BJ0061 SLM

BJ0061
Organizational Behaviour
and Media Organization
Edition: Fall 2009
Manipal
IN S P IR E D B Y LIF E
Sikkim Manipal University

D irectorate of D istance E ducation
B1581
Dean
Directorate of Distance Education
Sikkim Manipal University (SMU DDE)
BOARD OF STUDIES
Chairman Prof. K. V. Nagaraj
Head – Vocational Sciences Head, Department of Communication and
SMU DDE, Manipal – 576 104 Journalism, Mangalore University
Additional Registrar John Thomas
SMU DDE Ex-Editor, Vijay Times and Former Vice-Dean
Manipal – 576 104 IIJNM, Bangalore
Addl. Registrar (S.E.) Adam Clapham
Office of Student Evaluation Author and Former Senior Producer, BBC
SMU DDE, Manipal
Gopakumar A.V.
Prof. Buroshiv Dasgupta Sr. Lecturer (Journalism and Mass Communication)
Executive Director SMU DDE, Manipal
Manipal Institute of Communication
Manipal – 576 104 Special Invitee
Prof. Kushal Kumar
Muralidhar Hegde Dean, MIME, Bangalore
Chairman
Smart Works, Bangalore – 560 001
Dr Gautam Machiah
Vice President
Zee Network
Authors:
J.S. Chandan, Professor, Medgar Evers College, City University of New York (Units 1, 6–10, 12)
© J.S. Chandan, 2012
Dr Hemant Joshi, Associate Professor, Hindi Journalism, IIMC, New Delhi
Manjari Joshi, Newsreader, Delhi Doordarshan (Unit 3) © Dr Hemant Joshi & Manjari Joshi, 2012
Ravindra Dubey, Visiting Professor, Guru Govind Singh Indraprastha University and Delhi University
Krishna Kumar Tiwari, Assistant Professor, Journalism and Mass Communication, Amity University (Unit
4) © Ravindra Dubey & Krishna Kumar Tiwari, 2012
Vikas® Publishing House: (Units 2, 5, 11) © Reserved, 2012
Content Reviewer: Dr Shivram Krishnan [M. Com; MBA; MA Eco. PGDHE]
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Organizational Behaviour and Media Organization
Contents
Unit 1
Understanding an Organization 1–39
Unit 2
Newspaper: Organization and Management 41–70
Unit 3
Radio and Television 71–94
Unit 4
Print Media: Evolution and Reporting 95–124
Unit 5
Understanding Cinema 125–148
Unit 6
Management Information System 149–167
Unit 7
Concepts of Organizational Behaviour 169–199
Unit 8
Conflict and Stress 201–242
Unit 9
Group Dynamics and Leadership 243–284
Organizational Behaviour and Media Organization Subject Introduction
Contents
Unit 10
Motivation Theories 285–316
Unit 11
Organizational Behaviour and Performance Appraisals 317–360
Unit 12
Organizational Culture, Development and Change 361–401
Sikkim Manipal University Page No. (iv)

Book Name Subject Introduction
SUBJECT INTRODUCTION
Organizational Behaviour and Media Organization
‘Organizational behaviour’ is the study of people and their behaviour within the
organization, that is, in a workplace setting. Being an interdisciplinary field, it
includes the study of sociology, psychology, communication and management.
Media organizations require a lot of coordination and team work to excel
in what they do best, that is, present news and information to the masses. Be it
a newspaper office, a radio station, a television studio or film studio, many
people with various responsibilities work together to achieve a common goal.
Therefore, knowledge of concepts related to organizational behaviour,
organizational culture, group dynamics, conflict resolution and motivation are
essential for those associated with the media.
This book, Organizational Behaviour and Media Organization, comprises
twelve units.
Unit 1 – Understanding an Organization: Introduces the concept of
‘organization’ and assess the role of motivation in determining job satisfaction.
Also throws light on the significance of communication in an organization.
Unit 2 – Newspaper: Organization and Management: Discusses the
organization of newspapers and their forms of ownership. Also describes the
organizational set-up, structure and departmentalizations. Helps readers to
assess the role of the Press Council of India.
Unit 3 – Radio and Television: Exposes the reader to the media used for
mass communication, that is, radio, television, as well as the Internet, cellular
phones and computers.
Unit 4 – Print Media: Evolution and Reporting : Traces the evolution of the
print media and discusses its various genres. Also talks about reporting on
various areas such as culture, politics, healthcare and crime.
Unit 5 – Understanding Cinema: Discusses the audience for films, types of
films, cinema theatres and the role of the cinematographer.
Unit 6 – Management Information System: Explains the importance of
management information system in documenting, organizing and storing
information in an organization. Discusses the development, implementation and
limitations of MIS.
Sikkim Manipal University Page No. (v)

Organizational Behaviour and Media Organization Subject Introduction
Unit 7 – Concepts of Organizational Behaviour: Discusses the importance

of organizational process as well as the goals and models of organizational
behaviour.
Unit 8 – Conflict and Stress: Introduces the student to the concepts of ‘conflict’
and ‘stress’. Discusses ways of resolving conflicts and managing stress with
special emphasis on counseling.
Unit 9 – Group Dynamics and Leadership: Discusses the nature and types
of groups, the significance of group dynamics and teams in a modern workplace
and approaches to leadership.
Unit 10 – Motivation Theories: Elaborates the meaning and concepts of
motivation. Provides details of the various theories of motivation.
Unit 11 – Organizational Behaviour and Performance Appraisals: Helps
the student to assess the role of appraisals and organizational rewards in the
modern workplace. Also discusses sexual harassment and the importance of
balancing personal and professional life.
Unit 12 – Organizational Culture, Development and Change: Discusses the
models of culture, the significance of ethics and the role of organizational change.
Objectives of studying the subject
After studying this subject, you should be able to:
• Define what an organization is
• Illustrate the organizational structure of a newspaper
• Manage a newspaper
• Discuss the role of radio, television,and new media in disseminating
information and facilitating communication
• Assess the significance of management information systems
• Resolve conflicts in any media organization and provide counselling for
stress management
• Apply various motivation theories to improve workplace environment
• Discuss the importance of organizational culture and change
Sikkim Manipal University Page No. (vi)

Unit 1 Understanding an Organization
Structure
1.1 Introduction
Objectives
1.2 What is an Organization?
1.3 Working of an Organization
1.4 Motivation Factors of Job Satisfaction
1.5 Communication in an Organization
1.6 Summary
1.7 Glossary
1.8 Terminal Questions
1.9 Answers
1.10 Further Reading
1.1 Introduction
In this unit, you will learn what an organization is and how it is structured. An
organization is a social group which distributes tasks for a collective goal.
Organizing is the process of selecting and structuring the means by which
organizational objectives are to be achieved. The process of organizing consists
of various steps, such as reviewing plans and objectives, determining activities,
classifying and grouping activities, assigning work and resources, and evaluating
results. A good organizational structure is needed so that each individual in the
organization is assigned a role, responsibility and necessary authority.
Organizational structure involves arrangement of activities and assignment of
personnel to these activities in order to achieve the organizational goals. It is a
way by which various parts of an organization are tied together in a coordinated
manner. It illustrates the relationships among various levels of the hierarchy
within the organization as well as horizontal relationships among various aspects
of the organizational operations. A well planned organization structure results in
better use of resources.
This unit will introduce you to the motivating factors that determine job
satisfaction. Many companies in India struggle to find and keep the right people
for the job. High attrition rates cause unforeseen expenses and sometimes even
crush the entire business venture. Motivating workers becomes a vital part of
the business. Motivation is a permanent and an integral part of a human being.
It is continuously goal directed so that once a goal is achieved, a higher goal is
selected and efforts are exercised towards the new goal. Several research
Organizational Behaviour and Media Organization Unit 1
studies have been undertaken to establish some of the motivating factors that
result in job satisfaction. These studies have revealed that certain motivating
factors are consistently correlated with job satisfaction.
This unit will also discuss the importance of communication in an
organization. Communication is considered to be the most important ingredient
of the management process. In today's global business environment. effective
organizational communication, internal and external, has a significant impact
on an organization's success. Reasons for the increasing importance of
organizational communication are many. The world of work has become more
complex. Knowledge, learning and innovation are critical to an organization's
sustainability, Further, with employees often being widely distributed
geographically, communication technologies and networks are essential for the
accomplishment of a company's strategy. Interpersonal and two way
communication is fundamental to all managerial activities. All other management
functions involve communication in some forms of direction and feedback.
Effective management is a function of effective communication. Many operations
have failed because of inadequate communication, misunderstood messages
and unclear instructions.
Objectives
After studying this unit, you should be able to:
• Define what an organization is
• Describe how an organization works
• Give examples of motivating factors that determine job satisfaction
• Discuss the importance of communication in an organization
• Explain the ways to improve communication effectiveness
1.2 What is an Organization?
According to Sheldon, ‘Organization is the process of so combining the work,

which individuals or groups have to perform with the facilities necessary for its
execution, that the duties so performed provide the best channels for the efficient,
systematic, positive and coordinated application of the available effort.’
Organizations, according to Gary Johns, ‘are social inventions for
accomplishing goals through group efforts’. This definition, though simple, covers
a wide variety of groups, such as businesses, schools, hospitals, fraternal groups,
religious bodies, government agencies and the like.
Sikkim Manipal University Page No. 2

There are three significant aspects in the above definition that require further
analysis. These are:
1. Social inventions
The word ‘social’, as a derivative of society, basically means gathering of people
as against plants, machines, buildings, even though plants, machines and
buildings are necessary contributors to the existence of the organization. However,
organization will cease to exist if there were no people to run these organizations
even if other things remain. For example, if ‘everybody’ resigns from a company
and no one is replaced, then it is no longer an organization even though all
material assets of the company remain until they are disposed of. On the other
hand, there are organizations such as neighbourhood associations that have
only people in them and are without any physical assets. Accordingly, it is the
people that primarily make up organizations.
2. Accomplishing goals
An organization is not simply a group of people at a given place. For example,
a group of people in a department store would not be considered an organization
even though they all have the same goal, which is shopping. However, this goal
is not the common goal and there are no coordinated efforts to achieve this
goal. All organizations have reasons for their existence. These reasons are the
goals towards which all organizational efforts are directed. While the primary
goal of any commercial organization is to make money for its owners, this goal
is interrelated with many other goals. Accordingly any organizational goal must
integrate in itself the personal goals of all individuals associated with the
organization. For example, General Motors may have the commercial goal of
producing and selling more cars every year, community goal of reducing air
pollution created by its products and the employee goals of earning and success
achievement. Similarly, non-profit organizations such as universities may have
the main goal of creating and communicating knowledge along with other goals
such as scholarly reputation and teaching excellence. The degree of
achievement of such goals reflects the overall performance and effectiveness
of the organization.
3. Group effort
People, both as members of the society at large and as a part of an organization,
interact with each other and are interdependent. The concept of marriage and
family itself is based upon sharing of life and efforts. The need for such
interdependence has both sociological and anthropological roots. In the very
beginning of human era, people formed groups to go on hunting and protect

their families from intruders. Secondly, interdependency is necessary for survival

as a lone man can accomplish little because of many constraints placed upon
him, both physiological as well as societal. Additionally, technological complexities
of modern day products necessitate working in groups. For example, no single
person can put together a 747 Jumbo Jet. Literally hundreds and thousands of
people are involved in coordinated activities in the process of designing and
building such an airplane. Individuals in themselves have physical and intellectual
limitations and these limitations can only be overcome by group efforts.
1.2.1 Benefits of a Good Organization

While there are many different structures that organizations can adopt, depending
upon the type of organization, including whether it is a service organization or a
manufacturing organization, a well structured organization has many benefits.
Some of the beneficial outcomes of a good organization are:
• A good organization facilitates attainment of objectives through proper
coordination of all activities. It has a built-in system of ‘checks and balances’
so that the progress towards the attainment of objectives is evaluated
along the way and any new decisions that may be required are taken.
• In a good organization, the conflicts between individuals over jurisdiction
are kept to a minimum. Since each person is assigned a particular job to
perform, the responsibility of performing that job rests solely with him.
Hence, the interdependency is reduced to a minimum.
• It eliminates overlapping and duplication of work. Duplication only exists
when the work distribution is not clearly identified and the work is performed
in a haphazard and disorganized way. Since a good organization demands
that the duties be clearly assigned, such duplication of work is eliminated.
• It decreases the likelihood of ‘runarounds’. The ‘run-arounds’ occur when
we do not know who is responsible for what and we are sent to wrong
people for getting some work done. However in a well organized company
where the responsibilities are clearly established, this does not occur.
• It facilitates promotions. Since the organizational chart clearly pinpoints
the positions of individuals relative to one another, it is easier to know as
to which level a person has reached. Furthermore, since each job is well
described in terms of qualifications and duties, the promotional stages
can be more clearly established.
• It aids in wage and salary administration. A fair and equitable wage and
salary schedule is based upon the premise that the jobs with similar

requirements should have similar benefits. If these requirements are clearly

established and the yearly increments or the cost of living increments for
each type of job are clearly and properly understood, then compensation
administration policies are easier to apply.
• Communication is easier at all levels of organizational hierarchy. Since
the lines of communications and the flow of authority is quite clear in the
organizational chart, the inter-communication is both clearer and easier
and it eliminates ambiguity.
• A well-structured organization provides a sound basis for effective
planning. Since the goals and resources are clearly established and
identified, both short-term as well as strategic planning becomes easier
and realistic and such planning contains the provision to permit changes
to be made in the right direction including expansion or contraction of
operations and activities when necessary.
• It results in increased cooperation and a sense of pride among members
of the organization. An employee is given sufficient freedom within the
domain of his responsibility and his authority. Since the authority and the
extent of exercise of such authority is known, it develops a sense of
independence in employees which in turn is highly morale boosting.
• It encourages creativity. Because of a sense of belonging and high morale
and with the help of clear-cut accountability, recognition of skill and
appreciation for contribution towards organizational growth, it encourages
resourcefulness, initiative and a spirit of innovation and creativity.
1.2.2 Organizational Structure
Exhibit 1.1
Airtel Announces a New Organisational structure for India and South

Asia
July 7, 2011
Bharti airtel has announced a new organisational structure for its Indian and
South Asian operations. The new structure will be effective from August 1,
2011.
The transformed organisational structure will have two distinct customer
business units with a clear focus on the business-to-customer (B2C) and
business-to-business (B2B) segments.

Bharti airtel’s B2C business unit will comprehensively serve retail consumers,
homes and small offices, by combining the erstwhile business units, mobile,
telemedia and digital TV. The B2C organisation will consist of consumer
business and market operations.
The consumer business group will lead the overall B2C strategy and will
focus on customer experience, product and service innovation (including
data, VAS, new products/services), and build an ecosystem around the
B2C services. K. Srinivas will lead this vertical as the president, consumer
business.
The market operations group will lead the go-to-market strategy. This vertical
will provide products and services to customers in South Asia. The
company’s market operations in India and South Asia will be divided in three
regions, each headed by an operations director. The North, East and
Bangladesh operations will be headed by Ajai Puri; the South and Sri Lanka
operations will be headed by Vineet Taneja; and operations in the West will
be headed by Raghunath Mandava (along with the national distribution
portfolio.
The B2B business unit will continue to be led by Drew Kelton. In their new
roles K Srinivas, Ajai Puri, Raghunath Mandava and Vineet Taneja, along
with Drew Kelton, will report to Sanjay Kapoor, CEO, India & South Asia.
Atul Bindal will move into a role within the group.
Source: http://www.tele.net.in/news/item/8044
A good organizational structure is needed so that:

(a) Each individual in the organization is assigned a role, responsibility and
necessary authority. Each person who is assigned to an activity must
know his position, his role and his relationship with others. He is further
responsible for efficient execution of his role and duties and is given the
authority to do so.
(b) The activities of all individuals are coordinated and integrated into a common
pattern in order to achieve the organizational objectives. Organization is
needed for the purpose of integration of diverse activities in a cohesive
manner.
(c) The optimum use of human skill and efforts is achieved. Half the work is
completed when you know what you have to do and how you have to do it.
A good organization does that. It helps in smooth operations and smooth
flow, thus avoiding bottlenecks, idle time and idle machines. A good

organization acquires the right person for the right job and this avoids
misapplications of human resources thus resulting in optimal utilization of
employee efforts. This would ensure efficiency in the functioning of the
enterprise.
Steps in organizational structure
The following are the steps in creating a good organizational structure:
1. Determination, identification and enumeration of activities
Once the goals and objectives of the organization have been established, the
activities required to achieve these objectives are identified. These activities are
broken down into sub-activities as far down the hierarchy as possible so that
each individual knows as to what part of the activity he is responsible for. Care
must be taken so that all necessary activities are taken into account and any
activity that is unnecessary is taken out. This process applies to both managerial
as well as operational activities.
2. Grouping and assigning of activities
All similar activities are grouped together and assigned on the basis of divisions
or departments. These sets of activities may further be sub-divided into sections
or units. These groupings may be done on the basis of primary functions such
as production, finance, sales, personnel, and so on, or these may be done on
derivative basis such as types of customers, geographical areas and so on.
These activities are then assigned to personnel as heads of the departments,
such as production managers, marketing managers, personnel directors and
so on. They in turn delegate and distribute jobs to their subordinates down the
line. Care should be taken that the personnel and their jobs are well matched.
3. Delegation of authority
Since the persons who are assigned particular activities are responsible for
performing these duties to the best of their ability, they must be given
corresponding authority to discharge their obligations. Responsibility and authority
are tied together. Responsibility is really the accountability of authority. Authority
without responsibility is a dangerous element. For example, if a marketing
manager has the responsibility to increase sales, but does not have the authority
to hire and maintain a competent sales force, then the responsibility in itself has
little meaning.
Types of organizational structures
The type of organizational structure would depend upon the type of organization
itself and its philosophy of operations. Basically, the structure can be mechanistic

or organic in nature or a combination thereof. However, most organizational

structures are still designed along mechanistic or classical lines.
Some of the organizational structures are explained as follows:
1. Line organization
This is the simplest form of organization and is most common among small
companies. The authority is embedded in the hierarchical structure and it flows
in a direct line from the top of the managerial hierarchy down to different levels
of managers and subordinates and further down to the operative levels of
workers. It clearly identifies authority, responsibility and accountability at each
level. These relationships in the hierarchy connect the position and tasks of
each level with those above and below it. There is clear unity of command so
that the person at each level is reasonably independent of any other person at
the same level and is responsible only to the person above him. The line personnel
are directly involved in achieving the objectives of the company. A typical line
structure is illustrated as follows:
President
Vice-president
Plant Manager
Foreman A Foreman B Foreman C
Workers Workers Workers
Figure 1.1 A Line Structure
Because of the small size of the company, the line structure is simple and
the authority and responsibility are clear-cut, easily assignable and traceable. It
is easy to develop a sense of belonging to the organization, communication is
fast and easy and feedback from the employees can be acted upon faster. The
discipline among employees can be maintained easily and effective control can
be easily exercised. If the president and other superiors are benevolent in nature,
then the employees tend to consider the organization as a family and tend to be
closer to each other that is highly beneficial to the organization.
On the other hand, it is a rigid form of organization and there is a tendency
for line authority to become dictatorial that may be resented by the employees.
Also, there is no provision for specialists and specialization that is essential for

growth and optimization and hence for growing companies, pure line type of
structure becomes ineffective.
The line organization can be a pure line type or departmental line type. In
the pure line type set-up, all similar activities are performed at any one level.
Each group of activities is self contained and is independent of other units and is
able to perform the assigned duties without the assistance of others. In a
departmental line type of organization, also known as functional structure, the
respective workers and supervisors are grouped on a functional basis such as
finance, production and marketing and so on.
2. Line and staff organization
In this type of organization, the functional specialists are added to the line, thus
giving the line the advantages of specialists. This type of organization is most
common in our business economy, especially among large enterprises. Staff is
basically advisory in nature and usually does not possess and command authority
over line mangers. The staff consists of two types:
(i) General staff: This group has a general background that is usually similar
to executives and serves as assistants to top management. They are not
specialists and generally have no authority or responsibility of their own.
They may be known as special assistants, assistant managers or in a
college setting as deputy chairpersons.
(ii) Specialized staff: Unlike the general staff who generally assist only one
line executive, the specialized staff provides expert staff advice and service
to all employees on a company wide basis. This group has a specialized
background in some functional area and it could serve in any of the following
capacities:
(a) Advisory capacity: The primary purpose of this group is to render
specialized advice and assistance to management when needed.
Some typical areas covered by advisory staff are legal, public relations
and economic development.
(b) Service capacity: This group provides a service that is useful to the
organization as a whole and not just to any specific division or
function. An example would be the personnel department serving
the enterprise by procuring the needed personnel for all departments.
Other areas of service include research and development,
purchasing, statistical analysis, insurance problems and so on.
(c) Control capacity: This group includes quality control staff who may
have the authority to control the quality and enforce standards.

The line and staff type of organization uses the expertise of specialists
without diluting the unity of command. With the advice of these specialists, the
line managers also become more scientific and tend to develop a sense of
objective analysis of business problems. According to Saltonstaff, a staff member
may serve as a coach, diagnostician, policy planner, coordinator, trainer,
strategist, and so on.
A simple line and staff diagram is shown as follows:
Figure 1.2 Line and Staff Structure
The line and staff type of organization is widely used and is advantageous
to the extent that the specialized advice improves the quality of decisions resulting
in operational economics. Also, since line managers are generally occupied
with their day-to-day current operations, they do not have the time or the
background for future planning and policy formulation. Staff specialists are
conceptually oriented towards looking ahead and have the time to do strategic
planning and analyse the possible effects of expected future events.
Its main disadvantages are the confusion and conflict that arise between
line and staff, the high cost that is associated with hiring specialists and the
tendency of staff personnel to build their own image and worth, which is
sometimes at the cost of undermining the authority and responsibility of line
executives.

3. Functional Organization
One of the disadvantages of the line organization is that the line executives lack
specialization. Additionally, a line manager cannot be a specialist in all areas. In
the line and staff type of organization, the staff specialist does not have the
authority to enforce his recommendations. The functional organizational concept,
originated with Fredrick W. Taylor and it permits a specialist in a given area to
enforce his directive within the clearly defined scope of his authority. A functional
manager can make decisions and issue orders to the persons in divisions other
than his own, with a right to enforce his advice. Some good examples of
specialists who have been given functional authority in some organizations are
in the areas of quality control, safety and labour relations.
The functional organization features separate hierarchies for each function
creating a larger scale version of functional departments. Functional
departmentalization is the basis for grouping together jobs that relate to a single
organizational function or specialized skill such as marketing, finance, production
and so on. The chain of command in each function leads to a functional head
who in turn reports to the top manager. A typical chart for a functional organization
for a college may be as follows:
President
Dean, School Dean, School Dean, School

of Education of Business of Sciences
Department of Department of Department of

Business Adm. Economics Computers
Figure 1.3 Structural Organization of a College
The functional design enhances operational efficiency as well as

improvement in the quality of the product because of specialists being involved
in each functional area and also because resources are allocated by function
rather than being duplicated or diffused throughout the organization.
One of the main disadvantages of the functional design is that it
encourages narrow specialization rather than general management skills so
that the functional managers are not well prepared for top executive positions.
Also, functional units may be so concerned with their own areas that they may
be less responsive to overall organizational needs.

4. Divisional organization
The divisional or departmental organization involves grouping of people or
activities with similar characteristics into a single department or unit. Also known
as self-contained structures, these departments operate as if these were small
organizations under a large organizational umbrella, meeting divisional goals as
prescribed by organizational policies and plans. The decisions are generally
decentralized so that the departments guide their own activities. This facilitates
communication, coordination and control, thus contributing to the organizational
success. Also, because the units are independent and semi-autonomous, it
provides satisfaction to the managers, which, in turn, improves efficiency and
effectiveness.
This division and concentration of related activities into integrated units is
categorized on the following basis:
(i) Departmentation by product: In this case, the units are formed according
to the type of product and it is more useful in multi-line corporations where
product expansion and diversification, and manufacturing and marketing
characteristics of the product are of primary concern. The general policies
are decided upon by the top management within the philosophical guidelines
of the organization. For example, General Motors has six divisions that
are decentralized and autonomous. These are: Buick, Pontiac, Oldsmobile,
Cadillac, Chevrolet and GMC Trucks. Each division is autonomous and
each division strives to improve and expand its own product line and each
divisional general manager is responsible for its costs, profits, failures
and successes. In this type of departmentation, the responsibility as well
as the accountability is traceable, thus making the division heads sensitive
to product needs and changing consumer tastes. The departmentation
by product, in this case, is shown as follows:
President
Vice-President Vice-President Vice-President

Buick Div. Cadillac Div. Pontiac Div.

Oldsmobile Div. Chevrolet Div. GMC Trucks
Figure 1.4 Departmentation by Product

This type of organizational structure facilitates the measurement of

managerial as well as operative results and the contribution of each product
line to the organization’s total profit can be evaluated.
The major disadvantage of this type of departmentalization is that it
promotes fierce internal competition that may or may not be healthy and
there may be lack of cooperation among different divisions, even though
the central management retains the policy making and financial
management authority.
(ii) Departmentation by customers: This type of departmentation is used
by those organizations that deal differently with different types of
customers. Thus, the customers are the key to the way the activities are
grouped. Many banks have priority services for customers who deposit a
given amount of money with the bank for a given period of time. Similarly,
business customers get better attention in the banks than other individuals.
First class passengers get better service by the airlines than the economy
class passengers. An organization may be divided into industrial product
buyers and consumer product buyers, and so on.
A division based on the priority customers and regular customers in a
bank is shown below:
Vice President
Priority Customers Regular Customers
Figure 1.5 Devision Based on Priority
(iii) Departmentation by area: If an organization serves different geographical

areas, the division may be based upon geographical basis. Such divisions
are specially useful for large scale enterprises that are geographically
spread out such as banking, insurance, chain department stores or a
product that is nationally distributed. For example, there may be a separate
vice-president of marketing who is responsible for promotion of the product
in Eastern Region, in North-Western Region, in Southern Region and so
on. In the case of multinational organizations, the divisions may be
European Division, Middle East Division and Far East Division and so on,
with central control office in the United States as shown:

President

Domestic Div. European Div. Middle East Div.
Vice-President Vice-President
Far East Div. South America Div.
Figure 1.6 Departmentation by Area
In these cases, the local population is served by the divisional personnel

while the policies are formulated at the headquarters. The local
management is in close contact with the people in the area, taking
advantage of such local factors as customs, culture, styles and social
preferences. The one problem is the difficulty in communication that can
delay important decisions and create problems with coordination of
interrelated activities.
(iv) Departmentation by time: Hospitals and other public utility companies
such as telephone company that work around the clock are generally
departmentalized on the basis of time shifts. For example, the telephone
company may have a day shift, an evening shift and a night shift, and for
each shift a different department may exist, even though they are all alike
in terms of objectives. The set-up is as follows:
Manager
Supervisor Supervisor Supervisor

Day Shift Evening Shift Night Shift
Figure 1.7 Departmentation by Time
The organizational structure on the basis of divisions of various types, as

has been explained, has certain advantages. Since the decisions are made
at the point of operations, they are fast thus making the divisions flexible
to adopt to any changes that might occur. Also, it releases top management
for more important policy decisions. The expansion is easier since any
other facility can be added, if necessary. One of the major disadvantages
of these divisions is the duplication of work, since each division will have

its own staff and specialists. Also, since each division is responsible for
its profits and losses, sometimes, divisional interests may take priority
over the organizational goals.
5. Project Organization
These are temporary organizational structures formed for specific projects for
a specific period of time and once the goal is achieved, these are dismantled.
For example, the goal of an organization may be to develop a new automobile.
For this project, the specialists from different functional departments will be
drawn to work together. These functional departments are production,
engineering, quality control, marketing research, etc. When the project is
completed, these specialists go back to their respective duties. These specialists
are basically selected on the basis of task related skills and technical expertise
rather than decision making experience or planning ability.
These structures are very useful when:
• The project is clearly defined in terms of objectives to be achieved and the
target date for the completion of the project is set. An example would be
the project of building a new airport.
• The project is separate and unique and not a part of the daily work routine
of the organization.
• There must be different types of activities that require skills and
specialization and these must be coordinated to achieve the desired goal.
• The project must be temporary in nature and not extend into other related
projects.
6. Matrix organization
A matrix structure is, in a sense, a combination and interaction of project and
functional structures and is suggested to overcome the problems associated
with project and functional structures individually. The key features of a matrix
structure are that the functional and project lines of authority are super-imposed
with each other and are shared by both functional and project managers.
The project managers are generally responsible for overall direction and
integration of activities and resources related to the project. They are responsible
for accomplishing work on schedule and within the prescribed budget. They are
also responsible for integrating the efforts of all functional managers to

accomplish the project and directing and evaluating project activity. The functional
managers are concerned with the operational aspects of the project. The
functional structure is primarily responsible for:
• Providing technical guidance for the project.
• Providing functional staff that is highly skilled and specialized.
• Completing the project within prescribed technical specifications.
Greiner sees matrix organization, in which cross-functional teams are
used, as a response to growing complexity associated with the organizational
growth. These complexities, both internal (size, technology) as well as external
(markets, competitors), create problems of information processing and
communication that are best dealt by matrix type of organization.
Matrix organizational design is most useful when there is pressure for
shared resources. For example, a company may need eight product groups,
yet have the resources only to hire four marketing specialists. The matrix provides
a convenient way for the eight groups to share the skills of the four specialists.
Each matrix contains three unique sets of role relationships: (i) the top
manager or Chief Executive Officer who is the head and balances the dual
chains of command; (ii) the managers of functional and project (or product)
departments who share subordinates; and (iii) the specialists who report to both
the respective functional manager and project manager.
An important aspect of the matrix structure is that each person working
on the project has two supervisors — the project manager and the functional
manager.
Since the matrix structure integrates the efforts of functional and project
authority, the vertical and horizontal lines of authority are combined and the
authority flows both down and across. The vertical pattern is brought about by
the typical line structure where the authority flows down from superior to
subordinates. The project authority flows across because the authority is really
assigned for coordinating efforts, that is a horizontal function, rather than giving
orders and directions that is a vertical function.

A simple form of matrix design is illustrated as follows:
Figure 1.8 A Simple Matrix Design
Stephen P. Robbins has emphasized that most Schools of Businesses

in Colleges and Universities are organized along matrix structure, where they
superimpose product or programme structures such as undergraduate
programmes, graduate programme, executive development programme and
so forth, over functional departments of management, marketing, accounting,
finance and so on. Directors of program groups utilise faculty from the functional
departments in order to achieve their goals. A typical matrix structure for a School
of Business is shown as follows:
Figure 1.9 A Typical Matrix Structure for a School of Business

It can be seen in the above illustration, that the Directors of various

programmes staff their courses from the faculty of the various departments and
the same faculty serves various programmes. The matrix provides clear lines
of responsibility for each program. For example, the responsibility for the
success or failure of Executive Development Programme lies directly with the
Programme Director. The matrix structure provides for coordination of faculty
among the various course offerings of the various programmes. Without the
matrix, such coordination would be very difficult.
By its very nature, a matrix type of organization is more democratic,
interactive and participative with emphasis on interdependence of departments
and increased collaboration and cooperation among a wider range of people.
The structure has a number of advantages.
Activity 1
Make a list of important business organizations in your city which you can
categorize as line and staff organizations.
Self-Assessment Questions
1. Fill in the blanks with appropriate words:

(a) According to ————, ‘Organizations are social inventions for
accomplishing goals through group efforts.’
(b) The three significant aspects of an organization are social inventions,
accomplishing goals and ———.
2. State whether the following statements are true or false.
(a) A group of people in a department store would not be considered an
organization even though they all have the same goal.
(b) Line and staff organization is the simplest form of organization and
is most common among small companies.
1.3 Working of an Organization
An organizational system involves arrangement of activities and assignment of

personnel to these activities in order to achieve the organizational goals. It involves
creating a structure by which various parts of an organization are tied together

in a coordinated manner. It illustrates the relationships among various levels of

the hierarchy within the organization as well as the horizontal relationships among
various aspects of the organizational operations. A well-planned organization
structure results in better use of resources.
Organizing is an important function of management. If planning involves
the determination and achievement of objectives, then organizing is the process
of selecting and structuring the means by which those objectives are to be
achieved. The organizing process deals with how the work is to be divided, how
coordination of different aspects is to be achieved, and so on. We are truly a
society of organizations. All work has to be organized efficiently in order to use
the resources available to us in the most efficient manner. One reason for
organizing is to establish lines of authority. This creates order within the
organization. Absence of authority almost always creates chaotic situations and
chaotic situations are seldom productive—hence, the importance of organizing
efforts well. Effective organizations include coordination of efforts and such
coordination results in synergy.
Synergy occurs when individuals or separate units work together to produce
a whole greater than the sum of the parts. This means that 2 + 2 = 5. Furthermore,
organizing is important to improve communication among the members. A good
organizational structure clearly defines channels of communication among the
members of the organization. Proper and correct communication is one of the
keys to success. Most people believe that organizations are social entities and
social forces, such as politics, economics, and religion shape, organizations.
Some organizational theorists suggest the opposite. They say that it is the large
organizations which influence politics and economics. Social class is determined
by rank and position within the organization. Organization is the essence of
living. An organized family is more productive than a disorganized family. All
families depend on business organizations for their livelihood.
The organizing function is extremely important, because once the
objectives of the organization and the plans have been established, it is the
primary mechanism with which managers activate such plans. Organizing is
the function of gathering resources, establishing orderly uses for such resources
and structuring tasks to fulfill organizational plans. It includes the determination
of what tasks are to be done, how the tasks are to be grouped, who is going to
be responsible to do these tasks and who will make decisions about these tasks.
The process of organizing consists of the following five steps. Figure 1.10 shows
five steps of organizing.

1 2 3
Reviewing plans Determining Classifying and
and objectives activities grouping activities
Feedback 5 4
Evaluating Assigning work
results and resources
Figure 1.10 Five Steps of Organizing
1. Reviewing plans and objectives

The first step for the management is to reflect on the organizational goals and
objectives and its plans to achieve them so that proper activities can be
determined. If a high class restaurant, for example, is to be opened in an elite
area, then the management must establish objectives and review these
objectives so that these are consistent with the location of the restaurant and
the type of customers to be served.
2. Determining activities
In the second step, managers prepare and analyse the activities needed to
accomplish the objectives. In addition to general activities, such as hiring, training,
keeping records, and so on, there are specific activities which are unique to the
type of business that an organization is in. In the case of the restaurant, for
example, the two major activities or tasks are cooking food and serving
customers.
3. Classifying and grouping activities
Once the tasks have been determined, these tasks must be classified into
manageable work units. This is usually done on the basis of similarity of activities.
In a manufacturing organization, for example, the activities may be classified
into production, marketing, finance, research and development, and so on. These
major categories of tasks can be subdivided into smaller units to facilitate
operations and supervision. For example, in the area of serving customers in
the restaurant, there may be different persons for taking cocktail orders, for food
orders and for clearing the tables. For cooking food, there may be different cooks
for different varieties of food.
4. Assigning work and resources
This step is critical to organizing because the right person must be matched
with the right job and the person must be provided with the resources to
accomplish the tasks assigned. The management of the restaurant must

determine as to who will take the orders and who will set as well as clear the
tables, and what the relationship between these individuals will be. Management
must also make sure that adequate resources of food items, utensils and cutlery
are provided as necessary.
5. Evaluating results
In this final step, feedback about the outcomes would determine as to how well
the implemented organizational strategy is working. This feedback would also
determine if any changes are necessary or desirable in the organizational
set-up. In the case of the restaurant, for example, complaints and suggestions
from customers would assist the manager in making any necessary changes
in the preparation of food, internal decor of the restaurant or efficiency in service.
Activity 2
Find out how any big business organization in your city works.

(a) ———- is the process of selecting and structuring the means by
which those objectives are to be achieved.
(b) Reviewing plans and objectives is the ———— step of organizing.
(a) A well-planned organization structure results in better use of
resources.
(b) Synergy occurs in an organization when individuals or separate units
work together to produce a whole greater than the sum of the parts.
1.4 Motivation Factors of Job Satisfaction
The subject of motivation is one of the most important and widely studied topics
in the field of management and organizational behaviour. One of the most
frequently used terms among managers is ‘motivation’. The level of performance
is often tied with the level of motivation. Accordingly, work effective managers
are concerned about motivation because the work motives of employees affect
their productivity and quality of their work.

People differ by nature, not only in their ability to perform a specific task
but also in their ‘will’ to do so. This ‘will’ to do is known as motivation. By
understanding a person’s ability and his motivation, a manager can forecast his
performance level. Motivation and ability interact in a multiplicative manner to
yield performance, so that:
Performance = Ability × Motivation
This means that if either ability or motivation is zero, then the resulting
performance is zero. However, people with less ability and stronger ‘will’ may be
able to perform better than people with superior ability and lack of ‘will’, because
people with high motivation learn to become capable while superior ability may
not induce any motivation.
The force of motivation is a dynamic force, setting a person into motion or
action. The word motivation is derived from ‘motive’, which can be defined as an
active form of a desire, craving or need which must be satisfied. All motives are
directed towards goals, and the needs and desires affect or change a person’s
behaviour which becomes goal oriented. For example, if you ordinarily do not
want to work overtime, it is quite likely that at a particular time, you may need
more money (desire), change your behaviour, work overtime (goal oriented
behaviour) and satisfy your needs.
People are different with respect to their capabilities to perform a particular
activity or task and also with respect to the degree of willingness they have in
order to take up a task. It has been observed that the people who have greater
willingness to work hard or perform tasks are more successful and exhibit higher
levels of performance than the ones who have though greater ability but possess
lesser willingness levels. According to Albert Einstein, ‘genius is 10 per cent
inspiration and 90 per cent perspiration’. Going with this thought, though hard
work is extremely crucial and important but even more important than hard work
is the will to do this hard work and this will is referred to as motivation.
Thus, motivation has been defined as a dynamic force which is capable
of inspiring people for performing some actions or motions. Viteles defines
motivation as follows:
‘Motivation represents an unsatisfied need which creates a state of tension
or disequilibrium, causing the individual to move in a goal directed pattern towards
restoring a state of equilibrium, by satisfying the need.’
It has been researched and found out that people who are motivated
generally remain in a state of tension. They are able to relieve this tension only

by achieving something substantial or by achieving their stated goals and

objectives. This constant tension will actually inspire them to do a greater activity
in order to arrive at the desired outcomes as fast as possible. Thus, greater the
tension in an individual to reach his goals, the greater is the level of motivation.
In other words, the more the tension, the more motivated an individual is.
Exhibit 1.2
‘Emotional Ownership’ Key to Keep Employees Motivated

Attractive remuneration packages and perks are vital to retain employees
but it may not necessarily motivate them to give their best to the company if
there is no sense of “emotional ownership” towards the organisation,
according to a new study.
The factors contributing to “emotional ownership of work” and a sense of
belonging are “opportunities of self-expression, creativity in work,
empowerment, freedom on job, opportunity to learn something new, variety
in job and a sense of achievement”, said the study on transforming the
organisational culture, conducted by Manik Kher, a UGC research scientist
at Pune University, advocating the concept of ‘Emotional Ownership’ to keep
employees motivated.
“All over the world organisations are plagued by a number of concerns such
as rising costs, cut throat competition, corruption, job insecurity and
employees’ dissatisfaction due to various reasons.
“A combination of above mentioned factors can establish a link between
one’s work and the organisational goals,” said the study based on emulative
examples and exhaustive interactions in the industry.
“A person who likes his work may not like his organisation. A feeling of
ownership towards the organisation does not come by offering Employee
Stock Option Scheme but by making employees experience fairness, timely
recognition of good work, trust and openness through transparent
management, a caring approach, job security, freedom at work, a friendly
work atmosphere and good career prospects,” it said.
Alienation from organisation is the “stumbling block in creating emotional
ownership.” An employee would give his best to the organisation only when
he “owns” his organisation emotionally”, said the study titled “The culture of
emotional ownership” by Kher who holds a doctorate in Industrial Sociology.

The study highlights the problem of middle cadre employees, who it said
“invariably get neglected” by management rendering them more vulnerable
to job insecurity than unionised workmen covered under Industrial Dispute
Act.
Describing it as a “sandwiched cadre”, it said “their situation is worse in
recessionary conditions. Whenever the market dictates manpower
reduction, the axe first falls on middle cadre employees for their removal is
easier than that of operatives...”
“Acute insecurity in times of economic slump makes one awfully stressful
and lose interest in everything. Those working in the IT sector are the worst
hit. With increased automation, and an overall rise in the skill level of
operatives, the gap between highly skilled operatives and first line supervisors
is now reduced considerably.”
On the leadership role in the organisation, it said “a genuine leader has a
deep-seated compassion for the people he leads. It is his responsibility to
create a team and nurture team spirit. If the leader is only a sweet talker but
crooked in action, no employee would feel like working in the organisation.”
The study said the increased practise of hiring employees on short contracts
is proving harmful not only to the organisations but also for the emotional
well being of people and society at large, adding “when the value of loyalty
has become a thing of the past, linking job security to performance and
increasing contract period should help”.
“It is management’s responsibility to make the employees feel that they are
wanted by the organisation and create a work atmosphere in which emotional
ownership can thrive”, it said emphasising on the need to change mindsets
of both leaders and employees.
Adapted from: http://www.business-standard.com/india/news/emotional-
ownership-key-to-keep-employees-motivated
1.4.1 Individual Motivation and Systems Performance

Motivation alone cannot result in performance. There must be ability on the part
of the worker, and the work structure must be conducive to motivation. The
work structure can be considered to be comprised of systems where systems
are collections of processes and resources and processes are defined as
grouped activities that take an input, add value to it and provide an output.

Accordingly, one of the prime functions of management is to design and improve

the work system with the right activities and the right resources at the right
times. To achieve the best performance from motivated employees, management
must provide a stable and consistent system that allows them to perform at a
high level.
A work system, where the worker is provided with the right and pleasant
work environment, is a great motivator for the workers. The right type of job, the
right tools to work with, good interaction with peers and superiors, fair system of
rewards and incentives are all tied to the desired work behaviour. Structure greatly
influences behaviour. For example, a person who casually throws away a
chewing gum wrapper on the roadside in New York City would not dare to do so
in Singapore. Similarly a person who is used to bribing a police officer to get
away with a crime in India would not behave in that manner in America where
the system strictly punishes the bribe taker and the bribe giver. Accordingly, a
well designed and enforceable system has great influence on motivation and
positive behaviour, Deming, a well known quality oriented thinker, estimated that
94 per cent of organizational problems are caused by faulty systems in one
form or another. The relationship between performance and motivation with inputs
from ability and system can be shown as follows:
Motivation
Ability System
Performance
Figure 1.11 Relationship between Performance and Motivation
1.4.2 Factors of Job Satisfaction

Many research studies have been conducted on the subject of job satisfaction
and employee morale in order to establish some of the causes that result in job
satisfaction. These studies have revealed that certain variables are consistently
correlated with job satisfaction. Some of these factors have been grouped into
four identifiable, discrete categories, such as:
1. Organizational factors
2. Work environment factors

3. Factors related to work itself

4. Personal factors
These factors are explained in more detail as follows:
1. Oganizational factors
Some of the organizational factors as sources of job satisfaction are as follows:
• Salaries and wages: Salaries and wages play a significant role in
determining the level of job satisfaction irrespective of the level of position
that an employee holds in the organization. Studies conducted by Locke
indicate that pay is the primary determinant of job satisfaction, especially
when it is perceived as fair and equitable compared to others and relative
to employee’s own efforts and contributions. Pay is also the prime mover
since it satisfies the first level needs of Maslow’s model of motivation. It is
also considered a symbol of achievement since higher pay reflects a
higher degree of contribution towards organizational operations and
welfare.
• Promotions: Promotional opportunities are another source of job
satisfaction, especially at higher level jobs, because a promotion indicates
an employee’s worth to the organization that is highly morale boosting. A
promotion also involves a positive change in higher salary, less supervision,
more challenging work assignments, increased responsibility and decision-
making freedom. Promotion is a source of job satisfaction for executives
more than for lower level jobs such as secretaries because executive
promotion brings with it far better benefits than in the case of lower level
administrative jobs.
• Company policies: Organizational structure and organization policies play
an important role in establishing an environment that is conducive to job
satisfaction. A highly authoritative and autocratic structure may produce
more resentment on the part of employees who may want more open and
democratic style of leadership. Organization policies usually govern
employee behaviour, and depending upon how strict or liberal these policies
are, can generate positive or negative feelings about the organization.
Liberal and fair policies are usually associated with job satisfaction.
Employees who feel unduly constrained because of strict policies or feel
that they are not treated fairly, would not be happy with the job.

2. Work environment factors

The work environment factors include the following:
• Supervisory style: It has been established that wherever the supervisors
are friendly and supportive of workers, there is job satisfaction. Conversely,
it can also be established that satisfied employees themselves create a
social environment at work where supervisors are more considerate
towards such employees. In any case, a close relationship between the
supervisor and the worker and worker participation in decision making
about such issues that directly concern the worker, are highly conducive
to job satisfaction.
• Work group: The group size and the quality of interpersonal relations
within the group play a significant role in worker happiness. Larger group
sizes usually lead to lower level of job satisfaction due to the fact that
large groups lead to poor interpersonal communication, reduced feeling
of togetherness and difficulty in getting to know each other more closely.
Smaller groups provide greater opportunity for building mutual trust and
understanding.
Work group also serves as a social, moral and emotional support
system for the employee. If the people in the group exhibit similar societal
characteristics, such as attitudes and beliefs, they tend to be drawn closer
to each other resulting in a work climate that improves job satisfaction.
• Working conditions: Good working conditions are highly desirable
because they lead to greater physical comfort. People put a high premium
on a clean and orderly work station and factors such as heating, air
conditioning, humidity, lighting, noise level, availability of adequate tools
and equipment and desirable work schedules, all contribute to higher level
of satisfaction. While such desirable conditions are taken for granted, and
may not contribute heavily towards job satisfaction, poor working conditions
become a source of job dissatisfaction, simply because they lead to
physical discomfort and physical danger.
3. Factors related to work itself
By and large, the work itself plays a major role in determining the level of job
satisfaction. The job content has two aspects. One is the ‘job scope’ that involves
the amount of responsibility, work pace and the feedback provided. The higher
the level of these factors, the higher the job scope and job satisfaction. The

second aspect is variety. It has been found that a moderate amount of variety is
most effective. Excessive variety produces confusion and stress and too little
variety causes monotony and fatigue that are dissatisfiers. Additionally, lack of
autonomy and freedom over work methods and work pace creates a sense of
helplessness. It is not very motivating for the employees to have their every step
and every action determined by their supervisor. It is highly dehumanizing and
causes dissatisfaction.
Role ambiguity and role conflict are to be avoided because employees
feel very unhappy if they do not know exactly what their task is and what is
expected of them.
4. Personal factors
While the external environment within the organization and the nature of the job
are important determinants of job satisfaction, personal attributes of individual
employees play a very important role as to whether they are happy at the job or
not. People with generally negative attitudes about life and pessimists always
complain about everything including the job. No matter how good the job is,
such people always find something wrong with it to complain about.
Age, seniority and tenure have considerable influence on job satisfaction,
It is expected that as people grow older, they usually come up the corporate
ladder with the passage of time and move into more challenging and responsible
positions. Meeting these challenges and succeeding is a high source of
satisfaction. Even if they do not move up in their position, it is equally natural to
assume that with age, people become more mature and realistic and less
idealistic so that they are willing to accept available resources and rewards and
be satisfied about the situation. Employees who do not move up at all with time
are more likely to be dissatisfied with their jobs.
Tenure assures job security, and the feeling of job security is highly
satisfactory to employees. This means that they can plan for the future without
fear of losing the job. Thus employees with tenure are expected to be highly
satisfied with their jobs.
Equally important is the intrinsic source of satisfaction that comes from
within the person and is a function of the employee’s personality. Some of the
personality traits that are directly related to increased job satisfaction are self
assurance, self-esteem, maturity, decisiveness, sense of autonomy, challenge
and responsibility. It can be concluded that the higher the person is on Maslow’s
model of hierarchical needs, the higher is the job satisfaction.


(a) ——— is a dynamic force which is capable of inspiring people for
performing some actions or motions.
(b) Motivation and ability interact in a —— manner to yield performance.
(a) It has been found out that people who are motivated generally remain
tension free.
(b) Motivation alone cannot result in performance.
1.5 Communication in an Organization
Effective management depends upon effective communication to achieve

organizational goals. Since managers work with and through other people, all
their policies, rules, procedures and directives must pass through some kind of
communication channels to reach all employees. Also, there must be a channel
of communication for feedback. Accordingly some of the objectives of effective
communication are as follows:
• To develop information and understanding among all workers, which is
necessary for group effort
• To foster an attitude necessary for motivation, cooperation and job
satisfaction
• To discourage the spread of misinformation, ambiguity and rumours, which
can cause conflict and tension
• To prepare workers for a change in methods of operations by giving them
necessary information in advance
• To encourage subordinates to supply ideas and suggestions for improving
upon the product or work environment and taking these suggestions
seriously
• To improve labour–management relations by keeping the communication
channels open and accessible

• To encourage social relations among workers by encouraging inter-

communication. This would satisfy the basic human need for a sense of
belonging and friendship.
Exhibit 1.3
Afras Academy for Business Communication (AABC)

Former Under Secretary General of the United Nations Shashi Tharoor has
launched Afras Academy for Business Communication (AABC) at the
Thiruvananthapuram Technopark campus. Tharoor said here today that
AABC would strive to provide state-of-the-art instruction to prepare India’s
future leaders with global business communication skills. It will provide a
world-class facility to Kerala that will equip the state to be able to function
more effectively in the globalised world in the 21st century. AABC aims to
help people to speak English with confidence to communicate effectively to
develop presentation skills in today’s competitive world.
Afras Academy for Business Communication (AABC)
Former Under Secretary General of the United Nations Shashi Tharoor has
announced the official launch of his Afras Academy for Business
Communication (AABC). The academy will get rolling on May 14 at the
Thiruvananthapuram Technopark campus. The academy is the fulfillment
of the promise Tharoor made some time back during his visit to
Thiruvananthapuram to set up a finishing school of international standards
for professionals. Tharoor said here today that AABC would strive to provide
state-of-the-art instruction to prepare India’s future leaders with global
business communication skills. Tharoor, chairman, Afras Ventures, told the
media that the attempt is to try and provide a world-class facility to Kerala
that will equip the state to be able to function more effectively in the globalised
world in the 21st century “AABC aims to help people to speak English with
confidence to communicate effectively to develop presentation skills in
today’s competitive world.”
1.5.1 Communication Process Model

Before communication can take place, an idea in the form of a message or
information is needed for the purpose of conveying it to the intended receiver of
such a message or information. The message is converted into a symbolic
form and passed along some channel to the receiver who translates the message

into a meaning. Thus the transference of the meaning has taken place from the
sender to the receiver.
The communication model, described as a series of steps consists of
the following components, as shown in Figure 1.12.
Figure 1.12 Steps in a Communication Model

Let us discuss in brief the various steps in developing a communication model.
• Source: This is the source of information or the initiator of communication.
This source or the message sender may want to communicate his ideas,
needs, intentions or other pieces of information.
• Encoding: Encoding is the process inside the human mind or brain in the
form of motor skills, muscle system or sensory skills that encode the
ideas to be conveyed into a series of symbols or gestures or some other
format of expression.
• Message: The message is the physical form of the thought which can be
experienced and understood by one or more senses of the receiver. It
could be in such forms that require either hearing or reading or some
other forms of physical gestures.
• Channel: It is a vehicle used in the transmission of a message. It is a
medium carrier which bridges the gap between the sender and the receiver.
It may be a face to face conversation, a telephone conversation, in written
form or through any other form of physical gestures.
• Reception of the message: The message is received by the person for
whom it was meant and he becomes the receiver of the message.
• Decoding: Decoding is done in the same manner as encoding, by motor
skills, muscle system and sensory skills and the receiver decodes the
message for the purpose of interpreting and understanding the meaning
of the message. The more the sender’s intended message matches the
receiver’s understanding, the more effective the communication is.
• Action: This involves response from the receiver who has received and
accepted the communicated message. This may involve compliance with
an instruction and acting upon it or simply filing of the message for future
references.

• Feedback: A feedback determines whether the message was received

and clearly understood and the required action taken.
The feedback to the source completes the process of communication.
1.5.2 Barriers to Effective Communication

Despite its apparent simplicity, the communication process rarely operates
flawlessly. The communication must be interpreted and understood in the same
way as it was meant to be sent by the sender, otherwise it will not achieve the
desired result and a communication breakdown will occur. There are certain
external roadblocks to effective communication such as poor timing of
communication, poor choice of the channel of communication of information,
incomplete, inadequate or unclear information, network breakdown and so on,
which can affect the proper reception of the communication. In addition, there
are personal factors which may cause the interpretation of the communication
differently than it was intended by the sender. The communication may be
received in a way in which the receiver wants to receive, depending upon the
stimuli present, emotions or prejudices for or against a concept or ideology or
personal conflicts between the sender and the receiver, so that instead of
interpreting the content of the communication, the intent of the sender may be
interpreted. According to Rogers and Roethlisberger, the communication
effectiveness is always influenced by ‘our very natural tendency to judge, to
evaluate, to approve or disapprove the statement of the other person or other
group’. This evaluation tendency may alter the meaning of the entire
communication. Accordingly, management should not only attempt to eliminate
all external barriers so that the communication is clear and to the point, but also
try to understand the perceptions and the attitudes of the receiver. Only then
can the communication have its maximum effect.
1.5.3 Improving Communication Effectiveness

It is very important for management to recognize and overcome barriers to
effective communication for operational optimization. This would involve
diagnosing and analyzing situations, designing proper messages, selecting
appropriate channels for communicating these messages, assisting receivers
of messages in correct decoding and interpretation of the messages and
providing for an efficient and effective feedback system. Some of the steps that
can be taken in this respect are as follows:

Encouraging feedback and upward communication

Feedback helps to reduce misunderstandings. The information is transferred
more accurately when the receiver is given the opportunity to ask for clarifications
and answers to any questions about the message. Two-way communication,
even though more time consuming, avoids distrust and leads to trust and
openness which builds a healthy relationship between the sender and the receiver
and contributes to effective communication. Upward communication is
strengthened by keeping an open door policy and providing opportunities for
workers to give suggestions which should be taken seriously by the management
by acknowledging them and taking appropriate action.
Improving listening skills
According to Stuart Chase, ‘listening is the other half of talking,’ and is very
important part of the communication process. Listening is an active mental
process and goes beyond simply hearing. Good listening habits lead to better
understanding and good relationships with each other. Listening is recognition
that the receiver has responsibility in the communication process. Some of the
guidelines for effective listening are as follows:
• Listening requires full attention to the speaker. Do not let your mind wander
or be preoccupied with something else, otherwise you would not be able
to grasp the meaning of the message in its entirety.
• The language used, tone of the voice and emotions should receive proper
attention. Listen for feelings in the message content and respond positively
to these feelings.
• Ask questions to clarify any points that you do not understand clearly and
reflect back to the speaker your understanding of what has been said.
• Make sure that there are no outside interruptions and interference during
the course of conversation.
• Do not judge the importance of the message due to your previous dealings
and experiences with the sender or due to your perceptions about him,
positive or negative.
• Do not jump to conclusions before the message is over and is clearly
understood.
• Summarize and restate the message after it is over to doubly make sure
about the content and the intent of the message.

Developing writing skills

Clearly written messages can help avoid semantic and perception barriers. A
well written communication eliminates the possibility of misunderstanding and
misinterpretation. When writing messages, it would be wise to adopt the K.I.S.S.
principle which means ‘Keep It Short and Simple’, thus making the meaning as
clear as possible so that it accomplishes the desired purpose. Some helpful
hints in written communication are suggested by Robert Degise as follows:
• Keep words simple: This will reduce your thoughts to essentials and the
message will be easier to understand by the receiver. The message will
be lost if the words are complex and do not lend to clear single meaning.
• Do not be bogged down by rules of composition: While the rules of
grammar and composition must be respected, they should not take priority
over the ultimate purpose of the communication.
• Write concisely: Use as few words as possible. Do not be brief at the
cost of completeness, but express your thoughts, opinions and ideas in
the fewest number of words possible.
• Be specific: Vagueness destroys accuracy which leads to
misunderstanding of the meaning of the intent of the message. Accordingly,
be specific and to the point.
Avoiding credibility gaps
Communication is a continuous process and the goal of communication is
complete and accurate understanding of the message as well as the creation of
trust among all members of the organization. Accordingly, management must
be sincere and should earn the trust of the subordinates. Management should
not only be sensitive to the needs and feelings of workers but also its promises
should be supported by actions. The word of management should be as good
as a bond. Only then would an atmosphere of congeniality accrue, which would
enhance the communication process. According to studies conducted by J.
Luft, openness and an atmosphere of trust builds healthy relationships and closes
credibility gaps, thus contributing to communication effectiveness and
enhancement.


(a) ———- is the process inside the human mind or brain in the form of
motor skills, muscle system or sensory skills that encode the ideas
to be conveyed into a series of symbols or gestures or some other
format of expression.
(b) ———— is a vehicle used in the transmission of a message. It is a
medium carrier which bridges the gap between the sender and the
receiver.
(a) The communication process rarely operates flawlessly.
(b) Encoding and decoding are done in completely different manners.
1.6 Summary
Let us recapitulate the important concepts discussed in this unit:

• According to Sheldon, ‘Organization is the process of so combining the
work, which individuals or groups have to perform with the facilities
necessary for its execution, that the duties so performed provide the best
channels for the efficient, systematic, positive and coordinated application
of the available effort.’
• Once the goals and objectives of the organization have been established,
the activities required to achieve these objectives are identified. These
activities are broken down into sub-activities as far down the hierarchy as
possible so that each individual knows as to what part of the activity he is
responsible for.
• The type of structure of an organization has considerable impact on the
motivation and productivity of employees. In a good organizational
structure, each person is assigned a role, responsibility and necessary
authority. Each person is expected to coordinate his activities with others
in order to achieve the common organizational goals.
• The type of organizational structure is a function of the macro-environment
of the business, the size of the organization, technology in use and
philosophy and strategy of the organization itself.

• Various types of organizational structures include line structure that is a

very simple hierarchical type where all people are directly involved with
the production of goods and services or it could be line and staff where
specialists are added to assist the line, without the authority to enforce its
recommendations.
• The functional structure of an organization permits a specialist in a given
area to enforce his directive within the clearly defined scope of his authority.
• The divisional organization is differentiated by products, by customers, by
geography or by working shifts.
• Organization structures can also be based on a given project. The project
can be temporary in nature or it can be more permanent in nature for
which a matrix type of organization is more suitable. A matrix structure is
a combination and interaction of project and functional structures in which
cross-functional teams of specialists are used.
• An organizational system involves creating a structure by which various
parts of an organization are tied together in a coordinated manner. It
illustrates the relationships among various levels of the hierarchy within
the organization as well as the horizontal relationships among various
aspects of the organizational operations.
• Salaries and wages play a significant role in determining the level of job
satisfaction irrespective of the level of position that an employee holds in
the organization.
• Promotion indicates an employee’s worth to the organization that is highly
morale boosting. It also involves a positive change in higher salary, less
supervision, more challenging work assignments, increased responsibility
and decision-making freedom
• While the external environment within the organization and the nature of
the job are important determinants of job satisfaction, personal attributes
of individual employees play a very important role as to whether they are
happy at the job or not.
• Before communication can take place, an idea in the form of a message
or information is needed for the purpose of conveying it to the intended
receiver of such a message or information. The message is converted
into a symbolic form and passed along some channel to the receiver who
translates the message into a meaning.

1.7 Glossary
• Organization: Process of so combining the work that the duties so

performed provide the best channels for the efficient, systematic, positive
and coordinated application of the available effort
• Line organization: Form of organization in which the authority is
embedded in the hierarchical structure flowing in a direct line from the top
of the managerial hierarchy down to different levels of managers and
subordinates and further down to the operative levels of workers
• Line and staff organization: Form of organization in which the functional
specialists are added to the line, thus giving the line the advantages of
specialists
• Divisional organization: Form of organization which involves grouping
of people or activities with similar characteristics into a single department
or unit
• Matrix organization: Form of organization in which the functional and
project lines of authority are superimposed with each other and are shared
by both functional and project managers
• Organizational system: System that involves arrangement of activities
and assignment of personnel to these activities in order to achieve the
organizational goals
• Motivation: An unsatisfied need which creates a state of tension or
disequilibrium, causing the individual to move in a goal directed pattern
towards restoring a state of equilibrium, by satisfying the need
• Encoding: Process inside the human mind or brain in the form of motor
skills, muscle system or sensory skills that encode the ideas to be
conveyed into a series of symbols or gestures or some other format of
expression
• Message: Physical form of the thought which can be experienced and
understood by one or more senses of the receiver
• Channel: A medium carrier which bridges the gap between the sender
and the receiver

1. Discuss the three aspects of organizations.

2. Why does an organization need a good structure? Discuss the steps
involved in creating a good organizational structure.
3. List and describe the various steps of organizing.
4. Identify the organizational factors of job satisfaction.
5. How do personal factors motivate an employee?
6. Discuss the various steps involved in a communication process model.
1.9 Answers
Answers to Self-Assessment Questions
1. (a) Gary Johns; (b) Group effort

2. (a) True; (b) False
3. (a) Organizing; (b) First
4. (a) True; (b) True
5. (a) Motivation; (b) Multiplicative
6. (a) False; (b) True
7. (a) Encoding; (b) Channel
Answers to Terminal Questions
1. Refer to Section 1.2

2. Refer to Section 1.2.2

1. Johns, Gary. Organizational Behaviour: Understanding Life at Work.

New York: Scott Foresman and Company.
2. Chandan, J.S. Organizational Behaviour. Delhi: Vikas Publishing House
Pvt. Ltd.

Unit 2 Newspaper: Organization
and Management
Structure
2.1 Introduction
Objectives
2.2 Organizational Structure of Newspapers
2.3 Forms of Ownership
2.4 Departmentalization
2.5 Registration of a Newspaper
2.6 Press Council of India
2.7 Newspaper Management
2.8 Summary
2.9 Glossary
2.11 Answers
2.1 Introduction
In the previous unit, you learnt what an organization is and how it works. You
also studied the role played by motivation and communication in the overall
working of an organization. In this unit, you will learn about the organization and
management of newspapers, an important form of print media. The evolution of
print media and the various types of media reporting are discussed in Unit 4.
Though newspapers provide a valuable public service, they are, first and
foremost, business enterprises. A newspaper has to routinely cover several
institutions and locations. Thus, its organizational structure is complex. The
chief executive in charge of a newspaper operation is called a publisher. He/she
directs all of the various departments at the paper, including business offices
that deal with advertising, circulation and marketing. The editor is accountable
for all of the editorial issues of the newspaper. He/she is also responsible for the
budgets and money spent by the editorial side of the newspaper. In smaller
papers, the publisher and editor is usually the same person.
Although the principles of management are universal, they need to be
modified to suit the needs and requirement of different situation in the newspaper
organization. Management principles are the guidelines and ground rules to
manage an organization successfully. Thus, the management of a newspaper
organization should be such that it is able to guide the managers of the

newspaper organization to take sound managerial decisions. In India, the Press
Council of India (PCI) is a statutory, quasi-judicial body which acts as a watchdog
of the press. It adjudicates the complaints against and by the press for violation
of ethics and for violation of the freedom of the press respectively.
Objectives
• Illustrate the organizational structure of a newspaper
• List the various departments of a newspaper
• Explain the registration process of a newspaper
• State the significance of the Press Council of India
• Manage a newspaper
2.2 Organizational Structure of Newspapers
The organizational structure of a newspaper is determined by various factors. A

newspaper is organized on the basis of:
• Frequency of publication: On the basis of frequency of publication,
newspapers may be categorized as dailies or weeklies. A paper has to
appear at least five times in a week to become a daily.
• Market size: On the basis of market size, newspapers may be categorized
as national, large, medium, or small. A national newspaper covers the
whole nation and not a particular region or state. Large metropolitan dailies
are papers in a large city.
Medium-sized dailies cover a population of about 100,000–500,000. Small
town dailies cover the incidents of small towns.
Most newspapers have reorganized themselves to be able to face the
challenges of the market. As a result, the core processes of newspaper firms
have been modified. Their internal boundaries have been reduced (through
integration) , while outsourcing has reduced their external boundaries.
Generally, the editorial office of a newspaper is organized as shown in
Figure 2.1.

Publisher
Editor Editorial page

editor
Editorial writers
Managing
editor
City editor
Design editor
Assistant city State/reg editor Business editor Sports editor Lifestyles editor Layout editors
editor
Assistant Assistant Assistant Assistant
Reporters State/reg editor business editor sports editor lifestyles editor
Reporters Reporters Reporters Reporters
Chief copy editor Photo editor Graphics editor
Copyeditors Photographers Graphics

reporters/artists
Figure 2.1 Editorial Organization of a Newspaper
Let us discuss the functions of important functionaries of a newspaper.

• Publisher: He/she is responsible for all the operations of the newspaper—
editorial and business.
• Editor: He/she is responsible for all of the editorial issues of the newspaper.
• Managing editor: He/she is in charge of day-to-day production of the
newspaper.
• City editor: Also sometimes called the metro editor, he/she is responsible
for the news coverage of the area in which the newspaper is located.
• Reporters: They are assigned to all the sections of the newspaper. They
gather information about the incidents the newspaper chooses to cover.
2.2.1 Integration
Traditionally, newspapers separate the newsroom from the rest of the
organization. In the modern age, the practice has led to a distinction between
the traditional newsroom and the more recent online newsroom. However, with
more and more people consuming news on the Internet, it is developing into an
advertising platform. Therefore, a need to restructure costs arises.

As a result, newspaper managers have had to reconsider the separation

between online and print newsrooms. In recent years, convergence in the
newsroom has been focused on with an aim to reach a wider audience and also
help managers cut costs by increasing productivity.
‘Convergence’ carries several meanings. Cultural convergence refers to
the development of content across many channels. In addition, there is
technological convergence, that is, convergence that refers to content digitization.
There is economic convergence, that is, convergence referring to the integration
of the media industry. A multitasking approach to content consumption is referred
to as social or organic convergence. Other than this, there is the ‘global village’
effect wherein content is influenced by trends coming from other corners of the
world (Jenkins, 2001). The notion of cultural convergence provides a better
understanding of what takes place inside media organizations. This type of
convergence can already been seen in newspapers that depart from the traditional
pattern to make their content available on the Web, e-mail and even mobile
phones.
Through cultural convergence, especially in the newsroom, newspapers
are now able to reach their readers anywhere and at any time. Needless to say,
that this has increased competition and opened new markets. The changes in
terms of presentation, topics and themes are aimed at not only attracting new
readers but also retaining current ones.
While cultural convergence takes place in the newsroom, a different type
of integration is required between the managers and the creative team. Gone
are the days when managers who meddled with newsroom affairs were looked
down upon. Now, cooperation is the key word. In fact, interaction between content
and advertising makes the media business unique.
The wall between journalists and managers in the different departments
is falling. On the other hand, media firms are trying to cooperate with other
business units in the same media holding or even with other firms in order to
sell advertising more effectively.
New types of organizational structures, that look at integrating various
units are aimed at flexibility and easy knowledge transfer. Fewer walls or barriers
will lead to improved integration, coordination and communication within the
organization.

Fill in the blanks with appropriate words.

1. A newspaper organization can be structured on the basis of ___________
of publication and ____________of the market.
2. The editorial team reports to the ____________ .
3. ___________ convergence refers to content digitization.
4. Fewer barriers result in improved integration, ____________ and
communication within the organization.
2.3 Forms of Ownership
Across the world, almost 60 per cent newspapers are owned by private families.
3 per cent are traded publicly and 4 per cent are owned by employees. The
remaining are owned by the government. In the US, publicly traded organizations
own 40 per cent of all newspapers, but the privately owned ones are most
predominant.
2.3.1 Private Ownership

Private ownership exists when the rights of a firm are held with individuals,
partners, families or privately held corporations. The owners have control over
the enterprise; they are either managers or make sure they closely monitor and
direct the actions and behaviours of the managers they recruit. Most newspapers
were founded by entrepreneurs; and their descendants continue to own or
manage them.
People who wish to own newspapers today are usually those who earn
profits or wealth from other industries. They usually have personal ties with the
geographic areas where the newspapers are published. They are also people
who are involved in philanthropic activities in those locations and nurture political
connections. The new private owners have to shoulder high debts that may
become financial burdens for the firms and managers. This is because the debt
adds significant expenses that can be covered only by the profits generated by
the enterprise.
More and more private equity firms are creating privately owned firms. In
many cases, this happens because traditional capital sources are not willing to
provide capital. Private equity is a rather expensive form of finance. It tends to

place a lot of financial burden on the acquired newspaper. Private equity firms
often become interested in acquiring a media company whenever there is extra
cash flow. The managers aim to expand the company even without investing in
the most profitable projects as their compensations relate to the firm’s future
sales price. Therefore, a leveraged buyout or LBO as this is commonly called
occurs as the free cash flow may be used to cover the debt due to the acquisition.
An LBO results in reduction of agency costs that allows the managers to align
with the owners.
When individuals seek to own newspapers, they see the newspapers as
platforms for expressing their personal opinions.
Family-owned newspapers are another form of private ownership.
However, this form too is not bereft of disadvantages. There are issues related
to succession as a result of either lack of offspring or the lack of interest in
existing offspring. Also, any family-owned media would be a lot more conservative
in the investment and development of their firms. Ultimately, family-owned media
are also plagued by complicated tax-related issues. In India, the Times of India
and the Hindu are examples of family-owned newspapers.
2.3.2 Publicly Traded Ownership

Publicly traded firms get their capital through sale of ownership shares on the
stock market. With the size of newspaper organizations growing through
acquisitions and mergers, there is more need for capital. Companies are being
forced to obtain new capital from stock markets. The final goal of investors is
not to purchase shares. Their primary goal is to obtain effective returns on their
investments and growth in the firms where they have placed capital. When
newspaper managers are unable to use the capital effectively, investors get
discouraged and the share prices of newspaper firms decline. Dispersal of
ownership via share trading results in reduction of the direct influence of owners.
This occurs because control is separated from ownership and new control
mechanisms are created. Also, it is seen that managers who are hired or recruited
are more careful about taking risks than private owners. This checks innovation
and hampers change.
Individual and family owners of local newspapers often face community
pressure to produce content that addresses community issues. In trying to
achieve greater profits in the short term, corporate owners may be forced to
compromise on quality, coverage and number of journalists.

Investors
Investors provide most of the capital that is available in stock markets. Investors
may be of various categories as follows:
(i) Individual investors
(ii) Insiders
(iii) Institutional investors
(i) Individual investors: These investors invest on their own.
(ii) Insiders: These are directors, officers and managers of organizations
that invest in a firm
(iii) Institutional investors: These include banks, pension funds and insurance
firms that manage others’ funds.
Some family-owned newspapers seek benefits of additional capital in the
stock market. However, they try to limit financial burden through classified stock
that provide majority voting rights to the family. This mechanism has not provided
complete protection to the firms from investors’ pressure.
One advantage that public ownership has is that it has increased access
to capital. Therefore, more stability is provided to firms. However, the following
repercussions have to be faced:
(i) Significant financial pressures
(ii) Separation of ownership from management
(iii) Increase in organizational size and complexity
Public ownership can be advantageous or disadvantageous depending
on the manner in which corporate values are pursued or ownership is exercised.
2.3.3 Charitable Ownership

Also referred to as foundation ownership or not-for-profit ownership, such
ownership by trusts is often advocated by those who do not approve of the profit
motivation of corporate and private owners. However, not all such papers ignore
short-term profit and promote values. Depending on the will of their managers
and the availability of resources, these papers may or not may pursue quality. It
is true that not-for-profit ownership does not really guarantee journalistic quality
or excellence.

A charity may desire high income or dividends from the newspaper it owns
so that it is able to finance its other social or cultural activities. Also, nonprofit
ownership forms face several legal issues related to taxes
The main problem faced by nonprofit ownership is that not all traditional
lending institutions are willing to provide loans to them. This leaves them no
other option but to seek donations or self-generate capital, place capital in
endowments or reserve funds or reinvest. Several nonprofits fail when they are
unable to manage their finances properly.
Most non-profit newspapers are non-dailies. If they are owned by nonprofit
entities, then they are run mainly as profit-making units for those specific entities.
Some nonprofit newspapers are published by groups with special interests
or by religious communities or ethnic groups. However, very few are general
circulation newspapers; even those are accused of being biased.
2.3.4 Employee Ownership

Employee ownership is often seen as an alternative to private and corporate
ownership. This form is particularly supported by labour activists and those who
oppose the excesses of capitalism. In such a system, all the shares in the firm
are owned by employees. Stock ownership plans allow employees to participate.
Employee ownership helps to provide employees with power and editorial
independence. Naturally, the labour relationship with the firm also improves.
Supporters of employee participation in organizational decision-making
realize that it cannot really help improve content or journalistic quality/
performance. Employee participation cannot really ensure that readers will be
exposed to more or better ideas as a result of greater involvement of employees
in decision-making.
Some opine that sharing of information and increased involvement in
employee-owned organizations does not always make an efficient firm. It has
been argued that employee ownership leads to creation of group rewards that
may have negative influence on individual incentives and produce issues related
to effective monitoring by employee owners. The personal interests of employees
and their desire to benefit financially can force them to sell their employee-owned
company/newspaper to other types of owners.
Although many all the forms of ownership discussed in this section exist
and are affected by economic and behavioural forces, the fact is that there is no
perfect form of newspaper ownership.

The relevant facts that need to be considered regarding ownership and

control include:
(i) The level of separation between ownership and control
(ii) Agency costs for performance and decision monitoring
(iii) Asymmetry of information between owners and managers
(iv) Capital acquiring potential/ability
(v) Capital generating ability
(vi) Profit incentive
(vii) Value growth incentive
(viii) Long-term sustainability of the firm
Capital is accompanied by conditions that direct and constrain choices in
firms. In private ownership, those who provide the capital exercise a great degree
of control. In publicly-owned organizations, those who generate the capital often
have limited control. However, those who manage the collective capital may
have significant influence on the organization. In foundation ownership, those
who contribute capital tend to have a lesser degree of direct control. In employee
ownership, capital contributed or distributed to employees may or may not cover
control over the firm.
Activity 1
Make a list of the well known newspapers across India. Write the form of
ownership against each.
5. Match the following:

(a) Private Ownership (i) Traditional lending institutions do
not give loans.
(b) Publicly Traded Ownership (ii) Owners have control over the
newspaper
(c) Charitable ownership (iii) Get capital by selling ownership
shares
(d) Employee ownership (iv) Provides employees with power
and editorial independence

2.4 Departmentalization
Newspaper organization involves many departments, each of which performs

its own tasks with certain staff taking on multiple jobs.
In a newspaper organization, functions are divided amongst employees in
a logical manner. Those with related functions sit together to form a single working
unit, pod or department.
The important departments in a newspaper organization and their main
functions are listed as follows:
1. Editorial Department
Headed by the editor, this department is where the following activities take place:
• News is collected
• News and features are selected
• News and features are edited
• News is interpreted
The overall responsibility of the working of this department rests with the
editor of the newspaper. However, he or she needs the assistance of the chief
correspondent (and many types of correspondents who collect and supply news),
resident editors, managing editors, deputy editors, assistant editors, news
editors, feature writers and reviewers. Several types of correspondents get busy
collecting and supplying news to
2. Advertising Department
The primary revenue source for a newspaper is of course advertisement.
Therefore, one of the most important activities in a newspaper organization is
that of collecting and publishing advertisements. The Advertising department
comprising different sections is responsible for this function. There are different
sections looking after local advertisements,classified advertisements,general/
national advertisements,legal advertisements and copy preparation.
3. Circulation Department
A newspaper cannot survive without circulation. Therefore, the circulation
department becomes the most important department of a newspaper
organization. This department is responsible for newspaper sales, newspaper
delivery and subscription collection.

