing to employee satisfaction include treating employees with respect,

providing regular employee recognition,empowering employees, offering above industry-
average benefits and compensation, providing employee perks and company activities,
and positive management within a success framework of goals, measurements, and
expectations.
Employee satisfaction is often measured by anonymous employee satisfaction surveys

administered periodically that gauge employee satisfaction. (I do not support these.)
Employee satisfaction is looked at in areas such as:
management,
understanding of mission and vision,
empowerment,
teamwork,
communication, and
coworker interaction.
The facets of employee satisfaction measured vary from company to company.
A second method used to measure employee satisfaction is meeting with small groups of
employees and asking the same questions verbally. Depending on the culture of the
company, either method can contribute knowledge about employee satisfaction to
managers and employees.
Exit interviews are another way to assess employee satisfaction in that satisfied
employees rarely leave companies.
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Job satisfaction has always been in debate by researchers and practitioners. It has gained
much importance due to its significance for achievement of overall organizational goals.
Rapid changes in the business world have made human resource the most vital asset for
organizations. Now productive and efficient employees are need of time. Employee
productivity and effectiveness is outcome and result of their level of satisfaction with the
job and organization as a whole.
Employees are considered to be one of the most important pillars on which building of
organizations stands. Organizations hold many resources that might be divided in
physical and human resources. Utilization of non-human resources is not possible without
efforts of the human resource. So, human resource is the asset that enables organizations
to reap benefits from other sources. Every activity is directly or indirectly backed by
human efforts. Organizations try to hire and retain best work force in order to get best out
of them. Having employees and retaining them is not enough, having and making best
use of employees is the core of game. For this purpose organizations should hold best
employees. Best employees are those which are willing to put their best for the
betterment of the organization. While selecting such employees the concentration really
moves towards the satisfied employees. Satisfied employees offer huge returns to
organizations. The construct of employee satisfaction is important as satisfied employees
can do more for organization in shape of better performance and productivity (Scheider,
1987). Realizing the significance of employee satisfaction for organization, various
researchers have studied job satisfaction in various perspectives.
Various organizational set ups have been considered as area where job satisfaction should
be studies like: Akhtar, (2000); Bailey (2002); Blegen, (1993); Dutka, (2002);
Ghaseminejad, Siadat & Nouri, (2005); Hollifield, 2005; and Kindt, 2008. Job
satisfaction is an important variable as it is directly related with other organizational
variables like employees engagement with organization, organizational behavior,
organizational involvement, organizational commitment, organizational involvement,
turnover, absenteeism, substance abuse, and deviant behavior of the employees at
workplace (Judge, Thoresen, Bono & Patton, 2001; Kreitner & Kinicki, (2006;) and
Patterson, Warr & West, (2004). Employees who have higher level of satisfaction are less
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likely to quit their jobs, they are also less willing to opt for other jobs, they remain
present in their job and their absenteeism rate is much low then other workers. This in
return saves various costs of organizations like recruitment and selection cost, as new
hiring would not be required. Similarly, it will save training cost as the existing
workforce would be more knowledgeable (Smith, 1992). Positive attitude (job
satisfaction) of an employee towards his job has significant relationship with increased
effectiveness, reduced absenteeism and reduced turnover of the employees in the
organization (Robbins, Millett, Cacioppe &Waters-Marsh, 1998).
Out of the organizational factors that determine job satisfaction organizational climate is
one of the most important determinants. As noted by McNabb & Spector (2003) that
organizational climate is a factor that has significant bearing on the job satisfaction, and
has a significant and direct bearing on the job related behaviors of workforce. Various
researchers have given different dimensions of organizational climate for instance
Dastmalchian (1991) discussed four dimensions of organizational climate, those are,
Overall environment of organization, employees role conflicts, internal communication,
and support 65 from supervisors. Chappell (1995) also discussed dimensions of
organizational climate and found that there are seven dimensions of organizational
climate, these dimensions are political climate, promotion, regard for personal concern,
evaluation, professional development opportunities, internal communication, and
organizational structure.
Job satisfaction is one of the widely discussed topics of employees behaviors at work.
Satisfaction of employees is a concern for organizations as it leads to higher productivity,
low turnover, reduced absenteeism, increased moral and many other positive returns. Out
of the determinants of employee satisfaction organizational climate is an important factor.
Deal & Kennedy, (1992) found that there is a significant relationship between
organizational climate and job satisfaction. The supportiveness of organizational climate
has positive relationship with job satisfaction, commitment with the organization and
performance at work (Burrus, 1996; and Al-rahimi, 1990). In the words of Chen et al.
(2004), employees at workplace make the organizational climate; more motivated
employees will positively affect the climate, devote more time and effort to enhance their
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skills for future professional development. There are four dimensions of organizational
climate i.e. Employee role conflicts, overall organizational environment, supervisors
support, and internal communication (Dastmalchian, 1991). There are five facets of job
satisfaction i.e. Autonomy, power and control, Participation in decision making,
Interpersonal relations, Compensation package (salary, & fringe benefits), and
Professional effectiveness. Participation in decision making, Interpersonal relations,
Compensation package (salary, & fringe benefits), and Professional effectiveness.
Autonomy, Power and Control & Job Satisfaction
The autonomy is the ability to make decision independent of any external influence.
Moreover, it is the extent to which the job provides freedom, independence, and
discretion to the individuals in scheduling their work and in determining the procedures
to be used in carrying it out. Power is the ability to influence others their behavior and
make them things do (Pfeffer, 1992). Control is to keep the things according to the
structure originally designed (Robbins, 1996).
The research of Twombley and Amey (1994) reflected that autonomous environment is
direct opposite to the structured environment. Luthans (2002) found that autonomy
increases job satisfaction of employees. Positive and significant relationship was found
between autonomy to plan and implement, and job satisfaction (Shaw, Duffy, & Stark,
2000). Similarly, power to lead others also depicts higher level of job satisfaction (Lo,
Min, and Ramayah, 2007). The research findings of Hechanova, Alampay and Franco
(2006) also indicated positive and significant relationship between empowerment of
employees and their job satisfaction. While concluding regarding control, it was found
that employees having trust in management feel more control on their jobs and exhibit
more job satisfaction (Lawler, 1986; Tarver, Canada & Mee-Gaik, 1999; and Vaughan,
1989).
Participation in Decision Making and Job Satisfaction
Participation in decision making has been in great discussion by researchers in various

perspectives. It is important due to its effect on the effectiveness of organization,
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productivity and employees job satisfaction (Conway, 1984). It was found in the study
by Lindelow et al., (1989) that participative decision making has a significant effect on
the effectiveness of the organization; so the process of decision making should be placed
at the gross root level in the organization (Drucker, 1973). Similarly Lindelow (1989)
observed that increased participation in decision making enhances the organizational
performance and job satisfaction of the employees. The research by Campbell, Fowles
and Weber (2004) noted that job satisfaction could be enhanced with increasing
participation in decision making and avoiding ambiguity in identifying responsibilities at
workplace.
Interpersonal Relations (Subordinates, Peers & Superiors) and Job Satisfaction
Interpersonal relations are social associations, connections, or affiliations between the

people interacting with each other at same workplace or from other workplace or working
together in the shape of virtual teams (Lauria, 1964). Greater the level of interpersonal
relation among employees greater will be overall satisfaction level of the employees
(Ronald, Burke & Wilcox, 1969). Similarly, higher the mutual trust of superior and
subordinate more will be internal communication and higher will be satisfaction level
(OReilly & Roberts, 1974). Fiddler & Chemers (1974) in his study found that free
communication build good interpersonal relations resulting in job satisfaction of the
employees. If there is harmony amongst the relationships of seniors and subordinates
there would be higher level of satisfaction and commitment of employees (Posner &
Munson, 1979), similar findings were given by Kim (2002).
Compensation Package (salary & fringe benefits) and Job Satisfaction
Employees invest their time and effort in organization/s and expect fair returns for their
investment. In the words of Delery, Gupta Shaw, Jenkins and Ganster (2000); and Rynes,
Schwab & Heneman (1983) there should be balance in investment and return on
investment is important to attract and retain the employees in the organization. The
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balance between inputs of a person equal to the outcomes of a person has positive
relationship with (motivation) job satisfaction (Adams, 1965).
It was observed by Greenberg (1990) in his study that decreases in compensation causes
job dissatisfaction if such decreases are not justified with some convincing reasons. The
research evidence showed that job satisfaction depends upon the expectations of the
employees as female expects less pay in comparison to their male counterparts and
exhibit more job satisfaction (Major, 1994; Steel & Lovrich, 1987; Varca, Shaffer &
McCauley, 1983). Internal and external equity of fixed pay, pay raise, flexible pay and
other benefits showed positive influence on the job satisfaction of workers (Igalens &
Roussel, 1999). If employees are satisfied about compensation package there will be
higher level of job satisfaction, motivation and organizational commitment (Shapiro,
1976). The research in this regard reflected that comparison with others and fairness had
positive relationship with job satisfaction (Heneman, 1985; and Austin, McGinn &
Susmilch, 1980).
Professional Effectiveness and Job Satisfaction
Professionally effective employees know how to make themselves more effective while
working in the same organization and feel themselves enabled to achieve their objectives
and having less frequency to leave the job and perform better. Effective employees
manage their time, constructively handle conflict, communicate goals and plan more
successful projects in comparison to the employee who feel otherwise. The organization
with effective employees has competitive advantage over other organizations and they
are more focused in the face of obstacles by effectively managing stress at workplace
(Adams & Waddle, 2002). Professional effectiveness can be sharpened through learning
of employees for self-awareness, that is, self-management, social awareness, managing
relationships at the workplace. It was revealed by the research of (Kindt, 2008) that
professional effectiveness, interpersonal relations (subordinates, peer, and supervisors),
and participation in decision making were significantly related with the job satisfaction.
214
CHAPTER 7
DATA INTERPRETATION
215
CHAPTER 7
DATA INTERPRETATION
For the analysis of data information is collected through questionnaire method. List of
questions in systematic ordered is given to the respondents for collection of data.
Information is collected for following demographic factors.
1. City
2. Type of organization
3. Gender
4. Age group
5. Monthly income
6. Experience
1. CITY OF RESPONDENTS
Information about city of respondent is also collected. This information is

classified into three Cities Mumbai, Pune, and Nasik. Classified information is
presented in the following table.
Table 7.1 of Respondents according to City
Number of
City Respondents Percent
Mumbai 600 60.0
Nasik 100 10.0
Pune 300 30.0
Total 1000 100.0
216
Above table indicate that out of total 1000 respondents, maximum 600 respondents are
from Mumbai, 300 from Pune and remaining 100 from Nasik city. Above information is
presented using pie diagram 7.1 as shown below
Diagram of Respondents according to City
300
Mumbai
Nasik
Pune
600
100
2. TYPE OF ORGANIZATION OF RESPONDENTS

Information about Respondent belongs to which type of organization is also
recorded. All respondents are classified into two groups. Group one is known as
MED+LS (Medium Scale Companies and Large Scale Companies). Group two is
referred as SSI (Small-Scale Industry). Classified information is presented in the
following table.
Table 7.2 of Respondents according to type of Organization
Type of Number of
Organization Respondents Percent
MED+LS 375 37.5