4. Printing Department
This department is responsible for printing the newspaper. It looks after everything
related to printing including the installation and maintenance of machines, layout
of the press, composition, processing, loading and scheduling.
5. Administrative Department
This department is responsible for the general administrative work related to
personnel, recruitment, training, promotion, work allotment, leave record
maintenance, liaison with government departments, general facilities and all
kinds of assistance to other departments. If there is no separate legal department,
even tasks related to legal issues are handled by the administrative department.
6. Accounting Department
Quite evidently, this department looks after all the accounting work like maintaining
books of accounts, preparing balance sheet and other financial statements,
payment, receipt, preparation of budget, financial planning, cost control etc.
7. Stores Department
It is responsible for storing the newsprint, which is the raw material required to
print a newspaper. In addition, it also stores all other material required.
8. Other Departments
The larger newspapers also maintain separate departments to handle issues
related to the personnel, legal, public relations and data processing.
The personnel department handles manpower planning , recruitment, training,
promotion, compensation, employee welfare, appraisals, personnel research,
retirement and HR policy formulations.
The public relations department plays the important role of promoting the
newspaper in the face of stiff competition.
Most big dailies today also have a data processing department comprising
a data processing manager, computer supervisors, computer operators, key
punch supervisor, programmers, systems analysts and control clerks.
6. Fill in the blanks with appropriate words.

(i) The editorial department is headed by the _________ of the
newspaper.
(ii) The _________ department is responsible for newspaper sales.

(iii) The ______________ department takes care of the composition and

scheduling.
(iv) The _______________ department handles work pertaining to
personnel, recruitment, training and liaison with government
departments.
(v) The stores department is responsible for storing _________.
2.5 Registration of a Newspaper
Printing and publishing of newspapers and periodicals within India are governed
by the Press and Registration of Books Act, 1867 and the Registration of
Newspapers (Central) Rules, 1956.
According to the Act, no newspaper or periodical should bear a title which
is the same or similar to any other newspaper or periodical already being
published, either in the same language or in the same State, unless the latter is
also owned by the same person.
In order to ensure compliance of this condition, the Government of India
has appointed the Registrar of Newspapers, also called the Press Registrar,
who maintains a register of newspapers and periodicals published in India.
The Office of the Registrar of Newspapers for India is headquartered in
New Delhi, and has three regional offices at Calcutta, Mumbai and Chennai to
cater to the needs of publishers in all corners of the country. The Press Registrar
is assisted by a Deputy Press Registrar and four Assistant Press Registrars
(one each at the headquarters and the regional offices). There is also a Senior
Circulation Officer and five Circulation Officers two at headquarters and one
each in the regional offices to assist the Press Registrar in assessing the
circulation claims of newspapers.
7. State whether true or false.

(i) According to the Press and Registration of Books Act, 1867, no
newspaper or periodical should bear a title which is the same or
similar to any other newspaper or periodical already being published
either in the same language or in the same State.

(ii) The Government of India appointed the Chief of Newspapers to

maintain a register of newspapers and periodicals published in India.
(iii) The Press Registrar is assisted by a Deputy Press Registrar and
four Assistant Press Registrars.
2.6 Press Council of India
Press Council is a mechanism for the Press to regulate itself. The Council
firmly believes that in a democratic society, the press needs to be free as well
as responsible.
If the Press is to function effectively as the watchdog of public interest, it
must have a secure freedom of expression, unfettered and unhindered by any
authority, organised bodies or individuals. But, this claim to press freedom has
legitimacy only if it is exercised with a due sense of responsibility. The Press
must, therefore, scrupulously adhere to accepted norms of journalistic ethics
and maintian high standards of professional conduct.
Where the norms are breached and the freedom is defiled by
unprofessional conduct, a way must exist to check and control it. But, control by
the Government or official authorities may prove destructive of this freedom.
Therefore, the best way is to let the peers of the profession, assisted by a few
discerning laymen to regulate it through a properly structured representative
impartial machinery. That is where the Press Council comes in.
A need for such a mechanism has been felt for a long time both by the
authorities as well as the Press itself all over the world, and a search for it
resulted in the setting up of the first Press Council known as the Court of Honour
for the Press in Sweden, way back in 1916. The idea gained quick acceptance
in other Scandinavian countries, and later in other parts of Europe, Canada,
Asia, Australia and New Zealand. Today, the Press Councils or similar other
media bodies are in place in more than forty-eight nations.
The basic concept of self-regulation in which the Press Councils and similar
media bodies across the world are founded, was articulated by Mahatma Gandhi,
who was an eminent journalist in his own right. According to him, the main aim
of a journalist should be service. The newspaper press is a great power. However,
just as crops are devastated by an unchained torrent of water that submerges
the country side, a pen that is uncontrolled only leads to destruction. If the control
is external, it is more dangerous than if there is no control at all. Control has to

be exercised from within in order to be effective. Pandit Jawaharlal Nehru always

warned that if press freedom is devoid of responsibility or exercised without
responsibility, the freedom will gradually vanish.
The First Press Commission (1954) came across in some section of the
Press, instances of yellow journalism of one type or another, scurrilous writing-
often directed against communities or groups, sensationalism, bias in
presentation of news and lack of responsibility in comment, indecency and
vulgarity and personal attacks on individuals. The Commission, however, pointed
out that the well-established newspapers had, on the whole maintained a high
standard of journalism. They had managed to avoid ‘cheap sensationalism and
unwarranted intrusion into private lives.’ However, it remarked that ‘whatever the
law relating to the Press may be, there would still be a large quantum of
objectionable journalism which, though not falling within the purview of the law,
would still require to be checked.’ It was of the view that the best way of maintaining
professional standards of journalism would be to bring into existence a body of
people principally connected with the industry whose responsibility it would be
to arbitrate on doubtful points and to censure anyone guilty of infraction of the
code of journalistic ethics.
The Commission recommended the setting up of a Press Council. With
the objective of:
(i) Safeguarding the freedom of the press
(ii) Ensuring on the part of the Press the maintenance of High standards
of public taste and fostering due sense of both the rights and
responsibilities of citizenship
(iii) Encouraging the growth of sense of responsibility and public service
among all those engaged in the profession of journalism.
The Commission, recommended the establishment of the Council on a
statutory basis on the ground that the Council should have legal authority to
make inquiries as otherwise each member, as well as the Council as a whole,
would be subject to the threat of legal action from those whom it sought to
punish by exposure.
The Commission said that the Council should consist of men who would
command general confidence and respect of the profession and should have
25 members excluding the Chairman. The Chairman was to be a person who
was or had been a Judge of the High Court and was to be nominated by the
Chief Justice of India.

Why was the Press Council of India Constituted?

The Press Council of India was first constituted on 4th July, 1966 as an
autonomous, statutory, quasi-judicial body, with Shri Justice J R Mudholkar, then
a Judge of the Supreme Court, as Chairman. The Press Council Act, 1965,
listed the following functions of the Council in furtherance of its objects :
• to help newspapers to maintain their independence;
• to build up a code of conduct for newspapers and journalists in accordance
with high professional standards;
• to ensure on the part of newspapers and journalists the maintenance of
high standards of public taste and foster a due sense of both the rights
and responsibilities of citizenship;
• to encourage the growth of a sense of responsibility and public service
among all those engaged in the profession of journalism;
• to keep under review any development likely to restrict the supply and
dissemination of news of public interest and importance;
• to keep under review such cases of assistance received by any newspaper
or news agency in India from foreign sources, as are referred to it by the
Central Government.
Provided that nothing in this clause shall preclude the Central Government
from dealing with any case of assistance received by a newspaper or news
agency in India from foreign sources in any other manner it thinks fit;
• to promote the establishment of such common service for the supply and
dissemination of news to newspapers as may, from time to time, appear
to it to be desirable;
• to provide facilities for the proper education and training of persons in the
profession of journalism;
• to promote a proper functional relationship among all classes of persons
engaged in the production or publication of newspapers;
• to study developments which may tend towards monopoly or concentration
of ownership of newspapers, including a study of the ownership or financial
structure of newspapers, and if necessary, to suggest remedies therefore;
• to promote technical or other research;
• to do such other acts as may be incidental or conducive to the discharge
of the above functions.

Press Council of 1979

The Council set up under the Act of 1965 functioned till December 1975. During
the Internal Emergency, the Act was repealed and the Council abolished w.e.f.
1/1/1976.
A fresh legislation providing for the establishment of the Council was
enacted in 1978 and the institution came to be reviewed in the year 1979 with
the very same object of preserving the freedom of the press and of maintaining
and improving the standards of Press in India. The present Council is a body
corporate having perpetual succession. It consists of a Chairman and 28 other
members. Of the 28 members, 13 represent the working journalists. Of whom
6 are to be editors of newspapers and remaining 7 are to be working journalists
other than editors. 6 are to be from among persons who own or carry on the
business of management of newspapers. One is to be from among the persons
who manage news agencies. Three are to be persons having special knowledge
or practical experience in respect of education and science, law and literature
and culture. The remaining five are to Members of Parliament: three from Lok
Sabha, and two from Rajya Sabha.
The new Act provides for selection of the Chairman by a Committee
consisting of the Chairman of the Rajya Sabha, the Speaker of Lok Sabha and a
person elected by the members of the Council from among themselves. The
twenty representatives of the Press are nominated by the associations of
aforesaid categories of the newspapers and news agencies notified for the
purpose by the Council in each category. One member each is nominated by
the University Grants Commission, the Bar Council of India and the Sahitya
Academy. Of the five Members of Parliament, three are nominated by the Speaker
of the Lok Sabha and two by the Chairman of the Rajya Sabha. The term of the
Chairman and the members of the Council is three years. A retiring member is
eligible for renomination for not more than one term.
An extremely healthy feature of the Indian Press Council is the scheme
and procedure of the nomination of its Chairman and other members, following
a long search based on the experience of several years of functioning of the
Council. Despite being a statutory body, the Government and its authorities have
been completely kept out of the nomination process except for publishing the
notification in the official gazette of the names of the members nominated. Nor
has it been left to any individual to decide, however eminent or highly placed he
may be.

A totally non-subjective procedure which leaves no scope for the

interference or influence by Government or any other agency was evolved with
remarkable ingenuity. The scheme is in force since the enactment of the Press
Council Act of 1978 under which the revived Press Council was set up in 1979.
2.6.1 Objects and Functions of the Council

The objects of present Press Council are substantially the same as were laid
down under the Act of 1965 (mentioned earlier). But the functions have undergone
some change in that the three of the functions listed in the earlier Act were not
included in the 1978 Act as they were considered to be burdensome for the
Council to perform. These related to (a) promoting the establishment of such
common services for the supply and dissemination of news to newspapers as
may, from time to time, appear to it to be desirable; (b) providing facilities for
proper education and training of persons in the profession of journalism; and (c)
promoting technical or other research.
In addition, the Act of 1978 lists two new functions of the Council: (I) to
undertake studies of foreign newspapers, including those brought out by any
embassy or any other representative in India of a foreign State, their circulation
and impact; and, (ii) to undertake such studies as may be entrusted to the Council
and to express its opinion in regard to any matter referred to it by the Central
Government.
Fundings of the Council
The Council may, for the purpose of performing its functions under the Act, levy
fee at the prescribed rates from registered newspapers and news agencies.
Apart from this, the Central Government has been enjoined to pay the Council
by way of granting such sums of money as the Central Government may consider
necessary, for the performance of its functions.
Functioning of the Council
The Council discharges its functions primarily through the medium of its Inquiry
Committees, adjudicating on complaint cases received by it against the Press
for violation of the norms of journalism or by the Press for interference with its
freedom by the authorities. There is a set procedure for lodging a complaint with
the Council.
A complainant is required essentially to write to the editor of the respondent
newspaper, drawing his attention to what the complainant considers to be in
breach of journalistic ethics or an offence against public taste. Apart from

furnishing to the Council a cutting of the matter complained against, it is

incumbent on the complainant to make and subscribe to a declaration that to
the best of his knowledge and belief he has placed all the relevant facts before
the Council and that no proceedings are pending in any court of law in respect of
any matter alleged in the complaint; and that he shall inform the Council forthwith
if during the pendency of the inquiry before the Council any matter alleged in the
complaint becomes the subject matter of any proceedings in a court of law. The
reason for this declaration is that in view of Section 14(3) of the Act, the Council
cannot deal with any matter which is sub judice.
If the Chairman finds that there are no sufficient grounds for inquiry, he
may dismiss the complaint and report it to the Council; otherwise, the Editor of
the newspaper or the journalist concerned is asked to show cause why action
should not be taken against him. On receipt of the written statement and other
relevant material from the editor or the journalist, the Secretariat of the Council
places the matter before the Inquiry Committee. The Inquiry Committee screens
and examines the complaint in necessary details. If necessary, it also calls for
further particulars or documents from the parties. The parties are given
opportunity to adduce evidence before the Inquiry Committee by appearing
personally or through their authorized representative including legal practitioners.
On the basis of the facts on record and affidavits or the oral evidence adduced
before it, the Committee formulates its findings and recommendations and
forwards them to the Council, which may or may not accept them. Where the
Council is satisfied that a newspaper or news agency has offended against the
standards of journalistic ethics or public taste or that an editor or working journalist
has committed professional misconduct, the Council may warn, admonish or
censure the newspaper, the news agency, the editor or journalist, or disapprove
the conduct thereof, as the case may be. In the complaints lodged by the Press
against the authorities, the Council is empowered to make such observations
as it may think fit in respect of the conduct of any authority including government.
The decisions of the Council are final and cannot be questioned in any court of
law. It will thus be seen that the Council wields a lot of moral authority although
it has no legally enforceable punitive powers.
The Inquiry Regulations framed by the Council empower the Chairman to
take suo motu action and issue notices to any party in respect of any matter
falling within the scope of Press Council Act. The procedure for holding a suo
motu inquiry is substantially the same as in the case of a normal inquiry except
that for any normal inquiry a complaint is required to be lodged with the Council

by a complainant. For the purpose of performing its functions or holding an

inquiry under the Act the Council exercises some of the powers vested in a Civil
Court trying a suit under the Code of Civil Procedure, 1908, in respect of the
following matters, namely :-
• Summoning and enforcing the attendance of persons and examining them
on oath;
• requiring the discovery and inspection of documents;
• receiving evidence on affidavits;
• requisitioning any public record or copies thereof from any court or office;
• issuing commissions for the examination of witnesses or documents;
and
• any other matter, which may be prescribed.
The Council expects the parties to cooperate with it in the conduct of its
business. At least in two cases where the Council noticed that the parties were
literally uncooperative or adamant, it exercised, its authority under Section 15 of
the Act to compel them to appear before it and/or to furnish record etc. In the
complaint of some Chandigarh journalists against the Chief Minister and the
Government of Haryana, the erstwhile Council had to warn the authorities about
the use of Council’s coercive powers if they failed to respond to the notices sent
by the Council. Similarly, in the famous case of B G Verghese against The
Hindustan Times, the Birlas were directed to provide complete correspondence
exchanged between Shri Verghese and Shri K K Birla.
Council has been unquestionably successful in its efforts towards
achieving the objects set before it of not only preserving the freedom of the
press but also ensuring that the standards of journalism are maintained and
improved. While the authorities, after Press Council’s intervention, have been
seen to be generally refraining from indulging in putting undue pressure on the
Press, the press-persons too have tended to restrain themselves from the kind
of journalism that could undermine the standards expected of them. The moral
impact of the Council has come to be widely recognised.
The tremendous increase in the number of complaints from 80 in 1979 to
1075 in 1997 is ample proof of the faith expressed by mediamen and the public
alike, in the working, importance and need for a body like the Council at the helm
of the fourth estate.

Code of Conduct
Section 13 (2) (b) of the Press Council Act, 1978, enjoins the Council to build up
a Code of Conduct for newspapers, news agencies and journalists in accordance
with the high professional standards to help and guide the newsmen.
In 1992, the Council brought out ‘ A Guide to Journalistic Ethics’ containing
principles of journalistic ethics culled out from the adjudications of the Council
and the guidelines issued by it in their wake. As several more decisions of far
reaching importance relating to the rights and responsibilities of the press have
been rendered since then by the Council, a 162 page elaborate and
comprehensive second edition of the guide has been issued. It also deals with
the concept of right to privacy and lays down the guidelines to be followed in this
behalf. The law of defamation has also been dealt with in some of its aspects for
the guidance of the press, public servants and public figures.
Broad Principles Evolved
Some of the broad principles evolved by the Council in course of its adjudication
on various subjects both in respect of standards of journalism and the freedom
of the Press are summarized as under:
1. Communal Writings
Scurrilous and inflammatory attacks should not be made on communities and
individuals. Any news on communal events based on rumours will be violative of
the journalistic ethics. Similarly, distorted reporting making important omissions
will not be correct. While it is the legitimate function of the Press to draw attention
to the genuine grievance of any community with a view to seeking redress in a
peaceful and legal manner, there should be no invention or exaggeration of
grievances, particularly those which tend to promote communal discord.
Defaming a community is a serious matter and ascribing to it a vile, anti-national
activity is reprehensible and amounts to journalistic impropriety.
2. Journalistic impropriety
Some of the principles evolved by the Council through its adjudications in respect
of journalistic impropriety are:
Any matter discussed or disclosed in confidence ought not to be published
without obtaining the consent of the source. If the editor finds that the publication
is in the public interest, he should clarify it in an appropriate footnote that the
statement or discussion in question was being published although it had been
made ‘off the record’.

An advertisement containing anything unlawful or illegal, or the one which

is contrary to good taste or journalistic ethics or propriety should not be published.
Proper care should be taken by newspapers in maintaining accuracy in respect
of quotations.Where a newspaper is charged with violation of journalistic ethics,
a plea that it has ceased publication will afford the editor no defence, since it is
his conduct which is subject of the complaint.
3. Obscenity and Bad Taste
The meaning of taste varies according to the context. For a journalist, it implies
that ‘which on grounds of decency or propriety he should not publish’. Where a
matter has ‘a tendency to stimulate sex feelings’ its publication in a journal meant
for the lay public, young or old, undesirable. Exploitation of sex falls short of
good taste. Public taste is to be judged in relation to the environment, milieu as
well notions of taste prevailing in contemporary society.
The basic test of obscenity is whether the matter is so gross or vulgar that
it is likely to deprave or corrupt. Another test is whether depiction of the scene
and language used can be regarded as filthy, repulsive, dirty or lewd.
4. Right of Reply
The prime principle that emanates from the various adjudications on this subject
upholds the editors’ discretion in the publication of letters. He would, however,
be expected to voluntarily rectify an incorrect statement or report on a matter of
public nature; the general reader can claim a locus standi on the basis of the
public right to know. Besides, any person who has been specifically referred to
in a publication can claim an automatic right to reply in the columns of the paper.
Though the Council does not have the power to force a newspaper to publish, a
rejoinder it may direct it to publish the particulars of the inquiry against it.
5. Pre-verification of News
Verification of news is necessary before publication, especially when the report
has slanderous or libellous overtones or could lead to communal tension; nor
can the publication of rumours as views of a cross-section of people be justified
under any circumstances. The editor shall make necessary amends when any
false or distorted publication is brought to his notice.
6. Defamation
Under the second exception to Section 499 of the Indian Penal Code it is not
defamation to express in good faith any opinion whatever respecting the conduct
of a public servant in the discharge of his public functions, or respecting his

character, so far as his character appears in that conduct, and no further. The
Council has accordingly held the opinion that fair comments on the public life
cannot be held to be improper. But if any factual statements are made, they
must be true and correct. In case a defamatory element is involved, more good
faith will not be a defence in any civil action for damages.
7. Right to privacy vs. Public figures
The Press Council of India formulated guidelines to achieve a balance between
the right to privacy of the public persons and the right of the press to have access
to information of public interest and importance. The Council has prepared a
report on the issue and framed the guidelines as follows:-
‘Right to privacy is an inviolable human right. However, the degree of privacy
differs from person to person and from situation to situation. The public person
who functions under public gaze as an emissary/representative of the public
cannot expect to be afforded the same degree of privacy as a private person.
His acts and conduct are of public interest (‘public interest’ being distinct and
separate from ‘of interest to the public’) even if conducted in private may be
brought to public knowledge through the medium of the press. The press has,
however, a corresponding duty to ensure that the informations about such acts
and conduct of public interest of the public person is obtained through fair means,
is properly verified and then reported accurately. For obtaining the information in
respect of acts done or conducted away from public gaze, the press is not
expected to use surveillance devices. For obtaining information about private
talks and discussions, while the press is expected not to badger the public
persons, the public persons are also expected to bring more openness in their
functioning and co-operate with the press in its duty of informing the public about
the acts of their representatives’.
Activity 2
Find out the names of the people who comprise the Press Council of India.
You may search on the Internet for information.

(i) The Press Council of India was set up with the primary objective of
safeguarding the freedom of the ________.

(ii) The Press Council comprises a Chairman and 28 other members

of which ______________ are working journalists.
(iii) The Council discharges its functions primarily through the medium
of its______________.
(iv) In 1992, the Council brought out ‘A Guide to Journalistic Ethics’
containing principles of journalistic __________.
2.7 Newspaper Management
Management principles as you all know are the guidelines or rules for the effective
management of an organization. Thus, a newspaper organization should be
managed on a set of principles, which guides its managers. These principles
should help managers take effective decisions based on tested generalizations
instead of relying on trial and error.
While the principles of management are universal, certain modifications
may be required to suit the demands of various situations in the newspaper
organization. The main principles of management as suggested by Henri Fayol,
the French management thinker and writer are as follows:
(i) Principle of objective: Each member of the newspaper organization
should be aware of its goals and objective. All activities performed in the
organization should be aimed at the achievement of these goals. The
newspaper organization as a whole, as a single entity as well as each
and every part of it, should contribute to the achievement of the
newspaper’s objectives.
(ii) Principle of specialization: Also referred to as the principle of division of
labour, this requires each person/employee in the newspaper organization
to be entrusted with just one main or leading function as per his expertise.
As a result an editor or a correspondent will be able to focus his efforts on
just a single line of endeavour that permits him to do his best in the limited
time.
(iii) Principle of span of control: According to this principle, no superior
should have more than a limited number of people working under him.
The principle of span of control makes the newspaper executives aware
of the fact that on account of the limitation of time and ability there is a limit
on the number of subordinates that they can effectively supervise.

(iv) Principle of authority and responsibility: This principle requires

authority and responsibility to run parallel in the newspaper organization.
No person working in a newspaper organization should conceive of
authority as separate from responsibility.
(v) Principle of unity of command: This principle states that one subordinate
should be reporting to only one superior or manager. Each employee
should be receiving order from only one person to whom he would also be
accountable. If an employee receives order from many superiors, there
would be confusion and chaos.
(vi) Principle of unity of direction or order giving: Orders that concern a
specific operation should be given by a single person directly. This ensures
coordination and sound functioning.
(vii) The exception principle: Each manager, irrespective of the level he/
she is in, should take decisions that come under the scope of his/her
authority. Anything that goes beyond his purview should be referred to his
senior. This way, only the matters that are unusual and require special
skills will go to the supervisor while the simple/routine issues will be
handled by the subordinates as a matter of routine.
(viii) Scalar principle: According to this principle authority and responsibility
should flow from the highest rank to the lowest. This principle emphasizes
the existence of some sort of hierarchy involving superior- subordinate
relationship.
(ix) Principle of balance: The various departments and sections of an
organization should be in a balance. No function or department should be
given undue importance at the cost of the other sections.
(x) Principle of discipline: Discipline is essential for the running of any
organization. And if this discipline is self-imposed it would be the best.
(xi) Subordination of individual interest to general interest: In any
newspaper organization, the interest of an individual or a group should
never dominate or prevail over the interest of the organization as a whole.
This can be ensured through close supervision and just treatment.
(xii) Remuneration of personnel: Remuneration of any employees should
be satisfactory for not just the organization but also for the employees
himself.
(xiii) Centralization: There should be one central point from where orders or
directions are given.

(xiv) Order: Each newspaper employee should be placed in a position that is

best suited to his abilities or skills.
(xv) Equity and Cohesiveness: Managers should be kind and polite to their
employees. Managers at all levels should be impartial and should treat
their employees equally. Sometimes managers may have to forget their
personal vanity in order to boost the morale of the subordinates.The
principle of esprit-de-Corps or ‘union is strength’ should be encouraged to
ensure cohesiveness in a newspaper organization.
Exhibit 2.1
New Delhi, October 30, 2011

More teeth to council
Press Council Chairman Markandey Katju has written to Prime Minister
Manmohan Singh suggesting that the electronic media should be brought
under its purview and should be given “more teeth.”
“I have written to the PM that the electronic media should be brought under
Press Council and it should be called Media Council and we should be
given more teeth. Those teeth would be used in extreme situations,” Justice
Katju told Karan Thapar on CNN-IBN’s Devil’s Advocate programme.
More powers to PCI
‘I want powers to stop government advertisement, I want to suspend license
of that media for a certain period if it behaves in a very obnoxious manner,
impose fines,” Mr. Katju said while maintaining that all these measures would
be used only in extreme situations.
Mr. Katju said that he thought TV debates were “frivolous”, and there is no
discipline among panelists. “It is not a shouting contest,” he opined.
He also spoke about how he thought things could be changed. “There must
be some fear in the media,” he said.
Mr. Katju said, “I have a poor opinion of the media” and added that “they
should be working for the interest of the people. They are not working for the
interest of the people and sometime they are positively working in an anti-
people manner.”
He said, “Indian media is very often playing an anti-people role. It often diverts
the attention of the people from the real problems which are basically
economic. “You (media) divert the attention from those problems and instead

you project film stars and fashion parades as if they are the problems of the
people,” he said.
The Council Chairman said, “Whenever bomb blasts take place, in Bombay,
Delhi, Bangalore, within a few hours almost every channel starts showing
an e-mail has come or an sms has come that Indian Mujahideen has claimed
responsibility or Jaish-e Mohammed or Harkat-ul-Ansar or some Muslim
name.”
“You see e-mail or sms...any mischievous person can send but by showing
it on TV channels you are in a subtle way conveying the message that all
Muslims are terrorists and bomb throwers and you are demonising the
Muslims...99 per cent of people of all communities are good people,” Mr.
Katju said.
“I think it is a deliberate action of the media to divide the people on religious
lines and that is totally against the national interest,” he said.
Citing an instance, Mr. Katju said that “the photograph of a high court judge
was shown next to the photograph of a notorious criminal for two consecutive
days” on a TV channel.
Mr. Katju, who had been a high court judge, said the channel had done a
story on baseless allegations against an upright judge. “You condemn a
corrupt person, I am with you but why should you condemn an honest
person.”
Source: Adapted from http://www.thehindu.com/news/national/
article2582746.ece
9. Match the following.

(i) Each member of the newspaper (a) Scalar principle
organization should be aware of its
goals and objective
(ii) No superior should have more than (b) Principle of objective
a limited number of people working
under him
(iii) One subordinate should be reporting (c) Centralization
to only one superior or manager

(iv) There should be one central point (d) Principle of unity of

from where orders or directions are command
given
(v) Authority and responsibility should (e) Principle of span
flow from the highest rank to the of control
lowest
2.8 Summary

• A newspaper may be organized on the basis of frequency of publication
or size of the market.
• In case of privately owned newspapers, the owners have control over the
enterprise and the rights of the firm are held with individuals, partners,
families or privately held corporations.
• Publicly traded newspaper organizations are those that get their capital
from selling ownership shares on the stock market.
• Individual investors, insiders and institutional investors provide most of
the capital that is available.
• Charitable ownership, also called foundation ownership is often advocated
by those who do not approve of the profit motivation of corporate and
private owners.
• Employee ownership is a form of ownership where the shares in a firm
are owned by employees.
• Supporters of employee participation in organizational decision-making
realize that employee ownership cannot really help improve content or
journalistic quality/performance.
• A newspaper organization comprises the editorial, advertising, circulation,
printing, administrative, accounting, stores, personnel, legal, public
relations and data processing departments.
• Printing and publishing of newspapers and periodicals within India are
governed by the Press and Registration of Books Act, 1867 and the
Registration of Newspapers (Central) Rules, 1956.
• The Government of India has appointed the Registrar of Newspapers,
also called the Press Registrar, who maintains a register of newspapers
and periodicals published in India

• The Press Council of India helps the Press regulate itself.

• The Press council of India was constituted to:
o Help newspapers maintain their independence
o Build up a code of conduct for newspapers and journalists in
accordance with high professional standards
o Ensure on the part of newspapers and journalists the maintenance
of high standards of public taste and foster a due sense of both the
rights and responsibilities of citizenship.
o Encourage the growth of a sense of responsibility and public service
in journalism
o Review developments likely to restrict the supply and dissemination
of news of public interest and importance
2.9 Glossary
• Metropolitan: Cities large enough to have suburbs, usually capital cities.

It is derived from the Greek word metropolis meaning mother city.
• Journalism: The act of collecting, writing, editing and presenting news in
newspapers or on radio/ television broadcasts.
• Newsroom: A room in a newspaper office or in a radio/television station
where news stories are written and edited.
• Convergence: The coming together of two or more things.
• Proprietor: One who own an establishment or possesses the legal title
to something.
• Defamation: An act that causes injury to the image or reputation of a
person, individual or organization.
• Libellous: A false publication, piece of writing or pictures that may damage
a person’s reputation.
1. What is the difference between private ownership and publicly traded

ownership?
2. What are the drawbacks of a family-owned newspaper?

3. State the various types of investors in the market?

4. What is the biggest challenge faced in case of charitable ownership?
5. What are the salient features of employee ownership?
6. Which are the departments commonly found in a newspaper organization?
Which one is the most important and why?
7. What are the jobs that the printing department looks after?
8. What is the role of the Registar of Newspapers?
9. What is the main objective of the Press Council of India?
10. List the main principles involved in newspaper management.
2.11 Answers
1. frequence; size
2. Managing editor
3. Technological
4. Coordination
5. (a) ii; (b) iii; (c) i; (d) iv
6. (i) Editor
(ii) Circulation
(iii) Printing
(iv) Administrative
(v) Newsprint
7. (i) True
(ii) False
(iii) True
8. (i) Press
(ii) 13
(iii) Inquiry Committees
(iv) Ethics
9. (i) (b); (ii) (e); (iii) (d); (iv) (c); (v) (a)

1. Refer to Section 2.3.1 and 2.3.2

1. Thakurta, Paranjoy Guha. Media Ethics: Truth, Fairness and Objectivity.

New Delhi: Oxford University Press
2. Willis, Jim. Surviving in the Newspaper Business. New York: Greenwood
Press Inc.
3. Fin, Conrad C. Strategic Newspaper Management. New York: Random
House
E-References
http://www.techno-preneur.net/information-desk/sciencetech-magazine/2009/
september09/Print.pdf
http://robertoigarza.files.wordpress.com/2009/04/art-organisational-changes-in-
newspaper-firms-and-the-relationship-of-performances-van-weezel-
2008.pdf

Unit 3 Radio and Television
Structure
3.1 Introduction
Objectives
3.2 Radio
3.3 Television
3.4 New Media
3.5 Summary
3.6 Glossary
3.8 Answers
3.9 Further Reading
3.1 Introduction
The previous unit talked about how newspaper organizations are structured
and departmentalized and the various forms of ownership. You also read about
how newspapers are managed and the role played by the Press Council of India
in the regulation of the print media in the country.
This unit will expose you to the media for mass communication including
the latest media like the Internet, computers and mobiles. Mass communication
has become one of the central activities of modern society. It is possible for
people to communicate with each other at/on an interpersonal level with the
help of language in the form of speech. However, you cannot communicate with
the masses without using other types of media, such as print, radio, films,
television and the most recent of them referred to as new media. In this unit, a
brief history and evolution of the Radio and Television along with their strengths,
weaknesses and impact would be discussed with an objective of giving a
comprehensive picture of these media and their use and utility in mass
communication.
Objectives
• Assess the various media of mass communication.
• Describe the evolution of the radio and television
• Evaluate the growth of the radio and television, and their impact on the
masses
• Discuss the effectiveness of new media such as the Internet and mobile
communication
3.2 Radio
The invention of radio and its spread in Europe, a long time after they had been
using print media, had a remarkable impact on the spread of knowledge. Marshall
McLuhan, a professor of English and a renowned scholar of media studies has
described the radio as a tribal drum. The arrival of the radio shocked the European
people who had learned to divide the world into public and private spaces.
3.2.1 Early Days of Radio

The need for rapid long distance communication led to the invention of the radio.
The mid-nineteenth century was a period where long distance communication
technologies were emerging one after the other. The first such instance was the
invention of the electric dot and dash telegraph in 1844 by F.B. Morse. The
technology of telephone in 1876, wireless telegraph in 1896 and the concept of
radio telephony materialized in 1906. All this became possible due to the hard
work and insights of thousands of scientists. Michael Faraday was conducting
an experiment on magnetic fields. Another scientist, Maxwell predicted that
electromagnetic energy could be sent at the speed of light. He proved the
existence of radio waves in the decade of 1860. A little later, a German physicist
Heinrich Rudolph Hertz found that the fast moving electric current could be
projected into space.
Even during the beginning of the eighteenth century common people
travelled long distances on foot, on horses or by carts. It took them months to
reach their destinations. Long distance communication was possible either by
ships or horses that carried goods and messages from one place to the other.
Much before this in the late sixteenth century, when ships sailed for trade,
invasions and explorations, the need to inform the near and dear ones about
their well being would have been felt.
Giovanni Della Porta, a sixteenth century scientist, wrote in his book Natural
Magick about a device that would be able to ‘Write at a distance.’ He wanted to
use a special lodestone (a natural magnet) in his dream device that he never
found. This incident underlines the need felt for long distance devices or methods
of communication.

Inspired from Giovanni’s imagination, Hertz invented a simple transmitter

and receiver in 1887. A few years later Guglielmo Marconi started experiments
on different wave lengths and types of antennae after having studied Hertzian
waves. He wanted to send and receive messages by Morse code. In the beginning
of 1890, he sent wave signals at 9 metres and after some time in 1901
successfully sent the wave signals to a distance of 3200 km, from England to
Newfoundland. The message was the letter ‘S’ in Morse code, which was the
first Trans Atlantic message.
Now the task that remained to be fulfilled was to send and listen to the
human voice through radio waves. Reginald A. Fessenden transmitted voices
from Boston to surprise all radio operators, along the Atlantic sea lanes. Instead
of the dot and dash message, they heard a human voice. They heard a male
voice reading from the Bible, then a phonograph record followed by music on
violin. This remarkable event took place on the eve of Christmas in 1906. The
same year, Lee de Forest designed a three element vacuum tube. This amplified
the radio signal. The next stage in the development of the radio was the designing
of the portable radio transmitting and receiving set that was widely used in World
War I. Radio was still not for public use.
A number of scientists in the West were experimenting on radio waves.
Hence, the credit of inventing the radio goes to a large number of researchers,
scientists and inventors namely Marconi, Nikola Tesla, Alexander Popov, Oliver
Lodge, Reginald Fessenden, Heinrich Hertz, James Clark Maxwell and many
more.
The improvements in radio technology now came more quickly. People
were interested in listening to the radio which seemed a bit distant due to many
obligations that had to be met before starting a broadcast for the public.
Improvements in radio sets, the cost, a clear reception, regulations regarding
air waves, etc. were the initial problems. David Sarnoff, working for the American
Marconi Company, said that the radio is becoming more than an experiment. It
should become a ‘music box’ for homes. He wrote a memorandum in 1916 in
which he said:
I have in mind a plan of development which would make radio a ‘household
utility’ in the same sense as a piano or phonograph. The idea is to bring
music into the house by wireless. …The receiver can be designed in the
form of a simple ‘Radio Music Box’ and arranged for several different
wave lengths, which should be changeable with the throwing of a single
switch or pressing of a single button. The ‘Radio music box’ can be

supplied with amplifying tubes and a loud speaking telephone, all of

which can be neatly mounted in one box. The box can be placed on a
table in the parlour or living room, the switch set accordingly and the
transmitted music received.
The first real radio broadcast was transmitted from Pittsburg (Pennsylvania)
in 1920. It was Dr Frank Conrad who started regular broadcasts twice a week.
He used recorded music for this purpose and the response was huge and
excellent. The same year, the early results of the presidential election between
James Cox and Warren Harding were announced from the same licensed
company later named as radio station KDKA. Radio station KDKA probably still
exists and is considered as the oldest radio station.
3.2.2 Medium Wave and Shortwave

Today we can carry transistor radio sets in our pockets. Radio is inbuilt in the
latest mobiles. But in the early days, the size of radio sets was quite huge. They
were heavy huge boxes around which people used to gather and listen to music,
news and other programmes.
Later, many radio stations appeared in various cities. Rich and wealthy
people or various organizations purchased the transmitters to broadcast their
own messages. To accommodate so many people was the biggest problem as
there were hardly any locations on the frequency spectrum. In fact, the amplitude
modulation broadcasting system could carry the signals over long distances,
especially at night. People listening to a local station only heard a jumble of
broadcasts from various parts of the country.
Finally in 1926, The National Broadcasting Corporation (NBC) started
network broadcasting. By the end of the decade, people all over the country
could simultaneously hear a broadcast of the same radio station. Radio was
transformed from a long distance signalling device into a medium that served
the entire nation. The broadcast now offered a variety of content. It promoted
singers, presented sports events and was also used by politicians for their
campaigning. News broadcast attracted huge audiences; radio became an
integral part of everyone’s life.
Let us try to understand how this technology of receiving voice in radio
sets was made possible. Radio communication used electromagnetic waves
to transmit information, in our case voice, from one point to another. Our voice
frequencies range in 50–3000 Hz. The basic principle of radio communication
involves conversion of such voice frequencies to a higher frequency and then
radiating them through an antenna and at the receiver end again converting the

electromagnetic radiations to voice frequencies. Transmitters and receivers are

required to propagate and intercept radio waves. Radio waves carry the
information or signals. This information is encoded directly on the wave by
interrupting its transmission or it is impressed on it by a process known as
modulation. When at the receiver end these electromagnetic radiations are
converted back to voice frequencies, the process is known as demodulation.
Amplitude modulation (AM) is the older method of broadcasting, and it is
still in use. We already know that AM radio was started with the broadcast by
Canadian scientist Reginald Fessenden.
AM radio technology is a simpler broadcasting on several frequency bands.
It gets disrupted by manmade or atmospheric interferences. Hence, it is not
well-suited for music programmes.
Medium wave (MW) signals have a typical characteristic of following the
curvature of the earth at all times. They are also refracted off the ionosphere at
night. Hence this frequency band is ideal for local as well as continent-wide
services. MW is a radio wave with a wavelength between 100 and 1000 metres.
Basically, it is a frequency in the range of 300–3000 kHz.
Shortwave is a high frequency between 3000–30,000 kHz. The
wavelengths in this band are shorter. SW radio is used for long distance
communication. It can easily be transmitted over a distance of several thousands
kilometres. In tropical regions, SW is less disrupted by thunderstorms than
medium wave radio and thus can cover a larger geographic area. But
overcrowding on the wavebands, atmospheric disturbances and electrical
interferences from appliances and installations disturb the broadcast. In such
cases, voice quality hence delivered is poor at times. Even otherwise, the audio
quality of SW broadcast is inferior in comparison with MW though the SW
frequencies can reach any location on the earth.
The External Services Division of the All India Radio uses the SW to
broadcast its programmes in various foreign languages to the concerned
countries. SW transmissions were of great importance to us from the very
beginning. It brought events to listeners from other countries. Germany and Soviet
Union started to broadcast internationally in the 1920s.
3.2.3 FM Radio
From the early days of radio transmissions, scientists were annoyed by the
hissing noises caused by the atmospheric electricity. They made great efforts
to reduce this but the problem was not solved completely. Edwin Armstrong in

1933 developed a new kind of radio signal based on frequency modulation.

Frequency modulation is a method of conveying information over a carrier wave
by varying its frequency. This is different from AM in which the amplitude of the
carrier wave is varied while its frequency remains constant. Since this system
is static free and can carry much higher or lower frequencies, it proved to be an
ideal carrier of music. The reach of FM is only up to the horizon. Hence, the
broadcast is limited to a specific area.
Armstrong used a much broader bandwidth than AM stations. By doing
this he gave not only hissing-free reception but also much higher audio quality
than AM radio offered. Frequency band to FM radio is about 88–108 MHz. FM
Radio is broadcast in stereo that means it has 2 channels of information. FM
system rejects the noise better than the AM system. AM system picks up any
change in amplitude that changes the signal. That is the reason why FM is able
to provide interference free reception and a high audio quality.
There were about twenty experimental FM stations in the US in 1939. It
was from here that FM originated. Today, we have a long list of FM radios all over
the world. Though it provides a variety of information, its main genre, however,
remains music.
There are people who argue that FM is promoting an entirely different type
of culture. There are also those who feel that FM has brought people much
close to radio as it is interactive.
3.2.4 Satellite Radio, XM and Podcasting

Satellite radio is a digital radio signal. It is the latest in digital radio technology,
and is relayed through satellites. Hence, it can be received in a much wider
geographical area than terrestrial AM and FM radio. Satellite radio services are
subscription-based and are provided by commercial companies. Satellite radio
is one of the fastest growing entertainment services in the world.
At present, there are two space-based radio broadcasters namely
WorldSpace and Sirius XM radio. These companies have merged into a single
company but the two services are not fully integrated yet.
The ground station transmits a signal to geo-satellites. These signals are
bounced back down by satellites to radio receivers on the ground. Radio
receivers receive and unscramble the digital data signal which contains more
than 170 channels of digital audio. These signals contain encoded sound and
information about the broadcast that include the title of the song, artist’s name
and genre of music to be displayed on the radio.

Podcasting is a service that allows the Internet users to pull audio files
from a podcasting website to listen to various programmes on their computers
or on personal digital audio players.
MTV jockey Adam Curry and software developer Dave Winer jointly
developed podcasting in 2004. Curry downloaded Internet radio broadcasts to
his ipod with the help of a program called ipodder. Though podcasting is almost
free of cost, some of the international companies are eyeing it for making profit.
Radio stations like the National Public Radio, the Canadian Broadcasting
Corporation and the BBC also podcast their programmes.
Very soon, the use of podcasting technology will not be limited to music; it
is a useful tool in the field of education as well. Podcasting in India is at an initial
stage. Despite the fact that there are approximately 3000 Indian podcasters,
podcasting is not a very popular venture. One of the podcasters is Sunil Gavaskar
who hosted a cricket podcast at Yahoo India. Some of the podcasts in Indian
languages are podmasti, podbharti and podbazar. The XM Satellite Radio (XM)
is one of the two satellite radio (SDARS) services in the United States and
Canada, operated by Sirius XM Radio.
3.2.5 Radio in India

The Times of India and the posts and telegraphs department jointly started
broadcasting radio programmes from Mumbai. This was called the Radio Club
of Bombay. Almost at the same time a group of people interested in radio listening
joined hands and formed another radio club in Madras which was named Madras
Presidency Club. This club started its broadcasts, mainly entertainment, from
31 July 1924. They installed an SW transmitter of one kilowatt but they could not
continue it because of the shortage of money. The then government realized the
power and usefulness of the radio and launched the Indian Broadcasting
Company in March 1927.
The date 23 July 1927 is a memorable day in the history of broadcasting
when Lord Irwin, the Viceroy of India, inaugurated the Bombay radio station. The
same year, the Calcutta station was inaugurated by the then Governor of Bengal,
Stalin Jackson. Indian Broadcasting Company went bankrupt in 1930.
In June 1936 the Indian State Broadcasting Corporation was renamed as
All India Radio. The ‘Akashvani’ got its name ten years later after Independence
in 1957. Popular genres of radio are news, newsreels, features, drama, music
programmes, talks, discussions and live chat shows.
After Independence, many learned people from all walks of life joined All
India Radio. They chalked out radio programming with an aim to integrate the

masses of India through various programmes on music, drama, literature and

news. More attention was paid to include Indian classical and folk music to attract
more and more people. Artists like Pandit Ravi Shankar, Ustad Bismillah Khan,
and Bade Gulam Ali Khan were invited to perform. Many writers and journalists
joined AIR’s news unit. Their understanding of the society, language and culture
were reflected in their comments and views that influenced the masses in a
positive way. Various other programmes on agriculture, health, science and social
welfare opened new horizons for the masses.
3.2.6 Radio as a Medium of Communication

Radio is a useful and powerful instrument for mass communication. It has certain
drawbacks and advantages as an audio medium. It is capable of disseminating
information at distances and in a very wide area, very quickly. Messages and
information can be delivered the moment the are received. Unlike television, it
does not require special arrangements for broadcast. A radio reporter can be
prompter than a TV reporter thus making radio more reliable for broadcasting
events or happenings and is certainly a faster medium than print.
As an audio medium, its reach is vast. It delivers messages that are heard
and comprehended by all from highly educated intellectuals to neo-literates as
well as to illiterates. Radio is cost-effective too. Nowadays, people are able to
access FM radio on their mobile phones.
The radio is a boon for the blind as they can listen to the news, enjoy
music and make themselves aware of the world which they cannot see. Further,
it enhances one’s visual and imaginative powers. Through the radio people heard
the explosions of bombs during World War II and could feel the tragedy from
their homes.
Radio provides the convenience to receive messages, and enjoy music
or features while they are working. A busy executive may also listen to a current
affairs programme while driving. A student can listen to important announcements
and news while getting ready for his college. A farmer may listen to agriculture-
related news or information or even music while working in the fields. The radio
does not snatch time away from one’s working schedule.
The Government of India launched several projects in the fields of
education, healthcare, agriculture, etc. like school broadcast (1937), adult
education and community development (1956), farm and home broadcast (1966),
university broadcast (1965), etc.

Today, the radio has become interactive and has started live broadcasts
where people can participate by sharing their views on topics that are discussed.
Almost all services of All India Radio offer live participation of audiences. FM
radio stations are much ahead in this regard. Instances of road accidents, traffic
jams, sudden fall in temperature or rains in a particular area, storms, etc. are
regularly reported.
Some governments have provided aid or sponsored programmes on
education, agriculture, health, women empowerment, etc. But more guidelines,
schemes and formats have to be chalked out to work on issues like hunger,
poverty, unemployment and so on. Masses should come forward with new
innovations and constructive ideas to deal with these problems.
People tune into the radio for various reasons. Some really want to be
informed; some use it as a background voice while they are working; some
merely want to get entertained. Radio is a companion for those who are lonely.
It plays a role of social lubricant by bringing people together through exchange of
views; it integrates them through music, social and political issues and thus
creates a healthy environment of harmony, awareness and social
consciousness. It has been an excellent tool for education.
As early as in 1937, AIR commissioned a school broadcast project in
which four major cities were selected, i.e. Delhi, Calcutta, Madras and Bombay.
Initially this programme was not curriculum-oriented, but later AIR tried to follow
the school curriculum in vein as it was not the same in all the states of the
country. In 1965, AIR also started a broadcast project for universities to expand
and enrich the higher education.
For the purpose of educating adults and developing the community, a
project named ‘Radio Forums Project’ was started in 1956. This was an
agriculture-based project that was commenced with the help of UNESCO in
Maharashtra. This project benefited 144 villages in the vicinity of Pune. Another
successful project was started in 1966 for farmers. During the ‘Green Revolution’,
farmers adopted useful agriculture-related techniques that were broadcast on
radio. This programme was aired under the Agriculture Extension project of the
Government of India. The broadcasts were planned to provide information on
agriculture technology, fertilizer insecticides, seeds, agriculture machines, etc.
In 1960s, with the help of radio broadcasts, a new variety of rice was harvested
in abundance. It was popularly named as “Radio Rice.” Even now various stations
of all India Radio are regularly broadcasting programmes for farmers and their
community with an aim to educate, inform and to entertain them. Radio is

providing significant information through popular programmes on various issues

like environment protection, land and water conservation, role of panchayats,
biotechnology for agriculture, etc.
Radio is empowering rural and urban women with its specially designed
programmes targeted to educate them in the areas like health, family welfare,
childcare, food and nutrition and home management. It also educates them
about their rights. Radio programmes on family welfare in various formats like
discussions, drama, jingles and feature have made women aware of the benefits
of a small family.
The radio has promoted popular and classical music, folk music, theatre
and literature. Radio services like Vividh Bharti are a major source of entertainment
for the soldiers serving the nation at remote places near the borders. It has also
inculcated an interest towards light film music in the masses.
Radio provides a platform to various artists, writers and musicians to
spread their art and skills.
Activity 1
Find out how a programme is recorded at a radio station.

(a) Giovanni Della Porta, a sixteenth century scientist, wrote in his book
__________about a device that would be able to ‘Write at a distance.’
(b) German physicist ___________ found that the fast moving electric
current could be projected into the space.
(c) The National Broadcasting Corporation (NBC) started network
broadcasting in the year_______.
(d) In 1937, __________ commissioned a school broadcast project in
four major cities, i.e. Delhi, Calcutta, Madras and Bombay.
2. State whether the following statements are true or false:
(a) Lord Irwin, the Viceroy of India, inaugurated Bombay radio station on
23 July 1927.
(b) The Times of India and the Ministry of Foreign Affairs jointly started
broadcasting radio programmes from Mumbai.

(c) Podcasting is a service that allows the Internet users to pull audio
files from a podcasting website to listen to various programmes on
their computers or on personal digital audio players
(d) The Indian Broadcasting Company went bankrupt in 1930.
(e) Giovanni Della Porta invented a simple transmitter and receiver in
1887.
3.3 Television
Television is a brilliant invention of the twentieth century. It has not only made it
possible for us to view the events and happenings of the world instantly, it has
brought cinema in the form of soap operas and telefilms and even in its usual
form to our drawing rooms. It has become a very powerful and the most accessed
medium. Many politicians have been able to capture and maintain their political
power with the help of television. Some of these people own television networks
not only in Europe and Latin America but in India as well.
3.3.1 Early Days of Television

In 1884, a German scientist Paul Nipkow experimented with a rotating disk
containing small holes and found that this device of his could work as a scanner.
The disk, known as Nipkow disc, produced patterns of electric impulses required
to transmit pictures. This device became an integral part of the technology of
transmitting images. Even today, this scanning concept is a standard component
of television (now popularly known as TV).
Rosing in Russia used Braun’s cathode ray oscilloscope as a display
tube for producing very feeble TV signals in 1907. In England, Campbell-Swinton
worked out an electronic system for TV in 1908. A high school boy from Rigby,
Philo T. Farnsworth of the United States in 1922 drew an electronic circuit for
transmitting and receiving moving images. His study was based on the Nipkow
disk. Next year Charles Jenkins sent still TV images by wireless from Washington
to Philadelphia.
During the same period, a Russian Scholar Vladimir Zworykin, who was a
communication specialist and had already worked on TV circuit, came to the
US to begin his research on more sophisticated and practical electronic systems
required for actual TV transmission and reception. This was the time when
inventors were working on the TV system in various countries. John Baird a
Scottish Engineer too used the Nipkow disk to successfully produce faint pictures

in black and white. He demonstrated the very first telecast in 1926. His TV system
was later adopted by the BBC.
In Berlin, a TV service was started in 1935. The pictures were produced
on a film and then scanned using the Nipkow’s model. BBC began its telecast in
1936 from Alexandra Palace, London. A full-fledged TV Station with studio was
built in New York City’s Empire State Building in 1932 and the telecast was
started in 1936. Initially, the telecast had only two programmes per week and
that too came to a sudden halt during World War II. Just after the war there
emerged a number of TV stations in some major cities. By 1946 new licenses
for TV transmitters were issued and then there was a rush to bring home a new
medium of communication. As TV sets were very expensive at the initial stage,
only a few could afford them.
Those who owned TV sets, used to have big gatherings of TV viewers at
their homes. It was a luxury item and status symbol in those days. Federal
Communications Commission (FCC) had issued approximately 100 licenses
by the beginning of 1948. Most of the cities had their own stations. There appeared
a problem of signal interference or clash in various stations. Reception was
either not clear or it was not there at all. FCC ordered a freeze on the issuance
of new licenses and manufacturing. Hence, America had to wait till the freeze
was lifted. In the meantime, FCC worked out the technicalities of TV broadcasting
in order to allocate frequencies to FM Radio and TV. When this chaotic situation
of signal interference and overlapping was solved, the freeze was lifted in 1952.
The earliest design of colour TV system was perhaps made in Germany
in around 1904. In 1925, Zworykin also claimed to have designed an all-electronic
colour TV system. These two systems failed but they were the first attempts
towards the development of colour TV system. A successful system began
broadcasting in America much later in 1953 after many researches and lots of
efforts. Some people say that John Baird, the inventor of the world’s first working
TV system in England in 1923, experimented with a colour TV using cathode ray
tube and a disc with colour filters. In 1944, he demonstrated the world’s first
electronic colour TV. However, the colour technology was then in its raw state. It
took several years to refine itself.
During 1952–1960, the TV industry saw rapid growth and spread in the
West. The period between 1960–1980s was the period when there were many
TV networks and they were in competition with each other. BBC during this
period focused its attention on educative programmes meant for building the
character and enhancing cultural values, correcting pronunciations and shaping

the middle class intelligentsia. BBC is still known for its research-based
documentaries.
News from the very beginning had a dramatic effect on society. In 1933,
people watched President Roosevelt’s address to the nation on TV. A very popular
programme World News Round Up was aired on CBS in 1938. A telecast of
Soviet Premier Khrushchev representing his nation at United Nations was shared
by millions of people. Cameras recorded him expressing his dissatisfaction by
pounding one of his shoes on his desk, which he took off while the session was
in progress. President John Kennedy’s assassination and Lyndon Johnson’s
succession receive massive 4 days coverage in 1963 and the moon landing in
1969 was viewed in 94 per cent homes.
The TV industry grew further with the growth of cable TV and with the
adoption of video cassette recorders. Cable TV system was needed in those
areas that were not getting the proper signals because of geographical conditions
or manmade conditions as well. Tall buildings, densely populated areas, valleys
or hills blocked TV signals. As a result, TV receiver could not receive them.
Initially cable system started on a low-scale but when picture quality improved,
the cable TV started spreading rapidly.
The beginning of the 1970s was the period when video cassette recorders
(VCRs) appeared all over the world for recording the programmes of one’s choice
from the TV network. It was also a very useful device for editing. VCR was
invented in America by Ampex Corporation. Charles Ginsberg designed this
machine to record TV programmes on a magnetic tape. Japan improved the
technology by standardizing the systems and became the number one
manufacturer and exporter of VCRs. VCRs became more popular for movie
viewing. Movies were recorded on VCRs and cassettes were sold in the markets
or at book stalls. The tape technology of VCRs gave rise to digital storage
technology where any programme can be squeezed on a compact disk.
The Russians launched Sputnik, the world’s first satellite on 4 October
1957. A few months later, the US launched Explorer I on 1 January 1958. In
1976, history was created by Home Box Office (HBO) by starting satellite delivery
of programming to cable networks with the telecast of The Thriller from Manila,
a heavyweight boxing match. The match was played between Joe Frazier and
Mohammed Ali. With the growth of satellite broadcasting, people looked to the
multi-channel facilities at low price, very attractive.
Satellite system provides clear pictures and stereo sound on various
channels. Conceptually, satellite system is a wireless system that delivers TV

programming directly to viewers. Satellite TV systems transmit and receive radio

signals using satellite dishes. These dishes act like antennas. Earlier the size of
the uplink dishes was quite huge as much as 9–12 metres in diameter.
Geostationary Satellites are placed in geosynchronous orbits. They stay in one
place in the sky relative to the earth. Each one is approximately 22,200 miles or
35,700 km above the earth.
The first ever satellite TV signal was sent from Europe to the Telstar Satellite
in 1962. The first geosynchronous communication satellite Syncom 2 was
launched in 1963 and Intelsat I, the first commercial communication satellite
was launched in 1965. Intelsat I is also called Early Bird. Soviet Union was the
first to start national network of satellite TV which was named “Orbita” and was
developed in 1967.
All over the world, satellite TV has grown rapidly in recent years. TV is
migrating from analog to digital where audio and video are transmitted by discrete
signals. The latest advanced broadband technology allows consumers to
combine video, phone and data services with an access to the Internet. The
most significant advantage of such a system is that digital channels are
accommodated in less bandwidth. This allows more channels to flow in the
same space. Digital system provides high definition TV service with better picture,
better sound and multimedia service with feedback and talkback facility. Digital
signals react differently to interference and obstacles. The common problems
faced in analog TV were ghosting of images, noise, poor clarity or wavy picture.
But using digital technology, audio and video are synchronized digitally hence
providing a crystal clear reception. It is a system of storing, processing and
transmitting information through the use of distinct electronic pulses that
represent the binary digits 0 and 1. In analog system, the sound of the broadcast
is modulated separately from the video. Analog is a transmission standard that
uses electrical impulses to emulate the audio waveform of sound.
Television in India
TV in India appeared on 15 September 1959 in New Delhi. It was started as an
experiment to train personnel and to find out its possibilities in the field of
community development and education. UNESCO granted a sum of $20,000
and offered the required equipment to make this experiment possible. In the
beginning 180 community teleclubs benefited from the programmes that were
telecast twice a week, each of 20 minutes duration. The range of the transmitters
was just 40 km. After 2 years in 1961, it was found that the programmes had
some impact on the audiences. As a result educational programmes on science
for teachers were started in 1961.

Programmes on entertainment and information were introduced from

August 1965. Next important step was the introduction of the programmes on
agriculture. With the help of the Department of Atomic Energy, the Indian
Agriculture Research Institute, Delhi Administration and the State Governments
of Haryana and Uttar Pradesh, a programme named Krishi Darshan was started
for the farmers. The range of the transmitters was now increased up to 60 km.
By 1975, there were four TV centres in the cities like Mumbai, Srinagar,
Amritsar and Pune (relay centre). Under satellite instructional TV experiment
scheme six states were selected for the transmission of educational
programmes. This project lasted for 1975–1976. Commercials were soon
introduced on TV. Same year TV was separated from All India Radio and as an
independent media was called Doordarshan. Doordarshan National Programme
was started in 1982 and colour TV was also introduced the same year.
3.3.2 Television as a Medium

TV is an audio-visual medium. It provides visuals along with sounds. Due to this
distinctive feature TV dominates over other media of mass communication. In
its presentations, TV carries some of the characteristics of film, stage and radio.
If the language of radio consists of sounds and spoken words, then the language
of TV contains various types of visuals, i.e., stills to moving pictures and various
types of natural and artificial sounds.
TV visuals can show something that cannot be described in words. For
instance, in radio, the description of mountains covered with snow requires a
language, speech and style that creates an image of snow-covered mountains
in the minds of listeners whereas in TV the visual of snow-covered mountains
alone is enough to send the message across to the viewers without using a
single word. In TV close-ups even the smallest detail becomes prominent that
is capable of leaving an impact on the viewer. TV is also a medium of glamour
and instant recognition. The shine and shimmer of the screen adds to the glamour.
Watching people, events, happenings, etc., in moving visuals gives a feeling
of reality. TV not only strengthens one’s belief about the events being telecast on
it, but also attracts masses much more than print or radio. One can sit and
continue watching for hours together without getting bored.
The negative side of TV is that this media is producing millions of couch
potatoes all over the world. People spend lots of time watching TV, ignoring
other important things. A book, a newspaper or even the radio makes one think
and imagine whereas TV makes the person just watch. It just does not allow a

person to develop skills of imagination, visualization and thinking. It takes away

one’s valuable time without letting one know about it.
The integration of TV with the Internet and telecommunication technology
has made TV interactive. With its chat shows and phone-in programmes people
from various corners of the country can exchange ideas and thoughts and
express themselves on a particular subject, all at the same time.
TV is a democratic medium that conveys the same message at the same
time to everyone from masses surviving in hutments to those living in huge
mansions. It has the power of conveying the views and opinions of important
persons to common people and it also conveys the problems and grievances of
the common man to the concerned authorities. In a multilingual and multicultural
society, like in India, TV establishes harmony and uniformity in the society.
TV has the distinct characteristic of capturing the audiences’ attention which is

considered as the best tool for teaching and training mass audiences. Its audio-
visual presentation makes it more effective than radio that depends solely on
audio. From the very beginning, the experts were of the view that TV can make
difficult and tough aspects of various subjects interesting and easy to understand
through its distinct quality of demonstrating them visually with a better
presentation.
State University of Iowa used TV as an instructional medium in 1932 on an
experimental basis. Since then there is no looking back and many universities,
private organizations and various governmental departments have started using
TV as an instructional medium not only in the field of education but also in the
arena of health, environment, etc. all over the world.
In India, since its inception, television was considered as an appropriate
and efficient tool which could be used in education and development. Educators
planned out a project for imparting education to schools. This first developmental
project of Indian television was designed for the secondary schools of Delhi.
The broadcasts were syllabus-based and their aim was to improve the standards
of teaching science. Very few schools had laboratories, equipments and well-
qualified science teachers. This new teaching method was welcomed by the
students and teachers. This project was made possible with the financial aid by
the Ford Foundation. In 1969, UNESCO found in a survey that students in the
schools having television sets performed better than the students in other
schools. In those days few schools and individuals owned television sets.

A specially designed project called “Krishi Darshan” for farmers was started
on 26 January 1966. The aim was to inform the farmers about the latest
developments in agriculture and new techniques of farming.
Activity 2
Visit a local TV station and see how the news is recorded.

(a) BBC began its telecast in 1936 from_______.
(b) In Berlin, the pictures were produced on a film and then scanned
using ______.
(c) TV in India appeared on __________ in New Delhi.
(d) ___________ designed this machine to record TV programmes on
a magnetic tape
(a) In 1884, a German scientist Paul Nipkow experimented with a rotating
disk containing small holes and found that this device of his can
work as a scanner.
(b) State university of Illinois used TV as an instructional medium in 1932
on an experimental basis.
(c) A specially designed project called “Krishi Darshan” for farmers was
started on 26 January 1966.
(d) The Americans launched Sputnik on 4 October 1957.
3.4 New Media
The last two decades of the 20th century made a remarkable period from the
point of view of media and communication technology. It was also a period of
the emergence of Internet, globalization and expansion of markets.
The advances of information technologies not only realized the dream of
Marshal McLuhan who invented the technology of Internet, they also changed
the technologies of print, radio and television.

The unceasing innovations in telecommunication technology not only helped

the growth and expansion of the Internet, it also paved the way for a new media
nowadays popularly called mobiles. Mobile technology in convergence with
information technology has enormous potential in the days ahead.
3.4.1 History of Computers and Internet

The innovation of the first computer called Mark-I is as recent as 1940, though
the origin of computers is traced to 3000 years back when the first computing
machine known as Abacus was developed in China. Later, Charles Babbage
was credited with the hypothesis which allowed the invention of the computer.
The development of computers in the initial 15 years was very slow as the
vacuum tubes were used in them. The ENIAC (Electronic Numerical Integrator
and Computer) machine developed in 1942 was very huge as it used around
18000 tubes. It was only after the emergence of silicon transistor in 1954 and
the invention of integrated circuits around 1964 that the research and development
of computers gained pace. These two major inventions allowed the
manufacturing of small size computers.
Computers were not very popular in the initial days as one had to learn a
number of commands to operate them. They were mainly used by scientists
and researchers in general and the computer scientists in particular. It was only
in 1984 when the Apple machine innovated by Steve Jobs and Steve Wozniak
was launched in the market that the fancy for this wonderful machine caught on.
Apple was the first GUI (Graphic User Interface) machine which even a child
was able to use for making drawings or playing games.
The computer during these days became much more than number
crunching machines. They were mainly used as sophisticated word processors
in comparison to the recently developed electronic typewriters. Some people
also used these machines to make drawings or draw charts and graphs. A few
years later they became effective publishing machines when the software like
Ventura or PageMaker along with many other software for creating drawings or
digitalizing photographs were launched in the market.
3.4.2 Multimedia Technology, World Wide Web and Broadband

The next phase in the development of computers was of the multimedia
computers. These machines had the capability of digitizing visuals like
photographs, audio like speech and music with the help of software. The
technology of the Internet also developed very rapidly during the same period.
The Internet or World Wide Web (WWW) is a global system of interconnected

computer networks that use the standard Internet Protocol Suite (TCP/IP) to
serve billions of users worldwide. It is a network of networks that consists of
millions of private, public, academic, business, and government networks, of
local to global scope, that are linked by a broad array of electronic, wireless and
optical networking technologies.
All these developments necessitated researches on computer architecture
to increase the speed of processing and on telecommunication technologies
for increasing the speed of data transfer across telephone lines.
The multimedia messages require more space to store them. This led to
a rapid growth in storage media where one moved away from 1.44 MB floppies
to 650 MB CD ROM and later to DVDs. Capacity of hard disks increase from 10
MB to 10 GB and 1 TB (terabyte). The computer architecture improved from the
primary 8086 processors with 8-bit architecture to 286, 386, 486, Pentium and
PI7 with 16-bit to 64-bit architecture. The processor speed increased from the
initial 5 MHz to 3.2 GHz. Similarly, the modems used for transmission of data
became redundant as the Internet improved from the text only form to multimedia
web. The data transmission moved copper wires highly efficient optical fibres
capable of broadband transmission.
The World Wide Web (WWW) too has changed the generation to web2.0
which is increasingly used not only for audio and video uploading and downloading
but also for social networking. It has become a more popular media than radio
and television. WWW also has a literacy component as the portals are being
used to read news and other information. With online courses and books, the
Internet has also become an educational tool.
This is just the beginning. In future, the Internet is expected to penetrate
every nook and corner of the society.
3.4.3 Mobile Communication

The advances in telephony surprised everyone. From being manual operator-
driven exchanges, it moved to automatic digital exchanges which made it possible
to get connected with people anywhere in the world instantly. Then, the
telecommunication technology got revolutionized by wireless radio
communication and later incorporated satellites in its operations.
The cumbersome telephones have been replaced by handy mobiles of
ever diminishing sizes. The digital technology provided by the developments in
information technology allowed mobiles to become a convergent media that
can today be used to take snaps, listen to radio, view television programmes,

write messages and even articles along with its basic function of connecting
people with the help of voice communication. In this sense, it is the new media
for the future with lots of promises.
Interestingly, the mobile technology has seen a rapid and huge penetration
even in developing countries. In India alone it has grown considerably faster
than computers and the Internet. Today it is estimated that in India there are 700
million cell phones in operation.
Activity 3
Visit a cell phone shop and check out the latest equipment and features in
mobile phones. Write a note on what is the ‘in’ thing.

(a) The origin of computers is traced to 3000 years back when the first
computing machine known as ___________ was developed in China.
(b) ____ machines were the first GUI (Graphic User Interface) machines
which even children were able to use for making drawings or playing
games.
(a) Charles Babbage was credited with the hypothesis which allowed
the invention of computer.
(b) The first computer is called Mark-I.
3.5 Summary

• Before the invention of the radio and television long distance communication
was possible only by ships or horses.
• The invention of the radio and its popularity in Europe had a positive effect
on the spread of knowledge.
• The dot and dash telegraph was invented in 1844 by F.B Morse.

• A sixteenth century scientist, Giovanni Della Porta wrote about a device

that would be able to ‘write at a distance’, in his book Natural Magick.
• Inspired by Giovani’s imagination, Heinrich Rudolph Hertz invented a simple
transmitter and receiver in 1887.
• Hertz successfully sent a message by Morse code from England to
Newfoundland in 1901. The letter ‘S’ was the first Trans Atlantic message.
• The credit of inventing radio goes to many scientists including Marconi,
Hertz, Popov and Maxwell.
• The first real broadcast was transmitted from Pittsburg in 1920.
• Radio communication uses electromagnetic waves to transmit voice from
one point to another.
• Amplitude modulation or AM is the old method of broadcasting that is still
in use.
• Medium Wave signals have a typical characteristic of following the
curvature of the earth at all times.
• Shortwave is a high frequency, between 3000–30,000 kHz. The
wavelengths in this band are shorter. SW radio is used for long distance
communication.
• Edwin Armstrong developed a new kind of radio signal based on frequency
modulation. He used broader bandwidth to give interference-free reception.
• Satellite radio is a digital radio signal relayed through satellites hence can
be received in a much wider geographical area than terrestrial AM and FM
radio. Satellite radio services are subscription-based and are provided by
commercial companies.
• As an audio medium, the radio is cost-effective and has a wide reach.
• In 1884, a German scientist Paul Nipkow experimented with a rotating
disk containing small holes and found that this device of his can work as
a scanner. The disk, known as Nipkow disc, produced patterns of electric
impulses required to transmit pictures. This device became an integral
part of the technology of transmitting images. Even today, this scanning
concept is a standard component of television.
• TV is an audio-visual medium. It provides visuals along with sounds. Due
to this distinctive feature TV dominates over other media of mass
communication.

• Radio, films, television and the new media make it easier for us to
communicate with many people at far flung places.
• The recent growth and expansion of computers and the Internet has
opened a new and powerful mode of communication which was
unimaginable three decades ago.
• The Internet, supported by computer technology, has several advantages
over other forms of media.
• The growth of media technologies has propelled human beings to higher
levels of civilization. Today we have various tools to communicate at
different levels, i.e., from interpersonal to mass communication.
3.6 Glossary
• Broadcasting: The transmission of radio and television signals over air

from fixed terrestrial transmitters
• Hertz (Hz): Measurement of frequency of one cycle per second
• Cable television: A television broadcasting system in which signals are
transmitted by cable to subscriber sets
• Amplitude Modulation: Sending a signals by varying the height of a wave
• Frequency Modulation: Signals that convey information over a carrier
wave by varying its instantaneous frequency
• Short wave (SW): A system of broadcasting in which the signal is bounced
from the ionosphere to a location
• Bandwidth: The width (i.e., range of frequencies) of a channel or signal
carried between a transmitter and a receiver
• Broadsheet: 600×380 mm (23.5×15 inches), generally associated with
newspapers
• Tabloid: Half the size of broadsheets at 380×300 mm (15×11¾ inches)
• Multimedia: The combination of various forms of media (texts, graphics,
animation, audio, etc.) to communicate information
• HDTV: High-definition television (or HDTV, or just HD) refers to video having
resolution substantially higher than traditional television systems
• Supplements: An additional section of a newspaper devoted to a specific
subject

• Digitalization: A word for the computerization of all data transmission,

storage and processing employing the binary code, and as such the basis
for convergence of media
• Convergence: The process of coming together or becoming more alike;
is usually applied to the convergence of media technologies as a result of
digitalization (computerization)
1. Write a note on the evolution of the radio.

2. What are the advantages and disadvantages of radio as an audio medium?
3. Write a note on the invention of the television.
4. Describe the use of the television as a communication medium?
5. What is the importance of multimedia computers?
6. Write a note on the growth of mobile communication.
3.8 Answers
1. (a) Natural Magick; (b) Heinrich Rudolph Hertz; (c) 1926; (d) AIR
2. (a) True; (b) False; (c) True; (d) True; (e) False
3. (a) Alexandra Palace, London; (b) Nipkow’s model; (c) 15 September
1959; (d) Charles Ginsberg
4. (a) True; (b) False; (c) True; (d) False
5. (a) Abacus; (b) Apple
Answer to Terminal Questions



3.9 Further Reading
1. Hanson, Jarice. 1994. Connections: Technologies of Communication York:

Harper and Collins Publishers.
2. Hartley, John. 2002. Communication, Culture and Media Studies: The Key
Concepts. New York: Rout ledge.
3. Kumar, Keval. 1981. Mass Communication in India. Mumbai: Jaico
Publishing House.
4. Natarajan, J. 1990. History of Indian Journalism. New Delhi: Publication
Division.

Unit 4 Print Media: Evolution and Reporting
Structure
4.1 Introduction
Objectives
4.2 Early Days of Print Media
4.3 Genre of Print Medium
4.4 Reporting
4.5 Summary
4.6 Glossary
4.8 Answers
4.9 Further Reading
4.1 Introduction
In the previous unit, you learnt about radio and television— two important forms
of mass media. Print media is another important form of mass communication.
In this unit, you will learn about the various aspects of print media. Print can be
defined as a medium that disseminates writing or textual matter. Printing is
defined as a process that involves the use of ink, paper and a printing press for
reproducing text and image. It is a technique that is an integral part of publishing.
The technology of printing using a printing press allows a large-scale production
of the same matter.
Print media usually refers to newspapers. Newspapers collect, edit and
print news reports and articles on different issues. Some newspapers are
published in the evening also. They are known as eveningers. Print media has
been doing remarkable service by providing information and transfer of
knowledge. It makes a longer impact on the minds of the reader, with more in-
depth reporting and analysis. This is why it has not lost its charm or relevance
even after the advent of electronic media. Reporting in print media includes
almost all walks of our life, such as civic affairs, culture, politics, civil
administration, healthcare and crime.
Objectives
• Describe the origin of print media
• Distinguish between different print media
• Discuss the features of early printing

• Categorize the different types of reporting
4.2 Early Days of Print Media
Printing has covered a long journey starting from wooden block printing that
was in practice in China and Korea much before Johannes Gutenberg designed
movable types made out of molten metal alloy and a printing press in mid-
fifteenth century. Lots of efforts were made by him to cast right type of letters,
developing right type of ink that he made from lamp black mixed in an oil-based
varnish and combining together all these important components for the use of
printing. It is said that it took him almost 20 years to bring this system into
practice. His system is considered as the first revolution in printing technology.
Fannie Farmer
In order to get her first cookbook published (in 1896), Fannie Farmer had
to pay Little, Brown and Company the printing costs of the first 3,000 copies.
Publishers refused to take the risk, declaring that women would not buy yet
another collection of recipes. They were wrong. Farmer’s Boston Cooking
School Cook Book eventually became the most popular cookbook of its
time and a “gold mine” for Little, Brown. To date, millions of copies have
been sold in dozens of editions.
The second revolution in printing technology came at the end of the

nineteenth century. Two methods of mechanical typesetting were invented that
speeded up the process of setting the type in metal. They were monotype system
and line casting. The third revolution was phototypesetting. Finally, Desktop
Publishing [DTP] is considered the fourth revolution in printing. The DTP system
has brought dramatic changes in the printing industry. Till date it is the widely
accepted system in printing.
Printing originated with letterpress. It is also known as relief printing. In
this system, the image to be printed is raised in relief above the surface that
carries it and the non-printing area is depressed. When ink is applied on the
image area only the raised surface gets the ink. This is pressed against the

paper to get the impression. The depressed area leaves no impression on the
paper. Platen, flatbed cylinder and rotary are the types of processes engaged in
letterpress printing.
Platen press involves two plain surfaces. Paper is placed on one of the
surfaces, known as platen. The other surface on which the arranged images
are set firmly is known as an image-carrier. Ink rollers pass the ink across the
images, paper is fed by inserting it between two flat surfaces and printing is
done by bringing these surfaces together. It is a slow system but is best suited
to print letterheads, cards, flyers, forms and leaflets. Embossing, die-cutting,
creasing, perforating and hot-foil stamping can be done by platen press.
Flatbed cylinder press is a further developed process having two features.
First, the steam power was used to operate the press and second, one of the
printing surfaces was cylindrical. As there was a revolving impression cylinder
and the machine was power driven, the printing speed was quite high. It could
print for longer hours and on large sized papers.
A further improvement in letterpress printing was observed by making
both the surfaces cylindrical. This was rotary press system. It is faster than
flatbed press because of the continuous action of cylindrical image-carrier. Once
the rotary letterpress was used in the newspaper industry, but now it has been
replaced by offset presses.
Offset printing is actually a modification of the lithography process where
the image to be printed is drawn back-to-front with greasy ink on a flat surface
of a stone slab. In the early nineteenth century lithography press was used for
commercial purposes. It could not be used much for the purpose of mass
production as the stones are in short supply, expensive, difficult to store and
easily breakable. The lithography process was improved in 1889 by replacing
lime stones with grained metal plates of zinc. Then the offset printing came
where in place of two, three surfaces are used. An offset press is also rotary
having a dampening unit as an additional operation system besides feeding,
inking, printing and delivery systems. There are three cylinders. They are a
plate carrier, a rubber blanket and an impression cylinder. Dampening unit is
used in coating the plate with water. The offset system occupies less space and
the speed of printing is faster.

Gerhard Scholem
‘“1917. Gerhard Scholem had declared himself to be a Zionist, and was
openly preparing for emigration to Palestine. Two years earlier, exposed as
the author of an antiwar flyer circulated by a Zionist youth group, he had
been expelled from high school.
“Arthur Scholem [Gerhard’s father] had devised a punishment of Prussian
thoroughness. A businessman, he was demanding, authoritarian,
uncompromising, practical above all; he presided over a successful printing
enterprise and a household that could keep both a cook and a maid.
“At Christmas, there was an elaborately decorated tree, surrounded by
heaps of presents. When Gerhard was fourteen, he found under the tree a
framed portrait of Theodor Herzl, the founder of modern Zionism. ‘We
selected this picture for you,’ his mother explained, ‘because you are so
interested in Zionism.’”
The most recent and the most revolutionary invention, in the field of printing
technology, is that of desktop publishing (DTP), which is a new way to create a
print document in less time and cost. Supported by the Internet technology of
data transfer, it has given a new lease of life to newspapers in this age of
advanced technology like television and online journalism.
The details of this technology will be discussed later in this unit while
describing the advances of information technology.