217
SSI 625 62.5
Total 1000 100.0

Above table indicate that out of total 1000 respondents, 375 respondents are from
MED+LS and remaining 625 respondents from SSI. Above information is
presented using pie diagram 7.2 as shown below.
Diagram of respondents according to type of organization
375
MED+LS
SSI
625
3. GENDER OF RESPONDENTS
Information about gender of respondent is collected. This information is classified
into two groups. Group one is known as Male. Group two is referred as Female.
Classified information is presented in the following table.
Table 7.3 of Respondents according to Gender
Gender Frequency Percent
Female 343 34.3
Male 657 65.7
Total 1000 100.0
218
Above table indicate that out of total 1000 respondents, 343 respondents are
females and remaining 657 are male respondents. Classified information is
presented using pie diagram 7.3 as shown below
Diagram of respondents according to Gender
343
Female
Male
657
4. AGE GROUP OF RESPONDENTS

Information about age group of respondent is collected. This information is classified
into three groups. Group one is known as Elderly age. Group two is referred as
Middle age. Group three is referred as Young age. Classified information is presented
in the following table.
Table 7.4 of Respondents according to Age group
Age group Frequency Percent
Elderly age 165 16.5
Middle age 371 37.1
Young age 464 46.4
Total 1000 100.0
219
Above table indicate that out of total 1000 respondents, 165 respondents are of Elderly
age, 371 are of Middle age, and 464 are of Young age. Above information is presented
using pie diagram 7.4 as shown below.
Diagram of respondents according to age group

165
Elderly age
464
Middle age
Young age
371
5. MONTHLY INCOME OF RESPONDENTS

Information about Monthly income of Respondents is collected. This information is
classified into three groups. Group one is known as High. Group two is known as Low.
Third group is known as Medium. Classified information is presented in the following
table. Table 7.5 of Respondents according to Monthly Income
Monthly income Frequency Percent
High 207 20.7
Low 373 37.3
Medium 420 42.0
Total 1000 100.0
220
Above table indicate that out of total 1000 respondents, 207 respondents are of High
income, 373 are of low income, and 420 are of Medium income. Above information is
presented using pie diagram 7.5 as shown below.
Diagram of Respondents according to Monthly Income
207
420
High
Low
Medium
373
6. EXPERIENCE OF RESPONDENTS
Information about experience of Respondents is collected. This information is classified
into three groups. Group one is known as highly experienced. Group two is known as less
experienced. Group three is known as medium experienced. Classified information is
presented in the following table.
Table 7.6 of Respondents according to Experience
Experience Frequency Percent
Highly Exp 205 20.5
Less Exp 455 45.5
Medium Exp 340 34.0
Total 1000 100.0
221
Above table indicate that out of total 1000 respondents, 205 respondents are highly
experienced, 455 are less experienced, and 340 are medium experienced. Above
information is presented using pie diagram 7.6 as shown below
Diagram of Respondents according to Experience
205
340
Highly Exp
Less Exp
Medium Exp
455
222
DIMENSIONS OF ORGANIZATION UNDER STUDY.
1. STRUCTURE OF ORGANIZATION
To understand the structure of the organization eleven questions are asked to the
respondents and response to these questions is recorded in the following table 7.6.1
Q. NO. Strongly Disagree Neither Agree Strongly Total

Disagree agree nor agree
Disagree
1 293 98 207 189 213 1000
2 16 12 433 411 128 1000
3 47 234 195 95 429 1000
4 113 174 64 589 60 1000
5 13 185 540 148 114 1000
6 218 430 225 67 60 1000
7 419 238 175 146 22 1000
8 276 374 177 157 16 1000
9 226 336 271 114 53 1000
10 79 247 372 249 53 1000
11 116 212 241 263 168 1000
Above table 7.6.1 indicate response for all eleven questions from 1000 respondents.
For question one out of 1000 respondents maximum 293 respondents strongly disagree
for the statement that Organizational goal and objectives are clear to me. And
minimum 98 respondents disagree for the statement.
For question two out of 1000 respondents maximum 433 respondents neither agree nor
disagree for the statement that Employees have shared understanding of what the
organization is suppose to do. And minimum 12 respondents are disagree for the
statement.
223
For question three out of 1000 respondents maximum 429 respondents strongly agree for
the statement that Clear reporting structure have been established . and minimum 47
respondents strongly disagree for the statement.
For question four out of 1000 respondents maximum 589 respondents agree for the
statement that Roles and responsibilities are clearly defined. And minimum 60
respondents strongly agree for the statement.
For question five out of 1000 respondents maximum 540 respondents respondents neither
agree nor disagree for the statement that, Policies for hierarchy of communication are
framed. And minimum 13 respondents strongly disagree for the statement.
For question six out of 1000 respondents maximum 430 respondents disagree for the
statement that, Hierarchy of communication is executed according to policies. And
minimum 60 respondents strongly agree for the statement.
For question seven out of 1000 respondents maximum 419 respondents strongly disagree
for the statement that, Senior management sets high standard of excellence and
For question eight out of 1000 respondents maximum 374 respondents disagree for the
statement that, senior management treats employees fairly and minimum 16 respondents
strongly agree for the statement.
For question nine out of 1000 respondents maximum 336 respondents disagree for the
statement that, This organization has activities such as corporate social responsibilities
and minimum 53 respondents strongly agree for the statement.
For question ten out of 1000 respondents maximum 372 respondents neither agree nor
disagree for the statement that, There is a quality circle in this organization and
For question eleven out of 1000 respondents maximum 263 respondents agree for the
statement that, Member of quality circle in this organization meet regularly and
minimum 116 strongly disagree for the statement.
224
Figure 7.6.1 Table of response for Que no 1 to 11
Strongly Disagree
700 Table of response for Que no 1 to 11
Disagree
589
600 Neither agree nor
540
Disagree
Agree
500
433
430
429
419
411
No of Respondents
374
372
400
336
293
276
271
263
300
249
247
241
238
234
226
225
218
213
212
207
195
189
185
177
175
174
168
200
157
148
146
128
116
114
114
113
98
95
79
100
67
64
60
60
53
53
47
22
16
16
13
12
0
Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8 Q-9 Q-10 Q-11
225
2. LEADERSHIP OF ORGANIZATION
To understand the leadership of the organization five questions are asked to the
Q. NO Strongly Disagree Neither Agree Strongly Total

Disagree
1 179 249 225 192 155 1000
2 385 414 120 47 34 1000
3 489 321 129 44 17 1000
4 493 341 60 58 48 1000
5 503 294 73 66 64 1000
Above table indicate response for all five questions from 1000 respondents
For question one out of 1000 respondents maximum 249 respondents disagree for the
statement that Our organisation is a leader in the industry and minimum 155
For question two out of 1000 respondents maximum 414 respondents disagree for the
statement that Our organisation is a strong competitor in key growth areas and
minimum 34 respondents are strongly agree for the statement.
For question three out of 1000 respondents maximum 489 respondents strongly disagree
for the statement that Our organisation leadership has a clear vision of the future.. and
For question four out of 1000 respondents maximum 493 respondents strongly disagree
for the statement that Our organisation leadership has made changes which are positive
for the company and minimum 48 respondents strongly agree for the statement.
For question five out of 1000 respondents maximum 503 respondents respondents
strongly disagree for the statement that, Our organisation leadership has made changes
which are positive for me.. And minimum 64 respondents strongly agree for the
statement.
226
Figure 7.6.2 Table of response for Que no 12 to 16
600 Strongly Disagree
Table of Response for Que no 12 to 16
503
493
Disagree
489
500
Neither agree nor
414
Number of Respondents
385 Disagree
400 Agree
341
321
Strongly agree
294
300
249
225
192
179
200
155
129
120
100
73
66
64
60
58
48
47
44
34
17
0
Q-1 Q -2 Q -3 Q -4 Q -5
227
3. POLITICAL ENVIRONMENT OF ORGANIZATION
To understand the Political Environment of the organization eight questions are asked to
the respondents and response to these questions is recorded in the following table 7.6.3.

Disagree
1 73 186 379 188 174 1000
2 304 405 113 112 66 1000
3 309 210 244 165 72 1000
4 223 324 242 144 67 1000
5 176 147 274 224 179 1000
6 156 257 254 243 90 1000
7 222 296 152 135 195 1000
8 248 220 178 141 213 1000
Above table indicate response for all eight questions from 1000 respondents.
For question one out of 1000 respondents maximum 379 respondents neither agree nor
disagree for the statement that, I feel valued as an employee in this organization and
minimum 73 respondents strongly disagree for the statement.
statement that , I enjoy being part of this organization and minimum 66 respondents
strongly agree for the statement.
for the statement that , Work pressure is uniform for all employees in the organization
For question four out of 1000 respondents maximum 324 respondents disagree for the
statement that , My department has adequate tools ( or resources) to perform our work
228
For question five out of 1000 respondents maximum 296 respondents neither agree nor
disagree for the statement that , I receive complete information in time to perform my
job well. and minimum 147 respondents disagree for the statement.
statement that , Employees speak very highly about this organization. and minimum
90 respondents strongly agree for the statement.
For question seven out of 1000 respondents maximum 296 respondents disagree for the
statement that , My direct senior listens to my ideas and concern. and minimum 135
respondents agree for the statement.
For question eight out of 1000 respondents maximum 248 respondents strongly disagree
for the statement that , My direct senior makes sure that I have clear goals to achieve.
and minimum 141 respondents agree for the statement.
Figure no 7.6.3 Table of respondents for Que 17 to 24

405
Table of Respondents for Que no 17 to 24

379
400 Disagree
324
350 Neither agree nor

309
304
Disagree
296
274
300
257
254
248
244
243
242
224
223
222
220
250
213
210
195
188
186
179
178
176
174
165
200
156
152
147
144
141
135
150
113
112
90
100
73
72
67
66
50
0
Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8
229
4. IMPLEMENTATION OF EVALUATION AND APPRAISAL OF
ORGANIZATION
To understand the Implementation of Evaluation and appraisal of Organization five

questions are asked to the respondents and response to these questions is recorded in the
following table 7.6.4
Q. NO Strongly Disagree Neither Agree Strongly Total
Disagree
1 176 291 299 122 112 1000
2 345 489 100 10 56 1000
3 525 367 56 27 25 1000
4 447 380 81 45 47 1000
5 457 161 214 108 60 1000
disagree for the statement that I believe senior management appreciates the work I do
statement that Do you have system of performance appraisal in your organization and
minimum 10 respondents agree for the statement.
for the statement that Nature of appraisal is completely unbiased.. and minimum 25
for the statement that I get feedback of my performance appraisal and minimum 45
For question five out of 1000 respondents maximum 457 respondents strongly disagree
for the statement that, Performance appraisal is adequate in this organization and
Figure no 7.6.4 Table of respondents from Que no 25 to 29
230
600
Table of Respondents from Que no 25 to 29 Strongly
Disagree
525
Disagree
489
500
457
447
Neither
agree nor
Disagree
380
400
367
345 Agree
299
291
300 Strongly
agree
214
176
200
161
122
112
108
100
100
81
60
56
56
47
45
27
25
10
0
Q-1 Q-2 Q-3 Q-4 Q-5
231
5. Supervisory style of Organization
To understand the supervisory style of the organization six questions are asked to the
Disagree
1 86 226 386 135 167 1000
2 98 276 80 172 374 1000
3 185 218 106 315 176 1000
4 109 246 105 294 246 1000
5 179 203 173 203 242 1000
6 230 110 70 182 408 1000
Above table indicate response for all six questions from 1000 respondents.
disagree for the statement that Employee have good balance between organizational
work and personal life and minimum 86 respondents strongly disagree for the
statement.
For question two out of 1000 respondents maximum 374 respondents strongly agree for
the statement that Supervisory in this organization is satisfactory and minimum 80
respondents neither agree nor disagree for the statement.
For question three out of 1000 respondents maximum 315 respondents agree for the
statement that Supervisor always encourage us work as team. and minimum 106
statement that Supervisor always appreciate my good performance and minimum 105
For question five out of 1000 respondents maximum 242 respondents strongly agree for
the statement that, Supervisor maintain reasonably high standard of performance and
minimum 173 respondents neither agree nor disagree for the statement.
232
For question six out of 1000 respondents maximum 408 respondents strongly agree for
the statement that, My supervisor always help me in improving my performance and
minimum 70 respondents neither agree nor disagree for the statement.