(a) Platen press involves _________plain surfaces.
(b) _____________ is actually a modification of the lithography process
where the image to be printed is drawn back-to-front with greasy ink
on a flat surface of a stone slab.
(a) DTP is a new way to create a print document in less time.
(b) Platen, flatbed cylinder and rotary are the types of processes engaged
in letterpress printing.

4.3 Genre of Print Medium
The emergence of print medium has been a big achievement for man as it has
not only allowed to store and disseminate knowledge, it has also allowed us to
communicate in numerous ways in print. Books were the very first forms that
were printed and distributed, followed by periodicals, which soon gave place to
newspapers. People used print for pamphlets and handbills for advertising and
political propaganda. Magazines in weekly, fortnightly, monthly and bimonthly
periodicity were developed at a later stage.
In the following passages, we will look at various genres of print in order
to understand its power and reach.
4.3.1 Books
Everyone would agree that books are an invaluable source of knowledge. As
we have seen earlier, books were present even before printing was invented,
but they used to be in the form of manuscript. Books helped people to think
individually and make discourses that would have been difficult in speech. In
this way, we can say that books not only stored knowledge but also paved the
way for the development of knowledge.
There are many types of books and each one can be viewed with a different
approach. Books can be classified according to their content. They are broadly
either fiction or non-fiction. By no means are books limited to this classification.
Fiction and Non-Fiction
Most books published today are fictitious stories. They are in-part or completely
untrue or fantasy. Historically, paper production was considered too expensive
to be used for entertainment. An increase in global literacy and print technology
led to the increased publication of books for the purpose of entertainment, and
on many social issues that are allegorically called social commentary.
The most common form of fictional book is called the novel that contains
stories that typically feature a plot, themes and characters. Stories and narrative
are not restricted to any topic. In a way we can say that modern literature would
not have benefited with this and other genre without the presence of the
technology of printing. Comic books are a genres of books in which the story is
not told, but illustrated.

There are reference books that provide information as opposed to telling

a story, essay, commentary, or otherwise supporting a point of view. An
encyclopedia is a book or set of books designed to have more in-depth articles
on many topics. A more specific reference book with tables or lists of data and
information about a certain topic, often intended for professional use, is often
called a handbook.
There are books with technical information on how to do something or
how to use some equipment. There are textbooks that help the students in their
studies in various disciplines.
There are several other types of books which deal with various subjects
in various formats and have different objectives. There are books on photography
having a major part of the content inform of photographs. The Life and Time
publications series of books on various topics like forests, marine life, automobile,
architecture, etc., have many visuals along with the text and provides an entirely
different experience of reading books.
4.3.2 Periodicals
A periodical is a published text that appears at regular intervals. It can be weekly,
monthly, bimonthly, quarterly or an annual. In early years, almost all newspapers
were like periodicals. Even now, some small newspapers publishing from various
small towns and remote areas can technically be considered as periodicals as
they are not published daily, though they are called newspapers. Some examples
of periodicals are newsletters, magazines, journals and annual reports. There
are some exceptions as far as their naming is considered, for instance, The
Wall Street Journal is actually a newspaper and not a journal.
The first issue of periodical Review was established in London in 1704.
This periodical of four pages was like a weekly newspaper, yet it was different
from early newspapers as it focussed on articles on domestic and national
policies. Daniel Foe, the founder of Review edited the first issue from New Gate
prison where he was kept for his critical views on certain policies of the Church
of England.
The first magazine was published in late eighteenth century in London for
the affluent class of the society. It was called The Gentleman’s Magazine. It was
edited by Edward Cave who for the first time used the term “magazine” for his
periodical. The term magazine has its roots in the Arabic word “makhaz” meaning
a place to store things or a storehouse. In Russian, shops, where things are
kept or stored for selling, are known as magazines.

Magazines are a medium that present opinion and analysis of issues in

depth which is practically not possible in case of newspapers. As they are not
published daily, magazines get enough time to work upon the issues to present
research-based articles and stories in detail. Magazines help masses in building
opinions on specific social, political and cultural issues concerning them and
their society.
Usually magazines cover a variety of subjects like art, cinema, politics,
religion, literature, etc. They cater to the needs of everyone. There are some
other magazines that are concerned about specific subjects like politics, cinema,
tribals, literature and so on. Such magazines are targeted to a specific audience.
Magazines for children, women, students, business community, etc., also fall
under the same category.
With the growth of industry and various market trends, the tastes and
needs of the masses have changed in recent years. Publishers understand
their market. Hence, today we see a variety of magazines on automobiles,
home decoration, real estates, mobiles, computers, etc.
Magazines are also available online. They share some features with blogs
and online newspapers. Online magazines are also called webzines. The suffix
“ezine” here refers to their distribution carried out electronically where “zine” is
an abbreviation of the word magazine.
Though magazines are also kept and preserved in libraries along with
other books, there was a time when people collected and preserved the issues
of their favourite magazines in their homes. The knowledge and information in
them never exhausts with changes in time.
4.3.3 Newspapers
A newspaper is also a periodical. It is published at regular intervals. Reports,
articles, editorials, features, notices, advertisements, cartoons and photos are
some of its contents. It is printed on a low grade paper that is not expensive and
is known as newsprint.
A newspaper covers a variety of topics. There are some newspapers that
concentrate on a specific topic for instance, a business newspaper covers all
information regarding business and economy and issues that affect the business
or essentials of business. A newspaper of general interest caters to the needs
of everyone by covering stories on national, international regional, political as
well as social events. It also informs us on business, crime, sports, literature,
fashion, films and other entertainments like puzzles, comic strips and features

on food, places, personalities and fine arts. Weather reports, forecasts and
horoscopes are other attractive features of a newspaper.
A newspaper is known by its editorial writing. In fact, the editorial page
reflects the policies and ideology of a newspaper. The editorial page contains
editorials written by the editor or by the editorial team on current issues, articles
by guest writers expressing their opinions on certain issues and letters to the
editor.
Newspapers can be categorized on the basis of their periodicity. A daily
newspaper is issued everyday and a weekly newspaper appears once a week.
Weekly newspapers are usually small newspapers appearing from districts or
small towns. They depend on mainstream major papers for their contents on
international and national issues.
On the basis of size, newspapers can broadly be classified in two
categories, namely, broadsheets and tabloids. The size of a broadsheet is
23.5×15 inches. Most of the dailies are of this size. A tabloid is 11.75×15 inches,
i.e., half the size of a broadsheet.
Newspapers that circulate nationwide are known as national newspapers.
Most of the big newspapers have their regional offices at various cities in order
to extend their reach. Local newspapers are area specific. There is still another
category of international newspapers the contents of which are repackaged as
per the needs and tastes of foreign readers. This type is uncommon in India but
as almost every national newspaper is available on the Internet, they too can be
read worldwide.
In the last few decades due to the growing markets, newspapers have
become more colourful with a bundle of advertisements and celebrity news.
Most of the newspapers are coming with various types of supplements to cater
to the needs of various sections of the society and also to keep up with the
recent trend of value addition.
4.3.4 Posters, Pamphlets, Flyers and Brochures

A piece of printed paper that is clipped to community boards, pasted on walls or
simply hung on the doors and trees is known as a poster. A poster includes
textual as well as graphic information. Some varieties of posters are completely
graphical or textual representations.
Generally, posters are designed to attract the attention of the masses.
Hence, they are attractive, colourful and eye-catchy. They are used in
propaganda, protests, advertising or simply inform people about any event.

Posters
Since decades, people have been using posters in various forms like placards
and poster bills. We see agitators holding placards in rallies; even at airports
one can see people holding placards with the name of the person they are
looking for written on them. Often in markets or in our colonies we see some
information regarding sale or tuitions printed on a piece of paper and pasted on
the walls. This is also a form of poster that is used for the purpose of
advertisement.
Earlier, posters were either drawn or painted manually. The technique of
lithography was invented in 1796 followed by chromolithography that allowed
for mass production of posters. These techniques were found to be excellent
for printing and producing colourful posters. By 1890s the art of poster making
and designing spread all over Europe and toward the end of the nineteenth
century this era came to be known as “Belle Époqu”’ because of the newly
emerged poster art. The rise of pop art culture on one hand and protests
throughout the West in 1960s on the other led to the use of posters. During the
Paris Students Riots in 1968 posters of revolutionary leader Che Guevara
became a symbol of rebellion. This poster was designed by Jim Fitzpatrick.
Soviet Union posters during the Great Patriotic War and a recently stylized
political poster by Sheard Fairey “Hope” are some other examples.
Advertising posters are used for films, books or event promotions and
also for inviting audiences for music and dance recitals and pop shows. Till
recently, Bollywood film posters were in high demand by the producers. Posters
are also used for academic purposes in promoting and explaining the theme of
seminars and conferences. Posters are being widely used in protecting
environment, saving wild life, and maintaining peace and harmony in the world.
Pamphlets
UNESCO’s Institute of Statistics defines a pamphlet as a non-periodic printed
publication of at least firty-nine pages exclusive of the cover pages. A pamphlet
is an unbound booklet. It does not have a hardcover. It may consist of a single
sheet of paper, printed on both sides and folded usually in half. According to the
volume of the matter and size of the paper, it may be folded in thirds or in
fourths. It contains information about a product or service.
When we buy an electric appliance, medicines, computers or mobiles,
we get a folded sheet of paper mentioning on it “how to use” instructions. This
is a pamphlet. Actually pamphlets play a very important role in marketing

business. They are usually inexpensive and can be distributed easily to

customers. They can be used in political campaigning. They are also referred
as leaflets.
Flyers
Flyers or handbills are a single page unfolded leaflets usually meant for
advertising services or products. They can be used by individuals in promoting
their businesses, products, services or any special cause. Flyers can be handed
to people in shopping complexes. They are cost-effective and are considered
as a very reliable form of direct marketing or advertising. We get a variety of
flyers in between the folds of newspapers—they may be simple, colourful, printed
on coarse, dull or glossy paper, small or large.
Brochures
A brochure is a type of pamphlet or leaflet. It can be a single sheet or can have
multi-sheets. In the latter case, it is stapled on the creased edge. A brochure
uses high quality paper; it is more colourful and is folded. It contains information
and sometimes photos or graphics as well. Theatres circulate brochures amongst
their audiences before the play or concert starts, mentioning the castings and
details of the programme. Hospitals and hotels offer brochures to their visitors
informing them about their services.
Brochures are often printed on glossy paper. Professional and high quality
brochures are produced using in design, Quark Express and Adobe Illustrator.
There are various types of brochures like sales brochures, corporate brochures,
travel, company and marketing brochures.
4.3.5 Print as a Medium

Print has made a lasting impact on the society. The print media has been
established more than three centuries ago and emerged as the sole media of
mass communication. It has seen many revolutions has been, and still is the
biggest reservoir of knowledge accumulated over many centuries in the form of
books.
In fact, many scholars believe that written and print media are responsible
for ushering in the revolution of science and technology. We learnt many different
ways of expressing with the help of print medium. Pamphlets, posters,
newspapers, magazines and reference books can all be attributed to print media.
The contribution of print to democracy is enormous as everyone today
would acknowledge that newspapers and magazines are the lifelines of modern

democratic societies. They help people to become informed citizens and

empower them to debate and discuss various issues concerning the society.

(a) A more specific reference book with tables or lists of data and
information about a certain topic, often intended for professional use,
is often called a______.
(b) The first issue of periodical Review was established in_______ in
1704.
(a) Edward Cave coined the term magazine.
(b) Magazines are not available online.
4.4 Reporting
In this section, you will learn about various types of reporting, such as crime
reporting, court reporting, healthcare reporting, civil administration reporting,
civic affairs reporting, culture reporting and political reporting.
4.4.1 Crime Reporting

What constitutes crime? The dictionary meaning says crime is “a wrong act that
is against the law” or “a violation of law” and it is also defined as an act or
omission punishable by law.
Crime is an important beat in big, medium and small newspapers because
it is the inseparable part of city coverage. The reason is that people take
considerable interest in them. Sex and crime have the highest rating points in
media in terms of sale. The mass media cannot afford to paddle sex for the fear
of moral police in India, but they do carry crime stories to a considerable extent.
Crime stories are widely read and add to the circulation of a newspaper and
establish its credibility as well.
Crime is the dark side of human society and is associated with negative
manifestations of human nature and behaviour. Despite its dark connotations it
holds a tremendous attraction for the common man and that is why stories
related to crime are taken very seriously by the readers. Like other news stories,

it is imperative for a newspaper to inform its readers about the incidents of

crime that are happening in the city, state, country or the world. Crime reporting
is one of highly responsible and a specialized job, though mostly it is assigned
to a junior reporter or a cub reporter.
Fortunately, the police beat is considered as the best training ground for
future investigative and diplomatic correspondents. As Richard Critchfield writes
in The Indian Reporter’s Guide,
While speech reporting trains the ear and sports reporting the eye, crime
coverage gives the new reporter a broad range of events on which to
exercise his talents, usually providing action stories with narrative as
well as human drama.
The point can be driven home with the help of an example. The crime
reporter of a local newspaper got a tip-off that two children aged 12 and 8
years, respectively, had drowned in a pond. The police simply registered a case
of accident. When the reporter visited the accident spot, he spoke to several
people some of whom claimed to be the eyewitnesses. There was so much
variation in their statements that he began to suspect a foul play. Then he asked
for a long bamboo which he inserted in the pond and was shocked to discover
that the pond was only three feet deep. Autopsy report of the children indicated
that there was mud in the nails of deceased children. When he reported the
matter in his newspaper in all its sordid details, the police had to change the
case from accident to murder.
Crime stories seem to be more of a staple diet in evening papers than the
morning dailies. At any given day, you find screaming headlines in evening
papers selling at traffic intersections or outside local train stations or metro
stations. Since evening papers are published mostly from the major cities, it is
easy to infer that the crime is largely urban in nature and is of major interest to
urbanites. During the yesteryears, dacoity in Chambal area constituted a major
part of crime stories throughout the country and you know very well that it is a
rural crime.
Ingredients of a Crime Story
How does one report crime cases? Here a partial list of questions to be asked
by a reporter is given:
Casualties: Was anyone killed? If so, how? Similarly, was anyone injured?
How? What were the weapons used? What happened to the dead? Was a well-
known person killed?

Property Loss: What was the value of property lost or damaged? What exactly
was stolen, defaced or destroyed?
Method of Crime: How was the crime committed? What weapons, if any, were
used? How were the victims treated by the criminals? Was this a repetition of
any similar crime?
Motive: What moved the criminal to commit the crime? What did the victims
report? What did the police or other witnesses have to say?
Arrest: State the names of arrested people, along with their age and occupation.
What formal charge was preferred? How did the police apprehend the criminals?
Where were they taken to?
Clues: Did the criminal leave behind him any clues? What clues did the witnesses
provide? What clues are the police investigating? Is a description of the criminals
available?
Activity 1
Read a recent crime story published in a local daily and find out whether
the different ingredients of a crime story are present in it.

(a) ________ is defined as an act or omission punishable by law.
(b) The _________is considered as the best training ground for future
investigative and diplomatic correspondents.
Crime as news
The crime news comprises many types. It may range from rape, kidnapping,
blackmail, fraud, burglaries, robberies, accidents, fires and murders.
1. Fires
Fires are common occurrences throughout India. The number of fire incidents
mysteriously goes up during summers, particularly in slums. While reporting a
fire incident, the reporter should take care to get the essential elements like
number of persons killed or injured, the quantum of damage to the property, the
loss of valuables, etc. He should also find out the response time of the fire

brigade and the swiftness of firefighting operations and the adequacy of water
supply. He should talk to eyewitnesses and look for some act of bravery or
cowardice.
2. Homicides
Murders, being sensational in nature, carry more news value. So they are
considered more important in crime reporting. The more high profile and
sensational a murder is, the more space it will get in the newspapers and will be
splashed with prominence. Murders like Shivani Bhatnagar murder, or, for that
matter, murder of Jessica Lal that even inspired a movie hogged headlines for
weeks to come. Arushi murder case is still in the news even after the CBI
recommended its closure. For reporting a murder case, the reporter should
ideally conduct his/her own investigations. This is possible to some extent in
small towns and state capitals, but in metropolitan cities like Delhi, Mumbai,
Kolkata or Chennai, the press depends on police for information and normally
there is a big time gap between their own investigations and the police version.
Ideally, a crime reporter should rush to the scene of crime as soon as possible
after receiving the tip-off from his/her sources and gather all the relevant facts.
The dependence of press on police in such serious matters like murder always
hampers the search for the truth. If you can groom yourself to investigate the
murders independently, your investigative skills will sharpen and the experience
of reporting crimes like murder will be a thrilling and exciting one. Besides, you
will also be able to see for yourself, how attempts are made to hush up such
cases. The experience will be useful for you in the due course of your career.
The following is a sample.
Exhibit 4.1
Teenage girl taken to Dwarka apartment, killed; one arrested

Shalini Narayan New Delhi, November 18
A man was arrested for murdering a 16-year-old girl at his rented apartment
in Dwarka early on Saturday morning. The victim, a resident of West Delhi’s
Vikaspuri area, was reported missing on Thursday, when she didn’t return
from her tuition class. According to the police, the victim and the accused
were well-acquainted.According to the police, the victim, a resident of
Hastasal village in Vikaspuri had left for her tuition class at 3.30 pm on

Thursday. At 6.30 pm, she reportedly told a friend of hers to go home,

stating that she would come home later by bus. But the girl never returned.”
She left with the accused to his rented apartment in Dwarka,” said a senior
police officer. The accused, identified as Om Yadav (28), a construction
material vendor residing in Vikaspuri, allegedly took the girl to his Janata
flat no 1481 in Sector 16, Dwarka. Meanwhile, the family—clueless about
the victim’s whereabouts—registered a case of kidnapping with the Vikaspuri
police station the following day. The victim’s elder sister reportedly told the
police that she received a call from an unknown number around 8.46 am
on Friday. “It was my sister. All she said was didi, and started crying,” she
mentioned in an FIR. Investigators are currently trying to identify the source
of the call. People residing in the victim’s neighbourhood disclosed that the
girl and the accused had been seen together on several occasions. Yadav
was detained for questioning, following which he disclosed that he had
rented an apartment in Dwarka 15 days ago. Deputy Commissioner of
Police (West) V Renganathan said, “We found the victim’s body with her
throat slit at the apartment this morning. Her body has been taken for a
post-mortem examination.” When Newsline reached the flat, located in
pocket B of Dwarka, it was found locked. However, through an open window
of the one-bedroom apartment, one could see a single bed, a television set
placed in a corner, bottles of water and soft drinks arranged a top a small
refrigerator. In the backyard, the police found four bottles of Corex cough
syrup and a few used contraceptives.” We are waiting for the medical
examination report to check if the victim was raped or not,” the officer said,
adding that a dagger has been recovered. The accused has admitted his
guilt, the police said, adding that nobody else was involved in the crime.
Renganathan said, “We have arrested the accused. Earlier, we had filed a
case of kidnapping under Section 363 of the IPC. Now we have registered
a case under Section 302 of the IPC (murder).” The victim, a class XI
student, was living with her parents and two siblings in Vikaspuri. Her father
was a hawaldar in the Army. Caution, however, should be taken and the
reporter has to refrain from leveling uncorroborated statements against
one party or the other. There are always vested interests out to take the
reporter for a ride. So a crime reporter has to get his/her facts right by
talking to the IO (Investigating Officer) and the eyewitnesses or relatives of
the victim(s) and s/he should do proper cross-checking before including
any fact in his/her report.

3. Accidents
Newspapers report cases of accidents on the basis of police bulletins or
information given by the police spokesman only. Reporters are sent only to
cover major cases of accidents like building collapse or landslide. However, our
suggestion is that as a crime reporter you should rush to the scene of a major
accident to give authenticity to the story.
4.4.2 Court or Legal Reporting

There are courts of law in most of the Indian cities. They exist even in small
towns. In any democratic country that abides by law, there are several courts
with different jurisdictions. In places where there are few courts, new ones are
being established. You may wonder why it matters. How a large number of
courts are related to court reporting? Well, it does have a bearing on it. Earlier
what mattered in India were only the criminal cases and newsworthy hearings
and orders of high courts and the Supreme Court. It was for the simple reason
that no newspaper could afford covering all the courts during the initial days.
However, in the age of judicial activism and public interest litigation, the coverage
of courts has definitely gone up in the newspapers. The newspapers have no
option but to turn a blind eye towards civil courts where endless number of
cases are pending which keep lying dusting for years together. Youngsters file
the cases and they grow older, in some cases litigants have passed away but
the cases are yet to be resolved. So it is obvious that when even the litigants
lose the interest, we cannot expect more from the readers?
Court reporters and legal correspondents
These days almost all the newspapers that matter have full-time correspondents
for their court beat. Normally, these are law graduates who have fair knowledge
of law and legal proceedings. In case of papers coming out of state capitals,
normally stringers do the job of reporting court cases. In many cases, these
stringers are professional advocates. Correspondents in the districts and smaller
towns— commonly called mofussil correspondents in newspaper parlance—
also cover court stories in their respective areas. Stringer means a part-time
reporter and these part timers belong to other professions like teaching, law or
in some cases business too. In some cases, the regular staff reporters visit the
court and cover important cases.
Sources of news in legal reporting
As we have discussed in the last units that the success of a reporter in any kind
of coverage depends on his/her contacts and sources. The capability of

accessing the records is also equally important. So these parameters of success

are applicable to court reporting as well. For a court reporter or a legal
correspondent, the key source to be cultivated is the clerk of the court, who is
responsible for maintaining the court records. It is he who makes the copies of
court proceedings available for a fee. Checking and re-checking of records is of
primary concern for a court reporter and that is an uphill task for him without
inside help. Besides, the reporter can also contact the judge in case the case is
too high profile. Though judges are hardly the sources of news, yet some of
them are definitely publicity minded. Further, the court reporter should also be
in contact with the lawyers who are dealing with the case. In case, there are
different lawyers in a single case, the reporter should strike a balance between
them and get the important information from them. However, care should be
taken to get a source which is as impartial as possible. The reporter should be
able to jot down notes in a crowded courtroom. In many cases, it becomes
difficult to get a seat in the court room. Besides, he should be fast in reporting to
his newspaper as those who work for afternoon papers or news agencies have
to be faster. In many cases, they are required to give updates even when the
court proceedings are going on. Following is a sample.
Contempt of court
A slight twist—voluntary or involuntary—can result in contempt of court which is
a serious offence on the part of a reporter. So you should take utmost precaution
to avoid any contempt of court. You can easily trace the law relating to contempt
of court from the Contempt of Court Act, 1971 and some other case laws.
Contempt can be a civil or criminal offence.
(i) Civil contempt: Civil contempt signifies willful disobedience to any
judgement, decree, direction, order or other process of a court, of willful
breach of an undertaking given by a person to a court. If there is ignorance
of the court order leading to unintentional breach, there will be no civil
contempt.
(ii) Criminal contempt: Criminal contempt is applicable when a piece of
writing or publishing of any material that scandalizes or brings down the
authority of a court; or interferes or prejudices with the due course of
judicial proceedings.
4.4.3 Healthcare Reporting

In India, with the boom in healthcare sector, the health beat has acquired
considerable importance and become a full-fledged beat. The preventive

measures to check the spread of diseases, issues related to public health at

large, availability of doctors and medicines in the hospitals, all these issues fall
under the jurisdiction of this beat. A health reporter has to keep an eye on all
these issues and report the developments accordingly to the newspaper.
As far as sources in the health beat are concerned, the reporter has to
maintain contacts with hospital staff and doctors. Sometimes when a VIP patient
is admitted to the hospital, this beat assumes added importance as we have
discussed in the last units that the people of prominence have considerable
news value.
A health beat reporter has to keep moving in hospitals and keep himself
abreast of developments. He should also have a rapport with the important
patients and staff members. In case any news breaks out, he must be in a
position to know the vital facts related to the incident. In majority of cases,
victims of crime also land up in hospitals and that is where health and hospital
reporter takes over from the crime reporter.
Since the hospitals are usually run by the health department of the
respective state governments, the job of a health reporter further extends to
keep in touch with the bigwigs of this department as well. He has to be aware of
the major policy decisions taken by this department and for this he has to be on
good terms with the biggest policy maker—the health minister. Following is a
sample story.

(a) The preventive measures to check the spread of diseases, issues
related to public health at large, availability of doctors and medicines
in the hospitals, all these issues fall under the jurisdiction of a
____________
(b) A health reporter has to be on good terms with the biggest policy
maker__________.
(a) In India, the healthcare sector has become a full-fledged beat
(b) A health beat reporter has to keep moving in hospitals and keep
himself abreast of developments

4.4.4 Civil Administration Reporting

Civil administration basically means the governance at the district headquarters
or divisional headquarters. A reporter whose beat is civil administration has
basically to report on the functioning of the Government at district or divisional
levels. That means functioning of the Collectorate which is a revenue-minting
machinery of the state government. The in-charge of this revenue-yielding unit
of the state government is the Collector or the District Magistrate who is a
representative of the state government responsible for running the district.
The office of a Collector or District Magistrate has several departments
looked after by deputy collectors, tehsildars and naib (deputy) tehsildars. Often
the district is divided into different tehsils. The revenue thus collected goes to
the treasury of the state government. Together the Collector and the
Superintendent of Police (SP) form a team that looks after the law and order of
the district.
A reporter that is assigned the civil administration beat has to maintain
contact with all the revenue authorities of the district. They are his sources of
information. He has to keep an eye on the activities of civil authorities in the
district, on development (or backwardness) issues and ensure a free and fair
reporting of these matters to his readers, he has to oversee the civil order.
However, reporting civil administration does not involve covering just tranquil
issues. It includes civil disorder as well.
Reporting civil disorder
As a reporter, you have to be cautious when reporting on a communally sensitive
matter. The simple reason behind this is that India is a country with pluralistic
religious and social diversities and various linguistic groups. To be biased towards
a particular faith, linguistic or social group would be unethical. You will have to
use your discretion with due respect for everyone.
The right or wrong depends upon the circumstances and a host of other
things. What one group may consider right, the other group may consider wrong.
The concerned communities may have a conflicting stand about a single issue.
Kashmir still happens to be a communal tinderbox. So the news organizations
have to be extremely careful about reporting the events of communal nature.
When the militancy was at its peak in Punjab during the early eighties,
reportedly a number of massacres of innocent people took place. In one case,
the terrorists stopped a bus of Haryana Roadways, singled out passengers
belonging to a particular community and opened indiscriminate fire on them.
However, the papers did not mention the community in their reports.

The same procedure is followed while reporting communal riots. The idea
behind this is to prevent any further tension building up between the communities.
This is the reason why places of worship affected in riots are not referred by
their names.

(a) Together the _______ and the Superintendent of Police (SP) form a
team that looks after the law and order of the district.
(b) The office of a Collector or District Magistrate has several
departments looked after by deputy collectors, tehsildars and
_______.
(a) The revenue thus collected goes to the treasury of the state
government.
(b) The District Magistrate is a representative of the state government.
4.4.5 Civic Affairs Reporting

The reporter assigned to local bodies such as a municipal corporation or urban
authority is responsible for reporting the meetings of civic bodies. His job also
includes analysis and reporting on matters of local administration, such as
development plans, housing schemes, road, water, slum and sanitation schemes.
What really make stories in this beat are inefficiency, maladministration and
corruption which are rampant in local bodies. The public looks up to them for
getting unbiased information.
In smaller towns, it is the municipality that deserves the media attention
for the coverage of local affairs. In district headquarters and state capitals it is
the municipal corporation that should be the focus of media. In bigger cities like
Delhi and Mumbai, it is the metropolitan council as well as greater municipal
corporations that must be in the priority list of the reporter. In Delhi, there are
Municipal Corporation of Delhi (MCD) and New Delhi Municipal Corporation
(NDMC) which serve as the news sources for civic affairs matters. There are a
lot of stories that are available in civic affairs beat. Such beats are known as
“newsy” beats as they are full of news stories.

The civic affair reporting is a good training ground for those reporters who
later develop their skills in legislature reporting. The coverage of meetings of
local municipal corporation enables the reporters to cover the proceedings of
state assembly or Parliament. Following is a sample story.
Exhibit 4.2
Debt-ridden, dengue-hit MCD had a tough year

The Times of India News Service
New Delhi, Dec 29
Year 2010 brought some successes and lots of miseries to the Municipal
Corporation of Delhi. The civic agency’s work largely involved Games related
projects, including streetscaping, streetlighting and creating parking space
near JN Stadium, but it failed to complete the projects on time.
Some work like the Chandni Chowk redevelopment project was not taken
up at all while at least three projects — upgrade of streetlights, Kushak
Nullah bus parking bay and road underpass at Sewa Nagar — came under
the CVC scanner. MCD workers were also deployed to carry out some last-
minute damage control by cleaning up the Games Village following criticism
by athletes over sanitation standards — mentioned by the ruling BJP several
times to claim credit for the “good work” done. Rising incidence of dengue
ahead of the Games also gave MCD a tough time.
MCD completed the construction of its much-awaited new headquarters at
the city’s tallest building, named Dr Shyama Prasad Mukherjee Civic Centre.
The “green building” will house all offices and wings of MCD. The 28-storey,
112m-tall building was inaugurated on April 22 by Union home minister P
Chidambaram but the civic agency has been unable to shift all its offices
there.
The Games projects and failure to tap more revenue sources made it difficult
for MCD to release arrears of the sixth pay panel on time to most of its
employees or make payment to contractors. The contractors staged a tool-
down strike, which was withdrawn only after MCD released a part of their
payment. Sanitation workers also held protests demanding timely wages.
In MCD’s 2011-12 budget unveiled in December, municipal commissioner
K S Mehra proposed a 5% hike in property tax citing the ` 2,800-crore
debt. BJP, the ruling party in MCD House, and opposition Congress said
they would oppose this.

Towards the year-end, the corporation faced criticism over its failure to
check unauthorized construction after a multi-storey building with two illegal
floors collapsed in east Delhi killing 71 people. MCD conducted a survey in
the area and issued notices to 638 buildings while some were demolished.
Four officials of the civic body were suspended after an internal vigilance
probe into the building collapse.
Activity 2
Visit the local municipality in your area and try to cover a civic affair story
which has been recently in news.

(a) In Delhi, there are Municipal Corporation of Delhi (MCD) and
________________.
(b) In smaller towns, it is the ______ that deserves the media attention
for the coverage of local affairs.
(a) The reporter assigned to local bodies such as a municipal corporation
or urban authority is responsible for reporting the meetings of civic
bodies.
(b) In bigger cities like Delhi and Mumbai, it is the metropolitan council
as well as greater municipal corporations that must be in the priority
list of the reporter.
4.4.6 Culture Reporting

Every town, city or metro in India possesses a cultural life of its own. There are
theatres, cultural activities and functions. Different activities related to art and
culture are organized in every city. There is a dedicated audience for such
activities. Many people want to update themselves about the events and
happenings on the cultural front. This is the reason why art and culture is a full-
fledged beat in a newspaper.

The reporter who is assigned this beat must have a good knowledge of
these activities. For example, if he has to report on a play that is being staged
in the city, he should know the inside out of elements that constitute a drama. In
many cases, the reporters go through the script in advance and then evaluate
the performance of the actors whether they did justice to their roles or not.
Same is applicable in case of dance performances and music. The reporters
that have a background in art and culture are usually assigned this beat. Following
is a sample story:
International film festival opens in Goa
Film star Shah Rukh Khan inaugurated the 42nd edition of the International
Film Festival of India (IFFI), Goa, by lighting the ceremonial lamp at the Ravindra
Bhavan at Margao on Wednesday evening, in the presence of Minister for
Information and Broadcasting Ambika Soni. Goa Chief Minister Digambar Kamat;
Secretary, Ministry of I&B, Uday Kumar Varma; actor Rituparna Sengupta; and
IFFI Director Shankar Mohan were among those who attended the event.
Chief guest Shah Rukh Khan, while expressing happiness on his being a
part of this cinematic extravaganza, shared his views on cinema as a medium
that bound people in a shared experience. Cinema was a modern art of
storytelling, “a collective focus addressed to all, open to all and including all.”
Ms. Soni stressed on the growing eminence of Indian cinema and
described the IFFI as an agent of the growing acceptance of Indian cinema.
This acceptance had given an impetus and an identity to the industry, making it
one of the most prosperous film industries of the world. “Let IFFI become truly
an international event, an international people’s festival,” she said.
Chief Minister Digambar Kamat spoke of his government’s plans to make
Goa a more desirable and a permanent destination for film shooting. Life Time
Achievement award, which was revived after almost 10 years, was conferred
on French film maker Bertrand Tavernier.
The event showcased an extempore painting by Mr. Vilas Nayak on Mr.
Tavernier, followed by the screening of a two-minute clip on the acclaimed
filmmaker. Ms. Soni presented him with a certificate, a cheque for Rs.10 lakh, a
scroll and a shawl.
Source: http://www.thehindu.com/arts/cinema/article2654028.ece
Accessed on 20 December 2011.


(a) In many cases, the reporters go through the script in advance to
____the performance of the actors whether they did justice to their
roles or not.
(b) A cultural reporter should have ample knowledge about
__________activities.
(a) A reporter should have good knowledge about culture and arts.
(b) A cultural reporter should not evaluate a performance beforehand.
4.4.7 Political Reporting

Political reporting is considered to be one of the most important beats in a
newspaper. It includes reporting activities, conferences and events concerning
political parties. Major political parties at the national level and even in the states,
generally have party spokespersons who regularly brief reporters about the
point of view of the party on issues of the moment. Mind you, it is absolutely
imperative for the political parties to remain alive in the newspapers. So they
keep doing something or the other to make their presence felt in the mass
media.
In any news organization, political reporting is considered very important.
Particularly in India, reporting politics has been a major focus of the press—a
legacy from the pre-independence period. Please remember that press in India
has a history of being a participant in the freedom struggle.
As a political correspondent or political reporter you should know the
leaders of major political parties; it will be your job to know them inside out. You
will also have access to the ministers and senior politicians. You would not only
be reporting political events but in several cases analyzing and anticipating
them as well. In this era of coalition politics, even the regional parties are playing
an important role at the national level. Hence political reporting from state capitals
has become equally important.
However, here is a major pitfall. As a political correspondent, the distance
between the reporter and the politician gets minimized. When Rajiv Gandhi
was the Prime Minister, the well known journalist M.J. Akbar had become friendly
with him. It was because both of them belonged to the same age group. Besides,

when Akbar interviewed Rajiv Gandhi for his newspaper, The Telegraph, he
was impressed with Rajiv and what many people say took a “personal liking for
the young Prime Minister.” Critics point out that due to this personal factor even
a journalist of this calibre lost his objectivity and impartiality. Later, during 1989
parliamentary elections, which proved Rajiv Gandhi’s waterloo, Akbar even fought
election from Bihar on a Congress seat.
Political reporting sometimes tends to take the shape of political activism.
Several journalists tend to become closely associated with a particular political
party so much so that their vision becomes blurred. Their writings become
persuasions primarily based on self-interest.
On the eve of elections, the parties hold press conferences to release
their manifestos, explain their policies and strategies for the election. Ever since
electoral politics has assumed prominence, political reporting has come into its
own. The party manifestoes arrive with a bang comprising best possible postulate
on social justice, fighting communalism, rural development, health, education,
in short issues which would go down well with the electorate. The very same
are publicized through various means such as press conferences, distribution
through organized outlets throughout the country and election speeches. This
takes the shape of unpaid political advertisement.
A reporter must not be seen as being the part of a political propaganda of
a particular party. To keep the sanctity of his profession his name should not
come to be closely associated with a particular party.
Political reporting is the most complex of genres of reporting, requiring
the journalist to go for detailed preparation and deep understanding of parties
and personalities, socio-economic factors and their interplay. The dependable
rule for the reporter in all events is to be non-partisan and to guard himself
against being drawn into controversy.
While covering a national meeting of a political party, the reporter will
have to explain not only what decisions are reached at the meeting but also
whether they represent any variation from the party’s past policy, what effect
these decisions are likely to have on the party’s future and their likely impact on
other parties. The reporter must be dispassionate and strictly adhere to the
rules of objectivity without attempting to project his own preferences.
A senior journalist S. Nihal Singh says:
It is not a reporter’s job to further his own political philosophy or bias by
tilting to one party or politician or the other. It is his job to assess a
situation as objectively as he can, draw his conclusions from a rigorous

examination of the often contradictory assertions he has gathered and,

based upon his experience and study and present an honest picture of
the trend.
The most difficult aspect of political reporting is to strike a balance in a
reporters’ relationship with a politician. By the nature of his job, he must cultivate
acquaintances with politicians and be privy to their confidences. Politicians, on
the other hand, naturally try to further their own or their parties’ interests and
are not too scrupulous about the methods of achieving their objectives. Following
is a sample of political reporting.

(a) The most difficult aspect of political reporting is to strike a balance in
a reporters’ relationship with a _________.
(b) Political reporting sometimes takes the shape of _____________.
(a) As a political correspondent or political reporter you should know
the leaders of major political parties.
(b) Political reporting sometimes tends to take the shape of political
activism.
4.5 Summary

• Printing is defined as a process that involves the use of ink, paper and a
printing press for reproducing text and image.
• Printing has covered a long journey starting from wooden block printing
that was in practice in China and Korea much before Johannes Gutenberg
designed movable types made out of molten metal alloy and a printing
press in mid-fifteenth century.
• Printing originated with letterpress. It is also known as relief printing. In
this system, the image to be printed is raised in relief above the surface
that carries it and the non-printing area is depressed.

• The most recent and the most revolutionary invention, in the field of printing
technology, is that of desktop publishing (DTP), which is a new way to
create a print document in less time and cost.
• Books were the very first forms that were printed and distributed, followed
by periodicals, which soon gave place to newspapers. People used print
for pamphlets and handbills for advertising and political propaganda.
Magazines in weekly, fortnightly, monthly and bimonthly periodicity were
developed at a later stage.
• The most common form of fictional book is called the novel that contains
stories that typically feature a plot, themes and characters. Stories and
narrative are not restricted to any topic. Comic books are a genres of
books in which the story is not told, but illustrated.
• A newspaper is also a periodical. It is published at regular intervals.
Reports, articles, editorials, features, notices, advertisements, cartoons
and photos are some of its contents. It is printed on a low grade paper
that is not expensive and is known as newsprint.
• The technique of lithography was invented in 1796 followed by
chromolithography that allowed for mass production of posters.
• Crime is an important beat in big, medium and small newspapers because
it is the inseparable part of city coverage.
• While reporting a fire incident, the reporter should take care to get the
essential elements like number of persons killed or injured, the quantum
of damage to the property, the loss of valuables, etc. He should also find
out the response time of the fire brigade and the swiftness of firefighting
operations and the adequacy of water supply. He should talk to
eyewitnesses and look for some act of bravery or cowardice.
• Murders, being sensational in nature, carry more news value. So they are
considered more important in crime reporting. The more high profile and
sensational a murder is, the more space it will get in the newspapers and
will be splashed with prominence.
• A reporter whose beat is civil administration has basically to report on the
functioning of the Government at district or divisional levels.
• A reporter that is assigned the civil administration beat has to maintain
contact with all the revenue authorities of the district.

• Political reporting sometimes tends to take the shape of political activism.

Several journalists tend to become closely associated with a particular
political party so much so that their vision becomes blurred. Their writings
become persuasions primarily based on self-interest.
4.6 Glossary
• Print: A medium that disseminates writing or textual matter

• Periodical: A published text that appears at regular intervals
• Crime: A wrong act that is against the law or a violation of law
• Poster: A piece of printed paper that is clipped to community boards,
pasted on walls or simply hung on the doors and trees
• Pamphlet: A non-periodic printed publication of at least fifty-nine pages
exclusive of the cover pages (UNESCO’s Institute of Statistics definition)
• Flyers or handbills: A single page unfolded leaflets usually meant for
advertising services or products
• Brochure: A type of pamphlet or leaflet. It can be a single sheet or can
have multi-sheets
1. Assess the evolution of print media.

2. Describe the various genres of print media
3. Write a short note on the importance of pamphlets, brochures and posters.
4. What are the ingredients of a crime story?
5. Write a short note on healthcare reporting.
6. What is the importance of cultural reporting? Cite an example for the
same.
7. Elucidate on the features of political reporting.

4.8 Answers
1. (a) two; (b) Offset printing

3. (a) Handbook; (b) London
5. (a) Crime; (b) Police beat
6. (a) Healthcare reporter; (b) Health Minister
8. (a) Collector; (b) Naib tehsildars
11. (a) New Delhi Municipal Corporation (NDMC); (b) municipality
13. (a) Evaluate; (b)Cultural
14. (a) Politician; (b) Unpaid political advertisement


4.9 Further Reading
1. Hanson, Jarice. 1994. Connections: Technologies of Communication. New

York: Harper and Collins Publishers.
2. Hartley, John. 2002. Communication, Culture and Media Studies: The
Key Concepts. New York: Rout ledge.
3. Kumar, Keval J. 1981. Mass Communication in India. Mumbai: Jaico
Publishing House.
4. Natarajan, J. 1900. History of Indian Journalism. New Delhi: Publication
Division.
5. Raghavan, G.N.S. 1994. Press in India: A New History. New Delhi: Gyan
Publishing House.
6. Rosengren, Karl Erik. 2000. Communication: An Introduction. London:
Sage Publishers.
7. Schramm, Wilbur. 1966. The Story of Human Communication. New York:
Harper and Row Publishers.
8. Williams, Raymond. 1976. Communications. London: Penguin Books.

Unit 5 Understanding Cinema
Structure
5.1 Introduction
Objectives
5.2 Audience for Films
5.3 Types of Films
5.4 Cinema Theatres
5.5 Cinematography
5.6 Film Censorship and Assessment
5.7 Summary
5.8 Glossary
5.10 Answers
5.1 Introduction
In the previous unit you learnt about the print media and the art of reporting.
Another popular media that has immense impact on the masses, especially in
India, is cinema.
The Lumiere Brothers introduced cinema to the world in 1895. Today, this
medium has grown to become an extremely potent and significant tool used by
people. It is the power and influence of cinema that puts people associated with
this world in a position to bring about change in society. Lenin had once
commented that of all the arts, it is cinema that is the most important. As Uncle
Ben had famously remarked to Peter Parker in Spiderman ‘with great power
comes great responsibility’, this is where the catch is.
On an average, filmmakers get 180 minutes to either showcase reality or
blatantly distort facts. An incident took place in Rajasthan with the release of
Jodha Akbar. Historians claimed that this film contained vague and incorrect
‘facts’ and did not portray the historical events accurately. They claimed that
Jodha was Jehangir’s, and not Akbar’s, wife. Another incident is that of Firaaq,
directed by Nandita Das, which received critical acclaim for its sensitive handling
of the Gujarat riots and its aftermath.
However, the detractors of cinema consider it as just a medium of
suspension of disbelief and a creative work of fiction.
In this unit, you will know about the various aspects of studying cinema:
how people watch films, where they watch films, the technical aspects of movie-
making and the scope of what is made by a film maker and what reaches its
audience. You will understand the importance of films within a culture and where
and how they fit into the broader range of entertainment activities that are offered
to audiences.
Objectives
• Classify audiences for different types of films
• Evaluate the different genres of films
• Describe the evolution of cinema theatres and their present state in the
country
• Explain the concept of cinematography and its importance in making
movies
• Discuss the need for censoring films and identify the agencies and
assessors that do so in India
5.2 Audience for Films
All films are not meant for everyone. Every type of film is meant for a specific
target audience (defined as a specific section of society) for whom the message,
in this case of the film, is aimed. It is the job of the film maker, and all those
associated with the film, to know specifically who this target audience is. This is
because the film will not be able to communicate its message or perform well at
the box office (earn enough to cover its costs or earn profits) unless its target
audience is determined. For instance, the audience that goes to watch Desi
Boyz, a romantic comedy, will not be the same that goes to watch Gulaal, a
socio-political drama. Similarly, those who prefer to watch films starring Salman
Khan may not prefer to watch films starring Irrfan Khan. Identifying the target
audience is not about adhering to popular demands or selling out or being rigid.
It is about being relevant to your choice of audience and creating a product that
appeals to their sensibilities without destroying the integrity of the film.
The target audience is not identified by mere guessing, but by making
informed decisions based on statistical analysis and data configuration of

demographic (profile of a particular segment of market segment) and

psychographic (attitudinal traits seen in approach to life) attributes. These include
the following:
• Consumer demographics: Age ; Gender ; Occupation ; Income ; Marital
status; Children in the household; Geographic location;
• Business demographics: Job title; Type of industry ; Number of employees;
Geographic location;
• Psychographics: Need for status; Importance and need for money in life;
Level of morality; Ability to take risks; Ability to spend money (spendthrift
or hoarder)
Exhibit 5.1 shows the need to determine the target audience and the
financial significance of this concept.
Exhibit 5.1
Exactly How ‘Big’ Is Salman Khan Today?

Even Salman Khan’s worst critics recognize that he is the biggest star in
Bollywood today. In what has possibly been one of the most glorious periods
ever in this industry, Salman has delivered three huge blockbusters between
Sep 2010 and Sep 2011, in Dabangg, Ready and Bodyguard. Many of his
diehard fans privately recognize that none of these were cinematic
masterpieces. But they worked purely on the charisma of their lead star.
Take Salman Khan out of them, and there will be no Dabangg, no Ready, no
Bodyguard.
So exactly how big is the Salman phenomenon? How far ahead of the
pack is he, today?
The chart below shows Salman’s month-on-month progression. As can be
seen, even two months after the release of Dabangg, he was at 34%, just
3% ahead of Shahrukh Khan at 31%. If we back-project, it is safe to say that
till August 2010, Shahrukh would have been ahead of Salman. But since
then, Salman has simply bulldozed his way to the top, widening the gap,
month-on-month. Shahrukh is still no. 2 in October 2011, at 27% share. But
the 3% gap is now a staggering 25%.

55
52 52
51
48 49
46
45
42
41 41
40
38
34
35
25
Nov’10 Dec’10 Jan’11 Feb’11 Mar’11 Apr’11 May’11 June’11 July’11 Aug’11 Sep’11 Oct’11
The chart illustrates that his journey over the last year has been in two
parts. The Dabangg phenomenon gave him ascendency till February this
year, where he peaked at 46%. And just as his share was beginning to
saturate, Ready gave it another fillip, this time a huge one, taking him past
the 50% mark. Bodyguard couldn’t take it further up, but even two months
after its release, Salman shows no signs of losing share.
Who did Salman grab this 18% share from?
No one person lost a sizeable chunk. But four stars lost some share in this
period. Aamir Khan and Ranbir Kapoor (till Rockstar) have not had a major
release for a while now. Amitabh Bachchan has had a very lean year by his
busy standards. The only “real” drop in share has been Akshay Kumar’s,
who moved down from 24% in April 2011, to 16% now, losing three ranks
within six months, down from no. 3 to no. 6.
Which target audience is he the strongest in?
That’s probably the secret behind his success – he is appealing to every
single target segment today, equally well. He crosses 50% share amongst
males, females, youth, adults, and in each research market. All other stars
are skewed towards a particular audience profile. For example, Shahrukh,
Ranbir and Shahid are heavily female audience skewed. While Ajay Devgan,
Akshay and Aamir are male audience skewed. But not Salman. Evidently,
everyone loves him. Just about everyone.
Available at: http://shaileshkapoor.com/2011/11/08/exactly-how-big-is-
salman-khan-today/Accessed on 17 December 2011.

While determining the target audience for films, one could keep in mind
the words of Tony Cianciotta, a veteran distributor of Canadian films, ‘Who would
stand in a lineup outside, at night in January to see this film? Picture the lineup (if
any!). That’s your target audience.’ Ideally, the target audience will be within a
specific age range and have similar habits in terms of watching and accessing
similar media. This means the distributor can also reach out to them using
targeted advertising. Determining the target audience involves picturing what
other films they have watched, which films they have preferred to watch and
which they have not, and the reasons for the same. It involves educating the self
about the personality of the audience, knowing who to address, their needs and
aspirations, and identifying competitors.
As discussed earlier, the target audience is determined primarily by gender
and age range. Other elements include socio-economic status, geographic
location, family status, political and religious leanings and special interests. The
typical age ranges are listed as follows:
• Kids 5–11 and the accompanying mothers
• Tweens 11–14
• Teens 13–16
• 17–21
• 18–24 and 18–34
• 25–54
• 54+
Remembering these age ranges is important. This is because films such
as Halo or Doctor Dolittle would entertain 5-year-old children but they will certainly
not appeal to teenagers. The Prince and Me, the Twilight series or even Jo
Jeeta Wohi Sikander would entertain teenagers. Often, the success of a film is
determined by how precisely the target audience has been defined. There are
exceptions to this rule. For instance, Rockstar failed at the box office despite
the fact that it was meant for a multiplex audience because the narrative of the
film was found to be confusing and ambiguous. Audiences aged 18 to 24 years
and 18 to 34 years constitute the largest movie-going segment and form the
core of large audiences.
Once the age range of the target audience has been established, the next
point to be determined is why certain people, and not others, form the target
audience. It also must be determined that what about a film appeals uniquely to
them. The answer is found in the film’s marketable elements (what the target
audience wants to see) and strategy.

The following marketable elements draw a certain type of audience and

these are listed as follows:
• Genre: These include types such as comedy, action, thriller and romance
that attract varied audiences who can be further fragmented.
• Concept: Think of the originality of Jaane Bhi Do Yaaron, 16 Park Avenue
and Delhi Belly.
• Attractiveness: This refers to the extent to which audience relates to the
actors. Examples include Kabhi Alvida Na Kehna, a modern uptake on
relationships and their fickleness, and Taare Zameen Par, which dealt
with dyslexia and the child and his family’s struggle to overcome it.
• Subject matter: Udaan attracted a different audience because of the
subject it delved into.
• Additional elements: Rockstar and Devdas used music extensively.
• Special interests: Zindagi Na Milegi Dobara is predominantly a coming-
of-age road movie.
• Source material: No One Killed Jessica is based on the sensational
murder of Jessica Lal by Manu Sharma, the son of a high profile politician.
In India, people who go to watch popular cinema in theatres have an
engaging and interactive style. They whistle, cheer, clap, shout, sing and throw
coins at the screen in appreciative display. Often, if they do not like a film, they
protest by ripping the upholstered seating with blades and knives. This overt
participatory style makes it possible to gauge the audience reception, a
phenomenon that the Western society has not been able to understand.
Tip
To know more about how to define the target audience for a film, refer to the
following articles: The Marketing Plan by Robin Smith and Who is the
Audience? by Dan Lyon.

(a) The target audience is not identified by mere guessing, but by making
informed decisions based on _________ and data configuration of
demographic and psychographic attributes.

(b) The target audience for a film is determined primarily by _________

and age range.
(a) Audiences aged 18 to 24 years and 18 to 34 years constitute the
largest movie-going segment and form the core of large audiences.
(b) Analysis of demographic attributes refers to analysis of attitudinal
traits seen in approach to life.
5.3 Types of Films
The basic film genres are listed as follows:

Action: These are films in which the plot involves using physical force. Examples
are: Face Off; Die Hard; Air Force One; Lethal Weapon; The Terminator; True
Lies
Adventure: These are films in which the plot involves encounters with new
‘worlds’. Examples are: Apollo 13; The Deep; Indiana Jones; Avatar; The Lord
of the Rings
Comedy: These are films in which the plot involves hilarious results. Examples
are: Analyze This; French Kiss; My Best Friend’s Wedding; When Harry Met
Sally
Coming-of-Age: These are films in which the plot is about the hero finding his
or her place in the world. Examples are: American Beauty; The Graduate; The
Lion King; My Brilliant Career; Top Gun
Crime: These are films in which the plot involves catching a criminal. Examples
are: Basic Instinct; Sliver; Silence of the Lambs; L.A.Confidential
Detective stories/courtroom dramas: These are films in which the plot involves
finding out the truth. Examples are: A Few Good Men; The General’s Daughter;
The Maltese Falcon; Philadelphia; Rear Window; A Time to Kill; The
Verdict;Vertigo
Epic/Myth: These are films in which the plot involves the clash of forces that
ushers great historical change. Examples are: Apocalypse Now; The Birth of a
Nation; Bridge on the River Kwai; Butch Cassidy and the Sundance Kid; The
Godfather; Gone With the Wind; The Grapes of Wrath; Lawrence of Arabia;
Star Wars; The Ten Commandments

Fantasy: These are films in which the plot plays out in two worlds – real and
imaginary. Examples are: Alice in Wonderland; Antz; Ghostbusters; The Mask;
Peter Pan; Snow White; Toy Story;The Wizard of Oz; Who Killed Roger Rabbit?
Gangster: These are films in which the plot involves the struggle between a
criminal and society. Examples are: Bonnie and Clyde; Butch Cassidy and the
Sundance Kid; Dead End; Dead Man Walking; The Godfather; Goodfellas; La
Femme Nikita; Out of Sight; Sling Blade
Horror: These are films in which the plot involves escaping from and eventually
defeating a Satanic force. Examples are: The Blair Witch Project; Friday the
Thirteenth; I Know What You Did Last Summer; It’s Alive; Nightmare on Elm
Street; Psycho; Scream; The Ring; The Grudge; Dark Water
Love: These are films in which the plot involves people who each want to win or
keep the love of the other. Examples are: Annie Hall; As Good As It Gets;
Casablanca; Ghost; The Graduate; It Happened One Night; While You Were
Sleeping; Notting Hill; Pretty Woman; Roman Holiday; The Way We
Were;Wuthering Heights
Science fiction: These are films in which the plot is generated from the
technology and tools of a scientifically imaginable world. Examples are: 2001: A
Space Odyssey; Minority Report; ET; The Fifth Element; Gattaca; Star Wars;
The Terminator
Social drama: These are films in which the plot involves a champion who is an
underdog and has a personal stake in the outcome of a struggle. Examples are:
A Civil Action; Dead Man Walking; Dr Strangelove; Grapes of Wrath; Kramer
versus Kramer;Philadelphia; Schindler’s List; To Kill a Mockingbird
Thriller: These are films in which the plot pits an innocent hero against a lethal
enemy. Examples are: The Net; Sleeping With the Enemy; Wait Until
Dark;Witness
Other genres of films include art films, black comedies, buddy movies,
film noir, ghost stories and picaresque. Art films have not found many takers in
Hollywood but are on the rise in Bollywood due to the rise of the multiplex culture
in the country. Black comedies are those that use death and morbid imagery to
portray humor. Buddy movies are not a distinctive genre but usually cast well-
known stars of relatively equal importance, although one is shown as the main
character. Film noir is primarily a stylistic categorization that uses typical black
and light patterns, dark shadows, the dark side of human behaviour and has a
penchant for cynicism and irony. Ghost stories, although popular in the past,

have been somewhat replaced by the horror genre. Picaresque movies are
those that include episodic strings of adventures by a hero who moves from
place to place. Other genres include historical dramas, musicals and Western
movies.

(a) _________are those that use death and morbid imagery to portray
humour.
(b) ___________movies are those that include episodic strings of
adventures by a hero who moves from place to place.
(a) Social dramas are that genre of films in which the plot involves a
champion who is an underdog and has a personal stake in the
outcome of a struggle.
(b) Jodha Akbar can be considered as an example of a romantic comedy.
5.4 Cinema Theatres
A cinema theatre can be defined as the place, usually a building, that is used to
show motion pictures or films to people for a prescribed amount of money
collected in exchange for a ticket. The film is projected on to a large projection
screen located at the front of the auditorium using a projector. These days,
cinema theatres come equipped with digital cinema projectors, state-of-the-art
screens, surround sound, comfortable seating and air conditioning, removing
the need to create and transport a physical film print.
Jamshedji Framji Madan, an entrepreneur from Calcutta, was the first to
own and operate a chain of cinema theatres. He supervised the production and
distribution of ten films per year throughout the country. Starting from 1909,
Raghupathi Venkaiah Naidu, artist and a pioneer of silent cinema, was involved
in several aspects of Indian cinema, including travelling to promote film work.
He also built and owned the first cinema hall in Madras. The Raghupathi Venkaiah
Naidu Award is an annual award that acknowledges people for their contributions
to the Telugu film industry.

In India during the early twentieth century, cinema became so popular that
tickets were made affordable and commonly available to the common man. It is
popularly said that for Mughal-e-Azam, Maratha Mandir, a popular theatre in
Mumbai was fully booked for the first seven weeks after its release and tickets
sold out fast. The tickets were originally priced at `1.50 and people bought the
tickets in black for `100!
Cinema halls attracted audiences by the hordes as this was an affordable
medium of entertainment that was available for as low as 4 paisa! The content
of cinema was increasingly customized to appeal to the masses.
As of April 2010, PVR had 142 screens in 33 multiplexes spread across
India. It has considerable presence in New Delhi and the surrounding regions
(NCR) with 37 screens in 13 multiplexes. The company has also made its
presence felt in Chennai, Lucknow, Indore, Hyderabad and Bangalore and is
expanding to Mumbai in Juhu. It started the concept of luxury viewing in the form
of PVR Europa in Gurgaon, near Delhi, and this concept has been extended to
Bangalore as well. It has also launched PVR Premiere, its premium brand for
consumers in metros, and PVR Talkies, a no-frills option for consumers in tier II
cities.
Other well-known multiplex chains operating cinemas across the country
include INOX and Cinemax.
To give to viewers a world-class viewing experience, modern cinema
theatres in India have also started to show films in the 3D and IMAX formats.
3D films project images on screen such that they appear to be three
dimensional. Audiences are given special viewing glasses (polarized) to wear
while watching the film. The glasses portray the image as a ‘pop-out’ and follow
the viewers when they move.
The IMAX system uses film whose frame size is more than ten times that
of a 35-mm film. Its image quality is much more superior to that of conventional
films. Theatres that use the IMAX system use an oversized screen and special
projectors.
Exhibit 5.2 shows the steps being taken by multiplex giant PVR to give an
altogether new cinematic experience to audiences.

Exhibit 5.2
PVR launches luxury entertainment multiplex in Delhi

Mumbai: PVR has introduced a new concept in the world of movie watching–
luxury entertainment at Director’s Cut (DC), at the Ambience Mall, Vasant
Kunj in New Delhi. Conceived by PVR chairman and managing director
Ajay Bijli, DC will cement PVR’s stance in the film exhibition business.
Director’s Cut includes four cinema halls, café, restaurant, bar, lounge,
patisserie and a book shop devoted to movies.
Director’s Cut is the final and definitive word on cinema viewing – the vision
and thought process of an auteur. The concept marries two ideas, that of
luxury and cinema, bringing to connoisseurs, four screens made for
cosseting viewers in surroundings that range from a fully recliner seating,
2K digital projection, finest surround sound and complete 3D capability.
Director’s Cut has four Audis which can seat 282 people.
The interiors of Directors’ Cut are soaked in film-based art, so as to underline
the quality of the experience. From the aroma of international coffees as
patrons walk in to the interiors of the restaurant with its wooden floor and
silk upholstery, each element of DC is meant to thrill the sensory. Signatures
of cinematic legends-Kurosawa, Ray, Godard and more are etched on the
smoky glass panels. The cinemas themselves are an ode to elegance and
pampering, ranging from interiors in rich burgundy, gold, carmine and a
shimmering ochre. Chic individual lamps sit on a console besides each
seat. A waiter is a button away with a hot towel, a blanket, a hors d’ouvre or
a drink.
Director’s Cut staff will provide attentive, personalized service. The dining
has been put together by world-class chefs to offer dining formats and
experiences. To complement the cuisine, one of the finest wine cellars has
been put together, to offer patrons an enthralling experience from wine by
the glass to a complete wine buffet.
DC also provides an option of being served gourmet offerings from the fine-
dining outlet at your seat. This combination of cinema and dining will ensure
that Directors’ Cut becomes a cultural and entertainment landmark.

Director’s cut is a part of PVR’s assiduous strategy to scale up its exhibition

business and PVR plans to further expand the concept to other metro cities.
Once Directors’ Cut gains the requisite tipping point, it will be offering
memberships to a loyalty program that has been put in place.
Source: http://www.businessofcinema.com/news.php?newsid=19175
Accessed on 17 December 2011.

(a) _____ films project images on screen such that they appear to be
three dimensional.
(b) The _____ system uses film whose frame size is more than ten
times that of a 35-mm film.
(a) PVR, INOX and Cinemax are examples of well-known multiplex chains
operating cinemas across the country.
(b) Jamshedji Framji Madan, an entrepreneur from Calcutta, was the
first to own and operate a chain of cinema theatres.
5.5 Cinematography
Cinematography can be defined as the art of making choices pertaining to lighting

and camera work while recording photographic images for cinema. The American
Society of Cinematographers (ASC) defines cinematography as ‘a creative and
interpretive process that culminates in the authorship of an original work of art
rather than the simple recording of a physical event. Cinematography is not a
subcategory of photography. Rather, photography is but one craft that the
cinematographer uses in addition to other physical, organizational, managerial,
interpretive and image-manipulating techniques to effect one coherent process.’
There are various concepts that contribute to the art of cinematography
and these are discussed as follows:
• Image sensor/film stock: The work of a cinematographer is initiated with
selection of rolls of film or digital image sensors, and choosing the right
film stock is one of the first decisions made in preparing a typical film.

• Filters: Filters are optical elements that have the ability to change the
properties of light entering into the camera lens on to the film. They are
widely used to change the mood or induce a dramatic effect. Filters are of
varying types, and the commonly used ones include diffusion filters and
colour effect filters.
• Lenses: Lenses are optical devices attached to the camera that transmit
or refract light used to give a certain look, feel or effect by changing the
focus, aperture, axis and so on. Cinematographers may use a single lens
(consisting of a single optical element) or a compound lens (consisting of
a set of single lenses). The various kinds of lenses used include wide-
angle lenses, normal lenses, long focus lenses, macro lenses, borescope
lenses and so on.
• Illumination: Illumination is the application of light such that a desired/
aesthetic effect can be attained. This includes using both artificial and
natural lighting.
• Special effects: In-camera effects can be defined as those special effects
implemented by using techniques in the camera and its parts. Some
examples of in-camera effects that are used are dolly zoom, lens flares,
lighting effects, fog simulation, time lapse, slow motion, fast motion and
speed ramping.
• Editing: Editing, a considerable aspect of film editing, involves selecting
and combining shots in a sequential manner to create a cohesive and
complete film. It also involves the manipulation of time and space in
storytelling.
Role of the cinematographer
The role of a cinematographer is listed as follows:
• Is responsible for the technical aspects of images, such as lighting, lens,
composition, exposure, filtration and film selection
• Works in close association with the director to ensure that the artistic
aesthetics are in tandem with the director’s vision
• Controls the camera, grip and lighting crew on a set
• Controls the choice of film (based on varying sensitivities to light and
colour), selection of focal length of lens, aperture exposure and focus
• Manages personnel and takes care of logistic aspects as well

Activity 1
Prepare a report on the topic ‘Elements of Cinematography’. Include the
following aspects: moving the camera, types of shots, rules of composition
and moving frames per second.

(a) The ______ works in close association with the director to ensure
that the artistic aesthetics are in tandem with the director’s vision.
(b) ____ is the application of light such that a desired/aesthetic effect
can be attained. This includes using both artificial and natural lighting.
(a) Examples of in-camera effects include dolly zoom, lens flares, lighting
effects, fog simulation, time lapse, slow motion, fast motion and speed
ramping.
(b) The cinematographer controls the camera, grip and lighting crew on
a set.
5.6 Film Censorship and Assessment
The film industry in India (including both Hindi (Bollywood) and regional cinema)
is the largest in the world, with almost 900 feature films and a greater number of
short films made and released each year. This is twice the output of Hollywood.
Approximately, about 15 million people see films in India, either at cinema halls
and theatres or on video cassettes, VCDs, DVDs and on direct-to-home satellite
TV.
Movie viewing is serious business in India, such that Ra.One that did not
fare well commercially was made at a budget of `125 crores. Other latest big
budget films include Rockstar made for `60 crores, Don 2 at `70 crore and
Agent Vinod at `60 crores. In short, almost every month, people flock to the
cinema theatres to watch the latest that the film industry has to offer. It is in this
context that certification of films plays a considerable part. Unfortunately,
certification is not enough to prevent violations and deter violators.

India being a democratic nation has a free press and exercises the freedom
of speech. These freedoms are extended to cinema as well, which is a free
enterprise and outside the control of the government except the Films Division
of India that aims to educate and inform people. The freedom of cinema falls
under the Fundamental Rights, particularly Article 19(1)(a) of the Constitution
which says ‘all persons shall have the freedom of speech and expression’. This
freedom means all people have the right to express their opinion by word of
mouth, writing, printing, through images picture or any other manner, including
cinema.
However, this right is subject to ‘reasonable restriction’ on the grounds
laid out under Article 19(2) of the Constitution. These reasonable restrictions
include the interests of the sovereignty and integrity of India, the security of the
state, friendly relations with foreign states, public order, decency or morality or
contempt of court, defamation or incitement to an offence. It is apparent that
while the media – print, electronic or film – can express opinion and thought, it
must do so keeping in mind the public interest at large.
Film censorship is the result of the process of previewing a film to determine
whether it should be shown to a specific audience or to be let for general viewing.
It also involves deleting and/or, modifying certain sections of a film. Censorship
ensures that people are not exposed to psychologically damaging matter or that
sentiments are not hurt or that the integrity of the nation is not put at stake.
Exhibit 5.3 shows the recent furor being created by a Hindi commercial film over
its content and its clash with the censor board.
Vidya Balan’s The Dirty Picture banned in Pakistan

The buzz around the run-up to the release of The Dirty Picture is in full
swing but movie buffs in Pakistan may not have a chance to catch the film
in theatres. The Pakistan Censor Board has refused to clear the movie for
release in their country. Earlier this year, Delhi Belly too was not cleared for
a release there.
It is learnt that after receiving a clearance by the Indian Central Board of
Film Certification (CBFC), the Milan Luthria directed film, based on South
siren Silk Smitha, was submitted to the Censor Board of Pakistan for
censorship. “However, they rejected the application saying it is not suitable
for theatrical release in Pakistan,” reveals the source, adding, “They deemed
the movie inappropriate for viewership in Pakistan, due to its bold and
controversial content.”

The refusal is coming at a time when cinema in Pakistan is going through a

rough patch. “It’s strange that the Pakistan Censor Board is refusing
censorship of the film because after its release, the authorities won’t do
anything to control the piracy of its DVDs,” said the source.
Tanuj Garg, CEO of producer Ekta Kapoor’s company confirmed the news,
saying, “Yes, our overseas distributor informed us that Pakistan Censor
Board deemed the movie unsuitable for theatrical exhibition. Unfortunately,
the audience in that country will not have a legitimate means of viewing the
film which is sad given the huge buzz there for the film.”
Source:http://movies.ndtv.com/movie_story.aspx? ID=ENTEN20110189150
&subcatg=MOVIESINDIA&keyword=bollywood&nid=154309
(Accessed on 17 December 2011).
In India, the Central Board of Film Certification (CBFC; also known as the
Censor Board) is a regulatory body established by the Government of India and
controlled by the Ministry of Information and Broadcasting. This body reviews,
rates and censors cinema and regulates the public exhibition of films in India
under the provisions of the Cinematograph Act, 1952. Films can be publicly
shown only after they have been certified by this body.
According to the Supreme Court of India, ‘film censorship becomes
necessary because a film motivates thought and action and assures a high
degree of attention and retention as compared to the printed word. The
combination of act and speech, sight and sound in semi darkness of the theatre
with elimination of all distracting ideas will have a strong impact on the minds of
the viewers and can affect emotions. Therefore, it has as much potential for evil
as it has for good and has an equal potential to instill or cultivate violent or bad
behaviour. It cannot be equated with other modes of communication. Censorship
by prior restraint is, therefore, not only desirable but also necessary.’
The Cinematograph Act, 1952 (Act 37 of 1952), includes provisions relating
to the functioning of the CBFC and lays down guidelines to be followed for
certifying films. Initially, there were only two categories of certificates:
• ‘U’: Unrestricted public exhibition

• ‘A’: Restricted to adult audiences

Two other categories were added in June 1983:

• ‘UA’: Unrestricted public exhibition subject to parental guidance for children
younger than 12 years
• ‘S’: Restricted to special audiences
In modern times, films are censored according to the provisions of the
Cinematograph Act, 1952, the Cinematograph (Certification) Rules promulgated
in 1983 and the guidelines issued from time to time. The guidelines are issued
under section 5B of the Act, according to which ‘a film shall not be certified for
public exhibition, if, in the opinion of the authority competent to grant the certificate,
the film or any part of it is against the interests of the sovereignty and integrity of
India, the security of the States, friendly relations with foreign State, public order,
decency or morality or involves defamation or contempt of court or is likely to
incite the commission of any offence’.
Organizational structure and regional centers
The CBFC censors films in India. The Film Certification Appellate Tribunal (FCAT),
which has been constituted under Section 5D of the Cinematograph Act, 1952,
hears appeals against any order of the CBFC. This tribunal is based in New
Delhi. While certification of films is a Central subject, the states have to enforce
the penal provisions of the Cinematograph Act, 1952, and bring the offenders to
book.
The organizational structure of the CBFC is based on the provisions of
the Cinematograph Act, 1952, and the Cinematograph (Certification) Rules, 1983.
The board consists of a chairperson and not less than twelve and not more than
twenty-five other members appointed by the central government. They are
appointed for a period not exceeding three years. They are eminent persons
from different walks of life such as social sciences, law, education, art, film and
so on, thus representing a cross-section of society.
The CBFC is assisted by advisory panels in regional offices each of which
is headed by a regional officer and the members of these panels are also
representative of a cross-section of society and interests. These members hold
office for a period not exceeding two years. However, members can be re-
appointed. The CBFC has divided itself into examining and revising committees
to provide a two-tier jury system for the certification of films. In the event of a
difference of opinion in the examining committee or the applicant not being satisfied
with the decision of the examining committee, the chairperson can refer the film
to a revising committee.

Certification rules also apply to foreign films imported into India, dubbed
films and video films. In the case of dubbed films, the CBFC does not have any
fresh censorship for the visual in general cases. Certification does not apply to
films made specifically for Doordarshan, since their programmes have been
exempted from the censorship provisions and Doordarshan has its own system
of examining such films.
Film certification ensures the following:
• The medium of film remains responsible and sensitive to the values
and standards of society.
• Artistic expression and creative freedom are not unduly curbed.
• Certification is responsive to social changes.
• The medium of film provides clean and healthy entertainment.
• As far as possible, the film is of aesthetic value and cinematically of
a good standard.
Process of certification
The Cinematograph (Certification) Rules, 1983, have laid down the procedure
that a producer must go through to get his film or video film certified, explicitly
stating the steps he has to undergo and also the fees he has to pay and other
materials he should submit. The film or video film and other material specified in
Rule 2.1 have to be submitted to the regional officer of the concerned regional
centre. On receipt of all the film materials, requisite fees and written matter
required under the rules, the regional officer will form an examining committee
to view the film. Under Rule 22, this examining committee, in the case of a short
film, will consist of an officer of the CBFC and one advisory panel member,
either of whom shall be a woman, and in the case of a long film/feature film, one
of those two persons shall be a woman. After the film has been previewed, the
CBFC has to ensure that each member gives a report in writing about his/her
recommendations about the deletions and/or modifications and the certificate
the film should be given. The report is then given to the chairman who will ask
the regional officer to initiate further procedures.
However, if the chairman, on his own motion or on the request of the
applicant, so feels, he may refer the film to a revising committee under Rule 24.
The revising committee will consist of the chairman, and in his absence a board
member and not more than nine members, drawn either from the CBFC or the
advisory panel, provided none of them was on the examining committee. The
revising committee will view the same film print shown to the examining

committee without any changes, and each member will be required to record
his verdict before leaving the theatre. If the chairman is not in agreement with
the majority view, he may direct another revising committee to see the film. The
quorum of the revising committee shall be five members of whom at least two
persons shall be women.
After the applicant is apprised of the decision of the Board, he will delete
any seven portions (if so directed) and submit them to the regional officer, along
with one copy of the film as certified.
Before any order prejudicially affecting the applicant of a film is passed by
the board, he is given an opportunity to represent his views in the matter. If the
matter goes in appeal under section 5C of the Cinematograph Act, 1952, to the
FCAT which is headed by a retired judge as chairman and not more than four
other members, the FCAT may hear both the applicant and the CBFC before
coming to its judgement.
Censorship violations
As stated before, the CBFC is responsible for certifying films for public exhibition.
However, enforcement of the penal provisions of the Cinematograph Act, 1952,
is the subject of the state government/ union territory, since exhibition of films is
a state subject.
Activity 2
In Black Friday, Delhi Belly and The Dirty Picture, list the elements that you
feel should have been censored in terms of language, plot and subject
matter. Did these elements shock or influence you in any way? Also, list
why films should be censored. Include reasons such as to protect children,
minority groups and so on.

(a) The ____ has been constituted under Section 5D of the
Cinematograph Act, 1952, to hear appeals against any order of the
CBFC.
(b) The ______ reviews, rates and censors cinema and regulates the
public exhibition of films in India under the provisions of the
Cinematograph Act, 1952.