Table of Respondents for Que no 30 to 35
408
Disagree
386
400
374
Neither agree nor
Disagree
350
Agree
315
294
276
300
246
246
242
230
226
250
218
203
203
185
182
179
176
200
173
172
167
135
150
110
109
106
105
98
86
100
80
70
50
0
Q-1 Q-2 Q-3 Q-4 Q-5 Q-6
233
6. INTERNAL COMMUNICATION SYSTEM OF THE ORGANIZATION
To understand the internal communication system of the organization ten questions are
asked to the respondents and response to these questions is recorded in the following
table 7.6.6
Q.NO Strongly Disagree Neither Agree Strongly Total

Disagree
1 37 176 367 152 268 1000
2 87 309 71 195 338 1000
3 108 250 110 276 256 1000
4 57 209 181 291 262 1000
5 95 155 176 265 309 1000
6 106 172 115 192 415 1000
7 8 142 244 249 357 1000
8 43 47 134 259 517 1000
9 91 52 117 332 408 1000
10 214 161 107 193 325 1000
Above table indicate response for all ten questions from 1000 respondents.
disagree for the statement that I feel my inputs is valued by my co-worker and
For question two out of 1000 respondents maximum 388 respondents strongly agree for
the statement that Knowledge and information sharing is a group norm across the
organization and minimum 71 respondents strongly disagree for the statement.
For question three out of 1000 respondents maximum 276 respondents agree for the
statement that Employees consult each other when they need support. and minimum
108 respondents strongly disagree for the statement.
234
statement that Individuals appreciate the personal contribution for their co-workers and
For question five out of 1000 respondents maximum 309 respondents strongly agree for
the statement that, I trust the information I receive from senior management and
For question six out of 1000 respondents maximum 415 respondents strongly agree for
the statement that, My direct senior gives me helpful feedback on how to be more
effective and minimum 106 respondents strongly disagree for the statement.
For question seven out of 1000 respondents maximum 357 respondents strongly agree for
the statement that, I believe vertical communication is suitable in this organization and
For question eight out of 1000 respondents maximum 517 respondents strongly agree for
the statement that, I believe vertical and horizontal communication is necessary and
For question nine out of 1000 respondents maximum 408 respondents strongly agree for
the statement that, Interpersonal communication and relationships contributes to
organizational performance and minimum 52 respondents disagree for the statement.
For question ten out of 1000 respondents maximum 325 respondents strongly agree for
the statement that, Our face to face meetings are productive and minimum 107
235
600 Strongly
Table of Respondents for Que no 36 to 45 Disagree
Disagree
517
500 Neither agree
nor Disagree
Agree
415
408
367
400
357
338
332
325
309
309
291
276
268
300
265
262
259
256
250
249
244
214
209
195
193
192
181
176
176
172
200
161
155
152
142
134
117
115
110
108
107
106
95
91
87
100
71
57
52
47
43
37
8
0
Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8 Q-9 Q-10
7. CREATIVITY STIMULATION OF ORGANIZATION
To understand creativity stimulation of organization five questions are asked to the


Disagree
1 300 303 273 105 19 1000
2 400 340 130 88 42 1000
3 555 246 114 77 8 1000
4 642 147 46 128 37 1000
5 670 169 59 76 26 1000
236
For question one out of 1000 respondents maximum 303 respondents disagree for the
statement that Roles and responsibilities within the group are understood and minimum
19 respondents strongly agree for the statement.
For question two out of 1000 respondents maximum 400 respondents strongly disagree
for the statement that My skills and abilities are fully utilize in this organization and
for the statement that I have the opportunity to further develop my skills and abilities
for the statement that I find I am challenged in my current job and minimum 37
for the statement that, My work adds value to the organization and minimum 26
237
800 Strongly
Table of Respondents for Que no 46 to 50 Disagree
Disagree
670
700
642
Neither
600
555
agree nor
Disagree
Agree
500
Strongly
400
agree
400
340
303
300
273
300
246
169
200
147
130
128
114
105
88
77
76
100
59
46
42
37
26
19
0
Q-1 Q-2 Q-3 Q-4 Q-5
238
8. ETHICS AND RESPONSIBILITY OF ORGANIZATION
To understand ethics and responsibility of organization eight questions are asked to the
Disagree
1 241 289 318 103 49 1000
2 346 401 97 122 34 1000
3 500 257 132 57 54 1000
4 642 158 61 133 6 1000
5 700 215 28 12 45 1000
6 254 182 242 151 171 1000
7 255 109 148 278 210 1000
8 431 129 78 215 147 1000
Above table indicate response for eight questions from 1000 respondents.
disagree for the statement that Do you think that business ethics is based on individuals
morals only and minimum 49 respondents strongly agree for the statement.
statement that Do you think it is important to have business ethics and minimum 34
for the statement that Do you think that business ethics differ in various countries or
societies. and minimum 54 respondents strongly agree for the statement.
statement that Do you think that business ethics should only be determined by law and
for the statement that, I am acquainted with enterprises or organizations that are
"socially responsible and minimum 45 respondents strongly agree for the statement.
239
For question six out of 1000 respondents maximum 254 respondents strongly disagree
for the statement that, As a consumer, I am capable to penalize a enterprise (ex: not
buying its products/services), if I consider it "Socially irresponsible and minimum 151
For question seven out of 1000 respondents maximum 278 respondents agree for the
statement that, I am capable to pay more for a product produced by a socially
responsible" enterprise and minimum 210 respondents strongly agree for the statement.
For question eight out of 1000 respondents maximum 231 respondents strongly disagree
for the statement that, Have customers ever asked about environmental or social aspects
regarding your company or its products? and minimum 79 respondents neither agree nor
disagree for the statement.
800 Strongly
Table of Respondents from Que no 51 to 58 Disagree
700
700
642
Disagree
600
Neither
500
agree nor
500 Disagree
431
401
346
400
318
289
278
257
255
254
300
242
241
215
215
210
182
171
158
151
148
147
200
133
132
129
122
109
103
97
78
61
100
57
54
49
45
34
28
12
6
0
Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8
9. TEAMS AND TEAMS WORK
To understand teams and teams work eight questions are asked to the respondents and
response to these questions is recorded in the following table 7.6.9
240
Disagree
1 24 185 443 195 153 1000
2 287 440 158 76 39 1000
3 283 304 212 114 87 1000
4 161 328 262 161 88 1000
5 138 227 278 215 142 1000
6 81 305 250 247 117 1000
7 108 266 197 211 218 1000
8 95 230 226 197 252 1000
Above table indicate response for eight questions from 1000 respondents.
disagree for the statement that There is a common and agreed vision of future success
for the team and minimum 23 respondents strongly disagree for the statement.
statement that Team members have a common goal which motivates them to achieve a
desired result and minimum 39 respondents strongly agree for the statement.
For question three out of 1000 respondents maximum 304 respondents disagree for the
statement that Team members have shared values and beliefs which bind the team
together. and minimum 87 respondents strongly agree for the statement.
statement that Team members are mutually supportive, willingly helping each other to
overcome problems to achieve success and minimum 88 respondents strongly agree for
the statement.
For question five out of 1000 respondents maximum 278 respondents neither agree nor
disagree for the statement that, There is a willingness to be led versus a battle for
leadership and minimum 138 respondents strongly disagree for the statement.
241
statement that, Team members recognize their need to work with others versus work
independently and minimum 81 respondents strongly disagree for the statement.
statement that, Team workers work hard together to build positive relationships with
each other and minimum 108 respondents strongly disagree for the statement.
For question eight out of 1000 respondents maximum 252 respondents strongly agree for
the statement that, Team members confront and resolve conflicts in a healthy and
constructive way and minimum 95 respondents strongly disagree for the statement.
242
500 Strongly
Table of Respondents from Que no 59 to 66
Disagree
Disagree
443
440
450 Neither agree
nor Disagree
Agree
400
Strongly agree
328
350
305
304
287
283
278
300
266
262
252
250
247
230
227
250
226
218
215
212
211
197
197
195
185
200
161
161
158
153
142
138
150
117
114
108
95
88
87
100
81
76
39
50
24
0
Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8
243
6. JOB SATISFACTION OF THE EMPLOYEES OF THE ORGANIZATION
To understand Job Satisfaction of the Employees of the Organization fifteen questions are
asked to the respondents and response to these questions is recorded in the following
table 7.6.10
Disagree
1 38 196 383 223 160 1000
2 183 335 184 121 177 1000
3 170 271 230 162 167 1000
4 111 288 275 201 125 1000
5 114 191 223 228 244 1000
6 53 311 279 213 144 1000
7 67 310 164 169 290 1000
8 126 228 191 250 205 1000
9 134 180 282 148 256 1000
10 65 190 138 283 324 1000
11 96 134 184 320 266 1000
12 138 268 116 237 241 1000
13 310 135 87 231 237 1000
14 238 210 134 215 203 1000
15 460 125 133 179 103 1000
Above table indicate response for all fifteen questions from 1000 respondents.
disagree for the statement that Nature of the work comfortable to me and minimum 38
statement that Nature of my job match with my Qualification and minimum 121
244
For question three out of 1000 respondents maximum 271 respondents disagree for the
statement that I find my job is interesting. and minimum 162 respondents agree for the
statement.
statement that I require to do overtime for completion of work and minimum 125
For question five out of 1000 respondents maximum respondents 244 strongly agree for
the statement that, It is possible to get leave whenever you require and minimum 114
statement that, All employees in this organization are treated equally and minimum 53
statement that, I am proud and happy to work for this organization and minimum 67
For question eight out of 1000 respondents maximum 250 respondents agree for the
statement that, I am confident that I can get ahead in this organization because of my
merits and minimum 126 respondents strongly disagree for the statement.
For question nine out of 1000 respondents maximum 282 respondents neither agree nor
disagree for the statement that, I am involved in the performance of the organization
and minimum 134 respondents strongly disagree for the statement.
For question ten out of 1000 respondents maximum 324 respondents strongly agree for
the statement that I can easily communicate with my bosses and co-workers and
For question eleven out of 1000 respondents maximum 320 respondents agree for the
statement that I trust my collouges and Senior management and minimum 96
For question twelve out of 1000 respondents maximum 268 respondents disagree for the
statement that, I have enough resources to get my job done best and minimum 116
245
For question thirteen out of 1000 respondents maximum 310 respondents strongly
disagree for the statement that There are enough opportunities in the organization for
you to be able to learn and grow? and minimum 87 respondents neither agree nor
disagree for the statement.
For question fourteen out of 1000 respondents maximum 238 respondents strongly
disagree for the statement that, Does your job make you feel important? and minimum
134 respondents neither agree nor disagree for the statement.
For question fifteen out of 1000 respondents maximum 460 respondents strongly
disagree for the statement that, Do you agree with the mission and vision of the and
minimum 103 respondents strongly agree for the statement
Figure no 7.6.10 Table of Respondents from Que no 1 to 15
Table of Respondents from Que no 1 to 15
460
Disagree
450
Neither agree nor
Disagree
Agree
383
400
Strongly agree
335
350
324
320
279 311
310
310
290
288
283
282
275
300
271
268
266
256
191 228250
228244
241
210 238
237
237
231
230
250
223
191 223
215
213
205
203
201
196
190
184
184
183
180
179
177
200
170
169
167
164
162
160
148
144
138
138
135
134
134
134
133
126
125
125
150
121
116
114
111
103
96
87
100
67
65
53
38
50
0
Q-1 Q-2 Q-3 Q-4 Q-5 Q-6 Q-7 Q-8 Q-9 Q-10 Q-11 Q-12 Q-13 Q-14 Q-15
246
CHAPTER 8
HYPOTHESIS TESTING
247
CHAPTER 8
HYPOTHESIS TESTING
HYPOTHESIS-1
Null Hypothesis-: There is no association between Type of Organization and level of

combination of employees.
Alternative Hypothesis-: There is association between Type of Organization and level
of combination of employees.
Table 8.1 Chi-Square Test

To test above null hypothesis Chi-Square test is applied to assess two types of
comparison: tests of goodness of fit and tests of independence and results of test are as
follows:
Chi-Square Calculated Value = 329.687a
Chi-Square Table Value (5% l.o.c.) = 16.478a
Degree of Freedom =2
Result of Test = Rejected
Since Calculated value (329.687a) is greater than Table value (16.478a).
Chi-square test is rejected. It is concluded that there is association between Type of
Organization and combination of employees .T-Test is used to compare the means of
the samples but it might become unreliable in case of more than two samples. If we only
compare two means, then the t-test (independent samples) will give the same results as
the ANOVA. So due to this to test null hypothesis Anova test is applied and the results of
the test are shown in table 8.2 below
ANOVA for Type of Organisation

Sum of Squares df Mean Square F
Structur_Group1 Between Groups 6618.270 1 6618.270 455.397
Within Groups 14503.899 998 14.533
Total 21122.169 999
248
Leadershi_Group2 Between Groups 18824.961 1 18824.961 402.289
Within Groups 46701.039 998 46.795
Total 65526.000 999
Political_Environment_ Between Groups 246.400 1 246.400 12.205

Group3 Within Groups 20147.293 998 20.188
Total 20393.694 999
Evaluation_and_Appri Between Groups .154 1 .154 .027

sal_Group4 Within Groups 5680.230 998 5.692
Total 5680.384 999
Supervisory_style_Gro Between Groups 1.852 1 1.852 .092

up5 Within Groups 19990.637 998 20.031
Total 19992.489 999
Communication_syste Between Groups 6.912 1 6.912 2.149

m_Group6 Within Groups 3210.684 998 3.217
Total 3217.596 999
Creativity_Stimulation_ Between Groups 6428.827 1 6428.827 129.056

Group7 Within Groups 49714.773 998 49.814
Total 56143.600 999
Ethics_and_Social_res Between Groups 3955.234 1 3955.234 299.533

ponsibility_Group8 Within Groups 13178.260 998 13.205
Total 17133.494 999
Team_work_Group9 Between Groups 2025.844 1 2025.844 191.423
Within Groups 10561.900 998 10.583
Total 12587.744 999
JOB_SATISFACTION Between Groups 570.825 1 570.825 26.617
Within Groups 21402.676 998 21.446
Total 21973.501 999
The results of the test was accepted which shows that there is no association between
Type of Organization and level of combination of employees. So no other test such as T-
test was applied
249
Table 8.3 of Respondents according to Type of organization and combination of
Employees
Level_of_Combine
Score of Type of
Organization high Low Medium Total
MED+LS 164 10 201 375
SSI 0 54 571 625

Total 164 64 772 1000
There are 164 respondents having high level of combination of organization of which 164
are from medium and large scale organizations and there are no respondents from small
scale organizations having high level of combination of organization
There are 64 respondents having low level of combination of organization of which 10
are from medium and large scale organizations and there are 54 from small scale
organizations having low level of combination of organization.
There are 772 respondents having medium level of combination of organization of which
201 are from medium and large scale organizations and 571 from scale organizations
having medium level of combination of organization.
Above information is presented by using multiple bar diagram 8.1
250
600 571
Diagram of Respondents according to Type of Organization and
MED+
Combination of Employees
LS
500 SSI
400
No of Respondents
300
201
200
164
100
54
10
0
0
high Low
Combination Medium
HYPOTHESIS-2
Null Hypothesis-: There is no significant difference between organizational behavior in

different cities. (Mumbai, Pune, Nasik)
Alternative Hypothesis-: There is significant difference between organizational
behavior in different cities. (Mumbai, Pune, Nasik)
To study null hypothesis score of organisational behavior of three cities are calculated
separately. Paired t-test is used when the independent variable has two levels. Mean and
standard deviation of these scores are also obtained are presented in the following table
8.4
251
Paired T Test for Organizational Behavior
Number of Std.
Mean Respondents Deviation
Pair 1 Organisational Behavior of Mumbai 53.31 600 2.60
Organisational Behavior of Pune 51.19 300 0.99

Pair 2 Organisational Behavior of Mumbai 53.31 600 2.60
Organisational Behavior of Nasik 49.56 100 1.55
Pair 3 Organisational Behavior of Pune 51.19 300 0.99
Organisational Behavior of Nasik 49.56 100 1.55
To test is there significant difference between among organizational behavior

Of three cities T-test is applied to determine whether theres a significant difference
between two group means and results of test are as follows. Table 8.5
Result of T-test for Organisational Behavior
Calculated
T- value Table T- Value Result of Test
Pair 1 Organisational Behavior of Mumbai 17.58 1.96 Significant

- Organisational Behavior of Pune
Pair 2 Organisational Behavior of Mumbai 8.25 1.96 Significant
- Organisational Behavior of Nasik
Pair 3 Organisational Behavior of Pune - 9.86 1.96 Significant
Organisational Behavior of Nasik
252
Above table 8.5 indicate that when calculated value of T-test is greater than Table value,
difference is significant. There is significant difference between among organizational
behavior of three cities. Null hypothesis is accepted. Chi square test is not applied
because there is no comparison and assessment required for tests of goodness of fit and
tests of independence. ANOVA is not applied because there are less groups to compare.
Paired T Test for Job Satisfaction (table 8.6 )
Mean N Std. Deviation
Pair 1 Job Satisfaction of Mumbai 72.94 600 3.50
Job Satisfaction of Pune 71.64 300 2.70

Pair 2 Job Satisfaction of Mumbai 72.94 600 3.50
Job Satisfaction of Nasik 62.63 100 5.79
Pair 3 Job Satisfaction of Pune 71.64 300 2.70
Job Satisfaction of Nasik 62.63 100 5.79
Result of T-test for Job satisfaction
Calculated Table T-
T- value Value Result of Test
Pair 1 Job Satisfaction of Mumbai - Job 10.78 1.96 Significant

Satisfaction of Pune
Pair 2 Job Satisfaction of Mumbai - Job 17.29 1.96 Significant
Satisfaction of Nasik
Pair 3 Job Satisfaction of Pune - Job 11.84 1.96 Significant
Satisfaction of Nasik
253
difference is significant. There is significant difference between among organizational
behavior of three cities. Null hypothesis is accepted which proves that there is no
significant difference between organizational behavior in different cities. (Mumbai, Pune,
Nasik). Hence Chi-Square is not applied because there is no comparison and assessment
required for tests of goodness of fit and tests of independence. ANOVA is not applied
because there are less groups to compare.
HYPOTHESIS-3
Null Hypothesis-: There is no association between organizational behavior and

Alternative Hypothesis-: There is no association between organizational behavior and
follows: (table 8.8)
Chi-square Calculated Value = 248.69
Chi-square Table Value = 9.49
Degree of Freedom = 4
Result of test = Rejected.
Above information indicate that chi-square calculated value (248.69) is greater than table
value (9.49). Therefore test is rejected and it is concluded that there is association
between level of Organizational behavior and level of employee satisfaction. To
understand nature of correlation between level of organization and level of Employee
satisfaction, Karl Pearsons correlation coefficient is obtained. It is calculated for all
three regions separately and also taken together.
Karl Pearsons coefficient of correlation for 600 respondents in Mumbai between
organizational behavior and employees satisfaction is calculated. It is r = 0.194..It
indicate there is positive correlation.
254
Karl Pearsons coefficient of correlation for 300 respondents in Pune between
organizational behavior and employees satisfaction is calculated. It is r = 0.004.It
indicate there is very low positive correlation.
Karl Pearsons coefficient of correlation for 100 respondents in Nasik,between
organizational behavior and employees satisfaction is calculated. It is r = 0.051.It
indicate there is very low positive correlation.
Karl Pearsons coefficient of correlation for all 1000 respondents in all cities taken
together, between organizational behavior and employees satisfaction is calculated. It is
r = 0.370. It indicates there is positive correlation. Hence Null hypothesis got accepted.
To test above null hypothesis level of organizational behavior and level of Employee
satisfaction is considered. Bivariate frequency table of their results is obtained to show
the total row and total column and report the marginal frequencies or marginal
distribution , while the body of the table reports the joint frequencies presented as given
below..
Table 8.9 of respondents according to Level of organizational behavior and
level of Employee satisfaction.
Level of
Organisation Level of Employee satisfaction
Low Medium High Total
Low 34 28 2 64
Medium 40 635 97 772
High 0 113 51 164