(a) Film censorship ensures that people are not exposed to
psychologically damaging cinema or that sentiments are hurt or the
integrity of the nation is put at stake.
(b) Enforcement of the penal provisions of the Cinematograph Act, 1952,
is the subject of the state government/union territory, since exhibition
of films is a state subject.
5.7 Summary

• The target audience is not identified by mere guessing, but by making
informed decisions based on statistical analysis and data configuration of
demographic (profile of a particular segment of market segment) and
psychographic (attitudinal traits seen in approach to life) attributes.
• Today, cinema has grown to become an extremely potent and significant
tool used by people. It is the power and influence of cinema that puts
people associated with this world in a position to bring about change in
society.
• Determining the target audience involves picturing what other films they
have watched, which films they have preferred to watch and which they
have not, and the reasons for the same. It involves educating the self
about the personality of the audience, knowing who to address, their needs
and aspirations, and identifying competitors.
• Basic film genres are action, adventure, comedy, crime, detective stories/
courtroom dramas, epic/myth, fantasy, horror, love, science fiction, social
drama and thriller. Other genres of films include art films, black comedies,
buddy movies, film noir, ghost stories and picaresque.
• Cinema theatres can be defined as places, usually buildings that are used
to show motion pictures or films to people for a prescribed amount of
money collected in exchange for a ticket. The film is projected on to a
large projection screen located at the front of the auditorium using a
projector.
• Modern cinema theatres come equipped with digital cinema projectors,
state-of-the-art screens, surround sound, comfortable seating and air

conditioning, removing the need to create and transport a physical film

print.
• There has been remarkable growth of cinema theatres in India. As of April
2010, PVR had 142 screens in 33 multiplexes spread across India. It has
considerable presence in New Delhi and the surrounding regions (NCR)
with 37 screens in 13 multiplexes. Other well-known multiplex chains
operating cinemas across the country include INOX and Cinemax.
• 3D films project images on screen such that they appear to be three
dimensional. Audiences are given special viewing glasses (polarized) to
wear while watching the film. The glasses portray the image as a ‘pop-
out’ and follow the viewers when they move.
• The IMAX system uses film whose frame size is more than ten times that
of a 35-mm film. Its image quality is much more superior to that of
conventional films. Theatres that use the IMAX system use an oversized
screen and special projectors.
• Cinematography is the making of lighting and camera choices when
recording photographic images for cinema. Numerous aspects contribute
to the art of cinematography. They include image sensor/film stock, filters,
lens and lighting.
• Editing, a considerable aspect of film editing, involves selecting and
combining shots in a sequential manner to create a cohesive and complete
film. It also involves the manipulation of time and space in storytelling.
• The film industry in India, both Hindi (Bollywood) and regional cinema, is
the largest in the world, with almost 900 feature films and a greater number
of short films made and released each year. This is twice the output of
Hollywood. Approximately, about 15 million people see films in India, either
at cinema halls and theatres or on video cassettes, VCDs, DVDs and on
direct-to-home satellite TV.
• India being a democratic nation has a free press and exercises the freedom
of speech. The freedom of cinema falls under the Fundamental Rights,
particularly Article 19(1)(a) of the Constitution which says ‘all persons shall
have the freedom of speech and expression’. This freedom means all
people have the right to express their opinion by word of mouth, writing,
printing, through images picture or any other manner, including cinema.
• Film censorship is the result of the process of previewing a film to determine
whether it should be shown to a specific audience or to be let for general

viewing. It also involves deleting and/or, modifying certain sections of a

film. Censorship ensures that people are not exposed to psychologically
damaging matter or that sentiments are not hurt or that the integrity of the
nation is not put at stake.
• The Cinematograph Act, 1952 (Act 37 of 1952), includes provisions relating
to the functioning of the CBFC and lays down guidelines to be followed for
certifying films. Initially, there were only two categories of certificates:
‘U’: Unrestricted public exhibition and ‘A’: Restricted to adult audiences.
• Film certification ensures that the medium of film remains responsible
and sensitive to the values and standards of society and artistic expression
and creative freedom are not unduly curbed. It also ensures that the film
provides clean and healthy entertainment and as far as possible, the film
is of aesthetic value and cinematically of a good standard.
5.8 Glossary
• Audience: Spectators or listeners assembled at a performance or a radio

or television program
• Genres: Kind, category, or sort of literary or artistic work
• Cinematography: Making of lighting and camera choices when recording
photographic images for cinema
• Cinematographer: Person responsible for the technical aspects of the
images (lighting, lens choices, composition, exposure, filtration, film
selection)
• Censorship: Suppression of speech or other public communication which
may be considered objectionable, harmful, sensitive, or inconvenient to
the general body of people as determined by a government, media outlet
or other controlling body
• Central Board of Film Certification: A regulatory body that reviews, rates
and censors motion pictures, television shows, television ads and
promotional material and regulates the public exhibition of films in India

1. What is the significance of determining a target audience? Discuss its

need in context of movie making. What is the financial significance of this
concept?
2. Identify the basic genres of films and give examples of each kind of genre
from the Hindi and regional film industry.
3. Trace the development of cinema theatres in India from the beginning of
the twentieth century till the present.
4. What are the various aspects that contribute to cinematography? Discuss
the role of a cinematographer on a film set.
5. Critically examine the importance of film censorship in India. Give relevant
examples in support of your answer.
6. Say you are the producer of a controversial film about the life of a freedom
fighter. What procedure will you follow to get your film certified?
5.10 Answers
1. (a) Statistical analysis; (b) Gender

3. (a) Black comedies; (b) Picaresque
5. (a) 3D; (b) IMAX
7. (a) Cinematographer; (b) Illumination
9. (a) Film Certification Appellate Tribunal; (b) Central Board of Film
Certification


1. Bhowmik, S. Cinema and Censorship. Orient Blackswan Private Limited,

New Delhi, 2009.
2. Moine, R. Cinema Genre. Blackwell Publishers, June 2008.
E-References
http://cbfcindia.gov.in/html/uniquepage.aspx?unique_page_id=20
http://www.filmsite.org/genres.html
http://www.culturopedia.com/cinema/censorship.html
http://www.elementsofcinema.com/cinematography/CINEMATOGRAPHY.html
http://www.deepdyve.com/lp/university-of-california-press/the-emergence-of-
filmic-artifacts-cinema-and-cinematography-in-the-NPpnxs0h2b

Unit 6 Management Information System
Structure
6.1 Introduction
Objectives
6.2 Management Design of MIS
6.3 Approaches to MIS
6.4 Limitations of MIS
6.5 Strategic MIS
6.6 Success and Failure of MIS
6.7 Summary
6.8 Glossary
6.10 Answers
6.1 Introduction
The previous unit talked about films, cinematography and film censorship. In
this age of information, irrespective of where we are or what we are doing, we
are continuously receiving information from one source or the other. What we
do with this information and how we manage or utilize it is up to us. As individuals,
we can store all this information in the brain and retrieve it whenever required.
In modern organizations too, there is a system where all kinds of
information related to the organization are stored. Information collected and stored
with the help of people and technology can be accessed and used to analyse
the operational activities in an organization. The system that makes this possible
is called management information system (MIS).
MIS is a general purpose system that provides managers with vital
information about organizational activities. It is an organized collection of people,
procedures, data bases and computers that provides routine reports to decision
makers. The input to an MIS comes primarily from transaction processing
systems and the output is simply a summary report of these transactions. For
example, a bank manager may get a summary report of the daily transactions
of deposits and withdrawals at his branch.
This unit will introduce you to various aspects of MIS, such as its
design,implementation, approaches and limitations.
Objectives
• Evaluate the management design of MIS and describe the implementation
of MIS
• Summarize the various approaches to MIS
• List the limitations of MIS
• Discuss the various aspects of strategic MIS
• Identify the success and failure of MIS
6.2 Management Design of MIS
According to the Management Information System Committee of the Financial

Executive Institute, MIS is a system designed to provide selected decision-
oriented information needed by management to plan, control and evaluate the
activities of the corporation. It is designed within a framework that emphasizes
profit planning, performance planning and control at all levels. It contemplates
the ultimate integration of required business information subsystems, both
financial and non-financial, within the company.
MIS may also be defined as ‘a formal method of collecting timely and
accurate information in a presentable form in order to facilitate effective decision
making and implementation of these decisions in order to carry out organizational
operations for the purpose of achieving organizational goals’.
6.2.1 Why is MIS important?

It is important to set up effective management information systems for several
reasons. First, most organizations have grown in size and complexity. It is quite
important in a media organization too which has so many departments working
in tandem. The management of an enterprise must rely on the information
provided to them by the line supervisors about any operational problems needing
attention. The dynamics of the environment further adds to the complexity of
organizational operations. Some of the continuously changing factors affecting
the volume and type of information handled are as follows:
(a) Economic factors: These factors include sudden changes in the economic
structure in any part of the world, sudden energy crisis, world wide inflation
rate, higher interest rates, unemployment rate, changes in Gross National
Product (GNP), and so on. All or some of these factors may affect a given

organization, thus requiring the organization to process the information

generated by these changes.
(b) Technological changes: These include new technological innovations
in such areas as computers, telecommunications, audio-visual
teleconferencing, and so on.
(c) Social changes: These include shift in work force from blue collar to
white collar jobs, higher level of education of workers, computer networking
at home, pollution problems, changes in consumer preferences, and so
on.
(d) Political-legal factors: These include the effect of many new laws which
are continuously being enacted and which affect the organizational
systems. These laws include right to privacy, liability laws, anti-monopoly
laws, truth in lending, truth in advertising, minimum wage standard laws,
and so on.
The second reason for growth in MIS is the need to control management’s
decisions. More and more, large organizations are decentralizing their operations
so that more information is needed about the operations of the unit managers.
The performance of all units must be closely monitored and steps must be
taken if the performance of any unit is below expectations. MIS can be effectively
used for measuring performance and bringing about any necessary changes in
accordance with the organizational goals and plans.
The third reason for the rapid growth in the field of MIS is the widespread
use of computer capabilities. Computers are becoming more powerful and less
expensive to operate. They have large data storage capacities and they have
made the retrieval of data easier and faster. This, in turn, has made information
handling easier.
Exhibit 6.1
Voter list revised without MIS
Rajeev Dikshit, TNN Dec 15, 2011, 01.59PM IST
VARANASI: Delay in arrival of Management Information System (MIS) from
the office of the UP chief election officer to the district can well defeat the
purpose of the recently conducted exercise of elector roll revision.
The staff of district election office is tightlipped over the delay in arrival of
MIS from the state election office. But, sources revealed that if the MIS had
become accessible on the computers of district election offices since the

beginning of the special drive launched for the revision of voter list (from
September 29 to November 11), the officials monitoring the exercise could
have become aware about the booth wise ratio of gender, age, status of
electoral photo identity cards (EPIC) and number of voters whose
photographs had been printed on the elector roll. Availability of day to day
information through MIS could help the officials in identifying the booths where
the difference in male female ratio was very high at the time of continuing
the drive, which could help in knowing the actual reason for the difference in
male female ratio.
However, as such facility could not become available; the officials became
bound to complete the process of elector roll revision with the available
resources as they were under the pressure of election commission to
publish the revised elector roll by January 2.
The MIS was stored at the chief election officer’s office in Lucknow at the
time of feeding of all the data on day to day basis. This process was followed
during the special drive launched for the revision of voter’s list and the booth
wise status of voters including gender and age ratio was stored at state
election office. But it was not accessible at district election offices due to
which the election officials in the districts became bound to wait for sending
the MIS to their offices from Lucknow.
The process of receiving Form 6 (for registration of new names in voter
list), Form 7 (for deletion of names from voter list) and Form 8 (for corrections
in voter list) had been completed by November 11. After completion of the
process, 3.57 lakh new voters were included in the revised voters list while
about 1.31 lakh names were deleted due to different reasons. With the
completion of this process the number of voters in the district has reached
the number of 24.72 lakh from 22.34 lakh voters registered in 2011’s elector
roll.
Source: http://articles.timesofindia.indiatimes.com/2011-12-15/varanasi/
30519758_1_voter-list-lakh-new-voters-election-office
(Accessed on 19/12/2011)
Developing an MIS
Development of an effective MIS starts with an analysis of the types of decisions
to be made and the types of support systems that are available to the managers
in an organization. It basically consists of the design phase and the
implementation phase.

6.2.2 The Design Phase

The design phase involves the following steps:
1. Identify various decisions that must be made to run an organization:
Perhaps, the managers can be interviewed regarding their informational
needs.
2. Set objectives for the system: The objectives would depend upon the
manager’s information needs, the costs associated with the system and
the benefits derived from it. The objectives of MIS should be consistent
with the mission and objectives of the organizations.
3. Prepare a feasibility report: The report would emphasize the necessity
as well as economic feasibility of developing and implementing the system.
4. Prepare a technical report: This report contains the actual design
including technical information regarding the hardware and software
needed. It would also indicate the various components of the system and
the methodology of implementing the system.
6.2.3 Implementation of MIS

Implementation includes the purchases and integration of necessary resources
and putting the system into operation. According to Rue and Byars,
implementation consists of the following steps:
1. Acquiring the necessary facilities, equipment and personnel
2. Training the personnel
3. Installing the new MIS
4. Testing the new MIS
5. Operating the system
6. Evaluating the MIS to see if it is doing what it was designed to do
While there may be different approaches to designing an effective
management information system, it is necessary to have a central location for
processing all the information. This is a kind of ‘management information centre’.
This centre has all the hardware, software and all the technical help necessary
to gather all the information at one location and sort it out so that the managers
can find facts and turn these facts into management information.
A MIS basically is a set of procedures that systematically gathers all pertinent
data, processes this data into a summarized presentable form of information

and presents it to concerned managers so that they can make necessary

decisions and take necessary actions based upon this information. Effective
management information, system should be designed in such a manner that:
1. It supplies complete, accurate and timely information so that it can be
used for effective planning and decision making. This would result in the
elimination of problems associated with inconsistent, incomplete or
inaccurate data.
2. It identifies and quantifies the inter-related operational and performance
variables and develops a relationship of these variables which can be
used to forecast future trends.
3. It facilitates the control of costs by integrating the financial and production
data to generate measures of cost effective performance, which can be
closely monitored.
4. It identifies the separate needs of all units of a decentralized organization
in a cohesive manner so that these needs can be attended to without
duplication and waste of efforts.
5. It requires that the information be presented in a presentable form so that
action can be initiated without further interpretation and analysis. This
reduces the time required for action and only exceptional issues receive
the full attention of top management.
6. It provides flexibility so that the system can be modified and adapted to
the changes when necessary.
Activity 1
Find out whether the government offices use MIS or not. Make a list of those
government offices in your region/town that use an MIS.

(a) Reason for growth in MIS is the need to control management’s
decisions.
(b) Development of an effective management information system starts
with an analysis of the types of decisions to be made.


(a) ________ is a formal method of collecting timely and accurate
information in a presentable form.
(b) ________ includes the purchase and integration of necessary
resources and putting the system into operation.
6.3 Approaches to MIS
As a result of various perspectives on the information systems, its study is a

multidisciplinary field. A number of disciplines, including management science,
computer science, operations research, sociology, etc., help in providing solutions
to the problems and resolving the issues that arise while studying the information
systems. In general, this field of study comprises two approaches, namely
technical and behavioural (see Figure 6.1).
Information systems are neither purely social, nor purely technical. They
not only consist of hardware and software technologies, but also need significant
social and intellectual investments to perform in a better way. Therefore, they
are also termed as socio-technical systems.
nical Approaches
Tech
Management
Science
Computer Operations
science research
MIS
Sociology Economics
Psychology
Beh
avioural Approaches
Figure 6.1 Contemporary Approaches to Information Systems

6.3.1 The Technical Approach

This approach stresses on the use of mathematical models to analyse
information systems. It also helps to study the formal capabilities and physical
technology of the information systems. Disciplines like computer science,
management science and operations research lead to technical approach.
The three disciplines contribute to the study of information system in various
ways. The operations research methods and techniques, for example, help to
solve the decision-making problems by providing the best alternative among
various available alternatives. They also use the mathematical techniques to
optimize the selected parameters of the organizations, such as transaction
costs, transportation and inventory control. Computer science helps in
establishing theories and methods of computations.
It also provides methods for efficient storage and access of data in the
information system. The field of management science is allied to the operations
research as it provides models and common analytical methods for decision-
making and management practices.
6.3.2 The Behavioural Approach

The behavioural approach concentrates on the behavioural issues like changes
in organizational policies, management, behaviour, etc., that occur while
developing and maintaining the information systems. The models used in the
technical approach are not sufficient to study these issues. Therefore,
behavioural disciplines, including economics, sociology and psychology help to
explore these issues by applying their concepts and methods.
Psychologists study information systems from the perspective of how
decision-makers comprehend and make use of the available information. They
emphasize more on studying and understanding of people and their behaviour.
Various techniques are applied to study the thinking pattern and behaviour of
individuals in a group, and how people’s attitudes are affected by society and
organization.
Sociologists study information systems from the viewpoint of how groups
and organizations are developed and how systems develop from groups and
organizations and how the systems affect people, groups and organizations.
Economists study information systems from the viewpoint of how they
impact the cost and control structures within an organization and within global
markets.

6.3.3 Socio-Technical Systems

Neither the technical, nor the behavioural approach can by itself, comprehend
the information systems efficiently. This is because the success or failure of an
information system is neither purely technical, nor purely behavioural. Thus, to
optimize the performance of the organization, both the approaches are equally
considerable. This results in the need of adopting a different view of information
systems that combines different approaches. One such view is the socio-
technical view of information systems.
From the socio-technical view, the information system is a combination of
both the technical and the social systems used in the production. The optimal
performance of an organization is obtained by optimizing the technical and social
systems together. That is, to optimize the performance of an organization, both
the technical and social systems need to mutually adjust with each other until
an acceptable level is achieved (see Figure 6.2). For this, as the technology
advances, organizations and individuals must also change, thereby allowing
the technology to work and thrive. Similarly, the technology must also be changed
and then redesigned in order to fit as per the needs of the organizations and
individuals. However, sometimes, we need to de-optimize the technology to obtain
the desired fit.
Organization design Technology design
alternatives alternatives
Design 1 Design 1
Design 2 Design 2
Design 3 Design 3
Design 4 Design 4
Figure 6.2 A Socio-Technical View of Information Systems
6.4 Limitations of MIS
In order to make improvements in the current MIS, it is necessary to look for

weaknesses in the system to determine if such an implemented system is
adequate. A list of such symptoms has been developed by Bertram A. Colbert,
who divided these symptoms into three distinct categories. These categories
are operational, psychological and report content. The first two categories relate
to the operation and functioning of the organization while the third one relates to
the actual make-up of the information generated by MIS.

These categories can be described as follows:

(a) Operational symptoms: The operational symptoms relate to the physical
operations and activities and the results of such activities within the
organization. These symptoms include:
• Capital expenditure overruns
• Unexplainable cost variances
• Insufficient knowledge about competition
• Inability of executives to explain changes from year to year operating
results
• Uncertain direction of company growth
• Large physical inventory adjustments
• Purchasing parts from outside vendors when internal capability and
capacity to make these parts is available
(b) Psychological symptoms: These symptoms deal with the outlook of
management and their attitude towards MIS. These symptoms reflect lack
of concern on the part of management about the success of MIS
programme, possibly due to lack of experience in appreciating the value
of MIS. Some of these symptoms are as follows:
• Surprise at financial results as if they were unexpected
• Poor attitudes of executives about the usefulness of information
because it may conflict with their own experienced judgement
• Executives overburdened by excessive information to be sorted out
• Lack of concern for environmental changes
(c) Report content symptoms: These symptoms relate to the actual content
and format of the information generated by MIS. These symptoms include:
• Excessive use of tabulations of figures
• Multiple preparation and distribution of identical data
• Disagreeing information from different sources
• Too little or too much information
• Lateness of reports
• Inaccurate information
• Inadequate externally generated information

• Lack of standards for comparison

• Failure to identify variances by cause and responsibility
These symptoms are clear indications that weaknesses in the system
exist. To pinpoint the causes and determine the specific weaknesses would
help managers to take preventive or corrective actions. Answers to some of the
following questions may identify specific areas of MIS weaknesses.
• Where and how do managers get information?
• Are the people who provide information sufficiently reliable?
• Do managers tend to act before they receive the necessary information?
• Do managers wait so long for information that opportunities pass them by
and decisions based on such information become useless?

(a) A number of disciplines, including management science, computer
science, operations research, sociology, etc., help in providing
solutions to the problems and resolving the issues that arise while
studying the information systems.
(b) The operational symptoms relate to the physical operations and
activities and the results of such activities within the organization.
(a) __________ study information systems from the viewpoint of how
they impact the cost and control structures within an organization
and within global markets.
(b) Psychological symptoms deal with the outlook of __________ and
their attitude towards MIS.
6.5 Strategic MIS
Business strategy is long-term planning of organizations that determine what

products (or services) they provide, the market they compete in, their customers
and suppliers, their future plans, etc.

Strategies are often discussed and finalized in a process called strategic

planning process. Almost all the organizations are involved in this process yearly
or sometimes more frequently. The output of the process is the strategic plan
that depicts all the strategies of the organization. The plan is then handed over
to the managers of the organization to achieve the planned goals. Note that
changes in the surrounding environment affect the organization’s goals, and the
plan must adapt to these changes.
Generally, strategy takes place at the following three different levels:
1. Business: Business is a set of related products and services.
Information systems assist firms in becoming low-cost developers,
distinguishing products and services and serving new markets. The
strategy at this level is mainly concerned with how to compete
efficiently in a particular market.
2. Firm: A firm is a business organization. Information systems enhance
services by combining together the operations of different business
units so that they can operate as a whole or can share the knowledge
across various business units.
3. Industry: Several firms that constitute an industrial environment are
collectively called an industry; for example, automotive industry,
television broadcasting, etc.
6.5.1 What is Strategic Information System?

Information systems are designed with the goal of solving some problems or
seeking new opportunities. The information system that helps an organization
to accomplish a long-term competitive advantage is known as strategic
information system (SIS). It can be developed from scratch or by modifying an
existing system.
These systems change the goals, operations, products, services and
processes of the organization to help it gain an edge over the competitors.
Sometimes, even the organization’s business needs to be changed, which in
turn forces it to adopt the new behaviour patterns. All these results in changing
internal operations, recruiting new managers and workforce and establishing
close relationships with customers and suppliers.
6.5.2 Business-Level Strategy: The Value Chain Model

The most commonly used model to support business-level strategies is the
Value Chain Model. According to this model, every firm is a sequence of basic

activities, with each activity adding some value to its products or services. The
model aims to identify those activities where information technology can be
applied effectively to help a firm in gaining an advantage over its competitors.
The basic activities that constitute a firm are classified into primary and
support activities. Primary activities are directly associated with production and
distribution of products or services of a firm that create value for the customer;
whereas, support activities provide support to primary activities. Various primary
and support activities along with the type of strategic information system that
can be used to make them cost-effective are listed in Table 6.1.
Table 6.1 Primary and Support Activities along with the
Type of Information System used
Activities Description Type of SIS used
Primary Inbound logistics Includes receiving and Automated warehousing
storing materials for systems
distribution
Operations Converts inputs into Computer-controlled

finished products machining systems
Outbound logistics Involves storing and Automated shipments

distributing finished scheduling systems
products
Sales and marketing Includes promoting and Computerized ordering

selling products systems
Service Includes maintaining Equipment maintenance

and repairing goods or systems
services
Support Organization A dministration, Electronic scheduling systems
infrastructure management
Human resource Hiring and training of Workforce planning systems

employees
Technology mproving products and Computer-aided design

production process systems
Procurement Purchasing inputs Computerized ordering

systems
Internet technologies enable firms to expand their value chain to include

customers, suppliers, and other business partners, thereby creating a value
web. A value web is a group of independent firms that coordinate their value
chain with the use of information technology to generate a product or service for

a market collectively. Using the value web, the firms can maintain long-term
relationships with their customers, as well as adjust to the changing demand
and supply needs.
6.5.3 Firm-Level Strategy and Information Systems

The overall performance of a firm depends on the performance of each business
unit. The performance can be improved if all the business units work together
instead of on their own and share their knowledge. The information systems
promote synergy by integrating separate business units so that they can act as
a whole. The business units are combined in such a way that the outputs of one
unit become inputs to other units, thereby lowering the cost and increasing the
profits.
Information systems encourage sharing of knowledge, and thus, help in
creating a core of competency. A core competency is an activity for which a firm
is the foremost leader. It may include the world’s best toymaker or the best
package delivery service. It depends on the knowledge that is obtained over
several years of experience and a good research organization. Such a system
also improves existing competencies and enables the employees to become
aware of the new external knowledge.
6.6 Success and Failure of MIS
Computer-based MIS has been hailed as the most important contribution to the
process of managerial decision making. However, a decision is as good as the
information it is based upon. Hence, some steps must be taken to improve
upon all areas that provide input to the system.
Some of the common misconceptions about MIS and some common
mistakes and some causes of MIS failures are as follows:
1. More information is better for effective decisions. This is a fallacy,
since the necessary information to be processed should be relevant and
no more. Simply more information will overburden the manager as he will
not be able to absorb and then sort out all the data. This process may be
further complicated since the manager may not know precisely as to what
information he wants and hence he may ask for ‘all the available
information’. These problems must be seriously addressed so that the
system could be designed in such a manner as to assimilate pertinent
information from all the data.

2. Lack of managerial involvement. Some of the companies which have

successfully utilized MIS have encouraged the manager-user to become
involved in the design of their own systems. Top management must be
ambitiously involved in the implementation of the system.
3. Failure of proper communications. Inter-departmental communication
must be precise, to the point and clear. Excessive inter-departmental
communication does not necessarily establish a foundation for more
effective decisions. While managers must be provided with relevant current
information, they do not always have to know what other managers and
their divisions are involved with. In indirect areas of communications, the
manager and the systems design specialist must work together so that
information is provided for decision making and the system does not simply
generate data for processing purposes.
4. Computers cannot do everything. It must be recognized that the
computers are not the panacea for all ills. Even though computers have
become highly sophisticated and are capable of handling tremendous
amount of data in a comparatively short time, they do not compensate for
sound managerial judgement. Accordingly, computers can only be used
as tools to facilitate managerial decision making process.
5. Human acceptance. The success of an MIS programme depends upon
the acceptance and involvement of personnel. User attitude is an important
factor affecting MIS success. Some users may resist MIS implementation.
This resistance may be due to economic threat to clerical workers because
they may fear losing their jobs or changes in their job patterns. It may also
be due to threat to managerial ego because the manager may fear loss of
autonomy and control because his job skills become less important as
planning and control functions are largely taken over by MIS.
Activity 2
Make a list of ten most common ‘managerial decisions’ made by the
computers used in MIS.

(a) Business strategy is long-term planning of organizations.

(b) The most commonly used model to support business-level strategies

is the Value Chain Model.
(a) ________ enable firms to expand their value chain to include
customers, suppliers, and other business partners, thereby creating
a value web.
(b) The success of an MIS programme depends upon the acceptance
and involvement of ________.
6.7 Summary

• Some of the continuously changing factors affecting the volume and the
type of information handled are as follows:
o Economic factors
o Technological factors
o Social changes
o Political-legal factors
• The designing phase of an MIS involves the following:
o Identifying various decisions that must be made to run an organization
o Setting objectives for the system
o Preparing a feasibility report
o Preparing a technical report
• The implementation of MIS consists of the following steps:
o Acquiring the necessary facilities, equipment and personnel.
o Training the personnel
o Installing the new MIS
o Testing the new MIS
o Operating the system
o Evaluating the MIS to see if it is doing what it was designed to do
• The field of study in MIS comprises two approaches, namely technical
and behavioural.

• The technical approach stresses on the use of mathematical models to

analyse information systems.
• The behavioural approach concentrates on the behavioural issues like
changes in organizational policies, management, behaviour, etc., that
occur while developing and maintaining the information systems.
• Bertram A. Colbert has categorized the limitations of the MIS into three
categories, namely—operational symptoms, psychological symptoms and
report content symptoms.
• Strategic information systems change the goals, operations, products,
services and processes of the organization to help it gain an edge over
the competitors.
• According to the Value Chain Model, every firm is a sequence of basic
activities, with each activity adding some value to its products or services.
• The overall performance of a firm depends on the performance of each
business unit.
• Computer-based MIS has been hailed as the most important contribution
to the process of managerial decision making.
6.8 Glossary
• Management information system (MIS): A system designed to provide

selected decision-oriented information needed by management to plan,
control and evaluate the activities of the corporation
• Strategic information system (SIS): The information system that helps
an organization to accomplish a long-term competitive advantage
• Primary activities: Activities that are directly associated with production
and distribution of products or services of a firm that create value for the
customer
• Support activities: Activities that provide support to primary activities
• Core competency: An activity for which a firm is the foremost leader
• Value web: A group of independent firms that coordinate their value chain
with the use of information technology to generate a product or service for
a market collectively

1. State why MIS is important.

2. What steps are involved in the design phase of MIS?
3. Discuss the various approaches to MIS.
4. Describe the limitations of MIS with the help of suitable examples.
5. What is meant by strategic MIS? Summarize its various aspects.
6. Is MIS a success or a failure?
6.10 Answers

2. (a) MIS; (b) Implementation
4. (a) Economists; (b) Management
6. (a) Internet technologies; (b) Personnel


1. Goyal, D.P. Management Information System: Managerial Perspectives.

New Delhi: Macmillan Publishers India, 2000.
2. Laudon, Jane P. and Kenneth C. Laudon. Management Information
System: Managing the Digital Firm. New Jersey: Prentice Hall, 2007.
3. Senn, James A. Analysis and Design of Information System. New York:
McGraw-Hill, 1984.

Unit 7 Concepts of
Structure
7.1 Introduction
Objectives
7.2 Importance of Organizational Process
7.3 Fundamental Concepts, Goals and Forces of Organizational Behaviour
7.4 Models of Organizational Behaviour
7.5 Employee Attitude and Individual’s Responsibilities towards
the Organization
7.6 Summary
7.7 Glossary
7.9 Answers
7.1 Introduction
In the previous unit, you read about the importance of Management Information
System (MIS). You also read about the implementation of MIS, approaches to
MIS, limitations of MIS, strategic MIS, and success and failure of MIS.
In this unit, you will read about the importance of organizational process
and its benefits for the efficient growth of a business. You will know how
appropriate identification and documentation of business processes is important
for the successful growth of an organization. In order to achieve the long-term
objective, i.e., profitability, you should clearly understand your business, which
will eventually help your company to overcome short-term hurdles of market
competitiveness, capital deficiencies and employee retention.
The unit will also discuss the fundamental concepts, goals and forces of
organizational behaviour, which together play a significant role in the growth of
an organization. Organizational behaviour aims to provide knowledge and
expertise to business graduates on how individuals and teams work together in
an organization to attain organizational objectives. It appears to be a product of
the union of several forces whose interaction and mutual adaption manage the
growth of the organization over time.
You will study the various models of organizational behaviour, such as
autocratic model, custodial model, supportive model, collegial model and system
model. These models present the growth of the thinking process and behaviour
of the management and the managers equally.
You will also study the nature of employee attitude, the formation of attitude
and the effects of employee attitude, with a focus on an individual’s responsibility
towards the organization.
Objectives
• Assess the importance of business process and its benefits for the efficient
growth of business
• Discuss the fundamental concepts, goals and forces of organizational
behaviour
• Analyse the models of organizational behaviour
• Critically examine the attitude of employees and an individual’s
responsibilities towards the organization
7.2 Importance of Organizational Process
You should always follow the ‘processes of executing business, whether you
are operating an accounting company, a retail store or a large corporate entity.
The companies, who follow the processes effectively, incur improved efficiency,
reduced operating costs, less waste and proper utilization of human resources.
You should never allow the size of your business to take a lead, directing you
into a state of affluence.
Often it has been noticed that large organizations withhold their lack of
processes through their capability to gain capital in order to cover the cost of
inefficiency. However, this is not possible for small entities who cannot afford to
avoid following the intricate business processes, which help in operating their
businesses.
Every aspect of your business involves a process, which includes:
• Acquiring and retaining human resources
• Marketing a product or service
• Supporting a product or service after the sale
• Researching new market opportunities

In order to understand the details of its business processes, a company

should make sure that they are well-documented. If there is no proper
documentation, then it will result in the working of individual teams in independent
groups. A business can be said to actually ‘own’ its process only if it is conceived
well, documented properly and archived so that it can be used for review, alteration
and/or enhancement in the future.
Whether your company is large or small in size, you should always
document your business processes as this will enable you to establish a ‘turn-
key’ operation. The advantages of a ‘turn-key’ operation are that the employees
need minimal training, have shorter learning curves for new hires and establish
a highly efficient operation through economies of scale.
Proper documentation and design of business processes result in several
benefits for an efficient growth of a business. Some of these benefits are as
follows:
• Increase in efficiency: You can increase the efficiency of your business
by the way the work is performed. You should identify the key processes
of your business as they will enable you to reduce operating cost and
increase profit margins.
• Employees to understand roles and responsibilities: If you clearly
define your business processes, then the employees will completely
understand their roles and responsibilities along with those of their co-
workers.
• Reduction of learning curve: By acquiring new employees and/or
promoting existing employees, documented business processes will
reduce the learning curve and set expectations.
• Expansion of business operations: If you define your business
processes clearly, it will help expand your business operations into new
locations. With the growth of your business, a complete, fully-defined
documented operating process will enable your company to operate in an
efficient manner.
• Increased production of goods and services: Once your business
processes are well defined, it will enable you to build new products and
services faster by controlling their operations in an efficient way.
• Reduction of vendors: Well-defined business processes help
organizations to reduce the need for consultants and outside vendors.

• Replicable through franchising: The business processes of a company

are its most important and valuable assets. Therefore, a complete
documentation of operations will enable to position the business model to
be franchised.
• Preparing for acquisition: Companies or investors that are planning to
acquire other businesses, look for companies which have well-organized
business models and operating efficiencies. Before acquiring such
businesses, they ensure that the profitable systems are clearly defined
through well documented processes.
• Reduction in the cost of business operations: The business operations
of a company improve through the economies of scale as it becomes
more familiar with the standard repeatable methods of the company.
· Retention of employees: The efficiency of employees increase as they
become familiar with their roles and responsibilities, and this also results
in strengthening their confidence. The execution of the well-defined
business processes sets the expectation for an employee to surpass in
terms of performance.
Therefore, the appropriate identification and documentation of your
business processes is very important for the successful growth of your
organization. In order to achieve long-term objective, i.e., profitability, you should
clearly understand your business, which will eventually help your company to
overcome short-term hurdles of market competitiveness, capital deficiencies
and employee retention.

(a) In order to understand the details if its business processes, a
company should make sure that they are _____________.
(b) Whether your company is large or small in size, you should always
document your business process as this will enable you to establish
a ‘__________’ operation.
(a) Proper documentation and design of business processes result in
several benefits for an efficient growth of a business.

(b) Well-defined business processes help organizations to reduce the

need for consultants and outside vendors.
7.3 Fundamental Concepts, Goals and Forces of

The study of organizational behaviour relates to the expected behaviour of an

individual in an organization. It is not likely that two individuals will behave in the
same manner in a particular work situation. Therefore, it is very important to
understand the credentials of an individual, his social background, educational
background, impact of social groups and other situational factors on behaviour.
In this section, we will study about the fundamental concepts, goals and factors
of organizational behaviour.
7.3.1 Fundamental Concepts

Very few people will disagree that the success of any organization is a direct
reflection of its managerial efficiency and effectiveness. A well-managed
organization can survive and even prosper during the most difficult economic
times, whereas business history is full of instances where badly managed
companies have declared bankruptcy even during economic upturns. Even
though organizational vitality depends upon a number of factors such as general
state of the economy, management and even luck—which means being in the
right business at the right time—it is primarily the managerial ability or inability
that determines the success or failure of an organization.
If the success of an organization is directly dependent upon the ability of
management, then which critical aspect of management differentiates a ‘good’
management from a ‘bad’ management? In other words, out of all the skills
required of management such as technical, analytical, conceptual and human
skills, which one is the most crucial to determine the success or failure of the
organization? While technical, analytical and conceptual skills are primarily
knowledge based and can be learned and predictably applied, it is human skills
that pose the greatest challenge to management due to complexity of human
psychological processes and unpredictability of human behaviour. Human skills
require effective interaction with others, and the quality of this interaction
determines the team spirit and dedication within the organization.
Management is commonly defined as ‘getting work done through other
people’. This simple definition explains the significance of the role of the people.

The work will not be done unless ‘people’ want to do the work, and if the work is
not done, then there will be no organization. Hence, it is the understanding and
the cooperation of the organizational workers that is crucial to the success or
failure of the organization.
Organizational behaviour is a relatively new area of study and research.
Even though its importance was understood at the same time as that of scientific
management proposed by Frederick Taylor—an American mechanical engineer
who sought to improve industrial efficiency—it emerged as a distinct area of
academic and managerial specialization in the late 1950s and early 1960s. There
came about a growing awareness that all managerial problems were not technical
in nature, and that productivity and organizational effectiveness did not depend
entirely on the mechanical processes. This awareness focused on the philosophy
that behavioural and social processes have significant impact on the workers in
the work place, and that an understanding and predictability of human behaviour
could help managers make their organizations more effective. Hence, the
emphasis shifted to social sciences as well as to psychologists, sociologists,
anthropologists and others who had been studying management problems from
behavioural perspective and trying to develop a valid and unified body of
knowledge concerning organizational behaviour.
The field of organizational behaviour
The study and understanding of human behaviour has posed a strong challenge
to both the scientific thinkers as well as behaviourists. They have long been
interested in finding out the causes of human behaviour. Science has always
been involved in the ‘cause’ and ‘effect’ phenomenon and the relationship between
them as to how a ‘cause’ causes its ‘effect’. Similarly, the behaviour scientists
want to find out why people behave the way they do. They want to find a common
denominator of human behaviour that can be generalized and classified into
standard causes that result into identifiable and functionally dependent patterns
of behaviour. By discovering and analysing these causes, the behaviour can be
predicted, manipulated and controlled.
Organizational behaviour is concerned with people’s thoughts, feelings,
emotions and actions in a work setting. Understanding an individual behaviour
is in itself a challenge, but understanding group behaviour in an organizational
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. Imagine, then, the mind-boggling complexity of a large

organization made up of thousands of individuals and hundreds of groups
with myriad relationships among these individuals and groups... Ultimately,
the organization’s work gets done through people, individually or
collectively, on their own or in collaboration with technology. Therefore,
the management of organizational behaviour is central to the management
task—a task that involves the capacity to ‘understand’ the behaviour
pattern of individuals, groups and organizations, to ‘predict’ what
behavioural responses will be elicited by various managerial actions,
and finally to use this understanding and these predictions to achieve
control.’
Organizational behaviour can then be defined as ‘the study of human
behaviour in organizational settings, the interface between human behaviour
and the organizational context, and the organization itself’.
The above definition has three facets—the individual behaviour, the
organization and the interface between the two. Each individual brings to an
organization a unique set of beliefs, values, attitudes and other personal
characteristics. The characteristics of all individuals must interact with each
other in order to create an organizational setting. The organizational behaviour
is specifically concerned with work-related behaviour that takes place in
organizations. Organizational behaviour is a synthesis of many other fields of
study and is built upon contributions from a number of behavioural disciplines.
The predominant area of psychology is concerned with the study of individual
behaviour. Other behavioural disciplines affect the group dynamics and the
organizational system.
7.3.2 Goals of Organizational Behaviour

Organizational behaviour aims to provide knowledge and expertise to the
business graduates about how individuals and team work together in an
organization to attain organizational objectives. The concepts included in
organizational behaviour enable managers to analyse the level of motivations of
individuals working in the organization. The concepts also allow them to deal
with all kinds of behaviours to be expected by the individuals. For instance,
motivation for a new employee need not be an increase in salary but can be
training and career advancement.
Therefore, it is important for managers to understand the individuals in the
organization. This will not only help them in meeting the needs of the employees
but also increase their job satisfaction. Besides, several theories and techniques
are also provided by organizational behaviour, which help to improve individual

performance in work group setting. It also enables them to envisage unforeseen

events and provides them the techniques to deal with the organizational issues.
7.3.3 Forces of Organizational Behaviour

Organizational behaviour seems to be a product of the union of several forces
whose interaction and mutual adaption manages the growth of the organization
over time. It is shaped by factors including the environment of the organization,
the decision taken by the management about the business strategy, the design
of the organizational processes, selection and promotion of the people, and the
behaviour of the employees and the top management.
Biological foundations of behaviour
It has been established that certain characteristics of behaviour are genetic in
nature and a human being inherits a certain degree of similarity to other individuals,
as well as uniqueness in the form of genes and chromosomes. Some of the
characteristics, such as physical traits including physical height, slimness,
dexterity, intellectual capacity and the ability to learn and logicalize, are all inherited
and have a wide impact on behavioural patterns.
According to R.S. Dwivedi, the structures of the nervous system play a
significant part in the emerging pattern of behaviour, thereby bringing about the
integration of human behaviour and personality. Some psychologists believe
that some aspects of human behaviour can be explained in terms of neural
activity and neuro-physiological processes. Dwivedi further explains:
Integration of human behaviour takes place because of the constant
functioning of receptors, effectors and connectors. Here, the nervous
system is primarily involved in the connecting process. The numerous
receptor cells attached to the individual’s sense organs tend to convert
physical and chemical events from the environment into neural events,
while the several effector cells attached to the muscles and glands convert
these neural events into responses.
These responses result in behavioural activity ranging from simple reflex
action to the complex creative activity.
Behaviour is sometimes easily explained by laymen as a reflection of the
state of the nervous system. This causal relationship is referred to continuously
during our daily routine impressions and conversations. For example, when
somebody loses patience quickly, we tend to brand him as ‘stupid’, and the
behaviour is explained by a lack of intelligence where intelligence reflects a state
of neural system. Similarly, a person whose behaviour is depressive is
considered to be having a ‘nervous breakdown’. In other words, it is implied that

a man exhibits a certain type of behaviour because he was ‘born that way’,
again pointing to genetic structure.
Causes of human behaviour
.The causes of human behaviour can be classified into two categories. These
are inherited characteristics and learned characteristics. Let us explain each of
these two in more detail.
1. Inherited characteristics Some of the inherited characteristics that may
or may not be changed by external forces and may or may not be important
determinants of performance are:
Physical characteristics: Some of these characteristics relate to physical
height, slim body, vision, dexterity and stamina, and have some bearing
on performance. Manual dexterity, for example, results in quality
performance in such jobs that require artistic manoeuvring. Similarly, tall
and slim people are expected to dress well and behave in a sophisticated
manner, and fat people are assumed to have a jovial nature.
Intelligence: Intelligence is primarily an inherited trait, even though children
of some very intelligent parents have turned out to be less intelligent and
vice-versa. It is also known that intelligence can be enhanced by proper
environment or by proper motivation. Einstein was not considered very
intelligent during his earlier years. In any case, intelligence as a trait is
related to certain behaviours. Intelligent people are easy to convince if the
point is right, and they can be expected to be much more stable and
predictable.
Sex: Being a male or a female is genetic in nature and can be considered
as an inherited characteristic. However, it is highly debatable whether being
a male or a female in itself is indicative of any behavioural patterns. Some
of the stereotyped assumptions that have no basis in genetic influences
are Men are expected to be tough while a women are expected to be
gentle, men ‘never cry’ and women are ‘highly emotional’, etc. These
behaviours are developed, if at all, due to differences in treatment that
boys and girls receive in the family environment.
Age: Since age is determined by the date of birth, it is a kind of inherited
characteristic. The age may affect the behaviour in physiological as well
as psychological ways. Psychologically, young people are expected to be
more energetic, innovative, risk taking and adventurous, while old people
are supposed to be conservative and set in their ways. Physiologically,

with age, older people experience waning of some of their faculties, such
as memory, stamina, coordination, etc., and hence the related behaviours
change as well. According to Lehman, the peak of creative ability is among
people between the ages of thirty and forty.
Religion: Religion and cultures based on religion play an important role in
determining some aspects of individual behaviour, especially those that
concern morals, ethics and a code of conduct. Highly religious people
have high moral standards and usually do not tell lies or talk ill of others.
They are highly contented, and thus strive for achievement and self-
fulfilment. Additionally, religion and culture also determine attitudes towards
work and towards financial incentives.
2. Learned characteristics Some of the behavioural characteristics that
account for enormous diversity in human behaviour are a product of our
exposure to various situations and stimuli, both within the family and the
outside environment. These characteristics are acquired by learning where
learning is defined as a ‘relatively permanent change in behaviour resulting
from interactions with the environment’.
Perception: Perception is the process by which information enters our
minds and is interpreted in order to give some sensible meaning to the
world around us. It is the result of a complex interaction of various senses
such as feeling, seeing, hearing, etc. Sayings and proverbs, like ‘things
are not what they seem’ or ‘all that glitters is not gold’, reflect a sense of
perception. ‘One man’s meat is another man’s poison’ is in a psychological
sense an indication that different people see and sense the same thing in
different ways.
Perception plays an important part in human as well as organizational
behaviour. For example, if a manager perceives a subordinate’s ability as
limited, he will give him limited responsibility, even if the subordinate, in
fact, is an able person. Similarly, we lose a lot of good friends due to our
changed perceptions about them.
Attitude: Attitude is a perception within a frame of reference. It is a way of
organizing a perception. In other words, it is more or less a stable tendency
to feel, think, perceive and act in a certain manner towards an object or a
situation. It is a tendency to act in a certain way, either favourably or
unfavourably, concerning objects, people or events. For example, if I say
that ‘I like my job’, I am expressing my attitude towards my work.

Attitude has three elements in it that lead to measurable outcomes. These

are feelings, thoughts and behaviours. Feelings and thoughts can be
measured by simply asking individuals about their feelings and opinions.
Behaviours can be measured either by actual overt actions or simply by
asking the person how he would act in a certain situation. By measuring
and integrating these three elements, a person’s attitude towards a given
situation can be established.
Personality: When we describe people as quiet and passive or loud and
aggressive or ambitious, we are portraying an aspect of their personality.
Personality is a set of traits and characteristics, habit patterns and
conditioned responses to certain stimuli that formulate the impression an
individual makes upon others. This personality may come out as warm
and friendly, or arrogant and aggressive. Many psychologists contend that
personality traits develop in the early childhood years and very few
personality changes can be made after the childhood years. Some
personality characteristics such as physical build and intelligence are
biological in nature. However, most traits are learned, for example, if a
person is patient, extrovert or introvert, or open minded, etc.
Values: Values, according to Milton Rokeach, represent basic convictions
that ‘a specific mode of conduct or end-state of existence is personally or
socially preferable to an opposite or converse mode of conduct or end-
state of existence’. They generally identify a person’s moral structure on
which the concept of good or bad and right or wrong is based. Values are
emotionally charged priorities and are passionately defended. Values and
behaviour are highly correlated. The values indicate behaviour pattern,
and while they do not necessarily and accurately predict behaviour when
behaviour occurs, it is likely to be in line with the values one holds. Value
system, according to Prof. A. Dasgupta, ‘is a framework of personal
philosophy which governs and influences the individual’s reactions and
responses to any situations’. These reactions and responses direct
individuals in a society to selectively attend to some goals and to
subordinate other goals. In other words, value systems represent a
prioritizing of individual values in relation to their relative importance.
Environmental effect on behaviour
While behaviour is a reaction to situations and the type of reaction is based
upon some inherited and some learned behavioural characteristics, the
environment is an important catalyst in determining such type of reactions. If the

environment is complementary to established behaviour, then the actions are

positively reinforced. However, if the environment is hostile to the values and
skills of the worker, then negative reactions take place. For example, some of
the coolest people have been known to lose temper under certain situations.
Highly skilled people have changed jobs because the environment in the job
situations was not conductive to their enhancement. On the other hand, less
skilled people have learned skills and forged ahead because of the right
environment.
The environment surrounding the work place has two elements. These
are physical and social. The physical environment at a work place is the
arrangement of people and things so that this setting has a positive influence on
people. Some of the physical factors that influence behaviour are noise level,
heat, light, ventilation, cleanliness, accessibility to work tools, space utilization,
colour coordination, nature of job, office furnishing and number of people working
at a given place. The open communication between the manager and the
subordinates has a positive effect on behaviour. The common cafeteria for
management and workers in the factories and offices in Japan has been known
to be highly motivating to workers. Recent studies on ‘open wall’ office concept
showed that some employees were more productive and satisfied with their
work place in open space when their jobs did not require private office space.
(i) Direct environmental forces
Competitors
Regulatory
agencies Customers
Organization
Labour Suppliers
Figure 7.2 Direct Environmental Forces
Customers: The basic reason for the existence of any business

organization is making profits and the profits are created by customers. Hence,
fulfilling the needs of the customers is an organization’s primary concern.
Accordingly, an organization must continuously monitor the consumer
environment in terms of any changes in customers’ needs or preferences.
Managers must also recognize certain buying preferences as passing fads and
plan accordingly. An example of such fads may be the Nehru jacket or the
designer jeans.

Competitors: Competition is the basic element of a free enterprise system.

The interest of both the organization and the customers are better served when
choices in the market are available. Competition encourages progress and
product developments. It forces organizations to be more innovative and
productive. For example, in 1955, Harley-Davidson held nearly 70 per cent of
the US motorcycle market, but by 1983, this share had been reduced to only 3.7
per cent. This steep decline can be attributed to aggressive competition by
Japanese companies such as Honda, Yamaha, Suzuki and Kawasaki, who
invaded the market with redesigned products and highly effective marketing
strategies. Harley-Davidson failed to envision the strong impact of effective
competition.
Regulatory agencies: Regulatory agencies are created by local, state
and federal government for the purpose of ensuring that organizations operate
within the enacted laws. In the US, these agencies enforce laws in their respective
fields and also introduce some of their own requirements that can be legally
enforced. These agencies regulate the activities of organizations in five principal
areas. These are: consumer protection, investor protection, environmental laws,
preservation of free market competition and labour conditions. The Consumer
Products Safety Commission (CPSC) and Food and Drug Administration (FDA)
protect the interests of consumers. Securities and Exchange Commission (SEC)
establishes how public companies must conduct financial and accounting
practices, and protects investors from illegal securities activities.
Labour: There is a very keen competition for qualified personnel and an
organization needs the right mix of workers in order to survive and prosper.
Accordingly, an organization must create and enhance an image of its
environment that is conducive to attracting skilled and ambitious workers.
Furthermore, it is necessary for the organization to establish such training
programmes that help in developing future managers and leaders. Human
resources are the most important resources for any organization because
without the skilled people, the sophisticated technology, capital and material are
of little value. Accordingly, supply of labour directly affects the successful
operations of an organization.
Suppliers: Since all organizations transform inputs of materials,
equipment, energy, capital and labour into outputs of products and services, an
organization must interact with a network of suppliers from whom these inputs
are obtained. This interaction is mutual and two-way. Just as an organization is
interested that its suppliers maintain the quality of the materials that it buys from
them, the suppliers are equally interested that the buyer organization brings out

quality output. Thus, the buyers and sellers are interacting continuously to
maintain such standards. Since quality and costs of raw materials determine
whether the output product can meet the quality standards of a competitive
market, many organizations look for suppliers from foreign resources that might
provide advantages in price, quality or quantity.
(ii) Indirect environmental forces
Economic
International Sociocultural
Organization
Technological Political
Figure 7.3 Indirect Environmental Forces
Economic forces: The general national and global economic conditions

do not have a direct and immediate effect on the operations of an organization,
but in general, they do have an indirect impact. Organizations respond to periods
of economic growth or recession in different ways. During prosperous times,
organizational expansion is more likely, and during times of recession, there is
retrenchment in operations and personnel. Economic forces are measured by
gross domestic product (GDP), rate of inflation, rate of unemployment, and so
on. Hence, management must continuously monitor and assess the general
economic environment, both at the present time as well as possible changes in
such environment in the future.
Socio-cultural factors: Social and cultural practices and changes
including the prevailing attitudes, values and ethics influence the organization.
Management must continue to monitor the changing patterns of social thinking.
For example, the work force is becoming more educated and more women are
joining the ranks of both blue collar and white collar workers. Accordingly, the
generally accepted stereotype role of women being less competent as managers
must be radically revised. .
Political factors: As we have discussed before, regulatory agencies and
legislation have direct impact on business practices. Hence, the philosophy of
business thinking on the part of elected officials has an indirect influence on the
organization. Accordingly, many organizations have lobbyists working on their
behalf at influencing legislators to either pass or defeat certain business-oriented
legislation depending upon whether it helps or hurts the organization.

Technological factors: We are living through the most dynamic

organizational environment where technological advancements and
breakthroughs are a continuously occurring phenomenon. Accordingly,
organizations must be able to respond quickly to new developments and create
innovations of their own. Some of the more recent major technological
developments that had a profound impact on most organizations and society in
general are the advent of high speed computers, lasers, microwave, robotics,
satellite communications, nuclear power, gene splicing, and so on. Accordingly,
organizations must be adaptable to new technologies and it is relevant from
behavioural point of view that man learns to get more out of machines and thus,
is in control of the environment.
International forces: Organizations that operate in more than one country
face even more complex scenarios because of the uniqueness of environmental
factors that characterize any country. Even if an organization is not international,
events in another country can affect the operations of a domestic company. The
oil policies of Middle East countries practically dictate the operations of many
organizations in other countries that depend on oil as their main source of energy.
Some of the factors to be taken into account in case of multinational companies
are the economic conditions in the host country, culture, availability of materials
and manpower, laws, political stability, regulatory agencies, and so on. According
to a group of writers, ‘The firm must determine how the new environment differs
from the more familiar domestic environment and decide how managerial
philosophy and practice must be changed’.
Exhibit 7.1
15 Best IT Companies to Work for in India

ET Bureau
Big may not always be the best, as reveals the Economic Times’ annual
“India’s Best Companies to Work For” survey. The survey done in
collaboration with Great places to Work Institute saw participation from over
20 different industry verticals.
And across industries it is not just the giants which form the major part of
the list, but it is the small and mid-sized companies.
The scenario is no different in IT and ITES sector. The sector which accounts
for over one-fourth of the top 50 companies crowned as Best Workplaces
in India has only few big names.

IT and ITES sector also showed the largest increase in the positive employee
perceptions about their workplaces ranging from 6-9 per cent points on
average.
Here, we look at the top 15 Best IT & ITES companies to work for in India
from the list.
A good place to work is no accident but Googlers are allowed to slip now
and then. It is part of the ‘Googliness’ that all employees must have in their
DNA. A lump of risk appetite, more than a dash of innovative spirit, a fistful of
adaptability and loads of affability make for this heady concoction. A note of
caution-even a pinch of bureaucracy would ruin it.
”Failure is encouraged here,” software engineer Deepak Raghuwanshi says.
He recounted that learnings from misses in product development to bad
canteen food are taken up with equal amount of participation. “It feels like
working in a start-up where there are no boundaries and the mission is to
have one Google moment a day,” says Rajan Anandan, VP, India Sales &
Operations.
Theatre workshops are held to speak about race/caste/gender bias practiced
in the subtlest manner. The recruitment process ensures that a new joinee,
or ‘Noogler’, is brought into the folds of the company right from day zero.
They have their desk ready along with a cubicle warming party thrown just
for them the day they join.
The bottom-up approach is made clear to such Nooglers who are
encouraged to ask questions and told that they have no specific KRAs or
managers breathing down their neck.
Source: http://timesofindia.indiatimes.com/itslideshow/8975713.cms

(a) ______________ is commonly defined as ‘getting work done through
other people’.
(b) Inherited and ____________ characteristics are the causes of human
behaviours.


(a) The success of any organization is an indirect reflection of its
managerial efficiency and effectiveness.
(b) Economic factors represent direct environmental forces.
7.4 Models of Organizational Behaviour
According to Keith Davis, there are four different models of organizational

behaviour. These models present the growth of the thinking and behaviour on
the part of the management and the managers equally. The four models of
organizational behaviour are as follows:
1. Autocratic model A successful autocratic framework depends on power.
People who occupy a position that demands command, must have the
power to demand work from the employees in a manner which would
reflect ‘you do this-or else’. This means that an employee who does not
obey orders will be penalized. The managerial orientation in an autocratic
environment is formal and official authority. In such an environment, the
employee is obedient to a boss, whether he respects him or not. This
results in the psychological dependence of the employees on the boss
who has an absolute power to hire, fire and ‘perspire’ them.
2. Custodial model A custodial model depends on economic resources.
In a custodial environment, the managerial orientation is towards capital
in order to pay wages and benefits to the employees. Since the physical
requirements of the employees are already met in a reasonable way, the
employer considers security as a motivating force. However, an
organization cannot follow a custodial model if it does not have the capability
to provide pensions and pay other benefits to its employees.
The custodial approach results in the dependence of the employees,
particularly in terms of security and welfare, on the organization and not
on their boss. While working in such an environment, the employees
become psychologically preoccupied with their economic rewards and
benefits. As a result of being treated well, they are satisfied to an extent.
But it is not necessary that the satisfaction will result in strong motivation;
rather it may produce only cooperation in a passive way. Therefore, in
such an environment, employees do not perform as effectively as they
would have performed under the old autocratic approach.

3. Supportive model This model depends on leadership, which enables

the management to create an environment that would allow the employees
to grow and achieve the interests of the organization. The leader believes
that the employees are not naturally passive and resistant to the
requirements of the organization, but they become so because of the lack
of supportive environment at the workplace, which would motivate them
to work actively. However, if a positive and supportive environment is
provided by the management, the employees will take responsibility, take
initiative to contribute and improve themselves. Therefore, besides
supporting employee benefit payments as in the custodial approach, the
management should also be responsible to support the employees’ job
performance.
4. Collegial model The collegial model is an effective extension of the
supportive model. The term ‘collegial’ refers to a group of people who
work together in a cooperative manner. This model depends on the
capability of the management to build a feeling of partnership with
employees. This makes the employees feel that they are useful and are
required by the organization. They also see the managers as contributing,
which helps them accept and respect their roles and responsibilities in
their organization in an easy way. The managerial orientation is, therefore,
towards teamwork.
In such an environment, the employees’ response is that of responsibility.
They produce quality work not because of a sense of pressure being
created by the management or because of the fear that they might be
caught if they do not, but because they themselves feel responsible
towards their work and feel that they should provide high quality work.
They also feel that it is their duty to maintain and further improve the quality
standards that will bring credit to their jobs and the organization.
This model further psychologically results in the self-discipline of the
employees. As the employees now feel responsible about their roles and
responsibilities, they discipline themselves in order to perform well in the
team.
Apart from the four models, as proposed by Keith Davis, experts believe
that there is another model which is vital part of organizational behaviour.
This model is the system model.
System model Managers should increasingly express their compassion
and care for both the professional and personal needs of the employees.

In response to this, employees are motivated to become more responsible

towards their work, thereby accepting the goal of organizational
effectiveness. They feel a sense of psychological ownership for the
company and its product and services.
Activity 1
Write an article of around 500 words on the significance of good
organizational behaviour principles, which are extremely central to keeping
the workforce happy and satisfied.

(a) According to __________, there are four different models of
organizational behaviour.
(b) The collegial model is an effective extension of the __________ model.
(a) A successful autocratic framework depends on economic resources.
(b) The collegial model psychologically results in the self-discipline of
the employees.
7.5 Employee Attitude and Individual’s Responsibilities towards

the Organization
Every employee, as members of the organization, is concerned about, contribute

to and react to the growing social consciousness in the organization. It is also
important to note that acts of social responsibility or irresponsibility can affect
the employees’ subsequent attitudes and behaviours.
7.5.1 Nature of Employee Attitude

Attitudes have four basic characteristics—direction, intensity, salience and
differentiation. The direction of an attitude is favourable, unfavourable or neutral.
We may like, dislike or be neutral in our views about a person, a job or a situation.
The intensity of the attitude refers to the strength of the effective component.
For example, we may dislike a person but the extent of our disliking would

determine the intensity of our attitude towards him. Such dislike may range from
weak to strong. In general, the more intense is the attitude, the more persistent
will be such behaviour. Salience refers to the perceived importance of the attitude.
Some people may not like to work with computers as they may not perceive it to
be as important as a student in computer information systems for whom the
knowledge of computers is mandatory for a career. Finally, attitudes can be high
or low in differentiation, depending upon how strong the supporting beliefs and
values of the person are.
The attitudes, irrespective of what they are, generally consist of three major
components. These are:
1. Evaluative component: The evaluative component of attitude is a function
of how we feel about something. It refers to our liking or disliking for a
particular person, any particular event or any particular situation. Such
person, event or situation becomes the focus of our attitude and is known
as ‘attitude object’. For example, you may feel positively or negatively
about your boss, about your friend, about the movie you have seen or
about anything you happen to see.
2. Cognitive component: Feelings, however, do not simply and
automatically develop. Most often, they are based on knowledge. For
example, if you know that your friend is talking ill about you behind your
back, then such knowledge would result in negative attitude towards your
friend. Similarly, you might believe that your supervisor does not know
much about the job. This belief is based upon your knowledge of how the
supervisor is handling the job. These beliefs, which may or may not be
justified, comprise the cognitive component of attitude.
3. Behavioural component: What you believe about something and how
you feel about it would determine your behaviour regarding that particular
person, event or situation. For example, if you believe that your boss is
embezzling company funds, and you feel negatively about it, you are likely
to behave with little respect for such a boss. You may either inform his
superiors about it or you may want to look for another job. You might also
simply ignore it by convincing yourself that it does not directly concern
you. Such predisposition to act in a certain way contributes to the
behavioural component of the attitude. In other words, your intention to
behave in a certain way dictates how you actually do.
Based upon these components, attitude can be defined as relatively stable
clusters of feelings, beliefs and behavioural predispositions. By including the

words ‘relatively stable’, we are referring to something that is neither permanent

nor fleeting. In other words, once attitudes are formed, they tend to persist and
can only be changed by strong outside or inside forces. For example, your
attitude towards someone may be negative but may change if situations or
circumstances change.
Attitude and behaviour
It is assumed that the relationship between the attitude of a person and his
behaviour is causal in nature. This means that the attitudes that people hold
determine their behaviour and what they do. Logic also suggests such a
relationship. For example, people watch television programmes that they like,
that is, their attitude about such programmes is positive.
Research conducted in the late sixties concluded that the relationship
between attitude and behaviour is, at best, minimal. More recent studies have
indicated that there is indeed a measurable relationship if moderating contingency
variables are taken into consideration. The moderating variables which have
been found to be most powerful include:
• Importance of the attitude
• Specificity of the attitude
• Accessibility of the attitude
Attitude formation
The question often arises, ‘how are the attitudes and subsequent behaviours
formed?’ While attitudes are basically learned over the years, some inherited
characteristics do affect such attitudes, for example, physical characteristics,
such as the height of a person. Tall and slim people are expected to be well-
dressed and behave in a sophisticated manner. Similarly, intelligence is primarily
an inherited trait and it is related to certain behaviours. Intelligent people are
considered to be much more logical and this affects their attitude.
While some attitudes are adopted early in life from our family values or
cultural environment, most are developed gradually over time through experiences
and observations. Some of the learned characteristics responsible for attitude
formation are:
• Experiences: Our personal experiences with people and situations
develop our attitude towards such persons and situations. Through job
experience, people develop attitudes towards working conditions, salaries,
supervision, group dynamics, and so on. Similarly, interaction with other
people would determine your attitude towards them. A positive interaction

with a person would result in a positive attitude towards that person. Many
people who are afraid of swimming or horse riding or darkness can trace
back this fear to some fearful or negative experiences in these areas in
the past.
• Perceptual biases: Perception is the result of a complex interaction of
various senses such as feelings, seeing, hearing and so on, and plays an
important part in our attitude and behavioural formation. For example, if a
manager perceives a subordinate’s ability as limited, he will give him limited
responsibility. Similarly, we lose many good friends due to our changed
perception about them.
• Observation of the other person’s attitude: When we like someone,
we try to emulate that person’s attitude. For example, when we are
impressed by someone keeping calm under stressful circumstances and
we appreciate such calmness, we might try to do the same. Similarly, our
attitude towards a spiritual person changes if we observe him committing
what we consider a sinful act.
• Association: Our association with the group we belong to strongly
influences our attitude. Our close association with a group would encourage
us to be consistent with the attitude of the group. Belonging to an elite
group or a religious group would determine some aspects of our attitude.
Family association determines our attitudes from the very beginning. There
is a high correlation between the parents and the children with respect to
attitude in many specific areas. Similarly, attitudes of our peers as we
grow older also influence our own attitudes. We make friends with people
who share our own attitudes, interests and preferences. Many a times,
our parents object to our friendship with persons whom they deem
undesirable and encourage us to make friends with those who have an
outlook similar to our own.
• Personality: Personality is a set of traits and characteristics, habit patterns
and conditioned responses to certain stimuli that formulate the impression
that a person makes upon others and this impression is a function of a
person’s attitude. This personality may come out as warm and friendly or
arrogant and aggressive. From an organizational behaviour point of view,
it is believed that people who are open-minded seem to work better than
those who are narrow-minded. Similarly, people who are extroverts and
outgoing are more likely to be successful as managers than those who
are introverts.

7.5.2 Effects of Employee Attitude

In one way or the other, attitudes and behaviours of employees are usually related.
For example, when an employee has a negative view about his job, or his superior
or even the company as a whole, it is more likely that they will care less about
their job, respect their senior or even will consider anything that will benefit the
organization. They will only do enough to get paid for their work. On the other
hand, if an employee likes his job, they will take pride in doing it correctly; if he
likes his superiors, he will communicate and participate with them; and if they
value the organization as a whole, they will look for ways to improve the company
as a whole.
Attitudes and productivity
There are two key work attitudes, which determine the importance of attitude-
behaviour relationship with respect to productivity. These are job satisfaction
and organizational commitment. Equally important are the complex relationships
between job satisfaction and job performance.
• Job satisfaction: Often we assume that a happy employee is a productive
employee. To some degree, this assumption is valid. Job satisfaction is
defined as a positive feeling about one’s job. A high degree of job satisfaction
reflects a high degree of happiness, and a high degree of happiness with
the job generally results in higher dedication to work and higher productivity.
A job is more than just an activity. There are different job elements that
may be responsible for determining the satisfaction and dissatisfaction
level of the employees. However, it may be a complex process to identify
the different job elements, such as interaction with co-workers and
superiors, following organizational policies and rules, meeting performance
standards, and so on.
• Organizational commitment: Organizational commitment refers to an
employee’s involvement and dedication to the organization and
identification with it. Such commitment goes beyond loyalty and requires
a serious and sincere effort on the part of employees to accomplish
organizational goals. Organizational commitment continues to be
influenced by continuous job experiences, with factors that affect job
satisfaction, and hence organizational commitment, such as pay,
relationship with superiors and co-workers, working conditions,
opportunities for advancement, challenges, and so on. With the passage
of time, organizational commitment becomes stronger as the workers
spend more time in the organizational environment and get to know the

other workers at a more personal level. Organizational commitment leads

to low absenteeism, high morale and high productivity. Committed
individuals tend to be more goal-directed which has a positive impact on
productivity.
7.5.3 Changing Employee Attitude

Attitudes of employees can be changed and sometimes it is in the best interests
of managements to try to do so.
Connect ‘attitude’ to observable behaviours that impact productivity
In order to deal with ‘attitude’ issues, the first step is to find out how the behaviour
of the employee is affecting the work. This can be done in the following way:
• Specific instances should be examined and noted down where the attitude
was evident.
• A list of the impacts observed should be prepared, such as resistance,
defensiveness from others, held up decisions, or delay.
• It should be decided as to how the output of the work group will be affected
by these impacts.
Following this, you should meet the employees to discuss about their
performance till now and your intention to train them in order to improve:
• The attitude issue should be raised by discussing the recent observations
made, naming the dates and situations.
• An explanation should be given about the observations and the employees
can be asked to give their views.
• You should be very particular when discussing about the current and future
impacts of their ‘attitude’ on the productivity of the group.
• The suggestions of the employees can be taken regarding how to improve
themselves and how the management can help them improve.
Raise the stakes and engage the employee in coordinating
his/her own change
Generally, most of the people change only when there are negative outcomes,
which can be avoided or dealt with by doing things in different ways. In order to
make positive change and acquire the benefits, we have to be more involved in
our work.

The next step now is to explain the employee the following:

• Both the supervisor and the employee should together decide on the
performance goal(s) for the remaining year, with a focus on the
‘attitude’ change that needs to be made.
• The employee should be asked to write and submit a plan of action
which has to be achieved.
• It should be determined as to how this change will be assessed.
Collect direct feedback from colleagues and internal customers
We are most attentive in knowing what other people are discussing about us,
especially in the workplace. In this case, following steps can be taken:
• Along with the employee, 5-8 questions should be prepared for the internal
customers to answer, with a focus on their approach to get the work done.
• 8-10 colleagues and internal customers should be identified who would
answer the questions prepared.
• A process should be developed and a time should be fixed for the employee
to collect the feedback and submit it in private to the supervisor.
• The supervisor should explain the employee that he will also ask 8-10
people to respond.
• The feedback given by the employee should be compiled and the
summarized findings should be discussed with the employee.
• The supervisor should reset the goals of the employee to improve.
In the beginning, it takes some extra efforts to follow these procedures.
But the next time, it becomes easier. It depends on how you deal with your first
‘attitude’ problem. This experience will give you enormous credibility with your
employees.
7.5.4 Responsibilities of an Individual to the Organization

1. Employee should understand his work: It is the responsibility of every
employee to understand the work which has been allotted to him and
decide if the allotted work is suitable for him. He should be confident that
he possesses the skills which are required to perform the task completely.
However, if the employee is not confident about how to handle the work,
he should discuss it with his superior and ask for guidance in completing
the task allotted to him. This will not only help the employee to establish
good relations with the superior but also his colleagues.

2. A proper work schedule should be prepared: The employee should

be provided with a proper work schedule with the deadlines for the work
allotted to him. This will help the employee in time management and
complete his work within the scheduled time.
3. Available resources should be used efficiently and responsibility
should be taken: As a part of the organization, the employees should
develop a sense of responsibility towards its existing resources. For this,
proper instructions should be given to the employees for smooth usage
and long life of the resources.
4. Employees should actively participate to become good team players:
Employees should actively participate in teams in order to become good
team players and cooperatively work to achieve the common goals of the
organization. When a new task is allotted, every employee should be eager
to take the initiative rather than trying to avoid it. This will help them to
learn new skills and also enable them to reach organizational goals with
much effectiveness.
5. Punctuality and regularity should be the prime responsibilities of
every employee: Every employee must be punctual and regular. This
will help him to be better organized. However, unnecessary and unexpected
work delays can be effectively dealt with.
6. Cleanliness should be strictly maintained: It is also the responsibility
of the employees to keep their work station clean, and also maintain
cleanliness of the organization’s premises. It is convenient to work in a
clean workplace, which further encourages the employees to work
diligently.
7. Washroom should be clean and hygiene should be maintained: The
employees should realize that they are not the only people who are using
the washroom. Each employee should follow the hygiene and cleanliness
rules to keep the washroom clean. They should make sure that they do
not spill water in the washroom and the wash basin, and therefore maintain
both health and hygiene.
8. Cost saving methods should be adopted: The employees should realize
the significance of cost effectiveness, and therefore develop a habit of
cost saving work style. They should also emphasize on waste control
methods.
9. Focus on improvement of work efficiency: It is the responsibility of
every employee to think about how to improve work efficiency and
organizational development.

Exhibit 7.2
Triplefin declared finalists in the ‘Best Places to Work’ competition
Triplefin, a leading provider of outsourced promotion and fulfilment solutions
to the Pharmaceutical and Consumer Goods industries, has earned a spot
on the Deloitte Cincinnati USA 100 list for the fourth consecutive year.
Accounting and consulting firm Deloitte ranks companies by their annual
sales revenue, as well as requires each firm to complete an in-depth survey,
to arrive at the 100 largest, privately held companies in Greater Cincinnati
and Northern Kentucky. The 2011 survey included questions about fiscal
projections, hiring and technology, as well as views on the direction of the
national and local economies. More than 400 firms were considered for this
honour, with Triplefin winning out the number 49 position, up from 55 in
2010.
Triplefin CEO Greg LaLonde attributes this achievement to the client-centric
culture at Triplefin. Why are Triplefin’s employees so good at keeping their
clients happy? Because they are happy! In addition to being named to
Deloitte’s Top 100 list, Triplefin was recently chosen as a finalist in the
Cincinnati Business Courier’s ‘Best Places to Work’ competition. Geri
Mittelhauser, Director of Human Resources, explains how Triplefin keeps
morale high and employees motivated to continually be at their best. ‘We
offer quarterly professional and personal training opportunities, focusing on
topics that rank the highest in our annual employee satisfaction survey. We
also encourage incentive programmes for exceptional client service, which
offer employees the chance to receive cash, gift cards or paid days off. We
highlight employee accomplishments in our monthly newsletter and also
have a reserved parking spot allotted for employee recognition. The positive
attitude of our employees is reflected in their interactions with clients and
that has played a huge role in generating new and repeat business.’
LaLonde added, ‘We are proud to say we have managed to create forty
new positions since 2010 in a time when many other companies are
downsizing. It is an honour to be a part of the Deloitte Cincinnati USA 100, a
programme that emphasizes the role organizations like Triplefin play in the
local economy. We are even more optimistic for 2012 and are excited to
see what the upcoming year holds for us.’
Source: Adapted from http://www.marketwatch.com/story/triplefin-earns-
the-49th-spot-on-the-deloitte-cincinnati-usa-100-list-with-160-million-in-
2010-revenue-2011-12-15 (Accessed on 19 December 2011)

Activity 2
In your opinion, which alternative steps would be more effective for reducing
absenteeism?

(a) The ___________ component of attitude is a function of how we feel
about something.
(b) It is assumed that the relationship between the attitude of a person
and his behaviour is ________ in nature.
(a) Attitude can be defined as relatively stable clusters of feelings, beliefs
and behavioural predispositions.
(b) Most attitudes are adopted by us in early stage of life from our family
values.
7.6 Summary
Let us recapitulate the important concepts discussed in the unit:

• Proper documentation and design of business processes result in several
benefits for an efficient growth of a business.
• In order to achieve long-term objective, i.e., profitability, you should clearly
understand your business, which will eventually help your company to
overcome short-term hurdles of market competitiveness, capital
deficiencies and employee retention.
• The study of organizational behaviour relates to the expected behaviour
of an individual in an organization.
• Organizational behaviour is concerned with people’s thoughts, feelings,
emotions and actions in a work setting.
• Organizational behaviour aims to provide knowledge and expertise to the
business graduates about how individuals and team work together in an
organization to attain organizational objectives.

• Organizational behaviour is shaped by factors including the environment

of the organization, the decision taken by the management about the
business strategy, the design of the organizational processes, selection
and promotion of the people, and the behaviour of the employees and the
top management.
• The causes of human behaviour can be classified into two categories.
These are inherited characteristics and learned characteristics.
• Values are important in relation to the study of organizational behaviour
because an organization is a composite of attitudes, perceptions,
personalities and individual behaviours of managers as well as workers.
• According to Keith Davis, there are four different models of organizational
behaviour. These models present the growth of the thinking and behaviour
on the part of the management and the managers equally.
• Every employee, as members of the organization, is concerned about,
contribute to and react to the growing social consciousness in the
organization. It is also important to note that acts of social responsibility or
irresponsibility can affect the employees’ subsequent attitudes and
behaviours.
7.7 Glossary
• Human resource: A term used to describe the individuals who make up

the workforce of an organization
• Franchising: The practice of using another firm’s successful business
model
• Anthropology: The scientific study of the origin, the behaviour, and the
physical, social, and cultural development of humans
• Semantics: The study of linguistic development by classifying and
examining changes in meaning and form
• Nervous system: An organ system containing a network of specialized
cells called neurons that coordinate the actions of an animal and transmit
signals between different parts of its body
• Astronomy: A natural science that deals with the study of celestial objects
(such as stars, planets, comets, nebulae, star clusters and galaxies) and
phenomena that originate outside the atmosphere of earth (such as the
cosmic background radiation)

• Value system: A set of consistent ethic values (more specifically the

personal and cultural values) and measures used for the purpose of ethical
or ideological integrity
• Gross domestic product (GDP): The market value of all final goods and
services produced within a country in a given period
• Attitude: A hypothetical construct that represents an individual’s degree
of like or dislike for something
• Absenteeism: A habitual pattern of absence from a duty or obligation
1. Explain the importance of organizational process. What are the benefits

of proper documentation and design of business processes?
2. What is organizational behaviour? List the various factors that are
considered to regulate individual behaviour.
3. What are the major causes of human behaviour? Discuss.
4. What are the different models of organizational behaviour? Discuss how
they impact the growth of an employee and the organization.
5. Explain the nature and effects of employee attitude.
6. Identify and discuss the various ways of changing employee attitude.
7.9 Answers
1. (a) Well-documented; (b) Turn-key

3. (a) Management; (b) Learned
4. (a) False; (b) False
5. (a) Keith Davis; (b) Supportive
7. (a) Evaluative; (b) Causal


5. Refer to Sections 7.5.1 and 7.5.2
1. Newstrom, John W. and Keith Davis. Organizational Behaviour: Human

Behaviour at Work. 11th edition. New Delhi: Tata McGraw Hill.
2. Robbins, Stephen P. Organizational Behavior. 12 th edition. New Delhi:
Prentice-Hall of India.
3. Aswathappa, K. Organizational Behaviour. 5th revised edition. Mumbai:
Himalaya Publishing House.
4. Ghosh, Biswanath. Organizational Behaviour: A New Look. Mumbai:
5. Sharma, R.A. Organizational Theory and Behaviour. 2nd edition.
New Delhi: Tata McGraw-Hill.
6. Chandan, J.S. Organizational Behaviour. 3rd edition. New Delhi: Vikas
Publishing House Pvt. Ltd.
7. Mishra, M.N. Organizational Behaviour. 1st edition. New Delhi: Vikas

Unit 8 Conflict and Stress
Structure
8.1 Introduction
Objectives
8.2 Introduction to Conflict
8.3 Conflicts: Levels and Sources
8.4 Conflict Resolution and Management
8.5 Understanding Stress
8.6 Potential Sources of Stress
8.7 Managing Stress
8.8 Counselling of Employees
8.9 Summary
8.10 Glossary
8.12 Answers
8.1 Introduction
The previous unit discussed the process,forces, goals and models of

organizational behaviour. The unit also acquainted you with the nature of
employees’s attitude and its (attitude) effects on the organization they
(employees) are associated with. This unit will discuss the role of two important
outcomes of organizational behaviour, namely conflict and stress.
Organizational conflict is the discord that arises when the goals, interests
or values of different individuals or groups are incompatible. There are many
types of organizational conflict. Interpersonal conflict is an activity that takes
place when a person, group, or subunit of an organization hinders the course of
achievement of goal, of another. In its typical type, conflict usually comprises
aggressive stance and behaviour, such as calling names, causing damage, or
at times, physical hostility.
Relationship conflict is concerned with interpersonal stress between
individuals that is related to their relationship as such and not the job in hand.
The supposed ‘personality clashes’ are instances of relationship disputes. Task
conflicts pertain to disputes related to the type of the job to be carried out. Process
conflicts include the disputes related to the manner in which the work should be
structured and completed. This unit will discuss the different styles or strategies
to manage conflicts, such as avoiding, accommodating, competing,

compromising and collaborating.
Stress at work is a rather new consequence of modern style of living. The
nature of work has undergone extreme alterations since the previous century
and it is still undergoing changes at tumultuous pace. Stress management begins
with the identification of the bases of stress in one’s life. On the basis of the size
of the organization, communicating the loss of a job and counselling is done by
same or different people within the organization. If the organization is large, the
loss of job and the counselling for the same are done by different people. If the
organization is small, the some person does the job of communicating and
counselling. Counselling forums can be created if the organization is sufficiently
large.
Objectives
• Identify a conflict
• Describe the levels and sources of conflict
• Discuss the ways to resolve and manage conflict
• Recognize stress
• Classify the potential sources of stress
• Demonstrate how to manage stress
• Summarize the significance of counselling employees and different
categories of counselling
8.2 Introduction to Conflict
Conflict, being an outcome of behaviours, is an integral part of human life.