Total 74 776 150 1000
There are 74 respondents having low level of Job Satisfaction of organization of which
34 respondents are having low level of organization behavior and 40 respondents are
255
having medium level of organization behaviour. There is no respondent having high level
of organization behaviour
There are 776 respondents having medium level of Job Satisfaction of organization of
which 28 respondents are having low level of organization behaviour. 635 respondents
are having medium level of organization behaviour. 113 respondents are having high
level of organization behaviour.
There are 150 respondents having high level of Job Satisfaction of organization of which
2 respondents are having low level of organization behaviour. 97 respondents having
medium level of organization behaviour. 51 respondents having high level of
organization behaviour
Above information is presented by using multiple bar diagram to make clear data which
has learned values in figure no 8.2
256
700
Diagram of Respondents according to Level of Organizational
Behaviour and level of employees behaviour Low
635
Medium
600
High
500
400
300
200
113
97
100 51
40
34
28
2
0
0
Low Medium High
Employee Satisfaction
HYPOTHESIS-4
Null Hypothesis-: There is no association between Leadership of Organization and job
satisfaction of employees.
257
Alternative Hypothesis-: There is association between Leadership of
Organization and job satisfaction of employees.
comparison: tests of goodness of fit and tests of independence and results of
test are as follows: (table 8.10)
Chi-Square Calculated Value = 32.81
Chi-Square Table Value (5% l.o.c.) = 9.46
Since Calculated value (32.81) is greater than Table value (9.46)
Chi-square test is rejected. It is concluded that there is association between
Leadership of Organisation and job satisfaction of employees. T-Test is
used to compare the means of the samples but it might become unreliable in
case of more than two samples. If we only compare two means, then the t-test
(independent samples) will give the same results as the ANOVA. So due to this
to test null hypothesis Anova test is applied to test above null hypothesis and
results of test are as follows: (table 8.11)
Sum of df Mean F
Squares Square
Leadership Between 18824.961 1 18824.961 402.289
Between Groups
Groups
Within 46701.039 998 46.795
Groups
Total 65526.000 999
The Result of ANOVA test is accepted . This proves that there is no association
between Leadership of Organization and job satisfaction of employees. Hence
Null Hypothesis is accepted.
Table 8.12 of Respondents according to Leadership of organization and Job

satisfaction of Employees.
258
Score of Leadership of
Organisation Level of Job satisfaction
Low 6 11 2 19
Medium 66 673 116 855
High 2 92 32 126
Total 74 776 150 1000
There are 74 respondents having low job satisfaction of which 6 respondents are from
low level of leadership, 66 respondents are from medium level of leadership. And only 2
respondents are from high level of leadership.
Also there are 776 respondents having medium job satisfaction of which only 11
respondents are from low level of leadership, 673 respondents are from medium level of
leadership and remaining 92 respondents are from high level of leadership.
And there are 150 respondents having high job satisfaction of which only 2 respondents
are from low level of leadership, 116 respondents are from medium level of leadership.
And remaining 32 respondents are from high level of structure
Above information is presented by using multiple bar diagram. Figure 8.3
259
Diagram of respondents according to Leadership of organization and Low
Job satisfaction of Employees Medium
800 High
700 673
600
No. of Respondents
500
400
300
200
116
92
100 66
32
6 2 11 2
0
Low Medium High
Job satisfaction
HYPOTHESIS-5
There is no association between job satisfaction and demographic factors such as Gender,
Age, and Income of employees.
Null Hypothesis: There is no association between Gender and job satisfaction of
employees.
Alternative Hypothesis: There is association between Gender and job satisfaction of
employees.
follows: table (8.13)
Result of Test = Accepted
Since Calculated value (1.336a) is less than Table Value (4.99)
Chi-square test is accepted. It is concluded that there is no association between Gender
260
and job satisfaction of employees. The Null hypothesis got accepted. Hence no further
test such as ANOVA, T-test are applied to prove the Hypothesis.
Table 8.14 of Respondents according to Gender and job
Gender Level_of_Job_satisfaction
High Low Medium Total
Female 46 28 269 343
Male 104 46 507 657

Total 150 74 776 1000
There are 150 respondents having high level of Job Satisfaction of organization of which
46 are female and 104 are male having high level of Job Satisfaction of organization
There are 74 respondents having low level of Job Satisfaction of organization of which
28 are female and 46 are male having low level of Job Satisfaction of organization.
There are 776 respondents having medium level of Job Satisfaction of organization of
which 269 are female and 507are male from medium level of job satisfaction of
organization.
Above information is presented by using multiple bar diagram to make data clear which
as learned values in Figure no 8.4
261
600 Female
Diagram of resondents according to Gender and Job satisfaction of
Employees Male
507
500
400
No of Respondents
300
269
200
104
100
46 46
28
0
High Low
Job Satisfaction Medium
HYPOTHESIS-5
Null Hypothesis: There is no association between Age and job satisfaction of employee
Alternative Hypothesis: There is association between Age and job satisfaction of
employee
Since calculated value (6.595a) is less than Table Value (9.49) Chi-square test is
accepted. It is concluded that there is no association between age and job satisfaction of
262
employees. Hence the Null Hypothesis got accepted. So no other test such as ANOVA,
T-test are applied.
Table 8.16 of Respondents according to age and job

Agegroup Level_of_Job_satisfaction
Elderly age 28 13 124 165
Middle age 56 18 297 371
Young age 66 43 355 464

Total 150 74 776 1000
There are 150 respondents having high level of job satisfaction of Organization of which
28 are of Elderly age and 56 are of Middle age and 66 are of Young age having high level
of job satisfaction of organization.
There are 74 respondents having low level of job satisfaction of organization of which 13
are of Elderly age and 18 are of middle age and 43 are of Young age having low level of
job satisfaction of organization.
There are 776 respondents having Medium level of job satisfaction of organization of
which 124 are of Elderly age and 297 are of Middle age and 355 are of Young age having
medium level of job satisfaction of organization.
Above information is presented by using multiple bar diagram is used to make data clear
which has learned values in Figure no 8.5
263
400
Diagram of Respondents according to age and job satisfaction of
Elderly Employees
age
355
Middle
350
age
297
300
No of Respondents
250
200
150
124
100
66
56
50 43
28
13 18
0
High Low
Job satisfaction Medium
HYPOTHESIS-5
Null Hypothesis: There is no association between income and job satisfaction of
employees.
Alternative Hypothesis: There is association between income and job satisfaction of
employees.
Chi-Square Table Value (5% l.o.c.) = 6.057a
264
Since Calculated value (1.711a) is less than Table Value (6.057a)
Chi-square test is accepted. It is concluded that there is no association between incomes
and job satisfaction of employees. Hence Null Hypothesis is accepted so no further test
such as ANOVA, T-test are applied.
Table 8.18 of Respondents according to income and job satisfaction of
Employees
Monthly
Income Level_of_Job_satisfaction
High 26 18 163 207
Low 52 33 288 373
Medium 72 23 325 420

Total 150 74 776 1000
There are 150 respondents having high level of job satisfaction of Organization of which
28 are of high income and 52 are of low income and 72 are of medium income having
high level of job satisfaction of organization.
There are 74 respondents having low level of job satisfaction of organization of which 18
are of high income and 33 are of low income and 23 are of medium income having low
level of job satisfaction of organization.
There are 776 respondents having Medium level of job satisfaction of organization of
which 163 are of high income and 288 are of low income and 325 are of medium income
having medium level of job satisfaction of organization.
Above information is presented by using multiple bar diagram is used to
make data clear which has learned values in Figure no 8.6
265
350
High Diagram of respondents according to income and Job satisfaction of
325
Low Employees
Medium
300 288
250
No of Respondents
200
163
150
100
72
52
50 33
26 23
18
0
High Low
Job satisfaction Medium
266
HYPOTHESIS-6
Null Hypothesis: There is no association between Political Environment of
Organisation and job satisfaction of employees.
Alternative Hypothesis: There is association between Political Environment
of Organisation and job satisfaction of employees.
comparison: tests of goodness of fit and tests of independence and results of
test are as follows: (table 8.19)
Since Calculated value (60.92) is greater than Table value (9.46)Chi-square
test is rejected. It is concluded that there is association between Political
Environment of Organisation and job satisfaction of employees. Null
Hypothesis is rejected. T-Test is used to compare the means of the samples
but it might become unreliable in case of more than two samples. If we only
compare two means, then the t-test (independent samples) will give the same
results as the ANOVA. So due to this to test null hypothesis Anova test is
applied to test above null hypothesis and the results of the test are shown in
table 8.20 below
Political Between 8.343 2 4.172 .204

Environment Groups
Group3
Within 20385.351 997 20.447
Groups
Total 20393.694 999
The Result of ANOVA test is accepted. There is no association between

Political Environment of Organisation and job satisfaction of employees.
Hence Null Hypothesis got accepted.
267
Table 8.21 of Respondents according to political environment of organization
and Job satisfaction of Employees.
Table 8.21 Respondents according to political environment and job satisfaction
of employees
Score of Political Environment of

Low 27 129 16 172
Medium 47 502 78 627
High 0 145 56 201

Total 74 776 150 1000
low level of Political Environment, 47 respondents are from medium level of Political
Environment. And no respondents are from high level of Political Environment.
Also there are 776 respondents having medium job satisfaction of which 129
respondents are from low level of Political Environment, 502 respondents are from
medium level of Political Environment And remaining 145 respondents are from high
level of Political Environment.
And there are 150 respondents having high job satisfaction of which 16 respondents are
from low level of Political Environment, 78 respondents are from medium level of
Political Environment. And remaining 56 respondents are from high level of Political
Environment.
Above information is presented by using multiple bar diagram. Figure no 8.7
268
Diagram of respondents according to Political Environment of Low
organization and Job satisfaction of Employees Medium
600 High
502
500
No. of Respondents
400
300
200
145
129
100 78
47 56
27 16
0
0
Low Medium High
Job satisfaction
HYPOTHESIS-7
Null Hypothesis: There is no association between Evaluation and Appraisal of
Alternative Hypothesis: There is association between Evaluation and Appraisal of
To test above null hypothesis Chi-Square test is applied applied to assess two types of
Chi-square test is rejected. It is concluded that there is association between Evaluation
and Appraisal of Organisation and job satisfaction of employees. Null hypothesis is
rejected. T-Test is used to compare the means of the samples but it might become
269
unreliable in case of more than two samples. If we only compare two means, then the t-
test (independent samples) will give the same results as the ANOVA. So due to this to
test null hypothesis Anova test is applied and the results of the test are shown in table
8.23 below
Evaluation Between 59.198 2 29.599 5.250

and Appraisal Groups
Group4
Within 5621.186 997 5.638
Groups
Total 5680.384 999
The Result of ANOVA test is accepted. There is no association between Evaluation and
Appraisal of Organization and job satisfaction of employees. Hence Null Hypothesis is
accepted.
Table 8.24 of Respondents according to Evaluation and Appraisal of

Score of Evaluation and Appraisal

of Organisation Level of Job satisfaction
Low 14 8 0 22
Medium 32 483 97 612
High 28 285 53 366

Total 74 776 150 1000
low level of Evaluation and Appraisal, 32 respondents are from medium level of
270
Evaluation and Appraisal. And remaining 28 respondents are from high level of
Evaluation and Appraisal.
Also there are 776 respondents having medium job satisfaction of which only 8
respondents are from low level of Evaluation and Appraisal, 483 respondents are from
medium level of Evaluation and Appraisal, And remaining 285 respondents are from high
level of Evaluation and Appraisal.
And there are 150 respondents having high job satisfaction of which not a single
respondent is from low level of Evaluation and Appraisal, 97 respondents are from
medium level of Evaluation and Appraisal, . And remaining 53 respondents are from high
Evaluation and Appraisal..
Above information is presented by using multiple bar diagram is used to make clear data
which has learned values in Figure no 8.8
Diagram of respondents according to Evaluation and Appraisal of Low