Wherever there is interaction, there is conflict. Conflict can be defined in many
ways and can be considered as an expression of hostility, negative attitudes,
antagonism, aggression, rivalry and misunderstanding. It is also associated with
situations that involve contradictory or irreconcilable interests between two
opposing groups. It can be defined as a disagreement between two or more
individuals or groups, with each individual or group trying to gain acceptance of
its view or objectives over others.
Conflict must be distinguished from competition, even though sometimes
intense competition leads to conflict. Competition is directed towards obtaining

a goal and one group does not interfere with the efforts of another group. On the
other hand, conflict is directed against another group and actions are taken to
frustrate the other group’s actions towards the achievement of goals.
8.2.1 Changing View of Conflict

The traditional view considered conflict as harmful, destructive and unnecessary.
This view was consistent with the attitudes that prevailed among group behaviour
and interaction during 1930s and 1940s. The existence of conflict was regarded
as a sign that something had gone wrong and it needed to be corrected. The
view held that conflict is to be avoided at all costs. Both the scientific management
approach and the administrative school of management relied heavily on
developing such organizational structures that would specify tasks, rules,
regulations, procedures and authority relationships so that if a conflict develops
then these built-in rules and regulations would identify and correct problems of
such conflict. It was believed that the existence of conflict reflected poor
management and the deliberate efforts of trouble makers. Thus through proper
management techniques and attention to the causes of conflict, it could be
eliminated and organizational performance improved. The Human Relations
School subscribed to a similar theory that conflict is avoidable by creating an
environment of goodwill and trust. Since organizational conflict involves
disagreements on such factors as allocation of resources, nature of goals and
objectives, organizational policies and procedures, nature of assignments and
distribution of rewards, this conflict at its worst can lead to unnecessary stress,
blockage in communication, lack of cooperation, increased sense of distrust
and suspicion and this results in reduced organizational effectiveness.
Accordingly, management has always been concerned with avoiding conflict if
possible and resolving it soon if it occurs.
In recent years however, management scholars have shifted their view of
conflict. This view is known as behavioural view and it proposes that because
people differ in their attitudes, values and goals, conflict is but a natural outcome
in any group of people and that it can be helpful and constructive if it is handled
properly. The more modern view of conflict holds that conflict may in fact, under
certain situations, be necessary for performance effectiveness, because
harmonious, peaceful and cooperative groups can become static and such level
of conflict that keeps the group alive, self critical and creative is desirable and
management is usually encouraged to maintain such level of conflict. This is
especially true in such organizations as Research and Development, advertising
agencies, public policy groups and so on. Some of the positive consequences
of conflict are:

• It helps in analytical thinking: Conflict may induce challenge to such

views, opinions, rules, policies, goals and plans that would require a critical
analysis in order to justify these as they are or make such changes that
may be required, As H.M. Carlisle puts it, ‘no situation is more detrimental
to an organization than letting poor decisions go unchallenged.’
• It helps in increased cohesion: Conflict between different organizations
develops loyalty and cohesion within an organization and it develops a
greater sense of group identity in order to compete with outsiders. It fosters
in dedication and commitment to organizational and group goals.
• Conflict promotes competition and hence it results in increased
efforts: Some individuals are highly motivated by conflict and severe
competition. For example, a professor who is turned down for a promotion
due to conflict within the division may work harder to prove that he is more
capable and deserves a promotion. Similarly, if a group of production
workers during the day shift finds out that the similar group at night shift
produced more, it would result in the improved performance for the day
shift also. Thus such conflict and competition leads to high level of effort
and output.
• It serves as a foundation for organizational development: Conflict
with the status quo is a prerequisite to change. Creative and innovative
people are always looking for grounds to challenge the status quo. These
challenges lead to search for alternatives to existing patterns that leads to
organizational change and development.
• Conflict when expressed can clear the air and reduce tension: Some
disagreements if unexpressed, can lead to imaginative distortions of truth,
sense of frustration and tension, high mental exaggerations and biased
opinions resulting in fear and distrust. However, when it is expressed, it
may show the cause of conflict to be a minor one resulting in cooperation
and compromise.
1. Fill in the blanks with the appropriate words.

(a) The concept of _______, being an outcome of behaviours, is an
integral part of human life.
(b) Conflict with the status quo is a ________ to change.


(a) It is not necessary, to distinguish conflict from competition, intense
competition never leads to conflict.
(b) Some disagreements if unexpressed, can lead to imaginative
distortions of truth, sense of frustration and tension, high mental
exaggerations and biased opinions resulting in fear and distrust.
8.3 Conflicts: Levels and Sources
Since conflict has both positive and negative connotations and consequences,
it must be looked into and managed for useful purposes. The management
must survey the situation to decide whether to stimulate conflict or to resolve it.
Thomas and Schmidt have reported that managers spend up to twenty per cent
of their time in dealing with conflict situations. Hence, it is very important that
managers understand the type of conflict that they have to deal with so that they
can devise some standardized techniques in dealing with common
characteristics of conflicts in each type of category.
8.3.1 Levels of Conflicts

There are five basic levels of conflicts. These are:
(a) Conflict within the individual: The conflict within the individual is usually
value related, where the role playing expected of the individual does not
conform to the values and beliefs held by the individual. For example, a
secretary may have to lie on instructions that her boss is not in the office
to avoid an unwanted visitor or an unwanted telephone call. This may
cause a conflict within the mind of the secretary who may have developed
an ethic of telling the truth. Similarly, many Indians who are vegetarians
and visit America and find it very hard to remain vegetarians may question
the necessity of the vegetarian philosophy, thus causing a conflict in their
minds.
In addition to these value conflicts, a person may have a role conflict.
For example, a telephone operator may be advised and required to be
polite to the customers by her supervisor who may also complain that
she is spending too much time with her customers. This would cause a
role conflict in her mind. Similarly, a policeman may be invited to his
brother’s wedding where he may find that some guests are using drugs,
which is against the law. It may cause conflict in his mind as to which role

he should play–of a brother or of a policeman. Conflict within an individual

can also arise when a person has to choose between two equally desirable
alternatives or between two equally undesirable goals.
(b) Interpersonal conflict: Interpersonal conflict involves conflict between
two or more individuals and is probably the most common and most
recognized form of conflict. This may involve conflict between two
managers who are competing for limited capital and manpower resources.
For example, interpersonal conflicts can develop when there are three
equally deserving professors and they are all up for promotion, but only
one of them can be promoted because of budget and positional constraints.
This conflict can become further acute when the scarce resources cannot
be shared and must be obtained.
Another type of interpersonal conflict can relate to disagreements
over goals and objectives of the organization. For example, some
members of a board of a school may want to offer courses in sex education
while others may find this proposal morally offensive thus causing conflict.
Similarly, a college or a university may have a policy of quality education
so that only top quality students are admitted while some members of the
organizational board may propose ‘open admissions’ policy where all high
schools graduates should be considered for admission. Such a situation
can cause conflict among members of the governing board. In addition to
conflicts over the nature and substance of goals and objectives, they can
also arise over the means to reach these goals. For example, two
marketing managers may argue as to which promotional methods would
result in higher sales. These conflicts become highlighted when they are
based upon opinions rather than facts. Facts are generally indisputable
resulting in agreements. Opinions are highly personal and subjective and
may provide for criticism and disagreements.
These conflicts are often the results of personality clashes. People
with widely differing characteristics and attitudes are bound to have views
and aims that are inconsistent with the views and aims of others.
(c) Conflict between the individual and the group: All formal groups, as
well as informal groups have established certain norms of behaviour and
operational standards that all members are expected to adhere to. The
individual may want to remain within the group for social needs but may
disagree with the group methods, for example, in some restaurants, all
tips are shared by all the waiters and waitresses. Some particular waitress
who may be overly polite and efficient may feel that she deserves more,

thus causing a conflict within the group. Similarly, if a group is going on

strike for some reason, some members may not agree with these reasons
or simply may not be able to afford to go on strike, thus causing conflict
with the group.
This conflict may also be between the manager and a group of
subordinates or between the leader and the followers. A manager may
take a disciplinary action against a member of the group, causing conflict
that may result in reduced productivity. ‘Mutiny on the Bounty’ is a classic
example of rebellion of the crew of the ship against the leader, based
upon the treatment the crew received. The conflict among the armed forces
is taken so seriously that the army must obey their commander even if
the command is wrong and in conflict with what others believe in.
(d) Inter-group conflict: An organization is an interlocking network of groups,
departments, sections and work teams. These conflicts are not so much
personal in nature, as they are due to factors inherent in the organizational
structure. For example, there is active and continuous conflict between
the union and the management. One of the most common, unfortunate
and highlighted conflict is between line and staff. The line managers may
resent their dependence on staff for information and recommendations.
The staff may resent their inability to directly implement their own decisions
and recommendations. This interdependence causes conflict. These
conflicts that are caused by task interdependencies require that the
relationship between interdependent units be redefined, wherever the
values of these interdependent factors change, otherwise these conflicts
will become further pronounced.
These inter-unit conflicts can also be caused by inconsistent rewards
and differing performance criteria for different units and groups. For
example, salesmen who depend upon their commission as a reward for
their efforts may promise their customers certain quantity of the product
and delivery times that the manufacturing department may find it impossible
to meet, causing conflict between the two units.
Different functional groups within the organization may come into
conflict with each other because of their different specific objectives. There
are some fundamental differences among different units of the organization
both in the structure and the process and thus each unit develops its own
organizational sub-culture. These sub-cultures, according to Lawrence
and Lorsch, differ in terms of: (a) goal orientation that can be highly specific
for production but highly fluid for Research and Development, (b) time

orientation that is short run for sales and long run for research, (c) formality
of structure that is highly informal in research and highly formal in
production and (d) supervisory style that may be more democratic in one
area as compared to another.
A classic example of inter-unit conflict is between sales and
production, as discussed earlier. The sales department is typically
customer-oriented and wants to maintain high inventories for filling orders
as they are received, which is a costly option as against the production
department that is strongly concerned about cost effectiveness requiring
as little inventory of finished product at hand as possible.
Similarly, inter-group conflict may arise between day shift workers
and night shift workers who might blame each other for anything that goes
wrong from missing tools to maintenance problems.
(e) Inter-organizational conflict: Conflict also occurs between organizations
that in some way are dependent on each other. This conflict may be
between buyer organizations and the supplier organizations about quantity,
quality and delivery times of raw materials and other policy issues, between
unions and organizations employing their members, between government
agencies that regulate certain organizations and the organizations that
are affected by them. These conflicts must be adequately resolved or
managed properly for the benefit of both types of organizations.
8.3.2 Sources of Conflict

The various types of conflict as discussed above have already been pointed out
in the previous discussion. Basically, the causes of conflict fall into three distinct
categories. Accordingly, these causes can be restructured and placed into one
of these categories. These categories deal with communicational, behavioural
and structural aspects.
Communicational aspects of conflict
Poor communication, though not reflecting substantive differences, can have
powerful effect in causing conflict. Misunderstood or partial information during
the process of communication can make a difference between the success
and the failure of a task and such failure for which the responsibility becomes
difficult to trace can cause conflict between the sender of the communication
and the receiver of the communication. Thus the problems in the communication
process – whether these problems relate to too much or too little communication,
filtering of communication, semantic problems or noise–act to retard collaboration

and stimulate misunderstanding. The filtering process occurs when information

is passed through many levels or when it passes through many members. The
amount of information is functional up to a point, beyond which it become a
source of conflict. Semantic difficulties arise due to differences in backgrounds,
differences in training, selective perception and inadequate information about
others.
As an example, if a manager going on an extended vacation fails to
communicate properly with his subordinates as to who would be doing what; he
will find these jobs only partially done with subordinates blaming each other for
not completing the tasks. Accordingly, adequate, complete, and correctly
understood communication is very important in orderly completion of tasks, thus
reducing the chances of a conflict.
Behavioural aspects of conflict
These conflicts arise out of human thoughts and feelings, emotions and attitudes,
values and perceptions and reflect some basic traits of a personality. Thus some
people’s values or perceptions of situations are particularly likely to generate
conflict with others.
For example, highly authoritarian and dogmatic persons are more prone
to antagonize co-workers by highlighting minor differences that might exist and
may overreact causing a conflict. This conflict may also be based on personal
biases regarding such factors as religion, race or sex. Some men feel poorly
about women workers. These conflicts are not about issues but about persons.
Some families carry on enmity for generations.
The conflict can also arise due to differing viewpoints about various issues.
For example, two vice-presidents may differ in their viewpoints regarding which
strategic plan to implement. The value based conflicts arise due to different
values that may be culturally based. For instance, one vice-president may want
to retire some workers to save costs while another vice-president may have
human sensitivity and support other methods of cutting costs. As another
example, a professor may value freedom of teaching methods and a close
supervision of his teaching technique is likely to induce conflict.
From an organizational behaviour point of view, there is conflict between
the goals of the formal organization and the psychological growth of the individual.
While the formal organization demands dependency, passivity and to some
degree obedience from its members, the psychologically developed individuals
exhibit independence, creativity and a desire to participate in decision making

and decision implementing process. The needs of individuals and the formal
organization being inconsistent with each other, result in behavioural conflict.
Structural aspects of conflict
These conflicts arise due to issues related to the structural design of the
organization as a whole as well as its sub-units. Some of the structurally related
factors are:
• Size of the organization: The larger the size of the organization, the
more the basis for existence of conflict. It is likely that as the organization
becomes larger, there is greater impersonal formality, less goals clarity,
more supervisory levels and supervision and greater chance of information
being diluted or distorted as it is passed along. All these factors are breeding
grounds for conflict.
• Line-staff distinction: One of the frequently mentioned and continuous
source of conflict is the distinction between the line and staff units within
the organization. Line units are involved in operations that are directly
related to the core activities of the organization. For example, production
department would be a line unit in a manufacturing organization and sales
department would be considered line unit in a customer oriented service
organization. Staff units are generally in an advisory capacity and support
the line function. Examples of staff departments are legal department,
public relations, personnel and research and development.
• Participation: It is assumed that if the subordinates are not allowed to
participate in the decision making process then they will show resentment
that will induce conflict. On the other hand ironically, if subordinates are
provided with greater participation opportunities, the levels of conflict also
tend to be higher. This may be due to the fact that increased participation
leads to greater awareness of individual differences. This conflict is further
enhanced when individuals tend to enforce their points of view on others.
• Role ambiguity: A role reflects a set of activities associated with a certain
position in the organization. If these work activities are ill defined, then the
person who is carrying out these activities will not perform as others expect
him to, because his role is not clearly defined. This will create conflict,
especially between this individual and those people who depend upon his
activities. A hospital or a medical clinic employing a number of physicians
with overlapping specialties might cause conflict due to role ambiguity.
Such conflict can be reduced by redefining and clarifying roles and their
interdependencies.

• Design of work-flow: These are primarily inter-group problems and

conflicts that are outcomes of poorly designed work-flow structure and
poorly planned coordination requirements, especially where tasks are
interdependent. According to Sashkin and Morris, ‘organizations are made
up of many different groups that must work together towards the
accomplishment of common objectives.’ For example, in a hospital, the
doctors and nurses must work together and their tasks are highly
interdependent. If they do not coordinate their activities well, then there
will be confusion and conflict. Similarly, in a restaurant, the cook and the
waiter depend upon each other for critical information and uncoordinated
activities between the cook and the waiter would create conflicts and
problems.
• Scarcity of resources: When individuals and units must share such
resources as capital, facilities, staff assistance and so on, and these
resources are scarce and there is high competition for them then conflict
can become quite intense. This is especially true in declining organizations,
where resources become even scarcer due to cutback in personnel and
services so that the concerned units become highly competitive for the
shrinking pool thus creating hostility among groups who may have put up
a peaceful front at the time of abundance. For example, two research
scientists who do not get along very well, may not show their hostility until
a reduction in laboratory space provokes each to protect his area.

(a) Since conflict has both positive and ________ connotations and
consequences, it must be looked into and managed for useful
purposes.
(b) A manager may take a disciplinary action against a member of the
group, causing conflict that may result in reduced __________.
(a) There are five basic levels of conflicts.
(b) Interpersonal conflict involves conflict between two or more individuals
and is never the common and recognized.

8.4 Conflict Resolution and Management
Except in very few situations where the conflict can lead to competition and
creativity, the conflict can be encouraged, in all other cases where conflict is
destructive in nature, it should be resolved as soon has it has developed and all
efforts should be made to prevent it from developing.
8.4.1 Preventing Conflict

Some of the preventive measures that the management can take, according to
Schein are:
• Goal structure: Goals should be clearly defined and the role and
contribution of each employee towards the organizational goal must be
clearly identified. All divisions and the individuals in these divisions must
be aware of the importance of their role and such importance must be
fully recognized.
• Rewards system: The compensation system should be such that it does
not create individual competition or conflict within the division. It should be
appropriate and proportionate to the group efforts and reflect the degree
of interdependence among divisions, where necessary.
• Trust and communication: The greater the trust among the members of
the division, the more honest and open the communication among them
would be. Individuals and departments should be encouraged to
communicate openly with each other so that they can all understand each
other, understand each other’s problems and help each other when
necessary.
• Coordination: Coordination is the next step to communication. Properly
coordinated activities reduce conflict. Wherever there are problems in
coordination, a special liaison office should be established to assist such
coordination.
8.4.2 Resolving Behavioural Conflict

Various researchers have identified five primary strategies for dealing with and
reducing the impact of behavioural conflict. Even though different authors have
given different terminology to describe these strategies, the basic content and
approach of these strategies remain the same. These are:
• Ignoring the conflict: In certain situations, it may be advisable to take a
passive role and avoid conflict all together. From the manager’s point of

view, it may be especially necessary when getting involved in a situation

would provoke further controversy or when conflict is so trivial in nature
that it would not be worth the manager’s time to get involved and try to
solve it. It could also be that the conflict is so fundamental to the position
of the parties involved that it may be best either to leave it to them to solve
it or to let events take their own course. The parties involved in the conflict
may themselves prefer to avoid conflict, especially if they are emotionally
upset by the tension it causes. Thus people may try to get away from
conflict causing situations.
• Smoothing: Smoothing simply means covering up the conflict by appealing
for the need for unity rather than addressing the issue of conflict itself. An
individual with internal conflict may try to ‘count his blessings’ and forget
about the conflict. If two parties have a conflict within the organization, the
supervisor may try to calm things down by being understanding and
supportive to both parties and appealing to them for cooperation. The
supervisor does not ignore or withdraw from the conflict nor does he try to
address and solve the conflict but expresses hope that ‘everything will
work out for the best of all.’ Since the problem is never addressed, the
emotions may build up further and suddenly explode. Thus smoothing
provides only a temporary solution and conflict may resurface again in the
course of time. Smoothing is a more sensitive approach than avoiding in
that as long as the parties agree that not showing conflict has more benefits
than showing conflict, then such conflict can be avoided.
• Compromising: A compromise in the conflict is reached by balancing the
demands of the conflicting parties and bargaining in a ‘give and take’
position to reach a solution. Each party gives up something and also gains
something. The technique of conflict resolution is very common in
negotiations between the labour unions and management. It has become
customary for the union to ask for more than what they are willing to accept
and for management to offer less than what they are willing to give in the
initial stages. Then through the process of negotiating and bargaining,
mostly in the presence of arbitrators, they reach a solution by
compromising. This type of compromise is known as integrative bargaining
in which both sides win in a way.
Compromising is a useful technique, particularly when two parties
have relatively equal power, thus no party can force its viewpoint on the
other and the only solution is to compromise. It is also useful when there
are time constraints. If the problems are complex and many faceted, and

the time is limited to solve them, it might be in the interest of conflicting

parties to reach a compromise.
• Forcing: As Webber puts it, ‘the simplest conceivable resolution is the
elimination of the other party–to force opponents to flee and give up the
fight–or slay them.’ This is a technique of domination where the dominator
has the power and authority to enforce his own views over the opposing
conflicting party. This technique is potentially effective in situations such
as a president of a company firing a manager because he is considered
to be a trouble-maker and conflict creator. This technique always ends up
in one party being a loser and the other party being a clear winner. Many
professors in colleges and universities have lost promotions and tenured
reappointments because they could not get along well with their respective
chairpersons of the departments and had conflicts with them. This
approach causes resentment and hostility and can backfire. Accordingly,
management must look for better alternatives, if these become available.
• Problem solving: This technique involves ‘confronting the conflict’ in order
to seek the best solution to the problem. This approach objectively
assumes that in all organizations, no matter how well they are managed,
there will be difference of opinions that must be resolved through
discussions and respect for differing viewpoints. In general, this technique
is very useful in resolving conflicts arising out of semantic
misunderstandings. It is not so effective in resolving non-communicative
types of conflicts such as those that are based on differing value systems,
where it may even intensify differences and disagreements. In the long
run, however, it is better to solve conflicts and take such preventive
measures that would reduce the likelihood of such conflicts surfacing again.
Exhibit 8.1
The Maruti – Suzuki Conflict

In August 1997, the Government of India (GoI) appointed R.S.S.L.N.
Bhaskarudu (Bhaskarudu) as the managing director (MD) of India’s
passenger car market leader Maruti Udyog Ltd. (MUL). The appointment
was strongly opposed by Suzuki Motors Corporation (SMC) of Japan, the
GoI’s 50% partner in MUL joint venture. In a press release following the
appointment, Osamu Suzuki (Osamu), President of SMC, claimed that the
appointment was illegal on the grounds five of the directors who comprised

the majority of MUL’s board strength of nine, had objected to the appointment.
Suzuki even alleged that Bhaskarudu was incompetent and unsuitable for
the MD post. The GoI argued that as per the 1992 amendment in the GoI-
SMC joint venture agreement, both the partners were entitled to nominate
the MD for five years in turns, and there was no need for any consultation
on it. SMC asked for Bhaskurudu’s resignation claiming that the minutes of
the meeting when Bhaskurudu was appointed, did not fully record its
objections to the same. However, the GoI refused to remove Bhaskurudu
and reportedly even started looking for a prospective partner in the event of
SMC’s exit.
Soon after, in the AGM, SMC and the GoI representatives even resorted to
verbal violence. SMC nominees on the board attempted to prove
Bhaskarudu’s unsuitability of the post by questioning him regarding MUL’s
functioning. When Bhaskarudu’s appointment was put to vote, there was a
tie. Prabir Sengupta (Sengupta), Chairman of the MUL board, used his
casting vote to ratify the appointment. Following this, SMC nominees passed
a no confidence motion against Sengupta and proposed the name of Yoshio
Saito (Saito) for the chairmanship.
The GoI strongly backed Sengupta stating that he should be allowed to
complete his scheduled term of five years until 2000. SMC then lodged an
arbitration petition against Bhaskarudu’s appointment in the International
Court of Arbitration. In June 1998, the new ruling Bharatiya Janata Party
(BJP) government intervened into the issue and arranged for an out-of-
court settlement between the parties. As per the settlement deal, Bhaskarudu
was to step down in December 1999, two years ahead of schedule and
Khattar was to replace him in January 2000. Further, Saito was to replace
Sengupta as the chairman. Thus, the dispute between SMC and GoI were
put to rest.
Source: http://www.icmrindia.org/casestudies/catalogue.htm
8.4.3 Resolving Structure- Based Conflicts

The structure-based conflicts are built around organizational environments and
can be resolved or prevented by redesigning organizational structure and work-
flow. A general strategy would be to move towards as much decentralization as
possible so that most of the disputes can be settled at the lower levels in the
organization, and faster too.
Since interdependency is one of the major causes of conflict, it is necessary
to identify and clarify poorly defined and poorly arranged interdependencies or to

make these adequately understood and reliable. This can be achieved through
unifying the work-flow. This work-flow can be designed either to increase the
interdependencies or to eliminate them entirely. Increased interdependencies
can be achieved through more frequent contacts and improved coordinating
mechanisms. This would make the two interdependent units act as a single unit
thus eliminating the cause of conflict. The other extreme could be to make the
two units totally independent of one another. For example, in the case of units
building an automobile engine, instead of an assembly line operation in which
each person or unit is involved in sequential assembly so that each unit depends
upon the work of the previous units, each major unit can work on the entire
engine at the same time.
However, these extremes are not in common practice. More often, the
strategy would be to reduce the interdependence between individuals or groups.
A common approach to do that is by ‘buffering’. Buffering requires that sufficient
inventories be kept on hand between interrelated units so that they always have
the materials to work with thus reducing their interdependency. Another cause
of conflict, is the undefined, unclear and ambiguous job expectation. It is important
to clarify what each individual and each subunit is expected to accomplish. This
would include authority-responsibility relationship and a clear line of hierarchy.
In addition, policies, procedures and rules should be clearly established and all
communication channels must be kept open so that each person knows exactly
what role he has to play in the hierarchical structure. This would avoid situations
in which none of the two units does the job because each thought the other was
supposed to do or both units do the same job thus duplicating efforts due to
misunderstanding. Thus, if each subordinate is fully aware of his responsibility,
then such problems would not occur.
8.4.4 Stimulating Conflict

It has been pointed out earlier that under certain circumstances, conflict is
necessary and desirable in order to create changes and challenges within the
organization. In such situations the management would adopt a policy of conflict
stimulation so that it encourages involvement and innovation. How does the
manager recognize a situation that is vulnerable to conflict stimulation? Some
of the factors for creating conflict are: too much satisfaction with the status quo,
low rate of employee turnover, shortage of new ideas, strong resistance to
change, friendly relations taking precedence over organizational goals and
excessive efforts at avoiding conflict. Some of the ways of stimulating conflict
as suggested by S.P. Robbins are:

• Appoint managers who support change

• Encourage competition
• Manipulate scarcity
• Play on status differences
8.4.5 Interpersonal Trust Building

While there are a number of behavioural as well as organizational factors, as
discussed before, that contribute to the existence of conflict, there may be just
one single factor that may be highly contributory to reducing that conflict. This
factor is ‘trust’. Trust is, highly intangible element but very important in our civilized
living. Its presence or absence can govern our inter-personal behaviour to large
extent. Our ability to trust has a great impact on our working lives, our family
interactions and our achievement of personal and organizational goals.
Since trust is a function of behaviour, such behaviours that lead to
defensiveness must be identified and modified. These defensive or aggressive
behaviours create a climate that is conducive to mistrust thus leading to conflict
in interpersonal areas. Jack Gibb has identified certain behaviours that he calls
‘aggressive’ behaviours that should be avoided and certain behaviours which he
calls ‘supportive’ behaviours that tend to reduce defensiveness and conflict and
should be promoted.
Dr. John K. Stout of the university of Scranton, writing in ‘Supervisory
Management’ (February 1984), suggests that these behaviours are not
necessarily mutually exclusive, nor should all the aggressive behaviours be
avoided under all circumstances, but in general the supportive behaviour
attitudes should be adopted as much as possible.
8.4.7 Negotiation
Negotiation is the process of making joint decisions when the parties involved in
negotiation have different and opposing preferences. Negotiation has special
significance in situations of conflict, whether it is conflict between union and
management in organizations or between countries such as India and Pakistan,
where negotiations may be required to resolve the conflict over Kashmir. Conflicts
and disagreements are likely to arise in work settings over such diverse matters
as wages, performance evaluation, working conditions, job assignments, work
schedules and so on.
In any type of negotiations, two important goals must be considered. One
goal involves substance and other involves relationships. Reaching agreement

on wage increases would be achievement of substance goal. The relationship

goal deals with the outcomes that relate to how well the negotiating parties are
able to work with each other, once the negotiation process has been concluded.
An effective negotiation occurs when substance issues are resolved without
negatively affecting the working relationships. In most organizations in America,
the union and management remain in good and cordial relationship after the
fight is over.
Negotiation strategies
Many different models of negotiation have been put forward by theorists and
practitioners, but they generally follow one of the two approaches. One is known
as the ‘distributive negotiation’, and the other is known as the ‘integrative
negotiation’. The distributive negotiation is a zero sum game in which parties
are in a state of competition, whereby each party seeks dominance over the
other and tries to maximize its own self-interests. Since the self-interest is to
get the most out of the available resources and since the pool of the available
resources is fixed, whatever one party wins the other party must lose. Integrative
negotiation, on the other hand, is a collaborative model in which the parties seek
to expand the range of possible outcomes and thereby maximize their individual
benefits by sharing in the collective efforts and results. For example, a union
may get better wages and in response may produce more in terms of quantity
and quality. In such a situation, both the union as well as the management wins.
Characteristics of distributive negotiations
A case of distributive negotiation can either be a hard one or a soft one. The hard
distributive negotiation takes place when each party holds out for what it wants
without any compromise. Many times such attitude leads to an impasse. This
happened in the case of Eastern Airlines, where the union’s demands were
considered very high and the management refused to give in. The result was a
strike by the workers and the end result was that the airline went into bankruptcy
and ceased to exist.
In a soft distributive negotiation, both parties follow the give and take policy,
make concessions, compromise on some issues and reach an agreement that
is realistic and acceptable. In general, one party asks for much higher benefits
than it is willing to accept and the other party offers much less than it is willing to
give. Then by negotiation and compromise, they meet some where in the middle
and both parties are happy. This meeting point is some where in the bargaining
zone. This bargaining zone is defined by the following example:
‘A graduate with MBA degree is negotiating a job offer with a company
manager. He believes that he should get $ 70,000 per year in salary but would

be willing to settle for $ 60,000 per year. That is the lowest salary he will accept
for the job. The manager would like to offer $ 55,000 per year but would be
willing to go up to $ 65,000 per year. Thus the minimum value of $ 60,000 for the
graduate and maximum offer of the manager of $ 65,000 create a bargaining
zone between $ 60,000 and $ 65,000. Negotiation takes place within this zone’.
Similarly, purchasing a car or a house represents distribute negotiation with a
bargaining zone to maneuver the price.
Distributive negotiation is a necessary way of resolving differences between
parties with mutually exclusive goals. Parties to the negotiation will withhold as
much information as possible to gain an advantage and at the same time, they
will try to get as much information from the opposing party as possible. Negotiators
will generally have a very good idea as to what they are trying to accomplish and
this is perhaps the most critical point of skillful negotiation. Negotiation should
focus on realistic issues and not on egos about winning and not losing.
Activity 1
Find out why ‘game theory’ is the most widely used method of resolving
workplace conflict.

(a) _____ should be clearly defined and the role and contribution of each
employee towards the organizational goal must be clearly identified.
(b) In certain situations, it may be advisable to take a ______ role and
avoid conflict all together.
(a) Smoothing simply means covering up the conflict by appealing for
the need for unity rather than addressing the issue of conflict itself.
(b) Interdependency is not a major cause of conflict.
8.5 Understanding Stress
Stress is a state of mind that reflects certain biochemical reactions in the human
body and is projected by a sense of anxiety, tension and depression and is
caused by such demands by the environmental forces or internal forces that

cannot be met by the resources available to the person. The intensity of such
demands that require a readjustment of resources or operational styles would
determine the extent of stress. Such environmental events or conditions that
have the potential to induce stress are known as ‘stressors’.
Medical researcher Hans Selye first used the term ‘stress’ to describe the
body’s biological response mechanisms. He defined stress as ‘the nonspecific
response of the body to any demand’. It must be understood that for the stress
to occur, the response should be non-specific. All responses require utilization
of energy. Any demand made on the body that is for some specific activity that is
natural, expected and a part of daily routine, does not necessarily create stress.
Even walking, thinking, writing and doing physical activities that are a part of
personal and organizational existence, require energy consumption of the body
but are not necessarily stress producing forces.
Stress does not necessarily occur due to undesirable developments. All
situations that produce increased demand on a vital activity requiring adaptation
to a new situation, produce stress in the form of a stereotyped pattern of bio-
chemical, functional and structural changes in the human organism. These
situations could be fear, pain, fatigue, emotional arousal, humiliation, frustration,
need for concentration, loss of blood, drugs, loss of a loved one, non-occurrence
of an expected event and even unexpected successes that require a change in
the operational style.
The stress created by desirable and successful events is called ‘eustress’
and the stress created by undesirable outcomes is known as ‘distress’. It is
primarily the distress form of stress that requires examination and steps to cope
with it. Eustress is a positive, healthy and developmental stress response. Thus,
just as tension on muscles causes them to strengthen, some level of stress
may lead to better performance and a more adjusted personality. Since we learn
how to deal with our problems better, it improves our capacity to confront distress
better. However, even though some levels of stress are necessary for
psychological growth, creative activities and the acquisitions of new skills such
as learning to drive a car or learning the use of a computer, it is the highly stressful
situations that weaken a person’s physical and psychological capacity to cope
with the stressors that have dysfunctional consequences. Just as high level
stress is damaging to the physical and psychological well-being of the person,
extremely low levels of stress are equally undesirable for they cause boredom,
and result in lack of stimulation, innovation and challenges. Thus moderate level
of stress is necessary for higher level of performance.

8.5.1 General Adaptation Syndrome

The general adaptation syndrome refers to a general development of responses
to stressful events in the form of physiological, psychological and behavioural
responses believed to follow a fairly consistent pattern and consists of three
stages. The first stage is known as ‘alarm’ stage and it occurs at the first sign of
stress. It results in physiological changes in the body as a warning and preparation
against stress. During this initial stage, muscles become tense, blood pressure
rises, pupils dilate and there is increase in hormone flow such as adrenaline
from endocrine glands. The second stage in bodily responses is that of
resistance. In this stage, the body’s energies tend to resist the stress so that the
physiological and psychological equilibrium can be maintained. If this resistance
is successful then the stress will disappear. However if the stress is of a high
degree and continues long enough, then the body’s capacity for adaptation
becomes exhausted. In this third stage of exhaustion, the person is unable to
cope with the stress and the individual experiences physical and mental pressures
that result in such illness as continuous headaches, ulcers and high blood
pressure. It is this last stage that presents the greatest threat to the individual’s
well-being.
8.5.2 Stress Responses

As mentioned briefly above in the general adaptation syndrome, the process of
stress elicits three types of responses. These are physiological, psychological
and behavioural responses.
1. Physiological responses
As soon as stress appears, the brain reacts and immediate biochemical
changes take place in heart beat and heightening of practically all the senses.
The long terms physiological effects are more disturbing. Serious health problems
occur as body confronts stress over a long period of time. The stress could lead
to breakdowns in the body’s immune systems and may result in serious health
problems such as high blood pressure, ulcers and heart attack. In general,
according to Baron, ‘taking all evidence into account though, it seems reasonable
to conclude that high level of stress can result in physical changes that threaten
our health and well-being’.
2. Psychological responses
There are some people who can handle stress better than others. People who
tend to be highly affected by stress tend to be depressed and lack self-confidence
and self-esteem. They tend to believe that they are helpless and elicit sympathy

from others. They have greater fear of the unknown and an increased sense of
futility, tension and neurotic tendencies. They become irritated quickly, are
impatient and tend to blame everybody else for their own problems. They are
more worried about their job security and their job commitment is very low.
3. Behavioural responses
According to Cohen, people under constant stress behave differently as
compared to people who are emotionally well-balanced. Stress is usually
associated with increased use of alcohol, smoking, eating and sometimes drugs.
People under stress may gain weight and thus behave differently. Their behaviour
becomes highly defensive or highly aggressive towards others and inter-personal
relationships are highly affected. Stress induces irritation and lack of patience
and these elements are exhibited in behavioural patterns. The person may
become an introvert, may withdraw from social situations and may avoid
communication with others resulting in social isolation.

(a) All responses require utilization of ______.
(b) The _____ ______ ______ refers to a general development of
responses to stressful events in the form of physiological,
psychological and behavioural responses.
(a) As soon as stress appears, the heart reacts and immediate
biochemical changes take place in the heart.
(b) People under stress may lose weight and thus behave indifferently.
8.6 Potential Sources of Stress
There are two major sources of stress. These are organizational sources and
personal sources. Both these categories are considered in detail as follows:
8.6.1 Organizational Sources

Almost every aspect of work can be a stressor for someone. Even though there
are many factors in the work environment that have some influence on the extent

of stress that people experience at the job, the following factors have been shown
to be particularly strong in inducing stress.
Stressors intrinsic to the job: The nature of the job itself can determine the
type and degree of stress that can be induced. Some jobs lead to more stress-
related responses than others. For example, such jobs as that of a police officer,
or air traffic controller are often considered to be low-stress jobs.
In general high stress occupations are those in which the employees have
little control over their operations, work under time constraints and have major
responsibilities for human or financial resources. Persons working under
threatening working conditions such as temperature extremes, pollution,
uncomfortable lighting and ventilation and loud noise are also vulnerable to high
stress.
According to one study, some of the high-stress jobs are: foreman,
manager, inspector, waitress or waiter and clinical lab technician. On the contrary,
some of the low stress jobs are: college professor, personnel worker, craft
worker, farm labourer and so on.
Exhibit 8.2
Stress at Work
Danny, a welfare officer in the social services department of the local
authority, has recently complained to his line manager that he is overworked.
He is doing long hours (sometimes a 50-hour week) and dealing with some
difficult cases. He also claims that he is being bullied by a senior colleague,
who is not actually employed by the authority but is one of its’ agency staff.
The manager, Susan, while sympathising with his position, is more
concerned with keeping up to date with the referrals flooding into the
department. ‘We all have to work under pressure,’ she tells Danny, ‘it’s part
of the job. ‘If I had more funding I could hire more staff, but there’s no chance
of that. As it is, you have to like it or lump it, I’m afraid.’
Susan does agree to have a word with the agency, but tells Danny that
there is not a lot she can do about the bullying. ‘This guy’s not one of ours,’
she says, ‘so I can’t really do anything to bring him into line. You’ll just have
to try and keep away from him.’
Next day Danny is not in work. He calls in to say he has been signed off with
stress.
Source: http://www.oneclickhr.com/hrguide/article.asp?article

Studies conducted by Karasek and his colleagues at Columbia University

showed a higher risk of coronary disease as a consequence of stress in some
jobs and less in others. They identified two job factors that affect the level of
such risk. These factors are the ‘level of psychological demand’ and the ‘level of
decision control’ over work. People with high psychological demands and low
decision control are constantly under pressure, for they must meet the demands
imposed upon them without having any say in it. For example, a waitress in a
restaurant must wait on the customer as well as depend upon the cook. She is
subjected to demands both by the customer as well as the cook with no control
over it and thus is subjected to high pressure and risk. According to this study,
some of the jobs are categorized as follows:
(a) Low psychological demand/low decision control: Some of the jobs in
this category are: janitor, night watchman, truck driver, billing clerk and so
on.
(b) Low psychological demand/high decision control: The jobs in this
category are: auto repair man, sales clerk, peddler, scientist and so on.
(c) High psychological demand/high decision control: This category
contains jobs such as: sales manager, bank officer, physician, school
teacher and so on.
(d) High psychological demand/low decision control: These jobs carry
maximum strain and are those of: waitress, telephone operator, cook,
assembly line worker and so on.
Role ambiguity: A role is a set of activities associated with a certain position in
the organization or in the society. According to Kahn, if these work activities are
ill-defined, then the person who is carrying out these activities will not behave as
others expect him to, because his role is not clearly defined. Thus, when there
is a lot of uncertainty regarding job definitions or job expectations, then people
experience role ambiguity.
Role ambiguity is particularly strong among managerial jobs where
responsibilities are more general in nature and role definitions and task
specifications are not clear. This role ambiguity is especially prevalent among
companies that have merged or acquired other companies while keeping the
employees. Thus employees become uncertain of what exactly they are
supposed to do and exactly whom they should report to. This role ambiguity
causes stress. French and Caplan, summarized their study findings as follows:
To summarize, role ambiguity, which appears to be widespread: (1)
produces psychological strain and dissatisfaction, (2) leads to under-utilization

of human resources, and (3) leads to feeling of futility on how to cope with the
organizational environment.
Role conflict: Role conflict occurs when two or more persons have different
and sometimes opposing expectation of a given individual. Thus there are two
or more sets of pressures on the individual so that it is not possible to satisfy all
of them. In other words, role conflict occurs when contradictory demands are
simultaneously placed upon an employee. For example, an architect may be
expected to produce creative designs, while on the other hand, there may be
time constraints put upon him, both roles being in conflict with each other.
Similarly, a contractor may ask a carpenter to do something that may be different
than what the city building code prescribe, thus causing a role conflict.
Another type of role conflict is the inter-role conflict where an individual
plays more than one role simultaneously in his life and the demands of these
roles conflict with each other. For example, a father may know that his son has
committed a crime but does not inform the police or a police officer may be
invited to his brother’s wedding party where the guests use drugs that is against
the law.
Studies conducted by Robert Kahn and his colleagues at the University of
Michigan regarding role conflict, lead to the following conclusion:
‘Contradictory role expectations give rise to opposing role pressures (role
conflict), which generally have the following effects on the emotional
experience of the focal person: intensified internal conflicts, increased
tension associated with various aspects of the job, reduced satisfaction
with the job and its various components, and decreased confidence in
superiors and in the organization as a whole. The strain experienced by
those in conflict situations leads to various coping responses such as
social and psychological withdrawal (reduction in communication and
attributed influence) among them.
Finally the presence of conflict in one’s role tends to undermine his
relations with his role senders to produce weaker bonds of trust, respect
and attraction. It is quite clear that role conflicts are costly for the person
in emotional and interpersonal terms. They may be costly to the
organization, which depends on effective coordination and collaboration
within and among its parts.’
Role overload: Role overload occurs when the work requirements are so
excessive that employees feel that they do not have adequate time or ability to
meet such requirements. Working under time pressure is especially stressful
whether it is meeting a deadline for a report or studying near the exam period.
The physiological symptoms of stress increase significantly prior to deadline

and decrease sharply after the deadline has passed. The role overload can
occur either when there is too much work to complete in a given time or when it
is too difficult to accomplish because of lack of skills and ability.
Role underload: Role underload occurs when a person’s ability is underutilized
so that either there is too little work or there is too little variety in the work. If a
salesman with high inter-personal skills is given a job in a department store
where there are not too many customers, then he will feel that his ability is not
being properly utilized. Similarly, assembly line workers whose jobs are routine
and highly monotonous also experience role underload.
Role underload leads to excessive absenteeism and such workers show
very little interest in the organizational activities. It results in low self-esteem and
low work satisfaction. This creates stress with increased frequency of nervous
complaints and other health problems.
Stress as reflected in role overload and underload can be reflected
diagrammatically as follows:
Responsibility for people: Any type of responsibility can be a burden upon an

individual. For example, organizational responsibility for such factors as budgets,
equipment and projects can cause stress. However it is the responsibility for
people working for you that is a cause for continuous concern. As a manager,
your effectiveness is a function of quality performance of your subordinates.
Hence, you will be held responsible for anything that goes wrong, which creates
stress and this stress is intensified when the manager has a limited degree of
control over the subordinates. As noted by French and Caplan.
‘If there is any truth to the adage that ‘man’s greatest enemy is himself’, it
can be found in these data—it is the responsibility which organizational members

have for other organizational members, rather than the responsibility for
impersonal aspects of the organization, which constitutes the more significant
organizational stress.’
Lack of participation: When the employees are invited to participate in decision-
making process in their areas of concern then the employees perceive that they
have more control over their own environment thus reducing the extent of role
conflict and role ambiguity that cause stress. For example, in a work situation
where high role conflict is created because of inconsistent demands from the
superiors, the stress created by such high role conflict is reduced if the
subordinates and superiors can participate and work together in reducing such
inconsistencies.
Participation in decision making also helps in reducing role ambiguity and
role overload resulting in reduced stress.
8.6.2 Individual Differences

Events in personal life cannot be isolated from events in work life. A person with
an unhappy family life seldom expresses a positive attitude at work. Much of the
stress brought about by non-work situations may be due to divorce, marriage,
death of a loved one, financial difficulties and many other socio-cultural
relationships. These difficulties are stress producers especially if they are
unexpected. For example, we know that children leave home when they grow
up or when they go to college so that this is expected and this separation does
not necessarily cause stress. On the other side, problems at work can manifest
in stress in personal life. Thus job stress and life stress are often related in that
high stress in one area can induce or increase stress in the other.
Some of the specific non-work stressors are :
• Job concern: Job and career variables can become stressors when
they become sources of concern, anxiety or frustration to the
individual. One of the major concerns is the lack of job security. Except
for jobs with tenure or strong union support, very few employees
have job security. This insecurity increases during times of recessions
or impending recessions. The prospect of losing a job, especially
when you have a family and your social roots are well-established, is
very stressful.
Another reason for job related stress may be the perception of
the employee regarding his status on the job. Persons who are not
promoted when due or persons who feel that their jobs are beneath

their qualifications may feel that they are not using their potential to
the best and may become anxious about it. This is especially true for
middle aged men and women when time itself becomes a period of
soul searching and self-doubt. Career progress then becomes a focal
point.
• Relocation: When an employee has to relocate geographically
because of a transfer or promotion, it disrupts the routine of his daily
life, causing concern and stress. The fear of working in a new location,
unpredictability about new work environment, and the prospect of
creating new relationships always cause some anxiety. Relocation
also creates problems for the spouses and children of employees.
They are also uprooted from schools, friends and jobs. It is especially
difficult for them because generally the family moves with the
husband’s job and they do not have much say in it. The stress related
to this geographic mobility is greater when the wife also has a job
and she has to leave the job to go with the family. Uncertainty about
getting a new job at the new location creates some degree of stress.
Thus the more changes that occur in a person’s social relationships
and family life because of relocation, the greater the person’s stress
will be.
• Changes in life structure: The structure of life and process of living
has many facets. Some of these facets are socio-cultural in nature
such as family, religion, race, education, economic situation as well
as a person’s interaction with the socio-cultural world in the role of a
husband, a parent, a friend or a citizen. In addition, the life structure
may change as we grow older from one period to another such as
childhood to adolescence and so on. As we grow older, our
responsibility to ourselves as well as others changes and increases.
The higher the responsibility, the greater the stress.
The extent of stress is also determined by the ability to cope with stress or
the kind of sources a person seeks to deal with stress. For example, people
who have strong faith in God and His Will find it easier to deal with such stressful
situations as the loss of a loved one. Similarly, family and friends are source of
great comfort at such times of crisis.
The pace of life would also determine whether a person’s life is stable or
turbulent. As the responsibilities increase, so does the capacity to execute them.
Professions such as those of doctors or businessmen are more stressful and
hectic than those of say, college teaching.

The degree of stress created by certain events in life can be assessed by

‘Social Readjustment Rating Scale’ developed by Thomas Holmes and Richard
Rake. In order to construct the stress impact scale, they asked people to rate
as to how long it would take to adjust to certain stressful events and how severe
the adjustment to these events would be. From the responses, they developed
a ranking and a weighting for each of these stress producing events. For
example, the death of a spouse was considered to be the most stress producing
event. Table 8.1 shows the ranking of some of these events.
Table 8.1 Event Ranking
Life Event Weight

Death of a spouse 100
Divorce 73
Jail term 63
Death of a close family member 63
Marriage 50
Fired from work 47
Pregnancy 40
Sex difficulties 39
Child leaving home 29
Change in residence 20
Christmas 12
If an individual accumulates a large number of stressor points in a relatively
short period of time, it is more likely that stress would be obvious. The higher the
number of points, the more likely that stress will result in serious illness.

(a) There are ___ major sources of stress.
(b) Role ______ is particularly strong among managerial jobs where
responsibilities are more general in nature and role definitions and
task specifications are not clear.


(a) Role conflict occurs when two or more persons have the same and
never opposing expectation of a given individual.
(b) Role underload occurs when a person’s ability is underutilized so
that either there is too little work or there is too little variety in the
work.
8.7 Managing Stress
We know that some stress is necessary for optimum efficiency. We also have
a general idea as to the level of stress that is destructive to job performance.
Accordingly, it is necessary for individuals, as well as management to take steps
to reduce stress to acceptable levels.
8.7.1 Individual Strategies

It is necessary for physical and psychological well-being of the person to reduce
or eliminate the negative effects of stress. It is possible to manage stress, at
least in the sense that a person can either avoid stressful conditions, change
them or learn to cope with them. There are a number of ways by which stress
can be managed so that the person has control over his life. Some of these
strategies deal with the individual himself and focus on improving his physical
and mental strength to deal with stress from all sources and some strategies
deal specifically with job related stress.
Some of the stress reducing strategies that strengthen the individual’s
well-being are:
• Re-adjust life goals: Because of the severe competition to ‘get ahead’,
most individuals set very high standards and goals for themselves. They
are always trying to do too much in too little time. They have tremendous
fear of failing and they are running to nowhere. These high expectations
and limited resources to reach such expectations result in stress.
Accordingly, people must readjust their goals and make sure they have
the ability and proper resources to reach such goals. Perhaps the goals
should be established after resources have been analysed.
• Social support: There is a saying that, ‘a friend in need is a friend indeed’.
Good friends become highly supportive during the times of stress and
crisis. Close and reliable friends may give a sympathetic hearing to your
problems, a more objective assessment of the situation and support your

sagging self-confidence or self-esteem. Many people turn to God for

support during times of difficulties, believing God to be their ‘best friend’.
The idea of confession to a priest in the Catholic religion is primarily meant
to receive moral support for stress created by some individual actions.
Thus God, priests, family, friends can all be a source of great comfort
during times of stress.
• Plan your life in advance: While the attitude of ‘whatever will be, will be’
is a way to accept the unexpected difficulties in life, it is better to project
events in life and plan to confront them when they occur. Many times,
people create situations that induce stress because they either did not
plan or they did a bad job of planning. For example, students who plan the
pace of their studies during the semester seldom find exams excessively
stressful. Accordingly, if we plan the proper utilization of our resources of
time and money, the chances are that we will have less stress.
• Physiological fitness: There is evidence to suggest that individuals who
exercise and so strengthen their endurance and cardiovascular system,
are much less likely to suffer from certain types of stress-related illnesses.
As the correlation between physical fitness and stress resistance has
become clear, many organizations have added facilities for physical
exercise in their premises. With proper exercise, diet control and non-
smoking habits, blood pressure and cholesterol levels become low and
the body becomes more resistant to pressures. People are more likely to
get physically sick or emotionally depressed if they are overweight or poorly
nourished.
• Yoga: During the last twenty-five years, there has been a growing interest
in yoga as a stress reduction strategy. The word ‘yoga’ means union and
according to Amarjit Sethi, it ‘implies union with the ultimate where the
process of desiring has come to an end and where stress is non-existent’.
To a common man, yoga is a structured set of exercises and body
movements with deep breathing and mind concentration, so that it is a
way of getting away from the stressors. To a serious student of yoga, it is
a methodology to integrate body and mind forces to bring them into a
state of harmony with the ultimate goal of being in unison with the Infinite.
At the lower levels of physical and mental fitness, yoga consists of certain
postural habits (known as asanas) and these postures are non-dynamic,
passive and stable, resulting in increased flexibility of skeletal structure.
This in turn stimulates the nervous system. Accordingly, with proper
‘asanas’ and controlled breathing, the neuromuscular coordination is

strengthened, affecting glandular activity that is responsible for physical

as well as mental health. Thus the development of a sound mind in a
sound body improves the stress coping capabilities.
• Meditation: Meditation involves mentally concentrating away from stress
producing areas, sitting in a comfortable position, closing the eyes and
clearing the mind from all disturbing thoughts. Any form of concentration
that redirects our thought processes away from daily concerns can be
considered meditation. Primarily, it involves silently repeating a single
syllable or ‘mantra’ over and over gain. This concentration on ‘mantra’
shuts out other distractions and results in physical and mental relaxation
at its peak. The place of meditation should be such that the mediator is
not disturbed by any outside force such as telephone, children or visitors.
This technique was popularized by Maharishi Mahesh Yogi, an Indian
mystic, and the method is known as ‘transcendental meditation’ or TM.
Another form of meditation that has grown popular is Benson’s method or
‘relaxation response.’ This technique is similar to TM and is designed to elicit
‘relaxation response’ that is considered to be opposite to ‘stress response’. The
basic idea is to block extraneous and distracting thoughts from one’s mind. It is
a form of breathing meditation, where the mediator consciously thinks of a word
or a symbol on every out breath. The idea is to dwell upon a particular word or
sound or to gaze at a symbol or even concentrate on a particular feeling. Relaxation
response should become an integral part of behaviour so that life stresses are
effectively countered. Benson recommends ‘relaxation response’ breaks instead
of coffee breaks to rejuvenate workers.
Biofeedback: Biofeedback is a methodology designed to alter undesirable
physiological responses through psychological strategies. Sophisticated
electronic instruments are used to measure small undesirable changes caused
by stress. Then a state of relaxation is induced in order to bring back such bodily
functions to a normal non-stress state. For example, whenever blood pressure
is registered as too high, individuals then try to relax to bring the blood pressure
down. This tendency to relax is voluntary on the part of the individual. The potential
benefit of biofeedback is the human ability to bring some of the bodily functions
under voluntary control. These functions include heart rates, brain waves, muscle
tension, blood pressure and stomach acidity. Changes in these functions are
most often caused by stress. By measuring these changes precisely through
the system of biofeedback, an individual can respond to these changes effectively.
Thus stress management can be voluntarily practiced by individuals.

8.7.2 Organizational Strategies for Coping with Stress

While it is necessary for individuals to design their own strategies to reduce
stress to an acceptable level, it is equally important for organizations to develop
programs that will help employees reduce their stress. This will help in controlling
employee turnover, absenteeism, and as a result, productivity will improve. Some
of the steps that organizations can take are:
Exhibit 8.3
Pepsi’s Initiatives to Ease Work Life Stress

PepsiCo India Holdings Pvt. Ltd recently introduced an employee assistance
programme (EAP) dubbed Pepcare. It has hired Hong Kong-based Human
Dynamic Asia Pacific Ltd (HDAP) to counsel employees and their immediate
family members on issues such as stress, handling dissension and
challenges in personal and professional relationships. The company says
it went ahead and engaged professionals after it found, in internal employee
satisfaction surveys, that managing multiple priorities was a common
challenge among staff. Pepsico’s other work-life initiatives include a “no
meeting” policy on Mondays and Fridays for outstation employees, so that
they don’t have to spend time travelling during weekends. Also, the sales
and marketing teams have to leave early on Wednesdays—just to provide
a mid-week break. To ensure compliance, the company decided on a ` 500
fine for violations.
Source: http://www.humandynamic.com
• Health maintenance: Many organizations provide facilities at their
premises for physical fitness such as gyms, swimming pools, as well as
psychological counselling. They hold seminars, workshops and lectures
to help employees in understanding the nature and sources of stress, its
ramifications and possible ways to reduce its negative effects. Workshops
are designed in a manner that they are therapeutic in nature to help
individuals who are already experiencing stress problems. Most
programmes involve one or more of the following techniques: biofeedback,
meditation, muscular relaxation exercises, and skill training areas such
as time management, interpersonal skills, training to think positively about
life and its problems and looking at sources of stress realistically and
analytically.

• Selection and placement: The basic hiring process should be based

upon matching of skills, personality and work requirements. Being placed
in a job that is not compatible with your ability and temperament, can be
highly frustrating and stress producing. The applicants should be hired
not only on the basis of educational background and past relative
experience but the criteria for selection could also include the applicant’s
ability to handle role ambiguity and role conflict when present. Accordingly,
during the process of hiring, some personality tests can be designed to
evaluate the candidate’s stamina for stress.
• Job enrichment: Redesigning the job should be in such a manner as to
use the maximum potential of the employee with emphasis on employee
involvement in such redesigning. This will help reduce stress caused by
monotony, routine work, role ambiguity, work overload or underload. Job
enrichment enhances motivation and leads to more challenging assignment,
improved task significance, more responsibility, more meaningful work and
more control of the employee over his own work environment. It also
improves feedback to the employee regarding his performance and this will
reduce uncertainty. Since stress occurs when work is important and there
is some uncertainty surrounding it, a redesigned job will help overcome this
stress and enhance ‘quality of work life’.
• Effective and equitable performance appraisal and reward systems:
It is necessary that performance be appraised in an objective and non-
biased manner and the rewards be clearly and proportionately related to
performance. The employee must know what is expected of him and for
what exactly he is responsible and accountable. This will reduce role
conflict. Employees’ contribution to the organization must be well
recognized, appreciated and rewarded. This will instill enthusiasm and a
sense of dedication and belonging, which in itself is a stress fighting
phenomenon. This also strengthens the bonds of interpersonal
relationships between the employees and the superiors and helps in clear
and open communication.
• Participation in decision making: If the employees are invited to
participate in making decisions involving their own work setting, within the
organizational guideliness, this would make the employees feel that they
are their own boss, a factor that is associated with less negative reactions
to stress. Participation increases job involvement and reduces ambiguity
and conflict—the two stress producing agents. This would also result in

closer cooperation among superiors and subordinates and a better work

environment, especially when the superiors support their subordinates.
• Building teamwork: The management must create a work environment
in which the members of the work group consider themselves as members
of the same family. There should be no provision for interpersonal conflict
within the group nor for conflict between an individual and the group. Such
conflicts are causes of stress and should be prevented from building or
eliminated if they develop. Accordingly, such groups should be developed
that are more productive and mutually supportive. Members of the group
would seek each other for social support, which is a necessary ingredient
for diluting stress.

(a) It is necessary for physical and _______ well-being of the person to
reduce or eliminate the negative effects of stress.
(b) To a common man, ____ is a structured set of exercises and body
movements with deep breathing and mind concentration, so that it is
a way of getting away from the stressors.
(a) Stress involves mentally concentrating away from stress producing
areas, sitting in a comfortable position, closing the eyes and clearing
the mind from all disturbing thoughts.
(b) Biofeedback is a methodology designed to alter undesirable
physiological responses through psychological strategies.
8.8 Counselling of Employees
In this world full of complexities that are continuously on the rise stress has
become a part of our lives, typically at our places or work. Employee counselling
has come across as the most recent HR tool for attracting and retaining the
most excellent employees and also for enhancing the performance of the
workforce.
In the present scenario of the corporate world, which is fast-track based,
stress is a part of almost every organization and there are no employees who

are without stress. Stress, depression and excessive fretfulness can overcome
employees. The causes for this are different categories of problems related to
the working environment. These problems range from management of deadlines,
accomplishment of goals, dearth of time for fulfilling personal and family unit
commitments, bereavement or disturbance due to domestic issues, etc.
Companies have become aware of the significance of relieving their employees
off stress and inculcating motivation and capability in them. Hence, a large number
of organizations have incorporated services to counsel their workforce and have
imbibed such services as integral part of the organization culture.
One can define the process of counselling as that which provides
assistance and support to the members of their staff and makes them confident
to face and conquer tough times that they come across in life. At times people
come across several conditions in life or during their line of work, which begin to
impact their work or personal life. As a result of this, they experience a very high
degree of stress. Counselling plays a vital role when it guides, consoles, advises,
shares and helps in resolving their issues as and when it is required to do so.
The counselling effort needs to be sincere and serious, preferably initiated
by trained counselors. Counselling and other HRD interventions were seen to
be the privilege of mainly executives/managers for a long time, and workers
were considered to be either unwilling or not ready to absorb such inputs.
Counselling is an important mechanism to provide timely guidance to workers
and help them learn from their own mistakes. Counselling may be initiated towards
a wide range of areas in personal development and behavioural skills like self
awareness, achievement motivation, interpersonal relations, teamwork, creativity,
problem solving, and discovering one’s potential. Counselling services may be
extended to the personal and family life of workers. Counselling to help a worker
to plan the careers of his own children can have high motivational value. The
common theme running across all counselling intervention is to focus on the
human being rather than the job and an attempt to create a sense of meaning
and satisfaction in the worker, thereby bringing out his best potential by helping
him develop a sense of empowerment and creating positive relationships with
people at the workplace.
Advantages of counselling
• It helps the person in getting to know and be of help to himself
• It enables him in comprehending circumstances and regarding them from
a different viewpoint and optimistic attitude
• It is helpful in making decisions of better quality

• It provides additional ways to resolve issues

• It is very supportive in handling situations and work pressure
Fundamental prerequisites of employee counselling
• It is important for both, the organization and the counselor, to handle the
process of counselling employees with much care. Counselling can prove
to be a responsive sequence of happenings for both, the employee and
the organization; hence, it is important that the counselor should either be
a professional or a qualified and matured individual.
• The counselor should exhibit flexibility in his way of functioning and play
the role of an enduring listener. He should be sufficiently genial to gain the
trust of every member of the staff. This will enable the employees to share
their ideas, concerns and issues with him without any hesitation.
• Dynamic and effectual way of listening is one of the most significant
characteristics of the employee counselling.
• Time should not be a restriction in the procedure of counselling.
• The counselor should have the ability of identifying the issue and should
be able to provide tangible suggestion.
• The counselor should have the ability to boost the self-confidence and
willpower of the employee, generate a constructive attitude and enable
him in taking decisions to tackle the issue.
8.8.1 Types of Counselling

Counselling session depends upon the counselor to give it a direction. The type
of direction the counselor gives to the session differentiates it into three types of
counselling:
1. Directive counselling: In this type of counselling the counselor gives
the session its full direction. The counselor leads the session completely
and this type of counselling fulfils the criteria of the counselor giving advice
and reassurance. The counselor listens to the counseled and decides on
behalf of the counseled as to what should be done. It also helps in releasing
the emotional tension. But this form of counselling does not equip the
counseled person to handle similar situations in future as no self - growth
has taken place. The self - growth can be achieved when a person tries to
look for the answers himself or herself with some help from someone
else. But, as stated earlier, in this case a person will always have to look
towards someone else to advice and sort out the problems in future.

All said and done, one should remember that in many cases advice
acts as reassurance. In adverse conditions advice and reassurances act
as morale boosters and in the long run, help on taking a course of action
to resolve the difficult situation.
2. Non-directive counselling: This type of counselling is counselee
oriented. This means that the counselor focuses on the counselee and
his or her problems without any sort of interference. The counselor does
not act as an advisor; rather the he only listens to the counselee,
understands the problem but does not offers any solutions. The counselee
here has to find the solution on his or her own.
This type of counselling helps in employee orientation as the
employees are given a chance to find their own solution. Thus they are
prepared to handle at least similar kinds of problems in future on their
own.
3. Co-operative/Participative counselling: This is a compromise between
the above two extreme types of counselling. It is a mutual contribution for
diagnosing a problem, analysing the problem and then looking for a
solution. It is a mutual counselor - counselee relationship where both
participate to find a solution. Here an exchange of ideas takes place
between the two. Both the participants provide a bit of knowledge,
experience and insight and thus it is a case of balanced compromise.
Activity 2
Since every individual responds to stress in a unique way, no stress test is
able to provide a thorough diagnosis of the level of stress of an individual.
Comment.

(a) One can define the process of ______ as that which provides
assistance and support to the members of their staff and makes
them confident to face and conquer tough times that they come
across in life.

(b) The counselor does not act as an advisor; rather the ______ only
listens to the counselee, understands the problem but does not offers
any solutions.
(a) Stress, depression and excessive fretfulness can overcome
employees.
(b) Counselling is an important mechanism to provide timely guidance
to workers and help them learn from their own mistakes.
8.9 Summary

• Wherever there is interaction, there is conflict. Conflict can be defined in
many ways and can be considered as an expression of hostility, negative
attitudes, antagonism, aggression, rivalry and misunderstanding. It is also
associated with situations that involve contradictory or irreconcilable
interests between two opposing groups.
• Creative and innovative people are always looking for grounds to challenge
the status quo.
• There are five basic levels of conflicts, conflict within an individual,
interpersonal conflict, conflict between the individual and the group, inter-
group conflict and inter-organizational conflict.
• The causes of conflict may be communicational, behavioural or structural
aspects.
• Except in very few situations where the conflict can lead to competition
and creativity, it can be encouraged. In all other cases where conflict is
destructive in nature, it should be resolved as soon as it as developed and
all efforts should be made to prevent it from developing.
• Stress is a state of mind that reflects certain biochemical reactions in the
human body and is projected by a sense of anxiety, tension and depression
and is caused by such demands by the environmental forces or internal
forces that cannot be met by the resources available to the person.
• There are two major sources of stress: organizational sources and
personal sources.

• Stress management is the adjustment of stress and in particular extreme

stress, usually with the aim to improve the routine operations.
• Employee counselling is defined as the process of extending help and
support to the employees for successfully conquering and passing through
the tough situations in life.
8.10 Glossary
• Stress management: The process of identification of factors related to

stress and learning coping skills to deal with them
• Conflict: An dispute between two or more beliefs, ideas, or preferences
• Philosophy: A particular set or system of beliefs resulting from the search
for knowledge about life and the universe
• Interpersonal conflict: A dispute or clash of views between two or more
people over a certain concept, belief, or action
• Inter-group conflict: Conflict that arises between groups or teams in an
organization
• Inter-organizational conflict: Conflict that occurs between two or more
organizations
• Work-flow: The succession of manufacturing, managerial, or other
processes through which a piece of work passes from commencement
to conclusion
• Smoothing: Covering up the conflict by appealing for the need for unity,
rather than addressing the issue of conflict itself
• Compromising: Balancing the demands of the conflicting parties and
bargaining in a ‘give and take’ position to reach a solution
• Interdependency: A state of being dependent on each other
1. How has the view of conflict changed the 1930s and 1940s?
2. What are the various levels and sources of conflicts?
3. What are the behavioural and structural aspects of conflict?

4. Discuss the process of resolving and managing conflict.

5. How is stress associated with the general adaptation syndrome? Classify
the different responses to stress.
6. Write a detailed note on the potential sources of stress.
7. Explain the various strategies for coping with and managing stress.
8. What is the significance of counselling of employees in organizations.
8.12 Answers
1. (a) Conflict; (b) Prerequisite

3. (a) Negative; (b) Productivity
5. (a) Goals; (b) Passive
6. (a) True ; (b) False
7. (a) Energy; (b) General adaptation syndrome
9. (a) Two; (b) Ambiguity
11. (a) Psychological; (b) Yoga
13. (a) Counselling; (b) Counselor




5. Sharma, R.A. Organizational Theory and Behaviour. 2nd edition. New
Delhi: Tata McGraw-Hill.

Unit 9 Group Dynamics and Leadership
Structure
9.1 Introduction
Objectives
9.2 Group Dynamics
9.3 Types and Nature of Groups
9.4 Teams in a Modern Workplace
9.5 Leadership: Nature, Approach and Effectiveness
9.6 Delegation
9.7 Summary
9.8 Glossary
9.10 Answers
9.1 Introduction
In the previous unit, you learnt about the various aspects of conflict and stress in
organizations. This unit will introduce you to the concepts of group dynamics
and leadership. Good internal dynamics are not caused by chance. Their
emergence occurs due to a consciousness pertaining to the functioning of
groups. The different types of groups discussed in this unit are formal groups
and informal groups. The functions that are essential for the operation of a group
in an effective manner can be classified into task functions and maintenance
functions. Task functions are those functions that are essential in helping the
group in achieving its targets. Maintenance functions are those functions that
are required for building and maintaining group unity or sense of a cooperative
spirit. The aptitude to carry out these functions is not inherited, but it is learned.
The vital skill to be taken up is the capacity to recognize and fill up functions that
have not been taken. Interpersonal stress may get reduced as members of a
team consider most of the issues as problems of the team and not those of
individuals.
A team is a relatively longer lasting work group and its members must
synchronize their actions to reach the common goals. The leader of a team
should have excellent leadership skills. Leadership focuses on the behaviour of
managers or leaders towards their subordinates. This factor rates the
effectiveness of a leader. An important characteristic of leadership is delegation.
Unless a leader delegates tasks to his subordinates, his team will not have the
required level of efficiency and motivation.
Objectives
• Define group dynamics
• Categorize the types and nature of groups
• Describe the arrangement of teams in a modern workplace
• Explain the nature, approach and effectiveness of leadership
• Evaluate the importance of delegation
9.2 Group Dynamics
Why do individuals form groups? What are the reasons for forming or joining a
group and what are the benefits of a group to such individuals who become a
part of it? There are many factors that influence the formation of groups. Most
important of them is the individual’s need for satisfaction. This means that the
members expect affiliation with the group to satisfy a need. This need is primarily
a social one for love, affection and friendship, which is the third-level need in
Maslow’s model of hierarchical needs. But the need could also be economic in
nature because of economic group incentives that are generally and financially
more generous than individual incentives. Also being a member of a union is
economically advantageous because unions can fight for higher pay and fringe
benefits more effectively.
Group Power
One day in May 1986, the distinguished British journalist Henry Porter
revealed that he had deliberately planted five grammatical errors in his weekly
Sunday Times column and would send a bottle of champagne to anyone
who identified each one correctly.
The letters poured in and, the following week, Porter announced that readers
had not found any of his five mistakes. They had, however, located 23 (yes,
23) errors of which he had been unaware!
The most basic theory explaining group affiliation is the geographic
proximity. Individuals working in the same area, for example, are more likely to
form a group than those who are physically not located together. Similarly,

students sitting near each other in a classroom are more likely to form into a
group than those sitting at opposite ends of the classroom. According of George
Homans, there are three elements that form the foundations of groups. These
are activities, interactions and sentiments. These three elements are interrelated.
An improvement in one element will trigger an improvement in others. For
example, the more activities persons share, the higher is their improvement in
the first element. This will cause more interaction will take place and stronger
will be their sentiments.
While there are many reasons why individuals would either form or join
a group, some reasons standout. A sense of belonging and interpersonal
attraction may be so strong that some people are willing to pay a high price for
joining an exclusive country club, golf club or flying club. Some of the more
important reasons are mentioned in this section.
9.2.1 Personal Characteristics

People are more likely to form groups with others who share similar beliefs,
values and attitudes. As the saying goes, ‘birds of a feather fly together’, so the
groups form around common political and cultural philosophies, ethnic and
religious affiliations and such factors as age, sex, intelligence or similar interests
and hobbies. For example, salesmen who are high need achievers may want
to interact with other high achiever salesmen. There is also a contradictory saying
that, ‘opposites attract each other’. There may be situations where some
dominant individuals may seek the company of submissive individuals especially
when this grouping leads to achievement of a common goal. For example, if a
vice-president and a low level clerk of the same company lose their jobs, they
may form a group to fight the company together.
9.2.2 Interests and Goals

Interests and goals that are common and require cooperation with others for
achievement of such goals are a powerful force behind such group formation.
Individuals with common goals tend to work together. For example, within an
organization, the salesmen form a group, so do the production people and the
accounting people. Even though the salesmen may have individual goals, their
organizational goal is common.
Some goals simply cannot be achieved by individuals alone and they
require group cooperative activity. For example, the skyscrapers cannot be built
by one person alone. It requires group efforts in all areas of building. Similarly,
there are a number of groups involved in constructing and sending a satellite

into space. If these individuals in the group with a common group and
organizational goal also have similar personal characteristics, then the group
cohesion can be strengthened and group efforts can be improved. Some groups
form because of similar intellectual and recreational goals
and pursuits. Golf clubs, chess clubs and hunting clubs are some of the groups
with recreational pursuits. Groups are often organized to accomplish some
problem solving and decision-making tasks such as designing political strategies
or designing computers.
The goals can also be social and emotional in nature. Thus the groups
are formed because of the individual’s need for safety and security, sense of
belonging and affiliation and self esteem. Safety and security needs of individuals
are satisfied though groups. Even from the early days, men used to go out
hunting for food together in groups to face outside threats from animals and
other hostile environments. The likelihood of group formation is more when the
environment becomes hostile and threatening, for example, in times of floods,
fire or other natural disasters, neighbours who may not even be speaking with
each other form effective groups to help and shelter the people affected by such
disasters. In an organizational set up, individual workers join unions because
the unions have the ability to meet their needs and interests as well as protect
them from threats of being fired.
A sense of belonging is the third level need in Maslow’s model of
hierarchical needs. It is an emotional need for friendship, love, affection and
affiliation with others. Most people have strong a need for being with others who
can understand, support and help them when they are in need and render them
moral and emotional support in times of difficulty. The concept of family and
friends fills this need.
Membership of prestigious groups is a source of enhanced self-esteem.
The members of the group feel good about themselves by virtue of the group’s
power, prestige and social standing. For example, being in United States marines
or SWAT team can be a source of pride for the members.
9.2.3 Opportunity for Interaction

When people are provided with an opportunity to interact, they may discover
that they have a lot in common, thus necessitating the formation of a group.
This interaction leads to friendships and group formation, for example, in college
dormitories, apartment complexes and sometimes in the compartment of a train
or on cruise ships where people are together and have an opportunity to form
informal groups.

In an organizational setting, management generally tries to create a physical

as well as psychological environment to induce interaction. Sometimes, the
offices are designed in such a manner that people who need to interact with
each other can do so and they are assigned work space close to each other.
Common cafeterias and coffee breaks given at the same time increase the
opportunity for interaction.
Research Center for Group Dynamics

The Research Center for Group Dynamics (RCGD) was originally
established at the Massachusetts Institute of Technology by Kurt Lewin in
1945. Lewin was interested in the scientific study of the processes that
influence individuals in group situations, and the center initially focused on
group productivity; communication; social perception; intergroup relations;
group membership; leadership and improving the functioning of groups (T-
groups). Since its establishment, the Research Center for Group Dynamics’
mission has been to advance the understanding of human behaviour in
social contexts; making clear the linkages between an individual’s
psychological life and the life of the society to which the individual belongs.
9.2.4 Influence and Power

There is a saying in India that, ‘while a single one is just a one, two single ones
make it an eleven’. We all know that there is strength in unity. Henry Fayol’s last
of the fourteen principles of effective administration is ‘Esprit de Corps, which
means the ‘power of the spirit of togetherness’. There is another saying supporting
the same sentiment, ‘united we stand, divided we fall’.
Most managers listen to a complaint of employees when the employees
approach the managers together. The same managers may not listen to individual
complaints. In the case of one college, there were many individual faculty
complaints brought to the notice of the president of the college for some of his
decisions and actions, as well as against many aspects of the physical and
conceptual academic environment of the college. But the president refused to
attend to them or show sympathy for the needs and desires of the faculty, on
individual basis. But when the faculty as group, in the form of ‘faculty organization’
approached the president with their problems and difficulties and the president
still refused to listen, he was forced to resign, because of the power of the
group.
Groups also provide opportunities for individual members to become
leaders of the group and influence other members of the group with their views

and reasoning. As a leader of a group, he may influence people outside the

group or other groups. Leaders of certain groups are often called upon to speak
to other groups thus giving them an opportunity to express their own view points
and ideologies. Theses leaders may also find that their leadership roles give
them increased public visibility and may prove to be stepping stones for
enhancement of their own careers.
9.2.5 Group Cohesiveness

Cohesiveness defines the degree of closeness that the members feel with the
group. It identifies the strength of the member’s desires to remain in the group
and the degree of commitment to the group. The extent of cohesiveness depends
upon many factors including the compatibility of individual goals with group goals.
The more the members are attracted to each other and the more the group
goals align with their individual goals, the greater the group’s cohesiveness.
Similarly, less attraction of members towards each other will lessen the strength
of cohesiveness. There may be situations where an individual may become a
member of a country club for the sake of his own prestige or career enhancement
or for making selective friends for his business interests. These reasons for
joining the group will undermine the strength of cohesiveness.
Lucy and Linus

Lucy to Linus (who is happily watching a TV show): Change the channel!
Linus: Do what?
Lucy: CHANGE THE CHANNEL!
Linus: What makes you think I should just respond like that?
Lucy: (showing her hand) You see this? These are just 5 weak little fingers.
But when they are rolled together into something called a fist they become
a weapon formidable to behold.
Linus: (after contemplating Lucy’s fist, changing the channel and then looking
at his own little fingers) Why can’t you guys get organized like that?
Factors contributing to group cohesiveness

There are many factors that foster the cohesion of the group. Some of the more
important factors are illustrated in Figure 9.1.