Medium
600
High
483
500
No. of Respondents
400
285
300
200
97
100
53
32 28
14 8 0
0
Low Medium High
Job satisfaction
271
HYPOTHESIS-8
Null Hypothesis: There is no association between Ethics and Social Responsibility and
job satisfaction of employees.
Alternative Hypothesis: There is association between Ethics and Social Responsibility
and job satisfaction of employees.
Chi-square test is rejected. It is concluded that there is association between Ethics and
Social Responsibility of Organisation and job satisfaction of employees. Null Hypothesis
is rejected. T-Test is used to compare the means of the samples but it might become
unreliable in case of more than two samples. If we only compare two means, then the t-
test (independent samples) will give the same results as the ANOVA. So due to this to
test null hypothesis Anova test is applied t null hypothesis and the results of the test are
shown in table 8.26 below
Ethics and Between 55.406 2 27.703 1.617

Social Groups
responsibility
Group8
Within 17078.088 997 17.129
Groups
Total 17133.494 999
The Result of ANOVA test is accepted. There is no association between Ethics and
Social Responsibility and job satisfaction of employees.. Hence Null Hypothesis got
accepted.
272
Table 8.27 of Respondents according to Ethics and Social Responsibility of
Score of Ethics and Social

Responsibility of Organisation Level of Job satisfaction
Low 25 221 27 273
Medium 49 474 86 609
High 0 81 37 118
Total 74 776 150 1000
low level of Ethics and Social Responsibility, 49 respondents are from medium level of
Ethics and Social Responsibility. And no respondents are from high level of Ethics and
Social Responsibility.
respondents are from low level of Ethics and Social Responsibility, 474 respondents are
from medium level of Ethics and Social Responsibility. And remaining 81 respondents
are from high level of Ethics and Social Responsibility.
from low level of Ethics and Social Responsibility, 86 respondents are from medium
level of Ethics and Social Responsibility. And remaining 37 respondents are from high
level of Ethics and Social Responsibility
has learned values in Figure no 8.9
273
Diagram of respondents according to Ethics and Social responsibility Low
of organization and Job satisfaction of Employees
Medium
500 474
High
450
400
350
No. of Respondents
300
250 221
200
150
100 81 86
49
37
50 25 27
0
0
Low Medium High
Job satisfaction
HYPOTHESIS-9
Null Hypothesis: There is no association between Internal Communication System of
Organisation and job satisfaction of employees.
Alternative Hypothesis: There is association between Internal Communication System
of Organisation and job satisfaction of employees.
Since Calculated value (0.53) is less than Table value (9.46) Chi-square test is accepted.
It is concluded that there is no association between Communication System of
274
Organisation and job satisfaction of employees. Null hypothesis is accepted. Hence no
other test such as ANOVA, T-test is applied to prove null hypothesis.
Table 8.29 of Respondents according to Communication System of
Score of Communication System of

Low 28 291 52 371
Medium 25 258 51 334
High 21 227 47 295

Total 74 776 150 1000
low level of Communication System, 25 respondents are from medium level of
Communication System. And remaining 21 respondents are from high level of
Communication System.
respondents are from low level of Communication System, 258 respondents are from
medium level of Communication System. And remaining 227 respondents are from high
level of Communication System.
from low level of Communication System, 51 respondents are from medium level of
Communication System. And remaining 47 respondents are from high level of
Communication System.
has learned values in Figure no 8.10
275
Diagram of respondents according to Communication System of Low
Medium
350
High
291
300
258
250 227
No. of Respondents
200
150
100
52 51 47
50 28 25 21
0
Low Medium High
Job satisfaction
HYPOTHESIS-10
Null Hypothesis: There is no association between dimensions of organization
behaviour.
Alternative Hypothesis: There is association between dimensions of organization
behaviour.
To prove the null hypothesis Paired Samples Statistics is used because each individual
observation of one sample has unique corresponding member in the other sample and
correlation test is applied to describe the linear relationship between two continuous
variables . Null hypothesis is accepted hence ANOVA, Chi-square, T-test, Paried T-test
are not used.
Table 8.30 of Respondents according to dimensions of organizational
behaviour
276
Paired Samples Statistics
Std. Std. Error

Mean N Deviation Mean
Pair 1 Sturcture 57.978 1000 4.59759 .14539

0
Combine 52.297 1000 2.51466 .07952

7
Pair 2 Leadership 41.300 1000 8.09886 .25611
0
Combine 52.297 1000 2.51466 .07952
7
Pair 3 Political 54.992 1000 4.51820 .14288
environment 5
Combine 52.297 1000 2.51466 .07952
7
Pair 4 Implementati 41.296 1000 2.38455 .07541
on of 0
Evaluation
and Appraisal
Combine 52.297 1000 2.51466 .07952
7
Pair 5 Supervisory 64.913 1000 4.47409 .14148
style 6
Combine 52.297 1000 2.51466 .07952
7
Pair 6 Internal 71.898 1000 1.79466 .05675
communicati 0
on system
277
Combine 52.297 1000 2.51466 .07952
7
Pair 7 Creativity 1000 7.49665 .23706
Stimulants 36.620
0
Combine 52.297 1000 2.51466 .07952
7
Pair 8 Ethics and 44.072 1000 4.14133 .13096
Social 5
Responsibilit
y
Combine 52.297 1000 2.51466 .07952
7
Pair 9 Teams and 57.609 1000 3.59904 .11381
Teams Work 0
Combine 52.297 1000 2.51466 .07952

7
278
Table 8.31
Degree Table of t- Result of

Calculate of value Test
d t-Value Freedom (5% l.o.c.)
Pair 1 Structure - Combine 57.214 999 1,96 Significant

Pair 2 Leadership - -53.803 999 1.96 Significant
Combine
Pair 3 Political 20.775 999 1.96 Significant
Environment -
Combine
Pair 4 Implementation of -108.228 999 1.96 Significant
Evaluation and
Appraisal -
Combine
Pair 5 Supervisory Style - 90.150 999 1.96 Significant
Combine
Pair 6 Internal 213.470 999 1.96 Significant
Communication
System - Combine
Pair 7 Creativity -79.425 999 1.96 Significant
Stimulants -
Combine
Pair 8 Ethics and Social -79.294 999 1.96 Significant
Responsibility -
Combine
Pair 9 Teams and Teams 56.221 999 1.96 Significant
Work - Combine
279
difference is significant. All nine groups have significant difference with combine mean.
It is concluded that all nine groups does act as a driver for organizational behaviour. The
null hypothesis is accepted hence ANOVA, Chi-square, T-test is not applied.
Correlations
Group1 Group2 Group3 Group4 Group5
Group1 Pearson 1 .518** .253** .023 .158**
Correlation
Group2 Pearson .518** 1 .179** .005 .070*
Correlation
Group3 Pearson .253** .179** 1 .015 .126**
Correlation
Group4 Pearson .023 .005 .015 1 .063*
Correlation
Group5 Pearson .158** .070* .126** .063* 1
Correlation
Group6 Pearson .060 .017 .064* .014 -.033
Correlation
Group7 Pearson .392** .287** .061 .021 .016
Correlation
Group8 Pearson .459** .411** .193** -.009 .024
Correlation
Group9 Pearson .441** .347** .213** .038 .041
Correlation
Combine Pearson .761** .740** .436** .140** .300**
Correlation
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
The above table 8.32 shows that there is a significant difference. Hence null
hypothesis is accepted no other test such as Chi-square, T-test is applied
Correlations
Group6 Group7 Group8 Group9 Combine
Group1 Pearson .060 .392** .459** .441** .761**
Correlation
280
Group2 Pearson .017 .287** .411** .347** .740**
Correlation
Group3 Pearson .064* .061 .193** .213** .436**
Correlation
Group4 Pearson .014 .021 -.009 .038 .140**
Correlation
Group5 Pearson -.033 .016 .024 .041 .300**
Correlation
Group6 Pearson 1 .024 .036 .021 .123**
Correlation
Group7 Pearson .024 1 .278** .258** .625**
Correlation
Group8 Pearson .036 .278** 1 .314** .610**
Correlation
Group9 Pearson .021 .258** .314** 1 .572**
Correlation
Combine Pearson .123** .625** .610** .572** 1
Correlation
**. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
The above table 8.33 shows that there is a significant difference. Hence null
hypothesis is accepted no other test such as Chi-square, ANOVA, T-test is applied
281
CHAPTER 9
MAJOR FINDINGS AND
CONCLUSIONS
282
CHAPTER 9
MAJOR FINDINGS AND CONCLUSIONS
The study basically dealt with finding the organizational behaviour effects on employees
behaviour on the basis of 13 dimensions which are divided into 10 groups and finding the
effect of same on the employees of companies. Few of which are discussed below
ORGANIZATIONAL STRUCTURE:
From the study it was found that mostly employees of the various organizations agreed
to the norms and functioning of the organizations. Except few employees who disagree
with the fact that senior management treats employees fairly rest all the employees agree
with it. It was found that either it is large scale Company, SSI, the replies from the
employees on various aspects were similar.
LEADERSHIP:
From the study it was found that employees of various pharmaceutical companies have
same view point that Organizations in which they are employed are strong competitors of
other organizations. They also agree that their organizations have organization leadership
has clear vision for future.
POLITICAL ENVIRONMENT:
From the study it was found that employees agreed to the questions asked to them related
to Political Environment. The treatment given to the employees related to political
environment is agreeable to the employees.
283
IMPLEMENTATION OF EVALUATION AND APPRAISAL:
From the Study it was found that the organizations do have an appraisal system and based
on the Performance the employees are appreciated and awarded. Employees of the
organizations are satisfied with the appraisal system.
SUPERVISORY STYLE
From the study it was found that superior- subordinate relation is cordial in the
organizations. There is sense of responsibility and understanding between superior and
subordinate.
INTERNAL COMMUNICATION SYSTEM:
From the study it was found that employees are satisfied with the internal
communication system in their organizations. They agree with the questions asked related
to the internal communication system and also they have a positive belief that vertical
and horizontal communication plays an important role in the organizations.
EMPLOYEES BEHAVIOUR AND SATISFACTION:
From the study it was found that are neutral on these aspects they neither agree neither
disagree with the benefits that they are getting from their respective organizations. When
it comes to the question of monetary benefits the employees are hesitant to disclose they
neither agree with fact that they are satisfied with the pay structure nor they disagree that
they are satisfied with the pay structure as well as incentive schemes provided by their
respective organizations.
284
CREATIVITY STIMULANTS:
From the study it was found that the role and responsibilities being allotted to employees
in their respective organizations is understood to them and they perform their work in
proper manner. Employees get an opportunity to develop their skills in their respective
organizations.
ETHICS AND SOCIAL RESPONSIBILITY:
From the study it was found that employees are neither agreeing with the questions
related to ethics and social responsibility nor disagreeing with the same. It was difficult to
come to the conclusion regarding the same.
POWER AND POLITICS:
From the study it was found that employees are interested in becoming a CEO of the
company they have imagined for themselves. They also have an enthusiasm for becoming
an MD of the company.
TEAMS AND TEAM WORK:
From the study it was found that employees are very co-operative with each other and
also the team members in their respective teams are very supportive as well as work hard
together to build positive relations with each other.
285
ABSENTEEISM:
From the study it was found that the employees can avail leave only on medical
grounds. Employees are highly satisfied with the superiors. There is support provided
to the employees by their co-workers which brings a positive attitude in them and a
sense of trust within the employees. The employees of the organization are happy with
their respective organizations due to balance between work life and personal life.
ATTRITION RATE:
From the study it was found that maximum employees stated that the attrition rate in
their respective organizations is between 5 % to 10 %
286
CHAPTER 10
RECOMMENDATIONS
287
CHAPTER 9
RECOMMENDATIONS
Based on the findings of the study the following recommendations on the dimensions of
the organizational behaviour could be drawn
It is been observed that the Organizational Structure of the organizations should
provide the employees all information required as being the member of the
organization. The roles and the responsibilities should be clearly defined to the
employees of their respective organizations. Policies for the hierarchy of
communication should be framed by the organizations. Senior management
should set high standards of excellence. The organizations should have activities
such as Corporate Social Responsibility.
As far as Internal environment of the organization is concerned organization
should provide complete information in time to the employees of the
organizations so that they can perform the job better and on time. The
organizations should provide adequate resources to its employees so that they can
perform their work on time. The employees in the organizations should be given
equal work load so that there is no work pressure on few employees and the rest
have no work to do.
Talking about the Implementation of evaluation technique and appraisal system. It
is suggested that it should be systematic so that the employees get equal
opportunities to perform better. The senior management should give feedback to
the employees so that they can improve themselves and get a chance to improve.
Performance appraisal should be at least twice in 1 year or after every 3 months.
It is observed that the monetary benefits provided by the organizations should be
satisfactory for the employees in the organization. The incentives provided by the
organizations to the employees should also be satisfactory to the employees so
that they get motivated to work in the organizations. The organizations should
provide extra benefits such as fringe benefits.
288
There should be awareness among the employees regarding the organizations that
are socially responsible or which encourage corporate social responsibility. The
employees should be aware of the organizations or their own organization which
manufacture products which are useful to the society and if they dont
manufacture such organizations should be penalized. The employees should be
capable enough for paying more for the products which are manufactured by
socially responsible organizations.
In case of absenteeism the employees should be given a compensatory leave in
case they are required overtime in their job. They should be given flexibility in
taking leave whenever they want. Ample of opportunities should be provided by
the organizations for the advancement of their employees. The organizations
should give low work pressure to the employees working in their organizations.
The organizations should work hard for retaining their employees in their
organizations so that the attrition rate is reduced and the employees are satisfied
with their respective jobs and dont leave their job.
289
APPENDIX
290
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APPENDIX II
QUESTIONNAIRE
310
Dear sir/madam,
I have enrolled for Ph. D program at D.Y.Patil University. As a part of my
research work I am collecting information about organizational behavoiur and
employees behavior. I will be grateful if you could spare some valuable time to fill
this questionnaire. I assure that the response will be kept strictly confidential and
will be used only for academia purpose.
Thank you for your support
Name: Sapna Suri
Desigantion : Assistant Professor
Email: saps156@gmail.com
1. Name of Respondent: ------------------------------------------------------------------
2. Name of organization: ------------------------------------------------------------------
3. Type of Organization Bulk Drug Small Scale Industry MNC
4. How long have you working in this organization?