Figure 9.1 Factors Supporting Group Cohesion

These factors are explained in more detail as follows:
• Time together: It is quite natural that the more time people spend together,
the more they will get to know each other and the more tendencies they
will have to get closer to each other. This strengthens the degree of
cohesiveness. This is based upon the assumption that you will spend
more time with only those whom you like personally and want to continue
interacting with them. These interactions typically lead to common interests
and increased attraction. The idea of long courtships or the idea that
couples live together before marriage is primarily to ensure that there will
be a high degree of cohesiveness in the marriage if the couple gets to
know each other well by spending more time together and in close proximity
to each other.
In an organizational setting, people who work near each other are more
likely to spend more time together. For example, among clerical workers
in one organization, it was found that distance between their desks was
the single most important determinant of the rate of interaction among
them.
• Group size: Since continuous and close interaction among members is
a fundamental necessity for cohesiveness, it would be natural to assume
that large groups restrict the extent of communication and interaction with
each other, thus resulting in the reduction of degree of cohesiveness.
Another problem with large size groups is that there is a likelihood of forming
small groups within the large groups. This would result in the dilution of
the common group goal thus increasing the extent of power politics play.
This tends to decrease the overall cohesiveness.
Another interesting aspect about group cohesion depends upon whether
the group is all male, all female or mixed. Studies showed that if all members
were of the same sex then smell groups had better cohesion than large
ones. However, when the groups were made up of both males and females,

then larger groups had better cohesion. It seems that people like to join
mixed groups than single sex groups and an opportunity to interact with a
larger set of both sexes increases cohesiveness.
• Difficulty in entry: Some groups are not easy to join. The members are
very carefully selected and the selected member feels a sense of pride
and accomplishment. The more difficult it is to get into a group, the more
cohesive that group becomes. The reason for this is that in exclusive and
elite groups, members are selected on the basis of certain characteristics
and these characteristics being common to all add to the degree of liking
and attraction towards each other. More exclusive the group, more is the
closeness among members. Accordingly, individuals like to join such
exclusive groups. That is one reason, for example, why many bright
students want to study at Harvard and Princeton universities. Similarly,
exclusive yacht clubs and golf clubs have applicants on their waiting lists
for many years before they are accepted.
• Threat and competition: Whenever the common group goal is threatened,
cohesiveness increases. Also, such cohesiveness increases the
importance of the goals. When we fight for a goal then the goal gets the
highest priority. For example, when a hostile group wants to take over a
corporation, the Board of Directors of the corporation suddenly becomes
a united front against the threats and their cohesiveness reaches its peak.
Similarly, management threats frequently bring together an otherwise
disarrayed union. Thus the threatening party will have less chance of
success when faced with a unified force.
Many organizations, when faced with tough competition ask their members
to stand together and make sacrifices in benefit cuts in order to meet the
competition and the members have been known to do that. This reflects
the extent of cohesiveness among the members of the organization.
• Previous successes: When a group achieves a meaningful goal, the
cohesiveness of the group increases because the success is shared by
all the members and each one feels responsible for the achievement. For
example, when a sports team wins an important game, every one in the
team congratulates every other member of the team for this success,
especially if a group has a series of successes, it builds a united team
spirit. For this reason, successful companies find it easier to hire new
talented employees. Similarly, prestigious universities are never short of
applicants for admission. This proves the adage that everyone loves a
winner.

• Similarity of attitudes and values: One of the strongest sources of group

cohesiveness is the similarity in values, morals, beliefs and code of
conduct. We enjoy the company of others who hold similar opinions and
characteristics as ourselves. That is one reason why interfaith marriages
are discouraged. Similarity of interests is especially important when the
group’s primary goal is that of creating a friendly interpersonal climate.
This increases group cohesiveness. This factor may not be so important
if the goal is task oriented. For example, if an army unit has to win a
strategic battle, then the successful task accomplishment becomes the
cohesive factor rather than the similarity of interests because the unit
may consist of black soldiers and white soldiers who may not have much
in common.
Figure 9.2 Consequences of Cohesiveness

These positive outcomes of group cohesiveness are explained in more detail
as follows:
• More participation: Because group cohesiveness involves close
interpersonal relationship, the members consider the group as their own,
just like a family and they are motivated to participate actively in group
affairs and activities. Members also try to assist and support other
members of the group in times of need and this strengthens the bonds of
friendship. The turnover rate of members is very low and they look forward
to group meetings and group activities as it gives them an opportunity of
social interaction in addition to devising strategies for achieving individual
and group goals.
• More conformity: While all individuals who are in the group are unique in
many ways with their own norms, values, beliefs and attitudes and some
times these characteristics may be in conflict with the group norms, the

members usually make sacrifices in order to conform to group norms.

The cohesive group is generally able to put subtle pressure on the individual
member who ‘deviated’ from the group norms in order to bring him back
to the mainstream. For example, if a member is working too hard or is
playing politics to enhance his personal objectives, the group might put
social pressure on him to comply with the group norms. If these pressures
do not succeed, then the member may be dropped from the group in
order to maintain cohesiveness among other members.
• More success: Success and cohesiveness are interdependent factors.
Cohesiveness makes the goal achievement easier and goal achievement
adds to cohesiveness. In general cohesive groups are more successful
in achieving their goals. The reason for this relationship is that a high
degree of cohesiveness involves a high degree of communication,
participation and conformity to group norms. This results in success in
achieving them. Thus such coordinated efforts tend to result in successes
in achieving such goals.
• More influence: Individual members will respond favourably to the
demands of the cohesive groups in comparison to less cohesive groups.
An informally accepted and respected leader of the group can have quite
an autocratic authority and influence over the group members especially
when confronting an external threat. Thus the leader will have considerable
influence over the members in shaping their opinions and operations. For
example, during negotiations between the union and management, if the
union leader is satisfied that he has reached an equitable settlement, he
will advise the union members to accept it and even if some members
are not happy about such an agreement, they will accept it because of the
leader’s sincerity and influence.
• More communication: Communication reduces conflict. The better the
communication, the less likely is any misunderstanding among members.
Because the members of the cohesive groups share common values
and goals, they are inclined to greater communicativeness. Since
communication is the key to understanding, respect and closeness, it
tends to foster and cement positive social relations as well as deep
personal relationships.
• More personal satisfaction: Satisfaction, though a state of mind, is
primarily influenced by positive external factors. These factors include
friendliness, respect from other members and self-respect, support,
opportunity to interact, achievement, protection against threats and a feeling

of security. Members of cohesive groups report that they are more satisfied
than members of less cohesive groups. This is expected since the
members of a cohesive group will not stay as members if they were
dissatisfied.
• High productivity: It is quite easy to understand that unity has synergetic
effect. The group effort is expected to bring better results than the sum
efforts of individual members. However, the outcome of the efforts is a
function of not only group cohesiveness but also group compliance with
the organizational goals. According to Richard M. Steers, ‘specifically, when
cohesiveness is high and acceptance of organizational goals is high;
performance will probably be high. Similar results would be expected for
low cohesiveness and high goal acceptance, although the results may
not be as strong. On the other hand, performance would not be expected
to be high when cohesiveness is high and goal acceptance is low. In that
case, group effort will probably be directed away from organizational goals
and towards goals valued by the group.
Finally, when both cohesiveness and goal acceptance are low, effort will
probably become dissipated, leading to low productivity. Studies conducted by
Katz and Kahan with respect to participation by workers as a group in a Swedish
truck factory showed that cohesiveness and togetherness experienced by group
members had a significant positive impact on performance outcome. Members
of the group identified more strongly with goals and worked harder to improve
productivity.

(a) ________ functions are those functions that are required for building
and maintaining group unity or sense of a cooperative spirit.
(b) According of _____ _____, there are three elements that form the
foundations of groups.
(a) A sense of belonging and interpersonal attraction may be so strong
that some people are willing to pay a high price for joining an exclusive
country club, golf club or flying club.
(b) Individuals with common goals never tend to work together.

9.3 Types and Nature of Groups
From an organizational behavioural point of view, there are basically two types
of groups. These are formal groups and informal groups.
9.3.1 Formal Groups

A group is formal when it is purposely designed to accomplish an organizational
objective or task. It is created via a formal authority for some defined purpose. A
formal group can be a command group or a functional group that is relatively
permanent and is composed of managers and their subordinates who meet
regularly to discuss general and specific ideas to improve product or service. A
typical command group in an organization chart may be illustrated as follows.
Formal groups usually work under a single supervisor, even though the
structure of these groups may vary. For example, in one form of group such as
in production, the members of the work group depend on each other as well as
on the supervisor and in another form of group, such as sales force, the
members of the group work fairly independently and their common contact may
be the district sales manager.
Other types of formal groups include task forces and committees. The
task forces are temporary in nature and are set up for some special projects.
The committees can be permanent, such as a planning committee, a finance
committee or a budget committee and may become an integral part of the
organizational structure. A committee can also be temporary such as a special
task force that is set up for a particular purpose and is then disbanded when the
purpose is achieved. For example, the committee to reelect the President is
temporary in nature and is disbanded after the election.
9.3.2 Informal Groups

Informal groups are not specifically formed by members. They emerge naturally,
in response to the common interests of organizational members. They are formed
spontaneously, without any formal designation and with common interests such
as self-defence, work assistance and social interaction. They exist outside the
formal authority system and without any set rigid rules. Though officially
unrecognized, they exist in the shadow of the formal structure as a network of
personal and social relations that must be understood and respected by the
management.
Informal work groups are based upon socio-psychological support and
reasoning and depend upon member’s interaction, communication, personal

likes and dislikes and social contacts within as well as outside the organization.
The power of these informal groups can be seen from the fact that if one member
of the group is fired, sometimes all workers go on strike in support of that member
of the group. The bonds between members are very strong and these bonds
bring in a sense of belonging and togetherness. This togetherness can have a
powerful influence on productivity and job satisfaction, since employees motivate
each other and share each other’s burden by training those who are new and by
looking up to old timers for guidance, advice and assistance.
Informal groups generally result due to personal bonds and social interaction
among people who work together at the same place and may have similarities
as well as differences in their nature and their outlook. These groups have their
own leaders and followers, group goals, social roles and working patterns. They
have their own unwritten rules and a code of conduct that every member implicitly
accepts. Members trust and help each other, for example, in a department of a
college; the departmental secretary may wield more authority in some areas
than even the chairperson as in the case of typing exams and typing course
outlines. Thus, a professor who has a good rapport with the secretary as a
member of an informal group would have the papers typed sooner than others.
The leadership of informal groups develops from within rather than a formal
election. An individual, who is working in a group for a long time and has a good
rapport with other members, may emerge as a leader due to his technical
expertise and his seniority. For any problem within the group, either technical or
social, the members would go to this leader rather than the formally assigned
supervisor.
Some other aspects of informal groups are as follows:
• Group norms: Parallel to performance and other standards
established by the formal organizational structure, informal groups
have their own norms as rules of conduct and a standard of behaviour
that is expected of all members. These norms may be established
in consultation with the management, so that group goals do not
conflict with the organizational goals. For example, if one member
of the group is unproductive or talks ill about the organization, he
may be sanctioned by other members either by reprimand or ridicule
or simply by the ‘silent treatment’. Similarly, if one member is overly
productive in order to be in the good books of management personally,
thus making the other members look bad, he could be similarly
sanctioned in order to bring him back in line. A study conducted by
P.C. De La Porte showed that the group norms that are favourable to

the organization are: organizational pride, team work, honesty, security,

planning, customer relations and so on. The norms about profitability
and supervision were unfavourable to the organization.
• Groups roles: There is an unwritten assignment within the group
which states who does the task and under what conditions. Some
job roles are assigned by the management by matching the job
description with the person’s qualifications. Some other roles develop
within the group, for example, some members may informally be
technical advisors to others as to how to do the job better and others
may act as arbitrators in social problems or other differences that
may arise among members.
• Group goals: The goal of an informal group, whether it is profitability
that conflicts with the organizational goals or customer service which
is in accord, heavily influences productivity. It is necessary to integrate
the group goals with the organizational goals for the purpose of
improvement and success.
• Leadership: An informal leader emerges from the group either
because of his personal charisma, his social status or his technical
expertise. He is not formally elected but is accepted in the minds
and hearts of the workers. These leaders influence the behaviour of
others and remain leaders as long as they are sincere to the group
interests.
• Group cohesiveness: Cohesiveness refers to the degree and
strength of interpersonal attraction among members of the group.
High degree of cohesion is highly motivating in achieving the group
goals. Members help each other and support each other. The degree
of cohesiveness depends upon the commonness of the perceived
group goal, the size of the group and the ability of the group leader to
facilitate cohesion. Group cohesion also has synergetic effects where,
together they produce much more by the collective efforts than the
sum product of the individual efforts. (Detailed discussion of groups’
cohesiveness follows later.)
Informal groups are powerful instruments in all organizations and
sometimes they can make the difference between success and failure. When
the group members ‘want’ to do a job, it is always done better than when they
‘have’ to do it, because of instructions from the superiors. A cooperative group
makes supervision easier, thus lengthening the effective span of management.
The group is also there to make sure that the basic principles of the formal

organization are not violated, for example, if a manager misuses his authority
and promotes an unqualified person, the informal group may use its influence in
making sure that it does not happen. Informal groups also serve as additional
channels of communication to the management about conditions of work when
such information may not be available through official channels.
One problem with an informal group is that it is primarily centered towards
human elements. This can be highly unpredictable and affect the smooth
operations of the organization. Due to rules and procedures being unwritten,
they can change from situation to situation. Also, informal groups can be
considered subversive in nature if their goals conflict with the formal organizational
goals. In such situations, managers often view them with doubt and suspicion.
They tend to see informal groups as potentially harmful to a formal organization.
For that reason, some mangers seek the support of informal groups and their
leaders in order to reduce such a threat. They tend to view such informal groups
as valid, stable and structurally sound and hence show consideration and respect
for their existence and their views.

(a) A group is _____ when it is purposely designed to accomplish an
organizational objective or task.
(b) _____ groups emerge naturally, in response to the common interests
of organizational members.
(a) Formal groups usually work under a single supervisor, even though
the structure of these groups may vary.
(b) Informal groups generally result due to impersonal bonds and lack of
social interaction among people who work together at the same place.
9.4 Teams in a Modern Workplace
A team is a comparatively permanent work group and its members must

coordinate their activities to achieve the common goals. The objectives might
include advising others in an organization, producing goods or services and
carrying out a project. Since achievement of a team’s objectives requires

coordination, team members depend on one another and must interact regularly.
A work team is a single institution that generates positive synergy through
coordinated team effort. The individual’s efforts result in a level of performance
that is more than the sum of those individual inputs. Teams have become a
significant part of the way business is conducted these days. Therefore at today’s
workplace, teams have a very significant impact. Any team is therefore a group,
but only some groups have the high degree of interdependence and commitment
to success.
Teams by definition imply a high degree of coordination among their
members, along with a shared belief that winning (achieving team goals) is not
only desirable, but it is the very reason why teams exist. Any team is therefore a
group, but only some groups have the high degree of interdependence and
commitment to success that are associated with a team. Although the desire to
achieve high levels of commitment and coordination is common among
organizations using teamwork, the nature of specific teams varies considerably.
Two major dimensions along which teams differ lies in the differentiation of team
roles and integration into an organization.
(i) Differentiation: It is the extent to which team members are
specialized in comparison to others in an organization.
(ii) Integration: It is the degree to which the team must coordinate with
managers, employees, suppliers and customers outside the team.
9.4.1 Types of Teams

Based on their objectives, teams may be classified into problem-solving teams,
self-managed teams and cross-functional teams.
1. Problem-solving teams
Problem-solving teams comprise five to ten members from the same department
who meet every week for some time, so that they can discuss the different
ways to improve the efficiencies, quality and environment of the workplace. The
members of these teams brainstorm ideas and offer suggestions on how to
improve the methods of work and processes. Problem-solving teams are also
in charge of investigating problems and determining their causes. These teams
meet regularly to discuss problems, recommend solutions and take corrective
measures.

2. Self-managed work teams

A self-managed team is a self-governing and self-regulating collection of workers
who collectively control the determination of work assignments, work pace,
collective choice of inspection procedures and organization of breaks.
Completely self-managed work teams select members on their own and have
them evaluate the performance of each other. As a result, the position of
supervisor takes on a decreased importance and, in some cases, is eliminated
altogether. These teams schedule their job on their own, do job rotations, set
pay scales linked to skills, establish production targets and hire and fire co-
workers.
3. Cross-functional teams
Cross-functional teams comprise of employees who work in the same
hierarchical level but different work areas. Such teams are usually formed for
the accomplishment of a specific task. They are an effective way to allow people
from diverse areas in an organization (or even in between organizations) to
interchange information, develop new ideas, coordinate intricate projects and
solve problems. Managing these teams is however, very difficult. The process
of building a team consumes time and effort as it is made up of workers who
hail from diverse backgrounds, work cultures and complexities. Further, it takes
time to build trust among people, especially when their work backgrounds,
experiences and perspectives are vastly different from one another. Teamwork
and building trust takes time, especially when people are from different
backgrounds, with different perspectives and experiences.
Box 9.1 Self-Managed Teams at W.L. Gore and Associates

W.L. Gore and Associates manufactures Gore-Tex, the waterproof fabric
found in outdoor clothing and spacesuits, as well as other Teflon products
for medical and industrial uses. William L ‘Bill’ Gore, the founder of W.L
Gore and Associates, created a company with a unique way of operating.
Gore introduced the concepts of worker self-management, empowerment
and teams more than thirty years ago. No employee has a formal title — all
are known as associates — and the company has no formal structure. To
be hired, an individual must be sponsored by an existing employee, who
must also find work for the ‘new’ employee. The sponsor continues to advise
the associate and even ‘market’ his or her abilities to project teams in the
company.

For example, an individual who acts as a product specialist takes charge

of developing a new product. This person then creates a team to work on
the product development. The team expands its membership as needed to
perform various functions in developing and ultimately manufacturing the
product. Team members decide how the team will operate and what staff
and financial resources the team requires. They do not need to consult with
individuals outside the team on budget or other decisions that mainly affect
the team and its product. Team members would perform functions
traditionally performed by managers, such as scheduling and assigning
jobs, maintaining equipment, ordering supplies and keeping business data
about the team’s performance.
Teams can grow to become a plant, but can have no more than 200
associates, so that members are familiar with all those in the group. In
principle, an entire work operation can become a large self-managing team
in which each member is self-managing. As the team grows, it divides into
multiple teams known as manufacturing cells. Each team member can
perform most manufacturing processes, but agrees to assume certain ones
as his or her personal responsibility. Once an associate makes a
commitment, he or she is expected to follow it. Each team has a leader
who emerges from within the team as a result of discussion and consensus.
The approach used at W.L. Gore and Associates is in marked contrast to
that used in companies with a clearly established set of reporting
relationships and formal titles for all employees. In traditionally functioning
companies, leaders are appointed and teams are not self-managing, but
are supervised by a manager. In thirty years, W.L. Gore and Associates has
grown to a company with 5,600 associates, 35 plants worldwide and revenue
close to $1 billion.
Source: Shipper, F. and C.C Manz. ‘Employee Self-Management Without
Formally Designated Teams: An Alternative Road to Empowerment’,
Organizational Dynamics. Vol. xx, Winter 1992, pp. 58–60.

There are two types of cross-functional teams. They are:

(i) Task forces: The cross-functional teams that are temporary are called
task forces.
(ii) Committees: Committees are composed of groups made up of members
from across departmental lines.
4. Self-managed teams
Self-managed teams make decisions which were once reserved only for
managers. Self-managed teams are a way of implementation in organizations.
Self-directed work teams have been given the responsibility of an entire work
process or segment. They also take up the responsibility of improving operations,
solving routine problems and planning and controlling work. Table 9.1 summarizes
the differences between self-directed work teams and more conventional work
groups.
Table 9.1 Self-Directed Work Teams Vs Conventional Work Groups
Issues Conventional Group Self-Directed Team

Job Categories Many narrow categories. One or two broad categories.
Authority Supervisor directly controls Through group decisions,
daily activities. team controls daily activities.
Reward System Tied to type of job, individual Tied to team performance
performance and seniority. and individual breadth of
skills.
Source: Orsburn, Jack, D. Linda Moran, Ed Musselwhite and John H. Zenger, Self-
directed Work Teams: The New American Challenge. Burr Ridge, IL., Irwin (1990)
Page 11.
9.4.2 Application of Teamwork

Four possible combinations — high or low differentiation plus high or low
integration — are associated with each of the applications of teamwork.
(i) Advice/involvement
(ii) Production/service
(iii) Project/development
(iv) Action/negotiation.

Table 9.2 explains these four applications.

Table 9.2 Ways Organizations Apply Teamwork
Applications and Examples Workteam Differentiation External Integration Typical Outputs

Advice/Involvement: Low differentiation: Low integration:
Committees, review panels, Inclusive or representative Often few demands for Decisions, selections,
boards, quality control circles, membership, often short synchronization with other suggestions, proposals
employee involvement group lifespan and/or limited work units; external exchange and recommendations.
groups, advisory councils. working time. can be minimal; work cycle
may not be repeated.
Production/Service:
Assembly teams, Low differentiation: High integration: Food, chemicals,
manufacturing crews, Variable membership Often internally paced project components,
mining teams, requirements, sometimes with deadline, little assemblies, retail sales
flight attendant crews, high turnover, variable team synchronization inside customer service and
data processing groups, lifespan; often, special organization; task can require equipment repairs.
maintenance crews. facilities. much external communication.
Project/Development:
Research groups, planning High differentiation: Low integration:
teams, architect teams, Members usually expert Often internally paced project Plans, designs,
engineering teams, specialists, task may require with deadline, little investigations,
development teams, specialized facilities, synchronization inside presentations,
task forces. sometimes, extended team organization, task can require prototypes, reports and
lifespan. much external communication findings.
Action/Negotiation:
Sports teams, High differentiation: High integration:
entertainment groups, Exclusive membership of Performance events closely Combat missions,
expeditions, expert specialists, synchronized with counterparts expeditions, contacts,
negotiating teams, specialized training and and support units inside an lawsuits, concerts,
surgery teams, performance facilities, organization. surgical operations and
cockpit crews. sometimes extended team competitions.
lifespan
Source: Sundstrom, Eric, Kenneth P. De Meuse and David Futrell. ‘Work Teams:
Applications and Effectiveness, American Psychologist. vol. xxxxv, No. 2, February 1990,
P. 125.
(i) Advice and involvement: An advice/involvement team is created to
generate inputs from a broad base of employees. They are low in
differentiation. Team members meet only long enough to generate ideas
or develop proposals. The work group takes on problem solving as one of
its daily activities. Since this team has a limited scope of control, the use
of teamwork has essentially no impact on an organization’s management
structure. Advice/involvement teams that routinely handle quality issues
are often called quality circles. These teams typically meet for about an
hour on a weekly basis to generate ideas for improving quality of a given
area.
(ii) Production and service: Production/service teams are charged with
activities related to producing and selling goods and services. These teams
draw their membership from a broad base and are often formed as a way
to empower first-line employees. They are low in differentiation and high
in integration. They must coordinate their work extensively with suppliers,
customers and other groups in an organization.

(iii) Project and development: A project/development team is responsible

for planning, investigating, analysing and reporting, often with the objective
of creating outputs that are complex and unique. These teams are highly
differentiated because they require employees with expertise in particular
areas. They tend not to be highly differentiated because they require
employees with expertise in particular areas. They tend not to be highly
integrated because team members generally face internal deadlines and
coordination is primarily among group members.
(iv) Action and negotiation: Action/negotiation teams have experts with
specialized skills. Owing to their expertise, these teams are highly
differentiated. They are also highly integrated with an organization. They
must closely coordinate their efforts with the work of support personnel or
with other action/negotiation teams.
9.4.3 Role Played by Team Members

Organizations use teamwork because it meets organizational objectives better
than individualized efforts. Organizations institute teamwork for the following
reasons.
1. Higher quality, productivity and profits: It is explained by the following
points:
(i) Many organizations have credited teamwork with improvements in
quality, productivity and profitability. To establish and maintain a
competitive edge in the quality of their goods and services,
organizations need to continually make improvements. This is most
likely to be achieved when employees at all levels are directly involved
in the quality effort, as is the case with teamwork.
(ii) Employees in teams also tend to deliver high quality because their
involvement and authority make them highly committed.
(iii) A team gives employees a means by which they can make continuous
improvements in work processes.
(iv) Profits rise with the rise in quality and productivity. Teamwork also
boosts profitability by reducing costs.
2. Greater flexibility: Teams can improve flexibility because team members’
broad skills and job descriptions enable them to adapt to processes quickly.
Team members have the skills, information and authority to direct their
expertise and commitment towards satisfying those needs.

3. Greater responsiveness to change: For an organization to respond

fast to change, employees who implement strategies must be involved in
decisions about those strategies. A logical way to create the necessary
involvement is to use teams.
4. Meet social needs: Teamwork offers a chance to meet social needs
and enjoy a sense of involvement and achievement. It can make work
more interesting and is a good fit with the higher value modern employees
place on participation in decision-making and an opportunity to do
something meaningful.
9.4.4 Making an Effective Team

People in every workplace talk about building the team, working as a team and
being part of a team, but few understand how to create the experience of team
work or how to develop an effective team. Belonging to a team, in the broadest
sense, is a result of feeling part of something larger than self. It has a lot to do
with ones understanding of the mission or objectives of the organization.
Twelve guidelines for building a team
• Clarity of what is expected: The executive leadership should clearly
communicate as to what kind of performance it expects from the team
and also the kind of results that are expected. It should also be ensured
that the team members understand the purpose of creating the team.
• Context: The members should be aware as to why they are part of the
team. They should also be aware of the manner in which the policy of
building teams will benefit the organization in achieving its conveyed
commercial targets.
• Commitment: It should be checked whether the team members desire to
be part of the team. It should also be confirmed whether the mission of
the team is considered significant by the team members. The participants
of the team should be strongly committed to accomplish the team’s mission
and anticipated results?
• Competence: It should be ensured whether the team is satisfied with the
number of participants it has (as an instance, in a process enhancement,
every stride in the direction of the process should correspond to the team.)
The members of the team should have the required skills, experience and
ability to tackle the problems for which the team has been created.

• Charter: A particular domain of responsibility should be allocated to the

team. It should be ensured whether the team has designed any mission,
vision or approaches to be accomplished. It should also be validated
whether the team has given any definition or communication with respect
to its targets. The probability of any probable outcomes and offerings of
the team should be explored. There should be deadlines and ways to
estimate both, the results of the team’s effort and the procedure it has
followed for achieving its goal.
• Control: The team should have enough freedom and also enough powers
to execute the ownership that is important for achieving its charter. At the
same time, the members of the team should be aware of their limits.
• Collaboration: The team should be clear about team and group practices.
It should also be ensured that the members are clear about the phases of
group development.
• Communication: The team members should understand the order of
importance of their jobs. A method should be in place for the teams to give
opinions and accept fair performance feedback.
• Creative innovation: The organization should be genuinely concerned
about change. There should be ways to find out if this change is significant
for creative thoughts, exclusive resolutions and innovative ideas. The
organization should provide remuneration to people for taking rational risks
in order to bring about development.
• Consequences: It should be clear whether team members exhibit a feeling
of responsibility and accountability for team accomplishments. The teams
should also be rewarded and recognized when they succeed in their efforts.
It should also be ensured whether a rational amount of risk is valued and
motivated in the organization.
• Coordination: There should be a central team leadership that coordinates
between the teams and helps the groups in getting what they required to
succeed.
• Cultural change: The organization should be familiar that team-based,
joint effort, empowerment and enabling of organizational culture of the
future are not the same as the contemporary, conventional and hierarchical
organizational structure.

Example
Let us take the example of how a team, say a sales team, can be made effective.
The one major risk to closing sales is customer objections. If you have ideas to
overcome customer objections, it would only lead to greater sales.
Let us look at the exercise called the Objection Clinic. Using this, teams
can identify and resolve problem areas that are hindering their performance and
leading to customer objections.
Objection Clinic—Instructions
1. Make the team list down the most common customer objections. You can
do this on a chalkboard or a flip chart. Make the list as long as possible.
Once the list in complete, quickly categorize the objections—most will be
closely related.
2. Point out to your team that every customer objection is a reflection of the
fact that the objecting customer has little knowledge of the benefits your
service or product has. A good sales person always educates the customer
to make the best decision.
3. Now, break your team into 2-3 equal work groups. Challenge the teams to
come up with the perfect responses to the customer objections. Make the
point that only experts who sell the products know the best response and
that the team members are the experts.
4. Ask each group to share their response with the other teams. Let the
team be the judge.
Upon completion of this exercise, provide each team member with the
complete list of the perfect responses. This way, you will get to know the true
knowledge of your sales team; also, they will look up to you as a leader. Over the
subsequent days, quiz team members of their responses. Repetition, after all,
is the key to retention.

(a) A ____ is a comparatively permanent work group and its members
must coordinate their activities to achieve the common goals.

(b) ___________ teams comprise five to ten members from the same
department who meet every week for some time so that they can
discuss the different ways to improve the efficiencies, quality and
environment of the workplace.
(a) Three major dimensions along which teams differ lies in the
differentiation of team roles and integration into an organization.
(b) Cross-functional teams comprise of employees who work in different
hierarchical levels but same work areas.
9.5 Leadership: Nature, Approach and Effectiveness
Leadership is a fundamental component in any organization and plays a very

important role in the different operations in an organization. An organization may
perform better than the other because of the better leadership that it may have
which is more effective and dynamic in nature. Though management of any
organization most of the times relies on a hierarchical structure and thus power
and status may be the result of the structure of an organization but leadership is
actually the result of a social influence process. However, it is also important to
note that management relies on both technical as well as social processes.
9.5.1 Nature
Leadership is not an attribute of business alone. In the army, in the government,
in universities, in hospitals and anywhere else where people work in groups, the
leadership function emerges. There must be somebody to guide that group.
The group leader may also be an informal leader, one who emerges form the
ranks of the group according to consensus of the members.
Leadership may be defined as the influence of an individual on his
subordinates in a manner that desired actions and behaviour can be invoked. A
leader can successfully motivate and influence his subordinates to perform their
duties and responsibilities diligently and to the expected level. Not only this, the
subordinates can also be enthused to perform their role very effectively,
competently and also enthusiastically. Most management writers agree that,
‘leadership is the process of influencing the activities of an individual or a group
in efforts towards goal achievement in a given situation.’

It is important to have the element of willingness in the above definition.

This element differentiates successful and effective leaders from the ‘common
run of the managers’. Motivating and influencing people to move towards a
common goal are all essential elements of management but the ‘willingness’ of
the followers to be led, highlights a special quality that puts a leader high above
others.
Leadership characteristics
A leader has certain inherent qualities and traits which assist him in playing a
directing role and wielding commanding influence over others. According to Jago,
some of these traits are:
1. Energy, drive
2. Appearance, presentability
3. A sense of cooperativeness
4. Enthusiasm
5. Personality (height and weight)
6. Initiative
7. Intelligence
8. Judgment
9. Self-confidence
10. Sociability
11. Tact and diplomacy
12. Moral courage and integrity
13. Will power and flexibility
14. Emotional stability
15. Knowledge of human relations
These traits are not universal in nature, nor do all the leaders have all
these traits. Not all these traits work all the time. While some of these
characteristics differentiate successful managers and leaders from unsuccessful
ones, it is the behaviour of the leaders, either as a result of these characteristics
or otherwise, which is more tangible and obvious and less abstract in nature.
The leadership behaviour is directly related to individual employee morale. These
are some of the indicators, which to some degree reflect the effectiveness of
leadership behaviour.

Many studies have been conducted in order to identify and separate such
characteristics and personal traits that are unique to the behaviour of successful
leaders. These traits could then be set up as standards against which the profiles
of leaders could be matched and judged. However, such attempts have not
been successful. According to Ralph Stogdill, who studied the subject of
leadership most extensively, ‘a person does not become a leader by virtue of
the possession of some combination of traits, but the pattern of personal
characteristics, activities and goals of the followers’.
9.5.2 Behavioural Approaches

During the first several decades of this century, a number of different theories
and approaches to studying leadership have been developed. The most common
approach to the study of leadership concentrated on leadership traits. Leadership
was studied in terms of personal, psychological and physical characteristics. It
was believed that leaders possessed and exhibited some unique set of qualities
which distinguished them from their peers. The researchers believed that
leadership traits included intelligence, assertiveness, personality, above-average
height, good oratory skills, self-confidence and so on. All such studies turned
out to be inconclusive. Even when the researchers found strong leaders who
had good communicational skills and assertiveness, they could not establish
whether these were the causes of leadership or these were acquired by leaders
after they had achieved leadership status.
In addition to the trait approach which is based on the characteristics of
the leader, there are behavioural approaches which study the behaviour of the
leaders as to what they do rather then what they are. Also, there are situational
approaches, or contingency approaches which describe leadership as a function
of the situation under given circumstances.
The behaviour approach studies leadership by looking at leaders in terms
of what they ‘do’. This is in contrast to the trait theory which seeks to explain
leadership in terms of what they ‘are’. Thus, according to behaviour theory,
leadership is shown by a person’s acts more than by his traits. The leadership
effectiveness is determined in terms of how leaders delegate their tasks, how
they communicate with and motivate their followers. Thus it is a function of
leader-subordinate interaction and outcome.
1. The Ohio State and Michigan Studies
Both studies were being conducted at the same time in the late 1940s and
these studies defined two independent dimensions of leader behaviour. These
two dimensions are:

(i) Consideration. It refers to the extent to which there is a rapport between

the leader and the group, mutual warmth and trust, concern for the needs
of the members of the work group, an attitude that encourages democratic
and participative style management, open two-way communication and
respect for the feedback of the followers.
(ii) Initiating structure. It refers to the extent to which a leader is task oriented,
his efforts to get things organized and get the job done and his ability in
utilizing resources and personnel at optimum level. It involves creating a
work environment in such a way that the work of the group is well
organized, coordinated and organizationally relevant so that people know
exactly what is to be done and how it is to be done. The work structure
involves having the leader to organize and define the role each member is
to assume, assign tasks to them and push for the realization of
organizational goals.
An important discovery made by these studies was that the leader does
not necessarily have to rate high both on consideration as well as structure
elements. He could be high on one and low on the other and still lead the group
successfully. Because ‘initiating structure’ dimension includes planning,
coordinating, directing, problem solving, criticizing poor performance and
pressuring subordinates to perform better and ‘consideration’ means friendliness
and consultation with subordinates, these two elements may seem to be in
conflict with each other. However, according to Weissenberg and Kavanaugh,
these two elements are considered to be relatively independent dimensions of a
leader’s behaviour. This means that a high score on one dimension does not
necessarily mean a low score on the other because these two dimensions are
apparently in conflict with each other.
These two dimensions lead to four leadership styles, shown in Figure 9.3.
Figure 9.3 Dimensions of Leadership Styles
Thus a manager with high structure and high consideration rates high in
directing and controlling his subordinates and has a high level of concern and
warmth towards them. Such managers have subordinates who are more

satisfied, have fewer grievances and stay for a longer time with the organization.
There is also evidence that such managers generate higher levels of subordinate
performance.
One advantage of this approach is that these two dimensions of leadership
behaviour are tangible and observable and do account for a major part of the
leader behaviour. Even though a casual connection of these two dimensions
with performance has not been clearly demonstrated, their relationship to
leadership effectiveness has been quite obvious.
2. The leadership grid
Another behavioural approach to studying leadership was developed by Robert
Blake and Jane Mouton. Originally called the ‘Managerial Grid’, the ‘Leadership
Grid’ is widely recognized typology of leadership styles. In general, behavioural
scientists have separated the two primary concerns in organizations, namely,
the concern for production and concern for people. They believed that a high
concern for production necessarily meant low concern for people and high
consideration for workers meant tolerance for low production. However, the
leadership grid model emphasized that both concerns should be integrated to
achieve the objectives of the organization. It assumes that people and production
factors are complementary to each other, rather then mutually exclusive.
According to Rao and Narayana, the concern for production is not limited
to things only and concern for people cannot be confined to narrow considerations
of interpersonal warmth and friendliness. Production can be measured in terms
of creative ideas of people that turn into useful products, processes or
procedures, efficiency of workers and quality of staff and other auxiliary services.
Similarly, concern for people includes concern for the degree of personal
commitment of complementing the work requirement assigned to each person,
accountability based upon trust rather than fear of force, sense of job security
and friendship with co-workers leading to a healthy working climate.
The leadership grid is built on two axes, one representing the people and
the other representing the task. Both the horizontal as well as vertical axis are
calibrated on a scale from 1 to 9, where 1 represents the least involvement and
9 represents the most involvement so that coordinates (1,1) would indicate
minimum standards for worker involvement and task design and coordinates
(9,9) would indicate maximum dedication of the workers and highly structured
operations. Such an involvement would reflect upon the managerial orientation
towards tasks and towards workers who are expected to perform such tasks.

Blake and Mouton have identified five such coordinates that reflect various
styles of leader behaviour. The leadership grid and these styles are shown in
Figure 9.4.
Figure 9.4 Leadership Grid and Styles

Figure 9.4 can be interpreted as follows:
• Coordinates (1,1) ‘Impoverished Management’; The manager makes
minimum efforts to get the required work accomplished; Minimum
standards of performance and minimum worker dedication.
• Coordinates (9,1). ‘Authority Compliance’; Excellent work design;
Efficiency in operations; Well established procedures; Orderly
performance; Human element interference to a minimum degree.
• Coordinates (1,9). ‘Country Club Management’; Thoughtful attention to
the needs of people; Personal and meaningful relationship with workers;
Friendly atmosphere and high morale; Loosely structured work design;
Primary concern for people, production secondary.
• Coordinates (9,9). ‘Team Management’; Ultimate in managerial efficiency;
Work accomplishment from thoroughly committed people; Trustworthy
and respectful atmosphere; Highly organized task performances.
Interdependence of relationships through a ‘common stake’ in
organizational purpose.

• Coordinates (5,5). ‘Middle-of-the-Road Management’; This leadership style

is concerned with balancing the necessity to get the work done while
maintaining worker morale at a satisfactory level; Moderate concern for
both production and people.
The leadership grid provides a reasonable indication of the health of the
organizations as well as the ability of the managers. The model assumes that
there is one best or most effective style of management, which is the style
indicated by coordinates (9,9). It is the objective of all management to move as
close to this style as possible, because the managers who emphasize both
high concern for people as well as productivity are presumed to be more
successful. Accordingly, managers should be carefully selected and trained so
that they are able to coordinate people and tasks for optimum benefit.
The leadership grid model, however, has become controversial on the
basis of lack of empirical evidence, supporting whether the team management
style is the best management style. Even Blake and Mouton offer conceptual
rather than empirical arguments as to why team management style should be
the best management style. One study with an extremely large sample size
(sixteen thousand) found that only about 13 percent of the total executives were
high-achieving ones who cared about both, people and profits and low achievers
were obsessed only with their own security. High achievers viewed their
subordinates optimistically while low achievers displayed a basic distrust in the
ability of their subordinates. High achievers were listeners while low achievers
avoided communication relying primarily on policy manuals.
9.5.3 Effectiveness of Leadership

The following guiding principles have been developed by Ludewig to help you
develop effective leadership skills:
1. Know thyself. Know your own strengths and weaknesses. Evaluate your
capabilities. Improve upon your weaknesses and utilize your strengths.
2. Be a role model. Expect no more than what you are willing to give.
3. Learn to communicate with your ears open and your mouth shut. God
gave us two ears and one tongue, perhaps for a reason. Listen to what
the followers have to say.
4. Be a team player. Do not sit in an ivory tower. Come close to the threat of
operations. Make efforts to know what other members of the team are
doing and become involved in their work.

5. Be honest to yourself as well as to others. People appreciate honesty and

integrity in their leaders. You are a human being before you are a leader.
Show your human side, do not cover it.
6. Do not avoid risks. Courage is an integral ingredient of effective leaders.
Do not hesitate to take calculated risks. See problems as challenges,
challenges as catalysts for change and changes as opportunities.
7. Believe in yourself. Be self-assured. Be confident in your ability to get the
job done.
8. Be proactive. Take the offensive approach rather than defensive approach.
Anticipate the problem and solve it before it becomes unmanageable.
9. Be willing to accommodate and compromise. The real winner is the leader
who can facilitate the opposing side’s goals while achieving his own.
10. Be a good follower. Every successful leader plays the role of a follower at
some point. Also, effective leaders lead as they would like to be led.
Activity 1
Make a list of key elements of behaviour, as discussed in the Leadership
Grid Model of Blake and Mouton

(a) _______ is a fundamental component in any organization and plays
a very important role in the different operations in an organization.
(b) According to _____ _____, ‘a person does not become a leader by
virtue of the possession of some combination of traits, but the pattern
of personal characteristics, activities and goals of the followers’.
(a) Leadership was studied in terms of personal, psychological and
physical characteristics.
(b) The work structure involves having the leader to organize and define
the role each member is to assume, assign tasks to them and push
for the realization of organizational goals.

9.6 Delegation
Delegation is the downward transfer of formal authority from one person to

another. Superiors delegate authority to subordinates to facilitate the
accomplishment of the assigned work. Delegation of authority becomes
necessary as the organization grows. The chief executive cannot perform all
the tasks of the organization himself so that he must share some of his duties
with his immediate subordinates. This process continues until all activities are
assigned to persons who are made responsible for performing them.
9.6.1 Principles for Delegation

Delegation of authority should be effective and result oriented. Some of the
principles that serve as guidelines for effective delegation of authority are
described as follows:
1. Functional clarity. The functions to be performed, the methods of
operations and the results expected must be clearly defined. The authority
delegated must be adequate to ensure that these functions are well
performed.
2. Matching authority with responsibility. As discussed earlier, authority
and responsibility are highly interconnected. For example, if a marketing
manager is given the responsibility of increasing sales, he must have the
authority over advertising budgets and on hiring more capable sales people.
Authority should be adequate and should not only match the duties to be
performed but also the personal capabilities of the subordinate.
3. Unity of command. As described earlier, a subordinate should be
responsible to only one superior who is delegating the authority to the
subordinate in the first place. In this manner, the responsibility for mistakes
or accomplishments is traceable and the chances of conflict or confusion
are minimal.
4. Principle of communications. A misunderstood responsibility can be
very dangerous. A general authority can be easily misused. Accordingly,
both the responsibility and authority must be clearly specified, openly
communicated and properly understood. The lines of communication must
be continuously kept open for issuing directions as well as for receiving
feedback.

5. Principle of management by exception. Management should delegate

the authority and responsibility for routine operations and decision-making
to subordinates, but must retain such tasks for themselves for which it
alone is uniquely qualified. On the other hand, the subordinates must make
decisions and take actions wherever they can and should only refer matters
of such nature to their superiors which are unique and outside their domain
of authority. This practice saves valuable time of the top management
which can be utilized for more important policy matters. Also, by trying to
solve most of the problems by themselves, the subordinates prepare
themselves for higher challenges and responsibilities.
9.6.2 Process of Delegation

When managers delegate, they set a four-step sequence of events in motion.
These steps include:
1. Assignment of tasks. The first step in this process is to determine clearly
what the subordinates are supposed to do. Then the capabilities of each
subordinate should be considered to match them with the assigned duties.
The tasks should be distributed in such a manner that the subordinates
are not unnecessarily overburdened and that each one is capable of
efficiently completing the assigned task. The total task can be divided into
identifiable parts so that the manager can handle some parts himself and
other parts can be given to skilled subordinates. This way the coordination
and supervision would become easier.
2. Delegation of decision-making authority. The second step is to give
authority to subordinates to make and implement decisions regarding
procurement of resources and supervision of activities that are relevant
to the duties assigned to them. This authority must be clearly stated and
if possible in writing, so that there is no ambiguity regarding making
necessary decisions. The authority should also be related to tasks so that
if the tasks change, so would the authority. Any matters or decisions that
do not fall within the domain of delegated authority must be referred to the
superiors.
3. Creation of obligation. The third step is the creation of obligation on the
part of the subordinates to perform their duties satisfactorily. The person
assigned the task is morally responsible to do his best since be has willingly
accepted these tasks. Obligation is a personal concern for the task. Even
if the subordinate gets part of the task done through other people, he must

accept responsibility for timely completion of the task as well as the quality
of the output.
4. Creation of accountability. Being answerable to some one for your
actions creates accountability, an obligation to accept the consequences,
good or bad. According to Newman, Summer and Warren, ‘by accepting
an assignment, a subordinate in effect gives his superiors a promise to
do his best in carrying out his duties. Having taken a job, he is morally
bound to complete it. He can be held accountable for results.’
9.6.3 Advantages of Delegation

When used properly, delegation of authority to subordinates offers several
important advantages. Some of these are:
1. It results in quick decisions. Since the power to make decisions is
delegated, decisions can be made right away at or near the center of
operations, as soon as a deviation occurs or the situation demands. This
would save a lot of time in referring the matter to higher levels, briefing
them about the situation and waiting for their decisions.
2. It gives executives more time for strategic planning and policy
making. Since the central management is not involved in day-to-day
decisions, it can concentrate its efforts on meeting broad and unique
challenges and opportunities. Also, since the higher level management
may not have the necessary technical skills to make lower level technical
decisions, such decisions are more productive if taken at the lower level.
The higher level management has better skills in strategic planning and
hence they will have more time on their hands to utilize their skills more
effectively.
3. It is a motivational factor. Subordinates usually respond to delegated
authority with favourable attitude. They become more responsible and
more dedicated to their work and they feel proud to be given such authority
and responsibility. This in turn boosts their morale. On the other hand, if
the lower level managers do not have the authority to act and make
decisions even when they are competent to do so, this might give them a
feeling of insecurity and incompetence.
4. It can be a training ground for executive ability. Subordinates, when
given control over the problems they face, are able to analyze the situation
and make decisions accordingly. This continuous involvement prepares
them for problem solving process when they reach a higher executive

level. This process will also screen out those from the executive level
who have proved to be less successful in handling problems at the lower
level.
9.6.4 Problems with Delegation

One of the major problems with delegation of authority is that the central
management is very far from the actual operations where the decisions are
made so that it becomes difficult to pinpoint major problems when they occur
because decisions are made by many subordinates. The second problem may
lie in. the area of coordination. If coordination among these many subordinates
is not adequate, then confusion may result and it may become difficult to exercise
control over procedures and policies. Finally, it may be difficult to perfectly match
the task with the capability of the subordinate.
Personal factors as barriers to delegation
Even though delegation of authority has some definite advantages and may be
even necessary for optimal organizational operations, some managers are very
reluctant to delegate authority and many subordinates avoid taking on the authority
and the responsibility that goes with it. The general causes for such reluctance
are based upon certain beliefs and attitudes which are personal and behavioural
in nature.
Reluctance of executives
Eugene Raudsepp has listed several reasons as to why managers are
sometimes unwilling to delegate. Some of these reasons are as follows:
1. An executive may believe that he can do his work better than his
subordinates. He might believe that his subordinates are not capable
enough. Delegation may require a lot of time in explaining the task and the
responsibility to the subordinate and the manager may not have the
patience to explain, supervise and correct any mistakes. For example,
many professors type their own technical papers and exams rather than
give the responsibility to the secretary who may not be technically oriented
and thus explaining it to her would be time consuming.
2. A manager may lack confidence and trust in his subordinates. Since the
manager is responsible for the actions of his subordinates, he may not be
willing to take chances with the subordinates, in case the job is not done
right.
3. Some managers lack the ability to direct their subordinates. They may not
be good in organizing their thoughts as well as their activities and thus

may not know what to do after delegation in order to help the subordinates
to complete the task.
4. Some managers feel very insecure in delegating authority, especially when
the subordinate is capable of doing the job better. The manager, in such a
situation, may fear his loss of power and competition from the subordinate.
5. A manager may fear being known as lazy, if he delegates most of his
tasks. Since everybody wants to at least look busy, it will be difficult for
managers to do so if they do not have much to do for themselves due to
delegation. Accordingly, they may be reluctant to do more work themselves
so that they create the impression of hard-working executives.
6. An executive may be reluctant to delegate if he believes that the control
system is not adequate in providing early warning of problems and
difficulties that may arise in the delegated duties, thus delaying the
corrective decisions and actions.
Reluctance of subordinates
While delegation of authority can be a highly motivating factor for some
subordinates, others may be reluctant to accept it for the following reasons.
1. Many subordinates are reluctant to accept authority and make decisions
for fear that they would be criticized or dismissed for making wrong
decisions. This is especially true in situations where a subordinate had
made a mistake earlier.
2. The subordinates may not be given sufficient incentives for assuming
extra responsibility which could mean working harder under pressure.
Accordingly, in the absence of adequate compensation in the form of higher
salary or promotional opportunities, a subordinate may avoid additional
responsibility and authority.
3. A subordinate may lack self-confidence in doing the job and may fear that
the supervisor will not be available for guidance once the delegation is
accepted and this may make the subordinate feel uncomfortable with
additional tasks.
4. Some subordinates hesitate to accept new and added assignments when
there is a lack of necessary information and when the available resources
are not adequate or proper.
Activity 2
Collect the various definitions of delegation.


(a) ______ is the downward transfer of formal authority from one person
to another.
(b) When used properly, delegation of ______ to subordinates offers
several important advantages.
(a) Since the power to make decisions is never delegated, decisions
can be made right away at or near the center of operations, as soon
as a deviation occurs or the situation demands.
(b) Eugene Raudsepp has listed several reasons as to why managers
are sometimes unwilling to delegate.
9.7 Summary

• Group dynamics can be defined as a coordination of behaviors and
psychological developments that take place in a social group, or between
different social groups.
• From an organizational behavioural point of view, there are basically two
types of groups: formal groups and informal groups. Groups that are
particularly created to carry out specific tasks are known as formal groups.
Groups that emerge in a natural way among people and have no direction
from the organization in which they work.
• Team leadership and management roles related to supervision are critical
in the modern workplace. People usually get promotions and become
team leaders or supervisors simply due to their good operating skills or
outstanding technical proficiency. But for succeeding in their new task
they additionally need a new set of management and leadership skills.
• Leadership is a basic factor in every organization and its role is very critical
in various functions in an organization.
• The behaviour approach studies leadership by looking at leaders in terms
of what they ‘do’. This is in contrast to the trait theory which seeks to
explain leadership in terms of what they ‘are’.

• Behavioural scientists have separated the two primary concerns in

organizations, namely the concern for production and concern for people.
• The leadership grid is built on two axes, one representing the people and
the other representing the task. Both the horizontal as well as vertical axis
are calibrated on a scale from 1 to 9, where 1 represents the least
involvement and 9 represents the most involvement
• Delegation is the downward transfer of formal authority from one person
to another. Superiors delegate authority to subordinates to facilitate the
accomplishment of the assigned work.
• The process of delegation involves the assignment of tasks, delegation of
decision-making authority, creation of obligation and creation of
accountability.
• The various advantages of delegation are as follows:
ο It results in quick decisions.
ο It gives executives more time for strategic planning and policy making.
ο It is a motivational factor.
ο It can be a training ground for executive ability.
• One of the major problems with delegation of authority is that the central
management is very far from the actual operations where the decisions
are made so that it becomes difficult to pinpoint major problems when
they occur because decisions are made by many subordinates.
9.8 Glossary
• Group dynamics: A system of behaviours occurring within a social group

(referred to as intragroup dynamics) or between social groups (referred
to as intergroup dynamics)
• Special Weapons and Tactics Team (SWAT): An elite paramilitary tactical
unit in American law enforcement departments
• Esprit de Corps: An intangible term used to describe the capacity of
people to maintain belief in an institution or a goal, or even in oneself or
others
• Cohesiveness: The degree of closeness that the members feel with the
group

• Board of Directors: A group of people, elected by stockholders, to

establish corporate policies and make management decisions
• Conformity: Action or behaviour in correspondence with socially accepted
standards, conventions, rules, or laws
• Formal groups: A group that managers purposely establish to achieve
organizational goals
• Informal groups: A group that-managers or non-managerial employees
form to help achieve their own goals or meet their own needs
• Interdependence: A dynamic of being mutually and physically responsible
to, and sharing a common set of principles with others
• Integration: The degree to which the team must coordinate with managers,
employees, suppliers and customers outside the team
• Differentiation: The extent to which team members are specialized in
comparison to others in an organization
• Initiating structure: The extent to which a leader is task oriented, his
efforts to get things organized and get the job done and his ability in utilizing
resources and personnel at optimum level
• Delegation: Downward transfer of formal authority from one person to
another
1. Discuss the importance of group dynamics in organizations.

2. Write a note on the factors that contribute to group cohesiveness.
3. Explain the different types of groups.
4. How can teams in organizations be classified?
5. Describe the nature and characteristics of leadership.
6. List and explain the steps involved in the process of delegation.

9.10 Answers
1. (a) Maintenance; (b) George Homans

3. (a) Formal; (b) Informal
5. (a) Team; (b) Problem-solving
7. (a) Leadership; (b) Ralph Stogdill
9. (a) Delegation; (b) Authority





Unit 10 Motivation Theories
Structure
10.1 Introduction
Objectives
10.2 Meaning and Concepts of Motivation
10.3 Human Needs and Need-Specific Theories of Motivation
10.4 Two-Factor Model and its Interpretation
10.5 Goal-Setting Theory
10.6 Expectancy Theories
10.7 Summary
10.8 Glossary
10.10 Answers
10.1 Introduction
In the previous unit, you learnt about group dynamics and leadership. In this unit,
you will learn about the various theories of motivation. Motivation is a term that
refers to a process that elicits, controls and sustains certain behaviours. It is an
intricate occurrence. Several theories have been propounded to explain how
motivation works, such as the content theory (based on individual needs), the
two-factor theory, the goal-setting theory and the expectancy theory.
In management, possibly the most accepted explanations of motivation
are based on the needs of the individual. The basic needs model, referred to as
the content theory of motivation, highlights the specific factors that motivate an
individual. According to Abraham Maslow, need is a physiological or psychological
deficiency that a person feels the pressure to satisfy. Maslow’s ideas surrounding
the five levels of needs of employees—physiological needs, safety and security
needs, love and social needs, esteem needs and self-actualization needs—
are today more relevant than ever. Clayton Alderfer’s Existence, Relatedness,
Growth (ERG) theory is built upon Maslow’s hierarchy of needs theory. Alderfer
divided Maslow’s five levels of needs into three categories, namely existence
needs, relatedness needs and growth needs. Another theory based on needs is
David McClelland’s acquired needs theory. This theory recognizes that everyone
prioritizes needs in different ways. According to this theory, individuals are not
born with these needs, but they actually learn these through life experiences.
To explain the motivational implications of work environments, Frederick

Herzberg has propounded the two-factor theory, which identifies two sets of
factors that influence motivation in the workplace, namely hygiene factors and
satisfiers or motivators. In the 1960s, Edwin Locke brought forward the goal-
setting theory of motivation. According to this theory, goal setting is basically
linked to task performance. Specific and challenging goals, accompanied by
appropriate feedback, lead to higher and better task performance.
According to the expectancy theory of motivation, a person decides to act
in a certain way since he is motivated to choose a specific behaviour over other
behaviours on the basis of his expectation of the result of that selected behaviour.
In other words, the motivation of the behaviour selection is determined by the
desirability of the outcome. In the study of organizational behaviour, expectancy
motivation theory was first proposed by Victor Vroom of the Yale School of
Management.
Objectives
• Describe the meaning and characteristics of motivation
• Identify the various types of human needs
• Compare the various need-specific theories of motivation
• Interpret Fredrick Herzberg’s Two-Factor Model of motivation
• Discuss the goal-setting theory of motivation of Edwin Locke
• Explain Victor Vroom’s model of motivation based on the expectancy model
10.2 Meaning and Concepts of Motivation
The word ‘motivation’ is derived from ‘motive’, which is a need or a desire requiring
movement towards the goal of achievement of such need and desire. It is an
action, movement or behaviour that must fulfill the unsatisfied need. You have
already learned in Unit 1 that motivation represents an unsatisfied need which
creates a state of tension or disequilibrium, causing the individual to move in a
goal directed pattern towards restoring a state of equilibrium, by satisfying the
need. The motivation could be positive ( requiring appreciation of employee’s
efforts to ensure better performance) or it could be negative (inducing fear and
punishment for fewer efforts). Motivation can also be induced by external factors,
such as financial rewards for better output, or it could be intrinsic in nature, i.e.,

inner-generated. This means that accomplishing something worthwhile

motivates the employee further and this motivation is independent of financial
rewards.
Dynamite King
One day in 1888, Alfred Nobel, the inventor of dynamite, was astonished to find his
own obituary in the morning paper. Though dismayed by the fact that his brother had
died (thus the error), Nobel was equally disturbed by his own portrayal as the ‘Dynamite
King’ — a great industrialist who had made his fortune peddling the seeds of devastation.
His philanthropic deeds and pacific nature notwithstanding, had Nobel really died, he
would have been remembered as a merchant of death.
As he read the paper with growing horror, he resolved to rewrite his will. The result?
The endowment of the Nobel Prizes.
Source: http://www.anecdotage.com
The concept of motivation has three basic characteristics.

1. Effort
The amount of effort put into the activity identifies the strength of the person’s
work related behaviour. Hard work usually reflects high motivation. A student
who works very hard to get top grades can be referred to as highly motivated. A
professor who is engaged in research and publishes many high quality articles
is exerting extensive effort relating to his job.
2. Persistence
Motivation is a permanent and an integral part of a human being. Its second
characteristic is persistence in the efforts. Motivation is continuously goal directed
so that once a goal is achieved, a higher goal is selected and efforts are exercised
towards this higher goal. For example, a professor who published simply to get
a promotion and then stops or reduces research efforts would not be considered
as highly motivated. Accordingly, high motivation requires persistent efforts.
3. Direction
Persistent hard work determines the quantity of effort while direction determines
the quality of the anticipated output. All efforts are to be directed towards the
organizational goal. This would ensure that the persistent effort is actually resulting
into accepted organizational outcomes. For example, a quality control inspector
is consistently expected to direct his efforts in discovering defects in the produced
items so that the organizational goal of high quality output is met.

As an example, let us assume that a professor has established a goal for

himself to get a promotion and monetary raise in order to improve upon his
standard of living. Thus the professor will shape his behaviour to achieve that
goal. He will choose a course of action designed to obtain promotion. This course
of action may comprise five published articles or one published book. He will be
highly motivated and will put in persistent efforts in research and publish the
desired number of articles or the book.
Once the promotion has been obtained, the professor will re-evaluate his
achievement relative to his initially established objective. If the pay raise is not
adequate and there are grounds for further promotion and pay raise, the professor
will establish a higher goal and strive towards it. This example fits the basic
motivational process as follows:
10.2.1 Process of Motivation

In the preceding example, if the motivator (publishing) does not serve the required
purpose, then the professor will look at other alternatives as motivators such as
service to the college and community, student guidance and curriculum
development and good interactive relations with peers and superiors. Thus the
motivation process involves the following steps.
Unsatisfied need
(High standard of living) Step 1
Tension of disequilibrium
(Need for promotion)
Action, movement of behaviour Step 2

(Effort, publication)
Goal, equilibrium
(Promotion & salary increase)
Feedback
(Re-evaluation of goals) Step 3
Figure 10.1 Process of Motivation
• Step1 (Analysis of situation): The situation that needs motivational

inducement must be sized up so as to ascertain the motivational needs.
From organizational behaviour point of view, it must be recognized that

since the needs of different employees differ both in nature as well as

intensity, a composite view of the collective needs of the group is
established with appropriate recognition of differences in individual needs.
• Step 2 (Selecting and applying appropriate motivators): A list of all
devices of motivation is drawn and a selection made of such motivators
that motivate different types of people under different circumstances.
Proper timing and the extent of motivation is also to be considered. The
individual goals should be given adequate attention within the framework
of group goals and the organizational goals.
• Step 3 (Follow-up): It is important to know that the motivators selected
are indeed providing the desired motivation. This can be accomplished by
getting and evaluating the feedback. If these motivators are not showing
the optimum effect, then alternative motivators should be selected and
applied.
10.2.2 Sources of Motivation

Experts in the organizational behaviour field have a divided opinion as to whether
workers are motivated by factors in the external environment such as rewards
or fear or whether motivation is self generated without the application of external
factors. It is quite well understood that under the same set of external factors, all
workers are not equally motivated. Some of these motivational sources are:
Positive motivation
Positive motivation involves proper recognition of employee efforts and
appreciation of employee contribution towards the organizational goal
achievement. Such motivations improve the standards of performance, lead to
good team spirit and pride, a sense of cooperation and a feeling of belonging
and happiness. Some of the positive motivators are as follows:
• Praise and credit for work done
• A sincere interest in the welfare of subordinates
• Delegation of authority and responsibility to subordinates
• Participation of subordinates in the decision making process
Negative or fear motivation and behaviour modification
This motivation is based upon the use of force, power, fear and threats. The fear
of punishment or unfavourable consequences affects the behavioural changes.
Some examples of negative motivation include the fear of failing in the
examination, and fear of being fired or demoted. Fear of failure in the examination

induces motivation in many students to work harder and pass the course.
Similarly, fear of being fired keeps the workers in line with the organizational
rules and regulations as well as do a satisfactory job.
While the fear of punishment and actual punishment has resulted in
controlling individual misbehaviour and has contributed towards positive
performance in many situations and is necessary and useful in many other
situations such as disciplining a child or handling a riot, it is not recommended
or considered as a viable alternative in the current business and industrial
environment. This is based upon the changing trends in the workforce including
higher level of employee education and extensive employee unionization.
However, punishment or fear of it is still the most common technique of
behaviour modification or control in today’s life. When a child misbehaves, he is
still spanked. If a worker does not behave according to the way the organization
wants him to behave, he is fired. If a person does not behave as the society and
law wants him to behave, he is punished by arrest and jail. All religions threaten
punishment in the life hereafter if a person does not behave according to God’s
and religious rules.
Does the punishment system work? Does it change behaviour? Does the
prison system reform the criminal? Does spanking make a ‘good’ child? This
area has received considerable attention and has become highly controversial.
It has been proposed that while punishment has immediate and short-term effect
in changing behaviour, the long-term effects are highly questionable. A driver,
who gets fined for jumping running a red light where he is supposed to stop,
may vow never to do it again at that time, but as the time passes, he may do it
again.
In the context of organizational behaviour, no worker likes to be criticized,
or threatened with employment termination. Specifically, if the worker is punished
for an occasional undesired behaviour, it will have a negative effect on his morale;
and make him bitter with a hostile state of mind, affecting negatively his social
interaction as well as his sense of loyalty. This may result in poor performance
and productivity and quality.
Extrinsic motivation
This type of motivation is induced by external factors that are primarily financial
in nature. It is based upon the assumption that the behaviour that results in
positive rewards tends to be repeated. However, the reward for the

desired behaviour should be sufficiently powerful and durable so that it improves

the probability of occurrence of desirable behaviour. Money is probably the most
important incentive for positive behaviour since money can be used for a number
of other resources.
These financial incentives and rewards have been a subject of debate
whether they really motivate the employees or simply move them to work and
perform. These include higher pay, fringe benefits such as retirement plans,
stock options, profit sharing schemes, paid vacations, health and medical
insurance, sympathetic supervision and people oriented company policies.
Intrinsic motivation
Intrinsic motivation stems from feelings of achievement and accomplishment
and is concerned with the state of self-actualization in which the satisfaction of
accomplishing something worthwhile motivates the employee further so that
this motivation is self-generated and is independent of financial rewards. For
example, there are many retired doctors who work free in the hospital because
it gives them a sense of accomplishment and satisfaction. Mother Teresa’s work
in the slums of Kolkata (India) not only motivated the people who worked with
her but also many others who simply heard about her work and then wanted to
join the team. Similarly, Peace Corps workers work in uncomfortable
environments at a minimal pay. Some of the intrinsic motivators are praise,
recognition, responsibility, esteem, power, status, challenges and decision
making responsibility.

(a) ——— is a need or a desire requiring movement towards the goal of
achievement of such need and desire.
(b) ———— is based upon the assumption that the behaviour that
results in positive rewards tends to be repeated.
(a) Motivation is a temporary and peripheral part of a human being.
(b) Intrinsic motivation is concerned with the state of self-actualization

10.3 Human Needs and Need-Specific Theories of Motivation
The content theories have been developed to explain the nature of motivation in
terms of types of need that people experience. They attempt to focus on factors
within a person that initiate and direct a certain type of behaviour or check certain
other type of behaviour. The basic idea underlying such theories is that people
have certain fundamental needs, both physiological and psychological in nature,
and that they are motivated to engage in activities that would satisfy these needs.
Thus the nature of needs establishes the nature of motivation that results in a
specific behaviour aimed at reaching the goal of satisfying such needs.
Needs
Behaviour
Goals
Figure 10.2 Relationship between Needs, Behaviour and Goals
10.3.1 McGregor’s Theory X and Theory Y

Douglas McGregor (1906–64) was a professor of industrial management at
Massachusetts Institute of Technology (MIT) for most part of his career. His
contribution to management thought lies in his proposal that a manager’s
assumptions about the role of employees determine his behaviour towards them.
According to him, the classical organization—with its highly specialized jobs,
centralized decision-making and communication from top downwards through
the chain of command— was not just a product of the need for productivity and
efficiency, but instead it was a reflection of certain basic managerial assumptions
about human nature. These assumptions, that McGregor somewhat arbitrarily
classified were designated as Theory X. Theory X identified the classical approach
to management based upon the ideas generated in the late 1800s and early
1900s, and was primarily based upon the assumption about economic rationality
of all employees. This evolved around the classical assumption of Adam Smith
that people are motivated by economic incentives and they will rationally consider
opportunities that provide for them the greatest economic gain. To the classical
thinkers, an efficiently designed job, efficiency centred organization and proper
monetary incentives to workers were the proper tools of motivation.
This approach was effective because it was a product of its times. In the
late nineteenth century and early twentieth century, technology change was

relatively slow and predictable, labour was abundant, competitors were known
and productivity was the main focus.
This approach was based on the following assumptions.
Theory X Assumptions
1. Most people dislike work and avoid it whenever possible.
2. They need to be directed, controlled and threatened with punishment in
order to move them to work and achieve organizational goals.
3. An average person is lazy, shuns responsibility, prefers to be directed,
has little ambition and is only concerned with his own security.
4. Most people avoid leading and want to be led and supervised. They are
unwilling to accept responsibility.
McGregor believed that managers who hold Theory X assumptions are
likely to treat workers accordingly. These managers practice an autocratic
management style and may use the threat of punishment to induce employee
productivity. The communication is primarily directed downwards and the
environment is characterized by minimal manager-employee interaction.
In contrast, Theory Y emphasizes management through employee input
and delegation of authority. According to Theory Y, managers make the following
assumptions.
Theory Y Assumptions
1. Work is natural to most people and they enjoy the physical and mental
effort involved in working, similar to rest or play.
2. Commitment to goals and objectives of the organization is also a natural
state of behaviour for most individuals.
3. They will exercise self direction and self control in pursuit and achievement
of organizational goals.
4. Commitment to goals and objectives is a function of rewards available,
especially the rewards of appreciation and recognition.
5. Most people have the capacity for innovation and creativity for solving
organizational problems.
6. Many individuals seek leadership roles in preference to the security of
being led.
Managers who hold Theory Y assumptions treat their workers as
responsible persons and give them more latitude in performing their tasks.

Communication is multidimensional and managers interact frequently with

employees. These managers encourage innovation and creativity, minimize the
use of supervision and controls and redesign the work to make it more interesting
and satisfying with regard to higher level needs of workers such as self-esteem
and self-actualization. They integrate individual goals and organizational goals
so that with commitment and dedication, both goals are achieved at the same
time.
Compared to Theory X, Theory Y has the greater potential to develop
positive job relationships and motivate employee performance. It must be
understood, however, that in some situations where workers do require close
supervision and greater controls, Theory X assumptions are more effective in
achieving organizational goals.
The Hard Approach and Soft Approach

Under Theory X, management approaches to motivation range from a hard approach to
a soft approach.
The hard approach to motivation relies on coercion, implicit threats, micromanagement,
and tight controls — essentially an environment of command and control. The soft
approach, however, is to be permissive and seek harmony in the hope that, in return,
employees will cooperate when asked. However, neither of these extremes is optimal.
The hard approach results in hostility, purposely low-output, and extreme union demands.
The soft approach results in increasing desire for greater reward in exchange for
diminishing work output.
It would appear that the optimal approach to human resource management would lie
somewhere between these extremes. However, McGregor asserts that neither approach
is appropriate since the foundations of theory x are incorrect.
Source: http://www.envisionsoftware.com/articles/Theory_X.html
10.3.2 Maslow’s ‘Needs Hierarchy Theory’

Maslow’s ‘needs hierarchy theory’ is probably the most widely used theory of
motivation in organizations. Abraham Maslow suggested that people have a
complex set of exceptionally strong needs and the behaviour of individuals at a
particular moment is usually determined by their strongest need. He developed
his model of human motivation in 1943, based upon his own clinical experience
and formulated his theory of hierarchical needs by asking the same question,
‘What is it that makes people behave the way they do?’ and made a list of answers
from which he developed a pattern.

Maslow’s theory is based upon two assumptions. First, human beings

have many needs that are different in nature ranging from the biological needs
at the lower level that is the level of survival, to psychological needs at the upper
extreme that is the level of growth. Second, these needs occur in an order of
hierarchy so that lower level needs must be satisfied before higher level needs
arise or become motivators. Mahatma Gandhi, the Indian leader, once remarked
that ‘even God cannot talk to a hungry man except in terms of food.’- Similarly,
there is a quotation from the Holy Guru Granth Sahib, the holy scripture of Sikhs
in India that quotes a holy man saying to God, ‘Take you rosary beads away. I
cannot worship and meditate on you when I am hungry’. This means that if the
people’s basic needs that are biological in nature are unsatisfied, than their total
attention will be focused upon these needs and it will not be possible to
communicate with them about other matters.
Being Abraham Maslow

Being Abraham Maslow is a half- an-hour long film, and features Maslow talking to
Warren Bennis about his life, his views of the world and his work. It is utterly compelling
and shows Maslow’s staggering perception of the issues which challenge society and
humankind today. This was recorded in 1968. The film, basically irresistible throughout,
includes some marvelous moments, such as Maslow’s questioning observation as to
‘...how good a human nature does society permit?...’, and the visionary statement
that: ‘...The Good Society now has to be one world - it has to be one world or it won’t
work - nationalism is dead - it just does not know it yet...’ He said this in 1968 and till
today our leaders do not see it.
Source: http://www.businessballs.com/maslow.htm
This model of hierarchical needs explains human behaviour in a more

dynamic and realistic manner and is primarily based upon people’s inner states
as a basis for motivation and the environmental conditions do not play any
significant role. Maslow postulates five basic needs arranged in successive
levels. These needs continue to change resulting in change in goals and activities.
These five needs are arranged in the form as shown. The first three levels of
needs at the bottom are known as ‘deficiency’ needs and they must be satisfied
in order to ensure the individual’s very existence and security and make him
fundamentally comfortable. The top two sets of needs are termed ‘growth’ needs
because they are concerned with personal growth, development and realization
of one’s potential.

Figure 10.3 Hierarchy of Needs

These needs are explained in detail as follows.
1. Physiological needs
The physiological needs form the foundation of the hierarchy and tend to have
the highest strength in terms of motivation. These are primarily the needs arising
out of physiological or biological tension and they are there to sustain life itself
and include the basic needs for food, water, shelter and sex. Sexual need and
desire is not to be confused with that which is at the third level. Once these
basic needs are satisfied to the degree needed for the sufficient and comfortable
operation of the body, then the other levels of needs become important and start
acting as motivators.
2. Security and safety needs
Once the physiological needs are gratified, the safety and security needs become
predominant. These are the needs for self-preservation as against physiological
needs that are for survival. These needs include those of security, stability,
freedom from anxiety and a structured and ordered environment. These safety
and security needs are really provisions against deprivation of satisfaction of
physiological needs in the future. It also involves a sense of protection against
threats and danger of losing the job in the future. In a civilized society such as
ours, a person is usually protected from threats of violence or extremes in climate
or fear of material safety, so that the safety and security needs dwell upon
economic and job security, life and medical insurance and other protective
measures to safeguard the satisfaction of physiological needs in the future that
may be unpredictable.

3. Love and social needs

After the needs of the body and security are satisfied, a sense of belonging and
acceptance becomes prominent in motivating behaviour. These needs include
the needs for love, friendship, affection and social interaction. We look for an
environment where we are understood, respected and wanted. That is one reason
for ‘polarization’ where people of similar background and beliefs tend to group
together. ‘Love they neighbor’ has perhaps a profound meaning.
4. Esteem needs
The need for esteem is to attain recognition from others that would induce a
feeling of self-worth and self-confidence in the individual. It is an urge for
achievement, prestige, status and power. Self-respect is the internal recognition.
The respect from others is the external recognition and an appreciation of one’s
individuality as well as his contribution. This would result in self-confidence,
independence, status, reputation and prestige. People then would begin to feel
that they are useful and have some positive effect on their surrounding
environment.
5. Self-actualization needs
This last need is the need to develop fully and to realize one’s capacities and
potentialities to the fullest extent possible, whatever these capacities and
potentialities may be. This is the highest level of need in Maslow’s hierarchy and
is activated as motivator when all other needs have been reasonably fulfilled. At
this level, the person seeks challenging work assignments that allow for creativity
and opportunities for personal growth and advancement.
This need is for soul searching and is inner-oriented. A self-actualized
person is creative, independent, content, and spontaneous and has a good
perception of reality. He is constantly striving to realize his full potential. Thus,
‘what a man ‘can’ be, ‘must’ be’.
Maslow’s model is a general model in which all needs interact with each
other to some degree. Needs are not necessarily linear, nor is the order of needs
so rigid. The relative dominance of many needs is variable and is continuously
shifting. For example, a self-actualized person may shift his priority to social
needs and love needs instead of prestige and status, if suddenly there occurs a
vacuum due to loss of a loved one. Similarly, a person may not go to the higher
need, even when his lower needs are satisfied. It is also likely that a well-prepared
elite person may decide to enter a commune where there is overwhelming
emphasis on love and affection rather than climb the corporate ladder.