Less than two year .........................................
Two years to less than five years ...................
Five years or more .........................................
5. What is your total experience?

Less than five year .........................................
five years to less than ten years......................
Ten years or more ..........................................
311
6. What is your age?
Under 25.........................................................
25 to 34 ..........................................................
35 to 44 ..........................................................
45 to 54 ..........................................................
55 or older ......................................................
7. What is your sex?

Male ...............................................................
Female ............................................................
8. What is your marital status?

Married ...........................................................
Unmarried ......................................................
Questionnaire:
Group 1 ( organizational structure
Sr Question Strong Disa Neither Agre Strong
no ly gree Agree e ly
Disagr nor Agree
ee Disagr
ee
1 The organizational goal and objectives are clear
to me
2 Employees have shared understanding of what
the organization is suppose to do
3 Clear reporting structure have been established
4 Roles and responsibilities are clearly defined
5 Policies for hierarchy of communication are
312
framed
6 Hierarchy of communication is executed
according to policies
7 Senior management sets high standard of
excellence
8 Senior management treats employees fairly
9 This organization has activities such as corporate
social responsibilities
10 There is a quality circle in this organization
11 Member of quality circle in this organization
meet regularly
Group 2 ( Leadership)
Sr Question Strong Disa Neither Agre Strong
no ly gree Agree e ly
Disagr nor Agree
ee Disagr
ee
12 Our organisation is a leader in the industry.
13 Our organisation is a strong competitor in key
growth areas.
14 Our organisation leadership has a clear vision of
the future.
15 Our organisation leadership has made changes
which are positive for the company.
16 Our organisation leadership has made changes
which are positive for me.
313
Group 3 ( Political Environment)
Sr Question Strongly Disagree Neither Agree Strongly
no Disagree Agree nor Agree
Disagree
17 I feel valued as an employee in
this organization
18 I enjoy being part of this
organization
19 Work pressure is uniform for all
employees in the organization
20 My department has adequate tools
( or resources) to perform our
work
21 I receive complete information in
time to perform my job well
22 Employees speak very highly
about this organization
23 My direct senior listens to my
ideas and concern
24 My direct senior makes sure that I
have clear goals to achieve
314
Group 4 (Implementation of Evaluation and appraisal)

Disagree
25 I believe senior management
appreciates the work I do
26 Do you have system of
performance appraisal in your
organization
27 Nature of appraisal is completely
unbiased
28 I get feedback of my performance
appraisal
29 Performance appraisal is adequate
in this organization
315
Group 5 ( Supervisory style)
Disagree
30 Employee have good balance
between organizational work and
personal life
31 Supervisory in this organization is
satisfactory
32 Supervisor always encourage us
work as team
33 Supervisor always appreciate my
good performance
34 Supervisor maintain reasonably
high standard of performance
35 My supervisor always help me in
improving my performance
316
Group 6 ( Internal Communication System)

Disagree
36 I feel my inputs is valued by my
co-worker
37 Knowledge and information
sharing is a group norm across the
organization
38 Employees consult each other
when they need support
39 Individuals appreciate the
personal contribution for their co-
workers
40 I trust the information I receive
from senior management
41 My direct senior gives me helpful
feedback on how to be more
effective
42 I believe vertical communication
is suitable in this organization
43 I believe vertical and horizontal
communication is necessary
44 Interpersonal communication and
relationships contributes to
organizational performance
45 Our face to face meetings are
317
productive
Group 7 ( Creativity Stimulants

Disagree
46 Roles and responsibilities within
the group are understood
47 My skills and abilities are fully
utilize in this organization
48 I have the opportunity to further
develop my skills and abilities
49 I find I am challenged in my
current job
50 My work adds value to the
organization
318
Group8 (Ethics & Social Responsibility)
Disagree
51 Do you think that business
ethics is based on
individuals morals only
52 Do you think it is
important to have business
ethics
ethics differ in various
countries or societies
ethics should only be
determined by law
55 I am acquainted with
enterprises or
organizations that are
"socially
responsible
56 As a consumer, I am
capable to penalize a
enterprise (ex: not buying
its products/services), if I
consider it "Socially
irresponsible
57 I am capable to pay more
319
for a product produced by
a socially
responsible" enterprise
58 Have customers ever asked
about environmental or
social aspects regarding
your company or its
products?
320
Group 9 (Teams and Team Work)
Disagree
59 There is a common and agreed
vision of future success for the
team
60 Team members have a common
goal which motivates them to
achieve a desired result
61 Team members have shared
values and beliefs which bind the
team together
62 Team members are mutually
supportive, willingly helping
each other to overcome problems
to achieve success
63 There is a willingness to be led
versus a battle for leadership
64 Team members recognize their
need to work with others versus
work independently
65 Team workers work hard
together to build positive
relationships with each other
66 Team members confront and
resolve conflicts in a healthy and
constructive way
321
Group 10 (Job Satisfaction )
Disagree
1 Nature of the work comfortable to
me
2 Nature of my job match with my

Qualification
3 I find my job is interesting
4 I require to do overtime for
completion of work
5 It is possible to get leave whenever
you require
6 All employees in this organization
are treated equally
7 I am proud and happy to work for
this organization
8 I am confident that I can get ahead in
this organization because of my
merits
9 I am involved in the performance of
the organization
10 I can easily communicate with my
bosses and co-workers
11 I trust my colleagues and senior
management
12 I have enough resources to get my
job done best
13 There are enough opportunities in the
organization for you to be able to
learn and grow?
14 Does your job make you feel
important?
15 Do you agree with the mission and
the vision of the organization?
322
APPENDIX III
LIST OF COMPANIES
323
Name of the Address City State Company
Organization type
ACICHEM 1, Prabhat Mumbai Maharasht SSI
LABRORATORIES Nagar, Jogeshwari West,
- 400102
ra
BDH INDUSTRIES air Baug, Akurli Road, Mumbai Maharasht SSI / LS
LTD Kandivali (East),
ra
GUFIC Gufic House, Subhash Mumbai Maharasht SSI/LS
BIOSCIENCES LTD Rd.-A,
Vile Parle (E), Mumbai -
ra
400 057. (INDIA)
Email :
gufic@guficbio.com
NIRLAC 14th floor, Nirmal Mumbai Maharasht SSI
CHEMICALS building, Nariman point,
Mumbai, Maharashtra
ra
Adonis Laboratories C-6, Groma House, Sector Mumbai Maharasht SSI
Pvt Ltd 19
APMC MKT II, Vashi
ra
ADORE ADORE Mumbai Maharasht SSI
PHARMACEUTICAL PHARMACEUTICAL
PVT LTD PVT. LTD.
ra
5/6 Khokhani Industrial
Complex No. 2,
Kaman Road, Sativali,
Vasai (East),
Dist. : Thane 401 208.
ADVANCED Sun Magnetica A Mumbai Maharasht SSI
VITAL ENZYMES Wing 5th Floor LIC ra
LTD
service Road
LouisWadi
Thane(W)
AGLOWMED 702 - A, Poonam Mumbai Maharasht SSI/LS
LTD Chambers, Worli ra
AJANTA PHARMA Ajanta Pharma Limited Mumbai Maharashtra MED /LS
LTD Ajanta House, Govt. Indl
Area, Charkop
400067 Kandivali
Mumbai
AKIRITI EXPORT OFF.NO.207, BLOCK Mumbai Maharashtra SSI
AGENCIES NO4, EMERALD
PLAZA,
HIRANANDANI
MEADOWS, OFF-
POKHARAN ROAD
NO.2,
ALCON 2, Jaychanrika, Mumbai Maharashtra SSI
INDUSTRIES
324
Rd. No. 2,
Pestom Sagar, Chembur,
Mumbai. 400071
ALKEM Alkem Hse Devashish Mumbai Maharashtra SSI/LS