Maslow’s theory made management aware that people are motivated by

a wide variety of needs and that management must provide an opportunity for
the employees to satisfy these needs through creating a physical and conceptual
work environment, so that people are motivated to do their best to achieve
organizational goals.
The first level needs in the hierarchy, the physiological needs can be
satisfied through such organizational efforts and incentives as adequate wages
and salary, acceptable working conditions in order to improve comfort, and avoid
fatigue, more leisure time and acceptable work environment in terms of lighting,
ventilation, rest rooms, working space, heat and noise level. Some bonuses
and other fringe benefits will be highly motivational.
The second level needs of safety and security can be satisfied through
management’s initiative to provide life insurance, medical insurance, job security,
cost of living increments, pension plans, freedom to unionize, and employee
protection against automation. The economic security to some degree is provided
by law in the form of minimum wages, unemployment benefits, and welfare
benefits. Similarly, unions protect employees against discrimination and
indiscriminate firing.
Since first level physiological needs and second level security needs are
primarily met by business, industrial, societal and legal environment,
management must take steps to satisfy higher level needs and must establish
as to which of these needs are the stronger sources of motivation.
When the third level needs of love and affiliation become motivators, then
people find an opportunity in their work environment for establishing friendly
interpersonal relationships. The management can satisfy these needs by:
• Providing opportunities for employees to interact socially with each other
through coffee breaks, lunch facilities and recreational activities such as
organized sports programmes, company picnics and other social get
togethers.
• Creating team spirit by keeping work groups informal wherever possible
with friendly and supportive supervision.
• Conducting periodic meetings with all subordinates to discuss matters
pertaining to personal achievements and contributions as well as
organizational developements.
The fourth level needs of self-esteem involve a feeling of satisfaction and
achievement and recognition for such achievement. The management can take
the following steps to satisfy these needs:

• Design more challenging tasks and provide positive feedback on

performance of employees.
• Give recognition and encouragement for performance and contribution
and delegate additional authority to subordinates.
• Involve subordinates in goal setting and decision-making processes.
• Provide adequate training and executive development programmes to help
employees successfully accomplish their goals and increase their
competency on their jobs.
• Provide some of the symbols for status and respect, such as executive
level job title, private secretary, privileged parking, promotion, company
car, stock options and write-ups about achievements in the company
newsletters.
The fifth and top-level needs of self-actualization demand growth and
creativity and the management can take the following steps to satisfy these
needs.
• The employees should be given an opportunity to shape their own jobs.
• Give employees the freedom of expression. This will open the channels
of communications further and give the employees an opportunity to get
involved.
• Encourage and develop creativity among employees. Creativity is tied in
with freedom of expression and freedom of movement.
Maslow believed that from the point of organizational behaviour, the
management should strive to create an organizational hierarchy. Research has
established that top managers generally are more able to satisfy their higher
level needs than lower level managers who have more routine jobs. Blue collar
workers who have very little freedom over job operations may not even experience
the higher level need.
10.3.3 Existence, Relatedness and Growth (ERG) Need Theory

The ERG need theory, developed by Clayton Alderfer, is a refinement of Maslow’s
needs hierarchy. Instead of Maslow’s five needs, ERG theory condenses these
five needs into three needs. These three needs are those of Existence,
Relatedness and Growth. The E, R and G are the initials for these needs.
Existence needs
These needs are roughly comparable to the physiological and safety needs of
Maslow’s model and are satisfied primarily by material incentives. They include

all physiological needs of Maslow’s model and such safety needs that are satisfied
by financial and physical conditions rather than interpersonal relations. These
include the needs for sustenance, shelter and physical and psychological safety
from threats to people’s existence and well-being.
Relatedness needs
Relatedness needs roughly correspond to social and esteem needs in Maslow’s
hierarchy. These needs are satisfied by personal relationships and social
interaction with others. It involves open communication and honest exchange of
thoughts and feelings with other organizational members.
Growth needs
These are the needs to develop and grow and reach the full potential that a
person is capable of reaching. They are similar to Maslow’s self-actualization
needs. These needs are fulfilled by strong personal involvement in the
organizational environment and by accepting new opportunities and challenges.
A rough similarity between ERG theory and Maslow’s theory is as follows:
ERG theory differs from Maslow’s theory in proposing that people may be
motivated by more than one kind of need at the same time. While Maslow
proposes that in the hierarchy of needs, a person will satisfy the lower level
needs before he moves up to the next level of needs and will stay at these
needs until they are satisfied, ERG theory suggests that if a person is frustrated
in satisfying his needs at a given level, he will move back to the lower level
needs. For example, assume that a manager’s existence needs are fully satisfied
and he looks for more challenging tasks to satisfy his self-esteem needs. If his
efforts are frustrated in meeting these challenges, he will move back to existence
needs and may ask for more material benefits.
Maslow ERG
Self-actualization
Growth
Self-esteem (upper level)
Self-esteem (lower level)

Relatedness
Social
Safety
Existence
Physiological
Figure 10.4 Components of Maslow’s Theory and ERG Theory

10.3.4 McClelland’s Theory of Needs

Since the lower level needs in Maslow’s model are generally satisfied by the
business, societal and legal systems, they are no longer strong motivators.
Studies conducted by Harvard psychologist David McClelland concluded that
from the organizational behaviour point of view, the most prominent need is the
‘achievement motive’ and affiliation. The primary motive is the ‘achievement
motive’ and is defined as a ‘desire to succeed in competitive situations based
upon an established or perceived standard of excellence.’
Individuals with a strong ‘need for achievement’ (known as n Ach), ask for,
accept and perform well in challenging tasks, that require creativity, ingenuity
and hard work. They are constantly preoccupied with a desire for improvement
and look for situations in which successful outcomes are directly correlated
with their efforts so that they can claim credit for success. They take moderate
and calculated risks and prefer to get quick and precise feedback on their
performance. They set more difficult but achievable goals for themselves
because success with easily achievable goals hardly provides a sense of
achievement. They desire greater pleasure and excitement from solving a
complex problem than from financial incentives or simple praise.
The ‘need for power’ (n Pow) is the desire to affect and control the behaviour
of other people and to manipulate the surroundings. Power motivation, when
applied positively, results in successful mangers and leaders who prefer
democratic style of leadership. Power motivation, applied negatively, tends to
create arrogant autocratic leadership. The individuals who are high in ‘n Pow’
are described by Litwin and Stringer as follows.
‘They usually attempt to influence others directly—by making suggestions,
by giving their opinions and evaluations and by trying to talk others into
things. They seek positions at leadership in group activities, whether
they become leaders or are seen only as ‘dominating individuals’ depends
on other attributes such as ability and sociability. They are usually verbally
fluent, often talkative, sometimes argumentative.’
These individuals tend to be superior performers and show high degree of
loyalty to the organization. They are more mature, with a strong sense of justice
and equity and are willing to sacrifice their own self interests for the sake of
organizational interests.
The ‘need for affiliation’ (n Aff) is related to social needs and reflects a
desire for friendly and warm relationships with others. Individuals tend to seek
affiliation with others who have similar beliefs, backgrounds and outlook on life.
This results in the formation of informal groups and informal organizations. It is

evident in social circles also that people mix with people of their own kind.
Individuals with high ‘n Aff’ tend to get involved in jobs that require a high amount
of interpersonal contacts and relations such as jobs in teaching and public
relations. From organizational behaviour point of view, these individuals are highly
motivated to perform better in situations where personal support and approval
are tied to performance. They tend to avoid conflict and exhibit strong conformity
to the wishes of their friends.
Activity 1
Find out the problems with the Maslow model of motivation when real-life
working practice is considered.

(a) The top two sets of needs in Maslow’s Model of motivation are termed
——— needs.
(b) ERG refers to existence, ———— and growth.
(a) ERG theory suggests that if a person is frustrated in satisfying his
needs at a given level, he will move back to the higher level needs.
(b) Individuals with a strong ‘need for achievement’ set more difficult but
achievable goals for themselves because success with easily
achievable goals hardly provides a sense of achievement.
10.4 Two-Factor Model and its Interpretation
Frederick Herzberg and his associates developed the two-factor theory in the
late 1950s and early 1960s. As part of a study of job satisfaction, Herzberg and
his colleagues conducted in-depth interviews with over 200 engineers and
accountants in the Pittsburgh area. The researchers felt that a person’s relation
to his work is a basic one and that his attitude towards work would determine
his organization-related behaviour. The respondents were required to describe
in detail the type of environment in which they felt exceptionally good about their
jobs and the type of environment in which they felt bad about their jobs. It seems
natural to believe that people who are generally satisfied with their jobs will be

more dedicated to their work and perform it well as compared to those people
who are dissatisfied with their jobs. If the logic seems justified, then it would be
useful to isolate those factors and conditions that produce satisfaction with the
job and those factors that produce dissatisfaction.
The basic questions that were asked in the survey were the following two:
(a) What is it about your job that you like?
(b) What is it about your job that you dislike?
Based upon the answers it was concluded that there are certain
characteristics or factors that tend to be consistently related to job satisfaction
and there are other factors that are consistently related to job dissatisfaction.
Herzberg named the factors that are related to job satisfaction as motivational
factors (that are intrinsic in nature) and the factors related to job dissatisfaction
as maintenance or hygiene factors (that are extrinsic in nature). These factors
are described in detail as follows.
10.4.1 Hygiene Factors

Hygiene factors do not motivate people. They simply prevent dissatisfaction
and maintain status quo. They produce no growth but prevent loss. The absence
of these factors leads to job dissatisfaction. The elimination of dissatisfaction
does not mean satisfaction and these factors simply maintain a ‘zero level of
motivation’. For example, if a person indicated ‘low pay as a cause of
dissatisfaction, it would not necessarily identify ‘high pay’ as a cause of
satisfaction.
Some of the hygiene factors are
• Wages, salary and other types of employee benefits.
• Company policies and administration rules that govern the working
environment.
• Interpersonal relations with peers, supervisors and subordinates.
Cordial relations with all will prevent frustration and dissatisfaction.
• Working conditions and job security. The job security may be in the
form of tenure or it could be supported by a strong union.
• Supervisor’s technical competence as well as the quality of his
supervision. If the supervisor is knowledgeable about the work and
is patient with his subordinates and explains and guides them well,
the subordinates would not be dissatisfied in this respect.

All the hygiene factors are designed to avoid damage to efficiency or morale
and these are not expected to stimulate positive growth.
The word ‘hygiene’ is taken from the medical field, where it means taking
steps to maintain your health but not necessarily improve it. For example,
brushing your teeth helps prevent cavities but does not improve the condition of
your teeth. Similarly, hygiene factors in this theory of motivation prevent decay
but do not encourage growth.
Hawthorne experiments were highly conclusive in suggesting that
improvements in working conditions or increments in financial benefits do not
contribute to motivated performance. A new plant or upgraded facilities at a plant
seldom motivate workers if they do not enjoy their work and these physical facilities
are no substitute for employee feelings of recognition and achievement.
10.4.2 Motivational Factors

These factors are related to the nature of work (job content) and are intrinsic to
the job itself. These factors have a positive influence on morale, satisfaction,
efficiency and higher productivity. Some of these factors are :
• The job itself: To be motivated, people must like and enjoy their jobs.
They become highly committed to goal achievement and do not mind
working till late hours in order to do what is to be done. Their morale is
high as evidenced by lack of absenteeism and tardiness.
• Recognition: Proper recognition of an employee’s contribution by the
management is highly morale boosting. It gives the workers a feeling of
worth and self esteem. It is human nature to be happy when appreciated.
Thus such recognition is highly motivational.
• Achievement: A goal achievement gives a great feeling of
accomplishment. The goal must be challenging, requiring initiative and
creativity. An assembly line worker finishing his routine work hardly gets
the feeling of achievement. The opportunities must exist for meaningful
achievement; otherwise, workers become sensitized to the environment
and begin to find faults with it.
• Responsibility: It is an obligation on the part of the employee to carry out
the assigned duties satisfactorily. The higher the level of these duties, the
more responsible the worker would feel and more motivated he would be.
It is a good feeling to know that you are considered a person of integrity
and intelligence to be given a higher responsibility. It is a motivational factor
that helps growth.

• Growth and advancement: These factors are all interrelated and are
positively related to motivation. Job promotions, higher responsibility,
participation in central decision-making and executive benefits are all signs
of growth and advancement and add to dedication and commitment of
employees.
Herzberg’s two-factor model is tied in with Maslow’s basic model in that
Maslow is helpful in identifying needs and Herzerg provides us with directions
and incentives that tend to satisfy these needs. Also the hygiene factors in
Harzberg’s model satisfy the first three levels of Maslow’s model of physiological
needs, i.e., security, safety and social needs and the motivational factors satisfy
the two higher level needs of esteem and self-actualization.
Figure 10.5 Two-Factor Model of Herzberg
Criticism
Some researchers do not agree with Herzberg’s model as being conclusive,
since the results were based primarily on the responses of white collar workers
(accountants and engineers) and do not necessarily reflect the blue collar
workers’ opinion who may consider hygiene factors as motivational factors. Some
studies have found that the effects of hygiene factors and motivational factors
are totally reversed on some people. They are highly motivated by financial
rewards, organized supervision, well-defined work rules, pleasant working
environment and positive employee interaction and do not give much importance
to achievement and self-actualization.
Another criticism about Herzberg’s two-factor theory dwells upon the
method of research and data collection. The theory was developed on the basis
of ‘critical incident’ method. According to this method, the respondents were
asked to indicate particular incidents that they felt were associated with their
satisfaction or dissatisfaction with jobs. This means that the theory is ‘method
bound’ and studies that use other methods for measuring satisfaction and
dissatisfaction fail to support the validity of Herzberg’s theory.

Furthermore, the theory does not take into consideration individual

differences in values and outlook as well as the individual’s age and organizational
level.
However, this theory has contributed to one management programme that
has lent itself to the enhancement of motivators. It provides valuable guidelines
for structuring the jobs in order to include within the job content such factors that
bring about satisfaction.

(a) ———— developed the two-factor theory of motivation.
(b) Herzberg named the factors that are related to ——— as motivational
factors.
(a) Hygiene factors simply maintain a ‘zero level of motivation’.
(b) Herzberg’s Two-Factor Theory takes into consideration individual
differences in values and outlook
10.5 Goal-Setting Theory
Goal-setting Theory is a relatively applied approach to motivation and is based

upon the assumption that the type as well as the challenge of the goal induces
motivation in the individual to achieve it. The theory as proposed by Edwin Locke
studies the processes by which people set goals for themselves and then put in
efforts in order to achieve them. The quality of performance is generally shaped
by how difficult and how specifically defined the goal is. General goals such as
‘do your best’ do not lend themselves to accurate performance appraisal and
proportionate rewards. Specific goals are clear and tend to give a clear direction
to the worker, resulting in improved performance. Similarly, difficult goals, once
accepted, lead to higher performance.

Figure 10.6 Locke’s Model of Goal-Setting
• Goal specificity: A specific goal identifies the target in quantitative terms.

This would enable the worker to evaluate his performance and judge as to
how he is doing relative to the goal. For example, if a worker is producing
50 units a day, that is the average output, he may set his goal at 60 units
a day to be achieved within 7 days. The worker can evaluate his output
each day and decide whether he is adequately moving towards that goal.
Meeting a goal provides the worker with a sense of achievement, pride
and personal satisfaction. General goals, such as ‘we will produce as
much as possible’, has little effect on motivation. Specific goals reduce
ambiguity and the worker has very clear idea as to what is expected of
him.
• Goal difficulty: Difficult but feasible goals provide more challenge than
easy goals. Reaching an easy target is not competitive and hence hardly
exciting. This is particularly true for high need achievers. Goal commitment
is independent of whether the goal is set by the worker himself or is
assigned by superiors, but depends upon expectations of success and
degree of success. Commitment would also depend upon previous reward
for goal achievement.
The most important element of goal setting theory is the acceptance of
goal by the workers. Of course, the best way to have the goal accepted by
workers is to let them set their own goals within the general organizational
guidelines. A goal that one establishes for himself becomes an integral part of
him. An example is a person’s career objective. A person with self set goals is
more likely to strive harder to achieve them.
Assigned goals are equally acceptable if these goals are consistent with
personal aspirations of workers. Acceptance becomes easier if the workers are
encouraged to participate in the goal setting process. Goal acceptance can
also be facilitated if the management demonstrates a supportive attitude towards
subordinates regarding goal achievement.

There is evidence that goal setting, as outlined, improves performance

about 90 per cent of the time, and that comparatively high achievers set
comparatively more difficult goals and are much more satisfied with intrinsic
rewards rather than extrinsic rewards.
Activity 2
Find out the mechanisms through which goal setting can affect individual
performance in business.

(a) ———— is based upon the assumption that the type as well as the
challenge of the goal induces motivation in the individual to achieve
it.
(b) Goal-setting theory was proposed by ————.
(c) The most important element of goal setting theory is the ——— of
goal by the workers.
10.6 Expectancy Theories
The two important expectancy theories of motivation are Vroom’s Theory (model)
and Porter–Lawler Theory (model).
10.6.1 Vroom’s Theory (Model)

The expectancy model is based upon the belief that motivation is determined by
the nature of the reward people expect to get as a result of their job performance.
The underlying assumption is that a man is a rational being and will try to maximize
his perceived value of such rewards. He will choose an alternative that would
give him the most benefit. People are highly motivated if they believe that a
certain type of behaviour will lead to a certain type of outcome and their extent of
personal preference for that type of outcome.
There are three important elements in the model. These are as follows:
1. Expectancy: This is a person’s perception of the likelihood that a
particular outcome will result from a particular behaviour or action.

This likelihood is probabilistic in nature and describes the relationship

between an act and its outcome. For example, if a student works
hard during the semester, he will expect to do well in the final
examination. It is not 100 per cent definite that he will indeed do well
in the examination. There is some probability attached to this
outcome. Similarly, if a person works hard, he may expect to perform
better and increase productivity. For example, a worker works hard
and is absolutely certain (expectancy = 1.0) that he can produce an
average of 15 units a day and 60 per cent certain (expectancy = 0.6)
that he can produce a high of 20 units per day. This expectation of
outcome is known as ‘first level’ outcome.
2. Instrumentality: This factor relates to a person’s belief and
expectation that his performance will lead to a particular desired
reward. It is the degree of association of first level outcome of a
particular effort to the second level outcome—that is the ultimate
reward. For example, working hard may lead to better performance—
which is the first level outcome, and it may result in a reward such
as salary increase or promotion or both—which is the second level
outcome. If a person believes that his high performance will not be
recognized or lead to expected and desired rewards, he will not be
motivated to work hard for better output. Similarly, a professor may
work hard to improve upon his techniques of teaching and
communication (first level outcome) in order to get promotion and
tenure (second level outcome). Accordingly, instrumentality is the
performance-reward relationship.
3. Valence: Valence is the value a person assigns to his desired reward.
He may not be willing to work hard to improve performance if the
reward for such improved performance is not what he desires. It is
not the actual value of the reward but the perceptual value of the
reward in the mind of the worker that is important. A person may be
motivated to work hard not to get a pay raise but to get recognition
and status. Another person may be more interested in job security
than status.
Thus, according to the Vroom model of motivation, a person’s level of
effort (motivation) depends upon the following:
• Expectancy: A worker must be confident that his efforts will result in
better productivity and that he has the ability to perform the task well.

• Instrumentality: The worker must be confident that such high

performance will be instrumental in getting desired rewards.
• Valence: The worker must value these rewards as desired and
satisfactory. Hence motivation is related to all these three factors as:
Motivational Force (M) = Expectancy (E) × Instrumentality (I)
× Valence (V)
or M = (E × I × V)
As the relationship suggests, the motivational force will be the highest
when expectancy, instrumentality and valence are all high and the motivational
value is greatly reduced when any one or more of expectancy, instrumentality or
valence approaches the value of zero.
The Vroom model can be graphically depicted as follows:
Second level
outcome
First level Reward

outcome Instrumentality 1
Outcome Reward
Expectancy 1 2
Reward
Motivational 3
force
Outcome Reward
2 1
Reward
2
Reward
3
Figure 10.7 Expectancy Model of Vroom
The management must recognize and determine the situation as it exists

and take steps to improve upon these three factors of expectancy, instrumentality
and valence for the purpose of behavioural modification so that these three
elements achieve the highest value individually. For example, if a worker exhibits
a poorly motivated behaviour, it could be due to:

• Low effort-performance expectancy: The worker may lack the

necessary skills and training in order to improve the relationship
between effort and performance.
• Low performance-reward instrumentality relationship: The
worker may believe that similar performance does not lead to similar
rewards. The reward policy may be inconsistent and may depend
upon factors other than simply the performance, about which the
worker may be aware of or may not consider fair. For example, a
professor may do research and have professional articles published
in order to get a promotion and may find out later that more weight
was given to community service rather than research at the time of
promotion. Accordingly, the performance appraisal methods and the
associated performance rewards may not be equitable. Management
must re-evaluate the appraisal techniques and formulate policies that
strengthen performance reward relationship in a consistent, fair and
equitable manner.
• Low reward-valence relationship: Since the mangers may look
at the value of a reward differently than the worker, the management
must investigate the desirability of the rewards that are given on the
basis of performance. While monetary benefits may be more
desirable for some workers, the need to be formally appreciated may
be a more valuable reward for others for similar task oriented activities.
Vroom’s model tries to explain as to what factors affect a person’s choice
of a particular course of action among all available alternatives and why a person
would be better motivated towards achievement of certain goals as compared
to some other goals. Accordingly, managers must understand and analyse the
preferences of particular subordinates in order to design ‘individualized
motivational packages’ to meet their needs, keeping in mind that all such
packages should be perceived as generally fair by all concerned parties.
10.6.2 Porter–Lawler Model

The Porter–Lawler model was developed by Lyman W. Porter and Edward E.
Lawler as a complete version of motivation depending upon the expectancy
theory. This model says that the levels of motivation are based more on the
value that individuals place on the reward. The following figure shows the Porter–
Lawler model.

Value of rewards Satisfaction
Perceived
Ability to do Equitable
specific task rewards
Intrinsic
Performance rewards
Effort
Accomplishment
Extrinsic
rewards
Perception of task
required
Perceived effort reward

probability
Figure 10.8 Porter-Lawler Model
The actual performance in a job is mainly determined by the effort spent

by an individual to perform a particular job. It is also affected by the ability of an
individual to do the job and also by perception that an individual has about the
required task. Therefore, performance is the responsible factor that leads to
intrinsic as well as extrinsic rewards. Hence, satisfaction of the individual
depends upon the fairness of the reward.
The Porter–Lawler model is based on the Vroom’s model but it is more
complex in a number of ways. According to this model, increased effort does
not automatically lead to improved performance because individuals may not
possess the necessary abilities needed to achieve high levels of performance.
It is also because they may have an inadequate or wrong perception of how to
perform the necessary tasks. Individuals may exert considerably without
understanding how to direct effort effectively. This does not lead him to good
performance but rather gives less output than expected.

(a) The Expectancy Model is based upon the belief that motivation is
determined by the nature of the punishment people expect to get as
a result of their job performance.
(b) According to the Vroom model of motivation, a person’s level of effort
(motivation) depends only upon instrumentality.
(c) The Porter–Lawler model is more complex than the Vroom model in
a number of ways.

10.7 Summary

• Motivation may be defined as a dynamic force which is capable of inspiring
people for performing some actions or motions.
• The different motivational sources include positive and negative
motivational sources and extrinsic and intrinsic motivational sources.
These have been researched by the different organizational scientists
and researchers.
• Positive motivation generally involves driving motivation levels using positive
forces. In negative motivation, a superior or management generally makes
use of authority, power, fear or force, etc. in order to invoke desired actions
from the subordinates working under them.
• The extrinsic motivation approach is based on the theory that the behaviour
of an individual when results in a positive financial reward will most of the
times be repeated and a continuous pattern of desired behavior is expected
to result.
• Intrinsic motivation is generally related with the feelings that the individual
gets for himself when he achieves something substantial.
• Primarily two types of theories of motivation have been described. These
are ‘content theories’ that attempt to determine and specify drives and
needs that motivate people to work, and the ‘process theories’ that evaluate
the different factors that are responsible for motivating an individual and
the relationship between different factors.
• Different motivational theories include Douglas McGregor’s Theory X and
Theory Y, Abraham Maslow’s Model of Heirarchy of Needs, McClelland’s
Theory of Needs, Goal-Setting Theory, Herzberg’s Two-Factor Theory and
Victor Vroom’s Expectancy Model.
• Douglas McGregor gave the Theory X and Theory Y of motivation.
According to this theory, two types of assumptions related to two different
groups of individuals have been defined. Through this theory, it could be
established that compared to Theory X, Theory Y had a greater potential
to develop positive relationships and also to motivate the employee
performance.
• Abraham Maslow gave the ‘Needs Hierarchy Theory’ of motivation.
According to this theory, different levels of needs have been described for
a human being. These are physiological needs, security needs, social
needs, self-esteem needs and self-actualization needs. According to this

theory or model, it is extremely important that the lower level needs are
fulfilled in the individual first and then going ahead with the higher level
needs becomes more important.
• The ERG theory, developed by Clayton Alderfer, condenses Maslow’s five
needs into three needs— Existence, Relatedness and Growth.
• According to McClelland’s Theory of Needs, from the organizational
behaviour point of view, the most prominent need is the ‘achievement
motive’ and affiliation.
• The Goal-Setting Theory is based upon the assumption that the type as
well as the challenge of the goal induces motivation in the individual to
achieve it.
• According to the Herzberg’s Two-Factor Theory, the two types of factors
that motivate individuals are hygiene factors or maintenance factors and
motivational factors.
• There are three important elements in the Victor Vroom’s Expectancy
Model. These are expectancy, instrumentality and valence.
• The Porter–Lawler model says that the levels of motivation are based
more on the value that individuals place on the reward.
10.8 Glossary
• Force of motivation: A dynamic force setting a person into motion or

action. It represents an unsatisfied need that creates a state of tension or
disequilibrium, causing the individual to move in a goal-directed pattern
towards restoring a state of equilibrium, by satisfying the need.
• Intrinsic motivation: A motivation which stems from feelings of
achievement and accomplishment and is concerned with the state of self-
actualization in which the satisfaction of accomplishing something
worthwhile motivates the employee further so that this motivation is self-
generated and is independent of financial rewards
• Extrinsic motivation: A motivation which is particularly induced by the
different external factors, especially the ones which are financial in nature.
• Goal specificity: A term that refers to a target in quantitative terms
• Hygiene factors: Factors which are expected to prevent further loss to
the organization but are not expected to promote any growth in the
organization

• Self-respect: A feeling of internal recognition

• Self-actualization: Development and complete realization of one’s
potential and capacities to the fullest
• Achievement motive: A desire to succeed in competitive situations based
upon an established or perceived standard of excellence
• Instrumentality: A factor that relates to a person’s belief and expectation
that his performance will lead to a particular desired reward
• Valence: The value a person assigns to his desired reward
1. Describe the various sources of motivation. Which source do you think is

the most suitable in free economic society as ours and why?
2. Discuss what the management of an enterprise can do to satisfy the
various level needs of workers as shown in Maslow’s model.
3. Differentiate between the need theories of Maslow and the ERG theory
developed by Clayton Alderfer.
4. Explain the two-factor theory of motivation as developed by Fredrick
Herzberg and his associates.
5. Describe in detail Vroom’s Expectancy Model of motivation. How are the
various factors in the model related to each other? What happens to
motivation if one of these factors does not exist?
6. Highlight the main features of the Porter–Lawler Model of motivation.
10.10 Answers
1. (a) Motivation; (b) Extrinsic motivation

3. (a) Growth; (b) Relatedness
4. (a) False; (b)True
5. (a) Fredrick Herzberg; (b) Job satisfaction

6. (a)True; (b) False

7. (a) Goal-setting theory; (b) Edwin Locke; (c) Acceptance
8. (a) False; (b) False; (c) True



Unit 11 Organizational Behaviour and
Performance Appraisals
Structure
11.1 Introduction
Objectives
11.2 Organizational Behaviour and Performance Appraisals
11.3 Appraisal Interviews
11.4 Suggested Approaches of Performance Appraisal
11.5 Reward
11.6 Organizational Rewards: Recognition and Benefits
11.7 Balancing Personal and Professional Lives
11.8 Sexual Harassment and Discrimination
11.9 Summary
11.10 Glossary
11.12 Answers
11.1 Introduction
In the previous unit, you have read about the meaning of motivation. In an
organizational set-up, motivation often comprises performance appraisals and
recognition of an individual’s contribution at the workplace. In this unit, you will
read about these very elements. You will learn that performance appraisal and
organizational behaviour are interrelated and often the former is based upon the
latter.
With jobs becoming more and more demanding, pay packets getting
heavier and competition getting tougher—both within and outside the
organization—performance appraisal is getting to be a more complex task than
ever before. Modern corporates are reconsidering the traditional methods of
appraising performance and conducting appraisal interviews.
This unit discusses topics such as the appraisal interview, effectiveness
of pay, pay for performance, new pay techniques and recognition as an
organizational reward. It offers insights on sensitive topics such as dependent
care, sexual harassment, workplace discrimination, drug abuse, AIDS and
alcoholism. In addition, the unit discusses the significance of creating an

organizational climate to facilitate balancing of personal and professional lives.
Objectives
• Describe organizational behaviour and performance appraisals
• Assess the utility and significance of appraisal interviews, money as reward
and new pay techniques
• Recognize that recognition and benefits could be used as the methods of
organizational rewards
• Learn how to create organizational climate for balancing personal and
professional lives
• Define and explain the meanings of dependent care, sexual harassment
and workplace discrimination
• Recommend remedies for drug abuse, AIDS and alcoholism
11.2 Organizational Behaviour and Performance Appraisals
Unless employee behaviour and attitudes are supportive and contributive,

organizations cannot achieve their goals. If a company emphasizes customer
service, its employee behaviour should contribute to that goal.
In the past, organizations and human resources departments focussed
on performance appraisals rather than on performance management. What is
performance appraisal?
Performance appraisal can be defined as the (usually) annual formal
assessment and rating of individuals by their managers.
It is a review activity done periodically and aimed at judging performance.
Table 11.1 lists the differences between performance appraisal and performance
management as summed up by Armstrong and Baron.

Table 11.1 Performance Appraisal vs. Performance Management

Performance appraisal Performance management
Top -down assessment Joint process through dialogue
Annual appraisal meeting Continuous review with one or more formal
reviews
Use of ratings Ratings less common
Monolithic system Flexible process
Focus on quantified objectives Focus on values and behaviour as well as
objectives
Often linked to pay Less likely to have a direct link to pay
Bureaucratic, complex Documentation kept to a minimum
paperwork
Owned by the HR department Owned by line managers
Source: Armstrong, M. and A. Baron. Performance Management: The New Realities

(London: Institute of Personnel and Development, 1998).
11.2.1 Appraisal Philosophy

The modern performance management system of any organization is an
integrated process having linkages with every subsystem of human resource
management (HRM). The definition of performance management system is
much more than the traditional appraisal system. It starts with job definition and
ends when a person resigns from an organization. Between these points, the
following must be done for an effective/working performance management
system:
• Develop clear job descriptions. This helps employees understand their
responsibilities.
• Select appropriate people with an appropriate selection process.
This process can help match the requirements of organizations with the
skill sets of employees.
• Establish a performance management plan. Organizations and
employees should negotiate requirements and accomplishment-based
performance standards, outcomes and measures for the benefit of both
parties. Lack of clarity norms the individual and the organization; hence,
performance parameters should be clear.

A person must be provided all the relevant information and training before
s/he starts on the job. S/he must also have a good understanding of the
company’s products and resources.
• Provide effective orientation, education and training. Before a person
can start on a job, he/she must have the necessary information to perform
it. This includes job-related, position-related and company-related
information; a sound understanding of product and process use and
requirements; and complete knowledge of customer needs and
requirements.
• Provide ongoing coaching and feedback. People need constant
feedback that addresses both the strengths and weaknesses in their
performance. Feedback is a two-way process that provides guidance to
an employee to improve his/her performance. It is more effective when
the employee seeks it. Organizations should ensure an environment in
which people can ask how they are performing.
• Conduct quarterly performance development discussions. Regular
feedback, coaching and performance reviews can help make these
reviews participative. Also, quarterly reviews will help employees know
how they are performing.
• Design effective compensation and recognition systems that reward
people for their contributions. It is often not really the money that
matters, but just the recognition of an individual’s contribution to the
company. Money is form of value.
• Provide promotional/career development opportunities for staff.
Challenging assignments, growth goals and cross-training go a long way
in the development of employees.
• Assist with exit interviews to understand why valued employees
leave the organization. When an important person leaves the company,
it is important to understand the reason for leaving. This feedback will
help to improve the company’s work environment and also help to retain
other valued employees. However, management will not learn anything
new in an exit interview if discussions and feedback are already part of
the system.
Thus, the modern performance-oriented HRM helps establish uniform
standards for evaluating employees, tells top performers that they are valued,
encourages communication between managers and their employees and helps

the organization identify its strongest and weakest performers. It replaces the
control-oriented HRM with a strategic, team-oriented performance management
system.
A performance management system serves the purpose by the following
initiatives:
• Defining the kinds of behaviour that contribute to good customer
service
• Measuring whether employees are engaging in that behaviour
• Giving feedback that helps employees improve in those areas
Administrative purpose
Administrative decisions include day-to-day decisions about salary, benefits and
recognition programmes. Performance management can support decision
making in these areas. It can also support in cases of employee retention and
termination for poor behaviour.
Developmental purpose
A key area of HRM is developing employees’ knowledge and skills. Effective
performance feedback makes employees aware of their strengths and of the
areas in which they can improve. Even employees who are meeting expectations
can become more valuable when they hear and discuss performance feedback.
Activity 1
List the behavioural traits that creates an effective customer service team.

(a) ________ decisions include day-to-day decisions about salary,
benefits and recognition programmes.
(b) A key area of HRM is developing ________ knowledge and skills.
(a) The modern performance management system of any organization
is an integrated process having linkages with every subsystem of
human resource management (HRM).

(b) The modern performance-oriented HRM helps establish uniform

standards for evaluating employees, tells top performers that they
are valued, encourages communication between managers and their
employees and helps the organization identify its strongest and
weakest performers.
11.3 Appraisal Interviews
It is important to understand that appraisal interviews are not fault-finding

exercises. Appraisal interviews that are used or are perceived as being there
simply to generate ratings for performance will almost inevitably fail to achieve.
Appraisal interviews are not backward-looking but forward-looking. They should
be used as a means to improve performance and ought to serve multiple
objectives and be conducted periodically.
11.3.1 Objectives of Appraisal Meetings

Appraisal meetings are important vehicles for communication between employee
and supervisor. They are means for controlling and planning performance.
Performance review meetings serve objectives like reviewing progress,
motivating and developing people and planning future courses of action.
• To review performance – To identify the progress made by an employee
against the objectives, standards and performance indicators and provide
feedback.
• To motivate employees – To provide positive feedback, praise and
opportunities for growth; to clarify expectations; and to empower people
by encouraging them to take control of their performance.
• To facilitate learning and development – To provide a basis for self-
managed learning and development through coaching and other learning
activities.
• To improve performance plans – To provide a basis for reformulating
the performance agreement and the performance and development plans
incorporated in it.
• To communicate – To serve as a two-way channel of communication
about roles, expectations (objectives and competence requirements),
relationships, work problems and aspirations.

11.3.2 Frequency of Review

Reviews can be formal or informal. It can be argued that formal reviews are
unnecessary and that it is normal good management practice to conduct informal
reviews. Such informal reviews are valuable as they encourage free exchange
of information between supervisor and employee. Also informal reviews can be
carried out as and when required.
Formal reviews can be conducted quarterly, half-yearly or yearly. They
provide a firm foundation for a new performance agreement and a framework
for reviewing performance informally whenever appropriate. They help sum up
the conclusions reached at earlier informal and formal reviews.
Performance and development planning (PDP) meetings should be held
every quarter to study how the staff are progressing with respect to the overall
goals and objectives. The progress on action plans should be reviewed every
week in a one-on-one meeting. This weekly meeting enables supervisors to
assist and identify any help or tools that the staff may need to succeed.
11.3.3 Conducting Appraisal Interview

To make the meetings successful, both the supervisor and employee should do
enough preparation.
(i) Supervisor
• Schedules the review meeting
• Collects work records, reports and other inputs for the review
(ii) Employee
• Analyses personal performance, documents it comments and
gathers the required documentation, including 360-degree feedback
results, when available
• Prepares psychologically to discuss the positive and negative aspects
of performance
During these meetings, the supervisor takes an active role to facilitate
discussion. Some important aspects of meetings include the following:
• Rapport: The supervisor establishes a comfortable ambience and
chats for a few minutes to make the person comfortable. The two
discuss and agree upon a plan to enhance performance.
• Presentation by staff: The employee is given a chance to discuss
his/her achievements and progress during this period. The employee
also identifies the means to improve his professional performance.

• Discussion: On his part, the supervisor discusses the employee’s

quarterly performance and suggests ways in which to improve
himself. The supervisor offers guidance to the employee on how to
develop and improve professionally.
• Performance agreement: The two discuss the areas of agreement
and disagreement, and reach a consensus. If the employee’s
performance is satisfactory, the supervisor draws up a personal and
professional development plan which will help in professional growth.
If it is not satisfactory, the supervisor develops a written Performance
Improvement Plan (PIP) and ensures there are more frequent
feedback meetings. He also reminds the employee of the possible
consequences if his performance continues to be unsatisfactory.
• Support measures: The supervisor and the employee discuss the
latter’s feedback and constructive suggestions for the supervisor
and the department. The two discuss other topics of mutual concern
while maintaining the positive and constructive environment
established thus far, during the meeting.
• Record: The two mutually sign the Performance Development
Planning document to indicate that a discussion has taken place.
• Friendly close: They meeting ends in a positive and supportive
manner. The supervisor expresses confidence that the employee
can accomplish the plan and assures that he is available for support
and assistance.
• Follow up: The two decide upon a time-frame for formal follow up,
generally quarterly. If a PIP was necessary, then follow-up is
scheduled at the designated times. Follow-up with performance
feedback and discussions is conducted regularly throughout the
quarter. The supervisor needs to keep commitments that were agreed
upon in the personal and professional development plan, including
time needed away from the job, payment for courses, agreed-upon
assignments and so on. The supervisor needs to act on the feedback
provided by departmental members and let staff members know what
has changed, based upon their feedback.
• Documentation: The supervisor forwards appropriate
documentation to the Human Resources office and retains a copy of
the plan for easy access and referral.

11.3.4 Problems in Appraisal Interviews

The assumption that there are no problems during meetings has resulted in
neglecting to provide adequate guidance and training to reviewing managers
and, more importantly, to those whom they review. In general, the following
problems crop up in appraisal interviews:
1. Relationship between the manager and the individual: Unless there
is mutual trust and understanding between both parties that the
performance review is a valuable and positive exercise, the meeting will
not be purposeful.
2. Skills of the supervisor: If the supervisor is not trained in good
communication skills, the meeting will be less effective.
3. Meeting procedure: If the agenda, the supporting documents and
schedules are not clear, the meeting will be purposeless.
4. Improper balance on issues: Performance review has to do a balancing
act. There are two issues in performance review meetings: first, on the
emphasis that should be placed on performance improvement as distinct
from broader developmental needs, and second, on the degree to which
the meeting should be forward-looking rather than backward-looking.
5. Lack of clarity and bias in discussions: The following difficulties arise
in the process of performance reviews:
• The identification of performance measures and criteria for evaluating
performance
• The collection of factual evidence about performance
• The existence of bias on the part of managers
• The resolution of conflict between reviewers and the people they
review
• The defensive behaviour exhibited by individuals in response to
criticism
6. Improper focus on outcomes: Many performance management and
review systems focus almost exclusively on the upper and lower extremes
of the performance distribution, neglecting the core or middle-of-the-road
performers on whom the organization relies to function effectively in its
day-to-day operations and to sustain itself in the future. Therefore, the
majority of employees who are in the middle of the performance distribution
should be given equal if not more attention.

11.3.5 Why Self-Assessment?

Self-assessment is a process in which individuals use a structured approach to
review their own performance which forms the basis for discussions with their
managers during review meetings. Traditionally, it is the supervisor who makes
the assessment. But in a performance management system, self-assessment
is considered important because of the following reasons:
• Effective controls are self-controls, so self-assessment is encouraged.
• It demonstrates the view that an employee and his views are important.
• It reduces defensiveness by allowing individuals to take the lead in reviewing
their own performance rather than having their manager’s judgements
thrust upon them.
• It helps to generate a more positive and constructive discussion during
the review meeting, which can focus on joint problem-solving rather than
attaching blame.
• It encourages people to think about their own development needs and
how they can improve their performance.
• It provides for a more balanced assessment because it is based on the
views of both the manager and the individual rather than on those of the
manager alone.
Giving feedback
Providing feedback is an intellectual activity. It requires a balanced and positive
approach in evaluation and communication. Some useful guidelines to make
feedback effective are as follows:
• Build feedback into the job: To be effective, feedback should be built
into the job. Along with objectives or targets, specific tools for evaluating
progress like schedules (time tables and progress charts) or budgets
(estimates of revenues and expenses) may be appropriately incorporated.
• Select key issues: Managers should select key issues and restrict
themselves to these. They can use the key result areas as guides to form
their feedback.
• Collect evidence: Feedback must be backed by evidence. It should not
be based on supposition about the reason for the behaviour.
• Be specific: Managers must relate all their feedback to specific behaviour.
They should not base their feedback on general feelings or impressions.

• Describe, do not judge: Feedback should be presented as a description

of what has happened. It should not be accompanied by a judgement. If
the manager starts the meeting with supposition, it will immediately create
resistance and prejudice.
• Make helpful inquiries: Ask questions rather than make statements.
Typical questions are: ‘Why do you think this happened?’ ‘On reflection, is
there any other way in which you think you could have handled the situation?’
‘How do you think you should tackle this sort of situation in the future?’
• Focus on controllable factors: It is better to focus on aspects of
performance where the individual can improve. It is a waste of time to
concentrate on areas that the individual can do little or nothing about.
• Give it in time: Feedback should be immediate. As a norm, it should be
provided within 48 hours of the activity.
• Provide positive feedback: Provide feedback on the things that the
individual did well in addition to areas for improvement. People are more
likely to work positively at improving their performance and developing
their skills if they feel empowered by the process.

(a) ____________ that are used or are perceived as being there simply
to generate ratings for performance will almost inevitably fail to
achieve.
(b) ____________ reviews can be conducted quarterly, half-yearly or
yearly.
(a) Providing feedback is an intellectual activity.
(b) Self-assessment is a process in which individuals use a structured
approach to review their own performance which forms the basis for
discussions with their managers during review meetings.

11.4 Suggested Approaches of Performance Appraisal
Performance appraisal is the process by which an employee’s performance is

assessed against certain standards and then s/he is informed about it. Such
appraisal has also been called employee rating, employee evaluation,
performance review, performance evaluation and results appraisal.
Performance appraisal has four general uses
• Administrative: One use is to measure performance for
administrative decisions about employees. The purposes include
rewarding or otherwise, promotions or layoffs and training.
• Developmental: Another use is development of individual potential.
In this case, the manager is featured more as a counsellor than as a
judge. Emphasis is on identifying potential and planning the
employee’s growth opportunities and direction.
• Maintenance use: To carry out functions like human resource
planning and determining training needs that help in the smooth
functioning of the subsystems.
• Documentation: To record the ratings for future reference.
The appraisal process can be done by anyone who is conversant with the
performance of individual employees. These can include:
• Supervisors who rate their employees
• Employees who rate their superiors
• Team members who rate each other
• Outside sources
• Employee self-appraisal
• Multi-source (360-degree) appraisal
Supervisory rating of subordinates
It is assumed that the immediate supervisor is most qualified and competent to
realistically, objectively and fairly judge an employee’s performance. Toward this
end, some supervisors keep performance logs noting what their employees

have done. These logs provide specific examples to use when doing ratings.
They also serve to jog their memory, because supervisors cannot be expected
to remember every detail of performance over a six-month or one-year period.
Typically, the manager reviews the supervisor’s appraisal to make sure that a
proper job of appraisal has been done.
Employee rating of managers
The concept of having supervisors and managers rated by employees or group
members is being used in a number of organizations today. An example of this
type of rating takes place in colleges and universities, where students evaluate
the performance of professors in the classroom. Industry also uses employee
ratings for management development purposes.
Team/Peer ratings
Peer ratings are useful and necessary when supervisors are unable to observe
each employee’s performance, but other members of the work group are.
Self-ratings
Self-appraisal is a tool by which an individual can assess his performance,
strengths and weaknesses with the objective of improving his performance. If
an employee is working in isolation or possesses a unique skill, he may be the
only one qualified to rate himself.
Outside raters
The customer or clients of an organization are obvious sources for external
appraisals. For salespeople and other service jobs, customers can provide
feedback on certain behavioural traits.
Multi-source rating
Figure 11.1 shows graphically some of the parties who may be involved in a
360-rating. Multi-source feedback recognizes that the manager is no longer the
sole source of performance appraisal information. Instead, feedback from various
colleagues and constituencies is obtained and given to the manager, thus
allowing the manager to help shape the feedback from all sources. The manager
remains a focal point both to receive the feedback initially and to engage in
appropriate follow up, even in a 360-degree system.

Manager Customers
Co-workers/
Peers Person being Self-evaluation
appraised
Subordinates
Figure 11.1 Multi-source Appraisal
11.4.1 Process of Performance Appraisal

The process of performance appraisal starts with establishing performance
standards and ends with corrective measures to make the future performance
acceptable.
Establishing performance standards
The first step in the process of performance appraisal is to set the standards for
judging actual performance. The criteria to judge the performance of the
employees need to be set in order to assess their contribution to the
organizational goals and objectives. These standards should have clarity and
must be quantifiable.
Communicating the standards
The standards that have been set must be communicated and explained to all
the employees; thus, this will help all to understand and their roles and
responsibilities.
Measuring the actual performance
The most difficult part of the process is measuring the actual work done by the
employees during the specified period of time. It should be a continuous process,
which involves monitoring the performance throughout the year. Appropriate
techniques of measurement should be used considering that personal bias does
not affect the evaluation and provide assistance rather than interfere in an
employee’s work.

Comparing actual performance with standards

Actual performance is compared with the desired or standard performance.
The comparison shows the deviations in performance from the standard. It
includes recalling, evaluating and analysing the data related to the employees’
work.
Discussing the results
The evaluator should communicate and discuss the outcome of the appraisal
exercise with the employee on a one-to-one basis. The focus of this discussion
is on communication and listening. The aim should be problem-solving and
reaching a consensus.
Decision-making
The last step of the process is decision-making. This can be done either to
improve the performance of the employees, or to take required corrective actions,
or to take related HR decisions like rewards, promotions, demotions, transfers,
etc.
The essentials of an effective performance system are as follows:
• Documentation: The noting down and documenting of the
employee’s performance should be continuous. It also helps the
evaluators to give proof and provide the basis of their ratings.
• Standards/Goals: The standards set should be clear, easy to
understand, achievable, motivating, time bound and measurable.
• Practical and simple format: The appraisal format should be simple,
clear, fair and objective. Long and complicated formats are time
consuming, difficult to understand and do not elicit much useful
information.
• Evaluation technique: An appropriate evaluation technique should
be selected; the appraisal system should be performance-based and
uniform. The criteria for evaluation should be based on observable
and measurable characteristics of the employee’s behaviour.
• Communication: Communication is an indispensable part of the
process. The desired behaviour or the expected results should be
communicated to the employees as well as to the evaluators.
Communication also plays an important role in the review or feedback
meeting. An open communication system motivates the employees
to actively participate in the appraisal process.

• Judgement unbiased: Interpersonal relationships can influence the

evaluation and the decisions in the performance appraisal process.
Therefore, evaluators should be trained to carry out the processes
of appraisal without personal bias.
• Feedback: The purpose of feedback should be developmental rather
than judgemental. Timely feedback should be provided to the
employees and the manner of giving it should be such that it has a
motivating effect on the employees’ future performance.
11.4.2 Methods of Appraisal

Performance can be appraised by a number of methods. Figure 11.2 categorizes
the various methods into four major groups, i.e., category rating methods,
comparative methods, objective methods and narrative methods.
Category Rating Methods Comparative Methods

• Graphic rating scale • Ranking
• Checklist • Paired comparison
• BARS • Forced Distribution
Performance
Appraisal Methods
Objective Methods Narrative Methods

• Management by Objectives • Critical incident
(MBO) • Essay
• Assessment centre • Field Review
• 360-degree appraisal
• Balanced score card
Figure 11.2 Performance Appraisal Methods

(a) It is assumed that the immediate supervisor is most qualified and
competent to realistically, objectively and fairly judge an
employee’s____________.
(b) ____________ performance is compared with the desired or
standard performance.


(a) The appraisal process can be done by anyone who is conversant
with the performance of individual employees.
(b) The concept of having supervisors and managers rated by employees
or group members is being used in a number of organizations today.
11.5 Reward
The principle of paying for performance is so logical and so deeply instilled in

our value system that nobody can challenge it. Performance is concerned with
results. To reward people in the organization based on performance, therefore,
requires some agreed upon criterion for defining performance.
One of the latest strategies being followed in all sectors throughout the
world for retention and talent management is linking compensation to
performance. Commonly known as performance pay or performance-based
pay, it links compensation of the employees to their performance and their
contribution to the organizational goals. Therefore, periodic performance reviews
play a vital role and provide the basis of performance-related pay. Commissions,
incentives and bonuses and piece rate pay help the employer to pay the
employee according to his productivity and hard work.
11.5.1 Types of Rewards

There are a number of ways to classify rewards. One useful classification can
be as follows:
• Intrinsic versus extrinsic rewards
• Financial versus non-financial rewards
• Performance-based versus membership-based rewards
Intrinsic versus extrinsic rewards
Intrinsic reward refers to the satisfaction that one gets from the job itself. This
satisfaction can be seen as self-initiated reward, such as having pride in one’s
work, having a feeling of accomplishment, or being part of a team. The techniques
of job enrichment such as shorter work-weeks, flexi-time and job rotation can
offer intrinsic rewards by providing interesting and challenging jobs and allowing
the employees greater freedom. Extrinsic rewards include money and promotions
and usually come from the management.

Financial versus non-financial rewards

Rewards may or may not enhance an employee’s financial well being. If they
do, they can do so through wages, bonuses, profit sharing and the like; or indirectly
through supportive benefits such as pension plans, paid vacations, paid sick
leave and purchase discounts.
Non-financial rewards cover a range of desirable facilities at the disposal
of the organization. The common link is that they do not improve the employee’s
financial position. Instead of making the employee’s life better off the job, non-
financial rewards make life on the job more attractive.
Performance-based verses membership-based rewards
The rewards given by an organization are based on either performance or
membership criteria. While managers in most organizations will vigorously argue
that their reward system pays the employee for his/her performance, this is
almost invariably not the case.
Performance-based rewards include payment of commissions, piecework
pay plans, incentive systems, group bonuses, or other forms of merit pay plans.
Membership-based rewards include increased cost of living, profit sharing,
benefits and salary increases in accordance with labour market conditions,
seniority tenure in a particular position, credentials (such as a college degree or
a graduate diploma), or future potential.
11.5.2 Money as Reward

Since earlier times, employees and companies have thought that the best reward
is money since money has been considered as the general denominator of
accomplishment.
However, the motivation infused by money has some serious limitations.
Also, the association between the financial value of rewards and motivation is
not very good. In maximum jobs, the best performers are not essentially the
highest-paid ones.
Monetary rewards do not last for long, as they are soon forgotten. Actually,
researches have proved that a pay raise, in general, has a motivational influence
for less than two weeks. In addition, direct deposit has added considerably to
reducing the motivational influence of monetary rewards.
Monetary rewards are also extremely expensive. Despite enormous money
pumped in and given to employees by a company, they will soon become
‘habituated’ to it. This has resulted in the familiar phenomenon called ‘reward
inflation’.

Also, while money will continue to be the basis of any reward system,
excessive stress on financial rewards leads to develop ‘money motivation’,
instead of ‘good-work motivation’. When people always look for money, they
will, most of the times, opt for the shortest and fastest way to increase their
financial gain – even if it comes at the cost of sacrificing quality. Due to these
practices, customers just become a means to an end.
11.5.3 Types of Performance-related Pay (PRP)

PRP may take different forms, which are as follows:
• Merit pay: It means setting a basic salary according to the position and
the rank of the employee and the variable part of the salary is based on
the periodic performance reviews.
• Profit sharing: It means sharing the profits of the enterprise with the
employees as bonus at the end of a period, generally a year.
• Incentives and performance bonus: These refer to rewards for special
accomplishments or fulfillment of the targets set such as sales
commission.
• Gain sharing: It means sharing of gains as a result of the increased
performance of the employees with them.
Arguments for and against PRP
It is true that PRP has always been a topic of discussion and controversy with
many arguments against it. However, it has also been proved that PRP motivates
employees to perform better and earn, and encourages learning, innovation,
creativity, problem solving and empowerment. This is facilitated through proper
performance measurement and reviews.
People very often consider performance management solely in terms of
PRP. When there are business pressures to improve performance, a common
reaction of many managers would be that they would want to pay for results,
although the organization may have no comprehensive system of performance
management. However, it is never appropriate to introduce PRP unless there is
already such a system in place. It is very difficult to get this aspect of the process
right, and there are numerous examples of PRP schemes, which may be called
merit pay, performance bonuses, incentive bonuses, etc. that have fallen into
disrepute.
An in-depth study by the Institute of Manpower Studies in three
organizations—a building society, a food retailer and a local authority—found
that merit pay was more likely to de-motivate than motivate employees. Similarly,

a study of managers in British Telecom found that roughly 63 per cent believed
that PRP was applied unfairly.
Objectives of PRP
The introduction of PRP can have a number of objectives, which are as follows:
1. Individual or team performance orientations
(i) To encourage a focus on individual or team performance, depending
on which is the more appropriate for the organization’s needs
(ii) To motivate employees as they will see that their rewards are directly
related to their efforts
2. Organization performance and culture
(i) To increase employees focus on and commitment to corporate
objectives
(ii) To help develop a performance culture or to reinforce the existing
one
(iii) To assist in the achievement of organizational objectives by making
these the basis on which incentive payments are made
3. Employee retention
(i) To help recruit and retain high quality staff
Method of introducing PRP
The steps involved in introducing PRP are as follows:
• Deciding and clearly defining performance goals and performance
measures
• Setting the target bonuses for different levels of performances
• Appraising the performance of the employee
• Giving rewards and bonuses according to performance appraisal ratings
Organizations are also designing variable compensation plans for various
roles and positions in the organization.
Conditions for introducing PRP
For PRP to be introduced successfully, the following factors must be obtained:
• Top management support: There has to be top management
commitment to the process, so that it is owned by line managers and not
merely seen as a personnel system.

• Cultural fit: The scheme must be appropriate to the organization’s culture.

There is no such thing as an off-the-shelf scheme, and in some cases, it
may not be appropriate to have any scheme at all.
• Strategic orientation: In goal setting, account should be taken of the
need to achieve long-term objectives as well as short-term ones. A sound
PRP scheme should be designed to reward both.
• Flexible: The scheme should be sufficiently flexible to be able to take
account of changes in business circumstances or in the circumstances
of individuals.
• Well-established performance management: The scheme must be
closely linked to a comprehensive performance management process.
Without such a process, PRP cannot be expected to work effectively.
The performance management process must include a robust mechanism
for setting objectives and targets and for reviewing and assessing
performance against these. Jobs must be clearly defined and
accountabilities spelt out, if individuals are to achieve the required results.
• Right focus on KRAs: The scheme should concentrate rewards in key
result areas (KRA) of the business that are deemed to be of prime
importance. In other words, if it is the intention of the organization to try to
improve return on capital employed then this should be one of the factors
that must be linked to performance.
• Both quantifiable and qualitative measures: While the measures on
which performance is judged should as far as possible be quantifiable
and objective, some more subjective ones will inevitably need to be
included. There is a need to ensure that performance measures are
qualitative in nature including, for example, such measures as teamwork
and innovation.
• Training people: One of the key considerations is to ensure that the
managers operating the scheme are thoroughly trained in its principles.
Employees too need to be trained, as they are active partners in the
appraisal system.
• Clarity: There should be clarity about why the process is being introduced
and what it is expected to achieve. Without this clarity, it is better not to
proceed. The link between financial rewards and performance must be
clear and should be effectively communicated to employees. Rewards
should be seen to be commensurate to the effort put in and the results
produced.

• Relevance to job: The percentage of base salary or the size of sums

paid out should be related to the nature of the organization and the type of
work undertaken. For example, in a sharp end sales job in a competitive
market, it could well be that 100 per cent of salary is performance related.
However, this would be entirely inappropriate for an office-based clerical
or professional job.

(a) One of the latest strategies being followed in all sectors throughout
the world for retention and talent management is linking _________
to performance.
(b) _________ reward refers to the satisfaction that one gets from the
job itself.
(a) Monetary rewards do not last for long, as they are soon forgotten.
(b) People never consider performance management solely in terms of
PRP.
11.6 Organizational Rewards: Recognition and Benefits
Employee recognition is a means by which organizations reward employees for

their contributions to the business. It is a simple, immediate system which is
also powerfully reinforcing. By recognizing these contributions, it reinforces, with
its chosen means of recognition, the actions and such behaviour the organization
wants to see its employees repeat.
11.6.1 Case of Successful Recognition

Every company establishes criteria for rewarding employees. These include
such activities as contributing to the company’s success by serving a customer
without being asked by a supervisor to help. Each employee who meets the
stated criteria receives a hand-written thank you note from the supervisor. The
note spells out exactly why the employee is receiving the recognition.
The employee gets the opportunity to ‘draw’ a gift from a box. The gifts
range from free meals at fast food restaurants to free candy to a golden dollar

and also to substantial cash rewards. Since the employee has himself drawn
the reward, there is no fear of supervisory interference. A copy of the thank you
note goes into another draw for even more substantial rewards and recognition
opportunities.
11.6.2 Tips for Effective Recognition

In designing and administering employee recognition processes, care is to be
taken so that it is equally beneficial for the organization and the employee. The
recognition offer should be able to motivate and reward employees and thus
ensure success for the organization. Some tips of effective recognition are as
follows:
1. Know what people want from work
Some people work for personal fulfilment; others work because they love of
what they do. Some work to achieve goals and to feel they are contributing to
something larger than themselves; that is, to the success of the organization.
The truth is that everyone works for money and for reasons too personal to
apply uniformly to all workers.
2. Establish criteria
It is important to establish criteria for recognition or rewardable performances or
behaviour. The process should not allow for the selection of individuals for
recognition because this can be perceived as ‘favouritism’ and will generate
such statements as ‘It’s your turn to get recognized this month’ amongst the
employees. This is why ‘Employee of the Month’, schemes are rarely effective.
When there is trust, people voluntarily make the extra effort to work better. Trust
results in effective communication, employee retention and motivation. When
there is trust, everything else is easy. The rules of the recognition game should
be fair. To make it fair, the organization must establish rules, communicate them
to the employees and follow them sincerely. The accomplishment must be
viewed as difficult by the organization for the process to be a success.
3. Give priority
Recognition of employees is limited in most organizations. They complain about
the lack of regular system of recognition; managers are reluctant to recognize
work which they consider to be only ‘routine’. Moreover, everyone at work is
busy and offering regular recognition to employees is just an act that is often
overlooked. These factors combine to create workplaces that fail to recognize
the true worth of employees. Managers who prioritize employee recognition are
those who understand the importance and power of recognition.

4. Make recognition need based

If anyone in the workplace was asked what treatment they most want at work,
the desire to be treated with dignity and respect will be topmost on the wish list.
Respect can be demonstrated with simple, yet powerful actions. Colleagues,
co-workers and staff can be told how much they and their contribution are valued
on any given day. It is not necessary to wait for an occasion to offer recognition.
In fact, small surprises and tokens of appreciation that are spread throughout
the year help employees feel respected.
5. Make it consistent
Anyone who performs according to the mutually accepted criteria receives the
reward. If certain criteria have been negotiated in a performance development
planning meeting then it is the responsibility of the organization to ensure that
the recognition meets these requirements. Supervisors must also be consistent
in applying these criteria.
6. Make it a surprise
Many people also like recognition when it is unexpected and comes as a surprise.
If the organization thanks a supplier for every timely delivery with a lunch,
gradually the lunch (gift) becomes a ‘given’ or an entitlement that is no longer
rewarding.
In another organization, take the example of a CEO who traditionally bought
lunch for all employees every Friday. Soon, the employees began asking to be
reimbursed if they did not eat lunch in the office on Fridays. He was disappointed
that his effort/goal of team building had turned into a given or entitlement.
7. Timeliness
Recognition should follow the actions as quickly as possible, so that it reinforces
behaviour that the employer wants to encourage.
8. Avoid recognition traps
The system of recognition should be transparent and consistent. Managers can
avoid the employee recognition traps by following rules and observing ethical
norms. The following are avoidable:
• A system that singles out one or a few employees and lacks transparency
• A system that saps the morale of those who failed to win
• A system that confuses people because they meet the criteria and yet are
not selected

• A system in which winners are chosen by voting or any other subjective

criteria
It should include all employees and recognition must be on the basis of
specific information about what behaviour or actions are being rewarded and
recognized.
11.6.3 Recognition Methods
Recognition is not necessarily an expensive programme. There are convenient,
reasonable and cost-effective ways to provide rewards and recognition, to
demonstrate appreciation and say ‘thank you’ to contributions. The following is a
list of such methods:
1. Motivational posters for recognition
Most people want to believe that their work made a difference. After all, why
contribute all of that energy and effort if one cannot bring about any change? A
poster that tells the individual that his work and contribution has made a difference
is normally appreciated.
2. Engraved articles for excellence and teamwork
If the organization wants to reward all the members of a team, it could consider
pens and lapel pins that recognize such positive contributions as excellence,
teamwork and for ‘doing whatever it takes to do the job well’. Management can
also consider giving gifts that are affordable and on which a few words of
appreciation can be engraved. These make great gifts.
3. Thank you gifts to please individual tastes
Ideas for business recognition and gifts can include crystal picture frames,
watches, clocks and ‘best wishes’ bowls. Managers can say ‘Thank you’ in a
truly memorable fashion with a gift selected specially for the individual. A
handwritten ‘thank you’ note or card is always cherished. They should keep a
supply on hand. If they are handy and available, managers are much more likely
to take the time to fill one out. They should remember to praise and thank the
employee as soon as possible after the event occurs, with the most effective
rewards, recognition and feedback.
4. Gift basket and container ideas
Managers can often find gift boxes wrapped in ‘Thank you’ paper or ribbons, so
the gift is bright and suitable for rewards and recognition. Everyone likes
chocolates, cookies and cheese or gourmet snacks. Gift hampers are perfect
as rewards and recognition for an employee, co-worker or boss. They are a

good choice because they can be customized to reflect the preferences of the
receiver. And, when the contents are consumed, the hamper (or other container)
engraved or with a card, provides a lasting memory.
5. Organization logo merchandise
Employees cherish merchandise that carries the company logo and mission.
Companies can choose from a vast array of items for such gifts. The only
limitation is imagination. Some organizations even sponsor contests to design
the logo for the merchandise.
6. Gift certificates
Managers can ask their employees where they shop and managers can keep
gift certificates of these stores handy for convenient rewards and recognition.
Some organizations tie up with merchants for programmes that offer gift
certificates, which people can spend in lieu of cash at any of the participating
stores.
11.6.4 Benefits as Organizational Rewards

The list of benefits considered as the organizational rewards is as follows:
• Traditionally offered benefits: These benefits are recognized by law,
which every company must offer
• Government-sponsored benefits: Social security is one such traditional
government mandated benefit. Old-age security is also included in this
programme.
• Life and health insurance: Basic term life insurance is provided to all
eligible employees without taking any money from them. This facility also
includes additional life insurance coverage for employees, spouses/
domestic partners and children. These services are offered at affordable
and competitive prices. The medical plan options comprise two traditional
co-pay options and two high deductible options with health savings
accounts.
• Pension benefit: Generally, a pension is a plan offered to provide.
Through pension they earn an income when they are no longer earning a
regular income from their job. A pension offered by a company for the
advantage of a worker is usually referred to as an occupational or employer
pension. Labour unions, the government or other organizations may also
finance pensions.

• Time-off benefit: If you are getting well after an illness or you just need to
relax and re-energize yourself, it is significant to have time for yourself or
to enjoy the company of your family.
• Wellness programme: For a long time now, the employee wellness
programmes have been considered as a way to reduce health care costs,
overcome absenteeism and improve productivity. Programmes developed
to maintain or improve employee health before problems arise are referred
to as wellness programmes.
• Life cycle benefit: These benefits are developed to meet the requirements
of workers throughout the several stages of life. Several employers in
both the public and private sectors are coming to know that this attitude to
benefits makes sense from several viewpoints.
• Other benefits: The list of other benefits is as follows:
o Tuition fee help for education
o Auto repair
o Get tickets for concert
Activity 2
Compare and Contrast the benefit availed by employees of a private
organization and employees of a government enterprise.

(a) Every company establishes criteria for rewarding _________.
(b) The system of _________ should be transparent and consistent.
(a) Recognition of employees is limited in most organizations.
(b) Basic term life insurance is provided to all eligible employees without
taking any money from them.

11.7 Balancing Personal and Professional Lives
In the late 1970s, the phrase ‘work–life balance’ was first used in the United
Kingdom. It was employed to recognize the balance between a person’s
occupational and personal lives. For the past decade, a rise in the violence at
the place of work, an increase in levels of absenteeism and rising employees’
reimbursement claims are some of the evidences of a harmful work-life balance.
Several causes have been suggested for this imbalance for this situation. These
causes range from personal ambition and the stress of family compulsions to
the accelerating rate of technology.
Often, the ways in which companies have developed the notion of an ‘ideal
worker’ does not match the everyday life of family. Long working hours and
almost complete devotion towards work renders it hard for working mothers to
involve themselves in getting ahead in the place of work.
Corporations have started to realize how significant the work-life balance
is to the efficiency and inspiration of their workers. Employers can offer a variety
of diverse programmes and initiatives, for example, flexible working deals in the
name of part time, informal and telecommuting work. More practical employers
can offer compulsory leave, stringent maximum hours and promote an
environment that supports workers not to keep on working after long hours.
It is, in general, just the highly skilled employees who enjoy such
advantages as written in their contracts or appointment letters, though several
professional fields would not go so far as to dispirit workaholic manners. In case
of unskilled workers, they always rely on bare minimum officially permitted
requirements.
Workers can be offered an array of family support advantages by their
companies to help them acquire a balance in their multiple roles. Formal family-
friendly policies and advantage availability can decrease work–family clash and
perk up employee job results. In addition, formal practices, for example childcare,
telecommuting and flex-time, aid employees manage their work and non-work
life, and improve employee perceptions of the support extended by their
organization towards their family lives. Though, when employees think that using
family-friendly advantages would actually harm their job prospects and position
at work the chances of use of such benefits decline.
A worker’s personal and professional lives are similar to two sides of the
same coin. And adjusting one for the other or spending more time pursuing one

as against the other can have grave negative consequences. Thus, the answer
to this problem is work-life balance.
Achieving balance between work requirements and personal priorities is
not easy. However, you could master this art through the following methods:
• Be organized: Try to handle your day as a replacement for letting
the day handle you. Set sensible timelines and stick to the schedule.
• Delegate better: Create the social and skilled support systems.
• Don’t be a slave: Equipment has rendered it a lot comfortable to
access email or answer official calls, when you are not attending
your office. There is always a propensity to take work home particularly
if you are working on cut-throat deadlines. Unless totally unavoidable,
it is wise you switch off when you are at home.
• Know your weaknesses and strengths: An open discussion with
your boss could be very helpful. You should explain your requirements
to him/her in detail and if required, ask for support or training sessions
that can help you become well-organized and make you the master
at multi-tasking.
• Set boundaries and learn to say no, when required: For proving
yourself a good worker, spouse, parent or friend, it is not at all required
to fulfil their all unrealistic demands. It is good enough to be self-
centred towards satisfying your own concerns; do not give away
your time.
11.7.1 Dependant Care

Dependant care means the advantages provided by an employer to a worker for
use in caring for dependents such as newborns or disabled persons. Dependent
care benefits are part of the general employee benefits plan. Most companies
will provide some kind of benefits such as, providing a day-care centre for workers
or give time off to care for newly born children or dependent old-age persons.
Example: Fulfilling requirements of ‘dependent care’ is an aim to enhance Work
Force Flexibility among IBM workers. Globally, IBM has started a $50 million
Global Work/Life Fund (GW/LF) to fulfil strategic work/life problems for IBM
employees internationally, focusing on dependent care. In India, IBM offers a
host of GW/LF projects started to support its employees—working to upskill
employees’ management of in-home care, parenting workshops for employees,
holiday camps for employees’ kids, creche locator services in multiple IBM
locations, and the like.


(a) In the late 1970s, the phrase ‘work–life balance’ was first used in
the _________.
(b) Often, the ways in which companies have developed the notion of
an _________ does not match the everyday life of family.
(a) Workers can be offered an array of family support advantages by
their companies to help them acquire a balance in their multiple roles.
(b) An ideal worker is one who can manage his/her professional and
personal lives.
11.8 Sexual Harassment and Discrimination
11.8.1 Sexual Harassment

Sexual harassment is a very serious psychological offence. Sexual harassment
is described as harassment in subtle ways that may include sexual innuendoes,
inappropriate sexual gestures and propositions for sexual favours.
The event of sexual harassment becomes even more serious when the
granting of sexual favour is made a term and condition of the individual’s
employment, when it interferes with the individual’s work performance or it
creates an intimidating or hostile work environment. Superior, colleague, a
subordinate or a client could exhibit the offensive conduct. It is at the workplace
where the employee is required to represent, carry out performance or implement
any duties, obligations or services required. By this token a home would be the
workplace for a domestic maid. For a person engaged in field job, the area that
she covers in the course of her work represents her workplace.
The issue of sexual harassment of female workers by their male co-
workers at their place of work is discussed in detail in Vishaka V State of
Rajasthan. Here, it was held that sexual harassment results in the violation of
fundamental rights to ‘gender equality’ and ‘the right to life and liberty’ including
the rights under articles 14, 15 and 21 of the Indian Constitution.

Keeping this in mind, the Supreme Court has passed twelve guidelines
that have the force of the law. They were taken by the division bench, as there
was ‘an absence of enacted laws to provide for the effective enforcement of
basic human rights of gender equality and the guarantee against sexual
harassment at workplace.’ These guidelines are to be observed until legislation
is enacted.
Some of the guidelines are as follows:
1. ‘It shall be the duty of the employer or other responsible persons in
the workplace or other institutions to prevent or deter the commission
of acts of sexual harassment and to provide the procedure for
resolution, settlement or prosecution of acts of sexual harassment.’
2. ‘The employer should initiate action in accordance with the lay by
making a complaint with the appropriate authority. Victims should
have an option to seek their own transfer or that of the perpetrator.’
3. ‘A complaint mechanism should be created in the organization. This
mechanism should ensure time-bound treatment of complaints. The
complaint committee should be headed by a woman and not less
than half or its members should be women. In order to prevent the
possibility of undue pressure or influence from senior levels, a third
party, especially an NGO familiar with sexual harassment, should be
involved in the complain committee.’
4. ‘The committee must submit an annual report to the government.
Employees must be allowed to raise the issue of sexual harassment
various fore.’
The guideline also provides for initiation of criminal proceedings where
sexual harassment is proved beyond doubt. The Supreme Court had passed
these guidelines for the first time in this case, keeping in mind the need of the
hour and seriousness that was needed to safeguard the rights of women in the
workplace and elsewhere. This decision is binding on all courts, governments
and its instrumentality, private employers and private parties and the NGOs.
There have been many cases since Vishaka, Apparel Export Promotion
Council Vs. A.K. Chopra, Saudi Arabian Airlines Vs. Shenaz Hussain and more
recently Rupan Deol Bajaj Vs. K.P.S. Gill’s case decided by the Supreme Court.

Major sexual harassment cases

The Supreme Court has made a novel use of Article 21 in Visaka Vs. State of
Rajasthan, to ensure that the female workers are not sexually harassed by their
male co-workers at the workplace.
The Supreme Court has declared that harassment of a working woman
at her place of work amounts to violation of rights of gender equality and right to
life and liberty which is clear violation of Articles 14, 15 and 21 of the Constitution
of India.
The right to life enshrined in Article 21 has been liberally interpreted so as
to mean something more than mere survival and mere existence or animal
existence. It therefore includes all those aspects of life that go to make a man’s
life meaningful, complete and worth living. The Supreme Court has taken the
view that in order to treat a right as a Fundamental Right, it is not necessary that
it should be expressly stated as a Fundamental Right. Accordingly, the Supreme
Court has implied a whole bundle of human rights out of Article 21 by reading the
same along with some Directive Principles.
Another strategy adopted by the Supreme Court with a view to expand the
ambit of Article 21 to imply certain rights therefrom, has been to interpret Article
21 along the international charter on Human Rights to which India is signatory.
This kind of judicial approach can been seen in a number of cases cited here.
In the absence of any domestic law relating to sexual harassment in India,
the Supreme Court has itself laid down under Article 32 some directions for
prevention of such harassment. These directions are binding and enforceable
and are required to be strictly observed in all places until suitable legislation is
enacted to occupy the field.
The directions issued by the Court place certain obligations on the
employers or other responsible persons in workplace and other institutions
‘whether in public or private sector’. These persons are required to take
appropriate steps to prevent sexual harassment. This means that in the area of
sexual harassment, the court has used articles 14, 15, 19(1)(g), 21 and 32 of
the Constitution not only against the government and its instrumentality, but also
against private parties and private employers. This portends that, in course of
time, the coverage of certain Fundamental Rights may be expanded by the
Supreme Court so as to bring within their scope even private parties and NGOs.

Caselet
Posted by Ammu Joseph July 14th, 2011

Sexual harassment experienced by female journalists in the line of duty
recently became a topic of discussion in Indian media circles, thanks largely
to a newspaper article by television journalist and author Sunetra Choudhury,
headlined ‘Pervy Politician needs to get his act together.’
She has been faulted by some for not naming the offending politician and
lauded by others for bringing the issue out of the closet so that it can be
recognized and perhaps even tackled. In an article on The Hoot (a
mediawatch website) headlined ‘Harassed on assignment’ fellow journalist
Geeta Seshu has explained why Choudhury’s public testimony is an important
step forward even if she has stopped short of identifying the culprit.
It is no secret that sexual harassment has been alive and well in Indian media
workplaces as well as on assignment for many years. A senior journalist I
interviewed for my book, Making News: Women in Journalism (originally
published in 2000), had said, ‘Politicians, bureaucrats and police officers
generally have three ways of dealing with women in the profession: they
patronise you or push you around or lech at you.’ Several women mentioned
having to endure sexual banter or innuendo, being propositioned, etc., as
occupational hazards. However, many preferred to keep such experiences
under wraps to avoid possible professional repercussions.
In a 2001 pilot study reported in the 2005 edition of Making News, which
covered nearly 250 women journalists across India who voluntarily responded
to the online questionnaire (i.e., a convenience sample), 8 per cent claimed
to have faced sexual harassment, while another 7 per cent chose not to
answer that particular question. Significantly, only 8 per cent reported the
availability of in-house committees to deal with complaints of sexual
harassment at the workplace (legally mandated by a 1997 judgement of the
Supreme Court of India). Interestingly, this question had a high rate of ‘no
response,’ which could be interpreted to mean that many women journalists
were then unaware of whether or not such a committee existed in their media
house (even though the judgement places the onus on employers to ensure
that both male and female employees know what constitutes sexual
harassment and what options are available to victims of such behaviour).
A survey conducted a couple of years later, which covered a convenience
sample of 410 women across the country, found that sexual harassment

was a major concern for most respondents, with nearly a quarter willing to
state on the record that they had been sexually harassed either at the
workplace or in connection with their work. An additional 8 per cent were
unsure about whether or not their experience constituted sexual harassment.
And, again, a number of respondents refused to respond to the question or
comment on the issue.
Of those who admitted to having been sexually harassed, almost a third
reported that the experience had ‘seriously’ undermined their confidence and
affected their work, while nearly a quarter said it had affected them ‘mildly,’
and a surprisingly large proportion (approximately 41 per cent) claimed that it
had no effect on them. According to the authors of the survey report, the
findings suggest that ‘sexual harassment is part of the work culture in media
organizations in India.’
This is further borne out by the fact that only around 15 per cent of women
who had experienced sexual harassment had made a formal complaint about
it. Of those who did not, over 10 per cent cited fear of intimidation, victimization
and/or job loss as the inhibiting factor. Significantly, a large number (about 40
per cent) said they did not complain because they felt sexual harassment
was not taken seriously in their organizations and/or that their complaint would
be seen as trivial or exaggerated. Nearly a quarter of all respondents reported
feeling that sexual harassment is tolerated as an accepted part of the
organization’s culture. A disturbing 14 per cent said they had no confidence
in the management’s willingness or ability to take action against such conduct.
A couple of cases that came to light in the early 2000s unfortunately confirmed
that such perceptions were not entirely unfounded.
Interestingly, in the Global Report on the Status of Women in the News
Media recently released by the International Women’s Media Foundation, 82
per cent of the Indian media houses covered by the study (a total of 17)
claimed to have adopted specific policies on sexual harassment in the
workplace. The report is based on information provided by news companies
in 2009. It would be interesting to check how many of their employees are
aware of such policies, if indeed they do exist.
Perhaps the recent fresh ‘outing’ of the subject will catalyse more open debate
and serious action on sexual harassment in media workplaces and on
assignment in India.
Source: Adapted from http://www.wimnonline.org/WIMNsVoicesBlog/2011/
07/14/out-of-the-closet/ (accessed on 15-12-11)

11.8.2 Discrimination
Workplace discrimination can happen in any form, such as, on the basis of
race, gender and religion. Newer forms of discrimination, which are increasingly
subtle and less visible, are coming up. These include the following:
• Age
• Disability
• Genetic disposition
• Migration
• HIV/AIDS
• Sexual orientation
• Lifestyle
Every worker or employee comes across the situations in which
discrimination takes place; their stories are full of harassment and humiliation;
these are the stories of injustice and discrimination, tales of how male co-workers
attempt to restrict professional success of their female co-workers, how an
employee is looked down upon by another employee just because he comes
from a lower caste, how one’s skills are openly judged by individual’s personality,
colour, etc.
The most general and widespread form of discrimination is the one based
on race and religion. Judging a person by his/her race and not by his/her
performance is considered as a form of discrimination. Such conduct of an
employer can disgrace a person and put him/her under stress and dejection.
Diversity in reimbursement packages among employees on basis of colour or
race are also a detrimental practice. In regard to age discrimination, younger
employees are often paid less for they are thought to be raw or inexperienced.
Also, among managers, there is a negative practice of recruiting and keeping
older workers. Referring to gender biases, women in India until date remain the
largest group that undergoes discrimination. Today, women comprise only 2 per
cent of the overall managerial strength in the Indian corporate sector. While a
large number of women are joining the corporate sectors now with handsome
salaries and even at senior positions, pay equity in comparison to their male co-
workers is still very much disappointing. Migrants in Asia are also undergoing
discrimination as they have to agree to low wages, menial jobs and unfair jobs
contracts.

The workplace discrimination can be inflicted by either the employee, or

by the colleague. Discrimination by co-workers can happen to new comers.
They may face mocking stares or regular digs made at them by their co-workers
during early weeks. On the other hand, if it goes on for a long time, it can affect
the worker and the company. A worker who is being discriminated observes
non-cooperation from peers and unhelpful feedbacks form subordinates.
Discrimination results in psychological and emotional trouble, leading to
discouragement and descends in standards of work performance. It brings down
the total performance, and leads to more discrimination, which ultimately
increases the number of gaps in an individual’s work further. The workplace
discrimination also affects the social order. The socio-economic inequalities
are increased and social structure and solidarity are corroded. It leads to the
wastage of individual talent and resources.
Types of gender discrimination at workplaces
There are many methods in which gender discrimination happens at workplace.
The gender discrimination can take place in the following ways:
• Direct discrimination: At several times there are examples where co-
workers treat you in a different way at workplace. Direct discrimination
comprises acts like variation in salary based on gender though both, male
and female, carry out the same job, or promoting someone for they are
single instead of an equally qualified individual.
• Indirect discrimination: Cases where people are indirectly discriminated
against comprise instances where a particular set of rules or laws is made
which indirectly imply that people of a particular gender cannot qualify
those rules and regulations.
• Harassment at work: This type of discrimination includes psychological
trauma, sexual or verbal harassment or inferior treatment owing to gender.
• Victimization: Unfair or biased treatment based on the worker’s gender
is referred to as victimization at work.
Caselet
The newly released report on the status of women in news media finds that
73 per cent of the top management jobs globally are occupied by men as
compared to 27 per cent occupied by women. Almost two-thirds of the ranks
of reporters are held by men as compared to 36 per cent held by women.

However, among senior professionals, women are nearing parity with 41 per
cent of the newsgathering, editing and writing jobs. Presently, women hold
26 per cent of governing and 27 per cent of top management jobs as compared
to 12 per cent of the top management positions being held by them way back
in 1995 according to the Margaret Gallagher study.
The study shows that Indian women comprised 12 per cent of the media
workforce. However, the current study by the International Women’s Media
Foundation (IWMF) show that women’s representation has doubled to 25
per cent of the workforce across the 17 companies (10 newspapers, 6
television stations and 1 radio station) surveyed. Still, it is the men who
dominate the media industry in the ratio 4:1. Women earn lesser salaries
than men particularly in governance and in top and senior management
positions. Women earn similar to men in middle management and in junior
professional levels as well as in the technical professional level. Women
earn more than men in sales, finance and administration department of news
companies.
Source: Adapted from: http://eindia2007.blogspot.com/2011/03/gender-
discrimination-prevails-in.html on 15-12-11.

(a) The event of _________ becomes even more serious when the
granting of sexual favour is made a term and condition of the
individual’s employment.
(b) The Supreme Court has made a novel use of Article _________ in
Visaka vs. State of Rajasthan.
(a) Workplace discrimination can happen on the basis of race, gender
and religion.
(b) Judging a person by his/her race and not by his/her performance is
considered as a form of discrimination.

11.9 Summary

• The modern performance management system of any organization is an
integrated process having linkages with every subsystem of human
resource management (HRM).
• A key area of HRM is developing employee knowledge and skills. Effective
performance feedback makes employees aware of their strengths and of
the areas in which they can improve.
• The following difficulties arise in the process of performance reviews:
o Identification of performance measures and criteria for evaluating
performance
o Collection of factual evidence about performance
o Existence of bias on the part of managers
o Resolution of conflict between reviewers and the people they review
o Defensive behaviour exhibited by individuals in response to criticism
• It is assumed that the immediate supervisor is most qualified and
competent to realistically, objectively and fairly judge an employee’s
performance.
• Performance is concerned with results. To reward people in the
organization based on performance, therefore, requires some agreed upon
criterion for defining performance.
• Monetary rewards do not last for long, as they are soon forgotten. Actually,
researches have proved that a pay raise, in general, has a motivational
influence for less than two weeks.
• Employee recognition is a means by which organizations reward
employees for their contributions to the business. It is a simple, immediate
system which is also powerfully reinforcing.
• In the late 1970s, the phrase ‘work–life balance’ was first used in the United
Kingdom. It was employed to recognize the balance between a person’s
occupational and personal lives.
• The event of sexual harassment becomes serious when the granting of
sexual favour is made a term and condition of the individual’s employment,
when it interferes with the individual’s work performance or it creates an
intimidating or hostile work environment.

• The most general and widespread form of discrimination is the one based
on race and religion.
11.10 Glossary
• Performance appraisal: The annual formal assessment and rating of

individuals by their managers
• Modern performance management system: An integrated process
having linkages with every subsystem of human resource management
(HRM)
• Appraisal meetings: Important vehicles for communication between
employee and supervisor
• Self-assessment: A process in which individuals use a structured
approach to review their own performance which forms the basis for
discussions with their managers during review meetings
• Merit pay: Refers to setting a basic salary according to the position and
the rank of the employee and the variable part of the salary is based on
the periodic performance reviews
• Profit sharing: Sharing the profits of the enterprise with the employees
as bonus at the end of a period, generally a year
• Employee recognition: A means by which organizations reward
employees for their contributions to the business
• Wellness programmes: Programmes designed to maintain or improve
employee health before problems arise
• Sexual harassment: Harassment in subtle ways that may include sexual
innuendoes, inappropriate sexual gestures and propositions for sexual
favours
• Dependant care: The benefits provided by an employer to an employee
for use in caring for dependents such as newborns or disabled persons
1. Discuss appraisal philosophy.

2. What is an appraisal interview? How will you conduct an appraisal
interview?

3. Evaluate suggested approaches for organizational behaviour and media

organization.
4. What is a reward? What kinds of rewards are there? Do you think money
is a good reward?
5. Discuss recognition and benefits as organizational rewards.
6. Suggest some methods of balancing work and personal lives. What is
meant by dependent care?
7. Describe the causes and provisions or ways to defeat sexual harassment
and discrimination at workplace.
11.12 Answers
1. (a) Administrative; (b) Employees’

3. (a) Appraisal interviews; (b) Formal
5. (a) Performance; (b) Actual
7. (a) Compensation; (b) Intrinsic
9. (a) Employees; (b) Recognition
11. (a) United Kingdom; (b) ‘Ideal worker’
13. (a) Sexual harassment; (b) 21


2. Refer to Section 11.3 (11.3.3)
1. Mcmahon, Gerard V. Performance Appraisal and How to Get it Right.

Dublin: Productive Personnel Ltd.
2. Fisher, Gwenith Gwyn. Work-Personal Life Balance: A Construct
Development Study. Ohio: Bowling Green State University.
3. Bharti, Dr Balbir. Women and The Law. New Delhi: APH Publishing House.

Appendix
Responsible Reporting of HIV/AIDS

The Press Council of India under the mandate of Section 13(2)(b) of the
Press Council Act, 1978 has built up a set of guidelines to facilitate the
functioning of the Media. Of these, the guidelines on coverage of HIV/AIDS
related matter was drawn up in the year 1993.
A writ petition no. CMP 52/2008 was filed by National Network of Positive
People before Hon’ble Court of Juvenile, Thiruvananthapuram objecting to
an incident relating to visual screened by the media of two children Bensy
and Benson and the subsequent false reporting of the demise of Bensy, a
child with HIV/AIDS. The Hon’ble Court observed that the Press Council of
India should give appropriate direction to the Media while reporting HIV/AIDS
by them. In pursuance of this matter the Council approached the
representatives of UNAIDS and activists in the field to update the guidelines
on HIV/AIDS reporting as the matter has undergone sea change since 1993.
These guidelines are equally relevant to print as well as electronic media.
Be Objective, Factual and Sensitive
Journalists must ensure their story is objective, factual and sensitive, more
so when they are reporting on HIV and AIDS. They should seek truth and
report it in a balanced manner. Journalists should hold all decision makers
accountable, from government to the pharmaceutical industry and advocacy
groups. They should be engaged with, but not captive to, any interest group.
Ensure accurate language and terminology
When reporting on HIV and AIDS, language is extremely important.
Journalists should be particularly careful to get scientific and statistical
information right. They must integrate this with correct terminology. For
instance, it is essential to know and make clear the difference between HIV
and AIDS. Being a syndrome or a collection of symptoms, AIDS cannot
itself be transmitted, nor is there an AIDS virus, nor an AIDS carrier. Similarly,
a person either does or does not have AIDS. Since there are no degrees of
AIDS, the expression ‘full-blown AIDS’ is meaningless.
Debunk myths related to prevention of HIV and miracle cures
The press should take care not to promote myths related to prevention and
transmission of HIV or to claims that advertise protection from the infection.
Nor should it give any credence to traditional cures that have no scientific

verification. False hopes are raised by reporting claims around cures.

Researchers have been working hard for decades yet there is no known
cure for HIV or AIDS although the infection is treatable with a positive impact
on the quality of life.
Make Photographs, Illustrations and Cartoons Positive
Visuals have an immediate impact on audiences and are important to
highlight stories. But the use of photographs in HIV and AIDS stories raises
a lot of ethical issues. Care should be taken to ensure that photographs do
not breach the confidentiality or privacy of infected people and their families.
Avoid photos that promote stereotypes related to HIV and AIDS and those
that victimize the infected.
For visual media
The visual media must deal sensitively and ethically with the identities of
those who have HIV and AIDS as well as their families and associates.
Care must be taken during interviews, off-the-record conversations, while
taking photographs and recording their stories so that identity is kept
confidential.
For news desk including sub-editors and newsroom staff
Special attention must be paid by the news desk and newsroom staff to
ensure that the eye-catching headlines reflect the issue accurately and that
the story is balanced and free of damaging stereotypes.
Uphold Confidentiality and Obtain Informed Consent
Journalists should not disclose the identity of the person infected with HIV
unless they have specific permission to do so.
Avoid Discrimination
Journalists should avoid references to caste, gender or sexual orientation
when reporting HIV and AIDS. Such references entrench existing prejudices
against sexual minorities certain communities or groups already targetted,
be they men who have sex with men (MSM), injecting drug users (IDUs),
sex workers or migrants.
Ensure Gender Sensitive reporting
The media must guard against gender stereotyping. It must not stigmatize
HIV positive women. For instance, portraying sex workers and bar girls as
being responsible for spreading the infection is common. Instead, stories
should explore how the infection makes women particularly vulnerable to
different forms of exploitation.

Ensure Sensitivity on Child-Related Stories

The identity of children infected and affected by HIV should not be revealed.
Nor should their photographs be shown. This includes orphans and children
living in orphanages, juvenile homes etc.
Ensure balanced and responsible coverage
News organisations should take the initiative to lessen the impact of a
‘negative’ story such as suicide due to HIV-related illness by carrying
statements from positive people who have faced the challenge successfully
or by giving helpline numbers.
Ensure regular training on HIV and AIDS for media
Journalists must keep abreast of the changing realities of this fast-evolving
infection. News organizations across the country must actively encourage
training workshops and modules on the issue. Journalists should also keep
themselves updated on court judgements related to the issue.
Adopt existing stylebook or guidelines on HIV and AIDS reportage
News organisations should adopt and widely disseminate existing
standardised guidelines and terminology on reporting on HIV and AIDS. This
will encourage responsible coverage of the issue.
Source: http://presscouncil.nic.in/guidelines%20on%20HIVAIDS.pdf

Unit 12 Organizational Culture,
Development and Change
Structure
12.1 Introduction
Objectives
12.2 Organizational Culture
12.3 Models of Culture
12.4 Management Ethics and Ethical Behaviour in Organization
12.5 Organizational Development
12.6 Understanding Organizational Change
12.7 Summary
12.8 Glossary
12.10 Answers
12.1 Introduction
In the previous unit, you read about organizational behaviour and performance
reviews. The unit talked about the significance of organizational rewards in
terms of money and recognition. All these factors affect the employee in terms
of job satisfaction and commitment. Another factor that employees discuss
frequently is the organizational culture. Organizational culture is defined as ‘a
pattern of shared basic assumptions invented, discovered, or developed by a
given group as it learns to cope with its problems of external adaptation and
internal integration that have worked well enough to be considered valid and
therefore, to be taught to new members as the correct way to perceive, think
and feel in relation to those problems’ (Edgar Schein). Organizations today are
known for the culture they follow. In fact the success of any organization today
is influenced to a considerable extent by the organizational culture. The
development of an organization is also dependent on its efficiency in managing
organizational changes. Organization development activities intervene in the
interactions of the organization’s people systems (such as formal and informal
groups), work culture and climate, and organization design.
This unit will introduce you to the concept of ‘organizational culture’. It will
also talk about changing management ethics and organizational development.
The significance of change and how it is resisted will also be discussed.
Objectives
• Define ‘organizational culture’
• Compare the various models of culture
• Differentiate between ethical and unethical conduct
• Assess the significance of organizational development and the role played
by organizational change
• List the various types of change and identify their salient features
12.2 Organizational Culture
Culture refers to the development of values and attitudes (which is a process

that continues over many generations). Now, let us see what organizational
culture is. Organizational culture can be partially traced back to the values held
by the founders of the organization. Such founders are usually dynamic
personalities with strong values and a clear vision as to where they want to take
their organizations. They usually select their associates and employees who
possess a similar value system so that these values become an integral part of
the organization.
The organizational culture is affected by the external environment and
the way it interacts with the organization. For example, one organization may
be known for its high quality defect-free product as a result of competitive forces
and customer demand, while another organization may prefer to be known for
its moderate quality but lower prices. The work cultures at these two types of
organizations would naturally be different. External forces such as consumer
demand will influence the cultures at both places.
Work culture also depends on the nature of the work and the goals set by
the organization. For example, in a small firm focusing on research, the workers
may be more informal at all hierarchical levels of the organization. The dress
code in such organizations may not be strictly observed and the employees
may be encouraged to be independent and innovative. In contrast, some
organizations may have a strictly enforced formal classical hierarchical structure
with clearly established channels of communications and strict adherence to
work rules. Accordingly, there would be a vast different in the organizational
culture of these two types of organizations.

12.2.1 Levels of Culture

According to Edgar Schein, organizational culture has the following three levels:
1. Observable artifacts of culture
2. Shared values
3. Common assumptions
If these levels are considered as layers, then the deeper the level, the
more difficult it becomes to diagnose and analyse the various aspects of
organizational culture at that level. To achieve a comprehensive understanding
of an organization’s culture, all three levels must be studied.
1. Observable Artifacts
These are the symbols of culture in the physical and social work environment
and are most visible and accessible. Among the artifacts of culture are the
following:
Organizational heroes: As a reflection of the organization’s philosophy, this
dimension concerns the behaviour of organizational members, specially the
behaviour of top management and their leadership styles. These leaders become
the role models and a personification of an organization’s culture. They represent
what the company stands for and reinforce the values of the culture. Modeled
behaviour is a powerful learning tool and such cultural aspects permeate
throughout the entire organization.
Ceremonies and rites: Ceremonies and rites reflect such activities that are
enacted repeatedly on important occasions. Members of the organization who
have achieved success are recognized and rewarded on such occasions.
Graduation ceremonies at colleges and universities where diplomas and other
symbols of recognition such as special awards are given to students are
reflections of culture in educational institutions.
These ceremonies bond organization members together. Such ceremonies
as company picnics, retirement dinners, annual conventions and so on,
encourage interpersonal communication and togetherness and thus bring about
a common cultural bondage.
Stories: Lavinson and Rosenthal suggest that stories and myths about
organization’s heroes are powerful tools to reinforce cultural values throughout
the organization and specially in orienting new employees. These stories and
myths are often filtered through a ‘cultural network’ and remind employees as
to ‘why we do things in a certain way’. For example, one of the stories passed

down at one of the chemical companies is that its Chief Executive Officer, upon
taking office, visited the company cafeteria and upon finding toothpicks at the
counter, ordered these to be removed because he thought that it was not keeping
with a professional image. Other stories are spread to reinforce customer service.
For example, the Japanese car Lexus has enjoyed a reputation for quality and
customer service by such stories as the company flying in repairmen to help
customers who had problems with their Lexus cars and could not find local
repairmen because of the complexity and sophistication of the automobile.
Cultural symbols: Symbols communicate organizational culture by unspoken
messages. Certain code of dress or a company logo can reflect its values and
orientations. Many people wear buttons on their jacket lapels suggesting that
they are the members of a Rotary Club or International Lions Club, thus reflecting
a sense of values about these people. Some of the material artifacts created by
an organization also speak of its cultural orientation and make a statement
about the company. These material benefits may range from assigned parking
space and larger offices to luxury automobiles given to senior or successful
members of the organization. At Mary Kay Cosmetics, a highly successful
cosmetics company in America, top sales performers are awarded a diamond
‘bumblebee’ that has come to be known as a meaningful symbol of culture
associated with success.
2. Shared Values
Values are the second and deeper level of culture and are reflected in the way
individuals actually behave. Values reflect a person’s underlying belief as to
what should be and what should not be. Values are those principles and qualities
that shape our thinking and behaviour.
Values can be classified into ‘instrumental’ values and ‘terminal’ values.
Instrumental values define such enduring beliefs that certain behaviours are
appropriate at all times irrespective of the objectives or outcomes. On the other
hand, terminal values are beliefs that certain more tangible objectives are worth
striving for and the objectives become more important than the appropriateness
of the behaviour in achieving such objectives. For example, when you push a
child out of the way of an incoming car, then you have placed a lesser value on
politeness and greater value on saving the life of the child.
Values are learned during the human process of socialization, through
family environment of upbringing and through religious influences where values
are given a holy tinge. Every culture has defined priorities for every aspect of
social life. Values are invoked to justify beliefs and actions that are emotionally

prioritized. For example, Mahatma Gandhi, in promoting hand woven ‘khadi’ as

against textiles produced by technologically sophisticated machinery, expressed
values of human survival as more important than economic progress that would
cost some jobs. Contrary to this exercise, Mr. Nehru, India’s then Prime Minister
believed that it wasn’t possible to use a modern tool with an ancient mind.
Nehru was aware that beliefs sanctioned by religion and values generally act as
obstacles and inhibitions to technological advancement. For example, even
the famous Indian mathematician, Ramanujan had difficulty in going to England
because of the religious beliefs that crossing the ocean was not religiously and
socially recommended at the time in the early part of this century.
Many management consultants suggest that organizations should develop
a ‘dominant and coherent set of shared values.’ This way, all members will have
a predictable behaviour pattern that is consistent with the organizational
philosophy and will also necessitate and encourage group cohesion.
3. Common assumptions
Assumptions are at the deepest and most fundamental level of cultural diagnosis.
These are deeply held beliefs that are not objectively observable but manifest
themselves in the behaviour of people so strongly that any violation of such
beliefs would be unthinkable. For example, one steel company in America,
Chaparrel Steel, has established values that reflect three basic assumptions.
1. The first assumption is that people are basically good. This assumption is
reflected in the company’s emphasis on trust.
2. The second assumption is that people are willing to learn, grow and
achieve if they are afforded the proper opportunities. This assumption is
reflected in the company’s extensive training programmes.
3. The third assumption rests on the belief that people are motivated by
challenges and enjoyable work and this assumption is reflected in the
process of common goal setting and goal achievement by participation of
members.
These common assumptions, though expressed at the organizational level,
can be traced to larger social and cultural values held by a particular society or
country. For example, in America, the emphasis is mostly on individualized
achievement while in Japan, the emphasis is more on collective achievement.
Similarly, when IBM opened its operations in Japan in the 1960s, the local
Japanese workers were shocked to learn that the company emphasized its
goal of highest return on investment to the stockholders. In Japan, the
stockholders are considered less important than the employees, because while

zthe stockholders are only interested in profits, the employees are interested in
the company and stay with the company for their entire lives.
12.2.2 Subcultures and Countercultures

Normally a dominant and a widely accepted culture is present in an organization.
There are however subcultures present in different sections or departments,
etc. These subcultures are actually a result of the values, attitudes, beliefs and
perceptions of the members of a particular group, team, etc. These are however
aligned with the overall culture of the organization. While examining organizations
from a cultural perspective, it is important to include these subcultures and
special project groups within the organization. For example, members of a
research and development department hold rather different beliefs and values
as compared to marketing or production departments. When Ford Motor
Company wanted to bring out a new car model that would eventually become
the highest selling car in America, the management gave its R&D department
and its designers and engineers complete freedom to innovative and free from
the constraints of the company’s normal operations. They brought out such a
car named Taurus.
These subcultures coexist with and enhance the overall organizational
culture. This is specially true in functionally structured organizations and Matrix
type organizational structures where different functional cultures coexist with
the dominant organizational culture.
In contrast, countercultures have a pattern of values and beliefs that sharply
contradict the dominant social norms, values and behaviour patterns. This
counterculture tends to emerge when individuals or groups strongly feel that
the existing organizational culture is too rigid and does not support their creativity
or style of operations. This becomes specially evident during large scale
organizational transformations such as mergers and acquisitions that involve
significant changes in the organization’s philosophy or methods of operations.
The author is familiar with the operations of one college where a newly appointed
President brought his own team of administrators and tried to run the college in
a dictatorial and authoritative manner. This change in the organizational culture
was counter to the participative style culture of the faculty. The result was a
revolt against the President and he had to resign in disgrace.
In relation to the dominant organizational culture, the counterculture groups
usually engage in three types of dissent. It could be (1) direct opposition to
organization’s dominant values, (2) opposition to the dominant culture’s power
structure, or (3) opposition to the methods of interaction with the dominant culture.

John DeLorean, who was in one of the top management positions with General
Motors, was known to act in opposition to GM’s core values that were respect
for authority, team work and so on. Even though he was able to create a
counterculture within the company, he eventually resigned and formed his own
company. Some of the other examples of societal subcultures are the Solidarity
movement in Poland in the 1980s and the antiapartheid movement in South
Africa and anti-government agitations in India.
12.2.3 Uniformity of Organizational Culture

In India, not much attention is paid to the building of a uniform organization
culture within the organization. In most cases, mission, vision and values are
mentioned in the induction training and later the employee forgets the same.
Although new employees sign a code of conduct at the time of appointment,
usually no specific training is given pertaining to adherence. In many cases, the
detailed policies and framework for monitoring the adherence of business ethics
are not made available to the new joinees. Without implementing policies in the
form of processes and control mechanisms, the code of conduct remains a
mere piece of paper.
12.2.4 Managing Organizational Culture

For any organization to grow and prosper, it is important that its mission and its
philosophy be respected and adhered to by all members of the organization.
Even if a strong and established culture exists in the organization, the dynamics
of environment may demand modifications in it or the subcultures may have to
be resorted to in order to facilitate and enhance the organizational culture. In
some cases countercultures may have to be controlled to minimize negative
impact.
Since culture is an important aspect of organizational success, it is
important that managers play a significant role in checking the values and
behaviours of the organizational members. This means that leaders pay
continuous attention to maintaining the established standards and send clear
signals to all the members as to what is expected of them. This ensures that
any deviations from the norms are detected on time so that corrective measures
can be adopted and damange can be prevented. Cultural consistency and strong
adherence to cultural values become easy when the leaders themselves play
strong role models. Employees emulate leader behaviour and look up to them
for guidance. By being strong role models and by guiding, teaching and coaching,
leaders reinforce the values that support the organizational culture.

A leader’s cultural strength is measured specially by his handling of crisis

situations. Emotions are heightened during a crisis. Proper handling of a crisis
sends a powerful message about culture. How managers handle their less
productive workers or reward the more productive ones also speaks about their
ability to maintain a certain strength in their culture. Some managers may simply
reassign a less productive worker to another job that may be more suitable to
his skills or retrain him instead of firing him. High turnover in any company is an
indication of poor cultural standards.
Good managers are able to support and reinforce an existing strong culture
by being strong role models and by handling situations that may result into
cultural deviations with great diplomacy.

(i) Work culture depends on the nature of the work and the ________set
by the organization.
(ii) The cultural of an organization is influenced by its interaction with
the ________environment.
(iii) The ________levels of culture according to Edgar Schein are:
observable artifacts of culture, shared values and _______________.
(iv) Cultural __________ communicate organizational culture by
unspoken messages.
(v) A leader’s cultural strength is measured specially by his handling of
_____.
12.3 Models of Culture
Several methods have been used to classify organizational culture. While there
is no single organizational culture type, and organizational cultures differ from
organization to organization, there are many common factors. Some of the
models suggested are as follows:
1. Hofstede on culture
Hofstede (1980) demonstrated that there are national and regional cultural
groupings that affect the behaviour of organizations.

Hofstede looked for national differences between over 100,000 of IBM’s

employees in different parts of the world, in an attempt to find aspects of culture
that might influence business behaviour.
Hofstede identified four dimensions of culture in his study of national
influences:
• Power distance reflects the degree to which a society expects differences
to exist in the levels of power. A high score implies that some individuals
are expected to have more power than the others. A low score indicates
that all people should have equal rights.
• Uncertainty avoidance reflects the extent to which uncertainty and risk
are acceptable to society.
• Individualism contrasted with collectivism reflects the extent to which
people are expected to speak for themselves, or alternatively act
predominantly as a member of the group or organization. However, high
individualism may not always translate into low collectivism, and vice versa.
Collectivism and individualism are not related. It is possible to find instances
of both high individualism and high collectivism. A person who values
duty to his or her group may not give a low priority to personal freedom
and self-sufficiency
• Masculinity contrasted with femininity reflects the importance given to
male or female values. Competitiveness, assertiveness, ambition, and
the accumulation of wealth and material possessions are regarded as
male values.
2. O’Reilly, Chatman, and Caldwell
O’Rielly, Chatman & Caldwell (1991) developed a model based on the belief
that cultures can be distinguished by values that are reinforced within
organizations. Their Organizational Profile Model (OCP) is a self reporting tool
which makes distinctions according seven categories:
(i) Innovation
(ii) Stability
(iii) Respect for people
(iv) Outcome orientation
(v) Attention to detail
(vi) Team orientation
(vii) Aggressiveness.

This model measures the relationship between individual personalities

and the organization’s culture.
According to Daniel Denison’s model (1990), organizational culture can
be described on the basis of four dimensions:
(i) Mission
(ii) Adaptability
(iii) Involvement
(iv) Consistency.
The model permits cultures to be described broadly as externally- or
internally-focused as well as flexible versus stable. The model has been typically
used to diagnose cultural problems in organizations.
3. Deal and Kennedy on organizational culture
Deal and Kennedy defined organizational culture as the way things get done
around here.
Their model is based on four different types of organizations focusing on
the speed at which the organization receives feedback, the way its members
are rewarded, and the level of risks taken.:
(i) Work-hard, play-hard culture: This has rapid feedback/reward and low
risk. The stress that results is due to volume of work and not because of
uncertainty. Speedy action leads to speedy recreation. Examples: hotels,
restaurants and software companies.
(ii) Tough-guy macho cultureThis has rapid feedback/reward and high risk,
resulting in the following: Stress coming from high risk and potential loss/
gain of reward. Focus on the present rather than the longer-term future.
Examples: police, surgeons, sports.
(iii) Process cultureThis has slow feedback/reward and low risk, resulting in
the following: Low stress, plodding work, comfort and security. Stress
that comes from internal politics and stupidity of the system. Development
of bureaucracies and other ways of maintaining the status quo. Focus on
security of the past and of the future. Examples: banks, insurance
companies.
(iv) Bet-the-company culture This has slow feedback/reward and high risk,
resulting in the following: Stress coming from high risk and delay before
knowing if actions have paid off. The long view is taken, but then much

work is put into making sure things happen as planned. Examples: aircraft
manufacturers, oil companies.
4. Edgar Schein on organizational culture
Edgar Schein, an MIT Sloan School of Management professor, defines
organizational culture as:
A pattern of shared basic assumptions that was learned by a group as
it solved its problems of external adaptation and internal integration,
that has worked well enough to be considered valid and, therefore, to
be taught to new members as the correct way you perceive, think, and
feel in relation to those problems (Schein, 2004, p. 17).
According to Schein, culture is the most difficult organizational attribute
to change, outlasting organizational products, services, founders and leadership
and all other physical attributes of the organization. He gives three cognitive
levels of organizational culture:
(i) Organizational attributes that can be seen, felt and heard by the uninitiated
observer are collectively known as artifacts. This includes facilities, offices,
furnishings, visible awards and recognition, the way that its members
dress, how each person visibly interacts with each other and with
organizational outsiders, and even company slogans, mission statements
and other operational creeds.Artifacts comprise the physical components
of the organization that relay cultural meaning.
(ii) Professed culture of an organization’s members, that is, the values. Shared
values are individuals’ preferences regarding certain aspects of the
organization’s culture (e.g. loyalty, customer service). At this level, local
and personal values are widely expressed within the organization. Basic
beliefs and assumptions include individuals’ impressions about the
trustworthiness and supportiveness of an organization, and are often
deeply ingrained within the organization’s culture.
(iii) Tacit assumptions or the elements of culture that are unseen and not
cognitively identified in everyday interactions between organizational
members. Additionally, these are the elements of culture which are often
taboo to discuss inside the organization. Many of these ‘unspoken rules’
exist without the conscious knowledge of the members. Those with
sufficient experience to understand this deepest level of organizational
culture usually become acclimatized to its attributes over time, thus
reinforcing the invisibility of their existence.

Using Schein’s model, understanding paradoxical organizational

behaviours becomes more apparent. For instance, an organization can profess
highly aesthetic and moral standards at the second level of Schein’s model
while simultaneously displaying curiously opposing behaviour at the third and
deepest level of culture. Superficially, organizational rewards can imply one
organizational norm but at the deepest level imply something completely different.
This insight offers an understanding of the difficulty that organizational
newcomers have in assimilating organizational culture and why it takes time to
become acclimatized. It also explains why organizational change agents usually
fail to achieve their goals: underlying tacit cultural norms are generally not
understood before would-be change agents begin their actions. Merely
understanding culture at the deepest level may be insufficient to institute cultural
change because the dynamics of interpersonal relationships (often under
threatening conditions) are added to the dynamics of organizational culture
while attempts are made to institute desired change.
Factors and elements
Gerry Johnson described a cultural web, identifying a number of elements that
can be used to describe or influence Organizational Culture:
• The Paradigm: What the organization is about; what it does; its mission;
its values.
• Control Systems: The processes in place to monitor what is going on.
Role cultures would have vast rulebooks. There would be more reliance
on individualism in a power culture.
• Organizational Structures: Reporting lines, hierarchies, and the way
that work flows through the business.
• Power Structures: Who makes the decisions, how widely spread is power,
and on what is power based?
• Symbols: These include organizational logos and designs, but also extend
to symbols of power such as parking spaces and executive washrooms.
• Rituals and Routines: Management meetings, board reports and so on
may become more habitual than necessary.
• Stories and Myths: build up about people and events, and convey a
message about what is valued within the organization.
These elements may overlap. Power structures may depend on control
systems, which may exploit the very rituals that generate stories which may not
be true.

According to Schein (1992), the two main reasons why cultures develop
in organizations is due to external adaptation and internal integration. External
adaptation reflects an evolutionary approach to organizational culture and
suggests that cultures develop and persist because they help an organization
to survive and flourish. If the culture is valuable, then it holds the potential for
generating sustained competitive advantages. Additionally, internal integration
is an important function since social structures are required for organizations to
exist. Organizational practices are learned through socialization at the workplace.
Work environments reinforce culture on a daily basis by encouraging employees
to exercise cultural values. Organizational culture is shaped by multiple factors,
including the following:
• External environment
• Industry
• Size and nature of the organization’s workforce
• Technologies the organization uses
• The organization’s history and ownership
Organizational values, role models, symbols and rituals shape
organizational culture. Organizational values, can be descirbed as “beliefs and
ideas about what kinds of goals members of an organization should pursue and
ideas about the appropriate kinds or standards of behaviour organizational
members should use to achieve these goals. From organizational values develop
organizational norms, guidelines, or expectations that prescribe appropriate kinds
of behaviour by employees in particular situations and control the behaviour of
organizational members towards one another.” Organizations often outline their
values in their mission statements, although this does not guarantee that
organizational culture will reflect them. The individuals that organizations
recognize as role models set, by example, the behaviour valued by the
organization. In addition, tangible factors such as work environment act as
symbols, creating a sense of corporate identity.
The founding of an organization is a critical period in the life of the
organization and the development of its culture. An organization’s founder or
chief executive has an influential impact on the development of the organization’s
culture since that person is likely to have control in hiring people with the same
values and influence the choice of strategy. By screening candidates for a cultural
fit, organizations select those employees that will be able to uphold the
organizational culture. Additionally, leaders embed culture in organizations by
what they pay attention to, measure, and control; how they react to critical

incidents and crises; the behaviors they model for others; and how they allocate
rewards and other scarce resources.
Additionally, the legacy of an organizational founder may be reflected in
the culture long after that person leaves through the processes of cultural
transmission (e.g. rites, stories) where the culture perpetuates itself. The values
of founders and key leaders shape organizational cultures, but the way these
cultures affect individuals is through shared practices.
Activity 1
Write a report on the organizational culture of Google.
2. Match the following:
(i) Deal and (a) four dimensions of culture: power

Kennedy distance,uncertainty avoidance,
individualism vs
collectivism,masculinity vs
feminity
(ii) Daniel Denison (b) Self-reporting Organizational
Profile Model which makes
distinctions on the basis of
innovation, stability, respect for
people, outcome orientation,
attention to detail, team
orientation and aggressiveness
(iii) O'Reilly, (c ) Organizational culture can be

Chatman, and described by mission,
Caldwell adaptability, involvement,
consistency
(iv) Hofstede (d) Work-hard, play- hard culture
12.4 Management Ethics and Ethical Behaviour in Organization
Ethics is probably the most difficult concept to define. It is as intangible to assess

as the idea of morality or the concept of right and wrong. It may have some

basic foundations that are universal in nature, but much of it can be defined
only with reference to the values established by a particular society. For example,
accepting bribes may be unethical in some societies and may be a way of life in
others for getting things done. Sex before marriage in India may be immoral,
while it is morally acceptable in America. It is considered proper for women in
some societies to be subservient to men, while in other societies, there is
emphasis on equality of the sexes. Artificial birth control may be a moral taboo
in Catholic Christian and Islamic societies, other societies may have more liberal
attitudes towards the issue, and it may be mandatory in China. The determination
of ethical conduct is subjective and vague, varying among different cultures
and different environmental conditions.
Exhibit 12.1
Manipulation of Readership Figures
Indian Newspaper Society to Counter Indian Readership Survey with

Sales Figures
Readership surveys in India are becoming controversial. The Indian
Newspaper Society (INS), for example, has decided to conduct surveys
challenging the Indian Readership Survey (IRS) by the Media Research Users
Council. The latter claimed newspaper readership is declining in India. INS
cites increasing sales figures to counter this.
Figures of the National Readership Survey (NRS) have also been disputed.
IRS and NRS often come up with conflicting figures, both boasting of using
authentic methodologies. The Audit Bureau of Circulations (ABC), a body of
publishers and advertisers, uses rules on trade margins-copy sale accounts
to determine numbers. It’s a dubious method in a market where publishers
often manipulate sales by giving free copies. Magazine publishers have never
been happy with ABC rules, even though ABC norms are more flexible now.
Source: http://www.indiaenvironmentportal.org.in/news/indian-newspaper-
society-counter-indian-readership-survey-sales-figures — Down to Earth –
accessed on 19.12.12.
12.4.1 Individuals and Ethics

Ethics is the code of moral principles that helps establish standards of good or
bad or right or wrong in an individual’s conduct and thereby lends guidance to
the behaviour of a person or a group. The ‘code of moral principles’ is very

subjective in nature and depends much upon the value system of the individual.
Is it possible to determine the validity of the value system or make an objective
judgement about ethical behaviour? Is there an established standard against
which it could be possible to measure the ethical standards? Is there a ‘situational
code’ of ethics for the evaluation of ethical merits of activities?Is there any
consistency in the way ethical and unethical acts are evaluated in various cultures
and nations across the world? Do these standards differ from person to person?
Who has the authority to state what is right and what is not? Is it the individual
himself, the family, the organization or the community?
Another difficulty in making judgements about ethical behaviour is
whether to judge the ‘act’ itself or to judge the consequences of the act. For
example, if a person lies to save his life, is it the lie that has to be ethically
evaluated or is it the end- result of this act, which is a life saved, which would be
considered ethical? What if the lie was meant to save somebody else’s life?
Would the act then become even more ethical? Similarly if a person sees a
$100 bill on the pavement of a street, should he pick it up when it really does not
belong to him? Would picking it up be considered unethical? What if he picks it
up and gives it to a poor person? Would the consequence of this act make the
act itself ethical? These questions cannot be easily answered.
Ethical decisions always involve fundamental moral principles of right and
wrong. The fundamental moral standards are based on the following:
1. Moral standards protect the human well-being. Activities such as murder,
cheating, drug dealing, price fixing and so on may be considered immoral
because of their negative impact on the well being of society.
2. Some moral standards have been incorporated into law. For example,
there are laws pertaining to truth in advertising, laws against monopolizing
the market, laws against adulteration of the product and so on. These
laws are based an moral standards of the society and are enacted into
laws because the laws can be easily enforced. However, legal authorities
cannot set the moral standards.
3. Moral standards should be above self interests. Thus, cheating on taxes
would be considered immoral even if it benefits the individual financially.
4. Moral standards should not be a function of the situation. What is
considered morally wrong must be wrong in all situations. The practice of
bribery, for example, in moral terms, should not differ from company to
company or from place to place but should be morally wrong in all
situations.

5. Moral considerations are tied with emotions. People are generally

remorseful if they have done something that they consider as morally
wrong. Similarly, you become emotionally respectful to those who have
high moral standards such as priests and saints and emotionally indignant
for those who have morally low standards such as child molesters or
cheaters.
A person’s ethics reflect the sum total of his experiences, education and
the value system in which he was brought up. According to Professor Hosmer,
moral standards vary from person to person because the ethical system of
belief varies from community to community, the values or priorities differ from
individual to individual, the convictions on which people base their moral standard
are different. What is important for one may not be as important for another.
These beliefs are dependant on many factors such as the culture, heritage,
background, family and education of a person.
While it is difficult to categorize ethical and nonethical conduct on the
basis of any strict guidelines, studies have shown that on the basis of acceptable
moral standards, elderly people have higher ethical standards than the younger
generation. This may be due to the changed ethical climate, where materialistic
possessions as a measure of success has shifted priorities in ethical terms.
12.4.2 Management and Business Ethics

Over the centuries, businessmen have been perceived as ruthless, profit oriented
people, whose primary purpose was to make money with little respect for the
welfare of the people whom these businesses served. This is specially true in
underdeveloped countries where big businesses wield tremendous power over
government and society. In India and Pakistan, for example, there are millions
of people working as ‘bonded labour’, where workers have absolutely no freedom.
They cannot change or leave their jobs. They are paid minimum and are exploited
fully. Because of monopolized industries in some of of the developing countries,
materials of sub-standard quality are deliberately produced without proper regard
to the interests of the community around. The hoarding: of grain, cement and
other consumer needed commodities and then inflating their prices are well-
known tactics of businesses in India.
Even in the developed countries, there have been many questionable
business practices that may not stand up to high ethical standards. The way
John D. Rockefeller eliminated his competitors in the oil industry has been
branded as ruthless and unethical. Illegal transactions in the stock market would
certainly be ethically questionable. Of late, as a result of several well-publicized

and questionable business practices, institutions have started emphasizing on

developing higher ethical standards for business behaviour.
In the organizational context, the concept of right and wrong, fair and
unfair, just and unjust is reflected by the manager’s own ethical standards as
well as by organizational policies and the social reactions to such policies. Some
such issues of ethical conduct for consideration are raised by Archie B. Carroll.
Is it ethical:
1. To put small marbles at the bottom of a bowl of soup in a television ad, so
that the soup looks thicker?
2. For a salesman to offer a bribe to the purchasing agent to induce him to
buy? Is it ethical to give the money out of his own commission instead of
bribing him?
3. For a production manager to ignore slight contract and safety violations
to avoid slowing or stopping work?
4. For some one to understate his educational qualifications in order to get
a job during hard times for which the candidate would be considered as
overqualified?
5. To write personal letters during company time or use company telephone
for private use?
6. For an employee to keep quiet knowing that the company is violating its
own rules, simply to keep his job?
7. For an accountant to add expenses in .the company income tax returns
that were not incurred, knowing that they will get away with it ?
In addition to questions about ethics in the business world, some ethically
questionable situations have been studied in the academic world. An extensive
study conducted by a Task Force on Ethics headed by Professor Mary Ann Von
Glinow of University of Southern California and supported by the Organizational
Behaviour Division of the Aademy of Management in 1981 has delved into the
subject very deeply. For example, in the area of research and publication, the
Task Force has isolated certain behaviours and activities that it believes to be
clearly unethical and another area which is ethically ambiguous.
The clearly unethical behaviours include:
1. The use of an idea or a concept by a reviewer of an article rejected by
that reviewer.
2. Doctoral advisers listing themselves as coauthors of papers where they
had little or no input beyond normal advisory responsibility.

3. Use by an author of a key concept or principle from on unpublished

manuscript of a colleague, without prior citation.
4. Simultaneous submission of an article to multiple journals.
5. Falsification or fabrication of data.
6. Attaching one’s name to a paper to which no commensurate contribution
was made.
7. Conscious misstatement of facts from previous studies.
8. When acting as an editor or reviewer, attempting to suppress publication
of research that refutes one’s pet theory.
9. Plagiarism.
Similarly, some of the ethically ambiguous behaviours include:
1. Suppression of disconfirming data or selective presentation of data.
2. Repeated publishing of marginally different data, perhaps with some
overlap.
3. Taking advantage of friendship with editors or relying on reward or coercive
power over editors.
4. Assignment of term paper topics to students, corresponding to the outline
of a book an individual is writing so as to obtain a literature review done
that way.
5. Giving students who collect and analyze data, nothing more than a foot
note acknowledgement used in the publication.
6. Using organizational records, with organizational approval and with
confidentiality protected but without obtaining the consent of the individual
employees.
7. Circulation to colleagues by a reviewer of a submitted manuscript without
the author’s approval.
Similarly such behaviours can be isolated for other professionals such as
consultants, attorneys, politicians and so on.
12.4.3 Code of Ethics

A code of ethics is a formal statement that acts as a guide which describes the
general value system, ethical principles and specific ethical rules that people
within an organization are expected to follow. Also known as company ‘Credo’,
it declares the business principles, statement of core values and other written
statements involving ethics pertaining to matters of conflict of interest, privacy

of information, donations, gifts or bribes, political contributions and so on. Most

American firms have such ethical codes. For example, Martin Marietta, a major
defence contractor in America has the following credo.
• To our ‘employees’, we are committed to just management and equality
for all, providing a safe and healthy work place and respecting the dignity
and privacy due all human beings.
• To our ‘customers’, we are committed to produce reliable products and
services at a fair price that are delivered on time and within budget.
• To the ‘communities’ in which we live we are committed to be responsible
neighbors, reflecting an aspect of good citizenship.
• To our “shareholders” we are committed to pursuing sound growth and
earning objectives and to exercising prudence in the use of our assets
and resources.
• To our “suppliers” we are committed to fair competition and the sense of
responsibility required of a good customer.
An organization’s code of ethics can serve several purposes:
(i) It creates employee awareness that ethical concerns are to be an integral
part of decision making.
(ii) It demonstrates the commitment and direction in stating its standards
and incorporating these standards into daily operations.
(iii) A credo can bring unity of purpose among all employees of the
organization.
However, the code of ethics has to go beyond mere words and must be
strictly followed and monitored. It is not always easy to translate general
statements regarding the code of conduct into specific and clear cut directive of
operation. For example, most life insurance companies forbid their salesmen
to share their commission with their clients as this practice is considered
unethical. But the competition, as it is, makes it difficult for salespeople to make
a sale without giving any financial incentive to clients. Accordingly, some
organizations are finding it exceedingly harder to enforce the application of
such ethical policies. The difficulty in specifically defining morality or ethical
behaviour makes an acceptable code of ethics highly cumbersome for the
organizations. This creates a dilemma for organizations because clear-cut
policies regarding ethical conduct are difficult to establish, especially for those
organizations that operate in a number of countries because the code of conduct
may vary from country to country.

Organizations usually establish a code of ethics that is consistent with the

viewpoints of prevailing society. However, the same code may not be valid in a
different society and may change within the same society over a period of time.
For example, in the 1900s, the society considered it unethical for a person to
purchase merchandise on credit, while these days credit purchases are an
integral part of living. This makes defining and specifying the code of ethics
very difficult. Accordingly, if the ethical guidelines are not specific, they could
lead to different interpretations, thus defeating the very purpose for which these
guidelines are designed. On the other hand, if these guidelines are highly specific,
these will not equally apply to all, because of different norms among different
cultures and sub-cultures.
12.4.4 Ethical Agenda: A Programme for Action

Individual ethics of the management and their social responsibility and
responsiveness are closely related. People with high ethics and strong moral
foundations are highly concerned with social needs and go beyond the call of
duty to help in social health and welfare. Accordingly, building high ethical
standards of management is a prerequisite to high positive social involvement.
The following call for action, as proposed by Max Ways requires a definitive
agenda for raising ethical standards. As he put it:
External pressures and internal needs require that management develop
a conscious, analytical and systematic interest in ethical questions.
Schools of Business Administration should respond seriously to the
prompting of many students and alumni who recognize that the art of
management cannot cut itself off from concern with the difference
between right and wrong. Ethical constraints and ethical motivations
will have to be brought into much clearer relation with economic
constraints and economic motivation.
In response to this call, a plan for action is called for in order to improve
the ethical climate of an organization. This plan for action can be categorized
into different levels where each level has a significant contribution towards the
formation of the entire ethical environment.
1. Individual level. The ethics at the individual level are usually a product of
personal upbringing, schooling, religious affiliation and organizational
group dynamics. Any ethical considerations that are ambiguous can be
clarified through religious leaders, teachers or friends. An individual can
also attend some management seminars or professional conferences on
ethical issues and values that are generally periodically held to gain a

better insight and perspective on ethical behaviour in various situations.

The individual must make himself fully familiar with organizational
expectations and attitudes towards certain clear-cut ethical issues.
2. Organizational level. This is the most important level at which the
management can play an important role in shaping the ethical climate of
the organization. Top management should playa strong ethical role model
so as to see that sound ethics permeate through all levels of the
organizational hierarchy. The management must set goals that are
objectively achievable, because setting too high goals might induce some
employees to use unethical methods to achieve them. This is specially
true at the salesman level. The ethical aspects of the goal setting must be
recognized and the organizational priorities must be clearly defined and
clearly communicated to all members of the organization. The ethical
aspects of goals, priorities and activities should be provided to all
employees through a written code of ethics. It is also the management’s
responsibility to ensure that these ethical guidelines are respected ‘by all
and followed through responsibly.
3. Societal level. At the societal level, the ethics can be shaped by law
because laws are passed by representatives of the society and are meant
for the protection of the health of the society and its values by fear of
enforcement. Laws such as ‘Foreign Corrupt Practices Act’ are meant to
discourage bribery as a means of doing business in other countries. Laws
against industrial espionage are meant to discredit unfair competition and
encourage honest competitive progress. The society should also take a
dim view of practices that may be unethical but not dealt with by legal
frame work. For example, using “Call girls” for conducting business would
clearly pose a question of ethics to society, even though, there may not
be any interference by law in this matter. Accordingly, society must make
it known to all people as to what is ethically acceptable and what is not.
4. International level. The ethical codes of doing business at international
level require & a closer look and analysis. Payments in the form of
commissions to governments or their representatives is a common practice
in developing countries in order to get licenses to operate businesses or
manufacturing industries or to get favourable responses from the related
public officials on a continuous basis. Such business agreements among
organizations or governments must adhere to certain universally accepted
standards of ethics in order to develop an ethically sound relationship
and morally stable environment. In that respect, the host countries must

set down rules and laws pertaining to those transactions which can create
an environment of ethical misconduct and make sure that these rules
and laws are respected and obeyed by all concerned parties.
It will be desirable to set up an international body to look over such
arrangements among different countries with due respect given to the cultural
and societal norms of the host country.
In general, management has a serious responsibility to ensure that an
organizational climate exists that is ethically defendable and to ensure that it
meets all its social obligations with honesty and sincerity and to further ensure
that the economic goals and social goals complement each other.
Activity 2
Look for at least two reports in the media about unethical practices in Indian
organizations.
3. State whether true or false.

(i) The code of moral principles is subjective in nature.
(ii) Moral standard are the same for everyone irrespective of their
background and culture.
(iii) It is unethical for doctoral advisers to list themselves as coauthors
of papers where they have contributed nothing except advice or
guidance.
(iv) A code of ethics is a formal statement that acts as a guide which
describes the general value system, ethical principles and specific
ethical rules that people within an organization are expected to follow.
(v) Laws such as ‘Foreign Corrupt Practices Act’ are meant to discourage
fraud.
12.5 Organizational Development
The organizations are complex systems comprising many subsystems that must
work together in harmony and synchronization. The fact that there are a number
of variables that affect subsystems and that the subsystems themselves interact
with each other makes the system even more complicated. Adding to the

complication is the dynamic nature of the environment in which the organization

exists and the rapidly changing values of the variables affecting the system.
Accordingly, management must be prepared to achieve a degree of
organizational synthesis as well as change the organizational environment to
accommodate the change in the conditions. This organizational change must
be preplanned and not be a haphazard one. Harold Rush defined organizational
development as a planned, managed and systematic process of changing the
culture, systems and behaviour of an organization in order to make it more
efficient in solving problems and attaining its objectives.
The word Organization Development (OD) was coined by Richard
Beckhard in the mid 1950s, as a response to the need for integrating
organizational needs with individual needs. He described this dilemma as follows:
If we are talking about the basic dilemma of managing work, the
management problem has two horns. One horn is, how do you take all
that human energy and channel it towards the organization’s mission?
The other horn is, how do you organize the work, the communication
patterns, the decision making, the norms and values, the ground rules
so that people’s individual needs for self-worth, achievement, satisfaction
and so on are significantly met at the work place?
A great deal of attention has been given to the second horn of the dilemma.
But that alone does not solve the problem any more than the other way around.
So the dilemma is, how do you manage the dilemma and not how you manage
one horn of it. OD tries to work out and organize the interaction between the
two.
The basic concept underlining organizational development then, is to
improve organizational efficiency by modifying human behaviour rather than
technological innovations, because without the committed involvement of human
element, all technology has a limited meaning. The OD theorists emphasize
that the organic structure of an organization, rather than the mechanistic and
bureaucratic structure is more desirable in today’s dynamic environment. It is
accepted however, that the mechanistic structure with its highly disciplined chain
of command is more suitable under stable environment. But the argument
advanced by behaviouralists is that there is no stable environment. The external
environment is too turbulent to be stable. Accordingly, the organic structure with
its limited number of hierarchical levels, wide span of control, decentralized
decision making, open communication, interdependence among groups, high
level of openness and trust and reliance on teams is the best organization for
today’s situation.

The organizational development can then be summarized as an

(a) organization wide (b) planned attempt (c) managed from the top, in order to
(d) increase organizational effectiveness and health, through (e) planned
intervention in the organization’s processes through knowledge of behavioural
science.
This definition was originally developed by Beckhard, who was an early
proponent of behavioural science application to increase the health and
effectiveness of the organization. Again according to Beckhard’s view, ‘the
healthy organization manages according to established goals, the organization
is properly designed, decisions are made at the appropriate level,
communications are relatively undistorted, win/lose activities are minimised,
there is emphasis on helping each other grow and develop, the interpersonal
difficulties are minimised and the organization is open and adaptive’.
In the above definition, effectiveness refers to establishing and attaining
realistic organizational goals. Health refers to the motivation, integration and
utilization of combined human resources within the organization. The organization
development as perceived, seems to be an answer to all organizational problems.
Since the human element is the most important element in the success of any
organization, the reorganization of any organization along organic lines based
upon openness and trust should ensure success. But does it ensure success?
Even the behavioural theorists are beginning to doubt the rational applicability
of this concept. This would explain why most organizations are still operating in
a classical and mechanistic way without any urgency to shift towards organic
structure. One of the major reasons for the lack of popularity of organic structures
is that in such structures, the emphasis is primarily on human element that is
most unstable and unpredictable and basically self serving. Even Warren Bennis,
who was a strong supporter of organization development on the basis of human
interaction, became skeptical after experiencing the realities and frustrations of
serving as an administrator in two academic institutions. Based on his experience,
he expressed his view that human nature is basically selfish, that people place
self-interest above public interest, cannot tolerate ambiguity and frustration and
are more concerned with power and profit than with warmth and love. These
traits counteract all that is deesired for organization development. Still the trend
towards organic structure indicates the optimistic belief that these self-oriented
traits and attitudes can be changed through sustained efforts and motivation.
12.5.1 Objectives of OD Programmes

Some of these objectives are based on Wendell French and are described as
follows:

1. To build and enhance interpersonal trust, communication, cooperation

and support among all individuals and groups throughout the organization
at all levels.
2. To encourage an analytical approach to problem solving in a team spirit
and open manner, where the problems and differences are confronted
and resolved instead of problem-avoiding or decision-postponing approach
or “sweeping problems under the rug”, as they say it.
3. To increase a sense of belonging to the organization so that the
organizational goals become the goals of the members of the organization.
4. To assign decision making and problem solving responsibilities to skilled
and knowledgeable persons who are closer to the scene of operations
and the sources of information, rather than to a person with a particular
role or at a particular hierarchical level.
5. To increase personal responsibility for planning, implementing the plans
and awareness and responsibility for the consequences. This will build
enthusiasm individually and groupwise and will involve communication,
feelings, open competition as well as compromise, conflict resolution and
so on. This will increase a sense of self-direction for all people within the
organization.
6. To help managers to manage according to the relevant objectives, rather
than depending upon ‘past practices’. The management should be goal
oriented rather than process oriented. All efforts should be directed and
channelled towards related objectives in the area of responsibility.
These objectives help the organization in examining its current methods
of operations, its norms and values and in generating and evaluating alternative
ways of operating and utilizing the full potential of human resources.
12.5.2 Basic OD Assumptions

The organization development has a number of underlying assumptions that
can be examined so as to determine how the OD programmes can be utilized
to the fullest potential. These assumptions are based upon French and Bell:
1. Most individuals have drives towards personal growth and development.
However, the work habits are more a response to work environment rather
than personality traits. Accordingly, efforts to change work habits should
be directed towards changing as to how the person is treated rather than
towards attempting to change the person.

2. Highest productivity can be achieved when the individual goals are

integrated with organizational goals. This way, the workers will be highly
devoted to quality output because they will take personal pride in the
optimum quality.
3. Cooperation is always more effective than conflict. Conflict tends to erode
trust, prohibit collaboration and eventually limit the effectiveness of the
organization. In healthy organizations, ‘efforts are made at all levels to
treat conflict as a problem, subject to problem solving methods’.
4. The suppression of feelings adversely affects problem solving, personal
growth and satisfaction with one’s work. Accordingly, free expression of
feelings is an important ingredient for commitment to work.
5. The growth of individual members is facilitated by relationships that are
open, supportive and trusting. Accordingly, the level of inter-personal trust,
support and cooperation should be as high as possible.
6. The difference between commitment and agreement must be fully
understood. Agreeing to do something is totally different than being
committed to do something. A sense of commitment makes it easy to
accept change and the implementation of change is even easier when
this commitment is based upon participation in the process.
7. OD programmes, if they are to succeed, must be reinforced by the
organization’s total human-resources system.

(i) The word organization development (OD) was coined by
___________ as a response to the need for integrating organizational
needs with __________ needs.
(ii) One objective of OD is to encourage an _______________ approach
to problem solving in a team spirit.
(iii) Cooperation is more effective than ______________.
(iv) Free expression of ____________is important for commitment to
work.
(v) Human nature is basically ____________ which is why people place
self-interest above public interest.

12.6 Understanding Organizational Change
Change simply means the alteration of status quo. Even in stable organizations,
change is necessary just to keep the level of given stability. The economic and
social environment is so dynamic that without the change that would be adaptive
to the new environment, even the most successful organizations will be left
behind, unable to survive in the new environment. Accordingly, management
must continuously monitor the outside environment and be sufficiently innovative
and creative to find new and better utilization of organizational resources so
that customer needs are competitively met and consumer problems are
adequately solved.
Different surveys and studies have been conducted in the organizations
across the world and it has been found that most of the successful organizations
are responding to the environmental changes by ensuring structural changes
within their organizations. They are also making the changes in the policies and
strategies of the organization if the need exists as per the market changes and
environmental requirements. The survey found that 44 per cent of Japanese
firms, 59 per cent of American firms, 60 per cent of German firms and 71 per
cent of South Korean firms so surveyed had significantly changed their
organizational structure during the period between 1989 and 1991.
Whether the change involves creativity and innovation within the
organization or simply a response to outside forces that may require
organizational realignment, management must be aware of the forces and the
need for change. Typically, organizations have little choice but to change.
According to Barney and Griffin, ‘the primary reason cited for organizational
problems is the failure by managers to properly anticipate or respond to forces
for change.’ These forces of change may be external or internal.
12.6.1 External Forces

The organization is impacted by the external environment both directly as well
as indirectly. The organizations may not be able to exercise any control on the
different external factors. Therefore, it becomes imperative for the organizations
to change themselves and get aligned with the environmental changes.
External forces for change arise from the general environment as well as
from the task environment. The general environment that affects the
organizations indirectly consists of economic, political, legal, socio-cultural and
technological forces and these forces keep the organizations alert so that they

become aware of any changes in the direction and momentum of these forces.
For example, when due to oil crisis, people started buying small fuel efficient
cars from Japan, the American automobile manufacturers who were accustomed
to producing large luxury cars, spent billions of dollars in the mid 1970s in
retooling the new machinery to build smaller cars. Similarly, changes in laws
regarding control of air pollution or dumping of chemical wastes and economical
changes such as inflation rate, disposable money supply, unemployment rate –
all constitute sources of change for the organizations. Social changes such as
changes in the taste of clothing, or introduction of laptop or notebook computers
made many companies large and successful while at the same time destroying
many other companies who were slow or unwilling to adapt to the change.
Task-related environment has direct influence on the health of the
organizations and it consists of customers, competitors, suppliers, labour,
stockholders and so on. All these factors can induce a change in the
organizational direction. Competitors can influence a change in an organization
by the price structure and product lines. Price wars in airline fares have driven
many airlines out of business. Stockholders can influence organizations because
they can take action against the board of directors if they feel that the board is
not acting in their best interests. Customers have been known to change their
loyalty for better quality product and better service. Accordingly, organizations
cannot rest on status quo and must remain dynamic and be able to change
quickly to adjust to changed environment.
12.6.2 Internal Forces

Internal forces for change could be reactive constituting a response to outside
forces or these could be proactive bringing in change induced by management
in anticipation of different and beneficial internal environment that could result
because of this internal change. For instance, a company may introduce flexitime
for its employees or provide day care facilities for the children of working mothers
to motivate the employees to be more productive. For example, in 1987, the
top management of Manufacturer Hanover Trust, a large bank, made some
basic policy changes in anticipation of the banking practices of the future. The
power structure was decentralized and the compensation system for managers
was altered so that it was more closely tied to performance.
Shifts in socio-cultural values in the workforce may require changes in
the corporate culture and structure. Workers are becoming more educated,
less conservative and more women are joining the workforce. Corporations
that were previously strictly dominated by men with a strict code of dress, and

code of conduct must make the necessary changes to accommodate these

demographic shifts. For example, provisions for day care centres for the children
of young working mothers was unheard of only a generation ago.
The changes in the internal environment can come from shareholders,
board of directors or employees and can affect the philosophy, strategy, decisions
and other organizational activities.
The changes induced by the internal forces as a preparation to effectively
meet the anticipated and potential organizational environmental changes is
known as ‘planned change’. This change is deliberately designed and adopted
to meet the expected future threats and opportunities, so that there are fewer
surprises and the organizations can remain competitive in the environmental
dynamics.
The change that is undertaken in response to specific problems that arise
is known as ‘reactive change’. Some problems may be so serious that it may
not give the management enough time to analyze the situation correctly and
respond in an effective manner. For example, when we build a house in New
Delhi, we must plan in advance as to what our choices would be if cement
suddenly becomes unavailable. If we do not plan to face this change, we will be
behind schedule. Similarly, we must be prepared in advance to face power
shortages or labour problems that can be anticipated, otherwise the house will
not be completed in time.
12.6.3 The Change Process

Once, the need for change and the goals of such a change are recognized and
accepted, the management must introduce the change process in such a manner
that it is more or less permanent and the management does not shift back to
the original and more familiar ways of doing things. In order to ensure that the
change is enduring in nature, three phases of change process have been
proposed by Kurt Lewin in order to ensure the transitioning of the organization
from the present phase to the future. These phases are:
• Unfreezing
• Changing
• Refreezing
Unfreezing the situation
The unfreezing phase is the first phase of change and is targeted at informing
the individuals about the process of change and ensuring that they get adequately

prepared for change. This is because it is important that the employees of an

organization should not be surprised with the induction of change. This is because
the change which is unannounced and for which the people are not prepared
may move to be destructive in nature. Therefore, it is important for the
management to show the way for ‘unfreezing the situation’ so that an element
of willingness is enthused in the members of the organization to proceed with
change and so that they become prepared to accept the change. Thus any
resistance which may so arise can be taken care by the management of an
organization. Unfreezing has been defined as the process by means of which
the organization aims at breaking down the old behaviours, attitudes, etc of the
employees of the organization so that the process of change can be started a
fresh with them. The preparation for change can be ensured by conducting
meetings, town halls, by making announcements, by putting notices on the
notice board, through group conferences, etc.
The unfreezing process basically cleans the slate so that it can accept
new writings on it that can then become the operational style.
Changing or moving to the new condition
Once the process of unfreezing has been completed which means the employees
of the organization now start realizing the need for the change. They are now
fully prepared to accept the change. Thus, as a next step, it is now important to
alter the behaviours of the individuals and redefine them. According to H.C.
Kellman, three methods can be used for redefining the behavioural patterns.
These are:
• Compliance: The management can enforce the reward and punishment
strategy and can thus ensure strict compliance. For good behaviour, a
reward can be announced and for a bad behaviour, a punishment can be
announced. Fear for a punishment or attracting for winning a reward can
actually motivate a person and can induce the desired behaviour. For
example, many people have stopped smoking because of the warning
given by the Surgeon General of United States that smoking causes cancer
of the lungs.
• Identification: Identification generally occurs when the members are
impressed upon psychologically and they are motivated to relate
themselves with some personalities with whom they would like to identify
and then they can be motivated to consider these people as role models
for themselves and change their behavioural patterns accordingly. Many
public organizations use celebrities as role models in advising young
people not to try drugs.

• Internalization: When the internal thought processes of an individual

are changed in order to match with the new or changing environment,
then this process is termed as internalization. Members are given the
freedom to themselves identify as to what best possible changes they
would like to make in themselves in order to ensure that they succeed in
the new environment. Sometimes, soul searching brings about a new
dimension to the philosophy of existence and thus brings about changes
in such behavioural patterns that are not considered socially or
professionally redeeming.
Refreezing
Refreezing may be defined as the phase when the changed behavioural patterns
become the normal way of living that is when the new behaviour completely
replaces the older set of beliefs, behaviour, etc. Also, it should be permanent in
nature. It is also important to continuously reinforce the changes that have been
ensured in the behaviour so that the new behaviour is consistent and stays with
time.
It is also important to understand that change is a continuous process
and an organization has to continuously change in order to adjust with the ever
changing environment so as to fast adapt with the environmental changes. Thus
these phases of change are cyclical in nature. They may remain continuously in
the process one after the other.
The implementation of these three steps change model can be seen in
the case of kidnapping victims or prisoners of war or in deprogramming of some
religious cultists. The prisoners of war, for example, may be brainwashed into
believing that they are fighting a losing and immoral war and that their enemy is
really their friend, by certain shock treatments that involve three steps of
unfreezing, changing and refreezing process as explained before. If these
prisoners return back to their own country, the process can be repeated to bring
them back to their original behaviour.
Another methodology to induce, implement and manage change was also
introduced by Kurt Lewin, who called it ‘force-field analysis’. This analysis is
based upon the assumption that we are in a state of equilibrium when there is a
balance between forces that induce change and forces that resist change. To
achieve change, we must overcome this status quo. The change forces are
known as driving forces and the forces that resist change are known as
restraining forces. Managers who are trying to implement change must analyze
this balance of driving and restraining forces and then strengthen the driving

forces or weaken the restraining forces sufficiently so that change can take
place.
12.6.4 Types of Change

There are various areas within the organizational domain where changes can
be brought about for operational enhancement of the organization as well as
desirable behaviour of members. The various types of changes that can have
considerable impact on the organizational culture are:
Strategic change: This is a change in the very mission of the organization. A
single mission may have to be changed to multiple missions. For example,
when British Airways acquired a major part of US Air, the culture of the entire
organization had to be modified to accommodate various aspects of American
organizational culture into the British organizational culture.
Structural change: Decentralized operations and participative management
style have been seen as more recent trends in the organizational structure.
Since these structural changes shift the authority and responsibility to generally
lower level management, it has a major impact on an organization’s social climate
and members have to be prepared to develop a team spirit as well as acquire
skills to make on-the-spot decisions at points of operations.
Process-oriented change: The various changes that may take place at an
organization may include changes related to technology, HR practices,
information processing, automation of processes, implementation of newer
machinery in manufacturing processes, etc. This indicates that changes in the
organizational structure, HR practices, systems and processes is bound to impact
the culture of an organization and hence will go to also influence the behavioural
patterns of different employees.
C Strategic
H
A Structural
N →
Process-
G oriented
E
People-oriented
Figure 12.1 Types of Change

People oriented change: Even though, any organizational change affects

people in some form, it is important that the behaviour and attitudes of the
members be predictable and in accordance with the expectations of the
organization and be consistent with the mission and policies of the enterprise.
These changes are directed towards performance improvement, group cohesion,
dedication and loyalty to the organization as well as developing a sense of self-
actualisation among the members. These can be developed by closer interaction
with employees and by special behavioural training and modification sessions.
12.6.5 Steps in Managed Change

The first step in the change process is to identify the need for change and the
area of change as to whether it is strategic change, process-oriented change or
employee-oriented change. This need for change can be identified either through
internal factors or through external forces that may be in place. Once this need
is identified, the following general steps can be taken to implement such change.
• Develop new goals and objectives
• Select an agent for change
• Diagnose the problem
• Select methodology
• Develop a plan
• Strategy for implementation of the plan
• Implementation of the plan
• Receive and evaluate feedback
12.6.6 Change Agents

The change agents are those factors that are responsible for bringing about the
change in the individual behaviour patterns. This is the most important type of
change since other types of changes such as in strategy, structure or process
can always be introduced simply by the management and most often these
changes are accepted by the workers and also because behaviour is a highly
complex phenomenon and it may require a number of strategies to make
desirable changes in such human behaviour. These change agents may either
be the initiators of change or serve as catalysts for such change. Four types of
change agents have been identified.
Outside pressures: These are pressures from the external environment that
are directed towards change in the entire organization. These may be in the

form of government intervention if there are serious quality or safety defects.

The government may also get involved if there are labour strikes for a long
period of time or mass demonstrations against the organization.
Internal organizational development: This can come slowly and through and
within the organization itself. This may include redefinement of goals as well as
participative goal setting such as MBO (Management by Objectives), work
redesign, team development and so on.
Individual change: This change is the modification of behaviour within the
individual where his personal goals may be better served in the changed
environment of the organization. For example, in a government job, if a person
who is habitually late incoming to work without any obvious repercussions or
reprimands, might change his behaviour if the organization starts taking notice
of such tardiness in a negative way.
Changes from central management: The organizational change may come
from the top management who may be convinced about its necessity and may
direct the structural, strategic or technological changes that would be beneficial
to the organization and its members.
12.6.7 Resistance to Change

Change, no matter how beneficial, is generally resented and is always difficult
to implement. Since ‘man follows the path of least resistance’, it is easier to
employ known methods than to change to new methods where the outcomes
may not be as certain. It is similar to difficulties experienced when moving to a
new location or changing jobs or changing a school or a college. However, a
change will be easier to make and adjust to, if the potential rewards after the
change are sufficiently attractive. For example, a person may change his job if
the new job offers better financial benefits and equally good working conditions.
No matter what the resistance, the change must occur continually in order
to adjust to dynamic forces that are continuously at play. The society will become
stagnant if no changes take place. Accordingly, the reasons for resistance to
change must be studied carefully and dealt with. It must be noted however that
what the employees resist is not the technical changes that they are generally
willing to adapt to, but the social changes that are the changes in the human
relationships that most often accompany technical changes.58 As a result, the
emphasis must be on reducing the strain that might develop due to changes in
these relationships.

On the other hand, it cannot be denied that changes bring challenges,

new experiences, new adventures and new rewards and hence a change may
be easier to accept when it is accompanied by favourable benefits.
Factors that increase resistance to change
There are a number of reasons why people resist changes. Some of these
reasons are:
• Insecurity
• Lack of communication
• Rapidity and extent of change
• The group resistance
• Emotional turmoil
• Loss of power and control
Managing resistance to change
If the changes are to be implemented successfully, they need full acceptance
from employees. Some of the specific strategies employed in reducing the
resistance to change are :
• Participation and involvement
• Communication and education
• Leadership
• Negotiation and agreement
• Willingness for the sake of the group
• Timing of change

(i) The main reason for organizational problems is the failure by
managers to properly anticipate or respond to forces of ________.
(ii) __________ forces for change arise from the general environment
as well as from the task environment.
(iii) The change undertaken in response to specific problems that arise
is known as _________ change.

(iv) The three phases of change process are: unfreezing, __________

and refreezing.
(v) Behavioural patterns can be redefined through compliance,
identification and _______________.
12.7 Summary

• Culture is the continuous process of developing values and attitudes over
generations. The values held by the founders of the organization are
adopted as the organizational culture.
• Work culture depends on the nature of the work and the goals set by the
organization.
• Organizational culture has three levels according to Edgar Schein:
Observable artifacts of culture; shared values and common assumptions.
• Values can be instrumental or terminal.
• Organizations should develop a dominant and coherent set of shared
values so that all members have a predictable behaviour pattern that is
consistent with the mission, philosophy and goals of the organization.
• Subcultures coexist with the dominant and widely accepted culture of the
organization. They help enhance the overall organizational culture.
• Counterculture groups engage in three types of dissent: direct opposition
to organization’s dominant values; opposition to the dominant culture’s
power structure and opposition to the methods of interaction with the
dominant culture.
• For any organization to grow and prosper, it is important that its mission
and its philosophy be respected and adhered to by all members of the
organization.
• How managers handle their less productive workers or reward their more
productive employees also speaks about their ability to maintain a certain
strength in their culture.
• Hofstede demonstrated that there are national and regional cultural
groupings that affect the behavior of organizations.
• O’Rielly, Chatman & Caldwell developed a model based on the belief that
cultures can be distinguished by values that are reinforced within
organizations.

• Deal and Kennedy defined organizational culture as the way things get
done around here.
• According to Edgar Schein, culture is the most difficult organizational
attribute to change, outlasting organizational products, services, founders
and leadership and all other physical attributes of the organization.
• Ethics is the code of moral principles that helps establish standards of
good or bad or right or wrong in an individual’s conduct and thereby lends
guidance to the behaviour of a person or a group.
• A code of ethics is a formal statement that acts as a guide which describes
the general value system, ethical principles and specific ethical rules that
people within an organization are expected to follow.
• Management must be prepared to achieve a degree of organizational
synthesis as well as change the organizational environment.
• Organizational development can be summarized as an (a) organization
wide (b) planned attempt (c) managed from the top, in order to (d) increase
organizational effectiveness and health, through (e) planned intervention
in the organization’s processes through knowledge of behavioural science.
• Organizational development programmes must be reinforced by the total
human-resource system of the organization.
• Strategic change, structural change, process-oriented change and people-
oriented change are the various types of change that can be brought
about in an organization.
• The four types of change agents are: outside pressures; internal
organizational development; individual change; changes from central
management
• Change, irrespective of its advantages, is generally not welcomed and is
always difficult to implement
12.8 Glossary
• Organizational culture: Set of shared mental assumptions that guide

interpretation and action in organizations by defining appropriate behavior
for various situations
• Organizational heroes: Charismatic leaders who possessed certain
personal qualities to distinguish them from others

• Values: Principles and qualities that shape a person’s thinking and

behaviour
• Organizational values: Beliefs and ideas about organizational goals that
employees must possess
• Ethics: Code of moral principles that helps establish standards of good
or bad and right or wrong in an individual’s conduct and thereby lends
guidance to the behaviour of a person or a group
• Code of ethics: Formal statement that acts as a guide which describes
the general value system, ethical principles and specific ethical rules that
people within an organization are expected to follow
• Organizational development: Conceptual organization-wide effort to
increase an organization’s effectiveness and viability
• Unfreezing: First step of the change process in an organization that is
targeted at informing individuals about the change process and ensuring
that employees are prepared for change
• Refreezing: Stage of the change process in an organization in which
changed behavioural patterns become the normal way of living
• Strategic change: Change in the mission of an organization
• Change agents: Factors that are responsible for bringing about change
in individual behavioural patterns
1. Define ‘organizational culture’.

2. List the characteristics of the three levels of organizational culture.
3. How is organizational culture managed?
4. How did Edgar Schein define organizational culture? What was his opinion
on organizational culture?
5. Why is it difficult to make judgements about ethical behaviour?
6. Write a note on the significance of organizational development. What are
the objectives of OD?
7. Write a note on the phases of the change process.

12.10 Answers
1. (i) Goals
(ii) External
(iii) Three; common values
(iv) Symbols
(v) Crisis situations
2. (i) (d) (ii) (c) (iii) (b)(iv)(a)
3. (i) True
(ii) False
(iii) True
(iv) True
(v) False
4. (i) Richard Beckhard; individual
(ii) Analytical
(iii) Conflict
(iv) Feelings
(v) Selfish
5. (i) Change
(ii) External
(iii) Reactive
(iv) Changing
(v) Internalization



6. Refer to Section 12.5 and 12.5.1

5. Sharma, R.A. Organizational Theory and Behaviour. 2nd edition. New
Delhi: Tata McGraw-Hill.

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Edition: Fall 2009

Sikkim Manipal University

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Organizational Behaviour and Media Organization

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Unit 7 – Concepts of Organizational Behaviour: Discusses the importance

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1.2 What is an Organization?

According to Sheldon, ‘Organization is the process of so combining the work,

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their families from intruders. Secondly, interdependency is necessary for survival

1.2.1 Benefits of a Good Organization

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requirements should have similar benefits. If these requirements are clearly

1.2.2 Organizational Structure

Airtel Announces a New Organisational structure for India and South

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A good organizational structure is needed so that:

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or organic in nature or a combination thereof. However, most organizational

Foreman A Foreman B Foreman C

Workers Workers Workers

Figure 1.1 A Line Structure

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Figure 1.2 Line and Staff Structure

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Dean, School Dean, School Dean, School

Department of Department of Department of

Figure 1.3 Structural Organization of a College

The functional design enhances operational efficiency as well as

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Vice-President Vice-President Vice-President

Vice-President Vice-President Vice-President

Figure 1.4 Departmentation by Product

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This type of organizational structure facilitates the measurement of

Priority Customers Regular Customers

Figure 1.5 Devision Based on Priority

(iii) Departmentation by area: If an organization serves different geographical

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Vice-President Vice-President Vice-President

Figure 1.6 Departmentation by Area

In these cases, the local population is served by the divisional personnel

Supervisor Supervisor Supervisor

Figure 1.7 Departmentation by Time

The organizational structure on the basis of divisions of various types, as

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A simple form of matrix design is illustrated as follows:

Figure 1.8 A Simple Matrix Design

Stephen P. Robbins has emphasized that most Schools of Businesses

Figure 1.9 A Typical Matrix Structure for a School of Business

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It can be seen in the above illustration, that the Directors of various

1. Fill in the blanks with appropriate words:

1.3 Working of an Organization

An organizational system involves arrangement of activities and assignment of