LABORATORIES Bldg,
LTD Senapati Bapat Marg, Adj
To Matulya Ctr, Lower
Parel
ALTA Alta Bhavan, Mumbai Maharashtra LS
LABORATORIES 532,Senapati Bapat Marg,
PVT LTD Dadar, Mumbai - 400 028.
ARISTO 23-A Shah Industrial Mumbai Maharashtra SSI
PHARMACEUTICAL EstateOff Veera Desai
S LTD Road Andheri (West)
Mumbai : 400053
AUROCHEM 333, Gundecha Ind. Mumbai Maharashtra SSI
LABORATORIES Complex, , Akurli Rd,
PVT LTD Kandivali , East Mumbai ,
Maharashtra
AVALON PHARMA Sethna Building, 216, Mumbai Maharashtra SSI/ LS
PVT LTD Shamaldas Gandhi Road
Princess Street
AVIK 194, Arvind Chamber, Mumbai Maharashtra SSI/ LS
PHARMACETICAL Gauri Studio Compound,
LTD Western Express
Highway,
Mumbai, Maharashtra -
400 069 (India)
BAADER SCHULZ Shantivilla, Shantivan Mumbai Maharashtra SSI
LABORATORIES Towers Compound,
(PHARMA DIV) Devidas Lane, Near Club
Aquaria, Borivali
BAKUL 16/2,DR A B ROAD Mumbai Maharashtra LS
AROMATICS AND WORLI, MUMBAI
CHEMICALS LTD 400018,
MAHARASHTRA
BEC CHEMICALS S-86, IBI House, Mumbai Maharashtra LS/MED
PVT LTD Chimatpada, Andheri-
Kurla Road, Andheri East
BHARAT SERUMS Plot No. A-371-372, Road Mumbai Maharashtra LS / MED
AND VACCINES 27,
LTD Wagle Industrial Estate,
Thane 400604.
BIOCHEM Aidun Bldg, John Crasto Mumbai Maharashtra SSI
PHARMACEUTICAL Lane
INDS
BLISS GVS Bldg. No.6 Unit No.29-A Mumbai Maharashtra SSI
PHARMA LTD Ground Floor Udit Mittal
325
Indl. Premises Co-op. Soc.
Ltd.Andheri Kurla Road
Andheri East
Mumbai
BLUE CROSS Peninsula Chambers Mumbai Maharashtra SSI
LABORATORIES Ground Floor Ganapatrao
LTD Kadam Marg Lower Parel
(West)
BHUSHAL 415 SHAH NAHAR Mumbai Maharashtra SSI
HEALTHCARE PVT WORLI,
LTD
CALYX CALYX CHEMICALS & KALYAN Maharashtra SSI/ LS
CHEMICALS & PHARMACEUTICALS
PHARMACEUTICAL LTD.
S LTD A-37,38, MIDC, Phase-I,
Golvali, Kalyan Shill
Road,
Dombivli(E)
CHANDRA 323- F, Dr. Ambedkar Mumbai Maharashtra LS
BHAGAT PHARMA Road, Mumbai,
PVT LTD Maharashtra - 400 019
(India)
CHARAK PHARMA Evergreen Industrial Mumbai Maharashtra MED
PVT LTD Estate, Dr. E Moses Road,
Shakti Mills Lane
Mahalaxmi,, Mumbai,
Maharashtra, India Zip:
400011
CHEMAPOL 55/A ALLI CHAMBERS, Mumbai Maharashtra LS
INDUSTRIES TAMARIND LANE,
Mumbai - 400023,
Maharashtra, India
COLINZ A-101, Pratik Ind. Mumbai Maharashtra LS / SSI
LABORATORIES Estate,Mulund-goregaon
LTD Link Road,Next To
Wockhardt
HospitalMumbai-400078,
Maharashtra
DIL LIMITED Dil Complex, Ghodbunder Mumbai Maharashtra MED / LS
Rd.
Thane, 400 610
India
Aarti drugs ltd Mahendra Industrial Mumbai Maharashtra SSI / MED
Estate Ground Floor Road
No 29 Plot No 109-D
SION (East) Mumbai :
400022 . Maharashtra
,India .
Bini Laboratories Ltd B-52,MIDC,Mumbai- Nasik Maharashtra SSI
Agra Road,, Behind Taj,
326
NASHIK - 422010
EISEN 34/7, Erandwana, Gulwani Pune Maharashtra SSI
PHARMACEUTICAL Maharaj Road, Kothrud,
CO. (PVT.) LTD. Pune - 411004
EISEN Pune - 411004
PHARMACEUTICAL (Maharashtra) India
CO. (PVT.) LTD.
Emcure T 184, M.I.D.C, Bhosari, Pune Maharashtra SSI
Pharmaceuticals Ltd Pune, Maharashtra -
411026 (India)
Gujar Pharmaceuticals 8, Purva Complex, B. G. Maharashtra SSI
Street, Sadashiv Peth 761/ Pune
A, Pune, Maharashtra -
411030 (India)
Libra Drugs (India) 92, Mangalwar Peth,, Pune Maharashtra SSI/ MED
Parge Chowk, Pune,
Maharashtra - 411 011
(India)
Health Secure (India) 1 Landscape DSouza Nasik Maharashtra SSI/MED
Pvt Ltd Colony, Gangapur Road,
Nasik 422013
Maharashtra India
Maxim 4/16 New prasanna park, Pune Maharashtra SSI
Pharmaceuticals Pvt behind, Meera Soc
LTd Shanker Sheth RD PUNE
411037
Narayans Remedies 201, Nityanand Complex, Pune Maharashtra SSI
Pvt Ltd 2nd Floor, Bundgarden
Road, ,
Pune - 411001,
Maharashtra, India
Nulife 203, Pleasant Pune Maharashtra SSI
Pharamaceuticals Apartments,15th Lane,
Prabhat Road,
Pune, Maharashtra - 411
004 (India)
Pushpam health care 35/1 B, New Gajra Pune Maharashtra SSI

products Society, Bibwewadi.,
Pune, Maharashtra -
411037 (India)
Rajan Pharmaceuticals 56/17, DII, M.I.D.C. Pune Maharashtra SSI
CHINCHWAD, PUNE-
411019
Serum Institute of 212/2, Off. Soli Pune Maharashtra SSI
India Ltd Poonawalla Road,
Hadapsar
The Varma Pharmacy 59, Industrial Estate, Pune Maharashtra SSI
PVT LTD Hadapsar
Twilight Litaka Himalaya Estate, Pune Maharashtra SSI
327
Pharma Ltd 16-A Shivajinagar,Pune
411 005
Maharashtra, India
Tel: (91-20) 3028 1700 /
01
Fax: (91 20) 2553 3211
E-mail : ropune@tlpl.co.in
Web
: www.twilightlitaka.com
Bil care Limited 1028, Shiroli, Pune Maharashtra MED
Rajgurunagar,
Maharashtra, Pune -
410505
Global institute of Global Institute of Pune Maharashtra SSI
regulatory affairs Regulatory Affairs,
Empire Estate, Shop No C
5&6, Mumbai Pune
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The Impact of Organizational Behaviour On Employees Behaviour in Pharmaceutical Companies in Selected Locations of Maharashtra Viz - Mumbai Pune Nasik Sapna Suri PDF

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The Impact of Organizational Behaviour On Employees Behaviour in Pharmaceutical Companies in Selected Locations of Maharashtra Viz - Mumbai Pune Nasik Sapna Suri PDF

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THE IMPACT OF ORGANIZATIONAL BEHAVIOUR ON

EMPLOYEES BEHAVIOUR IN PHARMACEUTICAL COMPANIES

employees behaviour in Pharmaceutical companies in selected locations of Maharashtra

University, Navi Mumbai, Department of Business Management is my original work and

fellowship or any other similar titles.

Place: Navi Mumbai

Signature of the PhD Student

employees behaviour in Pharmaceutical companies in selected locations of

Management at the Padmashree Dr. D. Y.Patil University Department of Business

an independent work on the part of the candidate.

Place: Navi Mumbai

Signature of the Head of the Dept Signature of Guide

Dr.R.Gopal, Director,Padmashree Dr. D.Y. Patil University, Navi Mumbai, Department

valuable suggestions to improve my Research work.

which made me bring my best.

the best of my ability.

Place: Navi Mumbai

Date: Signature of the PhD student

Chapter no Title Pg.No.

1.1 ORGANIZATIONAL BEHAVIOUR AND ITS IMPACT ON 37

1.2 MAHARASHTRAS PHARMACEUTICALS INDUSTRY 60

2.1 ORGANIZATIONAL BEHAVIOUR STUDIES 64

2.2 EMPLOYEES BEHAVIOUR STUDIES 71

2.3 IMPACT OF ORGANIZATIONAL BEHAVIOUR ON 77

2.5 LEADERSHIP STUDIES 88

2.6 POLITICAL ENVIRONMENT STUDIES 92

2.7 IMPLEMENTATION OF EVALUATION AND 95

2.9 INTERNAL COMMUNICATION STUDIES 99

2.12 ETHICS AND SOCIAL RESPONSIBILITY STUDIES 106

2.13 POWER AND POLITICS STUDIES 108

2.14 TEAMS AND TEAMS WORK STUDIES 111

2.15 ABSENTEEISM STUDIES 116

2.16 ATTRITION STUDIES 121

2.17 RESEARCH GAP 125

3. SCOPE OF THE STUDY 127

3.1 OBJECTIVES OF THE STUDY 128

3.2 STATEMENT OF HYPOTHESIS 130

4. RESEARCH METHODOLOGY 132

4.1 DESCRIPTIVE SURVEY 133

4.2 FIELD SURVEY 133

4.3 PILOT TEST 134

4.4 SAMPLING DESIGN 135

4.5 TABULATION AND STATISTICAL ANALYSIS OF 136

4.7 LIMITATION OF THE STUDY 137

5.1 ORGANIZATIONAL STRUCTURE 143

5.2 LEADERSHIP 152

5.3 POLITICAL ENVIRONMENT 157

5.4 IMPLEMENTATION OF EVALUATION AND 159

5.6 INTERNAL COMMUNICATION SYSTEM 175

5.7 POWER AND POLITICS 177

5.8 TEAMS AND TEAMS WORK 179

5.9 ETHICS AND SOCIAL RESPONSIBILITY 183

6 EMPLOYEES BEHAVIOUR 190

6.1 ABSENTEEISM 201

6.2 ATTRITION RATE 202

6.3 EMPLOYEE SATISFACTION 208

7 DATA INTERPRETATION 215

7.1 CITY OF RESPONDENTS 216

7.2 TYPE OF ORGANIZATION OF RESPONDENTS 217

7.3 GENDER OF RESSPONDENTS 218

7.4 AGE GROUP OF RESPONDENTS 219

7.5 MONTHLY INCOME OF RESPONDENTS 220

7.6..1 DIMENSIONS OF THE STUDY 223